IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/44045.html
   My bibliography  Save this paper

How to assist separatists in breaking up a country... or, rather, not: The role of decentralization and development assistance

Author

Listed:
  • Ehrke, Jürgen

Abstract

The international community is usually set against secessionist movements that threaten to break up existing states. At the same time, many fragmented countries receive development aid, which influences the political process there. The model presented here seeks to answer two questions: “Is decentralization a suitable tool to appease separatist movements and prevent a secession?”, and “Can development policies can be designed in a way that they don’t unwillingly trigger secession as a side effect?”. Using a framework frequently applied in the literature on secession, it turns out (a) that under certain conditions a secession threat can be used by a minority region to gain a higher level of decentralization than the larger part of the country would prefer, and (b) that a secession threat might undermine aid policies that focus directly on poverty reduction or on the improvement of governance, especially where they are not accompanied by (additional) decentralization. – It can be shown that the results are robust to a relaxation of initial simplifications.

Suggested Citation

  • Ehrke, Jürgen, 2012. "How to assist separatists in breaking up a country... or, rather, not: The role of decentralization and development assistance," MPRA Paper 44045, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:44045
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/44045/1/MPRA_paper_44045.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Enrico Spolaore & Alberto Alesina & Romain Wacziarg, 2000. "Economic Integration and Political Disintegration," American Economic Review, American Economic Association, vol. 90(5), pages 1276-1296, December.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Goyal, Sanjeev & Staal, Klaas, 2004. "The political economy of regionalism," European Economic Review, Elsevier, vol. 48(3), pages 563-593, June.
    4. Roy Bahl & Jorge Martinez-Vazquez, 2013. "Sequencing Fiscal Decentralization," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 641-687, November.
    5. Ben D. MacArthur & Richard O. C. Oreffo, 2005. "Bridging the gap," Nature, Nature, vol. 433(7021), pages 19-19, January.
    6. Haimanko, Ori & Le Breton, Michel & Weber, Shlomo, 2005. "Transfers in a polarized country: bridging the gap between efficiency and stability," Journal of Public Economics, Elsevier, vol. 89(7), pages 1277-1303, July.
    7. Michel Le Breton & Shlomo Weber, 2003. "The Art of Making Everybody Happy: How to Prevent a Secession," IMF Staff Papers, Palgrave Macmillan, vol. 50(3), pages 1-4.
    8. Hristos Doucouliagos & Martin Paldam, 2009. "The Aid Effectiveness Literature: The Sad Results Of 40 Years Of Research," Journal of Economic Surveys, Wiley Blackwell, vol. 23(3), pages 433-461, July.
    9. Patrick Bolton & Gérard Roland, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1057-1090.
    10. Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
    11. Klaus Desmet & Michel Breton & Ignacio Ortuño-Ortín & Shlomo Weber, 2011. "The stability and breakup of nations: a quantitative analysis," Journal of Economic Growth, Springer, vol. 16(3), pages 183-213, September.
    12. Evan Osborne, 2010. "Economic freedom, ethnic separatism, and ethnic conflict," Journal of Developing Areas, Tennessee State University, College of Business, vol. 44(1), pages 367-381, September.
    13. Burnside, Craig & Dollar, David, 2004. "Aid, policies, and growth : revisiting the evidence," Policy Research Working Paper Series 3251, The World Bank.
    14. Tsuneyoshi, Takao & Hashimoto, Akihiro & Haneda, Shoko, 2012. "Quantitative evaluation of nation stability," Journal of Policy Modeling, Elsevier, vol. 34(1), pages 132-154.
    15. Alesina, Alberto & Wacziarg, Romain, 1998. "Openness, country size and government," Journal of Public Economics, Elsevier, vol. 69(3), pages 305-321, September.
    16. Anesi, Vincent, 2012. "Secessionism and minority protection in an uncertain world," Journal of Public Economics, Elsevier, vol. 96(1), pages 53-61.
    17. E. Spolaore, 2009. "Efficiency and Stability of National Borders," Review of Business and Economic Literature, Intersentia, vol. 0(1), pages 4-22, March.
    18. Enrico Spolaore, 2009. "Efficiency and Stability of National Borders," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(1), pages 4-21.
    19. Vincent Anesi & Philippe De Donder, 2011. "Voting under the threat of secession: accommodation vs. repression," Working Papers 2011/40, Institut d'Economia de Barcelona (IEB).
    20. Hans-Georg Petersen, 2008. "Integration, decentralization, taxation, and revenue sharing : good governance, sustainable fiscal policy and poverty reduction as peace-keeping strategies," Finanzwissenschaftliche Diskussionsbeiträge 57, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    21. Stegarescu, Dan, 2004. "Economic Integration and Fiscal Decentralization: Evidence from OECD Countries," ZEW Discussion Papers 04-86, ZEW - Leibniz Centre for European Economic Research.
