Is the World Flat? The Effects of Globalization and Westernization on Ethnic Conflict Samuel S. Stanton, Jr., Grove City College SSStanton@gcc.edu Joseph J. St. Marie, University of Southern Mississippi j.stmarie@usm.edu Shadad Naghshpour, University of Southern Mississippi s.naghshpour@usm.edu G. Dale Thomas Thomas628@aol.com Prepared for delivery at the 2006 Annual Meeting of the American Political Science Association, August 31 - September 4, 2006. Is the World Flat? The Effects of Globalization and Westernization on Ethnic Conflict A current popularization of globalization is one of a “flat world.” To be sure, globalization is not a recent phenomena yet it has received considerable attention from the media and politicians. We believe that globalization is an integral part of the post-cold war international system. To be sure globalization has created great wealth but a very real question faced by policy makers in developing countries is if and how globalization actually benefits their country. On the other hand westernization as distinct from globalization presents new ideas, products and methods to various societies. Tensions created by westernization can create problems for the state and social groups. Globalization creates winners and losers. Westernization either singularly or in tandem with globalization can create winners and losers in states and societies. It is those who are losers with whom we are concerned. While one may argue that the world has indeed been flattened by globalization and westernization a more appropriate analogy would be of a carpet spread out over messy floor. Certainly there are flat spots but there are also humps and bumps of differing size and magnitude. These bumps are the object of this paper. We ask a simple question: do globalization and westernization affect ethnic conflict and civil war? To this end we will examine how westernization and globalization and their numerous constituent parts affect ethnic conflict and civil war. Our research begins with two questions. One, how do globalization and westernization affect ethnic conflict or civil war. Two, does either of these phenomena affect conflict differently or do they act in conjunction? We proceed with our research in several parts. First, we provide analytical distinctions between our two theoretical concepts. Second, we outline the literature pertaining to our research question and third propose hypotheses to test. In a fourth section we sketch out the methods we utilize and present our results. We conclude and explore avenues for further research in a final section. Globalization and Westernization Noble Prize winner Joseph Stiglitz provides us with thorough definition of globalization. Stiglitz contends that globalization is: Fundamentally, it is the closer integration of the countries and peoples of the world which has been brought about by the enormous reduction of costs of transportation and communication and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and (to a lesser extent) people across boarders. (Stiglitz 2003) This definition encompasses the whole of the globalization debate by touching upon some of the main drivers of the phenomena, namely trade, communication and knowledge dissemination. While a commonly perceived as the creation of one market globalization encompasses multiple facts which are not necessarily interrelated. Therefore globalization is a collection of factors each acting independently yet in many instances interactively. For example, trade tends to go hand in hand with capital flows but capital need not assist in the expansion of the knowledge base. Furthermore, we should not view globalization as a recent phenomenon since successive waves of globalization have occurred throughout history. What we witness today is merely the most recent iteration of the phenomena. 1 Westernization on the other hand has a more subtle meaning. While modernization and westernization tend to be closely linked in many respects, for our purposes they are analytically distinct. Modernization according to Huntington (1996) asserts that, “Modernization involves industrialization, urbanization, and more complex and diversified occupational structures... a product of the tremendous expansion of scientific and engineering knowledge beginning in the eighteenth century.” Conversely Huntington sees the West or westernization as an expansion of the culture—or in his words civilization—of the West. Following Huntington’s schema (1996: 69-71) western culture includes the following notions: A Classical Legacy Western Christianity characterized primarily by Catholicism and Protestantism European languages Separation of Church and State Rule of Law Social Pluralism Representative bodies Individualism While not all inclusive these notions create the basis for what we call western culture. Westernization thusly is simply the process where these characteristics are transferred to other countries either through economic, social or political contact. This transfer can either be good or bad, since the good of Western medicine and vaccines can be balanced against plagues like small pocks and its destruction of native societies. For our research we take a neutral stance preferring to examine how the influence of the West affects either in enhancing the chances of or decreasing the chances of ethnic conflict and civil war, as opposed to taking a moral stance on the actions of western social, economic or state actors. Are globalization and westernization synonymous? We feel that these two ideas are not only analytically for our purposes but are different concepts by definition and practical application. Amartya Sen (2002) argues that globalization and westernization should not be confused as globalization began hundreds of year before the West’s ascendance and furthermore, globalization is not a new form of Western imperialism as some have asserted. Wolf (2005 notes tat the most recent wave of globalization began in the second half of the nineteenth century while O’Rourke and Williamson (2000) date the present wave of globalization beginning in 1973. Fukuyama (1989) may be correct in asserting that, “the universalization of Western liberal democracy as the final form of human government." But, we see significant variation in democracies around the world especially those with significant western influence. Thus, while westernization may influence is typically introduces ideas that are transformed to the domestic arena by local custom and culture. In sum, we find globalization and westernization to be two theoretically distinct ideas that while potentially similar in outcomes are analytically distinct and should be treated as discrete factors when examining global phenomena. Review of the Literature The literature on ethnic conflict related to globalization and westernization is nonexistent. Therefore we begin our review of relevant literature by looking at literatures that relate to economic development, income inequality and poverty on ethnic conflict and civil war. 2 The political science literature is broad in its treatment of ethnic conflict/civil war and economics. Inequality has been studied by some who attempt to trace conflict behavior back to economic inequalities (Muller 1985; Paige 1957; Russet 1964). While providing a basis for analysis other have noted how economic disparities can create the conditions that will destabilize nation-states (Huntington 1968; Scott 1976). While these authors make significant inroads into the phenomena of ethnic conflict/civil war these early attempts do not address how global economics can affect the cases there cases. A strand in the literature that deal more directly with ethnic groups focuses on nationalism and how it can create expectations and demands from various groups for a share of the modernization benefits (Anderson 1983; Conner 1994; Deutsch 1953; Gelner 1983; Gurr 1971) These authors note how modernization can create the circumstances that make ethnic conflict/civil war possible yet do not address how globalization or westernization can affect the processes of conflict. Globalization and Inequality Various studies have attempted to gauge the impact of