Economics of War and Peace: Economic, Legal, and Political Perspectives

Emerald Group Publishing Limited
Publication date:


Latest documents

  • Chapter 11 Regional integration and militarised interstate disputes: An empirical analysis

    Purpose – This chapter aims to position regional integration in the Kantian peace tripod and to test whether regional economic integration has a significant effect in reducing militarised interstate disputes.Methodology – It uses logistic regression on cross-sectional–time-series data and a generalised estimating equation.Findings – The analysis shows that regional integration had a significant impact in reducing militarised interstate disputes between 1950 and 2000.Practical implications – This chapter may provide a new dimension to the academic discussion on the Kantian peace proposition, and encourage policy makers in less integrated regions to integrate with their neighbouring states in a bid to minimise political tensions.Originality – The chapter is based on original data on regional integration collected by the author.

  • Foreword

    The book includes a set of chapters primarily to investigate the link between economics and conflicts. Although the subject matter has been presented in some other volumes in this series, this book spans a wider area covering cross fertilisation of disciplines and the role of law and institutions. The cross-disciplinary approach is necessary because some pure economists are presenting their findings in the area of politics and international relations. Some contributors are asking the questions about the economic value of peace. For that purpose they are using sophisticated scientific methods to analyze domestic and international conflicts. A related specific question is asked about the cost saving by privatising military prisons rather than contracting. This substitution has implications in other areas such as contracting military operations at the time of war. Of course, this cost savings should be weighed against motivation of the soldiers to fight. The question of comparative cost also arises in the technology transfer of military goods without giving out sensitive information and at the same time, concerned about competition from indigenous capabilities of substitutions. This alternative will induce proliferation of arms capabilities of other countries.

  • Chapter 12 Economic integration, economic signalling and the problem of economic crises

    Purpose – This chapter draws on several areas of scholarship to consider the impact of economic crises on the utility of economic costly signalling theory (ECST).Design/methodology/approach – The chapter introduces the problem of economic crises into the debate over ECST to better understand its practical utility. It first highlights the pacific benefits anticipated by ECST to provide a conceptual baseline. It then reviews contemporary economic and political science literature that links economic integration, economic crises and external conflict. Finally, it introduces a perspective on how the conditions created by economic crises reduce the ability and willingness of states to send economic costly signals.Findings – The chapter finds that the value of ECST to security policy is problematic when considering the occurrence of economic crises.Originality/value – This chapter advances the debate over capitalist peace theory by introducing the problem of economic crises to the discourse.

  • List of contributors
  • Chapter 13 Terrorism, targeted economic sanctions and inadequate due process: the case of the Security Council's 1267 sanctions regime

    Purpose – The chapter seeks to contribute to the discourse concerning the United Nations Security Council's role in strengthening a rules-based international system and maintaining international peace and security under the rule of law. Its particular purpose is to examine the Security Council's Al-Qaida and Taliban sanctions regime (1267 regime) from a rule of law and due process perspective.Methodology – To this end, the chapter reviews the 1267 regime's controversial listing and de-listing procedure and identifies shortcomings in relation to traditional due process guarantees. It then discusses reform options available to the Security Council as far as forms and modalities of an effective review mechanism are concerned.Findings – The chapter has two main findings. First, it concludes that the ‘individualisation’ of Security Council sanctions in terms of targeting individuals directly has not been accompanied by the creation of a means for the new targets to appeal the measures imposed on them. Second, it finds that a lack of political will has so far prevented comprehensive reform of the 1267 regime but that such reform is becoming increasingly urgent. The chapter suggests that reform initiatives need to address the value, effectiveness and sustainability of the 1267 regime more broadly. The Security Council, in particular, needs to consider what it is prepared to give up to maintain the 1267 regime as an effective UN sanctions regime, or whether it is prepared to give up the 1267 regime to maintain the authority it interprets to have from the UN Charter.

  • Subject Index
  • Chapter 14 Compensation for civilian casualties in armed conflicts and theory of liability

    Purpose – The purpose of this chapter is to highlight the current limitations in compensating the civilian victims of armed conflicts and to examine the possibility of extending this practice.Methodology/approach – The first half of the chapter employs legal and political analysis of the current framework of international law and the practice of the United States. The latter half of the chapter examines the literature on theory of liability in economics and philosophy.Findings – The framework of international law, which does not require compensation for the victims of lawful attacks, is increasingly at odds with the current trend in which military force is used by a powerful state against a much weaker state on the grounds that the local population would benefit from the operation. The system developed by the United States is the most extensive and can form a model for other states and international institutions. Keating's analysis of enterprise liability can be applied to compensation of victims in military operations that are deemed to be beneficial to the population. Economic analysis, on contrary, suggests that compensation of civilian victims has minimal effect on the level of risks.Originality/value – This chapter makes a unique contribution by applying theory of liability to a situation that widely diverges from the context in which the theory has developed. It critically examines the current practice and proposes a morally preferable and economically sustainable alternative model.

