PEACE
2gDMXRh
2gDMXRh
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
SECTION 3:<br />
COMPARISONS OF CONTAINMENT<br />
& PREVENTION COSTS<br />
TO LOSSES FROM VIOLENCE<br />
The economic impact of violence can be broadly divided into two<br />
categories: expenditure on services that aim to contain and prevent<br />
violence and costs that arise as the consequence of violence.<br />
Prevention costs include spending on police and the<br />
criminal justice system and are primarily intended to<br />
prevent, contain and reduce violence in a society. Military<br />
costs are also included in the analysis as it is mostly<br />
intended to protect against external threats. By contrast,<br />
violence containment spending that accrues to a society<br />
because of crimes and conflict are categorised as costs from<br />
violence. This includes lost wages and productivity, lost<br />
economic activity, medical costs and psychological harm.<br />
In a perfectly peaceful world, there would be no costs<br />
from violence and no need for prevention and military<br />
spending. However, in the absence of Positive Peace,<br />
reduced spending on violence prevention will likely result<br />
in higher costs from violence and vice versa. Looking<br />
at the trade-off between prevention spending and costs<br />
from violence, can shed some light on the optimal level of<br />
containment spending and whether spending beyond this<br />
point continues to improve peacefulness, or in fact leads<br />
to a decrease in peacefulness.<br />
Prevention costs are 68 per cent of costs arising from<br />
violence. However, when military and containment costs<br />
are aggregated they are higher than the costs resulting from<br />
violence. Figure 25 shows trends in prevention and military<br />
spending and costs from violence from 2007 to 2015.<br />
FIGURE 25 TREND IN VIOLENCE PREVENTION AND MILITARY SPENDING AND THE COST FROM<br />
VIOLENCE<br />
The costs as a consequence of violence have increased since 2007 while prevention<br />
expenditure has remained the same and military expenditure has fallen.<br />
6,000<br />
CONSTANT 2014 PPP$, BILLIONS<br />
5,000<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
-<br />
2007 2008 2009 2010 2011 2012 2013 2014 2015<br />
Prevention<br />
Military<br />
Costs from violence<br />
Source: IEP<br />
THE ECONOMIC VALUE OF <strong>PEACE</strong> 2016 | Comparisons 32