Ethnic Conflict and Economic Growth

Paper Summary:

It is only recently that academics have begun to consider ethnic conflict as different from other kinds of political conflicts in terms of introducing the concept of ethnicity as a unique analytical lens through which to understand and deal with conflict. This paper investigates how growth in countries recovering from ethnic conflict is different, as opposed to other kinds of conflict, and in particular, how the policy-dependent absorptive capacity for aid is different for such countries.

Paper Outline
Introduction
Ethnicity and Conflict
Ethnicity and Development
Ethnicity and Foreign Aid
Empirical Tests
Discussion

From the Paper:

"Esman and Herring (2003) identify three reasons for interaction between foreign aid allocation and ethnicity. First, aid has distributive consequences therefore the benefits of aid could be distributed unevenly across different ethnic communities. Second, aid is allocated within an intensely political context, and despite the involvement of large and influential NGOs, the role of the local government as an intermediary cannot be eliminated; as such aid allocation could be influenced by the ethnic bias of the government. Third, the conditionalities that come with aid are not necessarily sensitive to issues of ethnicity, and as such, could result in sub-optimal policies which exacerbate existing ethnic divides. (Esman and Herring, 2003)."

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