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ECONOMY

Weingast - Wittman (eds) - Handbook of Political Ecnomy

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james d. fearon 865<br />

relationship between ethnic diversity and economic growth or public goods provision.<br />

The results are mixed but generally find a negative relationship (Easterly and<br />

Levine 1997; Alesina, Baqir, and Easterly 1999;Miguel2004;MiguelandGugerty2005;<br />

Posner 2004a). Rabushka and Shepsle (1972) and Horowitz (1985) discussed cases<br />

that they argued showed a tendency for ethnic polarization to undermine democracy,<br />

but the recent wave of cross-national statistical work on determinants of democracy<br />

has not closely examined the effect of ethnic variables. 19 As noted, there does not<br />

appear to be a strong cross-national association between various measures of ethnic<br />

diversity or demography and the onset of civil war (Fearon and Laitin 2003; Collier<br />

and Hoeffler 2004).<br />

For all three dependent variables—economic performance, violence, and especially<br />

democracy—basic empirical work remains to be done. Regarding the first, we know<br />

little about the mechanisms linking ethnic demographies to economic outcomes, and<br />

we do not know whether ethnic demographies can reasonably be taken as exogenous<br />

in studies of economic performance or economic policy. If, as suggested by the<br />

European experience, strong states make ethnic homogeneity as much as the reverse,<br />

then the negative relationships found in the small empirical literature may not be<br />

fully causal. Regarding violence, we need systematic work on whether and when<br />

state policies that discriminate against particular groups are associated with violent<br />

conflict. 20 Also, there is no work to date systematically comparing the propensity of<br />

ethnic as opposed to other political cleavages to cause violence. Regarding democracy,<br />

even fairly basic cross-national analyses remain to be undertaken. Work on all three<br />

dependent variables might be helped if we had cross-national survey data on how<br />

people think about their ethnicity and what role it plays in their thinking about<br />

politics. 21<br />

As discussed above, theoretical work on the politicization of ethnicity and onset of<br />

ethnic violence has proposed a number of logics for why and when these may occur.<br />

Missing, with a few exceptions, are developed formalizations of these arguments that<br />

would allow a deeper understanding of how the logics work and relate to one another.<br />

Models examining how ethnic divisions affect democratic stability and performance<br />

are almost completely absent, and as noted most models examining ethnicity and<br />

violence could just as well be models of, say, class and violence. Finally, we lack a good<br />

baseline model that would formalize the intuition that particular ethnic distinctions<br />

are matters of social coordination and convention rather than simply given by history<br />

and culture for all time. 22 Much remains to be done.<br />

¹⁹ Przeworski et al. 2001 find little evidence for a direct impact of ethnic fractionalization on either<br />

democratic onset or persistence, whereas Boix 2003 finds that democracy is less stable in ethnically<br />

diverse middle-income countries. Fish and Brooks 2004 find no cross-national relationship.<br />

Generalizing from her analysis of India, Chandra 2005 argues that under the right institutional<br />

conditions ethnic diversity might actually support democracy and democratic stability.<br />

²⁰ Cederman and Girardin 2005 find some evidence that countries in which ethnic minorities control<br />

the state apparatus are more civil war prone.<br />

²¹ See Bannon, Miguel, and Posner 2004 for an interesting analysis of this sort.<br />

²² Fearon 1999 and Posner 2005 propose simple models of this sort, but neither is fully developed and<br />

analyzed.

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