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State Formation and Collapse

Economic stagnation can both icnerase poverty and

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Unformatted text preview: remaining consistently poor are becoming more fragile) This can be an external factor for other state failures when violence spills over into neighboring “peaceful” countries. Determinants: POVERTY: Poverty ! state failure (this is what most aid agencies think) Poverty leads to grievances against the governments Poverty lowers the opportunity cost of engaging in violence against the state unemployment, etc. poverty increases financial incentives from rebellion state failure ! poverty: revenue losses from fighting rebellions can lead to withdrawal of other public goods. Inability to deliver services can impoverish people on average (spurious correlation between poverty and state fragility) Or something else ! state failure AND poverty? Economic stagnation can BOTH icnerase poverty AND weaken state institutions Out- migration of higher income citizens from countries, leaving home countries poorer and more fragile (MIDDLE EAST) What does the evidence say? Extremely strong and robust relationship between poverty levels and state failure, properly measured (fearon...
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