b0@P5 X v to POLICY RESEARCH WORKING PAPER 2681 On the Duration The duration of large-scale, violent civil conflict increases of Civil W ar substantially if the society is composed of a few large Paul Collier ethnic groups, if there is Pank Hoeffler extensive forest cover, and if Anke Hoeffler the conflict has commenced since 1980. None of these factors affects the initiation of conflict. And neither the duration nor the initiation of conflict is affected by initial inequality or political repression. The World Bank Development Research Group Office of the Director U September 2001 POLICY RESEARCH WORKING PAPER 2681 Summary findings Collier, Hoeffler, and S6derbom model the duration of since 1980. None of these factors affects the initiation of large-scale, violent civil conflicts, applying hazard conflict. functions to a comprehensive data set on such conflicts The authors also find that neither the duration nor the for the period 1960-99. They find that the duration of initiation of conflict is affected by initial inequality or conflicts is determined by a substantially different set of political repression. This finding is consistent with the variables than those that determine their initiation. The hypothesis that rebellions are initiated where they are duration of conflict increases substantially if the society is viable during conflict, regardless of the prospects of composed of a few large ethnic groups, if there is attaining post-conflict goals, and that they persist unless extensive forest cover, and if the conflict has commenced circumstances change. This paper-a product of the Office of the Director, Development Research Group-is part of a larger effort in the group to study large scale violent conflict. Copies of the paper are available free from the World Bank, 1818 H Street NW, Washington, DC 20433. Please contact Paul Collier, mail stop MC3-304, telephone 202-458-8208, fax 202-522-1150, email address pcollier@worldbank.org. Policy Research Working Papers are also posted on the Web at http:// econ.worldbank.org. The other authors may be contacted at anke.hoeffler@ox.ec.ac.uk, or mans.soderbom@ox.ec.ac.uk. September 2001. (29 pages) The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Produced by the Policy Research Dissemination Center On the Duration of Civil War Paul Collier,(), (2) Anke Hoeffler,(2) and Mans S6derbom(2) (1)World Bank (2)Centre for the Study of African Economies, University of Oxford Prepared for the World Bank, Development Research Group/University of California, Irvine, Center for Global Peace and Conflict Studies, Workshop on Civil Wars and Post- Conflict Transitions, May 18-20, 2001. 1. Introduction In understanding civil wars it is useful to distinguish between their initiation and their scale. In our previous research we have focused on explaining their initiation, we now address scale. The scale of a conflict has various dimensions, and here we are concerned only with one, namely, duration. Other pertinent dimensions are the geographic reach of conflict, and its intensity in terns of mortality and refugees. We consider duration because from a policy perspective it is arguably more important to know how to bring a war to an end than to know how to contain it. In Section 2 we relate the duration of conflict to two altemative models of its initiation. Until recently, economic models of rebellion assumed that the benefits of rebellion accrued only upon victory; new models treat the benefits as accruing during the conflict. This difference has implications for whether conflict duration will be determined by substantially similar, or substantially different, factors from those that determine the initiation of conflict. In Section 3 we present the results of hazard function regressions of the duration of conflict based on data for the period 1960-99. We start from the same explanatory variables as that of the Collier-Hoeffler model of the initiation of conflict, and use statistical rather than theory-based criteria to refine the model. We compare the resulting model of duration with the model of conflict initiation and draw out implications for the process of rebellion. Section 4 concludes. 