Expert group meeting on Structural threats to social integrity: Social roots of violent conflict and indicators for prevention 18-20 December 2001, United Nations, New York, NY Organized by: Social Integration Branch Division for Social Policy and Development Department of Economic and Social Affairs Session 2: Structural threats to social integrity “ON THE ECONOMIC ORIGINS OF CONTEMPORARY CIVIL WARS ” S Mansoob Murshed Institute of Social studies (ISS) PO Box 29776 2502 LT The Hague, Netherlands Murshed@iss.nl DECEMBER 6 th 2001 SUMMARY: All societies are characterised by some degree of conflict over political and civil rights. These conflicts may be based on social class, ethnicity, religion, region or some combination of these factors. Since economic growth and development is impossible without a large measure of social stability, investment in institutions for non-violent conflict resolution is as important to development as investment in physical or human capital. Development economists have traditionally discussed the design of policy independently of conflict and its occurrence, these being seen as issues for political scientists. But the implications for social conflict of economic decisions cannot be ignored in this way. Similarly, the potential for conflict and civil war in retarding growth and development are equally important. Many of today’s conflicts have their origin in economic factors such as the contest over resource rents, and the relative deprivation of clearly identifiable social groups resulting in the ethnic dimension to most civil wars. Ultimately, violent internal conflict implies the degeneration or breakdown of the social contract. INTRODUCTION Traditionally war has been viewed as an irrationa l act, brought about by misunderstanding and coordination failure. It has also been seen as something that occurs between nations. Today most armed conflicts occur between groups within the same nation state. So once the interests of belligerents are taken into account, conflict may be the product of rational decisions, even if it is of a bounded or myopic rational choice variety. Furthermore, the desire to control natural resource rents, socio - economic fragmentation, poverty, inequality, and institutional breakdown all play a role in contemporary civil wars. Economic analysis, particularly the areas of economics dealing with endogenous public choice, has much to say about these areas. All societies are characterised by some degree of conflict over political and civil rights, employment opportunities, and access to social and economic services. These conflicts may be based on social class, ethnicity, religion, region or some combination of these factors. Since economic growth and development is impossible without a