| Description |
Development practice in conflicted countries is conceptualized and carried out upon a shaky economic theoretical foundation. These theories were built upon research conducted on the development of European nations. This has led to a focus in the development community on investment led growth models, which state that large and small scale government grants can be targeted to touch off latent engines of economic growth. In this thesis I contest that model drawing from counterinsurgency (COIN) examples in Iraq and Afghanistan, demonstrating how such investments can be a source of instability through increased incentives for rent seeking behavior as well as direct theft. I propose a better focus would be to investigate and improve what I call commitment regimes: the methods whereby commitments are made and enforced in a society, be it through religious, tribal, regulatory or violent means. As these regimes are improved, reducing transactions cost and increasing stability, more investment will be made in society as returns become more certain. |