2. The Initiation and Duration of Conflict Until recently it was conventional to model the benefits of rebellion as being contingent upon rebel victory. This was, for example, the assumption underpinning the celebrated model of Grossman (1991). Although Grossman's model was not temporal, in a simple extension Grossman (1995) introduced a discount rate into the analysis. Collier and Hoeffler (1998) assumed both that benefits accrued only upon victory, and that during the period of fighting the rebels incurred net costs. Hence, the longer the expected duration of war the more heavily discounted would be these benefits, and the higher would be the 2 costs of fighting. The expected duration of a conflict would thus influence the decision whether to rebel, and conversely, the expected eventual pay-off from victory would influence whether a long conflict was worthwhile. Duration and initiation were therefore inter-dependent. For example, suppose that the extent of forest cover determines the probability of reaching a militarily decisive outcome but not the eventual pay-off from victory: forests lengthen wars but do not affect post-war outcomes. Conversely, suppose that natural resource rents determine the eventual pay-off but not the duration. Then we would expect to find that forestation would be associated with a longer duration of war and therefore with a reduced probability of war. Conversely, natural resource rents would be associated both with an increased probability of war and with wars of longer duration: high eventual pay-offs would justify long wars. More recently, rebellion has been modeled as a 'quasi-criminal' activity which is profitable during the conflict (Collier, 2000). In this model because the duration of a conflict is not a cost, the factors which determine duration, forestation in the above example, would not influence the decision to initiate conflict and so would not be correlated with conflict initiation. Conversely, factors which determine the initiation of conflict, natural resource rents in the above example, would not be correlated with the duration of conflict. Of course, there might potentially be a factor, for example government capability, which influenced both initiation and duration. High government capability might reduce the profitability of rebellion during conflict, so reducing the probability of war, and increase the prospects of a decisive military outcome, thus reducing duration. However, contrary to the implication of the Grossman-type models, duration and initiation would not be inter-dependent, arising from the logic of the decision calculus. They would simply have some explanatory variables in common. In recent empirical work we have modeled the initiation of civil conflict, (Collier and Hoeffler, 2001). The dependent variable is the probability of conflict during a five year period, and the sample is in principle global for the period 1960-99, being reduced only by considerations of data availability. If the rebel decision calculus balances the eventual pay-off against costs linked to the expected duration of the conflict, a significant 3 explanatory variable might be effecting either the eventual pay-off or the expected duration. If, at the other extreme, the rebel decision calculus focuses only on viability during conflict, then significant explanatory variables must be affecting that viability. A comparison of the empirical correlates of conflict duration with those found in the Collier-Hoeffler model of conflict initiation can thus to an extent constitute a test of whether the expected duration of conflict is important in the decision to initiate a rebellion. In turn, this illuminates the extent to which rebellion is determined by the anticipation of post-conflict benefits, relative to the benefits which accrue during conflict. If the expected duration of conflict is important in the rebel decision calculus the factors that are significant for the predicted probability of conflict initiation should include those that are significant for the predicted duration of conflict. Note, however, that the signs of the coefficients need not be the same. In the above example, natural resource rents would be associated with longer duration and a higher risk of conflict initiation, while forestation would be associated with longer duration but a lower risk of conflict initiation. Conversely, if the expected duration of conflict does not enter into the rebel decision calculus, then we would expect to find little correspondence between the sets of significant variables in the two regressions. The empirical correlates of the initiation of civil war, as found in the Collier-Hoeffler model, can be grouped into economic, social, geographic and historical. Of these, the most important are the economic. The level, growth and structure of income are all significant influences on conflict risk: countries