globalization on income inequality and poverty. In general consensus revolves around the following notions: Trade is correlated with, and often a source of growth Growth is on average good for the poor The US and EU agricultural and textile protection mechanisms harm developing countries. Foreign Direct Investment is correlated with economic growth Short term capital liberalization can have adverse effects on the poor. Staged liberalization can help alleviate negative impacts on the poor. Education and health care are important factors ensuring the poor benefit from globalization Poverty measure should include education and health as well as income Elite control of an economy or political apparatus have negative impacts on the poor Political reform is needed in many developing countries. Individual studies have addressed these facets of the globalization poverty nexus with relatively uniform results. Heshmnati (2005) finds a correlation between levels of globalization and poverty in that globalization reduces poverty and increased the income of the poorest social groups, while Hertal (2003) including structural factors, concludes that poverty is reduced in all counties where per capita income rises, however, overall poverty reduction is mixed. Kenny (2005) finds that while there is convergence in quality of life indicators, indicators for income lag behind and may not catch up. In lower income countries the poorest tend to have highly specialized income sources as well as household consumption patterns. Peimer (2002) finds that income for the poor rises later than others but economic growth attributed t globalization does tend to reduce poverty. Using an analysis of globalization trends in economic growth and inequality Dollar (2004) finds that poorer countries have higher growth rates that rich countries, the number of global poor has decreased as well as global inequality. Furthermore there is no general trend toward higher inequality within countries and wages and wage inequality are rising worldwide. The policy component of income inequality is addressed by Harrison (2005) who finds that the poor are more likely to share in the economic gains from globalization when government policies are in place to assist the poor in increasing their wages either through better jobs or increased skills. Easterly (2005) using a factor endowment model finds that globalization is less important for alleviating poverty than is productivity growth, which in turn can raise wages in specific sectors. 3 To decrease overall poverty all sectors of the economy must increase productivity, a difficult task for developing nations. In general the literature on Globalization and inequality show that globalization does in fact assist in increasing wages and alleviating poverty. However we should use caution as these findings note how government policy, productivity and a trickle down effect are important components of decreased income inequality. In sum, globalization does help the poor but it may take time. For our purposes this literature demonstrates how globalization can and does increase income yet at the same time may also create social displacement as those who do not benefit from globalization may become disillusioned. Moreover, traditional elites and power centers may loose power to new elites or be displaced by economic changes. These factors may increase the potential for ethnic conflict/civil war. Globalization and Resource Based Conflicts One type of conflict that has been analyzed in the literature recently has been resource based conflict—particularly those in Africa. This type of conflict is of interest to our research since resources tend to be commodities of one sort or another and are sold in a global market. Decreasing transportation costs, increasing global integration and accessible resources can lead to increased ethnic conflict/civil war. Representing the reasoning that civil war is caused by natural resources in particular oil we have the works of Collier and Hoeffler, who find that “the extent of primary commodity exports is the strongest single influence on the risk of conflict” (Collier and Hoeffler 2000, 25). Subsequent research by the same authors refines the basis of the research yet retains the central thrust that commodity exports create the conditions for conflict (Collier & Hoeffler 2002; 2005). Collier and Hoeffler have stirred a debate about the role commodities play in civil war and conflict in general. Fearon (2004) finds significant problems with the Collier& Hoeffler thesis. Specifically Fearon finds there is almost no link between primary commodity exports and civil war outbreak; any association is merely due to the inclusion of fuel in the models; oil exporting states have weaker governments which can account for civil war better than commodity exports. These finds echo previous works (Fearon and Laitin 2003) where oil does not affect the incidence of civil war. Conversely, income is significant and per capita income than $1000 is associated with a 41% greater annual chance of civil war (Fearon 2003, 83). This finding is of significance for this study as we project that globalization affects income especially among the poor. Other scholars have investigated this issue. Ross (2004a; 2004 b) has noted how diamonds have produced conditions conducive to have influenced ethnic/conflict civil war. While more recent research (Ross 2006) show that the incidence of conflict rose if the nation had commodities especially diamonds and/or petroleum, yet the mechanisms by which conflict was initiated can differ from commodity to commodity and nation to nation. Of particular interest to our research is evidence that exports and perhaps imports affect ethnic conflict/civil war. Legal commodity export prices can be adversely affected by globalization and terms of trade. Economic shocks caused by price fluctuations may be the catalyst for ethnic or regional groups to engage in conflict behavior. Indeed as Hayes (2002) notes, conflict increased in Eastern Congo as the price of the mineral ‘coltan’ used in cell phone components increased significantly. Globalization and Openness Globalization seeks in one way to open markets to the world thus creating one world market. In a perfectly globalized world no trade barriers would exist nor be tolerated. Economic openness has 4 been explored in the political science literature with findings indicative of a lessening of conflict with increased trade and openness (Russett & O’Neal 2000; Hegre 2000). While these authors do not deal explicitly deal with ethnic conflict or civil wars their research does highlight the processes and mechanisms that lead to conflict which may be applicable to ethnic conflict/civil war. Alternatively, Wei (2000) finds that openness reduces corruption which reduces rents. However, aggrieved groups, if ethnically based may find conflict with authority’s beneficial, Or even attempt to buy political influence as in oil exporting countries (Ross 2001). Empirical studies have found that countries with open economies also have the highest per capita growth (Frankel & Romer 1999). While economic growth has an affect on the incidence of armed conflict. Both Collier and Hoeffler (2002) and Hegre et al (2001) agree that low growth rates increase the incidence of conflict. The mechanisms include opportunity costs for rebel leaders, employment and state distributive policies. Those countries with less growth tend to be low income and low-income countries which makes them more vulnerable to ethnic based conflict or civil war. Yet on the other hand, Rodrik (1998) agues that open economies tend to produce lager government which may in turn be used to provide job, or social policies that are minority friendly in an attempt to minority acquiescence. Liberalization or the process of opening a country can have an affect on conflict. Chua (2002) and Brennen (2003) assert that liberalization can cause destabilization with violence aimed at minorities who may seem to be benefiting from the process. Sachs and Warner (1995) find that liberalization can positively affect economic growth. Hegre, Gissinger and Gleditsch (2003) using the Sachs & Warner