Warlords complete for turf that provides them with rents and "taxable" resources while also providing a semblance of security within their respective territories. Because such competition takes place through the use of force or the threat of the use of force, more competition can lead to lower welfare as resources are wasted on unproductive arming and fighting. Rents crowd out production, in some cases almost cmpletely so.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2001|
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