with low per capita income, slow growth, and a high share of primary commodity exports in GDP face considerably higher risks. Social composition also affects risk. Countries in which the largest ethnic group constitutes between 45% and 90% of the population have around double the risk of other countries. However, other than this 'ethnic dominance' effect, ethnic and religious diversity actually reduces conflict risk: diverse societies are safer than homogenous societies. Geography matters: countries with dispersed populations, and those which are mountainous, face somewhat higher risks. Finally, history matters: once a country has had a conflict, it faces a temporarily higher risk of further conflict. Several other explanatory variables have been tested for inclusion in the model and rejected: for 4 example, neither inequality nor political repression have a significant effect upon the risk of conflict initiation. Hence, in this paper we first investigate whether the variables of the Collier-Hoeffler model of conflict initiation provide a statistically reasonable explanation of conflict duration. This comparison is not the only potential contribution of the Collier-Hoeffler model to the study of conflict duration. Our study of the initiation of conflict found that in the early post-conflict phase the risk of renewed conflict is markedly higher as a result of the conflict. The typical post-conflict country faces a 50% risk of renewed conflict within the first five years of reaching peace. Of this risk, around half is due to the factors inherited from before the conflict, the other half being attributable to some new risks which were generated as a result of the conflict. These conflict-acquired risks gradually decay if peace is maintained. In effect, our two snapshots of risk on the eve of an initial conflict and just after peace has been re-established tell us that during the conflict something happens which drastically but temporarily increases risk. In this paper we focus on how the conflict evolves year-by-year, and specifically how the risk of continued conflict changes. We might expect to see the same rising risk of continued conflict during the conflict as we find has occurred in comparing the before and after snapshots of risk. Both peace and civil war are highly persistent states. Societies at peace have a high probability of remaining at peace. Societies in civil conflict have a high probability of remaining in civil conflict. In this sense the process of war duration cannot be the same as the process of war initiation: the initiation of war usually represents an unlucky drawing from a distribution, whereas the continuation of war is a high probability event. Thus, the continuation of war cannot be a drawing from the same distribution as that which generated it, and so war must radically change the distribution. The gradual decay of the conflict risk in post-conflict societies tells us that the persistence of peace is itself dynamic: the longer it lasts the more likely is it to persist. Conflict persistence potentially has the same property, and we investigate whether this is the case. 5 3. Empirical Analysis Data The data on which the analysis is based are from Collier and Hoeffler (2001, 2001a). However, while that analysis compared countries in which civil conflicts were initiated with those which remained at peace, the present analysis necessarily only compares among countries in which conflicts were initiated. Here we provide a brief summary of the data. Please refer to the appendix for a full list of the 52 war observations used in our baseline model and a full description of the variables. On average the civil wars in our sample are just over seven years long. The shortest wars only lasted one month while the longest lasted over 30 years. In Table 1 we present some descriptive statistics of the potential determinants of war duration. In the first column we list the descriptive statistics for the entire sample and compare these with wars of a duration of four years or less (column 2) and with wars longer than four years (column 4). We chose this comparison because in our regression model we include dummy variables for biannual intervals. All variables were measured in the year the conflict began or, if these data were not available, in the year closest to the start of the conflict. We begin the description of the data with the economic variables. GDP per capita (in 1985 US dollars) is around $1762 for the entire sample. Countries with shorter wars initially had