Walk the Line: Conflict, State Capacity and the Political Dynamics of Reform

Sanjay Jain, Sumon Majumdar and Sharun Mukand
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Sanjay Jain: Cambridge University
Sumon Majumdar: Queen’s University

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: This paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with the reform’s initial success having a negative impact on its political sustainability. Second, we demonstrate that greater state capacity, to make compensatory transfers to those adversely a.ected by reform, need not always help the political sustainability of reform, but can also hinder it. Finally, we argue that in ethnically divided societies, economic reform may be completed not despite ethnic conflict, but because of it.

Keywords: Economic Reform; State Capacity; Politics; Redistribution; Compensation; Ethnic Conflict (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-pol
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http://www2.warwick.ac.uk/fac/soc/economics/resear ... /156-2013_mukand.pdf

Related works:
Journal Article: Walk the line: Conflict, state capacity and the political dynamics of reform (2014)
Working Paper: Walk the Line: Conflict, State Capacity and the Political Dynamics of Reform (2014)
Working Paper: Walk the Line: Conflict, State Capacity and the Political Dynamics of Reform (2012)
Working Paper: Walk The Line: Conflict, State Capacity And The Political Dynamics Of Reform (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:156

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