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Chairman, Institute for Economics and Peace

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1 Chairman, Institute for Economics and Peace
Steve Killelea Chairman, Institute for Economics and Peace 3rd November 2010 ISTAT, Rome

2 The Institute for Economics and Peace

3 What Does IEP Do? Policy Education Analysis Consulting E-publishing
Promote and inform public debate with a view to impact public policy by providing an accessible and high quality forum for discussion through debates, seminars, lectures, dialogues and conferences. Education Present educators with solid empirical data to further study the impacts of peace on economies. Stimulate the study of the issues by others, and help draw the work of those in related fields. Analysis Lead research and rigorous theoretical and empirical analysis around the economies of peace and the Peace Industry. Collaborate with experts internationally. Consulting Develop strategic expertise in the area of peace economics, and conduct client sponsored research for commercial businesses, foundations and other organizations. E-publishing Publish research results and policy recommendations widely and freely, including annual release of the Global Peace Index.

4 The Global Peace Index

5 Motivation for focus on Peace
Major challenge facing humanity is sustainability Challenges are global, urgent and require unparalleled co-operation Peace is the prerequisite for solving these problems

6 Why an Index? Never been done before Peace is poorly understood
Peace should and can be measured Through measuring peace its texture can be analysed

7 Global Coverage Albania, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Macedonia, Moldova, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Turkmenistan, Ukraine, United Kingdom, Uzbekistan Canada, United States of America Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay, Venezuela Afghanistan, Australia, Bangladesh, Bhutan, Cambodia, China, India, Indonesia, Japan, Laos, Malaysia, Mongolia, Myanmar, Nepal, New Zealand, North Korea, Pakistan, Papua New Guinea, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam Algeria, Angola, Bahrain, Botswana, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Congo (Brazzaville), Cote d' Ivoire, Democratic Republic of the Congo, Egypt, Equatorial Guinea, Ethiopia, Gabon, Gambia, Ghana, Iran, Iraq, Israel, Jordan, Kenya, Kuwait, Lebanon, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Morocco, Mozambique, Namibia, Nigeria, Oman, Qatar, Rwanda, Saudi Arabia, Senegal, Sierra Leone, Somalia, South Africa, Sudan, Swaziland, Syria, Tanzania, Tunisia, Uganda, United Arab Emirates, Yemen, Zambia, Zimbabwe

8 Defining Peace Peace is more than the absence of war. The perfect state would have no police, jails or crime Defined peace as the “Absence of Violence” This definition allows for measurements of both internal and external peacefulness “Positive Peace” is uncovered via statistical analysis with other data sets, indexes and attitudinal surveys

9 23 Indicators 5 measures of ongoing conflict such as: number of conflicts fought and number of deaths from organised conflict 10 measures of societal safety and security including: number of displaced people, potential for terrorist acts, number of homicides, number of jailed population 8 measures of militarisation such as: military expenditure, number of armed service personnel, ease of access to small weapons Visits to doubled since last year Weighted on a 1-5 scale Overall score weighted 60% for internal peace and 40% for external peace

10 23 Indicators Uses both quantitative and qualitative indicators
Sourced from highly respected organisations Estimated by EIU analysts where data is missing Weighted on a 1-5 scale Overall score weighted 60% for internal peace and 40% for external peace

11 23 Indicators weight indicator 4 Perceptions of criminality in society
Number of internal security officers and police 100,000 people Number of homicides per 100,000 people Number of jailed population per 100,000 people Ease of access to weapons of minor destruction 5 Level of organized conflict (internal) Likelihood of violent demonstrations Level of violent crime Political instability Respect for human rights 2 Volume of transfers of major conventional weapons, as recipient (Imports) per 100,000 people

12 23 Indicators weight indicator 1 Potential for terrorist acts 5
Number of deaths from organized conflict (internal) 2 Military expenditure as a percentage of GDP Number of armed services personnel per 100,000 people Financial support to UN Peacekeeping missions 3 Aggregate number of heavy weapons per 100,000 people Volume of transfers of major conventional weapons as supplier (exports) per 100,000 people Military capability/sophistication 4 Number of displaced people as a percentage of the population Relations with neighboring countries Number of external and internal conflicts fought Estimated number of deaths from organized conflict (external)

