FDI & Civil Conflict

How does globalisation, especially foreign direct investment, influence the risk of intrastate conflict? While several prominent studies have found that globalisation reduces the probability of civil war, we use new data and methods to approach the question. In particular, we test for the possibility that foreign investment is endogenous to conflict risk and appropriately use inward foreign investment stock rather than net inflow to measure an economy’s exposure to international capital markets. We find no evidence that foreign investment affects civil conflict, suggesting that governments’ fundamental security interests trump the economic losses they can expect to suffer from failing to compromise with potential rebel groups.

New from Sorens & Ruger (full text to first 50 viewers).

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Don’t Lay Down Your Arms, Aceh Edition

As part of a new paper, I’ve been doing research on decentralization in Aceh, Indonesia. Bringing to a conclusion an approximately 20-year insurgency, the Free Aceh Movement (GAM) and Indonesian government came together in a spirit of comity following the devastating Indian Ocean Tsunami and signed a peace deal giving the region ample new autonomy. Or so the usual story goes.

Here’s the reality. GAM came to terms with the Indonesian government because a brutal military offensive, paired with the imposition of martial law, had reduced their numbers significantly. Still, giving up their dream of independence for Aceh was a bitter pill. In the end, they agreed to the Helsinki Memorandum of Understanding, which provided for the laying down of rebel weapons and new autonomy for Aceh.

That Memorandum of Understanding was never implemented in full. In particular, two provisions – the ability of Aceh to enact primary legislation without central government veto and the ability of Aceh to veto Indonesian treaties and other laws under certain circumstances, were not included in the final bill passed by the Indonesian legislature. In addition:

The Free Aceh Movement (GAM) and dozens of NGOs complain that the new law falls short of the autonomy provisions in the 2005 accord and allows considerable interference by the central government:

Central government powers: Article 11 stipulates that the central government sets the norms, standards and procedures and also monitors all affairs of the Aceh regional administration.

Control over natural resources: Aceh is to retain 70 percent of revenues from its natural resources. But Article 160 stipulates that the management of oil and gas resources in Aceh will be done jointly by the provincial administration and the central government. This is a departure from earlier pledges by Indonesian lawmakers that the Acehnese administration could manage its own resources.

Role of the Indonesian military: The peace accord stipulated that the Indonesian military would be stationed in Aceh only for national defense and would not participate in provincial affairs. But Article 193 of the law gives the army powers within the province.

Human rights: Perpetrators of human rights violations will likely escape justice. An ad-hoc tribunal (Article 215) will only hear cases that occur after its establishment, rather than having retroactive powers.

Aceh even lacks the ability to levy its own taxes, apart from a trivial “alms” tax for poor relief. Thus, Aceh’s autonomy is far less than that enjoyed by, say, Rhode Island. The only new autonomy Aceh received in the peace deal was the right to form local political parties. Otherwise, the main provision was to transfer significant hydrocarbon revenues to the province. With one hand, the Indonesian government double-crossed the former rebels and took away their ability to go their own way on economic policy, and with the other, they bought them off — but of course, that bribe comes with an implicit threat: behave or else we take it back.

How did the Indonesian government get away with the double-cross? Simple:

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This Week in Political Violence

Want to understand the rapidly deteriorating security situation in Iraq? You can do no better than read this masterful account by Kenneth M. Pollock at Brookings. One quote:

These [ISIS and other Sunni militants] are Militias First and Foremost, Terrorists only a Distant Second. Here as well, Prime Minister Maliki and his apologists like to refer to the Sunni militants as terrorists. Too often, so too do American officials. Without getting into arcane and useless debates about what constitutes a “terrorist,” as a practical matter it is a mistake to think of these groups as being principally a bunch of terrorists.

The problem there is that that implies that what these guys mostly want to do is to blow up building or planes elsewhere around the world, and particularly American buildings and planes. While I have no doubt that there are some among the Sunni militants who want to blow up American buildings and planes right now, and many others who would like to do so later, that is not their principal motivation.

Instead, this is a traditional ethno-sectarian militia waging an intercommunal civil war. (They are also not an insurgency.) They are looking to conquer territory. They will do so using guerrilla tactics or conventional tactics—and they have been principally using conventional tactics since the seizure of Fallujah over six months ago. Their entire advance south over the past week has been a conventional, motorized light-infantry offensive; not a terrorist campaign, not a guerrilla warfare campaign. [emphasis original]

Wonder why political violence has persisted in eastern Ukraine even though public support for the rebels is extremely low? Jay Ulfelder draws on some of Fearon and Laitin’s work to explain:

Their study recently came to mind when I was watching various people on Twitter object to the idea that what’s happening in Ukraine right now could be described as civil war, or at least the possible beginnings of one. Even if some of the separatists mobilizing in eastern Ukraine really were Ukrainian nationals, they argued, the agent provocateur was Russia, so this fight is properly understood as a foreign incursion.

As Jim and David’s paper shows, though, strong foreign hands are a common and often decisive feature of the fights we call civil wars.

In Syria, for example, numerous foreign governments and other external agents are funding, training, equipping, and arming various factions in the armed conflict that’s raged for nearly three years now. Some of that support is overt, but the support we see when we read about the war in the press is surely just a fraction of what’s actually happening. Yet we continue to see the conflict described as a civil war.

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The Risk of Civil War in Ukraine

The government and the opposition in Ukraine have begun to shoot each other, leading to 26 deaths overnight. The Ukrainian army is being mobilized, and protestors have started to storm police stations and arm themselves. Could Ukraine be facing civil war?

Several factors point to a high likelihood of civil war. The first is the existing violence. Most civil wars are preceded by low-level internal violence. On the other hand, only a minority of armed conflicts with at least 25 battle deaths eventually escalate to civil war intensity (at least 1000 battle deaths). Still, the Libyan and Syrian civil wars provide recent examples of mass protests that escalated to armed conflict and then to civil war.

