War violence leaves lasting impacts on development long after conflicts end. This study reveals unexploded ordnance significantly threaten rural livelihoods in Cambodia. People avoid investing in activities with immediate security risks but distant rewards, leading to agricultural underdevelopment. The analysis shows that high-fertility land bombed during the past war became least productive today - a counterintuitive finding showing how fear shapes economic outcomes even decades later.

Key Findings:

* High-fertility Cambodian land bombed historically is now less productive than comparable unbombed areas.

* This reversal suggests that time horizons shorten significantly in persistently insecure environments.

* The effect persists long after the physical destruction of war, impacting decades into the post-conflict period.

How It Works:

* Using instrumental variables to isolate land fertility effects from direct wartime destruction.

* Analyzing household production and welfare data across different regions in Cambodia.

This research demonstrates how security concerns created by unexploded ordnance prevent long-term investment, with profound implications for post-conflict recovery.