The Economic Consequences Of Peace Agreements Essay

1564 Words Oct 19th, 2016 7 Pages
Most studies on the economic consequences of peace agreements have found that reaching an agreement usually leads to an outstanding economic dividend to their citizens. For example, we can look at the research conducted by the National Planning Department (DNP) in 2015 that used data from three of the largest data sources of armed conflicts and screened more than 117 countries that have suffered war as well. Looking at the study’s results, the evidence clearly shows a significant economic peace dividend in all of the countries studied, chiefly due to increased confidence on both the domestic and international fronts. Domestically, the peace dividend parlays into higher household consumption rates and higher investment, which jointly deliver a greater economic growth. Internationally, the effect on the country’s economy rises through an increase in foreign investment and in international trade through higher exports. Usually the effect is larger in the initial years after the agreement, but usually lasts for at least 10 years.

Though the agreement may seem too lenient on the FARC members, the agreement to end the conflict will provide chances for renewed economic growth and stability in Colombia that were previously unavailable. The government will be able to envelop its presence in territory previously held by the FARC, allowing the private sector to regain access to and develop natural resources, which will enable further economic growth for the country. The Finance…

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