What Violence and War Do to Global Output

Creating violence of various kinds and then attempting to contain and quell it cost the world $9.46 trillion in 2012, according to research by the Institute for Economics and Peace. That’s 11% of gross world product. By contrast, the recent financial crisis cost just 0.5% of 2009 global output, Talia Hagerty writes on Pacific Standard. The IEP has posited eight “pillars” that support peace: a well functioning government, equitable distribution of resources, free flow of information, a sound business environment, a high level of human capital from factors such as education and health, acceptance of the rights of others, low levels of corruption, and good relations with neighbors.