Could Mali’s coup be beneficial for economic development in the north African state? It’s too soon to tell the political proclivities of the new junta, however, with the putsch executed with what was apparently minimal violence the government has one ideological direction in which it could move to shore-up investments in the nation. We revisit a post we made in 2011 -
As rumbling of an impending military coup in Greece continues to grow, we visit a 2004 paper by Dr. Catherine Duggan of Harvard Business School in which she asks the question “How do coups affect private investment?” While conventional wisdom indicates a military intervention into civil government tends to depress investments in the country in question, Dr. Duggan finds that - depending on the coup type - a net benefit can often be realized. Duggan’s research indicates a bloodless coup by a right-oriented junta tracks an average 7.7% increase in aggregate private investments as a percent of GDP.