a higher per capita iticome ($2277) while countries with longer wars were characterized by lower incomes ($1413). This difference between the different sub- samples is also apparent when we compare the male enrolment rates in secondary schools. At the start of the conflict in countries with shorter wars a much higher proportion of young men were enrolled (43 percent) than in countries with longer wars (25 percent). However, the structure of the different war economies were similar. The average share of primary commodity exports in GDP was about 13.5 percent for all war observations. Countries with shorter wars are characterized by a slightly higher share of primary commodity exports (14.5 percent). 6 We now turn to some socio-political variables. Using data from the Polity III data set we measure the level of democracy as the openness of the political institutions on a scale of 0 (least open) to 10 (most open). Both short and long wars are characterized by the same low levels of democracy (average values of about 2.3). However, in terms of ethnic and religious diversity we find that the averages of the sub-samples are different. We measure diversity on a scale of zero to 100. The diversity measures are the probabilities that two randomly drawn individuals do not belong to the same group. Thus, a value of zero characterizes perfect homogeneity and 100 complete heterogeneity. The ethnic diversity measure is based on the data from Atlas Naradov Mira and the religious diversity measure is based on the World Christian Encyclopedia. Countries with shorter wars are characterized by much lower levels of ethnic and religious diversity (44 and 31, respectively) than countries with longer wars (57 and 37, respectively). In terms of geographic variables we also find that the countries have different characteristics. Observations with shorter wars are more mountainous (28.2 percent of the country), have a lower coverage of woods and forests (13.7 percent of the country) and have a more dispersed population (0.52). Longer war observations are less mountainous (22.7 percent of the country) but have a higher coverage of woods and forests (30.8 percent of the country) and have a more concentrated population (0.61). Lastly, countries with shorter wars are located in less conflict-ridden regions. On average only 0.3 neighbors of the countries with shorter wars were characterized by internal warfare. For countries with longer wars 0.4 neighbors were experiencing a conflict at the beginning of the country's civil war. To summarize, the descriptive statistics show considerable variation between the countries with shorter wars and the ones that experienced longer wars. We now apply hazard functions to model the duration of civil conflict. Constructing the Likelihood Function The econometric specification is a continuous time hazard model of the monthly transition rates from war to peace. To illustrate the specification, consider a country i 7 which in period t experiences a war. The transition rate from war to peace is represented by the hazard function, which we specify as (1) hit = exp(X/,,8 + Pj)hB(Dit), where Xit is a vector of explanatory variables, ,B is a coefficient vector, Hi is a random effect, permanent for each country, hB is the baseline hazard, and Di, is the duration of the spell. The associated survivor function, which measures the unconditional probability that a duration is longer than D, is equal to (2) Si = expp -exp(X1,fl+ uH)h (u)du; and the likelihood that a period of length D is completed (&1) or censored (&=0) at time t can then be written Li, = Si, (hi, ). Because some countries have had several spells of war over the sample period, we write country i's contribution to the likelihood from R spells equal to the product {lJ= Li, For the baseline hazard we adopt a specification which allows for stepwise estimation, which is flexible. By dividing the time axis into W intervals by the points C12,...,CCW and assuming constant hazard rates within each interval, we can write the hazard function as (3) hi, = exp(Xtfi + Au)exP(Ad1,i,), c,v l < Di, c,,, w = 1,2,...,W with co = 0 and cw = co, and where dWi, is a dummy variable equal to one if cwl-, x2 0.096 Pseudo R2 0.10 Number of observations 51 Note: z-statistics are based on asymptotic standard errors. Significance at the 10%, 5% and 1% level is indicated by *, ** and ***, respectively. s The model with controls for unobserved heterogeneity gave identical results. 