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Insights from the Field

Development assistance creates winners and losers: New findings from postwar Nepal


Development aid
Postwar context
Ethnic fractionalization
Institutional quality
Asian Politics
ISQ
1 Stata files
3 datasets
Dataverse
Heterogeneous Effects of Development Aid on Violent Unrest in Postwar Countries: Village-Level Evidence from Nepal was authored by Alexander De Juan. It was published by Oxford in ISQ in 2019.

Ending civil wars often brings large aid surges. But this help can unexpectedly fuel violent conflict.

Aid & Peacebuilding: Development aid increases in countries after major conflicts end, but we must look beyond national averages to understand its impact.

What We Found: Using geo-coded data and village-level analysis of social unrest in Nepal, our research shows that aid often causes short-term spikes in violence against non-state actors. This effect is strongest in ethnically fractionalized villages with weak local state institutions. Detailed statistical models confirm these patterns clearly across different contexts.

Why This Matters: These findings suggest a crucial lesson for postwar peacebuilding efforts: well-intentioned development aid may backfire if not carefully matched to specific local conditions, particularly when institutional strength is low or ethnic divides are deep.

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