Shaping development policies toward fragile states
Submitting InstitutionUniversity of Oxford
Unit of AssessmentEconomics and Econometrics
Summary Impact TypePolitical
Research Subject Area(s)
Economics: Applied Economics, Econometrics
Summary of the impact
Research at Oxford, led by Paul Collier, on the causes and consequences
of conflict and state failure for low income economies has informed
policymakers, and contributed to a substantial increase in the proportion
of aid programmes devoted to addressing these problems. Using rigorous
quantitative methods, the research has identified the economic factors
underlying conflict and state failure in low income countries, quantified
the substantial costs inherent in state failure and mis-governance, and
proposed effective ways of addressing these problems. The impact of
Collier's team's research has been further expedited by his prominent role
as advisor to governments and policymakers (eg. IMF, DFID, World Bank). In
this way, Collier and his team's research has substantially influenced
current thinking on development policy.
Research has been led by Professor Paul Collier, Director of the Centre
for the Study of African Economies (CSAE) since its establishment in 1986,
and Director of Development Research at the World Bank from 1998-2003.
Other researchers involved include:
- Christopher Adam - been a Research Associate of CSAE since 1993, and
Professor of Development Economics in the Department for International
Development at the University of Oxford;
- Benedikt Goderis - Research officer at CSAE from 2006 to 2008, and now
an Assistant Professor of Economics at Tilburg University;
- Anke Hoeffler - Research Fellow at CSAE since 1999;
- Dominic Rohner - Research Associate at OxCARRE since 2007, Lecturer at
York 2007-09, then Assistant Professor at Zurich.
CSAE is a centre of excellence for the application of rigorous
quantitative methods to the analysis of the particular problems facing low
income economies in Africa. One important strand of their work has
highlighted two issues: first, the links between conflict, state failure,
and economic conditions; and second the policies that can mitigate the
risks of conflict and state failure. The research has pioneered the
quantitative modelling of the risks of conflict, [Section 3: R2].
It has identified the economic factors that make a country more prone to
conflict, highlighting the role of poverty and sudden collapses in
economic growth, and a dependence upon primary commodity exports [R1,
R2]. The findings suggest that the economic factors that determine
the feasibility and opportunity costs of rebellion and conflict play a
potentially more important role in determining the risks of conflict than
measures of grievance, such as ethnic diversity or inequality [R3].
CSAE research has quantified the costs associated with civil war and state
failure - taking into account not only the direct effects on the country
concerned but also the spillover effects on their neighbours - and has
shown them to be extremely large [R4].
Collier and his colleagues at the CSAE have addressed the question of how
to mitigate the problems associated with conflict and state failure. The
research highlights interventions with the potential to reduce the risks
of conflict and state failure by enhancing economic performance. It
demonstrates the crucial role that can be played by international aid in
post-conflict recovery, emphasising the importance of phasing in the aid
over a period of several years as the post-conflict country's absorptive
capacity recovers [R5]. In the absence of post-conflict aid,
inflation tends to increase sharply, hampering more general monetary
recovery. Aid is shown to transform the path of monetary variables in the
post-conflict period, achieving a monetary "reconstruction" analogous to
its more evident role in infrastructure [R6].
Low income countries that depend on primary commodity exports are
particularly vulnerable to conflict and state failure, and strong
governance is shown to be important in enabling resource-rich developing
countries to harness opportunities for economic growth [R7]. CSAE
research (with Rohner) shows that by itself, democracy in low-income
countries may increase, rather than reduce, the risks of conflict, and
that elections in post-conflict situations may also be risk-increasing [R8].
References to the research
[R1] Collier, P. and A. Hoeffler, 1998. "On the economic causes of
Civil war" Oxford Economic Papers, 50(4), 563-573.
[R2] *Collier, P. and A. Hoeffler (2004): Greed and Grievance in
Civil War, Oxford Economic Papers, 56(4), 563-595.
