1 / 34

Centre for the Study of African Economies

Development and Security Anke Hoeffler Centre for the Study of African Economies Department of Economics, University of Oxford. Centre for the Study of African Economies. Fragile States Definition? Security/public goods 1bn people About 7% live in LICUS 15% of the world’s poor

denali
Download Presentation

Centre for the Study of African Economies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Development and Security AnkeHoeffler Centre for the Study of African Economies Department of Economics, University of Oxford Centre for the Study of African Economies

  2. Fragile States • Definition? • Security/public goods • 1bn people • About 7% live in LICUS • 15% of the world’s poor • Projection: 30% of the world’s poor in 2015 Centre for the Study of African Economies

  3. Fragile States • Cost? • Poverty ($32bn) • War ($3bn) • Region ($237bn) • About $270bn • Aid currently about $80bn • UN target $130bn • Chauvet, Collier and Hoeffler 2011 Centre for the Study of African Economies

  4. Bottom Billion – Development Traps • Conflict Trap • Natural Resource Trap • Landlocked with Bad Neighbours • Bad Governance in a Small Country Centre for the Study of African Economies

  5. Conflicts: Global Prevalence Centre for the Study of African Economies

  6. Conflicts: Global Prevalence Centre for the Study of African Economies

  7. Conflict and War: Global Prevalence Centre for the Study of African Economies

  8. Total Battle Deaths (in Millions)1960-2002 Centre for the Study of African Economies

  9. Battle and War Deaths in Selected African Countries Centre for the Study of African Economies

  10. Refugees, IDPs and Others of Concern (in Millions) Centre for the Study of African Economies

  11. Centre for the Study of African Economies

  12. Collier-Hoeffler Model of Civil War Aim: model and estimate what factors make a country more prone to large scale violent internal conflict Method: regression analysis Collier and Hoeffler, 2004 Centre for the Study of African Economies

  13. Explanations of Civil War Onset • Economics • Political Science • Sociology • History • Geography • Demography • risk = f(history, economy, sociology ...) Centre for the Study of African Economies

  14. Conclusions • Little evidence for grievances as a sufficient determinant of conflict • Economic factors are important (level, growth and structure of income, sources of finance) • Past conflict makes a country more conflict prone • The longer the peace lasts the less likely is a new outbreak Centre for the Study of African Economies

  15. Natural Resources and the Risk of Civil War C&H: Countries with natural resources are more conflict prone risk natural resources Centre for the Study of African Economies

  16. Interpretation: • Civil war? – recruit and maintain private army • Finance? - natural resources • Examples: drugs, diamonds, timber Centre for the Study of African Economies

  17. Measurement of Natural Resources • Natural resource exports as a % of GDP • Point/diffuse natural resources • Dummy variable (e.g. oil exporter) • Natural resource rents (price-cost) • Stock of natural resources Centre for the Study of African Economies

  18. Where is the Wealth of Nations? Data source: World Bank (2006) and own calculations Centre for the Study of African Economies

  19. Possible Interpretations: • Finance • Lujala et al • Honey Pot • Humphreys 2005, Neumeyer&deSoysa • Weak state capacity • Fearon&Laitin 2003, Sachs&Warner 2007 Centre for the Study of African Economies

  20. Summary of the Evidence: • Evidence that natural resource rich countries are conflict prone • Measurement issues • Results are difficult to interpret, endogeneity and simultaneity problems • Transmission channels from natural resources to civil war risk are diverse Centre for the Study of African Economies

  21. Does natural resource scarcity cause violence? • Ecoviolence Burk et al 2009 • No current evidence for ‘ecowars’ Gleditsch, 1989; de Soysa, 2002, Buhaug 2010 • Little evidence that climate change will cause more wars Hendrix&Glaser, 2007 Centre for the Study of African Economies

