Handbook on the Economics of Conflict
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Handbook on the Economics of Conflict

Edited by Derek L. Braddon and Keith Hartley

The Handbook on the Economics of Conflict conveys how economics can contribute to the understanding of conflict in its various dimensions embracing world wars, regional conflicts, terrorism and the role of peacekeeping in conflict prevention.
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Chapter 11: Peacekeeping, Private Benefits and Common Agency

Ugurhan G. Berkok and Binyam Solomon


* Ugurhan G. Berkok and Binyam Solomon 11.1 INTRODUCTION The ending of the Cold War in the late 1980s and subsequent unleashing of various forces held in check by the superpower confrontation resulted in increased instability and the rise of multiple interstate and intrastate conflicts throughout the world. As a consequence, international demands for peacekeeping resulted in a proliferation of peacekeeping missions1 in many continents. During the Cold War, the frequency, size and mandate of peacekeeping missions were generally modest, as were the demands on the soldiers taking part in those missions. The increase in activity following the dismantling of the rigid Cold War international security environment was partially motivated by optimism for a stronger and more active United Nations (UN), following from the reduction in tension among permanent members of the Security Council. Increased enthusiasm for peacekeeping and the broadening of international intervention to include aspects of human rights protection, as well as enhancement of humanitarian and economic development initiatives, were expected to be the result (Boutros-Ghali, 1992).2 In financial terms, the annual UN peacekeeping cost before the end of the Cold War was typically around US$200 million per year (in constant 2005 dollars). But since then it has averaged about US$3 billion. In 2008, peacekeeping costs were expected to reach US$6 billion (all in constant 2005 US dollars; see Figure 11.1). The previous peak of $4 billion was achieved in 1994 mostly as result of the political turmoil in Central and 7010 6010 5010 4010...

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