“IF WAR IS THE WORST ENEMY OF DEVELOPMENT,HEALTHY AND BALANCED DEVELOPMENT IS THE BEST FORM OF CONFLICT PREVENTION.” –KOFI ANNANTHE GREAT CAUSES Poverty could cause conflict; conflict could then lead to more poverty – circular Therefore peace consolidation important and avoidance of recurrence of conflictThree economic characteristics appear to make a country more prone to conflict – – low per capita income – overall economic decline – dependence on primary commodities

RESOURCES DIVERTED FROM PRODUCTIVE ACTIVITIES TO DESTRUCTION – A DOUBLE LOSS. VALUE OF LOST PRODUCTION – INSTEAD OF REPAIRING ROADS AND EXPANDED AGRICULTURAL PRODUCTION, GOVERNMENT RECRUITS MORESOLDIERS AND BUYS WEAPONS AND AMMUNITION.

COSTS OF REPAIRING DESTRUCTION – ROADS THAT WERE DAMAGED BY TANKS, AND DESTROYED BY BOMBS, MUST BE REBUILT BEFORE THEY CAN WORK AGAIN.

BURDEN OF TAXES ECONOMIC SLOWDOWNINFLATIONUNEMPLOYMENT

CASUALTIES AND LOSSES

WAR INDIA PAKISTAN

INDO-PAKISTANI

WAR OF 1965

3,264 KILLED 3800 KILLED

INDO-PAKISTANI

WAR OF 1971

3,843 KILLED 7900 KILLED

KARGIL WAR 527 KILLED 357 - 4,000 KILLED

COST OF PREPARING FOR WAR(2001-02)

INDIA PAKISTAN

TROOPS DEPLOYED

7,00,000 3,00,000

COST INCURRED

$600m $400m

TOTAL COST

$1.8bn $1.2bn

U.S entered the war with about 126,000 men

NUCLEAR ATTACK ON JAPAN

Target of Hiroshima was selected. dropped the bomb on August 6, 1945 At 8:15 AM. The bomb was nicknamed “Little Boy”. Dead ranged from 75,000 to 180,000 dead; due to radiation, people would be dying for decades from cancer and birth defects.

TARGET OF NAGASAKI WAS SELECTED.

on August 9, 1945, the B-29 "Bock's Car" dropped the “Fat Man” Plutonium bomb on Nagasaki, the tertiary target. 70,000 people were killed, but again the after effects caused by radiation continued to kill for decades.On August 15, 1945, the Emperor announced the surrender. The Second World War was over.

1919 and early 1920 saw a strong worldwide inflationary boom.

World War 1 (1914-1918)World War 1 (1914-1918)

WORLD WAR 2

The Economic Effect on Japan during Post World War II

Japan‘s economic recovery as a result of this incident transformed Japan's economic growth which has become known as the "Economic Miracle."

The Economic Planning Agency, which used to be known as the Economic Stabilization Board, helped Japan to become one of the leading economic nations.

The United States also contributed to much of Japan's recovery by occupying it from 1945-1951..

The U.S. signed an agreement in 1944 called "The Bretton Woods" agreement which drastically changed the world economy. No longer would gold be used as a standard, but instead all money's value would be derived from its relationship to the US dollar.

In 1940, the major automakers convert to aircraft production. The auto companies only fully converted to war production in 1942 and only began substantially contributing to aircraft production in 1943.

CONVERSION

PRICE CONTROLS AND THE STANDARD OF LIVING

Fiscal and financial matters were also addressed by other federal agencies. For instance, the Office of Price Administration used its "General Maximum Price Regulation" to attempt to curtail inflation by maintaining prices at their March 1942 levels.

The number of Americans required to pay federal taxes rose from 4 million in 1939 to 43 million in 1945

Nominal GDP Federal Spending Defense Spending

Year total $% increase

total $% increase

% of GDP total $% increase

% of GDP% of federal spending

1940 101.4 9.47 9.34% 1.66 1.64% 17.53%

1941 120.67 19.00% 13.00 37.28% 10.77% 6.13 269.28% 5.08% 47.15%

1942 139.06 15.24% 30.18 132.15% 21.70% 22.05 259.71% 15.86% 73.06%

1943 136.44 -1.88% 63.57 110.64% 46.59% 43.98 99.46% 32.23% 69.18%

1944 174.84 28.14% 72.62 14.24% 41.54% 62.95 43.13% 36.00% 86.68%

1945 173.52 -0.75% 72.11 -0.70% 41.56% 64.53 2.51% 37.19% 89.49%

FEDERAL SPENDING AND MILITARY SPENDING DURING WORLD WAR II(DOLLAR VALUES IN BILLIONS OF CONSTANT 1940 DOLLARS)

1940 1941 1942 1943 1944

Aircraft 245 630 1706 2842 2805

Shipbuilding 159 375 1091 1815 1710

Aluminum 126 189 318 561 474

Rubber 109 144 152 202 206

Steel 131 171 190 202 197

OUTPUT IN MANY AMERICAN MANUFACTURING SECTORS INCREASED

 Emergence of US as the world power

End of cold war and rise of China as the biggest competitor,other asian conteries with rapid growth.

