New directions in conflict research from an economics perspective

Abstract

This chapter begins by looking at the causes of internal conflict in developing countries, reviewing the rational choice debate between greed and grievance as a cause of conflict. It argues that these explanations may be complementary, and the breakdown of the institutions behind conflict resolution, or the social contract, may explain why large scale internal conflict breaks out. It looks at the relationship between globalisation and conflict, bearing in mind that civil war is only one form of violent organised internal conflict, and the fact that the relationship between economic progress, and the risk of conflict may be non-linear, with both growth and the absence of growth producing conflict risk. It then closely examines the relationship between natural resource endowment and conflict risk, arguing that economic dependence on certain types of resources and its associated weak institutions are more likely to produce conflict. The growing prevalence of sectarian and civilisational conflict is also outlined, along with the argument for a need for studying conflict at a more local, sub-national level of analysis.