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Peace economics
Peace economics is a specialized branch of economics. Peace economics focuses on the design of the sociosphere’s political, economic, and cultural institutions and their interacting policies and actions with the goal of preventing, mitigating, or resolving violent conflict within and between societies. This violent conflict could be of any type and could involve either latent or actual violence.〔Brauer, Jurgen and Raul Caruso. (2012). “Economists and Peacebuilding.” In Roger MacGintry (ed.), Handbook on Peacebuilding. London: Routledge.〕 Presuming knowledge of the cost of violence, it focuses on the benefits of (re)constructing societies〔Keynes, John M. (1920). The Economic Consequences of the Peace. London: Macmillan.〕〔Boulding, Kenneth E. (1945). The Economics of Peace. New York: Prentice-Hall.〕〔Del Castillo, Graciana. (2008). Rebuilding War-Torn States: The Challenge of Post-Conflict Economic Reconstruction. New York: Oxford University Press.〕〔Brauer, Jurgen and J. Paul Dunne. (2012). Peace Economics: A Macroeconomic Primer for Violence-Afflicted States. Washington, D.C.: United States Institute of Peace Press.〕 with a view toward achieving irreversible, stable peace.〔Boulding, Kenneth E. (1978). Stable Peace. Austin, TX: The University of Texas Press.〕 Together with approaches drawn from disciplines such as anthropology, sociology, psychology and cognitive science, geography and regional science, and political science and international relations, peace economics forms part of peace science, an evolving part of peace and conflict studies.〔Isard, Walter. (1992). Understanding Conflict and the Science of Peace. Cambridge, MA: Blackwell.〕
Peace economics is distinct from both war economics and military economics, even though there may be substantial overlap between these disciplines.〔Poast, Paul. (2006). The Economics of War. New York: McGraw-Hill Irwin.〕〔Hartley, Keith and Todd Sandler, eds. (1995). Handbook of Defense Economics. Vol. 1. Amsterdam: Elsevier.〕〔Sandler, Todd and Keith Hartley. (1995). The Economics of Defense. New York: Cambridge University Press.〕〔Smith, Ron P. (2009). Military Economics: The Interaction of Power and Money. New York: Palgrave Macmillan.〕 Peace economics is also distinct from conflict economics,〔Hirshleifer, Jack. (2001). The Dark Side of the Force: Economic Foundations of Conflict Theory. Cambridge, MA: Cambridge University Press.〕〔Anderton, Charles H. and John R. Carter. (2009). Principles of Conflict Economics: A Primer for Social Scientists. New York: Cambridge University Press.〕 and it is distinct from security economics.〔Brück, Tilman. (2005). “An Economic Analysis of Security Policies.” Defense and Peace Economics. Vol. 16, No. 5, pp. 375-389.〕 A key difference between peace economics and these related fields is that peace economics emphasizes a study of the presence of peace, as distinct from studying the absence or presence of conflict, violence, war, or insecurity.
==Other definitions==
Peace economics has also been defined as “the use of economics to understand the causes and effects of violent conflict in the international system and the ways that conflict can be avoided, managed, or resolved.”〔Anderton, Charles H. and John R. Carter. (2007). “A Survey of Peace Economics,” pp. 1211-1258 in Todd Sandler and Keith Hartley, eds., Handbook of Defense Economics. Vol. 2. Amsterdam: Elsevier. The quote is from p. 1212.〕 This restricts the subject matter to the international realm and leaves out the study of peace itself. Walter Isard defines peace economics as “generally concerned with: (1) resolution, management or reduction of conflict in the economic sphere, or among behaving units in their economic activity; (2) the use of economic measures and policy to cope with and control conflicts whether economic or not; and (3) the impact of conflict on the economic behavior and welfare of firms, consumers organizations, government and society.”〔Isard, Walter. (1994). “Peace Economics: A Topical Perspective.” Peace Economics, Peace Science, and Public Policy. Vol. 1, No. 2, pp. 11-13. The quote is from p. 11. (slightly revised reprint of Walter Isard, “Peace Economics” in Douglas Greenwald, Editor in Chief, The McGraw-Hill Encyclopedia of Economics. New York: McGraw-Hill, 1994, pp. 767-769. )〕 The notion of violence is absent and peace itself is not studied, but the level of analysis can be other than conflict between states. In a context restricted to international trade, another author writes that “Peace economics studies ways to eradicate and control conflict as well as to assess conflict’s impact on society.”〔Polachek, Solomon W. (1994). “Peace Economics: A Trade Theory Perspective.” Peace Economics, Peace Science and Public Policy. Vol. 1, No. 2, pp.14-17. The quote is from p. 14.〕 The notion of violence is not explicit and the benefits of peace are seen only inasmuch as a reduction of conflict may improve opportunities for expanded global trade. Others make a distinction between “productive” and “unproductive” or “appropriative” economic activities their starting point of analysis in peace economics.〔Haavelmo, Trygve. (1954). A Study in the Theory of Economic Evolution. Amsterdam: North-Holland.〕〔Dumas, Lloyd J. (1986). The Overburdened Economy: Uncovering the Causes of Chronic Unemployment, Inflation, and National Decline. Berkeley, CA: University of California Press.〕〔Baumol, William J. (1990). “Entrepreneurship: Productive, Unproductive, and Destructive.” The Journal of Political Economy. Vol. 98, No. 5, Part 1 (October), pp. 893-921.〕〔Caruso, Raul. (2010). “On the Nature of Peace Economics.” Peace Economics, Peace Science, and Public Policy. Vol. 16, No. 2, Article 2.〕
Economics Nobelist Jan Tinbergen defines peace economics as “economic science used for (purpose that ) prohibits () as an instrument of settling conflicts between nations and (organize ) the world in a way that warfare is punished.”〔Tinbergen Jan. (1994). “What is Peace Economics?” Peace Economics, Peace Science, and Public Policy. Vol. 1, No. 4, pp. 3-5. The quote is from p. 3.〕 Violence is addressed only at the level of sovereigns, not dealing with civil war or debilitating organized or individual-level criminal violence. In related work, Tinbergen writes about a world order that would inhibit violence and permit peace between and among states. In his view, this requires a “world government,”〔Tinbergen Jan. (1994). “What is Peace Economics?” Peace Economics, Peace Science, and Public Policy. Vol. 1, No. 4, pp. 3-5. The quote is from p. 3 as well.〕〔Also see Tinbergen, Jan and Dietrich Fischer (1987). Warfare and Welfare: Integrating Security Policy into Socio-Economic Policy. New York: St. Martin’s Press, and Tinbergen Jan. (1990). World Security and Equity. Aldershot, UK: Elgar.〕 a sentiment not now commonly agreed among economists. These definitions of peace economics all share Johan Galtung’s characterization of negative peace (the absence of violent conflict) as opposed to positive peace (the presence of peace-enabling structures).
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