    22. Klaas Staal, 2010. "Incentives for separation and incentives for public good provision," Public Choice, Springer, vol. 145(3), pages 531-546, December.
    23. Vincent Anesi & Philippe De Donder, 2011. "Voting under the Threat of Secession: Accommodation vs. Repression," CESifo Working Paper Series 3458, CESifo Group Munich.
    24. Donald Wittman, 2000. "The Wealth and Size of Nations," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 868-884, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maria Cadaval Sampedro & Ana Herrero Alcalde & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2022. "Extreme events and the resilience of decentralized governance," Working Papers. Collection A: Public economics, governance and decentralization 2212, Universidade de Vigo, GEN - Governance and Economics research Network.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rohner, Dominic & Esteban, Joan & Flamand, Sabine & Morelli, Massimo, 2018. "A Dynamic Theory of Secession," CEPR Discussion Papers 12398, C.E.P.R. Discussion Papers.
    2. Joan-Maria Esteban & Sabine Flamand & Massimo Morelli & Dominic Rohner, 2018. "The Survival and Demise of the State: A Dynamic Theory of Secession," Working Papers 1028, Barcelona School of Economics.
    3. Enrico Spolaore, 2016. "The economics of political borders," Chapters, in: Eugene Kontorovich & Francesco Parisi (ed.), Economic Analysis of International Law, chapter 1, pages 11-43, Edward Elgar Publishing.
    4. Flamand, Sabine, 2019. "Partial decentralization as a way to prevent secessionist conflict," European Journal of Political Economy, Elsevier, vol. 59(C), pages 159-178.
    5. Enrico Spolaore, 2010. "Federalism, Regional Redistribution and Country Stability," Chapters, in: Núria Bosch & Marta Espasa & Albert Solé Ollé (ed.), The Political Economy of Inter-Regional Fiscal Flows, chapter 13, Edward Elgar Publishing.
    6. Vanschoonbeek, Jakob, 2020. "Divided We Stad: a Fiscal Bargaining Model for Divided Countries," MPRA Paper 101863, University Library of Munich, Germany.
    7. Joan Esteban & Sabine Flamand & Massimo Morelli & Dominic Rohner, 2017. "Stay, Split or Strike: Theory and Evidence on Secessionist vs Centrist Conflict," Working Papers 609, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    8. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
    9. Andrés Rodríguez-Pose & Marko Stermšek, 2014. "The economics of secession. Analysing the economic impact of the collapse of the former Yugoslavia," Working Papers. Collection A: Public economics, governance and decentralization 1408, Universidade de Vigo, GEN - Governance and Economics research Network.
    10. Vanschoonbeek, Jakob, 2020. "Regional (in)stability in Europe a quantitative model of state fragmentation," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 605-641.
    11. Ansolabehere, Stephen & Puy, M. Socorro, 2022. "Constitutions, federalism, and national integration," European Economic Review, Elsevier, vol. 148(C).
    12. Alexander Libman, 2012. "Sub-national political regimes and asymmetric fiscal decentralization," Constitutional Political Economy, Springer, vol. 23(4), pages 302-336, December.
    13. Suesse, Marvin, 2019. "Adjusting the size of nations: Empirical determinants of separatism and the Soviet breakup," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 50-64.
    14. Filippo Gregorini, 2007. "Political Geography and Income Inequalities," DISCE - Quaderni dell'Istituto di Teoria Economica e Metodi Quantitativi itemq0746, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    15. Rhea Molato, 2015. "Public Debt and the Threat of Secession," Working Papers tax-mpg-rps-2015-04, Max Planck Institute for Tax Law and Public Finance.
    16. Stephen Ansolabehere & M. Socorro Puy, 2020. "Constitutions, Federalism, and National Integration," Working Papers 2020-04, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    17. Anesi, Vincent, 2012. "Secessionism and minority protection in an uncertain world," Journal of Public Economics, Elsevier, vol. 96(1), pages 53-61.
    18. Dur, Robert & Staal, Klaas, 2008. "Local public good provision, municipal consolidation, and national transfers," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 160-173, March.
    19. Federico Etro, 2006. "Political geography," Public Choice, Springer, vol. 127(3), pages 321-343, June.
    20. Galasso, Vincenzo, 2020. "Market Reactions to Quest for Decentralization and Independence: Evidence from Catalonia," CEPR Discussion Papers 14641, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    secession; separatism; development aid; decentralization;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:44045. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.