Debt Relief and Civil War

Tony Addison and Mansoob Murshed

No DP2001-57, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Of the 41 HIPCs, 11 are classified by the IMF and World Bank as conflict-affected. Can debt relief reduce the level of violent conflict in these countries? By providing additional resources to finance broad-based public spending, debt relief could help to redress the grievances that contribute to conflict. It could also reduce the ability of those motivated by greed to recruit followers, since the incomes, and therefore the grievances of followers, will fall if they benefit from broad-based public spending. But four things can go wrong with the use of debt relief in this way.

Keywords: Public debt; Fiscal policy; Game theory; Social conflict (search for similar items in EconPapers)
Date: 2001
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Journal Article: Debt Relief and Civil War (2003)
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