The Impact of Peace Accounting on Economic Growth of Sub-Saharan African Countries

Abstract

Introduction Security challenges can be a threat to both economic development and peaceful coexistence. Sustaining a viable economy via development and growth can therefore be said to be a core objective of most countries of the world.A threat to peaceful environment can result from environmental and atmospheric pollution, oil spillage, destruction of Ozone layers, global warming and climate change. (Ironkwe & Success 2017). And if left unattended to might affect the economic performance of a country. Bove and Eila (2017) stated that economics and security are greatly intertwined. According to Corfee-Morlot, Parks, Ogunleye and Ayeni (2018) development today is often associated with GDP, but that idea is relatively modern. GDP as a measure of development was sensible, but it had limitations as a measure of human welfare. Institute for Economics and Peace (2018) noted that Sub-Saharan Africa countries have the lowest energy access rates in the world. Electricity reaches only about half of its people (IEA, 2018). Economic growth in the region is also relatively low at an estimated 2.8% percent in 2018, compared to 7.1% in South Asia (International Monetary Fund, 2018). This lack of energy access which is one sources of conflict between citizens and government of some of the sub-Saharan African countries has suppressed economic growth and sustainable development (World Bank, 2017). According to Mueller and Tobias (2016) the setbacks in economic performance in terms of economic growth that many developing countries have experienced in recent times can be majorly attributed to violent conflict. Sandlers and Enders (2010) opined that conflicts, violence, terrorism, insecurity can raise the costs of doing business in terms of higher insurance premiums, expensive security precautions, and larger salaries to at-risk employees. Moreover, the recessions experienced during periods of violent conflicts are major factor for much lower average growth rates over time in fragile countries such as the Sub-Saharan African countries. (Mueller & Tobias, 2016). Natufe, (2001) noted various environmental neglect and misunderstandings between the resultant companies and the host communities have led to several violent confrontations, severe ecological damage, human and food insecurity. All these security issues may cause economic set back in a country given the involvement of the financial resources, human resources, material resources and even the environmental impact. Okoro and Amachi (2016) opined that most nations are now trying to measure the cost of curtailing these domestic crises. Studies such as Gobat and Kostial (2016); Balami,