The Fiscal Dimensions of Conflict and Reconstruction

WIDER Discussion Paper, 2001/49

Posted: 20 Nov 2014

See all articles by Tony Addison

Tony Addison

United Nations University

Syed Mansoob Murshed

Institute of Social Studies (ISS)

Multiple version iconThere are 2 versions of this paper

Date Written: 2001

Abstract

Political violence, coup d’état, civil wars and inter-state wars, all have fiscal dimensions (and sometimes fiscal causes). Who gets what — public employment and public spending — and who has to pay for it, are questions that raise fundamental issues about the distribution of society's resources. These can only be resolved peacefully by some form of social contract, resting on the foundation of effective fiscal institutions (systems of public spending and taxation). Accordingly, the paper contrasts the evolution of fiscal institutions in stable and unstable societies. The paper discusses the likelihood of a fiscal peace dividend, but notes that ‘incomplete’ peace — and therefore the continuation of high levels of military spending — limits the scale of the dividend in many cases.

Keywords: conflict, fiscal policy, Sub-Saharan Africa

JEL Classification: H56, O15, D30

Suggested Citation

Addison, Tony and Murshed, Syed Mansoob, The Fiscal Dimensions of Conflict and Reconstruction (2001). WIDER Discussion Paper, 2001/49, Available at SSRN: https://ssrn.com/abstract=2528109

Tony Addison (Contact Author)

United Nations University ( email )

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Syed Mansoob Murshed

Institute of Social Studies (ISS) ( email )

PO Box 29776
2502 LT The Hague, 2518 AX
Netherlands
+31 70 426 0591 (Phone)
+31 70 426 0799 (Fax)

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