Does cash induce corruption in DDR programmes? Unpacking the experience from Nepal

Drawing on empirical evidence from fieldwork conducted in Nepal between December 2012 and March 2013, this paper examines the nexus between cash and corruption in the management of the Maoists arms and armies in Nepal. The enquiry reveals that the public resources that funded cantonments and the cash offered to combatants as a retirement package were subject to corruption in the cantonments set up to house the Maoists People's Liberation Army (PLA) fighters. It argues that cash induced corruption in cantonments could be viewed as a typical form of the war economy as well as a phenomenon driven by an opportunity cost of combatants' participation and non-participation in the disarmament and reintegration programme. Finally this paper also discusses the factors which could potentially reduce corruption in cantonments.