(Highlighted by Thomson Reuter as a `current classic' Feb 2010 for the
Economics paper with the greatest absolute increase in cumulative
citations from the previous bimonthly period to now. - http://archive.sciencewatch.com/dr/cc/10-febcc/)
[R3] ** Collier, P., D. Rohner and A. Hoeffler (2007). Beyond
Greed and Grievance: Feasibility and Civil War, Oxford Economic
Papers, 61(1), 1-27.
[R4] Collier, P. and A. Hoeffler (2004) Conflicts, in B. Lomborg
(ed.) Global Crises: Global Solutions, Cambridge University Press:
[R5] *Collier, P. and A. Hoeffler (2004), Aid, Policy and Growth
in Post Conflict. European Economic Review, 48, 1125-45.
[R6] Adam, C., P. Collier and V. A. B. Davies (2008), Postconflict
monetary reconstruction, World Bank Economic Review, 22 (1)
[R7] **Collier, P. and B. Goderis (2012), Commodity prices and
growth: an empirical investigation, European Economic Review, 56
[R8] ** Collier, P. and D. Rohner (2010): Democracy, Development
and Conflict, Journal of the European Economic Association,
European Economic Review is a leading general-interest journal and
is classed as "AA" in the Combes-Linnemer (2010) ranking.
Journal of the European Economic Association is a leading
general-interest journal. It was rated as "4*" by the ESRC-RES review of
UK Economics and is classed as "AA" in the Combes-Linnemer (2010) ranking.
Oxford Economic Papers is a general-interest economic journal and
classed as "A" in the Combes- Linnemer (2010) ranking.
* denotes publication returned as part of RAE 2008
** denotes publication returned as part of REF 2014
The Centre for the Study of African Economies was a designated ESRC
research centre between 1991 and 2001. Since 2008, CSAE research has
received funding for its work from a broad range of sources including the
ESRC, DFID, the Bill and Melinda Gates Foundation, the Open Society
Institute, the Vanguard Charitable Endowment Foundation, and the World
Bank, totalling approx £5.5m.
Details of the impact
The research undertaken by Collier and other members of the CSAE team has
played a major role in bringing the economic and political problems of
`fragile' developing economies to the forefront of the public policy
debate around aid and development policies. It has been influential in
shaping the policies of donor countries and intergovernmental
organisations to support these fragile nations.
A key driver in influencing the public policy debate and securing impact
from this work has been a number of best-selling books, written by
Collier, summarizing the technical research by the CSAE, and thereby
bringing it more directly to the attention of a broad array of
policymakers, civil society organizations, and other commentators. Most
notably The Bottom Billion (2007) summarized the body of research
relating to distinctive problems facing small, poor countries (including [R2]).
This book won the Lionel Gelber prize in 2008, the Arthur Ross Book award
in 2008, the Corinne Prize for Economics in 2008, and the Estoril Global
Issues Distinguished Book prize in 2009. It has been described by DFID as
the `seminal work' in the field [C7, p.6]. Wars Guns and Votes
(2009) summarized a broad range of CSAE research on the economic drivers
of conflict, the costs of conflict, and policies to reduce the risks
(including [R2, R3, R6, R8]). Both books have become major
bestsellers - The Bottom Billion has been translated into 20
languages and has 45 million citations on Google.
The CSAE team's research on the costs of conflict (including [R4])
was influential in helping to focus greater attention on fragile states.
Successive British Governments increased the proportion of the UK's aid
programme that is devoted to fragile states and to cases of conflict and
insecurity. The policy objectives and commitments to making development
more effective in fragile states are set out in a 2005 DFID policy paper [C1],
drawing on CSAE research throughout (including [R5]). The
Coalition Government's Strategic Defence and Security Review (SDSR)
committed to spend at least 30 per cent of aid in fragile and
conflict-affected states [C2]. CSAE's work on the cost of conflict
[R2, R3, R7] has also been influential in creating greater
attention to fragile states and The Bottom Billion and associated
CSAE research are identified as key references in the current (2011)
Guidance Note produced by the Governance and Social Development Resource
Centre, under contract from DFID [C3].
