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The Institutional Foundations Of Religious Politics: Evidence From Indonesia

Author

Listed:
  • Samuel Bazzi

    (Boston University & NBER)

  • Gabriel Koehler-Derrick
  • Benjamin Marx
Abstract
This paper explores the foundations of religious influence in politics and society. We show that an important Islamic institution fostered the entrenchment of Islamism at a critical juncture in Indonesia, the world’s largest Muslim country. In the early 1960s, rural elites transferred large amounts of land into waqf—inalienable charitable trusts in Islamic law—to avoid expropriation by the state. Regions facing a greater threat of expropriation exhibit more prevalent waqf land and Islamic institutions endowed as such, including mosques and religious schools. These endowments provided conservative forces with the capital needed to promote Islamist ideology and mobilize against the secular state. We identify lasting effects of the transfers on the size of the religious sector, electoral support for Islamist parties, and the adoption of local sharia laws. These effects are shaped by greater demand for religion in government but not by greater piety among the electorate. Waqf assets also impose costs on the local economy, particularly in agriculture where these endowments are associated with lower productivity. Overall, our findings shed new light on the origins and consequences of Islamism.

Suggested Citation

  • Samuel Bazzi & Gabriel Koehler-Derrick & Benjamin Marx, 2019. "The Institutional Foundations Of Religious Politics: Evidence From Indonesia," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-330, Boston University - Department of Economics.
    • Handle: RePEc:bos:iedwpr:dp-330
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    References listed on IDEAS

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    Keywords

    :;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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