Economics of War and Peace: Economic, Legal, and Political Perspectives

vLex
Publisher:
Emerald Group Publishing Limited
Publication date:
2010-07-08
Authors:

ISBN:
978-0-85724-004-0

Latest documents

  • Chapter 3 Privatising military prisons: The case of the United States

    Purpose – This chapter aims to contribute to the policy debate on private sector involvement in traditionally core defence activities through rigorous economic analysis. Punishment and correction in the US military prisons have traditionally been considered as a core activity that has been governed, regulated and managed by the military service personnel. It has been shown however, that military facilities such as stockades and brigs have often failed to meet their correctional objectives – a quality issue.Methodology – The chapter constructs a case study to illustrate the method of analysis. Well-trained and motivated military custodial personnel play an important correctional role but are not available in sufficient numbers in military prisons. It is therefore proposed to source these services through the private sector. Specifically, the chapter proposes that private sector providers should provide custodial personnel for stockades and brigs. Traditionally the private sector has been employed to reduce costs, rather than improve quality. This chapter adapts and applies the framework developed by Hart, Shleifer and Vishny (1997) to study the governance model and incentive regime that could enable the use of the private sector, reduce the risk of excessive cost cutting and enable quality outcomes to be achieved.Findings – This chapter argues that private sector involvement could effectively increase the contestability of supply.Implications – The chapter demonstrates the scope for private sector involvement to increase quality, rather than just decrease costs. It follows that the private sector can contribute to core national security outcomes. However, this implication needs significantly more exploration for specific contexts.Value – The adopted mode of analysis provides a template for rigorous analysis of similar proposals in the future.

  • Author Index
  • List of contributors
  • Subject Index
  • Chapter 8 Does fiscal policy differ between successful and unsuccessful post-conflict transitions? Lessons from African Civil Wars

    Purpose – The chapter studies the impact of fiscal policy on the stabilisation of peace in the aftermath of a civil war.Methodology – We use data from African war-torn countries and study the issue of post-conflict stabilisation from an empirical perspective. We employ probit analysis to formally estimate the effect of fiscal policy on the probability of maintaining peace in the post-conflict period.Findings – The success of post-conflict transition does not require downsizing the government. On the contrary, successful post-conflict transitions are on average characterised by an increase in the size of the government. However, both expenditures and revenues increase at a comparable pace. Moreover, in successful post-conflict transitions, the increase in government size involves an increase in the incidence of capital expenditure relative to government consumption. On the revenue side, budgetary grants appear to strengthen the chances of success. A heavier debt burden does not seem to compromise the probability of successfully completing the post-conflict transition.Research limitations/implications – Future research should (i) extend the sample to non-African countries, (ii) extend the analysis to other macroeconomic policy variables and (iii) supplement cross-country analysis on the role of fiscal policy with country case studies. A potential application of the findings of this chapter is the construction of a model to predict the evolution of currently ongoing post-conflict transitions.Social implications – The findings bear implications on how governments should conduct fiscal policy in the aftermath of a conflict. They also provide guidelines for the international community on how best to assist post-conflict economies.Originality – Papers concerned with the determinants of peace in the post-conflict period do not generally look at the potential contribution of fiscal policy. This chapter is the first attempt, to the best of our knowledge, to provide econometric evidence on the role of fiscal policy as a possible driver of peace stabilisation in the aftermath of a conflict.

  • Conflict Management, Peace Economics and Development
  • Acknowledgments
  • Chapter 1 Introduction

    In their chapter, ‘A method to compute a peace gross world product by country and by economic sector’, Jurgen Brauer and John Tepper Marlin present a novel method to assess the economic value of peace, in both the domestic and international realms. This is not only a tool for assessing and forecasting the potential benefits of reduced violence, but it is an example of best social science practice in that by design it incorporates the best existing knowledge on the effects of peace. This approach combining meta-analysis with a novel integrating framework is quite promising. For the purposes of the book, it sets the stage nicely for the subsequent chapters by highlighting the big picture of expected welfare gains from peace, within a rigorous scientific context, rather than one of advocacy. Estimating the potential economic benefits of internal and international peace is also fundamental in understanding the potential economic incentives which might drive political and business leaders to avoid deadly conflict, and pursue peace.

  • Chapter 15 Economic factors in peace and war: A discussion

    Purpose – The main purpose is to provide ideas about an intellectual framework for considering the role of “economic factors” in conflict and to suggest some potentially useful future areas of research. I selectively reference some relevant findings from the other chapters in this volume.Methodology/approach – This chapter is speculative, but raises important issues. It might seem that economic factors should be considered “hard” constraints on the dynamics of large-scale conflict and peace, whereas political factors are “soft.” I propose the opposite. I argue that we should consider political factors as causally primary and economic factors as contingent on them. I present statistical analyses that call into question some recent research on the apparent primacy of economic factors in international conflict.Findings – These models challenge a strong belief in the primacy of a “capitalist peace” or “economic peace” over political factors such as democracy. But my purpose here is no more than to suggest that this is a promising area for further inquiry. Economic factors are of course hugely important, but they are filtered through norms and institutions, which are political creations. If the basic logic of my thinking holds, similar results would be obtained for studies of civil conflict initiation and escalation.Originality/value of paper – This chapter raises the issue of the appropriate place of economic and political factors in understanding organized conflict at various levels of analysis. It suggests how the chapters in this volume help advance thinking about the relationship between economic factors and conflict in this context and provides some novel empirical results to suggest the plausibility of the argument that economic factors may be less theoretically fundamental than political ones.

  • Copyright page

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