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Abstract: This paper quantifies the impact of terrorism and conflicts on income per capita growth in Asia for 1970–2004. Our panel estimations show that transnational terrorist attacks had a significant growth-limiting effect. Transnational terrorism reduces growth by crowding in government expenditures. An internal conflict has the greatest growth concern, about twice that of transnational terrorism. For developing Asian countries, intrastate and interstate wars have a much greater impact than terrorism does on the crowding-in of government spending.
Policy recommendations indicate the need for rich Asian countries to assist their poorer neighbors in coping with the negative growth consequences of political violence. Failure to assist may result in region-wide repercussions. Conflict and terrorism in one country can create production bottlenecks with region-wide economic consequences. International and nongovernmental organizations as well as developed Western countries and regions could assist at-risk Asian countries with attack prevention and post-attack recovery.
This study has six purposes. First, and foremost, we present panel estimates for a sample of 42 Asian countries to quantify the impact of terrorism and conflicts on income per capita growth for 1970–2004. Panel estimation methods control for country-specific and timespecific unobserved heterogeneity. Second, we distinguish the influence of terrorism on economic growth from that of internal and external conflicts. Third, these influences are investigated for cohorts of developed and developing countries to ascertain whether development can better allow a country to absorb the impact of political violence. Fourth, econometric estimations relate violence-induced growth reductions to two pathways— reduced investment and increased government expenditures. Fifth, a host of diagnostic and sensitivity tests to support our empirical specifications. Last, we draw some policy conclusions.
Abstract: In March 2003, a U.S.-led multinational force began operations in Iraq. At that time, 48 nations, identified as a "coalition of the willing," offered political, military, and financial support for U.S. efforts in Iraq, with 38 nations other than the United States providing troops. In addition, international donors met in Madrid in October 2003 to pledge funding for the reconstru#ction of Iraq's infrastructure, which had deteriorated after multiple wars and decades of neglect under the previous regime.
This testimony discusses (1) the troop commitments other countries have made to operations in Iraq, (2) the funding the United States has provided to support other countries' participation in the multinational force, and (3) the financial support international donors have provided to Iraq reconstruction efforts.
Abstract: The decade since the early 1990s has witnessed the growth of a field of research and practice aimed at resolving and preventing violent conflict. Research on violent conflict has led to a number of different theories on causes of violent conflict, many of them based on the study of large-scale, protracted conflicts in Africa and the Balkans. Advocates of conflict prevention have linked longer-term root causes of violent conflict to aspects of underdevelopment, and tensions inherent in development processes.