measures find that open economies will growth 2.3 % more than closed economies. This increased growth in turn reduces the chance of armed conflict by about 6% compared to closed economies. These percentages increase over time as the economies growth rates diverge and the chance of conflict decrease in the closed economy while increasing in the open economy. Hellman (1998) finds that violence become more probable when the shortterm costs and economic dislocations are not ameliorated by central government polices. This follows a j-curve sort of process. In sum, liberalization can have serious effects on economic stability and the maintenance of social order. Miguel, Satyanath, and Sergenti (2003) assert that income shocks are associated with higher rates of armed conflict. By using rainfall as an instrumental variable to estimate income shocks they find that that low rates of income growth do heighten the probabilities of conflict. Rodrik (1999) notes how trade shocks can have deleterious effects on growth rates and unemployment leading to conflict. Furthermore, if nations attempt to adjust to economic shocks or IMF imposed conditions to overcome debt- crises they can be a risk for increased protests and conflict behavior (Walton & Ragin (1990). Gates (2002) found that income shocks and reduced income can be a mechanism whereby recruitment for opposition groups becomes much easier. Ethnic Conflict Calling a conflict an ethnic conflict covers a wide-range of behaviors and factors. We define an ethnic conflict as a conflict between communal groups that identify themselves in terms of their ethnicity rather than class, geographic location, etc. In the following discussion we develop the understanding of ethnicity, and ethnic conflict behavior that will be used throughout the remainder of this study. The terms minority and ethnic are used interchangeable for the purpose of this work. Minority refers to being part of a group that is outnumbered in a civil society. Minority groups in pluralistic governments often run the risk of being detrimentally affected by state policy or by 5 natural situations to the extent that conflict behavior is deemed a useful or necessary step. Gurr (1985) and Saideman, Lanoue, Campenni and Stanton (2002) use these terms in interchangeably, since most minority groups in the world today are minorities based open ethnicity. The politicization of ethnicity and other identities have engendered new levels of conflict in the world since the 1980s based in part on grievances over inequality and past wrongs that linger. Also, groups within one state looking at the activity of other groups similarly situated in other states noticed a success rate in conflict behavior that might make conflict behavior worthy of repeating in their own state (Gurr 2000, xiv). Thus, ethnic conflict behavior is a protest or rebellion where at least one party to the dispute is an ethnic group. It is also overshadowed by concerns for international conflict and often masked by those conflicts. Given the broad view of ethnicity developed in the social sciences, we can understand ethnic conflict behavior in many different ways. The Protestant-Catholic conflict in Northern Ireland is just as much an ethnic conflict behavior as the Tamil-Sinhala conflict in Sri Lanka. The black versus white conflicts in the U.S. and South Africa are ethnic conflict behaviors, as is the sectarian conflict between Shias and Sunnis in Pakistan. Ashutosh Varshney explains the categories of ethnic conflict behavior as being religious, racial, linguistic, or sectarian (2003). This categorization is based on the idea that group identity; real or imagined is the basis of conflict behavior. Before addressing specific theory of ethnic conflict, we address the important concern about any theory of collective action, namely the assumption of groups acting as rational unitary actors. We choose to accept two primary arguments for the case of individuals banding together in cooperative action. One, individuals join collective action when they believe group action will bring greater benefit than loss by joining the effort (Finkel and Muller, 1998). This appears important where success is contingent on group treatment (Horowitz, 1985). Two, collective action problems are regularly solved and we must move beyond them to address important questions (Lichbach 1994). A theory of ethnic conflict behavior must also be rooted in an understanding that conflict behavior is a security issue. Security for a group is threatened by lack of access to resources, lack of economic opportunity or legal disenfranchisement. Access can be lacking due to political actions of the state, social action by other groups, or general lack of resources in the society. The problem is action taken to make a group more secure, makes other groups feel less secure thereby causing a spiraling effect. A dilemma is created by this spiral of security seeking, as all groups are left worse off than they would be if no group sought to increase its own security (Jervis, 1978). Snyder and Jervis (1999) explain that security dilemmas can be causes of intrastate conflict by making either one or both sides to the conflict less secure because of the actions taken by either side to make themselves more secure. The security dilemma can affect the way in which collective security measures can be taken to intervene and shorten the duration of the conflict or alleviate the conflict. The security dilemma can lead to predatory behavior on the part of elites in the differing ethnic groups in society. Woodward (1999) argues that the security dilemma does cause intrastate conflict under certain structural conditions. The three main structures that drive security dilemmas and breed conflicts are; lack of national majority, anarchy, and deprivation (Woodward 1999, 85). Under such a structure, political leaders become predatory and are likely to use the security dilemma to spark civil conflict. The use of community identification and the social ramifications of identity can be quite profitable to the leadership of ethnic groups. Posen (1993) argues that the collapse of governments makes the security dilemma more acute. Posen (1993) applied the security dilemma theory to ethnic conflict study, applying the theory as 6 a means of understanding ethnic conflict behavior in situations of collapsing regimes, or what he terms “emerging anarchy”, (1993, 27). Posen assumes that in a situation of regime collapse, security is the first concern of all groups located in the state; hence the security dilemma is a grave concern. What makes one side more secure makes another side feel less secure and feel that it is necessary to increase its strength, which in turn makes the original group less secure. In the end, the actions that made the first group secure have made it less secure and the reaction of other groups to the first group will only lead to a response from the original group which will make them less secure. The ethnic security dilemma, then, is the result of one group trying to take control of the state and causing all groups to be less secure. This is because the ethnic competition within a state is for the control of the government or state and, where ethnic politics are primary; it is essentially a contest for domination. Given these theoretical insights we might expect economic aspects of globalization and westernization to increase conflict behavior and cultural aspects to decrease conflict behavior. This would mean that globalization should be more likely to increase conflict and westernization less likely, as globalization is primarily about economic development. However, there are both cultural and economic aspects to both of these factors. Globalization and Westernization Revisited We assert that globalization is a multifaceted phenomena based upon ultimately on market principles, specifically those of free market capitalism. Markets are neither kind nor fair, instead they are hard and sometimes unfair, yet the price setting mechanism markets bring is hard to improve upon. In this process there are winners and losers, public, private and social. The state may gain revenue but loose