Criminal groups govern millions worldwide. Even in strong states, gangs resolve disputes and provide security. Why do these duopolies of coercion emerge? In many cases, gangs fill vacuums of official order. If so, increasing state presence should crowd out criminal governance. In this paper, however, we show that state and gang rule are sometimes complements. In particular, gangs can deter state predation by keeping neighborhoods orderly and loyal. If true, increasing state presence could increase gang rule. We investigate in Medellín, Colombia. Criminal leaders told us they rule mainly to protect drug rents. We test gang responses to state presence using a geographic discontinuity. Internal border changes in 1987 assigned some blocks to be exogenously closer to state security for three decades. Gangs responded to closer state presence by increasing governance services, but primarily in neighborhoods with the greatest potential drug rents. This suggests new strategies for countering criminal governance.

Working Paper·Jan 30, 2024

Digital Information Provision and Behavior Change: Lessons from Six Experiments in East Africa

Raissa Fabregas, Michael Kremer, Matthew Lowes, Robert On, Giulia Zane
Topics: Development Economics, Technology & Innovation
Working Paper·Sep 20, 2023

Private Actions in the Presence of Externalities: The Health Impacts of Reducing Air Pollution Peaks but not Ambient Exposure

Susanna B. Berkouwer, Joshua Dean
Topics: Development Economics, Energy & Environment, Health care
Working Paper·Sep 11, 2023

The Intergenerational Transmission of Higher Education: Evidence from the 1973 Coup in Chile

Maria Angélica Bautista, Felipe González, Luis Martínez, Pablo Muñoz, Mounu Prem
Topics: Development Economics