The impact of foreign aid on economic development in fragile states

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An empirical analysis of state fragility and growth: the impact of state ineffectiveness and political violence

Publication . Ferreira, Inês

The role of the state in promoting development is well established in the institutional economics literature. Yet, in recent decades the attention has been turned to the opposite side of the spectrum. Facing high levels of poverty and showing a slower progress in achieving development outcomes, fragile states raised concerns among the development community, which felt urged to assist them. However, the quantitative empirical literature examining the link between state fragility and development is still relatively scanty. This paper sheds light on this issue by proposing an approach that comprises indicators for state ineffectiveness and political violence as two dimensions of state fragility, and by using data for the period 1993–2012 in order to understand their impact on growth. The results from standard econometric methods suggest that there is a significant negative effect of state ineffectiveness on economic growth, whereas they fail to find any significant impact of political violence.

2018-02Journal article

Open access

Measuring state fragility: a review of the theoretical groundings of existing approaches

Publication . Ferreira, Inês

State fragility has become a resonant term in the development discourse over the past decade. In its early days it served as a catch-all phrase used by donor organisations to draw attention to the need to assist ‘fragile states’. In response to the call for a better understanding of how to deal with these countries, there was a surge in measures of fragility. However, it was not long before academics pointed to the murkiness and fuzziness of the term, and identified several caveats to most of the proposals for quantification. This paper reviews existing approaches to operationalize this concept, distinguishing between those that offer no ranking or only partial rankings of fragile states, and those providing ordinal lists of countries. The examination of their theoretical underpinnings lends support to the critical view that most existing approaches are undermined by a lack of solid theoretical foundations, which leads to confusion between causes, symptoms and outcomes of state fragility.

2016-12-20Journal article

Restricted access