 The Paradox of Power Reconsidered: A Theory of Political Regimes in AfricaJournal of African Economies, 2006, vol. 15, issue 1, 26-58 Abstract: A typical pattern of wealth redistribution seems to prevail, in some African countries, between rich and poor ethno-regional groups. A contract-theoretic model is presented for shedding some light on this phenomenon. The government promises a transfer to its potential opponent in return for not engaging in a civil war. The latter may break out because of the imperfect credibility of the government's commitment. This increases the cost of the required transfer of wealth, and may make it unfeasible. The model determines whether a military regime or a redistributive state prevails in a peaceful equilibrium. This depends on two parameters: (i) the relative fighting efficiency and (ii) the relative productivity of the two groups. The social cost of the different regimes is then compared, and their implications for aid policy are discussed. Copyright 2006, Oxford University Press. Date: 2006 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:jafrec:v:15:y:2006:i:1:p:26-58 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of African Economies is currently edited by Francis Teal More articles in Journal of African Economies from Centre for the Study of African Economies Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
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