  22. Concluding Comments • Correlation/causation? • Evidence that countries rich in natural resources are at higher risk of war • Finance, honey pot, weak state capacity • Kimberley Process • Extractive Industries Transparency Initiative • Resource Charter Centre for the Study of African Economies

  23. International Initiatives EITI http://eitransparency.org/ Kimberley Process http://www.kimberleyprocess.com/ The Natural Resource Charter http://www.naturalresourcecharter.org/ Centre for the Study of African Economies

  24. Centre for the Study of African Economies

  25. Duration of War • Duration is not determined by the same variables as the initiation • An increase in natural resource prices tends to increase the duration of war Centre for the Study of African Economies

  26. Centre for the Study of African Economies

  27. Economic Recovery Is there a peace dividend? Does aid increase growth post-conflict? Does policy improve growth post-conflict? Centre for the Study of African Economies

  28. Empirical Analysis of Post-Conflict Societies Peace dividend, about 1.1% extra growth 3-7 years during post conflict aid increases growth Traditionally this is not what donors have done Peace dividend only if there is no further violence Centre for the Study of African Economies

  29. Post Conflict Risks 68 post-conflict episodes 46% of cases recurrence of war 40% of cases recurrence within a decade Centre for the Study of African Economies

  30. Statistical Results • There is no safe period during the decade • Growth is important, stagnant economies 42% risk,10% income growth 26.9% risk • Elections shift the risk, lower in election year, higher after, subsequent elections don’t have a different effect to first elections • PK force absolute not relative size matters (deterrence) • Doubling expenditure reduces risk from 40% to 31% Centre for the Study of African Economies

  31. BibliographyFragile States Chauvet L., P. Collier and A. Hoeffler, 2011. The Cost of State Failure and the Limits to Sovereignty, in:  Fragile States: Causes, Costs, and Responses. Naudé, W.A., Santos-Paulino, A. and McGillivray, M. (eds).Oxford: Oxford University Press.Collier, Paul. 2007. The Bottom Billion. Why the Poorest Countries are Failing and What Can Be Done About It. Oxford University Press. Civil War Collier, Paul and Anke Hoeffler. 2004. Greed and grievance in civil wars, Oxford Economic Papers 56:663–595. Collier, Paul, Anke Hoeffler and Dominic Rohner. 2009. Beyond Greed and Grievance: Feasibility and Civil War. Oxford Economic Papers 61: 1-27. Collier, Paul, Hoeffler, Anke and MånsSöderbom. 2004. On the Duration of Civil War. Journal of Peace Research 41(3): 253-273. Collier, Paul, Lance Elliot, HåvardHegre, Anke Hoeffler, Marta Reynal-Querol and Nicholas Sambanis. 2003. Breaking the Conflict Trap: Civil War and Development Policy, World Bank Policy Research Report. Oxford: Oxford University Press. Fearon, James and David Laitin. 2003. Ethnicity, insurgency, and civil war, American Political Science Review 97:75–90. Hegre, Hårvard, TanjaEllingsen, Scott Gates and Nils PetterGleditsch. 2001. Towards a democratic civil peace? American Political Science Review 95:33–48. Hoeffler, Anke. 2011. On the Causes of Civil War, 2011, Chapter 1 in the Oxford Handbook of the Economics of Peace and Conflict (Michelle Garfinkel and StergiosSkaperdas, eds). forthcoming. Miguel, E., S. Satyanath and E. Sergenti (2004), Economic shocks and civil conflict: An instrumental variables approach, Journal of Political Economy 112:725–753. Regan, Patrick. 2009. Sixteen Million One. Paradigm Press. Centre for the Study of African Economies

