empirical evidence exists that democracies never or rarely wage war against each other. However, several wars between democracies have taken place, historically, such as the Kargil War. Relevant issues of debate include whether sufficient data is available to statistically prove the theory and whether peace results in democracy (territorial peace theory) or vice versa. Economic norms theory Michael Mousseau's economic norms theory links economic conditions with institutions of governance and conflict, distinguishing personal clientelist economies from impersonal market-oriented ones, identifying the latter with permanent peace within and between nations. Throughout most of human history, societies have been based on personal relations: individuals in groups know each other and exchange favours. Today in most lower-income societies hierarchies of groups distribute wealth based on personal relationships among group leaders, a process often linked with clientelism and corruption. Michael Mousseau argues that in this kind of socio-economy conflict is always present, latent or overt, because individuals depend on their groups for physical and economic security and are thus loyal to their groups rather than their states, and because groups are in a constant state of conflict over access to state coffers. Through processes of bounded rationality, people are conditioned towards strong in-group identities and are easily swayed to fear outsiders, psychological predispositions that make possible sectarian violence, genocide, and terrorism. Market-oriented socio-economics are integrated not with personal ties but the impersonal force of the market where most individuals are economically dependent on trusting strangers in contracts enforced by the state. This creates loyalty to a state that enforces the rule of law and contracts impartially and reliably and provides equal protection in the freedom to contract – that is, liberal democracy. Wars cannot happen within or between nations with market-integrated economies because war requires the harming of others, and in these kinds of economies, everyone is always economically better off when others in the market are also better off, not worse off. Rather than fight, citizens in market-oriented socio-economies care deeply about everyone's rights and welfare, so they demand economic growth at home and economic cooperation and human rights abroad. Nations with market-oriented socio-economies tend to agree on global issues and not a single fatality has occurred in any dispute between them. Economic norms theory should not be confused with classical liberal theory. The latter assumes that markets are natural and that freer markets promote wealth. In contrast, Economic norms theory shows how