ECONOMIC GROWTH AND VIOLENT INTERNATIONAL CONFLICT: 1875–1999

This paper extends the joint product model of military alliances to apply to the new strategic doctrine adopted by NATO in the 1990s. In particular, a choice must be made between protecting one's own territory and pooling forces for an alliancewide rapid reaction force. This new model accounts for a host of externalities and their implications for burden sharing, full financing, and allocative efficiency. The Pigouvian taxes that adjust for force thinning and attack deflection are shown to finance optimal border‐protecting forces under a variety of circumstances. Second‐best considerations arise owing to the pure publicness of rapid reaction forces. The ideal toll arrangement does not currently characterize NATO financing, nor is it likely to do so.     

A critique of Paul Collier's ‘greed and grievance’ thesis of civil war

Paul Collier has produced a well-written and apparently plausible thesis on ‘greed and grievance’, evidenced in several published texts, which concludes unambiguously that greed, not grievance, is overwhelmingly the cause of conflict. However, Collier has based these findings upon narrowly defined quantitative measures–three defined indices of greed and four indices of grievance. Collier consciously omitted indices which he found difficult to measure, such as suppliers of armaments and opportunities for bureaucratic corruption. However, he appears to have unwittingly omitted some further factors, including governance, management mechanisms for natural resources and the influence that charismatic leadership can have on rebel groups. These omissions can be viewed as a major flaw in Collier's work. They also explain why Collier has diagnosed that civil wars are more likely to occur in some countries in the developing world without offering adequate explanation of why this may be so.