Coalitions not Conflicts: Ethnicity, Political Institutions, and Expenditure in Africa

Scholars blame high levels of ethnic heterogeneity for many social and political ills, including poor economic growth, corruption, and policy gridlock. But it can be argued that, in seeking reelection, politicians will join multiethnic coalitions to pass policies in this endeavor. Further, government expenditure increases with coalition size, as each politician seeks policies that benefit his or her own constituents. Subnational data from Zambia, the use of which helps control for country-level factors hindering standard cross-national studies of fiscal politics, indicate that government spending increases with ethnic heterogeneity. This evidence challenges studies which ignore the incentives generated by political institutions and claim that ethnicity leads directly to undesirable outcomes.