Skip to main content Accessibility help
×
Hostname: page-component-78c5997874-dh8gc Total loading time: 0 Render date: 2024-11-05T13:19:13.083Z Has data issue: false hasContentIssue false

Chapter 2 - Armed Conflicts: The Economic Welfare Costs of Conflict

Published online by Cambridge University Press:  05 June 2014

S. Brock Blomberg
Affiliation:
Claremont McKenna College
Gregory D. Hess
Affiliation:
Claremont McKenna College
Bjørn Lomborg
Affiliation:
Copenhagen Business School
Get access

Summary

Introduction

Conflicts, of various sizes and purported purposes, cast a long and dark shadow on the lives of many and on the histories of nations and peoples. Theories of conflict abound – for wars between nations, internal civil conflicts, and terrorist operations – primarily based on national or group leaders convincing followers to take up a fight for some purpose, noble (to advance an idea, a religion, a culture, a form of government) or otherwise (to appropriate). While leaders, on occasion, do profit from conflict, they do so less often than they might ever imagine. Indeed, leaders, depending on institutional constraints, can separate the spoils of war (land, resources) from the dim costs of war.

The men and women who conduct the battles, however, can seldom avoid the costs of war, and so are fully saddled with the loss of life, limb, loved ones, livelihood, and way of life. Nor are the soldiers’ interests fully reflected in the interests of those who make the decision to initiate, continue or to change the course of battle. In his famous letter to his World War I commanding officer, Lt. Siegfried Sassoon of the Royal Welch Fusiliers, wrote:

I believe that the war upon which I entered as a war of defence and liberation has now become a war of agression [sic] and conquest. . . . I have seen and endured the sufferings of the troops and I can no longer be a party to prolonging these sufferings for ends which I believe to be evil and unjust. I am not protesting against the conduct of the war, but against the political errors and insincerities for which the fighting men are being sacrificed. On behalf of those who are suffering now, I make this protest against the deception which is being practised upon them; also I believe it may help to destroy the callous complacency with which the majority of those at home regard the continuance of agonies which they do not share and which they have not enough imagination to realise. July, 1917

Type
Chapter
Information
How Much Have Global Problems Cost the World?
A Scorecard from 1900 to 2050
, pp. 99 - 116
Publisher: Cambridge University Press
Print publication year: 2013

