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The Cost of Failing States and the Limits to Sovereignty

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  • Lisa Chauvet
  • Paul Collier
  • Anke Hoeffler

Abstract

In this paper, we estimate the costs of state failure, both for the failing state itself and for its neighbours. In our analysis, the cost of failure arises from two distinct sources: organized violence due to the incapacity of the state to ensure its own citizens' security and low quality of regulation and public goods due to poor governance. To estimate the cost of failure, we proceed in two steps. First we estimate the annual loss of growth induced by state failure.

Suggested Citation

  • Lisa Chauvet & Paul Collier & Anke Hoeffler, 2007. "The Cost of Failing States and the Limits to Sovereignty," WIDER Working Paper Series RP2007-30, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2007-30
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2007-30.pdf
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    Citations

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    Cited by:

    1. Lisa Chauvet & Paul Collier & Anke Hoeffler, 2010. "Paradise Lost: The Costs of State Failure in the Pacific," Journal of Development Studies, Taylor & Francis Journals, vol. 46(5), pages 961-980.
    2. Hassan O. OZEKHOME, 2022. "Do Regulatory Quality, Government Effectiveness and Rule of Law Matter to Foreign Direct Investment in Nigeria?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 160-175, April.
    3. Oasis Kodila-Tedika & Remy Bolito-Losembe, 2014. "Corruption et Etats fragiles africains," African Development Review, African Development Bank, vol. 26(1), pages 50-58.
    4. Mthuli Ncube & Basil Jones, 2014. "Working Paper 197 - Estimating the Economic Cost of Fragility in Africa," Working Paper Series 2105, African Development Bank.
    5. Christian Agu, 2024. "Moderating Effect Of State Fragility On The Globalisation: Economic Growth Nexus In Sub-Saharan Africa," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 16(2 (July)), pages 239-264.
    6. Charles Shaaba Saba & Nicholas Ngepah, 2019. "A cross-regional analysis of military expenditure, state fragility and economic growth in Africa," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(6), pages 2885-2915, November.
    7. Abdel-Malek, Talaat, 2015. "The global partnership for effective development cooperation: origins, actions and future prospects," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 88, number 88, July.
    8. Satish Chand & Ruth Coffman, 2008. "How Soon Can Donors Exit From Post-Conflict States?," Working Papers 141, Center for Global Development.
    9. José María, Larrú, 2012. "La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica [Aid and inequality relationship. Evidence and theoretical justification]," MPRA Paper 38857, University Library of Munich, Germany.
    10. Ines A. Ferreira, 2018. "An empirical analysis of state fragility and growth: The impact of state ineffectiveness and political violence," WIDER Working Paper Series wp-2018-29, World Institute for Development Economic Research (UNU-WIDER).
    11. Sever, Can, 2018. "The myth of economic recovery: The case of crises in neighboring countries," Economics Letters, Elsevier, vol. 164(C), pages 65-69.
    12. Ines A. Ferreira, 2018. "An empirical analysis of state fragility and growth: The impact of state ineffectiveness and political violence," WIDER Working Paper Series 029, World Institute for Development Economic Research (UNU-WIDER).
    13. Lisa Chauvet & Paul Collier, 2008. "Aid and Reform in Failing States," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 22(1), pages 15-24, May.

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