Conflict economics studies the intersection where economics and conflict meet, analyzing how economic incentives, resources, and costs can both drive conflicts and be affected by them. It explores the role of economic structures in conflict emergence, the economic impacts of war, and strategies for post-conflict economic recovery.

Conflict Economics

Economic incentives are mechanisms designed to influence the behavior of individuals and firms by aligning their interests with desired economic outcomes. They can be positive, such as subsidies and tax breaks, or negative, such as fines and penalties, and are crucial for addressing market failures and achieving policy goals.

Economic Incentives

Economic Structures

Conflict emergence

War can severely disrupt economies by destroying infrastructure, reducing labor forces, and destabilizing financial systems, often leading to recessions that may persist long after conflicts end. The wartime economies may prioritize military production over consumer goods, causing shortages and inflation that strain civilian populations and can alter economic growth trajectories for decades.

Economic Impacts Of War

Post-conflict economic recovery involves rebuilding and strengthening economic systems and structures that have been disrupted or devastated by conflict. This process is crucial for fostering stability, promoting sustainable development, and preventing a relapse into conflict by addressing root economic causes and ensuring inclusive growth.

Concepts

Relevant Degrees

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