control of export control as newly powerful exporters capture parts of the state. Alternatively, traditional elites may lose power and foment social discord. Ethnic groups who are traditionally disadvantaged may either be helped or hurt by globalization and press for a more equitable share of the states resources or they may gain power and attempt to repress former oppressors. These and other per numerations, based on ethnic, regional and religious tensions can be exacerbated by globalization and westernization. The end result may be ethnic conflict and/or civil war. The extant literature has delved into the many aspects of ethnic conflict/civil war but this same literature has not investigated the role that globalization defined as we do above can affect ethnic conflict/civil war. Furthermore the literature has not examined the same question in light of westernization. Our primary research question is: do globalization and/or westernization affect conflict behavior, either singularly or in combination. Hypotheses Our research expectations from which our hypotheses are derived are: 1) Globalization has an influence on ethnic conflict/civil war; 2) Westernization has an influence on ethnic conflict/civil war. From these expectations we posit the following hypotheses. G: Globalization affects the incidence and scope of ethnic conflict/civil war. The first four hypotheses are based in part on the idea of cultural engagement. States and societies that are engaged in the international community are less likely to be conflict prone. It can be argued that engagement of states in international affairs (treaties, diplomacy) makes the state less likely to engage in conflict behavior with its population. It is also arguable that engagement of the population internationally makes it less likely to engage in open conflict. 7 G1: Participation in Treaties of Weights and Measures decreases the magnitude of ethnic conflict/civil war. G2: The number of International Non-Governmental Organizations a country belongs to decreases the magnitude of ethnic conflict/civil war. G3: The number of Inter-Governmental Organizations a country belongs to decreases the magnitude of ethnic conflict/civil war. G4: The number of foreign embassies present in a country decreases the magnitude of ethnic/conflict civil war. The last three globalization hypotheses relate to negative economic aspects of globalization. We argue that increases of direct foreign investment lead to increased conflict because of inequality in the distribution of benefits from this investment. Benefit of investment regularly supports economic and political disempowerment of some parts of the society, in turn fueling conflict behavior. Negative balance of payments for income, service, imports and exports often force states to take economic action that is detrimental to society (the lack of a hypothesis for import/export balance of payments will be explained in data and modeling section of this paper). Disproportionately these detrimental policies affect groups that the state finds less desirable or from which the state believes it receives less political support. G5: The inflow of Foreign Direct Investment as a percentage of GDP increases the magnitude of ethnic conflict/civil war. G6: A negative balance of payments for income increases the magnitude of ethnic conflict/civil war. G7: A negative balance of payments for services increases the magnitude of ethnic conflict/civil war. W: Westernization affects the incidence and scope of ethnic conflict/civil war. Economic impacts vary between countries, but there are some assumptions about the well-being of a society that remain in play regardless of whether or not assistance comes with Western social, political, and religious values attached. However, we feel that increased military aid is given as often for states that are trying to increase their internal dominance as for states that are attempting to buttress their defense of delineated territory. W1: The greater the amount of trade with the West a country has decreases the magnitude of ethnic conflict/civil war. W2: The greater the amount of American economic aid a country receives decreases the magnitude of ethnic conflict/civil war. W3: The greater the amount of American military aid a country receives increases the magnitude of ethnic conflict/civil war. W4: The greater the amount of total Western aid a country receives decreases the magnitude of ethnic conflict/civil war. The final four hypotheses rely on value change in a society. Value change can occur as a result of cultural exchange. As values change based on western ideas, the reliance on conflict as a means of negative economic, political and social expression diminishes. Increased interaction with the west increases the opportunity for values to move across borders and across ethnic lines that do not favor open and mass conflict behavior. Of course we recognize the popular media conception of the day that western values are responsible for the demise of many grand civilizations. We also recognize that certain groups in the world are flatly and blatantly anti-west and have as their greatest desire the destruction of everything western (one need only look at groups such as the 8 Taliban to confirm this view exists). But, as a general rule of thumb, we believe that less conflict will result from greater cultural exchange between the western world and the rest of the world. W5: The greater the number of Western NGO’s a country hold membership in decreases the magnitude of ethnic conflict/civil war. W6: The number of Western embassies in a country decreases the magnitude of ethnic conflict/civil war. W7: The number of students attending Western educational institutions decreases the magnitude of ethnic conflict/civil war. W8: The number of tourists from the USA and Europe decreases the magnitude of ethnic conflict/civil war. Data and Models Testing our hypotheses requires the use of data from multiple sources. We examined several sources of data and merged data to form a unique dataset. Our dataset examines 115 countries. These 115 countries all have at least one ethnic minority group that is politically active. While our preference would be to conduct a cross-sectional time-series analysis of ethnic conflict in these 115 countries, data issues kept this from being possible. We do however examine each of these countries in 6 years (1995-2000). This makes our unit of analysis a country-year. This provides us with 690 total cases. The dependent concept in our study is ethnic conflict. Ethnic conflict takes on two distinct forms. One is protest behavior, behavior designed to influence government to change policy or make new policy. The second is rebellion, a hostile militarized attempt to change the government (Saideman, Lanoue, Campenni and Stanton, 2002). We employ two variables—rebellion and protest—taken from the Minorities at Risk (MAR) data1. Rebellion and Protest are group specific for each country in each year of the MAR data. We took an average of the level of rebellion and the level of protest in each country in each of the six years in our data. The following tables (Table 1 and Table 2) show the frequency distribution for each of these dependent variables. Table 1 indicates the level of measurement of protest is ordinal. The median response is found in the category of symbolic opposition, the modal category of demonstration is less than 10K. This indicates more countries experienced a demonstration of at less than 10,000 people as their average level of protest in a given year than experienced any other single form of protest in a given year between 1995 and 2000. Table 2 shows the modal case to be, none reported. The median value for rebellion is also, none reported. Ethnic rebellion is a rare event. In most countries, in most years ethnic rebellion simply does not occur. This makes any explanation of ethnic rebellion behavior difficult, but it also makes it more fruitful. Our primary independent variables dealing with globalization and westernization factors come from two datasets. The first dataset is the Globalization Comparative Panel Dataset, 1975-1995 and the second is the