Home Economy War And Peace: How Violence Is Disrupting The Global Economy

War And Peace: How Violence Is Disrupting The Global Economy

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Although you may not see it, millions of lives are disrupted by violence everyday.

War, homicide, terrorism, suicide, and sexual assault can be found across the world in various degrees; but, as Visual Capitalist’s Katie Jones details below, while certain types of violence can incur costs that result in personal traumas, violence can also create significant economic disruptions.

In today’s Chart of the Week, we visualize data estimates from the Global Peace Index 2019 on the global cost of violence, and its geographical spread.

How is Violence Linked to the Economy?

The Global Peace Index calculates the total cost of violence using purchasing power parity (PPP) by considering three factors:

 

Direct costs: Immediate consequences to the victims, perpetrators and the government

 

Indirect costs: Delayed economic losses following the violent event, including the after-effects of trauma experienced by the victim

 

Multiplier effect: Calculates the additional economic activity that would have accrued if the direct costs of violence had been avoided.

Between 2012-2017, the cost of violence increased by 11% to $14.6 trillion—mainly due to rising violence in Syria, Libya, Yemen, and other parts of the Middle East and North Africa.

In 2018, the total cost of violence decreased for the first time in six years to $14.1 trillion. That’s the equivalent of 11.2% of global GDP (PPP), or $1,853 for every person.

In this one year, the $475 billion saved from decreased violence costs was largely due to lower levels of armed conflict in Syria, Ukraine, and Colombia.

The Top 10 Worst Affected Countries

It comes as no surprise that countries affected by conflict incur the greatest costs due to a higher than average death toll, and sizable military expenditures.

Here are the countries with the highest cost of violence according to the report:

Since 2017, Venezuela has climbed the ranking and now sits in the top 10, due to continuing political repression and a spiraling economy as a result of hyperinflation.

The Global Composition of Violence

Government spending on military comprises 40% of the global total, or $5.7 trillion in constant purchasing power parity (PPP).

Naturally, the types of violence costs vary by region, and the most noticeable difference is in military expenditure. It represents 59% of Middle East and North Africa’s violence costs—but only 8% for Central America and the Caribbean.

Interestingly, the Middle East and North Africa boast the lowest levels of violent crime, homicide, and suicide, representing only 4% of the total, compared to South America’s 45%.

Keeping the Peace

Despite today’s chart painting a picture of the world as a dangerous place, it is worth noting that there are two sides to this story.

Of the 163 countries ranked in the index, 86 countries improved their peace score in the last year, with Iceland retaining its number one position for over a decade. In fact, the country has not had any gun murders since the Global Peace Index began in 2007.

Is the recent drop in costs of violence a sign that we are moving towards a more peaceful planet, or just a blip on the radar?

via zerohedge

3 COMMENTS

  1. https://www.breitbart.com/environment/2019/12/03/danish-academic-u-n-might-use-military-to-enforce-climate-agenda/

    So UN is going to cause violence because of there “made up” science called Climate Change? And Nancy Pelosi has the audacity to state in Spain that though President Trump said NO to the Paris Agreement the House and Congress are definitely in? So Nancy, this how you are going to come after We the People to get your way? As you undermine our Constitution with your fake Impeachment show, you plan to use the UN to make us comply to this farce?

    Hey go clean up your own district first before you set your UN on us. You know Obama’s 57 state constituents.

    GOD BLESS PRESIDENT TRUMP! GOD BLESS THE USA!

  2. https://www.breitbart.com/politics/2019/12/04/u-n-cries-poor-again-issues-unprecedented-29-billion-emergency-funding-appeal/

    oh boo hoo….

    “His plea for cash comes just two months after a series of cutbacks began at the U.N.’s New York headquarters, starting with the heating being turned down, the diplomats’ bar shuttering early at 5pm and meetings canceled along with diminished first class global travel budgets.”

    Go see Sor0s. He’s the “climate change” nut that you all bowed to. Get him to pay you .

    “Lowcock said the latest appeal for more money followed a continued rise in global conflicts that “are becoming more protracted and intense” which meant more money was needed by the U.N. if it was to play its part in global peace.”

    Sorry NATO will do the job. Go see the EU, who want to be your army if you are looking for money. Possibly Canada, France and Germany who don’t want to pay for NATO defense.

    GOD BLESS PRESIDENT TRUMP! GOD BLESS THE USA!

    • https://www.breitbart.com/europe/2019/12/03/the-uns-cop25-madrid-climate-conference-is-a-sick-joke/

      “This is the “do as I say, not do as I do” class. And if you want to an idea of how utterly useless and contemptible they are, here’s an excerpt from the speech Nancy Pelosi gave to the delegates when she flew in to pretend that the Democrats are running the U.S. and that their presence at a UN Climate Conference therefore matters:

      Her speech, which you can see on Reuters TV, if you have the stomach for it, included these immortal lines:

      ‘This is a mission, this is a passion, this is a scientifically based approach to all of it in – *clears throat* – and we’re here to say to all of you on behalf of the House of Representatives in the Congress of of the US we’re still in it.’

      She flew 3,000 miles to say that? Really.”

      Hey “think your president” Pelosi, your Schiff/Nadler show is going up in flames, lol.

      “The people pushing this agenda should be given no sympathy. They are not merely ignorant and greedily self-interested but also morally bankrupt.

      Exposed here, for example, is the grotesque hypocrisy of Unicef – the United Nations’ children’s charity.

      From: Steve Milloy of JunkScience,

      UNICEF says “Every day, nearly 7,500 children under age 5 die from malnutrition.”

      So why doesn’t UNICEF spend every bit of its time and money addressing that solvable and real problem?

      Instead… climate propaganda.

      Thank you Mr. Milloy of showing the hypocrisy of the UN. I can say the hypocrisy shows in “think she’s a President” Nancy pelosi as well.

      BTW, where is the Catholic Church on this? Remember “Trick or Treat for UNICEF”. On that’s right the pope is worried about climate change as well. The heck with the children that Jesus said to protect and watch over.

      GOD BLESS PRESIDENT TRUMP! GOD BLESS THE USA!

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