Investigating the economic cost of conflict

Recent years have seen a surge in the literature on armed confl‡ict and terrorism. This report aims to answer …five (sets of) questions with a recently emerging part of this literature. What evidence is there that upstream confl‡ict prevention (in the form of capacity building etc) has materially/economically bene…fitted either the donor or receiving country? What are the economic bene…fits in UN peacekeeping to either the UK or wider world? What are the economic costs to a society without an effective or functioning security or defence apparatus? Is it economically efficient to invest in defence engagement/upstream capacity building/confl‡ict prevention? Is there a correlation between political stability/security and economic development? Is the UK’’s economy routinely negatively affected by confl‡ict and instability around the world? Are there any examples of states whose instability has a negative impact on the UK economy? What are the economic costs to the UK in ignoring ‘failed ’states?

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