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alesina, A. and Spolaore, E. (2006) Conflict, defense spending, and the number of Nations. European Economic Review 50: 91–120.CrossRefGoogle Scholar
Barro, R. J. (2009) Rare disasters, asset prices, and welfare costs. American Economic Review 99: 243–264.CrossRefGoogle Scholar
Blanchard, O. J. (1985) Debts, deficits, and finite horizons. Journal of Political Economy 93: 223–247.CrossRefGoogle Scholar
Blomberg, S. B. and Hess, G. (2002) The temporal links between conflict and economic activity. Journal of Conflict Resolution 46: 74–90.CrossRefGoogle Scholar
Blomberg, S. B., Hess, G., and Thacker, S. (2012) The economic welfare cost: an empirical assessment. In: Garfinkel, M. R. and Skaperdas, S. (eds.), Oxford Handbook of Peace and Conflict. Oxford: Oxford University Press.Google Scholar
Blomberg, S. B., Hess, G., and Orphanides, A. (2004) The macroeconomic consequences of terrorism. Journal of Monetary Economics 51: 1007–1032.CrossRefGoogle Scholar
Blomberg, S. B., Hess, G., and Thacker, S. (2006) Is there evidence of a poverty–conflict trap? Economics and Politics 18: 237–267.CrossRefGoogle Scholar
Bozzoli, C., Brück, T., and de Groot, O. J. (2012) How many bucks in a bang: on the estimation of the economic costs of conflict. In: Garfinkel, M. R. and Skaperdas, S. (eds.), Oxford Handbook of Peace and Conflict. Oxford: Oxford University Press.Google Scholar
Braun, R. A. and McGrattan, E. (1993) The Macroeconomics of war and peace. National Bureau of Economic Research Macroeconomics Annual 8: 197–258.Google Scholar
Bueno de Mesquita, B. and Siverson, R. M. (1995) War and the survival of political leaders: a comparative study of regime types and political accountability. American Political Science Review 89: 841–855.CrossRefGoogle Scholar
Davoodi, H., Clements, B., Schiff, J., and Debaere, P. (2001) Military spending, the peace dividend, and fiscal adjustment. IMF Staff Papers 48: 290–316.Google Scholar
DeLong, J. B. (1988) Productivity growth, convergence, and welfare: comment. American Economic Review 78: 1138–1154.Google Scholar
DeRouen, K. R. (1995) The indirect link: politics, the economy, and the use of force. Journal of Conflict Resolution 39: 671–695.CrossRefGoogle Scholar
Downs, G. W. and Rocke, D. M. (1994) Conflict, agency, and gambling for resurrection: the principle–agent model goes to war. American Journal of Political Science 38: 362–380.CrossRefGoogle Scholar
Garfinkel, M. R. (1994) Domestic politics and international conflict. American Economic Review 84: 1294–1309.Google Scholar
Gelpi, C. (1997) Democratic diversions: governmental structure and the externalization of domestic conflict. Journal of Conflict Resolution 41: 255–282.CrossRefGoogle Scholar
Hartley, T. and Russett, B. (1992) Public opinion and the common defense: who governs military spending in the United States? American Political Science Review 86: 905–915.CrossRefGoogle Scholar
Hess, G. D. and Orphanides, A. (1995) War politics: an economic, rational voter framework. American Economic Review 85: 828–846.Google Scholar
Hess, G. D. and Orphanides, A. (2001a) Economic Conditions, Elections, and the Magnitude of Foreign Conflicts. The Journal of Public Economics 80, (April 2001): pp. 121–40.CrossRefGoogle Scholar
Hess, G. D. and Orphanides, A. (2001b) War and democracy. Journal of Political Economy 109: 776–810.CrossRefGoogle Scholar
Kaysen, K. (1990) Is war obsolete? International Security 14: 42–64.CrossRefGoogle Scholar
Keynes, J. M. (1919) The Economic Consequences of the Peace. London: Macmillan.Google Scholar
Leitenberg, M. (2006) Deaths in Wars and Conflicts of the 20th Century. Ithaca, NY: Cornell University Press.Google Scholar
Levy, J. S. (1989) The diversionary theory of war: a critique. In: Midlarsky, M. (ed.), The Handbook of War Studies. New York: Unwin-Hyman.Google Scholar
Lian, B. and Oneal, J. (1993) Presidents, the use of military force, and public opinion. Journal of Conflict Resolution 37: 277–300.CrossRefGoogle Scholar
Maddison, A. (1995) Monitoring the World Economy, 1820–1990. Paris: OECD.Google Scholar
Meade, J. E. (1940) The Economic Basis of a Durable Peace. New York: Oxford University Press.Google Scholar
Pigou, A. C. (1940) The Political Economy of War. London: Macmillan.Google Scholar
Richards, D., Morgan, T. C., Wilson, R., Schwebach, V., and Young, G. (1993) Good times, bad times and the diversionary use of force: a tale of some not-so-free agents. Journal of Conflict Resolution 37: 504–535.CrossRefGoogle Scholar
Robbins, L. (1942) The Economic Causes of War. London: Jonathan Cape.Google Scholar
Rose, A. and Blomberg, S. B. (2010) Total economic impacts of a terrorist attack: insights from 9/11. Peace Economics, Peace Science, and Public Policy, 16, Article 2.Google Scholar
Samuelson, P. (1973) Economics. New York: McGraw-Hill.Google Scholar
Smith, A. (1996) Diversionary foreign policy in democratic systems. International Studies Quarterly 40: 133–153.CrossRefGoogle Scholar
Solow, R. (1956) A contribution to the theory of economic growth. Quarterly Journal of Economics 70: 65–94.CrossRefGoogle Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×