Violence denies economy trillions, study finds.

• Author: Block, Ben
• Position: EYE ON EARTH - Global Peace Index - Brief article

Violence denies the global economy significant economic benefits, according to a recent assessment of world peace. The third annual Global Peace Index concluded that if the world had been peaceful in 2007--with no war in Iraq or political unrest in Myanmar, for instance--the global economy would have benefited by as much as US$7.2 trillion.

"There is an argument that war is good for the economy," said Clyde McConaghy, president and co-developer of the Index. "I don't think that argument stands up anymore."

An estimated $2.4 trillion would be generated by diverting finances from "violent" to "peaceful" activities, according to the study. This assumes that the estimated 4.4 percent of gross world product spent on violent activities would largely shift elsewhere. The remaining $4.8 trillion is an estimate of the economic activity worldwide that has been repressed by violence. An increase in a country's "peacefulness" results in greater consumer spending and reduces risk for investors, argues the Australia-based...