This is not controversial: peace leads to prosperity, to more peace and to further prosperity. It is a virtuous circle.
However, conflict across the world is growing. Currently, nearly 2 billion people, a quarter of the world’s population, live in fragile and conflict-affected countries. This includes 75% of the world’s extremely poor.
The cause of conflict can be complex but is typically due to competition over resources. The economic paradox of conflict is that it results in a diminution of the value of the resources being fought over. This is the contrasting vicious circle.