Global conflicts often become the world’s main focus, affecting various aspects of life, especially the economy. The causes of global conflict are varied, ranging from resource inequality, ideological differences, to geopolitical competition. One of the main causes is the unequal distribution of natural resources. Rich countries with resources tend to have greater power, creating tensions with poorer countries. Additionally, different political ideologies, such as capitalism and communism, often lead to conflict. A clear example is the cold war between the United States and the Soviet Union, which not only affected their countries but also other countries around the world. Religious and cultural differences can also trigger conflict, as seen in conflicts in the Middle East. The impact of global conflict on the world economy is very significant. First, conflict can disrupt international trade. When a country is involved in a conflict, trade with other countries tends to be hampered. For example, the conflict in Ukraine resulted in economic sanctions that disrupted gas and oil supplies to Europe, causing a spike in global energy prices. Second, foreign investment is also affected. Investors tend to stay away from countries experiencing political instability, resulting in decreased investment which can affect economic growth. In addition, economic downturns in one country can spread to other countries, especially in this era of globalization. Third, the conflict resulted in increased government spending on defense and security. Funds that should have been used for infrastructure development and education were diverted to finance military activities. This has an impact on people’s quality of life and the potential for long-term economic growth. Lastly, global conflict also worsens food security. When countries are involved in war or tension, food production and distribution is often disrupted. As a result, food prices soared, triggering inflation and increasing poverty rates in affected countries. Overall, global conflicts have complex causes and broad impacts on the world economy. Understanding this relationship is important for creating effective resolution strategies and maintaining global economic stability. By addressing the root causes of conflict, the world can prevent wider negative impacts and ensure sustainable economic growth.
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