The existing literature in social sciences and humanities analyzing root causes of sectarian and
religious conflicts focus mostly on micro-factors. The inability of market and state factors to
control sectarian conflict for last seven decades remains understudied by the contemporary literature. This article
aims at filling that gap and seeks to identify certain market and government failures that have implications on
sectarian and religious conflicts. More specifically, it identifies four market
failures namely asymmetries of information, externalities, equity and public
goods and three government failures, which include democracy failure,
bureaucratic failure and implementation failure. In contrast to the literature
shedding light on the impact and gravity of sectarian and religious violence
in the country, the purpose here remains to highlight important aspects of
public policy reforms for peace making and peace building. This article,
based on the aforementioned market and government failures, suggests a
whole new set of policy reforms.
1-Saranjam Muhammad Baig Assistant Professor,College of Economics and Political Science, Sultan Qaboos University, Muscat Oman.