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The conflict-growth nexus and the poverty of nations

  • Syed Mansoob Murshed
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    Lack of growth limits poverty reduction while poverty increases conflict risk. Institutional failure and other factors seem to cause both growth failure and civil war. The greed explanation for conflict is common in cross-country econometric investigation, despite its dubious role in directly causing civil war. The relationship between natural resource revenues and conflict onset works through other mechanisms, such as a weakening social contract and withering state capacity. The grievance explanation for contemporary civil war is supported by detailed case studies where horizontal inequality is important. Economic reconstruction following war should therefore be pro-poor and address horizontal inequalities engendering conflict.

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    File URL: http://www.un.org/esa/desa/papers/2007/wp43_2007.pdf
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    Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 43.

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    Length: 18 pages
    Date of creation: Jun 2007
    Date of revision:
    Handle: RePEc:une:wpaper:43
    Contact details of provider: Web page: http://www.un.org/en/development/desa/working-papers.html
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    1. Paul Collier & V. L. Elliott & HÃ¥vard Hegre & Anke Hoeffler & Marta Reynal-Querol & Nicholas Sambanis, 2003. "Breaking the Conflict Trap : Civil War and Development Policy," World Bank Publications, The World Bank, number 13938, June.
    2. Frances Stewart, . "Crisis Prevention: Tackling Horizontal Inequalities," QEH Working Papers qehwps33, Queen Elizabeth House, University of Oxford.
    3. Paul Collier & Anke Hoeffler, 2004. "Greed and Grievance in Civil War," Development and Comp Systems 0409007, EconWPA.
    4. Murshed, S. Mansoob, 2004. "When Does Natural Resource Abundance Lead to a Resource Curse?," Discussion Papers 24137, International Institute for Environment and Development, Environmental Economics Programme.
    5. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
    6. Rodrik, Dani, 1998. "Where Did all the Growth Go? External Shocks, Social Conflict and Growth Collapses," CEPR Discussion Papers 1789, C.E.P.R. Discussion Papers.
    7. Skaperdas, Stergios, 2001. "Warlord Competition," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    8. Tony Addison & Alemayehu Geda & Philippe Le Billon & S Mansoob Murshed, 2005. "Reconstructing and Reforming the Financial System in Conflict and 'Post-Conflict' Economies," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 703-718.
    9. William Easterly & Ross Levine, 2002. "Tropics, Germs, and Crops: How Endowments Influence Economic Development," Working Papers 15, Center for Global Development.
    10. Tony Addison & Philippe Le Billon & S. Mansoob Murshed, 2002. "Conflict in Africa: The Cost of Peaceful Behaviour," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 11(3), pages 365-386, September.
    11. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-21, September.
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