THE POLITICAL ECONOMY OF STATE TERROR

This paper analyzes factors contributing to terrorism, using its initial meaning from the French Revolution in which the state is the terrorist. The independent economic variables are mineral exports/GDP, military expenditures/GDP, real GDP growth, real per capita GDP, and population density, and the dependent variable is democide, the murder of people by government. Analysis of the data indicates that mineral exports and poor economic performance (both level and growth of income) increase the probability of democides. However, once regime type (democracy) is controlled for, only mineral exports remain statistically robust. Therefore, the control of rents seems to be a major factor contributing to democides.Democide, Terror, Rent seeking,

Mozambique: 'the war ended 17 years ago, but we are still poor'

Mozambique, an aid darling, poses some stark questions for development cooperation. Current economic management strategies mean that a growing group of young people are leaving school with a basic education but no economic prospects. Will 'marginal' youth in towns and cities pose a threat of political and criminal violence? Can peace be built on poverty and rising inequality? Are elections and expanded schooling enough when there are no jobs

Debt burden, military spending and growth in Sub-Saharan Africa : a dynamic panel data analysis

This article empirically explores the relationship between military expenditure, external debts and economic performance in the economies of sub-Saharan Africa using a sample of 25 countries from 1988–2007. In investigating the defence–external debt nexus, we employ three advanced panel techniques of fully modified OLS (FMOLS), Dynamic OLS (DOLS) and dynamic fixed effect (DFE) to estimate our model. We observe that military expenditure has a positive and significant impact on external debt in African countries. Real GDP affects the total debt stock of African countries with a negative relationship. Our empirical results based on long-run elasticities show that a 1% rise in national output leads to a decline in external debt by 1.52%, on average. Policy-wise, the study suggests that African countries need to strengthen areas of fiscal responsibility and pursue models that encourage rational spending, particularly reductions in military expenditure

Entrepreneurship and growth of entrepreneurial firms in cote d'Ivoire

This article analyses the determinants of individuals' choice for self-employment and entrepreneurial success in Cote d'Ivoire. Entrepreneurial activity is found to be undertaken by individuals who succeed in increasing their entrepreneurial abilities and reducing the risk of starting a business through a learning process that takes place through ageing, professional experience, and apprenticeship or, alternatively, formal education. The learning process takes place both before and after entry into the industry, as firms grow into a larger size. However, financial constraints continue to play a major restraining role for entrepreneurship and firm growth.

Household strategies and rural livelihood diversification

This article reviews the recent literature on diversification as a livelihood strategy of rural households in developing countries, with particular reference to sub-Saharan Africa. Livelihood diversification is defined as the process by which rural families construct a diverse portfolio of activities and social support capabilities in order to survive and to improve their standards of living. The determinants and effects of diversification in the areas of poverty, income distribution, farm output and gender are examined. Some policy inferences are summarised. The conclusion is reached that removal of constraints to, and expansion of opportunities for, diversification are desirable policy objectives because they give individuals and households more capabilities to improve livelihood security and to raise living standards.

Development challenges and opportunities confronting economies in transition

comparative, development, economic development, economies in transition, international, social development, social indicators, social progress, social transformation, sustainable development,