Taking advantage of insurgencies: effective policies of state-sponsorship

Taking insurgency sponsorship as an instrument states have available for achieving foreign policy objectives, I consider how state-sponsors could best manipulate their support to maximize control of the proxy group. Building on research that models the state-sponsor–insurgent relationship using a principal–agent framework, I identify two key vulnerabilities to which the state-sponsor is exposed: adverse selection and agency slack. As an original contribution to the literature on state-sponsorship of insurgency, I articulate reasons why certain forms of support would be most conducive to overcoming these problems and illustrate how South Africa and Iran used those kinds of support to influence the behavior of their proxies, RENAMO and Hezbollah. Additionally, I consider how this principal–agent analysis of insurgency sponsorship also could apply when the principal is an international terrorist organization such as al Qaeda. Finally, I address the relevance of these ideas to two contemporary conflicts taking place in Syria and the Congo.