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Redistribution, Inequality and Political Conflict

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  • Patricia Justino

    (Poverty Research Unit at Sussex)

Abstract

This paper analyses the relationship between redistributive policies and civil unrest. This relationship is modelled in a discrete two-period recursive model. Key theoretical assumptions and outcomes are tested empirically using data for a panel of 14 major Indian states between 1973 and 2000. The analysis shows that, in the medium-term, redistributive policies have been significantly more effective in reducing civil unrest in India than more direct solutions, such as the use of police and military forces, and have resulted in important positive externalities on economic growth. This represents an important lesson for countries where social cohesion tends to break frequently but large-scale wars may be avoidable.

Suggested Citation

  • Patricia Justino, 2004. "Redistribution, Inequality and Political Conflict," HiCN Working Papers 05, Households in Conflict Network.
    • Handle: RePEc:hic:wpaper:05
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    Cited by:

    1. Umit Hacioglu & Hasan Dincer & Ismail Erkan Celik, 2012. "Economic Approach to Conflict Issue: Investment in Post- Conflict Situation for International Business," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 3(5), pages 1-8, September.
    2. Umit Hacioglu & Hasan Dincer, 2013. "Evaluation of conflict hazard and financial risk in the E7 economies’ capital markets," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 31(1), pages 79-102.
    3. Rohner, D., 2007. "From Rags to Rifles: The Economics of Deprivation, Conflict and Welfare State," Cambridge Working Papers in Economics 0771, Faculty of Economics, University of Cambridge.
    4. Dominic Rohner, 2010. "From rags to rifles: deprivation, conflict and the welfare state," IEW - Working Papers 463, Institute for Empirical Research in Economics - University of Zurich.
    5. Laaser, Claus-Friedrich & Rosenschon, Astrid, 2022. "Die Bundesausgaben in Zeiten von Corona im Fokus des Kieler Bundesausgabenmonitors: Eine Strukturanalyse," Kieler Beiträge zur Wirtschaftspolitik 41, Kiel Institute for the World Economy (IfW Kiel).
    6. Rohner, Dominic, 2011. "Reputation, group structure and social tensions," Journal of Development Economics, Elsevier, vol. 96(2), pages 188-199, November.
    7. Krishna Chaitanya Vadlamannati, 2009. "Does Timing og Elections Instigate Riots? A Subnational Study of 16 Indian States, 1958-2004," Working Papers id:1835, eSocialSciences.
    8. Helen Barnes, 2005. "Conflict, Inequality and Dialogue for Conflict Resolution in Latin America: The Cases of Argentina, Bolivia and Venezuela," Human Development Occasional Papers (1992-2007) HDOCPA-2005-03, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    9. Ravichandran Moorthy & Sivapalan Selvadurai & Sarjit S. Gill & Angelina Gurunathan, 2021. "Sustainable Societal Peace through the Integration of Bioethics Principles and Value-Based Education," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    10. Vadlamannati, Krishna Chaitanya, 2008. "Socioeconomic, Institutional & Political Determinants Of Human Rights Abuses: A Subnational Study Of India, 1993 – 2002," MPRA Paper 10142, University Library of Munich, Germany.
    11. Dawood Mamoon, 2006. "Which Institutions Are More Relevant Than Others in Inequality Mitigation?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 893-912.
    12. Patricia Justino, 2009. "The Impact of Armed Civil Conflict on Household Welfare and Policy Responses," Research Working Papers 12, MICROCON - A Micro Level Analysis of Violent Conflict.
    13. Patricia Justino, 2006. "On the Links between Violent Conflict and Chronic Poverty: How Much Do We Really Know?," HiCN Working Papers 18, Households in Conflict Network.
    14. Justino, Patricia, 2006. "The impact of collective action on economic development: empirical evidence from Kerala, India," World Development, Elsevier, vol. 34(7), pages 1254-1270, July.

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    More about this item

    Keywords

    redistribution; conflict; inequality; economic growth; India; panel data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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