Effects of Armed Conflicts

Armed conflicts in developing countries such as Sudan have severe consequences for the country’s economy and infrastructure. Besides, war leads to a reduction of human capital due to the increase in the mortality rate. It may also result in increased corruption and illegal activities, which harm economic growth. The infrastructure projects financed by the international community may be terminated. There will be a disruption of foreign investments due to the existing insecurity. International trade will be disrupted, affecting exports and imports, thereby affecting foreign exchange. The funds allocated for infrastructure and other economic activities may be diverted to resolving conflicts.

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The developed nations do not experience the same extent of consequences because of the proper and efficient legal and other various institutional systems. They also do not rely much on foreign aid, thereby making the impact less limited.