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Title: The Political Economy of Social Inclusion
Authors: Dessy, Sylvain
Pallage, Stéphane
Vencatachellum, Désiré
Keywords: Inclusive policies
social exclusion
rebellion
financial safe havens
development
Issue Date: 2012-01
Series/Report no.: Cahiers du CIRPÉE;12-02
Abstract: We build a political economy model of state policy choice highlighting the challenges to breaking barriers to the adoption of inclusive policies in Africa. We highlight necessary and sufficient conditions for a political leader to gain from implementing exclusive policies: (i) Implementing inclusive policies must be risky; (ii) the political leader must have adequate access to an overseas’ financial safe haven as a technology for protecting the spoils from implementing exclusive policies, or investing the looted funds in the domestic economy must sufficiently contribute to mitigate the risk of a revolution. Our results suggest that breaking barriers to inclusive policies in Africa is not an easy task. Bans on international money-laundering schemes may not be sufficient if domestic money laundering is easy and sufficiently discrete.
URI: https://depot.erudit.org/id/003578dd
Appears in Collections:Cahiers de recherche du CIRPÉE

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