section_path: Society and culture/Economic effects
section_name: Economic effects
paragraph_text: Economic effects
  
  In countries with high levels of violence, economic growth can be slowed down, personal and collective security eroded, and social development impeded. Families edging out of poverty and investing in schooling their sons and daughters can be ruined through the violent death or severe disability of the main breadwinner. Communities can be caught in poverty traps where pervasive violence and deprivation form a vicious circle that stifles economic growth. For societies, meeting the direct costs of health, criminal justice, and social welfare responses to violence diverts many billions of dollars from more constructive societal spending. The much larger indirect costs of violence due to lost productivity and lost investment in education work together to slow economic development, increase socioeconomic inequality, and erode human and social capital.
  
  Additionally, communities with high level of violence do not provide the level of stability and predictability vital for a prospering business economy. Individuals will be less likely to invest money and effort towards growth in such unstable and violent conditions. One of the possible proves might be the study of Baten and Gust that used " regicide " as measurement unit to approximate the influence of interpersonal violence and depict the influence of high interpersonal violence on economic development and level of investments. The results of the research prove the correlation of the human capital and the interpersonal violence.
  
  In 2016, the Institute for Economics and Peace, released the Economic Value of Peace Archived 2017-11-15 at the Wayback Machine report, which estimates the economic impact of violence and conflict on the global economy, the total economic impact of violence on the world economy in 2015 was estimated to be $13.6 trillion in purchasing power parity terms.