The Institutional Foundations of Religious Politics: Evidence from Indonesia

Samuel Bazzi, Gabriel Koehler-Derrick and Benjamin Marx

No 25151, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper explores the foundations of religious influence in politics and society. We show that an important Islamic institution fostered the entrenchment of Islamism at a critical juncture in Indonesia, the world’s largest Muslim country. In the early 1960s, rural elites transferred large amounts of land into waqf —inalienable charitable trusts in Islamic law—to avoid expropriation by the state. Regions facing a greater threat of expropriation exhibit more prevalent waqf land and Islamic institutions endowed as such, including mosques and religious schools. These endowments provided conservative forces with the capital needed to promote Islamist ideology and mobilize against the secular state. We identify lasting effects on the size of the religious sector, electoral support for Islamist parties, and the adoption of local sharia laws. These effects are shaped by greater demand for religion in government but not by greater piety among the electorate. Waqf assets also impose costs on the local economy, particularly in agriculture where these endowments are associated with lower productivity. Overall, our findings shed new light on the origins and consequences of Islamism.

JEL-codes: D72 D74 P16 P26 Z12 (search for similar items in EconPapers)
Date: 2018-10
New Economics Papers: this item is included in nep-cdm, nep-gro, nep-his, nep-pol, nep-sea and nep-soc
Note: DEV POL
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as Samuel Bazzi & Gabriel Koehler-Derrick & Benjamin Marx, 2020. "The Institutional Foundations of Religious Politics: Evidence from Indonesia*," The Quarterly Journal of Economics, vol 135(2), pages 845-911.

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Related works:
Journal Article: The Institutional Foundations of Religious Politics: Evidence from Indonesia* (2020)
Working Paper: The Institutional Foundations of Religious Politics: Evidence from Indonesia (2020)
Working Paper: The Institutional Foundations of Religious Politics: Evidence from Indonesia (2020)
Working Paper: The Institutional Foundations of Religious Politics: Evidence from Indonesia (2020)
Working Paper: THE INSTITUTIONAL FOUNDATIONS OF RELIGIOUS POLITICS: EVIDENCE FROM INDONESIA (2019)
Working Paper: The Institutional Foundations of Religious Politics: Evidence from Indonesia (2018)
Working Paper: The Institutional Foundations of Religious Politics: Evidence from Indonesia (2018)
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