The research has also been highly influential in encouraging the
international donor community to address with greater energy the problems
of fragile and failing states. In 2011, the World Bank devoted its
flagship economic report to the issues of conflict, security and
development [C4]. No fewer than nine papers and books authored or
co-authored by CSAE members are referenced in the bibliography (including
[R1, R2]). Professor Collier served on the Advisory Council, and
Anke Hoeffler led research for a key background paper on Post-Conflict
Recovery [C5]. The high cost of conflict and state failure was
given a high profile, referencing CSAE work [R4]. As a follow-up
to the World Development Report (WDR) 2011, World Bank management
presented a strategy paper operationalizing the 2011 WDR, that was
discussed by the Development Committee in Spring 2011 (the Development
Committee is a forum of the World Bank and the International Monetary Fund
that facilitates intergovernmental consensus-building on development
issues) [C6]. At the 2013 World Bank/IMF Spring Meetings, conflict
was a prominent topic because of the recent collapse of Mali and the
Central African Republic, and Collier's work was heavily cited [C7].
Similarly, bilateral donors, meeting in the OECD-hosted International
Network on Conflict and Fragility (INCAF), produced Policy Guidance in
2011 on Supporting Statebuilding in Situations of Conflict and Fragility [C8]
that drew on CSAE research findings and concepts, referencing The
Bottom Billion and the research directly [R3]. This document
provides a point of reference for the OECD Development Assistance
Committee, an international forum of major donor countries (including US,
Canada, Japan, Australia and all the significant donor members of the EU)
and the World Bank, IMF and UNDP.
Through his research and his role as advisor to governments and
policymakers, Collier has substantially influenced current thinking on
development policy. In 2009, the IMF created a Low Income Unit within the
Strategy and Review Department and appointed Collier as Senior Advisor [C9];
Collier is a member of DFID Policy Advisory Group; Advisor to the Vice
President of the Africa Region of the World Bank (2003-); and a member of
the European Commission's Scientific Advisory Board for EU Development
Sources to corroborate the impact
[C1] DFID  Why we need to work more effectively in fragile
states. (January) http://www.jica.go.jp/cdstudy/library/pdf/20071101_11.pdf
pages 6, 12, 13.
[C2] HMSO (2010) Securing Britain in an Age of Uncertainty: The
Strategic Defence and Security Review, cmnd 7948 (October ), 4.B.2. p. 44.
[C3] DFID Governance and Social Development Topic Guide on Fragile
States, Introduction. http://www.gsdrc.org/docs/open/CON86.pdf
[C4] World Bank (2011). Conflict, Security and Development:
World Development Report, 2011. http://siteresources.worldbank.org/INTWDRS/Resources/WDR2011_Full_Text.pdf
see Foreward by Robert Zoellick, President World Bank Group;
Acknowledgements; WDR Advisory Council p. xxi; Bibliography.
[C5] Hoeffler, A, S. von Billerbeck, and S. Ijaz. (2010) Post-conflict
Recovery and Peace Building. World Development Report 2011,
Background paper (October).
[C6] Operationalizing the 2011 World Development Report. Document
prepared for the Development Committee (Joint Ministerial Committee of the
Board of Governors of the Bank and the Fund on the Transfer of real
resource to developing Countries), April 4th 2011.
[C7] Chief Economist, Middle East and North Africa Region (former
chief economist, Africa Region) World Bank will corroborate the
contribution of CSAE research to discussions of policies towards fragile
and failing states within the World Bank.
[C8] OECD Development Assistance Committee (2010), International
Support to Statebuilding in Situations of Fragility and Conflict,
DAC Meeting 24 September 2010.
Subsequently published as:
OECD(2011), Supporting Statebuilding in Situations of Conflict and
Fragility. Policy Guidance.
DAC Guidelines and Reference Series (February).
[C9] Chief of the Low-Income Countries Strategy Unit in IMF's
Strategy, Policy and Review Department will corroborate the contribution
of CSAE research to the work of the unit.