  32. Bibliography Natural Resources and Development Auty, Richard. 2001. Resource abundance and economic development. Oxford: Oxford University Press. Collier, Paul. 2008. The Bottom Billion: Why the poorest countries are failing and what can be done about it. Oxford: Oxford University Press. Isham, Jonathan, Woolcock, Michael, Pritchett, Lant and Gwen Busby. 2005. The Varieties of Resource Experience: Natural Resource Export Structures and the Political Economy of Economic Growth. World Bank Economic Review 19(2): 141-174. Sachs, Jeffrey and Andrew M. Warner. 2000. ‘Natural Resource Abundance and Economic Growth’. In Leading Issues in Economic Development, 7th ed. G.M. Meier and J.E. Rauch, Oxford: Oxford University Press. Civil War and Natural Resources le Billon, Philippe. 2001. The political ecology of war: natural resources and armed conflicts. Political Geography 20: 561–584. Buhaug, Halvard. 2010. Climate not to blame for African civil wars. Proceedings of the National Academy of Sciences. Early Edition. Burke MB, Miguel E, Satyanath S, Dykema JA, Lobell DB. 2009. Warming increases the risk of civil war in Africa. Proceedings of the National Academy of Sciences 106:2067–2070. Collier, Paul and Anke Hoeffler. 2005. Resource Rents, Governance, and Conflict, Journal of Conflict Resolution 49: 625 - 633. Dube, Oeindrila and Juan F. Vargas. 2006. Are All Resources Cursed? Coffee, Oil, and Armed Conflict in Colombia. Weatherhead Center of International Affairs, Harvard University, Working Paper 07-01. Fearon, James. 2005. Primary commodities exports and civil war. Journal of Conflict Resolution 49 (4): 483-507. Gleditsch, Nils Petter. 1998. Armed conflict and the environment: a critique of the literature. Journal of Peace Research 35(5): 381-400. Centre for the Study of African Economies

  33. Bibliography continued Civil War and Natural Resources Hendrix, Cullen and Sarah M. Glaser. 2007. Trends and triggers: Climate, climate change and civil conflict in Sub-Saharan Africa. Political Geography 26: 695-715. Homer-Dixon, Thomas. 1999. Environment, scarcity, and violence. Princeton: Princeton University Press. Humphreys, Macartan. 2005. Natural resources, conflict, and conflict resolution: Uncovering the mechanisms. Journal of Conflict Resolution 49 (4): 508-37. Lujala, Paivi, Nils PetterGleditsch and Elizabeth Gilmore. 2005. A diamond curse? Civil war and a lootable resource. Journal of Conflict Resolution 49:538–562. Ojefusi, Aderoju. 2008. Oil and the Probability of Rebel Participation among Youths in the Niger Delta of Nigeria. Journal of Peace Research 45(4):539-555. Ross, Michael L. 2004. What Do We Know about Natural Resources and Civil War? Journal of Peace Research 41: 337-56. de Soysa, Indra. 2002. Ecoviolence: shrinking pie, or honey pot? Global Environmental Politics 2(4): 1-34. de Soysa, Indra and Eric Neumayer. 2007. Natural Resource Wealth and the Risk of Civil War Onset: Results from a new dataset of natural resource rents 1970-1999.Conflict Management and Peace Science 24: 201-218. Weinstein, Jeremy M. 2005. Resources and the Information Problem in Rebel Recruitment. Journal of Conflict Resolution 49: 598-624. Centre for the Study of African Economies

  34. Bibliography continued Post-War Collier, Paul, Anke Hoeffler and MånsSöderbom . 2008. Post-Conflict Risks, Journal of Peace Research 45(4): 461-478. Collier, Paul and Anke Hoeffler. 2006. Military Expenditure in Post-Conflict Societies, Economics of Governance 7(1): 89-107. Collier, Paul and Anke Hoeffler. 2004. Aid, Policy and Growth in Post-Conflict Countries .The European Economic Review 48: 1125-1145. Hoeffler, Anke, SyedaShahBanoIjaz and Sarah von Billerbeck. 2010. Post-conflict Recovery and Peace Building, Background Paper for the World Development Report 2011. mimeo. Centre for the Study of African Economies

More Related