State-based armed conflict emerged as the top immediate risk for 2025 in the World Economic Forum’s new Global Risks Report, published this month as world leaders prepared to meet at Davos, Switzerland.
Why is conflict such a concern from an economic standpoint?
Economies that build peace provide fair opportunities and benefits, increase cooperation and raise the cost of violence. We can call this a peace dividend. This can create a virtuous circle whereby more social cohesion increases trust and cooperation in private transactions, which is good for the economy.
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About the author
Veronica Stratford-Tuke
Veronica Stratford-Tuke is head of peace economies at International Alert. She oversees work on economies that support lasting solutions to violence, including through business and investment. Prior to this, Veronica worked for the U.K. government’s Foreign, Commonwealth and Development Office, with over a decade of experience in policy, programming, and research on conflict and governance.