13 Global Support The Index has been endorsed by hundreds of individuals and organizations, including Nobel Laureates, government officials, renowned academics and business leaders. They include: HH Dalai Lama; Kofi Annan; Archbishop Desmond Tutu; President Martti Ahtisaari; Betty Williams; Muhammad Yunus; Amnesty International; President Jimmy Carter; Professor Joseph Stiglitz; Sir Mark Moody-Stuart; Her Majesty Queen Noor of Jordan; His Royal Highness Prince El Hassan bin Talal of Jordan; Sir Richard Branson and Ted Turner

14 Partners and Uses Inclusion in SIPRI Yearbook
Case Study for Cranfield University Inclusion in World Bank data sets and website Inclusion in OECD website Partnership with Aspen Institute to promote research outputs Used in the Ibrahim Index of African Governance Used in Building Blocks of Peace education curricula of IEP Inclusion in UNDP Users Guide to Measuring Fragility and Conflict Inclusion in UN University materials for studies worldwide Foundation for Global Symposium of Peaceful Nations Inclusion in Inter-American Development Bank governance indicators database

15 GPI Methodology

16 Defining Peace NEGATIVE PEACE POSITIVE PEACE CULTURE OF PEACE The UN has defined a culture of peace as one involving values, attitudes and behaviours that: reject violence, prevent conflicts by addressing root causes solve problems through dialogue and negotiation Absence of war or conflict If the country is not involved in violent conflicts with neighbouring states or suffering internal wars it has achieved a state of peace A more complete evaluation of peace should account for the conditions which are favourable to its emergence Freedom, human rights and justice are included

17 and measuring it Two objectives Measures Outcome
scoring model index ranking 149 nations across 23 indicators Rank the nations of the world by their relative states of peace and facilitate cross-country comparisons Outcome Methodologically sound and unbiased measurement of peace. Provides the raw material for a worldwide debate on peace Quantify and measure the importance and possible causality of a range of potential drivers that may create peaceful societies correlate and statistically analyze data sets, attitudinal surveys and indexes to identify potential determinants of peace

18 Methodology Improved year on year
Comparative data available for 2007 to 2010 2010 improvements: Heavy Weapons Sought expert opinion from SIPRI – now sourced form Military Balance (IISS) and the UN Register of Conventional Arms Categories weighed by destructive capability Displaced Persons Previously only refugees counted IDP’s data sourced form Internal Displacement Monitoring Centre

19 GPI 2010 Results

20 The Results

21 The Results The 10 Most Peaceful Countries Rank Country Score 1
New Zealand 1.188 2 Iceland 1.212 3 Japan 1.247 4 Austria 1.290 5 Norway 1.322 6 Ireland 1.337 7 Denmark 1.341 Luxembourg 9 Finland 1.352 10 Sweden 1.354

22 The Results The 10 Least Peaceful Countries Rank Country Score 149
Iraq 3.406 148 Somalia 3.390 147 Afghanistan 3.252 146 Sudan 3.125 145 Pakistan 3.050 144 Israel 3.019 143 Russia 3.013 142 Georgia 2.970 141 Chad 2.964 140 DRC 2.925

23 A Less Peaceful World? Majority of the 23 indicators that constitute the index have risen, indicating an overall decline in the level of peace The most marked increases in the sum of scores have been in: The number of homicides per 100,000 people The likelihood of violent demonstrations The potential for terrorist attacks Most of the overall increases in these three indicators were confined to relatively few countries Political instability has also increased slightly across the world. This proved to be the most influenced indicator – changes were registered in just over 60% of the countries The most marked decreases in aggregate scores have been in: The measure of the respect for human rights – slight improvement overall Estimated number of deaths from organized conflict (external)

24 The Study of Peace Top 5 Risers Top 5 Fallers Country Score, 2010
Ch. In score, Rank, 2010 Ch. In rank Ethiopia 2.444 -0.107 127 +6 Mauritania 2.389 -0.088 123 Hungary 1.495 -0.080 20 +7 Lebanon 2.639 -0.078 134 +3 Haiti 2.270 -0.060 114 Top 5 Fallers Country Score, 2010 Ch. In score, Rank, 2010 Ch. In rank Cyprus 2.013 0.276 76 -25 Russia 3.013 0.264 143 -2 Philippines 2.574 0.247 130 -10 Georgia 2.970 0.234 142 -3 Syria 2.274 0.225 115 -18