The second factor suggesting high violence risk is that rebels have a geographic base in the west of Ukraine. Some reports hold forth that the Lviv region has “declared independence” from Ukraine, but this is misleading. The Lviv regional council has declared sovereignty over its territory to the exclusion of the Ukrainian central government, but it is apparently open to reconciliation if a negotiated solution can be found. Still, when rebels have support of local political authorities, they are far more capable of inflicting large-scale damages on the government, because they have access to police weapons and, even more importantly, tax revenues.

The third factor suggesting high risk of escalation is external involvement. Russian support of the Ukrainian government will diminish rebel capability, but the European Union is preparing sanctions against the Ukrainian government. It is easy to imagine that Russia would send troops to assist the Ukrainian government if necessary; it is inconceivable that NATO or individual European governments would send troops to assist the rebels. Thus, the likelihood of external involvement tells more in favor of Ukrainian government capability than rebel capability. Still, what matters for conflict escalation is not necessarily preponderance of capabilities as such, but asymmetric information about capabilities. If the Ukrainian government is wrong (or the opposition thinks they are wrong) to think that Russia will send troops, it may take a harder line than necessary to reach an agreement that the opposition could countenance – and so far this indeed seems to be happening, as from all reports Yanukovych is not taking negotiations very seriously.

Nevertheless, several factors diminish the likelihood of civil war. One of the factors diminishing the likelihood of civil war is that ideological and ethnic divisions in Ukraine, while serious, are not truly deep as in multiethnic or multireligious societies like Burma, Lebanon, and Syria or highly unequal, sharply ideologically polarized societies like Venezuela, Colombia, and Bolivia. It is extremely unlikely that any region of Ukraine will actually try to secede (save perhaps Crimea’s ethnic Russians), and no Marxist-Leninist insurgency is on the cards either.

Ukraine is a relatively well-off country, and GDP per capita is one of the strongest factors associated with civil peace. That association likely reflects something about institutional quality, rather than affluence as such. Ukraine’s institutions are fragile and contested, but not collapsed as in much of sub-Saharan Africa.

Finally,

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Sympathy for the Rebel

I was pleased to read these statements in the textbook I’m using for intro IR (p. 241):

[I]deally, we would like to reduce the likelihood that bloody and destructive civil wars will break out in the first place. There are several challenges to this aspiration. . . [T]here are truly repressive regimes that deserve the opposition of their people. In these cases, reducing the risk of armed rebellion can have the unintended effect of diminishing the government’s incentives to liberalize.

When discussing civil wars in class, I found my students took a typically “statist” perspective on the problem. For them, the most important thing was strengthening security services and the government’s surveillance capabilities to make armed opposition unthinkable. Most of them seemed shocked when I said that higher civil war risk was probably a good thing in many places. Do we want to strengthen the North Korean state’s surveillance capabilities? Would North Koreans be better or worse off if there were an armed opposition and the government knew it?

You don’t have to be a right-wing gun nut to answer “no” and “better off,” respectively.

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Secessionism

My first book, Secessionism: Identity, Interest, and Strategy, has been released by McGill-Queen’s University Press. Secessionism is the first comprehensive, empirical study of the causes and consequences of contemporary secessionist movements worldwide. It also has a normative component, as I interpret from the empirical results a case for “legalizing secession” in order to reduce the incidence of violence.

Anyone who orders the book before August 31, 2012 should do so at the press’ website and use the coupon code “SORENS12” at checkout for 20% off.

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JPR Special Issue on Climate Change and Conflict

Will global climate change increase resource-based conflicts around the world? Journal of Peace Research has a special issue on the topic, looking at how weather variability has already influenced the rate of conflict. The issue is free to the public until the end of February. Most of the studies find that weather variability does not cause conflict. Indeed, the horrific Indian Ocean tsunami of 2005 actually led to a quick, apparently durable peace agreement between secessionist rebels in Aceh and the Indonesian government. Here’s the abstract from the introductory essay by editor Nils Petter Gleditsch:

Until recently, most writings on the relationship between climate change and security were highly speculative. The IPCC assessment reports to date offer little if any guidance on this issue and occasionally pay excessive attention to questionable sources. The articles published in this special issue form the largest collection of peer-reviewed writings on the topic to date. The number of such studies remains small compared to those that make up the natural science base of the climate issue, and there is some confusion whether it is the effect of ‘climate’ or ‘weather’ that is being tested. The results of the studies vary, and firm conclusions cannot always be drawn. Nevertheless, research in this area has made considerable progress. More attention is being paid to the specific causal mechanisms linking climate change to conflict, such as changes in rainfall and temperature, natural disasters, and economic growth. Systematic climate data are used in most of the articles and climate projections in some. Several studies are going beyond state-based conflict to look at possible implications for other kinds of violence, such as intercommunal conflict. Overall, the research reported here offers only limited support for viewing climate change as an important influence on armed conflict. However, framing the climate issue as a security problem could possibly influence the perceptions of the actors and contribute to a self-fulfilling prophecy.

Erik Gartzke notes that if knee-capping development in middle- or low-income countries is the price of preventing climate change, it is those policies to address climate change that will produce conflict, since development is associated with peace:

The analysis here also suggests that efforts to curb climate change should pay particular attention to encouraging clean development among middle-income states, as these countries are the most conflict prone. Ironically, stagnating economic development in middle-income states caused by efforts to combat climate change could actually realize fears of climate-induced warfare.

If curbing carbon emissions is indeed the only way to stop drastic climate change (natural forcings don’t continue to counteract the human effect, and geoengineering doesn’t work), this argument suggests a possible rationale for having high-income countries pay the biggest initial price.

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