Attention Economy


Saturday, September 17, 2016

The Economic Cost of War and Conflict

New IMF study indicates that the Middle East has paid an extraordinary economic price due to recent and ongoing conflicts:


Full report:
http://www.imf.org/external/pubs/ft/sdn/2016/sdn1608.pdf
Summary: In recent decades, the Middle East and North Africa region (MENA) has experienced more frequent and severe conflicts than in any other region of the world, exacting a devastating human toll. The region now faces unprecedented challenges, including the emergence of violent non-state actors, significant destruction, and a refugee crisis bigger than any since World War II. This paper raises awareness of the economic costs of conflicts on the countries directly involved and on their neighbors. It argues that appropriate macroeconomic policies can help mitigate the impact of conflicts in the short term, and that fostering higher and more inclusive growth can help address some of the root causes of conflicts over the long term. The paper also highlights the crucial role of external partners, including the IMF, in helping MENA countries tackle these challenges.