Question

In: Economics

Discuss substantive ways in which armed conflict can contribute to or distract a developing economy and...

Discuss substantive ways in which armed conflict can contribute to or distract a developing economy and infrastructure. Analyze specific reasons why developed nations do not experience the same kinds of social upheaval.

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Expert Solution

Answer:-

Armed conflict retards a country's development process, and also erodes its developmental foundation. In addition to the huge loss of lives, war leads to material losses, such as destruction of crops and roads, and extensive damage to economic and social infrastructures. Transportation and communication systems, banking, healthcare, education, and agriculture are often damaged or destroyed.

The economic stress caused by war lessens production capacity and limits the investment capabilities of war-torn regions. During wartime, resources are diverted from routine maintenance of existing social and economic infrastructure and into defense. Non-military government spending is often tightened, and there is typically a decline in investments in industrial, agricultural, and construction sectors. These industries, as well as overall trade, tend to decline. Debt often reaches very high levels.

Sarah Peterson describes the process of "social reconstruction which must parallel physical reconstruction in the "post-conflict stage. War can also lead to emigration and displacement, which can reduce the overall size of the labor force. People are killed or they abandon their homes. This can create significant costs for a country in terms of capital and labor power.

Human resource shortages are also often severe in war-torn societies. Educational


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