The Effects of Diversity on Economic and Political Stability

Table of Contents

• Introduction
• Literature Overview
• Historic Origins of Ethnic Diversity
  • Emergence of Ethnic Variety
  • The Slave Trades
  • Colonisation and Border Drawing
• Economic Development and Governance in Diverse Societies
  • Different Measures of Diversity
  • Effects of Ethnic and Linguistic Diversity
  • Effects of Religious Diversity
  • Endogeneity and Dynamics of Diversity
  • Effects of Social and Political Fragmentation
    • Ethnic Voting and Favouritism
    • Party System Fractionalisation
• Diversity and Stability
  • Effects of Instability
  • Influence of Diversity on Conflict
  • Economic Causes of Civil Conflict
    • Financial Opportunities of Civil Conflict
    • Poverty and Inequality as Drivers of Instability
  • The Role of Institutions in Civil Conflict and Instability
• Indices of Instability
  • Assessment of Instability Indicators
  • Towards a new Composite Indicator of Instability

Objectives and Key Themes

This master's thesis explores the complex relationship between ethnic, linguistic, and religious diversity and its influence on economic and political stability. It delves into the historical roots of diversity, examines its impact on economic development and governance, and investigates the link between diversity and instability, particularly in the context of civil conflict.

• The historical development and impact of ethnic, linguistic, and religious diversity.
• The relationship between diversity and economic development in diverse societies.
• The influence of diversity on political stability and the likelihood of civil conflict.
• The role of institutions in mitigating or exacerbating the effects of diversity on stability.
• Developing a composite indicator of instability that incorporates diverse factors.

Chapter Summaries

• Introduction: This chapter introduces the research topic, outlines the research objectives and key themes, and provides a brief overview of the thesis structure.
• Literature Overview: This chapter reviews existing literature on the topic of diversity and stability, highlighting key theoretical perspectives and empirical findings.
• Historic Origins of Ethnic Diversity: This chapter examines the historical processes that have shaped ethnic, linguistic, and religious diversity, including the emergence of ethnic variety, the slave trades, and the impact of colonialism.
• Economic Development and Governance in Diverse Societies: This chapter explores the relationship between diversity and economic development, examining different measures of diversity, the impact of ethnic and linguistic diversity, the effects of religious diversity, the role of endogeneity and dynamics, and the consequences of social and political fragmentation.
• Diversity and Stability: This chapter investigates the link between diversity and instability, focusing on the effects of instability, the influence of diversity on conflict, the economic causes of civil conflict, and the role of institutions in mitigating instability.
• Indices of Instability: This chapter explores various indices of instability, assesses their strengths and weaknesses, and proposes a new composite indicator that incorporates a broader range of factors.

Keywords

This research focuses on the key concepts of ethnic diversity, linguistic diversity, religious diversity, economic development, political stability, civil conflict, institutional quality, and instability. It explores the relationship between these concepts and examines their impact on societies.