The Dynamics of Horizontal Economic Inequality in Countries Affected by Ethnic Conflict
Date
2021-07-19
Authors
Ndayikeza, Michel Armel
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
This paper examines the dynamics of horizontal inequality in countries that have experienced
ethnic conflict. This contrasts with previous studies which have focused on the effect
of inequality on conflict. Understanding how conflict affects inequality serves to
shed light on reasons behind conflict recurrence and slow economic development.
The complex relationship between inequality and conflict is analyzed using both
quantitative information, i.e. DHS data from 36 countries for the time period 1986-
2018, and qualitative information, i.e. 6 country case studies. The focus throughout
is on conflicts in which a rebel group claimed to fight the government on behalf of
an ethnic group. The study also compares different inequality indicators suggested
by the literature and provides arguments for why some of them should be preferred
to others. Overall, the analysis shows that ethnic conflicts generally raise ethnic
inequality. Furthermore, the way a conflict ends does not entirely determine the
dynamics of horizontal inequality thereafter. The country case studies suggest that
for a country to witness declining horizontal inequality following an ethnic conflict,
these three conditions are important: (1) a swift victory of the rebel group; (2) financial
resources to redistribute; and (3) a firm determination by the winner to redistribute.
However, these conditions do not guarantee inequality decline. Therefore, the study
suggests that it is important for policy makers to emphasize horizontal inequality
reduction in the post-conflict period irrespective of how the conflict ended to avoid
conflict recurrence.