Conflict, Ideology and Foreign Aid

Julien Labonne, Adama Bah () and Jean-Louis Arcand

No 201021, Working Papers from CERDI

Abstract: In this paper, we present a rent-seeking model of conflict, which highlights the role of ideology in determining whether the government or the rebels take the initiative. We use the model to interpret the impact of a large-scale Community-Driven Development project on civil conflict in the Philippines. The country is characterized by the presence of two rebel groups, the New People's Army (NPA) and the Moro Islamic Liberation Front (MILF), with two distinct ideologies. We use a unique geo-referenced panel dataset on the occurrence of conflicts in 2003 and 2006 gathered from local newspapers that we match with nationally representative household survey and budget data on all municipalities in the country. Consistent with our model's predictions, using a variety of estimation strategies, we find robust evidence that the project leads to a decline in MILF-related events and to an increase in NPA-related events.

Keywords: Civil Conflict; Foreign aid; Rent Seeking; Community-Driven Development; Philippines (search for similar items in EconPapers)
JEL-codes: D72 D74 F35 O22 O53 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-dev and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Conflict, Ideology and Foreign Aid (2011)
Working Paper: Conflict, Ideology and Foreign Aid (2011)
Working Paper: Conflict, Ideology and Foreign Aid (2010)
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