Westernization Comparative Panel Dataset, 1975-1995. Both of these datasets are available through the Inter-University Consortium for Political and Social Research (ICPSR)2. These datasets are measured in five year panels. Our dependent variable data and country year construction is for the years 1995 through 2000. For estimation of the relationship, 1 The MAR is archived at: www.cidcm.umd.edu/inscr/mar.html access to this data is provided by a downloadable program (MARGene) located at: www.cidcm.umd.edu/inscr/mar/margene.htm. 2 These datasets can be found at: www.icpsr.umich.edu/access/index/html. 9 we took the data for each country for the year 1995 and applied it to each country for the years 1995 through 2000. While this does not provide the best possible estimation, we felt this to be stronger empirically and statistically than creating a static growth rate and extrapolating to create data for the years 1996 through 2000. Table 1: Average Level of Protest Response Frequency Percent Valid Percent None Reported Verbal Opposition Symbolic Opposition Demonstration Less than 10K Demonstration Less than 100K Demonstration More than 100K Totals Missing Totals 157 22.8 23.1 Cumulative Percent 23.1 84 12.2 12.4 35.4 175 25.4 25.7 61.2 190 27.5 27.9 89.1 55 8.0 8.1 97.2 19 2.8 2.8 100.0 680 10 690 98.6 1.4 100.0 100.0 Table 2: Average Level of Rebellion Response Frequency Percent Valid Percent None Reported Political Banditry Campaigns of Terrorism Local Rebellion Small-scale Guerilla Activity Intermediate Guerilla Activity Large-scale Guerrilla Activity Protracted Civil War Totals Missing Totals 422 60 61.2 8.7 62.3 8.9 Cumulative Percent 62.3 71.2 32 4.6 4.7 75.9 37 5.4 5.5 81.4 46 6.7 6.8 88.2 19 2.8 2.8 91.0 29 4.2 4.3 95.3 32 4.6 4.7 100.0 677 13 690 98.1 1.9 100.0 100.0 There were many variables that could be used to test our hypotheses, we chose based on the strength of the overall model and on issues of covariation and autocorrelation. Where possible we tried to include all variables in a subset, but this was not always possible. For instance, there are three variables that measure balance of payments, one each for income, services and imports/exports. However, we could not include all three because of covariation and autocorrelation issues without mathematical distortion of the values that would have raised issues of their real causal relation with ethnic conflict. In cases such as this one the level of covariation and autocorrelation was tested to determine which individual variable or variables inclusion in the model was the source of the problem. In the example cited, balance of payment for imports/exports was the source of the problem and was removed from consideration. This does 10 not mean that we feel trade issues are not important in studying globalization; a control variable exists in our models that scale the openness of trade for each country in each year of the study. The following variables are the independent variables in our models: Globalization Independent Variables Weight/Measure is a variable that indicates the percentage of overall weights and measures treaties that a country is party to in 1995. Non-Governmental Organization measures the percentage of NGOs that a country was a member of or that citizens of a country were a member of in 1995. International Organization measures the percentage of governmental international organizations that a state was a member of in 1995. Embassy represents the total percentage of possible embassies a country had in 1995, the possible total is twice the number of countries recognized in that year. Foreign Direct Investment represents the proportion of the country’s GDP comprised of foreign direct investments in U.S. dollars. The resulting proportion is divided by 10,000 to facilitate use of the coefficient (probabilities are unaffected). Balance of Payments Income is the percentage of GDP comprised of wage and benefit payments and income investments in U.S. dollars. Balance of Payments Services represents the percentage of the GDP made up of sale, barter, gift or grants of services in U.S. dollars. Westernization Independent Variables Trade with West counts the total imports and exports with western countries in billions of U.S. dollars standardized by the GDP of the country. American Economic Aid measures total economic aid from the U.S. to a country standardized by the GDP of the country. American Military Aid is the total military aid from the U.S. to a country standardized by the GDP of the country. Western Overseas Direct Aid is the official total of western development and welfare aid for development in U.S. dollars and standardized by the GDP of the country. Western NGOs measures the percentage of western based NGOs that citizens of a country or the government of the country are members of in 1995. Western Embassies counts the total number of western state embassies present in a country. Students number of students from a country attending western universities standardized by the population of the country. 11 Tourists counts the number of tourists from Europe and the U.S. standardized by the population of the country. No study is complete without consideration of factors that are generally found to contribute to the dependent variable in prior research. Also we must include variables that act as experimental controls, as we are not able to conduct our research in a clean laboratory. We include Gross Domestic Product measured in billions of U.S. dollars, Population (in millions) of country in the given year, and Group Concentration (the average spatial concentration of ethnic groups in a country in a given year). Three economic measures are included that are important to understanding the effects of globalization and westernization. These are: Economic Freedom a measure of the overall economic freedom of a country. Scores range from total economic freedom (1), characterized by a free market with little government involvement and regulation, to repressed (4); Trade Policy tariffs a country levies against imports and exports, based on World Bank Data or on a country’s average tariff rates or from revenue raised from tariffs. The values range from 1 (very low) a tariff rate of less than or equal to 2.5 % to 5 (very high) a tariff rate of over 20 %; Property Rights measures the ability for individuals to accumulate property in a country. The values range from 1 (very high), where individuals are guaranteed the right to private property, to 5 (very low) meaning that the state has outlawed private property or that the country is experiencing such chaos that no possibility of protecting private property rights exists. Three measures of differences between majority populations and minority ethnic group populations are included. The first is an index of average cultural differentials between groups in a state, which looks at how much cultural difference exists between ethnic minority groups and the majority population. The second is an index of economic differentials, which measures whether ethnic minority groups are economically advantaged or disadvantaged (and to what extent) compared with the majority population. The final variable used is an index of average political differentials measuring the extent of political advantage or disadvantage of ethnic minority groups in comparison to the majority population.3 Finally, to ensure that fixed and random effects are controlled for in our model, we include dummy variables for each year in the dataset and a dummy for whether or not the country in question is part of the global north or global south. Wald testing of correlation preempted us from including a dummy for each individual country. But, we believe that it is important to consider whether or not a country is considered to be part of the industrialized, developed global north, or part of the under-industrialized, developing global south. Countries in the global south have different circumstances of economic and political importance than do countries in the global north. 