How War Affects Economies - Essay Example

Big Business Speech/Presentation Big Business Presentation. Hi, everyone! I am indeed pleased to be before you this day and make a presentation to you. I kindly request your attention as I make this speech about big business, concerning economic ties, trade and how political instability often disrupt them. Through this speech, I will try to explain how war and instability disrupt the economic stability of a country and affects the neighboring countries around it. A Brief Overview of the Draft. Based on Randa Sab’s article, the draft contained a detailed analysis of the Middle East. It looks at some of the conflicts and their effects on the economic stabilities of these countries. The investigations carried out in this overview confirm that any conflict brings down the economy of a particular state. The summary argues that post-conflict recovery depends on such factors as the economic level of the country, and the set institutions that are in power (Sab, 2014). It recognizes that there are other complex factors that may determine whether or not a country experiences post-conflict economic growth such as the duration of the war and the role of the international community in ending the conflict. It also seeks to look at the effect of war on the neighbouring countries. This includes many aspects such as the refugee burden, the financial situation of the refugees and other factors. This overview also looks at the effects of conflict in trade and other economic activities. Therefore, in the article, Sab seeks to inform us on how war affects the economic situation of a country and its neighbours. Additionally, it tells us how war influences trade and other economic activities that neighbor states may be involved in. Sab also shows us how conflict can directly affect the economy of a country and its neighbouring countries as well. A Brief Overview of the Final Essay The conflict in the Middle East has impaired the economic development of many of the affected countries. These wars negatively affect economic growth and cripple the structures of these economies (Bouri, 2014). They cause the inflation rates to rise and cause a huge deficit in current accounts. After the war, it is important for the country to go through a post-conflict recovery period. This recovery period is crucial because it helps jump-start the economy and strengthen the financial structured of the country (Ionica, 2012). War paralyses the economy of a country as well as that of its neighbouring countries. Many economic activities such as trade usually come to a standstill during the war period. We take an example of the occupation of Iraq in 2003.This period saw Iraq subjected to regular airstrikes where they were under attack by the USA. During this period, the economy was severely affected, but amazingly, it managed to survive (Costalli, Moretti, & Pischedda, 2014). After this severe period of invasion, Iraq surprisingly took one year to recover economically. Jordan, on the other hand, went through a similar war period and had a very slow recovery period, and it took 20 years to recover. Using the examples of Iraq and Lebanon, the final essay makes a detailed analysis of both economies and understanding how they had contrasting fortunes. This analysis will help grasp the concepts that see individual economies performing better than others do. From this, it is an indicator of what it takes to maintain a stable economic structure and maintain strong trade links with trade affiliated countries. Motivation It is indeed, interesting to learn about this topic. This paper explores how war affects economies. It reveals to us how conflict directly affects the economy and hampers economic growth. Many countries in the Middle East, who had stable economies now, have collapsed economies due to the effects of war. Such countries as Egypt, Libya, Iraq and Ukraine in Europe are facing uncertain political times due to conflict. The conflict has largely paralyzed these economies, and they are at a stage of slow economic recovery. The input of major world countries and global financial institutions will help boost these economies and possibly return them to their former glory. However, amidst all this, the primary source of motivation is the nation of Iraq, which has led by example on how an economy can bounce back from war and attain stability again. This country felt the effects of conflict and still was able to rise from that. In 2003, the USA invaded Iraq and left a trail of destruction uncertainty. After a year, Iraq had already recovered back to its former glory, mainly due to its powerful positioning as a world oil producer and seller. This has contributed largely to its ability to bounce quickly back from the effects of war. Relation to the course This course looks at economics and finances, and how international trade is affected by war. By observing this country, it is possible to know much about it. Therefore, we learn about this country’s position in the global economy, how they maintain economic ties with other countries and what they do to safeguard their economic interests. All this can help us know exactly what type of country we are dealing with and if they will be beneficial to us. Relevance to the Contemporary Management. Such countries as Iraq are imperative lessons on how people can properly manage the natural resources in their country. Despite war and political instability, Iraq had put measures in place to ensure that they have a very stable organization in place that could quickly rebuild despite the devastation of war. This is a very valid example of how national integration brings permanent economic structures in countries. The example set by Iraq goes a long way into showing the basics of contemporary management, and how it should be undertaken. This is a magnificent example of stable economic structure. Comments/Reflection This paper has been a valid example of the importance of the stable economic background in any country. Those Middle East countries that underwent painful spells, and were relatively stable, were able to bounce back faster and pick themselves up. The constant referral to Iraq is highlighted by the fact that it is a good example of economic stability. The primary concept picked from this speech is the importance of a countrys individual economic security, and the effects on neighbouring countries as well. This course is paramount in helping the student to realize fundamental core values surrounding regional economies. In addition, it has helped me understand how one country with a stable economy can influence its neighbours as well. This is exactly how the country will develop trade links with other similar minded countries. Thank you very much for your time and for letting me engage you in my speech. Bibliography Bouri, E.I., 2014. Israeli-Hezbollah War and Global Financial Crisis in the Middle East and North African Equity Markets. J. Econ. Integr. 29, 1–19. doi:http://dx.doi.org/10.11130/jei.2014.29.1.1 Costalli, S., Moretti, L., & Pischedda, C., 2014, The Economic Costs of Civil War: Synthetic Counterfactual Evidence and the Effects of Ethnic Fractionalization. HiCN Working Ionica, O., 2012. The Role of SME Sector in the Post-Socialist Countries’ Future. Int. J. Bus. Soc. Sci. 3, n/a. Iyortsuun, A.S., Akpusuugh, T.K., 2014. The Impact of the Global Financial Crisis on Business Development in Makurdi Metropolis, Benue State, Nigeria from 2007-2009. Int. J. Bus. Manag. 9, 64–76. Lechthaler, F., Leinert, L., 2012. Moody Oil - What is Driving the Crude Oil Price? (CER-ETH Economics working paper series No. 12/168). CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. Sab, R. (2014). Economic Impact of Selected Conflicts in the Middle East: What Can We Learn from the Past? IMF Working Papers. Read More