Stuck in a Fragility Trap: The Case of the Central African Republic Civil War

This study utilizes the synthetic control method to assess the economic consequences of the ongoing civil war in the Central African Republic since December 2012. Drawing on a donor pool of low-income and lower-middle-income countries, it constructs a synthetic counterfactual to depict the economic trajectory in the absence of conflict. The analysis reveals a significant decline in national gross domestic product (GDP) per capita, estimated between 45.3 percent and 47.8 percent over a decade of conflict, resulting in a cumulative GDP loss of US$29.7 billion to US$32.4 billion (purchasing power parity, PPP, adjusted). Two model specifications are employed, one using pre-treatment outcomes and the other integrating external covariates. Robustness checks support the findings, indicating a minimum 10-year decline of 35.3 percent in GDP per capita. Even considering the 2003 coup, this civil war has the most detrimental economic impact. The analysis remains robust when incorporating GDP data from remote sensing sources. These effects align with the fragility trap concept, portraying one of the highest economic impacts of civil conflict in terms of relative GDP per capita decline.