91 of the 115 countries in our dataset are found in the global south (with six cases for each country in the data set, this represents 79.1% of all cases in our data). We do not have sufficient time intervals in the data to consider creating a time-series model. This left us the option of a straight snap-shot test or a panel study. Because we have a continuous time 3 We realize that many readers are wondering why we do not include a measure of either the form of government (presidential, parliamentary, mixed) or type of government (democratic, autocratic, transitional). We are not measuring something that supports consideration of the form of government. As for type of government, the control variable “economic freedom” considers type of government as one element in its scaling, also a quick check of an autocracy-democracy variable found it to be statistically insignificant when added to the models. 12 line, we chose the former and included dummies for each year to account for random effects that might occur in the data due to covering six years. The models are maximum likelihood estimators for ordinal data (ordered logistical regressions). We ran one model for protest and one model for rebellion. To determine the best specification of the models using the variables incorporated in our dataset, we employed Wald testing to ensure that inclusions of variables did not produce coefficients simultaneously equal to zero, and used differences in BIC’ (Bayesian Information Criterion (prime)) to determine the best fit of variables in the model. The BIC’ for the model containing all the variables was smaller than the BIC’ for any of the models with one or more variables removed, indicating that the full model is the best fit. Findings Tables 3 (Globalization) and 4 (Westernization) contain the findings for our models. Only Table 4 displays results for the control variable for the year (only the year 1995 was statistically significant at the .10 level and only for Rebellion). Since the models are MLE models, the coefficients do not equal the amount of change caused in the dependent variable by a one unit change in the independent variable. Instead they represent a value that can be placed in a standardization formula to explain how much likelihood there is of an increase in the value of the dependent variable if the value of the independent variable increases. After discussing the actual results of the models, we will turn to a discussion of the real effect of the independent variables that are statistically significant on the dependent variables. For protest resulting from globalization variables, the Log Ratio Chi-Square value is 158.65 and is significant at the .000 level. Given the normal distribution of the LR Chi-square we can use the Cragg and Uhler R-square to explain variance in the dependent variable explained by the inclusion of the independent variables in the model. The Cragg and Uhler R-square value is .267, indicating that the inclusion of the variables in this model explains nearly 27% of the overall variation of protest in this model. The results for rebellion as the dependent variable in the model yields a Log Ratio Chi-Square value of 125.71, significant at the .000 level. The Cragg and Uhler R-Square value is .235, indicating that approximately 23.5% of all variation in rebellion is explained by the inclusion of the independent variables in this model. For protest, 3 of the globalization variables are statistically significant and overall 8 variables in the model are statistically significant. For rebellion, 4 of the globalization variables are significant and overall 10 of the variables are significant. In relation to our hypotheses the findings give us mixed results. 6 of the globalization factors produced statistically significant results for one or both forms of ethnic conflict. But, four of these results are in the opposite direction of our hypothesis—most notably the increase in percentage of embassies actually increases the level of both protest and rebellion. 13 Table 3. Results for Globalization Variable Protest Rebellion -.0022 -.0098** Weights/Measures .0028 .0034 .0013 .0785*** Non-Governmental .0161 .0234 Organizations -.0552* -.0085 International Organizations .0304 .0367 .0332*** .0213* Embassies .0104 .0128 .0074 .0159** Foreign Direct Investment .0071 .0071 .0079* .0084 Balance of Payments Income .0051 .0086 -.0058 -.0002 Balance of Payments Services .0087 .0110 -.0002 -.0012** GDP .0001 .0005 .0374*** .0015** Population .0008 .0006 .1758* .1084 Group Concentration .1069 .1307 .1752 1.085*** Economic Freedom .2321 .2892 .2169** .1308 Trade Policy .1037 .1332 -.4627** -.2951 Property Rights .1572 .1886 .4551*** .1719 Cultural Differences .1116 .1396 -.0537 -.2329* Economic Differences .0745 .0913 .0808 .2549** Political Differences .0846 .1036 .1856 1.398** Global South .3181 .4421 N for Protest = 511, N for Rebellion = 509 *p>.1, **p>.05, ***p>.01 Std. Error in italics An increase in the percentage of weights and measures treaties that a country signs has no affect on protest, but does show a lowering effect on the scope of rebellion. An increase in the number of NGOs that citizens or the state belong to shows no effect on protest, it does show an increasing effect on the scope of rebellion. An increasing in membership in IOs shows a decreasing effect on protest, but no effect on rebellion. Increasing levels of Foreign Direct Investment has no relation with protest but does increase rebellion. Negative balance of payment of income leads to lower levels of protest, but has no relation to rebellion. Balance of payment of services has no effect on either form of protest. As for our hypotheses, these results support our hypotheses on weights and measures, international organization membership, and foreign direct investment. These results do not support our hypotheses on NGOs, embassies, or balance of payments. Fuller attention to interpreting the results will be given in our conclusions. As for the control elements of the model, population, group concentration, trade policy, property rights, and cultural differences were statistically significant in relation to protest. There are some surprises in the relationships indicated by coefficients for these variables. It is mildly surprising 14 that economic and political differences were not significant in relation to protest, as both are statistically significant in relation to rebellion. However, it is very surprising that as the value of property rights increases (indicating that property rights are lower) we see an accompanying decrease in protest, this is at least counterintuitive and we will return to this in the conclusions. In relation to rebellion, GDP, population, economic freedom, economic differences, political differences, and being in the global south are all statistically significant. There do not appear to be any surprises in the findings regarding rebellion. For instance, as GDP increases, rebellion decreases, as political differences increase, rebellion increases. In terms of the substance of these findings, we turn to the use of post-estimation evaluation of standardized coefficients.4 Table 4a shows how much a one standard deviation increase in the standardized value of the statistically significant variables in the globalization model will change the value of protest based on full XY standardization of the logit coefficient. Table 4b shows the same information for rebellion. Table 4a: Effect of One Standard Deviation Increase on Protest (Globalization) Variable Change in Protest International Organizations -.729 Embassies 1.91 Balance of Payment Income 1.16 Population 1.85 Group Concentration 1.19 Trade Policy 1.29 Property Rights -.622 Cultural Differences 1.51 The values in the Change in Protest column indicate how much we can expect protest to increase or decrease if the given independent variable increases in value by one standard deviation. This is somewhat arbitrary considering that protest is measured ordinally, but useful in showing general patterns. For instance, if the percentage of IOs that a country belongs to increases one standard deviation we can expect to see a nearly one point drop in the value of protest. However, if the percentage of embassies increases one standard deviation we can expect protest to increase nearly 2 points. Table 4b: Effect of One Standard Deviation Increase on Rebellion (Globalization) Variable Change in Rebellion Weights and Measures -.671 Non-Governmental Organizations 3.09 Embassies 1.51 Foreign Direct Investment 1.21 GDP -.285 Population 1.26 Economic Freedom 2.33 Economic Differences -.676 Political Differences 1.41 Global South 1.83 Similarly, in Table 4b, we can note that a one standard deviation increase in percentage of weights and measures treaty recognition reduces rebellion by nearly 1 point. If the economic freedom score increases 4 Post-estimation evaluations were performed using the SPOST commands created by J. Scott Long and Jeremy Freese for use with STATA. These commands can be downloaded into stata directly using that program’s net search function, or you can find them archived at: www.indiana.edu/~jslsoc/stata. 