25 Risers and Fallers Since 2009
Top 5 Risers Ethiopia Change in rank: +6 Sharp drop in the number of Ethiopian fatalities resulting from external conflict. Decrease in military expenditure as a % of GDP. Improved assessment of the respect for human rights. Mauritania Fall in the assessment of internal conflict and violent demonstrations. Improvement in relations with neighbouring countries. Hungary Change in rank: +7 Drop in latest published data on homicide rates. Improved assessment of the respect of human rights. Lebanon Change in rank: +3 Fall in the perceptions of criminality in society. Falls in the level of organised conflict and violent demonstrations. Increase in political stability and assessment of the respect for human rights. Decrease in the number of deaths from internal conflict. Haiti Reduction in violent demonstrations and greater respect for human rights. Drop in the number of fatalities from internal conflict.

26 Risers and Fallers Since 2009
Top 5 Fallers Cyprus Change in rank: -25 Changes to our measurement methodologies for two series, aggregate number of heavy weaponry and refugees (now includes internally displaced people) are the major contributors to change. Russia Change in rank: -2 Increase in violent demonstrations and political instability. Increase in measure of heavy weaponry. Increase in number of deaths from external conflicts. Philippines Change in rank: -10 Increase in the perceptions of criminality in society. Increases in the latest data for the homicide rate and proportion of people in jail. Increase in the number of deaths from internal conflict. Georgia Change in rank: -3 Increase in violent demonstrations. Decrease in political stability. Increases in military expenditure as a % of GDP and imports of weaponry. Increase in conflict indicator and number of displaced people. Syria Change in rank: -18 Changes to our measurement methodologies for aggregate number of heavy weaponry a major contributor to the deterioration in the peace score. Also, fall in respect for human rights and increases in homicides and displaced people.

27 The Results Geography and Key Attributes Ranking states of peace
Small, politically stable, democratic countries top the ranking 15 of the top 20 are Western or Central European Most are members of a supranational body Island nations fare well Geographical rankings Western Europe far exceeds other regions Western Europe Central and Eastern Europe Asia Pacific Latin and South America Middle East Africa

28 Four-Year Trends

29 GPI Indicator Movements 2007 - 2010
Score change Change Military expenditure as a percentage of GDP -6.44% Ease of access to weapons of minor destruction -1.54% Potential for terrorist acts -0.20% Respect for human rights -0.16% Military capability/sophistication 2.56% Relations with neighbouring countries 2.76% Number of homicides per 100,000 people 5.13% Number of deaths from organised conflict (internal) 5.16% Number of external and internal conflicts fought 15.57% Although more countries decreased military expenditure as % of GDP, military expenditure increased Increased conflicts mainly Afghanistan Homicide increase mainly 2009 data- improved data

30 Four Year Trends – Regional Changes
Change in peacefulness % Change on 2007 Country Average Sub-Saharan Africa -0.34% -0.01 Middle East and North Africa -0.21% 0.00 Latin America 3.02% +0.06 Asia-Pacific 3.48% +0.07 Central and Eastern Europe 3.97% Western Europe 4.13% North America 4.27% Sub-Saharan Africa - decrease in ease of access to small weapons and number of conflicts fought and improved relations with neighbouring states. Middle East & North Africa – increased political stability and a reduction in military expenditure as a percentage of GDP.

31 Four Year Trends – Top, Bottom Nations
Country Change in peacefulness % Change on 2007 Score change New Zealand 0.00 Finland 4.17% +0.05 Ireland 7.58% +0.10 Norway 7.93% Denmark 14.89% +0.18 Country Change in peacefulness % Change on 2007 Score change Sudan -7.31% -0.24 Iraq -2.95% -0.10 Israel 3.48% +0.11 Russia 7.17% +0.21 Pakistan 19.32% +0.53

32 Four Year Trends – Regional Changes
Change in peacefulness % Change on 2007 Average country change G20 3.71% +0.07 ASEAN 3.84% +0.08 OECD 4.78% BRIC 5.05% +0.12 EU high-debt countries 5.15% South Asia 6.27% +0.11 All blocs performed worse than the global average of 2% down G20, OECD: major falls Canada, Turkey, Italy, Mexico EU high debt countries are Spain, Portugal, Italy and Greece

