The Economics of Peace: A Nepalese Perspective

Understanding the importance of peace has been accorded high priority in many religions, such as Hinduism, Jainism, Buddhism and Sikhism. In recent years, many economists have realized the monetary value of peace. Peace is a pre-requisite for the development of infrastructural facilities like education, health, roads, irrigation, power and communications. Development activities are all shattered during periods of conflict. In Nepal, too, the decade-long conflict between 1996 and 2006 brought about colossal loss to life and property. Inequality of income and opportunities, together with poverty is the root cause of conflicts. In order to maintain permanent peace, it is essential to divert military expenditure to expenditure on economic activities, like the development of education, health and infrastructural facilities. Peace games, peace enterprises and peace mediation capacity also need to be developed, apart from developing the feeling of oneness in the society.