23 Table 3: The Baseline Specification for the Hazard Function Model [1]: Without controls Model (21: With controls for for unobserved heterogeneity unobserved heterogeneity Coefficient abs [z] Coefficient abs [z] Ethnolinguistic Fractionalization -0.10 3.40*** -0.08 2.42** Ethnolinguistic Fractionalization 2 / 100 0.10 3.16*** 0.08 2.57*** Male secondary schooling 0.03 2.28** 0.04 3.23*** Neighbours at war -0.79 2.21** -0.71 1.98** Forest coverage -0.02 2.32** -0.03 2.93*** Log population -0.05 0.33 -0.26 1.82* Religious fractionalization -0.03 0.88 -0.01 0.33 Religious fractionalization2 / 100 0.05 0.93 0.04 0.63 1970s -0.36 0.80 -0.05 0.11 1980s -1.23 2.1I** -2.26 3.86*** 1990s -2.09 1.85* -2.51 2.23** d2 -1.68 2.23** -1.16 1.49 d3 -1.01 1.57 -0.13 0.19 d4 -0.18 0.57 1.72 3.00*** 1990s x d2 1.93 1.20 1.59 0.97 1990s x d3 1.55 0.99 0.88 0.55 1990s x d4 -0 - -0 -- Intercept -0.69 0.35 0.53 0.25 A2 -3.12 5.12*** P 0.69 Log likelihood -79.83 -74.92 LR x2(13) 35.52 45.34 Prob > x2 0.00 0.00 Pseudo R2 0.18 0.23 Number of observations 52 52 Note: z-statistics are based on asymptotic standard etrors. Significance at the 10%, 5% and 1% level is indicated by , ** and ***, respectively. 24 Table 4: The Baseline Specification with School Enrollment Interacted with Duration Model [1]: Without controls Model [2]: With controls for for unobserved heterogeneity unobserved heterogeneity Coefficient abs [z] Coefficient abs [z] Ethnolinguistic Fractionalization -0.11 3.69*** -0.10 3.26*** Ethnolinguistic Fractionalization 2 1oo 0.11 3.37*** 0.10 3.51*** Male secondary schooling 0.05 3.57*** 0.05 3.77*** Neighbours at war -1.01 2.72*** -1.00 2.66*** Forest coverage -0.02 1.74* -0.03 2.28** Log population 0.07 0.48 -0.11 0.68 Religious fractionalization -0.04 1.05 -0.01 0.31 Religious fractionalization2/ 100 0.05 1.07 0.02 0.29 1970s -0.45 0.98 -0.08 0.19 1980s -1.35 2.28** -2.32 4.04*** 1990s -2.61 2.24** -2.70 2.36*** d2 -0.66 0.67 -0.39 0.40 d3 0.55 0.63 1.18 1.28 d4 1.02 1.56 2.97 3.84*** Male secondary schooling x d2 0.04 1.31 -0.03 1.03 Male secondary schooling x d3 -0.07 2.03** -0.06 1.76* Male secondary schooling x d4 -004 2.25** -0.05 2.36** y9Os x d2 2.62 1.57 2.17 1.26 y90s x d3 2.68 1.63 1.90 1.12 y9Os x d4 -00 -- -J -- Intercept -2.87 1.25 -1.78 0.73 P2 -3.18 4.99*** P 0.73 Continues... 25 Table 4: Continued Model [1]: Without controls for Model (2]: With controls for unobserved heterogeneity unobserved heterogeneity Log likelihood -75.39 -71.15 LR X2(13) 46.39 54.87 Prob > x2 0.00 0.00 Pseudo R2 0.24 0.28 Number of observations 52 52 Note: z-statistics are based on asymptotic standard errors. Significance at the 10%, 5% and 1% level is indicated by *, ** and ***, respectively. 26 Appendix Table 1: Sample of 52 Wars Country Start of the End of the War War Algeria 07/62 12/62 Algeria 05/91 Ongoing Angola 02/61 05/91 Burma/Myanmar 68 10/80 Burma/Myanmar 02/83 07/95 Burundi 04/72 12/73 Burundi 08/88 08/88 Burundi 11/91 ongoing Chad 03/80 08/88 Columbia 04/84 ongoing Cyprus 07/74 08/74 Dominican Rep. 04/65 09/65 El Salvador 10/79 01/92 Ethiopia 07/74 05/91 Guatemala 07/66 07/72 Guatemala 03/78 03/84 Guinea-Bissau 12162 12/74 India 08/65 08/65 India 84 94 Indonesia 06/75 09/82 Iran 03/74 03/75 Iran 09/78 12/79 Iran 06/81 05/82 Iraq 09/61 11/63 Iraq 07/74 03/75 Iraq 01/85 12/92 Jordan 09/71 09/71 Morocco 10/75 11/89 Mozambique 10/64 11/75 Mozambique 07/76 10/92 Nicaragua 10/78 07/79 Nicaragua 03/82 04/90 Nigeria 01/66 01/70 Nigeria 12/80 08/84 Pakistan 03/71 12/71 Pakistan 01/73 07/77 Peru 03/82 12/96 Philippines 09/72 12/96 Romania 12/89 12/89 Rwanda 11/63 02/64 Rwanda 10/90 07/94 Somalia 04/82 12/92 Sri Lanka 04/71 05/71 Sri Lanka 07/83 ongoing Sudan 07/83 ongoing Turkey 07/91 ongoing Uganda 05/66 06/66 Uganda 10/80 04/88 Yugoslavia 04/90 01/92 Zaire/Dem. Rep. of Congo 07/60 09/65 Zaire/Dem. Rep. of Congo 09/91 12/96 Zimbabwe 12/72 12/79 27 Appendix: Data Sources War Duration A civil war is defined as an internal conflict in which at least 1000 battle related deaths (civilian and military) occurred per year. We use mainly the data collected by Singer and Small (1984, 1994) and according to their definitions we updated their data set for 1992- 99. GDP per capita We measure income as real PPP adjusted GDP per capita. The primary data set is the Penn World Tables 5.6 (Summers and Heston 1991). Since the data is only available from 1960-92 we used the growth rates of real PPP adjusted GDP per capita data from the World Bank's World Development Indicators 1998 in order to obtain income data for the 1990s. Primary commodity exports/GDP The ratio of primary