33 Four Year Trends – Regional Changes
Publication Year GPI average Score Countries whose score has improved Countries whose score has worsened Countries with no score change 2007 1.94 2008 1.92 68 39 13 2009 1.96 36 77 7 2010 1.98 41 75 4 1 being peaceful, 5 being un-peaceful Overall the world became 2% less peaceful

34 Business and Peace

35 GPI Correlations with Per Capita Income
For every 10 places a country rises on the GPI: Per capita income increases by US$3,100 Consumer spending on food and non-alcoholic beverages increases by US$132 Consumer spending on leisure and recreation increased US$144 Consumer spending on household goods and services increases by US$87 Consumer spending on housing increases by US$309 Consumer spending on footwear and clothing increases by US$87 Consumer spending on communications increases by US$42

36 Economic Impacts of Peace
If it could be demonstrated that peaceful environments had a better propensity for stability, could long term debt be more aggressively priced? If there was a relationship between peacefulness and growth, would more capital inflows result? If there was a relationship between peace and growth, would new investment funds be created that invested in areas of the world that had the fastest improving prospects of peace?

37 Economic Impacts of Peace
Lower risk Lower interest rates Lower discount rates on future earnings for investments Projects pay off over long periods Larger portfolio of investment containing more stable investments Long term planning increased government spending on infrastructure such as roads, schools, universities

38 Business and Peace Reductions in violence positively impact most businesses Market potential increases with rising living standards Costs reduce Management is more focused on strategic issues rather than risk mitigation There are many measures of violence – different types of violence have different impacts on different products and markets UN Global Compact Survey 80% of senior executives believe that the size of their markets increase with peace 79% of senior executives believe that their costs reduce with increasing peace

39 Monetary Value of Peace

40 Valuing Peace – How to value peace to the global economy
Cost based on known literature and conservatively estimated Little literature that estimates many forms of violence Some literature estimates terrorism at 10% of GDP in 2002 IADB estimates 1.6% to 5% of GDP costs from violence in various Latin American countries WHO estimates inter-personal violence in US at 3.3% of GDP UNDP estimates African civil wars at 2.2% to 3.3% of GDP per year per conflict Static Peace – Value shifting from violent industries to Peaceful Industries Dynamic Peace – Additional value from suppressed or inefficient economic activity

41 Monetary Value of Peace
US$ Trillion Year Actual GDP Dynamic dividend Static Dividend Total Dividend 2006 $48,802 $4,027 $2,147 $6,174 2007 $54,975 $4,435 $2,418 $6,853 2008 $60,755 $5,112 $2,673 $7,785 2009 $57,522 $4,889 $2,530 $7,419 Total $18,463 $9,768 $28,231 Static Peace - Value shifting from violent industries to Peaceful Industries Dynamic Peace – Additional value from suppressed or inefficient economic activity

42 Monetary Value of Peace
Valuing Peace – How to value peace to the global economy Total four year value of peace – US$ trillion Assuming the world could be 25% less violent, the total additional or redirected economic activity would equal US$7.06 trillion over four years Additional US$1.75 trillion per annum What could this activity finance? Millennium Development Goals US$100B p.a. EU climate change €48B p.a. US debt interest US$232B p.a. Repay Greek debt US$550B

43 Value of Peace – US Industry Breakdown
Sector Internal pGDP External pGDP Agriculture 7.15 6.22 Mining 14.76 12.83 Utilities 13.88 12.07 Construction 26.38 22.94 Manufacturing 74.28 64.59 Wholesale trade 37.14 32.29 Retail trade 40.16 34.92 Transportation and warehousing 18.82 16.36 Information 28.21 24.53 Finance and insurance 48.30 42.00 Real estate, rental, leasing 80.89 70.34 Professional, scientific, technical services 49.69 43.21 Management of companies and enterprises 12.87 11.19 Administrative and waste management services 19.34 16.82 Educational services 6.27 5.45 Health care and social assistance 46.25 40.22 Arts, entertainment, recreation 6.36 5.53 Accommodation and food services 17.97 15.63 Other services, except government 14.82 12.89 Government 83.45 72.57 Total US$ US$ US$ Billion [1] US sectoral data sourced from the Bureau of Economic Analysis

