World Bank. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author. They do not necessarily represent the views of the World Bank, its Executive Directors, or the countries they represent. Centre for the Study of African Economies.

Abstract: The optimal consumption growth rate for a group in a strictly political federation in a dual-population land is lower than that under partition if the group is wealthier and has a lower population growth rate than its counterpart. Even in such circumstances the group may economically benefit from joining a federation that facilitates technological transfer as long as the group’s initial technology is inferior to the hybrid. The group’s optimal consumption growth rate during a civil war is larger than those under partition and a strictly political federation if its rival’s warfare is mainly aimed at inflicting