Religious Leaders and Rule of Law in Pakistan: How Does it Influence Populism?

• In Event: Is Religion the Blind Spot of Populism?

Abstract

In this paper, we provide systematic evidence of how historical religious institutions affect the rule of law. In a difference-in-differences framework, we show that districts in Pakistan where the historical presence of religious institutions is higher, rule of law is worse. This deterioration is economically significant, persistent, and explained by the rise of populist religious leaders elected to office. We explain our findings with a model where populist religious leaders leverage their high legitimacy to run for office and influence Courts. Our estimate of the economy-wide losses attributed to land expropriation by these religious leaders through Courts is about 0.06 percent of GDP every year.

Authors

• Sultan Mehmood, University of Paris-Dauphine

• Avner Seror