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Week 14 - Lecture A - ECON 4411A Fall 2010 Development...

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ECON 4411A, Fall 2010 Development Economics Summary Notes: Week 14, Lesson A Conflict and Corruption a Quick Overview Quote of the day: Whoso neglects learning in his youth, loses the past and is dead for the future. Euripides (484 BC - 406 BC) Conflict and Development The last decade of the 20th Century witnessed some of the most horrific conflict situations in Africa with hundreds of thousands of civilian casualties. Most notable among these were Rwanda, Somalia, Angola, Sudan, Burundi, Sierra Leone, Liberia and the democratic republic of Congo. The interethnic clashes in Rwanda led to 800,000 Tutsi and Hutu being massacred in roughly 13 weeks, 100 days or less (the death toll as of the spring of 2003 had reached 3.3 million). There were also civil wars in Sierra Leone, Rwanda, Ivory coast, Liberia. Liberia experienced a bitter eight-year civil war, in which more than 200,000 people were killed and more than a million displaced. There were also wars between developing nations: Eritrea and Ethiopia, Ethiopia and Somali, Ecuador and Peru, etc. Post 2000, civil wars have continued in di ff erent developing countries. A few examples of current or recently ended civil wars in developing countries are Libya 2011, Ivory Coast 2002-2007 and 2011 and War in Darfur, 2003-2009 The Aftermath of these conflicts are the orphans, the refugees [over 9.5 million refugees in Africa] and the destruction of the economic base. Given the gravity of the impact of conflict on the economy, it is important for economist to study conflict and the link to economic growth and development. The Economics of Conflict is a new field of economics that has expanded rapidly over the last 10 years. The subject of economics can contribute to the analysis of conflict because economic factors might cause, or at least contribute to, conflict. In addition, conflict can influence economic development. The statements above imply the existence of an unclear relationship between conflict and development with causality running in both directions. For exam- ple, the US in September, 2004 diverted $3.5 billion of money originally intended for Iraq reconstruction into security and job creation. A few possible reasons for this include: first, that without proper security reconstruction attempts are pointless; second, unemployed people are more likely than employed people to join insurgencies; third, that belief in a rosy economic future, engendered by visible economic progress, can undermine insurgency. Usually analysis on conflict can be theoretical in which economist view key players in a conflict as rational actors. Analysis on conflict can also be empirical. In this case economists make use of number, statistics and econometric tools in an attempt to draw a relationship between economic indicators and conflict. In Bethany Lacina and Gleditsch, N. P., “Monitoring Trends in Global Combat: 1
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A New Dataset of Battle-deaths,” information on all wars in the world between 1946 and 2002 is summarized.
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