commodity exports to GDP proxies the abundance of natural resources. The data on primary commodity exports as well as GDP was obtained from the World Bank. Export and GDP data are measured in current US dollars. Population Population measures the total population, the data source is the World Bank's World Development Indicators 1998. Again, we measure population a the beginning of each sub-period. Social, ethnolinguistic and religious fractionalization We proxy social fractionalization in a combined measure of ethnic and religious fractionalization. Ethnic fractionalization is measured by the ethno-linguistic fractionalization index. It measures the probability that two randomly drawn individuals from a given country do not speak the same language. Data is only available for 1960. In the economics literature this measure was first used by Mauro (1995). Using data from Barrett (1982) on religious affiliations we constructed an analogous religious fractionalization index. Following Barro (1997) we aggregated the various religious affiliations into nine categories: Catholic, Protestant, Muslim, Jew, Hindu, Buddhist, Eastern Religions (other than Buddhist), Indigenous Religions and no religious affiliation. The fractionalization indices range from zero to 100. A value of zero indicates that the society is completely homogenous whereas a value of 100 would characterize a completely heterogeneous society. We calculated our social fractionalization index as the product of the ethno-linguistic fractionalization and the religious fractionalization index plus the ethno-linguistic or the religious fractionalization index, whichever is the greater. By adding either index we avoid classifying a country as homogenous (a value of zero) if the country is ethnically homogenous but religiously divers, or vice versa 28 Ethnic dominance Using the ethno-linguistic data from the original data source (Atlas Naradov Mira, 1964) we calculated an indicator of ethnic dominance. This variable takes the value of one if one single ethno-linguistic group makes up 45 to 90 percent of the total population and zero otherwise. Geographic Dispersion of the Population We constructed a dispersion index of the population on a country by country basis. Based on population data for 400km2 cells we generated a Gini coefficient of population dispersion for each country. A value of 0 indicates that the population is evenly distributed across the country and a value of 1 indicates that the total population is concentrated in one area. Data is available for 1990 and 1995. For years prior to 1990 we used the 1990 data. We would like to thank Uwe Deichman of the World Bank's Geographic Information System Unit for generating this data. He used the following data sources: Center for International Earth Science Information Network (CIESIN), Columbia University; International Food Policy Research Institute (IFPRI); and World Resources Institute (WRI). 2000. Gridded Population of the World (GPW), Version 2. Palisades, NY: IESIN, Columbia University. Available at http://sedac.ciesin.org/plue/gpw. Forest Coverage We used the FAO measure,of the proportion of a country's terrain which is covered in woods and forest. Source: http://www.fao.org/forestry Mountainous terrain The proportion of a country's terrain which is mountainous was measured by John Gerrard, a physical geographer specialized in mountainous terrain. His measure is not only based on altitude but takes into account plateaus and rugged uplands. The data is presented in Gerrard (2000). Peace Duration This variable measures the length of the peace period since the end of the previous civil war. For countries which never experienced a civil war we measure the peace period since the end of World War. Neighbors at War This binary variable indicates whether any of the neighbours was at war at the time the conflict began. We would like to thank James Murdoch and Todd Sandler for the use of their neighbourhood data set. Countries sharing land boundaries are classified as neighbours, island nations do not have any neighbours. 29 Policy Research Working Paper Series Contact Title Author Date for paper WPS2655 Measuring Services Trade Aaditya Mattoo August 2001 L. Tabada Liberalization and its Impact on Randeep Rathindran 36896 Economic Growth: An Illustration Arvind Subramanian WPS2656 The Ability of Banks to Lend to Allen N. Berger August 2001 A. Yaptenco Informationally Opaque Small Leora F. Klapper 31823 Businesses Gregory F. 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