  • Chapter 15 Economic factors in peace and war: A discussion

    Purpose – The main purpose is to provide ideas about an intellectual framework for considering the role of “economic factors” in conflict and to suggest some potentially useful future areas of research. I selectively reference some relevant findings from the other chapters in this volume.Methodology/approach – This chapter is speculative, but raises important issues. It might seem that economic factors should be considered “hard” constraints on the dynamics of large-scale conflict and peace, whereas political factors are “soft.” I propose the opposite. I argue that we should consider political factors as causally primary and economic factors as contingent on them. I present statistical analyses that call into question some recent research on the apparent primacy of economic factors in international conflict.Findings – These models challenge a strong belief in the primacy of a “capitalist peace” or “economic peace” over political factors such as democracy. But my purpose here is no more than to suggest that this is a promising area for further inquiry. Economic factors are of course hugely important, but they are filtered through norms and institutions, which are political creations. If the basic logic of my thinking holds, similar results would be obtained for studies of civil conflict initiation and escalation.Originality/value of paper – This chapter raises the issue of the appropriate place of economic and political factors in understanding organized conflict at various levels of analysis. It suggests how the chapters in this volume help advance thinking about the relationship between economic factors and conflict in this context and provides some novel empirical results to suggest the plausibility of the argument that economic factors may be less theoretically fundamental than political ones.

  • Chapter 2 A method to compute a peace gross world product by country and by economic sector

    Purpose – The chapter reports on an attempt to compute the size of gross world product (GWP) under the assumption that all violence ceases.Methodology/approach – Spreadsheet-based simulations, given seed values taken from extensive literature review; this is done, for 2007, in nominal foreign exchange–based US dollars (USD) as well as in purchasing power parity (ppp)–based dollars (international dollars).Beneficial economic effects from more internal peace (nonviolence within countries) as well from external peace (nonviolence between and among countries) are calculated for each of 140 countries. In addition, we compute sectoral economic effects for the United States.Findings – For 2007, the simulations suggest that in a state of nonviolence the world economy could have been larger by 4.8 trillion dollars, or 8.7 per cent of actual GWP, when measured in nominal, foreign exchange–based USD, or by 6.0 trillion international dollars, or 9.2 per cent of GWP, when measured in purchasing power parity values.Limitations – The simulations are based on disparate values found in the literature to seed the spreadsheet calculations; various assumptions are made that would need to be confirmed through country- and sector-specific studies.Practical implications – Knowledge of the potential size of forgone economic benefits due to violence can assist to set out global violence reduction goals in order to achieve measurable economic results.Originality/value of chapter – To our knowledge this is the first attempt to calculate the size of the worldwide economic benefits forgone due to violence.

  • Chapter 3 Privatising military prisons: The case of the United States

    Purpose – This chapter aims to contribute to the policy debate on private sector involvement in traditionally core defence activities through rigorous economic analysis. Punishment and correction in the US military prisons have traditionally been considered as a core activity that has been governed, regulated and managed by the military service personnel. It has been shown however, that military facilities such as stockades and brigs have often failed to meet their correctional objectives – a quality issue.Methodology – The chapter constructs a case study to illustrate the method of analysis. Well-trained and motivated military custodial personnel play an important correctional role but are not available in sufficient numbers in military prisons. It is therefore proposed to source these services through the private sector. Specifically, the chapter proposes that private sector providers should provide custodial personnel for stockades and brigs. Traditionally the private sector has been employed to reduce costs, rather than improve quality. This chapter adapts and applies the framework developed by Hart, Shleifer and Vishny (1997) to study the governance model and incentive regime that could enable the use of the private sector, reduce the risk of excessive cost cutting and enable quality outcomes to be achieved.Findings – This chapter argues that private sector involvement could effectively increase the contestability of supply.Implications – The chapter demonstrates the scope for private sector involvement to increase quality, rather than just decrease costs. It follows that the private sector can contribute to core national security outcomes. However, this implication needs significantly more exploration for specific contexts.Value – The adopted mode of analysis provides a template for rigorous analysis of similar proposals in the future.

Featured documents