44 The Violence Crisis El Salvador was “lucky”
=> here is the case of Nicaragua The case of Nicaragua Data: 1950 – 2007; real per capita GDP (I$); base year = 2005 Source: computed from Penn World Tables 6.3 Slide courtesy of Jurgen Brauer

45 The Violence Crisis And here is the case of a country that had no war
=> but its neighbors did The case of Costa Rica Data: 1950 – 2007; real per capita GDP (I$); base year = 2005 Source: computed from Penn World Tables 6.3 Slide courtesy of Jurgen Brauer

46 The Violence Crisis Blue line: ppp-GDP Red line:
UNODC projection assuming that DOM’s homicide rate were cut in half (to the level of Costa Rica’s homicide rate). The case of the Dominican Republic Data: 1950 – 2007; real per capita GDP (I$); base year = 2005 Source: computed from Penn World Tables 6.3; UNODC (2007) Slide courtesy of Jurgen Brauer

47 The Violence Crisis Real per capita GDP (I$); base year = 2005
time Per capita GDP Actual GDP Trend line of potential GDP Cumulative GDP losses violence post-violence Index = 100 The pothole diagram Real per capita GDP (I$); base year = 2005 Source: computed from Penn World Tables 6.3 Slide courtesy of Jurgen Brauer

48 Correlations With Other Indices

49 Other Indexes Well Being Indexes
UNDP Human Development Index r = Legatum Institute Prosperity Index r = 0.72 Yale Environmental Sustainability Index r = 0.63 Yale Environmental Performance Index r = Economic Indexes World Bank Ease of Doing Business Index r = 0.54 World Economic Forum Global Competitive Index r = 0.58 TI Corruption Perception Index r = 0.71 World Bank Knowledge Economy Index r = 0.60 Frazer Institute Economic Freedom Index r = 0.62

50 Correlations with Global Peace Index
Social Attributes of Peaceful Nations Aspects of Nationalism Less likely to see their culture as superior Believe that their nation’s morality is average in foreign policy Active Civil Society More likely to perceive their media as having a lot of freedom Less likely to believe that their government can limit expression of ideas More likely to support leaders who take a compromising approach More likely to believe that women and men make equally good leaders Respect for Human Rights More likely to reject the use of torture More likely to respect human rights

51 Correlations with Global Peace Index
Social Attributes of Peaceful Nations Aspects of Globalization More likely to believe anyone can work in their county Less likely to believe that globalization is growing too quickly What Citizens Think of Other Nations Peaceful nations are perceived most positively by the citizens of other nations – Highest correlation of all attitudes Support for the Use of the Military Reject the use of torture Support military action when sanctioned by the UN More likely to disagree with the need to US military force to maintain order

52 Correlations with Global Peace Index
Social Attributes of Peaceful Nations Moral and Religious Aspects Think that their politicians do not need to believe in God Believe that good and evil are contingent and not absolute More likely to believe that it is not necessary to believe in God to be moral Less likely to believe that globalization is growing too quickly Economic Attitudes More likely to believe that anyone can work in their country Less likely to believe that globalisation is growing too quickly The strongest correlation was that nations that were perceived positively by other nations were the most peaceful r = 0.88

53 Characteristics of Peace

54 Resilience of Peace Why do Peaceful nations perform well?
Tolerant and open societies are more likely to learn and adapt Violence needs reactive responses, peace allows for more forethought The future is more predictable in peace, allowing for better planning Peaceful societies are less likely to create alienation More likely to co-operate and support in times of crisis Freedom of information allows a better flow of information through society Broad education base creates a larger pool of human capital

55 Structural Aspects of Peace
Free flow of information Sound Business Environment Well-functioning Government Equitable Distribution of Resources Low levels of corruption Peace and Resilience Acceptance of the rights of others High levels of education Good relations with neighbors

56 Structural Aspects of Peace
Well-Functioning Government – GPI Correlations Index Name Source Correlation coefficient Worldwide Governance Indicators Voice and Accountability Political Stability Government Effectiveness Regulatory Quality Rule of Law Control of Corruption World Bank -0.61 -0.87 -0.70 -0.66 -0.76 -0.72 Political Democracy Index EIU 0.56 Freedom in the World Survey Freedom House 0.57

