Do Government Transfers Reduce Conflict?

How can we mitigate civil unrest before it results in the breakdown of social order? Not all forms of civil unrest escalate into violence, but why do some deteriorate and others do not?

Social conflicts have been solved through fiscal policy and the provision of public goods and services over the centuries. Data from India, too, show government expenditure on social services has had a significant effect on reducing riots across the country. These findings have important lessons for other countries where social order breaks down frequently, but large-scale conflict may be avoidable.