America spends the highest percentage of GDP on military expenses among all G7 industrial nations(3.8%),known as always prepared for the

These factors together with the 9/11 attack on America, Iraq having rich oil supply under the claim of it possesing unauthorised nuclear weapons America launced attack on Iraq

DIRECT RELATION BETWEEN WAR AND ECONOMY

AMERICA POST SECOND WORLD WAR

THE RISING ECONOMIC COST OF THE IRAQ WAR

THE MILITARY PRICE TAG: $5 BILLION EACH MONTH.

BY 2010, WAR EXPENSES MIGHT TOTAL $600 BILLION, ACCORDING TO THE CONGRESSIONAL BUDGET OFFICE. CONGRESS HAS APPROVED ABOUT $192 BILLION FOR THE IRAQ WAR ITSELF. ANOTHER $58 BILLION HAS BEEN ALLOCATED FOR AFGHANISTAN.

THAT TOTALS $400 BILLION FOR ALL MILITARY OPERATIONS SINCE 2001.

THE CONGRESSIONAL RESEARCH SERVICE PEGS THE COST OF US OPERATIONS IN IRAQ AND AFGHANISTAN AT AN ADDITIONAL $458 BILLION THROUGH 2014.

ESTIMATES THE TOTAL DAILY COST OF THE IRAQ WAR AT $720 MILLION

720 MILLION DOLLARS, HOW WOULD YOU SPEND IT? 84 NEW ELEMENTARY SCHOOLS12,478 ELEMENTARY SCHOOL TEACHERS 95,364 HEAD START PLACES FOR CHILDREN 11,53,846 CHILDREN WITH FREE SCHOOL LUNCHES 34,904 FOUR-YEAR SCHOLARSHIPS FOR UNIVERSITY STUDENTS 1,63,525 PEOPLE WITH HEALTH CARE 4,23,529 CHILDREN WITH HEALTH CARE 6,482 FAMILIES WITH HOMES 12,74,336 HOMES WITH RENEWABLE ENERGYTHE WAR IN IRAQ COSTS $57,702,91,87,621

INDIVIDUAL COST OF WAR CALCULATOR

$4,681 PER HOUSEHOLD. $1,721 PER PERSON. $341.4 MILLION PER DAY.

An increased supply of oil

The war either has everything to do with Iraq's vast oil supplies. All sides should agree that if a regime with better American relations were set up in Iraq, the supply of oil to the United States would increase. This will drive down the price of oil, as well as driving down the costs of companies that use oil as a factor of production which will certainly help economic growth.

Stability and Economic Growth in the Middle East

If peace can somehow be established in the Middle East, the U.S. If the economies of the countries in the middle east become more stable and experience growth, this will give them more opportunities to trade with the United States, improving both the economies of those countries and the U.S.

These factors outweighing the short term costs of the war in Iraq, but you can make a case for them. In the short term, however, the economy will decline.

BENEFITS OF WAR TO AMERICA

THE ECONOMY WAS ALREADY IN RECESSION ON 9/11.

NEW ORDERS FOR DURABLE GOODS WERE DOWN 8.5% FROM THE PREVIOUS YEAR.

UNEMPLOYMENT RATE HAD JUMPED TO 4.9%.

THE DOLLAR FELL AGAINST THE EURO 40%.

AIRLINE INDUSTRY :GOVERNMENT AID PACKAGE ACCESS UP TO $15 BILLION.

INSURANCE INDUSRTY :THE LARGEST PROPERTY CLAIM IN HISTORY, ESTIMATED AT $40 BILLION.

SMALL BUSINESS :NEARLY 18,000 BUSINESSES WERE DESTROYED BY 9/11. MOST WERE IN AND AROUND THE WORLD TRADE CENTER COMPLEX.

NEW YORK CITY : GROSS CITY PRODUCT (GCP) WAS ESTIMATED TO REDUCED BY APPROXIMATELY $27.3 BILLION.

TOTAL LOSS- Rs. 4000 CRORE.

DEATHS- 179 PEOPLE , INCLUDING 22 FOREIGNERS AND SIX AMERICANS.

AROUND 50% DROP IN OCCUPANCY RATE.

ESTMATED DROP IN No. OF FORIEN TOURIST TO INDIA – 34% TO 40%.

IN THE FIRST WEEKEND AFTER 26/11, PANTALOON(MUMBAI) OBSERVED 4.2% FALL IN OVER ALL SALES.

MULTIPLEXES IN MUMBAI SUFFERED 20% DROP IN SEAT OCCUPANCY.

SOURCES

WIKIPIDIA.COMABOUT.COMCSMONITER.COMWALLSTREAT.COMTIMES OF INDIA