Horizontal inequality in post-conflict states: exploring the impact of International Financial Institution interventions

Thesis

Horizontal inequality (HI) matters because it contributes to conflict outbreak and recidivism and prevents groups of people from accessing the opportunities required to enjoy real freedom. The post-conflict transition offers an opportunity for change and continuity as groups work to protect their interests. It is into this context of flux that International Financial Institutions (IFIs) come with significant financial resources, economic policy advice, and powerful statebuilding programmes.

Despite the importance of addressing HI and the economic power that IFIs hold at this moment of social and political realignment, little is known about what impact IFIs – the World Bank and the IMF – have on economic HI through their interventions. I use mixed methods (quantitative regressions and case study research on Liberia and Côte d’Ivoire) to investigate this question. I argue that IFIs reinforce contradictory progress on HI, leading to a gradual integration of the elite, while the poor remain the same previously disadvantaged groups.

IFIs do this by making important progress in certain policy spheres, while also providing the conditions under which the elite can reassert their economic dominance. Both the World Bank and the IMF strengthen states’ ability to address HI if they choose to, by building state capacity, increasing resources, and re-establishing macroeconomic stability. If the political settlement favours addressing HI, the World Bank can be instrumental in expanding universal basic services and pro-poor programming, which are indirect policies that address HI in the long term. (The IMF does little in this sphere.) Both IFIs however, pursue growth and macroeconomic stability in a manner that disproportionately benefits the more developed tier of the economy where elite groups are employed. Neither IFI engages in policies that reduce HI directly (broadly Affirmative Action policies). This patchwork of progress in some spheres and missed opportunities elsewhere, reinforces the contradictory progress that is characteristic of post-conflict, HI-affected countries.

Authors: Nguyen Morrow, FR

• DOI: 10.5287/ora-gwa5depa7
• Type of award: DPhil
• Level of award: Doctoral
• Awarding institution: University of Oxford
• Language: English
• Keywords: political settlement; international financial interventions; dual economies; post-conflict economic recovery; Côte d'Ivoire; Liberia; IMF; World Bank; horizontal inequality
• Subjects: Income distribution; Postwar reconstruction; Economic development--International cooperation--Congresses; Dual economy; Economic development; Political science; Development banks