Why are so many ethnically diverse societies poor? Does ethnic diversity cause economic underdevelopment, and if so, how? This dissertation research seeks to explain why so many ethnically diverse countries are underdeveloped, and how some have managed to avoid the poverty traps in which so many of their peers languish. Government institutions provide the key. The incentive structures defined by these institutions determine how ethnicity is channeled into or away from politics and the political allocation of scarce resources: some institutions produce relatively benign outcomes, while others favor zero-sum redistributive politics based on ethnic identity.
To accomplish this goal, the PI employs a multi-method research design. Econometric analysis of cross-national data will allows the PI to test the impact of ethnic diversity and government institutions at the level of the system against a broad sample of countries. To explore the microfoundations of the aggregation process, the PI will collect individual-level data in Lebanon and Yemen via a combination of elite interviews, population surveys, and vignette experiments attached to the surveys.
This dissertation research fills several important gaps in our understanding of how ethnic diversity affects economic development. It contributes to political science by expanding our understanding of how government institutions channel, and possibly pre-empt, potential social cleavages. It augments our understanding of economic development in divided societies by analyzing the ways in which latent cleavages are either reinforced or diluted by the institutions that translate them into political competition. Finally, this project has potentially far-reaching policy implications. Insofar as government institutions are potential policy levers, understanding how they function in different societies can help policymakers select institutions that can help mitigate the potentially negative effects of ethnic divisions.
In terms of broader impact, this dissertation will help inform policymaker decisions toward appropriate government responses and institutions with the aim of mitigating the impact of ethnically-based political competition on economic development. Hence, beyond its interest to academics, it speaks to the puzzles and concerns facing government officials in ethnically diverse states, as well as those working for international development agencies such as the World Bank and the International Monetary Fund. A better understanding of the role government institutions play in magnifying or reducing the impact of ethnic diversity on development will aid in formulating appropriate devel-opment policy.
