Economic Research Forum (ERF)

Learning about long-term consequences of armed conflict

1853
What do outbreaks of armed conflict mean for households in war-torn areas? This column presents findings from data on Iraq on how household level decision-making is affected by conflict. The evidence suggests that armed conflict episodes have long-term effects on human capital that far outweigh the obvious and immediate impact of armed violence.

In a nutshell

New research on the impacts of armed conflict on individual and family lives sheds light on household decisions related to child discipline, labour market decisions, breastfeeding, vaccinations and access to fresh water.

One example of the impact of conflict lies in household health decisions: there is a significant decline in the probability of breastfeeding among children in regions with more intense conflict, and mixed results regarding the duration of breastfeeding.

International organisations can play a role in alleviating these impacts on family health: for example, children in high conflict areas are more likely to have been vaccinated against tuberculosis and measles.

Episodes of armed conflict have a devastating toll on human lives not only through deaths but also physical and emotional injuries. An additional direct impact is the destruction of infrastructure including public amenities, education and healthcare facilities. Other effects include the interruption of government, public and social services.

What is not really obvious is the impact of armed conflict on decisions made by households in affected areas during times of conflict. Such decisions include choices that not only affect the immediate livelihood of household members but also their future prospects such as labour market, education, health and migration.

These choices can have long-term effects on human capital that extend for years, if not decades, beyond the conflict episode. Such consequences extend the armed conflict impact on an affected region far beyond the conflict time period, creating serious downstream outcomes and social costs that are detrimental to economic development. Without accounting for these long-term consequences, one would underestimate the true cost of war.

Research on armed conflict has struggled to document these effects for lack of micro-level conflict and household/individual data. One difficulty is how to measure conflict and whether this measure is at small geographical unit (district, sub-district, city, etc.). What’s more, not all conflicts are created equal, and it is important to distinguish between different types of conflict: ethnic war, civil war, interstate war (across country boundaries), colonial war and violent street protest (see Plümper and Neumayer, 2006).

Using related death records is one measure of the level of conflict intensity (Looney, 2006; Berman et al, 2011); another is the number of attacks on infrastructure and people (Rodriguez and Sanchez, 2012). Recently, Ceylan and Tumen (2021) use satellite images and geographical information systems methods to quantify lost economic activity as a creative way to measure armed conflict intensity.

Another difficulty lies in the availability of household (or individual) level data that can be paired with conflict data. Ideally, such data would provide detailed information about each household member, include location information (preferably at the smallest geographical unit to measure more variation due to conflict exposure), and overtime.

My work with my co-authors (consisting so far of five articles) has taken advantage of recent household level data to contribute to this body of research evidence. Using survey data from Iraq and pairing it with geolocational conflict data that records civilian deaths due to conflict, our recent studies have shed light on household decisions related to child discipline, labour market decisions, breastfeeding, vaccinations and access to fresh water.

The Middle East and North Africa (MENA) region, and in particular Iraq, offers a unique opportunity to study the impact of armed conflict on household decisions. While the overall number of armed conflicts has been on a decline since 1945 (Gates et al, 2016), the MENA region has had the deadliest conflicts since 2014, including continuing wars in Iraq, Libya, Syria and Yemen, which account for more than 65% of total world conflict-related casualties.

In particular, our empirical work (Malcolm et al, 2019) identifies parenting discipline practices as a direct link between conflict and psychological health of children and adolescent. Children living in conflict-ridden areas are more likely to experience moderate to serious corporal punishment at home.

Our next three studies focus on the health impact of decisions at the household level. In Diwakar et al (2019), we document a significant decline in the probability of breastfeeding (both ever breastfed and current breastfeeding) among children in regions with more intense conflict, and mixed results regarding the duration of breastfeeding.

Such findings bring attention to the role of international organisations in alleviating these impacts. A role that seems to be making a difference in terms of vaccinations (as Naufal et al, 2020, documents) is that children in high conflict areas are more likely to have been vaccinated against tuberculosis and measles.

In terms of labour market implications, Naufal et al (2019) finds that armed conflict is associated with higher probability of economic child labour (referring to work outside the household) but has no impact on household labour (chores related to the dwelling).

Finally, Naufal et al (2021) suggests that higher intensity of armed conflict diminishes public access to fresh water for households further widening income inequality of affected families.

The following table summarises these findings.

The consequences of conflict outlined above take further significance for the MENA region because it is home to the second youngest population in the world after the sub-Saharan African countries. The actual impact of armed conflict will manifest itself for years after the current conflict episodes.

 

Further reading

Berman, E, JN Shapiro and JH Felter (2011) ‘Can hearts and minds be bought? The economics of counterinsurgency in Iraq’, Journal of Political Economy 119(4): 766-819.

Ceylan, E, and S Tumen (2021) ‘Measuring the Economic Cost of Conflict in Afflicted Arab Countries’, ERF Working Paper No. 1459.

Diwakar, Vidya, Michael Malcolm and George Naufal (2019) ‘The Impact of Violent Conflict on Breastfeeding’, Conflict and Health 13:61: 1-20.

