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Conflict and Livelihood Decisions in the Chittagong Hill Tracts of Bangladesh

In: Poverty Reduction Policies and Practices in Developing Asia

Author

Listed:
  • Muhammad Badiuzzaman

    (Erasmus University Rotterdam)

  • Syed Mansoob Murshed

    (Erasmus University Rotterdam
    Coventry University)

Abstract

We analyse rural household livelihood and child school enrolment decisions in the post-conflict setting of the Chittagong Hill Tracts (CHT) region of Bangladesh. What makes this paper innovative is the use of current subjective perceptions regarding the possibility of violence in the future and past actual experiences of violence in explaining household economic decision-making. Preferences are endogenous in line with behavioural economics. Regression results show that heightened subjective perceptions of future violence and past actual experiences of conflict influence current consumption and child enrolment and could encourage risky mixed crop cultivation. The trauma emanating from past experiences combined with current high perceptions of risk of violenceRisk of violence may induce bolder and riskier behaviour in line with prospect theories of risk. Furthermore, a post-conflict household-level Phoenix or economic revival factor may be in operation, based partially on greater within-group trust.

Suggested Citation

  • Muhammad Badiuzzaman & Syed Mansoob Murshed, 2015. "Conflict and Livelihood Decisions in the Chittagong Hill Tracts of Bangladesh," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Almas Heshmati & Esfandiar Maasoumi & Guanghua Wan (ed.), Poverty Reduction Policies and Practices in Developing Asia, edition 127, chapter 0, pages 145-162, Springer.
    • Handle: RePEc:spr:esichp:978-981-287-420-7_8
    DOI: 10.1007/978-981-287-420-7_8
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