Economic Impact of Peace & Conflict

Economic development, business and peace are mutually reinforcing. Economic modelling and statistical analysis led by the IEP has demonstrated peace to be a key factor in determining wealth creation.

Peace advances the economic development of society by fostering conditions that are conducive to business and investment. At the same time, business can play a decisive role in building and strengthening peace through job and wealth creation.

Yet the value of peace to the world economy is poorly understood and rarely discussed outside of academia. A key objective of the Institute is to help raise awareness of the global cost of violence.
One of the major challenges in developing policies aimed at increasing peace is the difficulty of being able to accurately gauge the benefits that peace brings. Recognising this, the Institute for Economics and Peace (IEP) has developed a new and ground breaking methodology to estimate the cost of violence to the global economy, including calculations for 152 countries that detail the costs of thirteen different types of violence.

This deeper insight into the breakdown of national costs of violence allows for better targeting of development assistance and also enables national governments to more accurately assess the costs associated with violence and the likely benefits that would flow from improvements in peace.

In developing this methodology IEP uses the concept of ‘violence containment’ spending. IEP defines violence containment spending as economic activity that is related to the consequences or prevention of violence where the violence is directed against people or property.


The Economic Costs of Violence Containment

A new methodology that calculates the cost of preventing and containing violence in over 150 countries.
Download the full report: The Economic Costs of Violence Containment

 

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