1. Economics of Peace and Security: The Costs of the War in Iraq Juan Carlos M. Coll PEKEA Bangkok, Nov. 2004

2. Economics and war The objectives of war : –Peace & security –Political power –Economic benefits –Others… Can these goals be achieved by other means? Can wars net benefits be measured?

3. Cost in terms of human life Invading coalition: 1,000 deaths Iraqi forces: 7,000 deaths Civilian: 25,000 deaths, 50,000 injured Long run effects of depleted uranium The Third World

4. Costs in terms of security Human rights Weakening of: –International law –United Nations –Democracy among allied nations Psychological impact Strengthening of terrorist organizations Crime increase in Iraq

5. Quantifiable Costs (Iraq & world) Iraqi petroleum industry Iraqi health infrastructure Iraqi schools destroyed Unemployment Iraqi environment Human heritage

6. Quantifiable Costs (USA & world) USA war budget: 151.1 B$ Costs of contracts and subcontracts of reconstruction USA debt, deficit, and inflation Gas prices & business bankruptcy Transaction costs for unfulfilled contracts –uncertainty regarding the future –unilateralism invalidating international agreements

7. Benefits Power Security and liberty Quantifiable economic benefits Benefits by criminal activities

8. Conclusion Can these goals be achieved by other means? Can wars net benefits be measured? Can we add deaths, human rights and financial costs and benefits? Whose benefits are to be taken into account?

9. PEKEA Bangkok, Nov. 2004 Economics of Peace and Security: The Costs of the War in Iraq Juan Carlos M. Coll coll@uma.eswww.eumed.net/paz/ Economistas por la Paz y la Seguridad