Chapter

Do Conflicts Create Poverty Traps?: Asset Losses and Recovery for Displaced Households in Colombia

Ana María Ibáñez and Andrés Moya

in The Economics of Crime

Published by University of Chicago Press

Published in print September 2010 | ISBN: 9780226153742
Published online February 2013 | e-ISBN: 9780226153766 | DOI: http://dx.doi.org/10.7208/chicago/9780226153766.003.0005
Do Conflicts Create Poverty Traps?: Asset Losses and Recovery for Displaced Households in Colombia

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This chapter studies the costs of crime and violence by showing that in some cases the amount of insecurity is so high that households are displaced, inducing considerable asset losses. It explains this in the Colombian context, where a conflict of political origin has degenerated to a situation where the state no longer has exclusive control of violence in the area, which is what effectively happens in some impoverished urban areas in Latin America. This chapter collects both qualitative and quantitative evidence on the processes of asset losses and asset reaccumulation following an initial shock. The full recovery of the assets is relatively rare, that is, 75 percent of households do not recover their asset values, and becoming locked in low income trajectories is documented.

Keywords: crime; violence; insecurity; displaced households; asset losses; Latin America; asset reaccumulation; Colombia

Chapter.  15026 words.  Illustrated.

Subjects: Economic Development and Growth

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