Gates, S, HM Nygard, H Strand and H Urdal (2016) ‘Trends in Armed Conflict, 1946-2014’, Conflict Trends, Peace Research Institute Oslo.

Looney, R (2006) ‘Economic Consequences of Conflict: The Rise of Iraq’s Informal Economy’, Journal of Economic Issues, 40(4): 991-1007.

Malcolm, Michael, Vidya Diwakar and George Naufal (2019) ‘Child Discipline in Times of Conflict’, Journal of Conflict Resolution 1-25.

Naufal, George, Michael Malcolm and Vidya Diwakar (2019) ‘Armed Conflict and Child Labor: Evidence from Iraq’, Middle East Development Journal 11(2): 1-18.

Naufal, George, Michael Malcolm and Vidya Diwakar (2020) ‘Violent Conflict and Vaccinations: Evidence from Iraq’, ERF Working Paper No. 1438.

Naufal, George, Michael Malcolm and Vidya Diwakar (2021) ‘Armed Conflict and Household Source of Water’, ERF Working Paper No. 1460.

Plümper, T, and E Neumayer (2006) ‘The unequal burden of war: The effect of armed conflict on the gender gap in life expectancy’, International Organization 60(3): 723-54.

Most read

Making trade agreements more environmentally friendly in the MENA region

Trade policy can play a significant role in efforts to decarbonise the global economy. But as this column explains, there need to be more environmental provisions in trade agreements in which developing countries participate – and stronger legal enforcement of those provisions at the international level. The MENA region would benefit substantially from such changes.

Jordan: navigating through multiple crises

Jordan’s real GDP per capita is today no higher than it was 40 years ago. While external factors have undoubtedly had an adverse effect on the country’s economic outcomes, weak macroeconomic management and low public spending on investment and the social sectors have also played a substantial role. This column explores what can be done to reduce high public debt, accelerate private sector development and enhance social outcomes.

Iran’s globalisation and Saudi Arabia’s defence budget

How might Saudi Arabia react to Iran's renewed participation in global trade and investment? This column explores whether the expanding economic globalisation of Iran, following the lifting of nuclear sanctions, could yield a peace dividend for Saudi Arabia, consequently dampening the Middle East arms competition. These issues have attracted increased attention in recent times, notably after a pivotal agreement between the two countries in March 2023, marking the resumption of their political ties after a seven-year conflict.

Egypt and Iraq: amenities, environmental quality and taste for revolution

The Middle East and North Africa is a region marked by significant political turbulence. This column explores a novel dimension of these upheavals: the relationship between people’s satisfaction with, on one hand, the amenities to which they have access and the environmental quality they experience, and, on the other hand, their inclination towards revolutionary actions. The data come from the World Value Survey collected in 2018 in Egypt and Iraq.

Global value chains and domestic innovation: evidence from MENA firms

Global interlinkages play a significant role in enhancing innovation by firms in developing countries. In particular, as this column explains, participation in global value chains fosters a variety of innovation activities. Since some countries in the Middle East and North Africa display a downward trend on measures of global innovation, facilitating the GVC participation of firms in the region is a prospective channel for stimulating underperforming innovation.

Labour market effects of robots: evidence from Turkey

Evidence from developed countries on the impact of automation on labour markets suggests that there can be negative effects on manufacturing jobs, but also mechanisms for workers to move into the services sector. But this narrative may not apply in developing economies. This column reports new evidence from Turkey on the effects of robots on labour displacement and job reallocation.

Food insecurity in Tunisia during and after the Covid-19 pandemic

Labour market instability, rising unemployment rates and soaring food prices due to Covid-19 are among the reasons for severe food insecurity across the world. This grim picture is evident in Tunisia, where the government continues to provide financial and food aid to vulnerable households after the pandemic. But as this column explains, the inadequacy of some public policies is another important factors causing food insecurity.

Manufacturing firms in Egypt: trade participation and outcomes for workers

International trade can play a large and positive role in boosting economic growth, reducing poverty and making progress towards gender equality. These effects result in part from the extent to which trade is associated with favourable labour market outcomes. This column presents evidence of the effects of Egyptian manufacturing firms’ participation in exporting and importing on their workers’ productivity and average wages, and on women’s employment share.

Sustaining entrepreneurship: lessons from Iran

Does entrepreneurial activity naturally return to long-term average levels after big economic disturbances? This column presents new evidence from Iran on trends in entrepreneurship among various categories of firm size, sector and location – and suggests policies that could be effective in promoting entrepreneurial activities.

Do capital inflows cause industrialisation or de-industrialisation?

There is a clear appeal for emerging and developing economies, including those in MENA, to finance investment in manufacturing industry at home with capital inflows from overseas. But as the evidence reported in this column indicates, this is a potentially risky strategy: rather than promoting industrialisation, capital flows can actually lead to lower manufacturing value added and/or a reallocation of resources towards industries with lower technology intensity.