The Shining Path of Peru: An Organizational Theory for Conflict

Violent political insurgencies display resilient structures that allow their growth and success. They must provide incentives to avoid internal rent-seeking among the members and, at the same time, discourage coalitions from undermining the direction and control of the insurgency. I study how insurgencies’ response to these trade-offs determines their political and military structures. A vertical and centralized hierarchy will prevail to minimize monitoring costs. However, a horizontal hierarchy will emerge within the insurgency to cede part of the insurgency surplus to solve their collective action problems and effectively coordinate violence. The evidence rests on the analysis of the Shining Path, the most radical face of the Communist revolution in the Western Hemisphere and a pioneer organization for the most recent insurgencies. I argue that the variation of this internal hierarchy played a significant role in its dramatic growth from a small group of students to a lethal terrorist organization with international outreach.