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Economic Theories of Peace
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Capitalist Peace Theory
Capitalist Peace Theory posits that capitalist economies are less likely to engage in war with one another due to the mutual benefits of economic freedom and trade. Peace-related implications include the idea that encouraging market economies may contribute to global peace.
Negative Peace
Negative Peace refers to the absence of direct violence or war. However, it doesn't necessarily include justice or positive social relations. The concept highlights the risk of unresolved economic inequalities leading to future conflict if not addressed properly.
Microcredit
Microcredit is the provision of small loans to entrepreneurs in developing countries. It can empower individuals and improve community cohesiveness, thereby contributing to peaceful development by reducing poverty and economic desperation, which are often root causes of conflict.
Democratic Peace Theory
Democratic Peace Theory suggests that democracies are less likely to engage in war with one another due to mutual respect for civic rights and shared interests in maintaining stable trade relations. Peace-related implications include the promotion of democratic governance as a strategy for conflict prevention and long-term peacebuilding.
Resource Curse
The Resource Curse theory suggests that countries with abundant natural resources often experience less economic growth and more conflict. The implication for peace is that good governance and revenue management can mitigate the curse and promote stability.
Human Security
Human Security is a concept that extends beyond the protection against armed conflict to include economic, food, health, environmental, personal, community, and political security. The theory suggests that economic policies ensuring these securities contribute to peace by addressing the multi-dimensional needs of people.
Arms Trade Treaty
The Arms Trade Treaty is a multilateral treaty that aims to regulate the international trade in conventional arms. Its implication for peace includes the reduction of illegal arms flows that fuel conflict, thereby promoting economic stability and peace in regions affected by arms-related violence.
Peace Dividend
The Peace Dividend is the economic benefit that arises from the reduction of defense spending. It suggests reallocating military expenditures to social and economic development improves the well-being of citizens, potentially leading to a more peaceful society.
Structural Violence
Structural Violence refers to a form of violence wherein social structures or institutions harm individuals by preventing them from meeting their basic needs. The concept implies that economic inequalities and systemic discrimination contribute to conflict, suggesting that peace can be achieved by addressing these structural issues.
Dependency Theory
Dependency Theory argues that economic disparities between the center and periphery countries can lead to conflict and instability. To foster peace, there should be an emphasis on creating more equitable economic relations and reducing dependency of less-developed countries.
Economic Conversion
Economic Conversion involves redirecting resources from military to civilian use, which can foster economic stability and reduce the likelihood of conflict by decreasing reliance on military industries. Peace implications include job creation in peaceful industries and reduced militarization.
Peace Economics
Peace Economics is an interdisciplinary approach examining the economic factors that contribute to peace or conflict. It suggests that by understanding these factors—like resource distribution, employment, and economic growth—policymakers can create conditions conducive to peace.
Peace through Strength
The Peace through Strength doctrine holds that military power can deter aggression and maintain peace. It implies that by building strong defense capabilities and appearing resolute, states can prevent conflicts. The peace-related concern is the potential escalation due to arms race dynamics.
Development Aid
Development Aid is financial aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries. It can foster peace by reducing poverty and building infrastructure that supports stable societies.
Complex Interdependence
Complex Interdependence theory explains that states in the modern world are connected through multiple channels, including economic, environmental, and cultural ties, reducing the likelihood of conflict. The peace-related implication is that strengthening these multiple ties can lead to more peaceful international relations.
Rule of Law
The Rule of Law principle states that everyone, including the government, is accountable under the law. This promotes peace by ensuring fair economic practices, preventing corruption and abuse of power, and providing legal frameworks that foster stable and predictable business environments.
Liberal Economic Peace Theory
Liberal Economic Peace Theory proposes that economic interdependence among states reduces conflict probability because the costs of war outweigh the benefits. These economic ties lead to increased cooperation and peace due to mutual interests in preserving stable trade relations.
Positive Peace
Positive Peace is not merely the absence of conflict, but the presence of justice and equality in social systems. It emphasizes the role of economic policies in creating a fair society, which in turn contributes to durable peace by addressing the root causes of conflict.
Trade Liberalization
Trade Liberalization is the removal of trade barriers, potentially leading to economic growth and stability by promoting international cooperation. Peace-related implications include the argument that open trade policies can lead to greater international interdependence and peace.
Disarmament
Disarmament refers to the reduction or withdrawal of military forces and weapons. It has the peace-related implication of decreasing the potential for armed conflict and freeing resources for economic development, thus potentially contributing to stability and peace.
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