15 (remember that this represent greater economic repression) one standard deviation we can expect a 2.33 point increase in rebellion. Also, we can note that just being in the global south can lead to a nearly 2 point increase in the level of rebellion. We now turn our attention to westernization. Table 5 gives the results for the westernization model in relation to protest and rebellion. For protest resulting from westernization variables, the Log Ratio Chi-Square value is 99.45 and is significant at the .000 level. Given the normal distribution of the LR Chi-square we can use the Cragg and Uhler R-square to explain variance in the dependent variable explained by the inclusion of the independent variables in the model. The Cragg and Uhler R-square value is .231, indicating that the inclusion of the variables in this model explains nearly 23.1% of the overall variation of protest in this model. The results for rebellion as the dependent variable in the model yields a Log Ratio Chi-Square value of 147.50, significant at the .000 level. The Cragg and Uhler R-Square value is .344, indicating that approximately 34.4% of all variation in rebellion is explained by the inclusion of the independent variables in this model. For protest, 2 of the westernization variables are statistically significant and overall 8 variables in the model are statistically significant. For rebellion, 7 of the westernization variables are significant and overall 13 of the variables are significant. In relation to our hypotheses these findings also give us mixed results. 7 of the westernization factors produced statistically significant results for one or both forms of ethnic conflict. But, of these results 4 are in the opposite direction of our hypothesis—most notably the relationship between western trade and conflict and the relationship of western embassies with conflict. Included in the reported results is the year 1995. Only in this one year did the results show a correlation between the time period and conflict behavior in the westernization model. It is interesting to note that the correlation is with rebellion and that no relationship exists with protest in the model. We hypothesized that as western trade increased we would see a decrease in conflict behavior. However, in relation to both protest and rebellion we see an increase in conflict behavior when there is an increase in the percentage of GDP represented by trade with western states. This is an interesting finding that will be discussed at greater length in the conclusions. We also hypothesized that as the number of western embassies in country and state embassies in western countries increased a decrease in conflict would result. This hypothesis has been shown false for both protest and rebellion. We do find support for our hypotheses in relation to rebellion when we consider western overseas development aid, western NGO membership, and students attending western universities. The strongest of these is the relationship with students attending western universities, a sign that cultural engagement does contribute to lowering conflict. The relationships do not exist in the protest model. The findings show a negative relationship between increased western tourism and rebellion, but no relationship with protest. We find this of particular interest considering the findings regarding students attending western universities and will discuss this in more detail in the conclusions. 16 Table 5. Results for Westernization Variables Protest Rebellion .0006** .0007*** Western Trade .0003 .0002 -.4838 1.044** American Economic Aid .4285 .4857 .4002 -.6649 American Military Aid .3907 .4785 -.0136 -.0738* Western Overseas Development .0482 .0539 Aid -.0003 -.0516** Western NGOs .0029 .0186 .0192*** .0847*** Western Embassies .0055 .0138 -.0040 -.1696*** Students .0161 .0404 -.00004 .0002** Tourists .00004 .0001 -.0004** -.0006** GDP .0002 .0003 .0024*** .0005 Population .0007 .0007 .4671*** .9741*** Group Concentration .1285 .2033 -.1564 .1035 Economic Freedom .2419 .3417 .0958 -.1946 Trade Policy .1124 .1539 -.3538** -.6503** Property Rights .1792 .2661 .3014** .2084 Cultural Differences .1378 .2190 -.1123 -.2381** Economic Differences .0825 .1211 .2937** .6733*** Political Differences .1035 .1565 .4490 .8473** Year 1995 .3264 .4285 -.1151 .4311 Global South .3102 .5395 N for Protest = 396, N for Rebellion = 394 *p>.1, **p>.05, ***p>.01 Std. Error in italics GDP, property rights, group concentration, and political differences were found to be statistically significant in relation to both forms of conflict. The direction of the relationships offer no surprises. As GDP increases conflict decreases, as property rights deteriorate conflict increases, where ethnic minorities are more spatially concentrated conflict increases, when political differences are increased conflict increases. In relation to protest, increasing cultural difference was found to increase conflict. In relation to rebellion, increasing economic difference was found to increase conflict. Also, in the year 1995 we see a increase in rebellion. Table 6a shows how much a one standard deviation increase in the standardized value of the statistically significant variables in the globalization model will change the value of protest based 17 on full XY standardization of the logit coefficient. Table 6b shows the same information for rebellion. Table 6a: Effect of One Standard Deviation Increase on Protest (Westernization) Variable Change in Protest Western Trade 1.28 Western Embassies 1.61 GDP -.752 Population 1.43 Group Concentration 1.60 Property Rights -.704 Cultural Differences 1.30 Political Differences 1.46 The results in table 6a indicate that if you increase western trade by one standard deviation, protest should increase 1.28 points on its scale. Again, protest and rebellion are ordinal scales so the exactness of these results is of little value, however the general trends these results show are important. These results also show that as property rights deteriorate, protest will increase by .704 or nearly 1 point for each standard deviation increase in the value of property rights. In table 6b the results indicate that the single biggest change in rebellion can be created by increasing the percentage of western embassies by one standard deviation. If the increase occurs we should see an 8 point increase in rebellion (not surprising considering that a one standard deviation increase in western embassies is nearly 25%). It also shows that a one standard deviation increase (4.3%) in western ODA should lead to an decrease in rebellion of nearly 1 point, while an increase in western trade of one standard deviation (an infinitesimal percentage) should lead to a nearly 2 point increase in the level of rebellion. This finding will be discussed at greater length in the conclusions. Table 6b: Effect of One Standard Deviation Increase on Rebellion (Westernization) Variable Change in Rebellion Western Trade 1.73 American Economic Aid 1.64 Western ODA -.729 Western NGOs -.0002 Western Embassies 8.07 Students -.199 Tourists 2.16 GDP -.636 Group Concentration 2.63 Property Rights .526 Economic Differences -.676 Political Differences 2.37 Year 1995 1.35 Conclusions The first issue to address in our conclusions is data. This project is in its early stages and data collection has become the major focus. As