Hi, need to submit a 1500 words paper on the topic The Economic Costs of Civil Wars. After the war, it is important to establish a post-conflict recovery period where a country affected by civil war can get sufficient time to jump-start its economic mechanisms and strengthen the financial structures. The post-conflict recovery period is essential because it determines to what extent a particular economy will recover from the crippling effects of civil war.
War paralyzes all economic activities of the conflicting country as well as all the neighboring states. Such important activities as regional trade often come to a standstill. Take, for instance, the situation in Iraq in 2003, in which the US invaded them. This invasion was a major setback for the economy of Iraq, but amazingly, it only took them a year to recover. This was because Iraq is a major oil producer, and its economy is well structured. Oil is a major issue in the international business currently (Ionica, 2012). Oil prices have drastically gone down, and, therefore, countries that are relying on oil for economic boost are facing uncertain times. Venezuela, for instance, relies on oil for economic stability. They are currently experiencing economic hardship because the prices of oil in the international market have gone down. Lebanon was affected by conflict, and it took twenty years to experience full economic recovery.
There is a tremendous impact that civil wars have on big businesses, some of which may totally collapse because of the economic instability caused by conflict. Therefore, it is important for global enterprises to realize how conflict is detrimental to big businesses and its direct effects on the economy (Costalli, Moretti, & Pischedda, 2014). Good examples of places whose vibrant economies have been torn apart by war include places like sub-Saharan Africa states like Libya and Egypt, Iraq and other parts of the world like Ukraine. Policies exist, which can protect a given economy from the collapse in case of such catastrophes.