Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/67868 
Year of Publication: 
2011
Series/Report no.: 
Queen's Economics Department Working Paper No. 1288
Publisher: 
Queen's University, Department of Economics, Kingston (Ontario)
Abstract: 
This paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with the reform's initial success having a negative impact on its political sustainability. Second, we demonstrate that greater state capacity to make compensatory transfers to those adversely affected by reform, need not always help the political sustainability of reform, but can also hinder it. Finally, we argue that in ethnically divided societies, economic reform may be completed not despite ethnic conflict, but because of it.
Subjects: 
Economic Reform
State Capacity
Politics
Redistribution
Compensation
Ethnic Conflict
JEL: 
D72
O20
P16
Document Type: 
Working Paper

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