57 Structural Aspects of Peace

58 Structural Aspects of Peace
Well-Functioning Government – Other Correlations Index Name Source Correlation coefficient Political instability Economist Intelligence Unit -0.81 Corruption perceptions Transparency International 0.76 Freedom of the press Reporters without borders -0.63 15-34 year old males as a % of adult population UN World Population Prospects -0.62 The extent of regional integration GDP per capita 0.61 Respect for human rights Political Terror Scale -0.60 Life expectancy World Bank 0.59 Ease of access to weapons of minor destruction -0.56 Relations with neighbouring countries Mean years of schooling UNESCO 0.55 Global Gender Gap World Economic Forum Level of organised conflict (internal) -0.55 Human Rights Index Escola de Cultura de Pau -0.51 Perceptions of criminality in society -0.50

59 Structural Aspects of Peace
Sound Business Environment – GPI Correlations Index Name Source Correlation coefficient Corruption Perception Index Transparency International -0.70 Global Competitiveness Report World Economic Forum -0.59 Economic Freedom of the World Index Frazer Institute -0.58 GDP per capita EIU 0.57 Ease of Doing Business Index World Bank 0.52

60 Structural Aspects of Peace

61 Structural Aspects of Peace
Sound Business Environment – Per Capita Income Correlations Index Name Source Correlation coefficient Corruption perceptions Transparency International 0.83 Global Competitiveness Report World Bank 0.77 Political instability Economist Intelligence Unit -0.66 Human Development Index UNDP 0.63 Functioning of government 0.61 Likelihood of violent demonstrations -0.61 Life expectancy 0.59 UNESCO mean years of schooling UNESCO 0.57 GPI SCORE Global Peace Index -0.57 Political Democracy Index 0.56 Respect for human rights Political Terror Scale -0.56 Ease of access to weapons of minor destruction -0.54 The extent of regional integration -0.53 Number of homicides per 100,000 people UNODC -0.52 Level of violent crime 15-34 year old males as a % of adult population UN World Population Prospects -0.51 Infant mortality per 1,000 live births -0.50

62 Strategic Business Analysis

63 Peace in Strategic Business Analysis
Business and Peace Strong correlation with Global Peace Index Per capita income and peace: r = 0.57 Ease of Doing Business Index: r = 0.52 Business Competitive Index: r = UN Global Compact Business Survey 80% of senior execs believe markets grow with improved peacefulness 79% think their costs drop with improved peacefulness

64 Competitiveness and Peace
Faltering market Consider merit of Current position Mature market Exploit current competitive advantage High Market Penetration Low Nascent market Avoid building market presence Market opportunity Extend or establish competitive advantage Low Peacefulness High

65 Several Traditional Business Tools Might be Considered in Light of a Region’s Peacefulness to Provide Insight Industry lifecycle Profit Time Initial invest takes time to reach break even. This is based on the cost of the investment, the amount of time to become profitable and the size of the profits The level of violence will affect the cost of investment, the length of time to deploy and the ROI

66 Several Traditional Business Tools Might be Considered in Light of a Region’s Peacefulness to Provide Insight Competitor profitability Return Peace Through analyzing the return that competitors are getting by the peacefulness of their markets and the momentum of peacefulness within those markets new competitive strategies can be developed

67 Several Traditional Business Tools Might be Considered in Light of a Region’s Peacefulness to Provide Insight Business segmentation Price sales & service product What is the relation between price for the same business segment in different markets when rated by peacefulness

68 User Value Based Advantage Can be Considered in Light of a Region’s Peacefulness, Using Several Typical Tools Customer segmentation Customer buying process Need Search Buy Validate Young Socials Busy Parents Domestics Active Teens The Gatekeepers Mature Uninvolved Many consumers view peace as highly desirable – how can they be viewed as a consumer segment, what are their emotional needs and how can products be created to fulfill their needs

69 Discontinuous Forces of Change – Including Peace Can Be Examined Using Several Tools
Deconstruction audit A business, product or market is affected by many factors outside a company’s control such as government policies, corruption, rule of law. Peace is a proxy for order, peaceful markets will be more transparent therefore easier to deconstruct and easier to understand

70 Questions and Answers


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