Guns, Books, or Doctors? Conflict and Public Spending in Haiti
Haiti's economic development has been held back by a history of civil conflict and violence. With donor assistance declining from its exceptional levels following the 2010 earthquake, and concessional financing growing scarce, Haiti must learn to live with tighter budget constraints. At the same time, the United Nations forces that have provided security in the past decade are scaling down. Against this backdrop, this paper explores the conditions under which public spending can minimize violent conflict, and draws possible lessons for Haiti. Drawing on an empirical analysis of 148 countries over the period 1960-2009, simulations for Haiti suggest that increases in military spending would be associated with a higher risk of conflict, an observation in line with Haiti's own history. Greater welfare expenditure (education, health, and social assistance), by contrast, would be associated with lower risk of conflict.
Summary: | Haiti's economic development has
been held back by a history of civil conflict and violence.
With donor assistance declining from its exceptional levels
following the 2010 earthquake, and concessional financing
growing scarce, Haiti must learn to live with tighter budget
constraints. At the same time, the United Nations forces
that have provided security in the past decade are scaling
down. Against this backdrop, this paper explores the
conditions under which public spending can minimize violent
conflict, and draws possible lessons for Haiti. Drawing on
an empirical analysis of 148 countries over the period
1960-2009, simulations for Haiti suggest that increases in
military spending would be associated with a higher risk of
conflict, an observation in line with Haiti's own
history. Greater welfare expenditure (education, health, and
social assistance), by contrast, would be associated with
lower risk of conflict. |
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