All Explainers
Explainer
LGIT Series • Paper 4

Political Economy of Permanent Grievance

Grievance has become a durable political asset. This paper develops a political-economy account of how grievance claims become capitalised, traded, and structurally insulated from resolution.

SDGs:
16
10
8

The 60-Second Version

Grievance has evolved from a signal of injustice into a capitalised political asset—one that can be invested, leveraged, and monetised.

Permanent grievance describes a condition where grievance claims are structurally insulated from empirical updating, institutional resolution, or legitimacy decay. The grievance persists not because the underlying wrong persists, but because resolution would destroy accumulated political and economic value.

This creates perverse incentives: those with grievance-based authority benefit from grievance persistence rather than grievance resolution. They become investors in a asset whose value depends on the problem never being solved.

Understanding grievance as political capital—not just moral claim—reveals why some grievances never decay and why well-intentioned interventions often fail.

How Grievance Gets Capitalised

Grievance claims become durable assets through four primary mechanisms:

Political Authority

Grievance claims converted to permanent decision-making power

Example: Advisory bodies, veto rights, consultation requirements that persist regardless of conditions

Regulatory Privilege

Grievance status creates preferential treatment in regulations

Example: Exemptions, carve-outs, and priority access that compound over time

Grievance-Indexed Markets

Economic value extracted through grievance positioning

Example: Consulting, training, compliance services that profit from grievance persistence

Reputational Leverage

Moral authority used as ongoing negotiating asset

Example: Accusation power that can damage opponents regardless of merit

Why This Matters

For Economic Analysis

Treating grievance as capital explains market dynamics that moral framings miss: why grievance industries grow, why resolution fails, why some claims never decay.

For Institutions

Understanding capitalisation dynamics helps design interventions that don't inadvertently increase the value of grievance persistence.

For Reform Efforts

Successful reform must address the economic incentives, not just the moral claims. You can't reason people out of positions that pay their salaries.

For Social Cohesion

Permanent grievance fragments society into competing grievance portfolios. Understanding this dynamic is essential to rebuilding shared institutions.

Part of the LGIT Series

Read the Paper

Explore the full political economy framework for understanding permanent grievance.

View Paper

Legitimacy Governance Program

Apply these frameworks in your institution through our pilot programs.

Learn More