181. Poverty and Conflict: The Inequality Link
- Author:
- Ravi Kanbur
- Publication Date:
- 06-2007
- Content Type:
- Working Paper
- Institution:
- International Peace Institute
- Abstract:
- The focus of this paper is on conflicts within states. These range from the full scale armed conflict of a civil war (between two “states within states”), through relatively isolated and contained low intensity insurrection against the state, to regular bouts of communal violence in a “well functioning” state. I wish to ask how poverty and inequality causally interact with these phenomena. The causality from conflict to poverty is not much in doubt and stands to reason—conflict destroys or impairs incentives for productive economic investment and innovation at all levels. However, the precise nature of causality in the other direction, from poverty and inequality to conflict, is more ambiguous and subject to greater debate. It is this causal chain that is the focus of this working paper; but in order to do this we in turn need a more nuanced characterization and discussion of inequality and poverty concepts and trends. Certain types of inequality, in particular, will be seen to be particularly fertile ground for conflict; other types may be more benign. And if the attempts to reduce poverty through economic growth lead to initial increases in the “wrong” type of inequality, the conflicts this engenders may dissipate beneficial effects of poverty reduction on conflict. However, each scenario will have essentially specific features related to structural and historical factors that differ from country to country. The general principles will thus have to be applied carefully in designing country specific policies and interventions. The second section of the paper introduces some basic concepts of poverty and inequality and reviews their strengths and limitations in helping us understand the origins of conflict. Section three turns to the theory and evidence of the causal links between poverty, inequality, and conflict. Based on this analysis, section four discusses policies to reduce the likelihood of conflict, while the fifth section offers a conclusion.
- Topic:
- Conflict Resolution, Political Violence, and Civil War