Money Can't Buy Love But Can it Buy Peace? Evidence from the EU Programme for Peace and Reconciliation

24 Pages Posted: 27 Sep 2014

See all articles by Tilman Brück

Tilman Brück

IGZ - Leibniz Institute of Vegetable and Ornamental Crops; ISDC - International Security and Development Center; IZA Institute of Labor Economics

Neil Ferguson

ISDC - International Security and Development Center

Abstract

In 1998, the Good Friday Agreement concluded a period of violence in Northern Ireland yet the scars of the conflict remained prevalent in the political landscape. Rival communities remained divided, economic performance was poor and intercommunity tensions frequently manifested. In a bid to reinforce progress towards a peaceful and stable society, over €1bn of public money was spent between 2000 and 2006 on small-scale community and business ventures. Despite the scale of expenditure, however, little rigorous effort has been made to test the success of the programmes.Splitting Northern Ireland into 582 electoral wards, we merge individual-level on perceptions of neighbourhood quality from the British Household Panel Survey with detailed PEACE II accounts. Noting potential selection and omitted variables biases, we implement two-stage random effects models and show that neither level of spending, nor number of projects, in a region is associated with improvements in perceptions of neighbourhood quality.

Keywords: aid intervention, peacebuilding, terrorism, political violence, Northern Ireland, PEACE II, EU Structural Fund, The Troubles

JEL Classification: D74, F35, H56, I38, O18

Suggested Citation

Brück, Tilman and Ferguson, Neil, Money Can't Buy Love But Can it Buy Peace? Evidence from the EU Programme for Peace and Reconciliation. IZA Discussion Paper No. 8451. Available at SSRN: https://ssrn.com/abstract=2502311

Tilman Brück (Contact Author)

IGZ - Leibniz Institute of Vegetable and Ornamental Crops ( email )

Theodor-Echtermeyer-Str. 1
Grossbeeren, 14979
Germany

HOME PAGE: http://www.igzev.de

ISDC - International Security and Development Center ( email )

Friedrichstr. 88
Berlin, 10117
Germany

HOME PAGE: http://www.isd-center.org

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Neil Ferguson

ISDC - International Security and Development Center ( email )

Auguststr. 89
Berlin, 10117
Germany

HOME PAGE: http://www.isdc.org/

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