stated earlier, much of the data used for the independent variables is constant across years. As more accurate data by country and year is collected the results should change. Whether these changes will be substantial remains to be seen. Second, we recognize that using the Minorities at Risk dataset to generate our country 18 years includes some selection bias. However, we still feel strongly that what selection bias does is exist is outweighed by the substantial number of countries that are included in the data. The second issue to address is exactly what we found. Tables 7a and 7b summarize our findings in relation to our hypotheses. In the globalization model we have significant findings in relation to 5 of the 7 hypotheses, and 3 of the hypotheses are supported by our findings. In the westernization model we have significant findings in relation to 7 hypotheses, but only 3 of the hypotheses are supported by our findings. Table 7a. Summary of Globalization Hypotheses Variable Hypothesis Protest Rebellion Overall Weights and Decreases Conflict + + Measures NGOs Decreases Conflict IOs Decreases Conflict + + Embassies Decreases Conflict Foreign Direct Increases Conflict + + Investment Balance of Payments Increases Conflict Income Balance of Payment Increases Conflict Services In protest, rebellion and overall columns, + is positive support for hypothesis, - is negative support for hypothesis, if blank no statistically significant relationship existed. Table 7b. Summary of Westernization Hypotheses Variable Hypothesis Protest Rebellion Overall Western Trade Decreases Conflict American Decreases Conflict Economic Aid American Increases Conflict Military Aid Western ODA Decreases Conflict + + Western NGOs Decreases Conflict + + Western Decreases Conflict Embassies Students Decreases Conflict + + Tourists Decreases Conflict In protest, rebellion and overall columns, + is positive support for hypothesis, - is negative support for hypothesis, if blank no statistically significant relationship existed. It is interesting to note that both of our models go further in explaining ethnic rebellion than ethnic protest. We had five statistically significant findings in relation to protest, and 11 statistically significant findings in relation to rebellion. This does lend credence to the ethnic security dilemma theory, as this theory has shown itself in previous research to be a better explanation of violent conflict behavior than non-violent behavior. The results suggest a mixed set of findings regarding both economic and cultural engagement theories of globalization (Table 7a). Foreign direct investment appears to incite conflict behavior, but negative balance of payments for income calms conflict behavior. Culturally, increased 19 contact via embassies and NGOs only leads to increased conflict behavior, but increased participation in weights and measures treaties and IOs calms conflict. The results also offer a mixed bag in regard to both economic and cultural theories of westernization (Table 7b). Western trade increases conflict, while Western ODA calms conflict. American economic aid appears to increase conflict. Contrary to globalization, memberships in western NGOs leads to decreased conflict. But western embassies increase conflict. Students studying in the west decrease conflict, but tourist from the west visiting countries tends to increase conflict. At this point we turn to some of the more interesting overall findings in the paper. We will look first at economic issues, then turn to cultural issues, and finally to interesting findings from control issues we used. In globalization we see that foreign direct investment does indeed lead to increased magnitude of rebellion. We find this to not be surprising considering this type of investment heavily favors economically advantaged segments of society and leave many minority ethnic groups with diminished economic opportunities. However, we hypothesized only partially correct that if western countries provided economic and social development aid (Western ODA and American Economic Aid) that the engagement would alleviate conflict. Apparently western aid in general is good for countries seeking to lower conflict levels, but the appearance of American aid—even economic in nature—apparently carries with it negative baggage that leads to increased magnitude of conflict. But, not all western economic activity is appreciated, much like the foreign direct investment of globalization, increased western trade leads to increased ethnic conflict. Three interesting questions arise when we consider the more cultural engagement aspects of globalization and westernization. One, why does an increase in the percentage of embassies in a country and that the country sends abroad related to an increase in the magnitude of ethnic conflict. Two, why does increased membership in non-governmental organizations in general lead to increased ethnic conflict, while increased membership in western based NGOs leads to a decrease in conflict (specifically a decrease in ethnic rebellion—the most violent form of conflict)? Finally, what is the difference between students traveling abroad and tourists from abroad visiting a country? We are at a loss to explain the findings regarding embassies in relation to conflict. We find nothing to suggest a mathematical anomaly. We also find nothing in the literature to suggest that increased political engagement (which we believe embassies represent) should lead to increased levels of conflict behavior. Anyone who pays attention to the world events will quickly recognize that foreign embassies serve as focal points for demonstrations and attacks by citizens who hold the government and/or people of the foreign state represented accountable for issues in their own country. But, these events are rare and rarely the sole domain of ethnic minority groups, being broad based when they do occur. In the end, would anyone recommend to a government that they should not place embassies in developing countries at all because it might lead to increased levels of ethnic conflict? Membership in NGOs is generally seen as a sign of a maturing citizenship that is globally aware and shifting in values from self-preservation and economic gain to increased social awareness. But why did we find that increased memberships in NGOs in general increases conflict levels, but increased membership in western based NGOs decreases conflict levels? Is there a fundamental difference in the scope and nature of non-western based NGOs and western-based NGOs? In 20 fact, how many non-western based NGOs actually exist? This is another puzzling finding, not a mathematical anomaly, and will require more research to explain. But it would seem that there must be something in the norms and traditions of western based NGOs that makes membership in them likely to decrease the level of conflict. Also, interestingly the findings regarding NGOs showed them to have no significant affect on protest, only in relation to rebellion was the relationship significant. The question of foreign students studying in the west versus western tourists traveling in the developing world is the easiest of the puzzling results to clarify. Tourists do not engage culturally unless they are on extended vacations. Tourists stay in certain areas and often have no real immersion in the society or real contact with citizens of the country they are visiting. On the other side of this equation, students do become immersed in the culture of the country where they attend school. Students take cultural values and lessons with them if and when they return to their home country. Apparently engagement in western cultural values leads to a decrease in the magnitude of conflict behavior. To sum up our efforts, we have begun an interesting project that seeks to find out if globalization factors or westernization factors are more important to understanding ethnic conflict behavior. What we have found is that both are important to understanding ethnic conflict behavior and often similar factors from globalization and westernization have divergent effects on ethnic conflict. 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