TY - BOOK AU - Sánchez Cuevas,Edgar Hernando TI - Fighting fire with aid: development assistance as counterinsurency tool. Evidence for Colombia T2 - Documentos CEDE SN - 1657-5334 U1 - 303.6 PY - 2018/// CY - Bogotá PB - Universidad de los Andes, Facultad de Economía, CEDE KW - Conflicto armado KW - Aspectos sociales KW - Colombia KW - Aspectos económicos KW - Asistencia Económica N1 - Incluye referencias bibliográficas N2 - I study the causal effect of the foreign aid for development assistance ?implemented by the U.S. Agency for International Development (USAID)? on the intensity of municipality-level armed conflict in Colombia, for the period 2009-2013. To address potential endogeneity biases, I use a Bartik-like instrument which exploits the spatial persistence of aid from USAID in Colombia. Specifically, I instrument foreign aid with the interaction between the United States GDP and municipality-level intent-to-treat indicators for the Malaria Eradication Campaigns (circa 1957). The results point out that foreign aid reduces the insurgency associated with left-wing guerrillas, especially FARC. However, foreign aid does not affect the violence associated with criminal gangs from right-wing paramilitary origins (BACRIM). I provide both quantitative and anecdotic evidence on two potential mechanisms behind my results: (i) Development programs raise the opportunity cost of fighting and; (ii) foreign aid improves the trust, and the information flows between civilians and the government UR - https://economia.uniandes.edu.co/components/com_booklibrary/ebooks/dcede2018-30.pdf ER -