Nepal has seen a large reduction in poverty over the period 1995-2010. This period roughly
coincides with the Maoist uprising which resulted in the abolition of the monarchy in 2008. So
was the post-conflict provision of economic resources to districts related to their involvement
in promoting the Maoist cause? We tackle this question combining theory and empirics. Our
model predicts that poorer districts are more likely to support the Maoists and in return they
get promised economic gains conditional on the Maoists prevailing post-conflict. Combining
data on conflict with consumption expenditure data from the Nepal Living Standards Survey
and data on foreign aid, we test these predictions. Our panel data estimates and our crosssectional
analysis consistently find strong support for our hypotheses.