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As as scale that has the world and money as its weights, to me, this picture is good illustration of the topic at hand. It represents the significance of money on the economy, and how this is a fact that is acknowledged worldwide, but also affects the globe as a whole.

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Global Conflicts and Economy (WEBSITE #1)

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Global Conflicts and Economy (WEBSITE #1)

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As a whole, global conflicts can result in underdevelopment of countries. Conflict can cause the misuse of natural resources to increase, it can decrease crop production and also lower the portion of the "manufacturing sector" in the Gross Domestic Product.
Of course, there are many other results of conflict. The good thing about this topic is that although I am taking a global look at conflicts, the implications are related to Canada, because when the world faces an issue, no country is left unscathed.

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Author

Abstract

The presence of conflict affects people's economic incentives. Some sectors of activity flourish, while others suffer. For understanding structural problems in developing countries and designing appropriate post-conflict reconstruction policies, it is essential to understand in what ways conflict affects the structure of the economy. We develop a simple model of conflict and multiple sectors of activity, where conflict efforts, the allocation of factor endowments and the production outputs are endogenous. We predict that for moderately destructive conflicts labor-intensive sectors are most affected by fighting, while for highly destructive conflicts capital-intensive sectors suffer most. In the latter case, under some conditions it is also possible that - in the presence of endogenous conflict - an increase in the price of the capital-intensive commodity reduces the output of this same good. The model further predicts that export-sectors and sectors that require inter-temporal investments are particularly exposed to conflict activity. In the empirical part of the paper, we study the impact of various forms of conflict, separately and as an aggregate conflict index constructed with principal component analysis. We present some basic stylized facts about the effect of conflict on the productive structure of the economy. Conflict reduces the share of the manufacturing sector in the GDP, increases the exploitation of some simple natural resources (i.e. forestry) and reduces the production of crops. Using industrial level data for developing countries we study the channels through which conflict affects the manufacturing sector. As expected, we find that industries that are more institutional/transaction intensive are the ones that suffer most in conflictive societies. Laborintensive sectors are also negatively affected by conflict. It is also found that exporting industries and sectors requiring external financing suffer more during conflict. Our results are robust to sensitivity analysis.

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Handle: RePEc:zbw:gdec09:6

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References listed on IDEAS

1. Ernesto Dal Bó & Pedro Dal Bó, 2011. "Workers, Warriors, And Criminals: Social Conflict In General Equilibrium,"Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 646-677, August.

2. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade,"The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 569-600.

3. Paul Collier & Anke Hoeffler & Dominic Rohner, 2009. "Beyond greed and grievance: feasibility and civil war,"Oxford Economic Papers, Oxford University Press, vol. 61(1), pages 1-27, January.

4. Alesina, Alberto & Özler, Sule & Roubini, Nouriel & Swagel, Phillip, 1996. "Political Instability and Economic Growth,"Journal of Economic Growth, Springer, vol. 1(2), pages 189-211, June.

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Keywords

Conflict; Production Structure; Resource Curse; Post-Conflict Reconstruction;

JEL classification:

D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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The Effects of Conflict on the Structure of the Economy

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Downloadable! The presence of conflict affects people's economic incentives. Some sectors of activity flourish, while others suffer. For understanding structural problems in developing countries and designing appropriate post-conflict reconstruction policies, it is essential to understand in what ways conflict affects the structure of the economy.

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Economic Implications of Corona virus (WEBSITE #2)

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Economic Implications of Corona virus (WEBSITE #2)

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The need for social distancing is causing a major halt in business progression. The tourism and accommodation sectors, such as hotels, are severely affected.
The oil price has fallen drastically, because the need for transportation is not as paramount anymore.
Among many other examples, 3, 600 jobs have been lost in the air travel sector, 3,900 jobs have been lost in the retail sector, and 8,900 jobs have been lost in the automobile manufacturing sector.
It is hard to say how much worse things are bound to get, but there is a large economic disturbance right now.

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8 April 2020, 9:30 a.m.
(Disponible en français : Impacts de la COVID-19 sur certains secteurs de l'économie canadienne)
The COVID-19 pandemic is having a major impact on Canada's economy as a whole. Some industries have been particularly affected or will take a long time to return to normal.

Risk Factors

The following factors explain not only the extent of the negative effects on a given industry, such as job losses and bankruptcies, but also the speed of any recovery. Some of these include:

The nature of the production process - Does producing the good or delivering the service require employees to be close together? Are the processes primarily automated?

Demand for products and services - Demand drops for products and services considered non-essential when most Canadians stay home. Provincial governments determine whether or not each industry is essential.

Proximity to others when providing goods or services - Most cultural, sports and educational activities have been cancelled due to the proximity of participants in the delivery of the good or service. This was also the case for several other business activities (e.g., esthetics, restaurants).

Worker availability - Many people have had to self-isolate in order to protect their health or care for a child. As well, most seniors have limited their activities as they are at greater risk of complications if they contract the virus. As a result, the voluntary sector has been understaffed.

Vulnerability of businesses in the industry - Some sectors of Canada's economy are made up of a larger share of small and medium-sized enterprises (SMEs), which may not have the cash flow to offset significant revenue losses over a prolonged period.

Sectors at Risk

The Business Barometer, the Canadian Federation of Independent Business's index of levels of confidence among SMEs, fell from 60.5 in February 2020 to 30.8 in March. The index is based on SME owners' outlook on the health of their business for the coming year. As shown in Figure 1, the drop in confidence has been more pronounced in certain sectors.

Figure 1 - Business Barometer, Selected Sectors, 2020

Source: Figure prepared by the authors using data obtained from the Canadian Federation of Independent Business, Business Barometer - March 2020. Accessed 26 March 2020.

The six sectors presented in Table 1 account for approximately 29% of employment and 25% of output in Canada's entire economy.

Table 1 - Employment and Output in Canada, Selected Sectors

* Includes mainly passenger transportation other than urban transit.
** Excludes food stores and health and personal care stores.

Source: Table prepared by the authors using data obtained from Statistics Canada, Table 14-10-0202-01 - Employment by industry, annual, and Table 36-10-0434-02 - Gross domestic product (GDP) at basic prices, by industry, monthly, growth rates (x 1,000,000). Accessed 20 March 2020.

Accommodation and Food Services

A Restaurants Canada survey of food service companies across the country shows that many are considering permanent closure in the wake of COVID-19. According to the Hotel Association of Canada, as of 21 March 2020 hotel occupancy was less than 10% across the country. According to data from the Tourism Industry Association of Canada, the tourism sector could lose up to $6 billion per month during the pandemic and nearly 778,000 jobs in total. However, domestic tourism spending by Canadians accounts for 80% of the economic activity of tourism in Canada and this could increase if Canadians spend their summer holidays in Canada after the pandemic.

Arts, Entertainment and Recreation

The cancellation or postponement of many events in the cultural sector has had an impact on workers and several related tourism sectors. For example, Saskatoon Tourism estimated the economic impact of the Juno Awards at $9 million before they were cancelled in March 2020. The Banff Centre for Arts and Creativity and the Winnipeg Symphony Orchestra laid off 400 and 100 employees, respectively.

Transportation

Airlines - and the companies that serve them - have laid off thousands of employees. As well, some taxi companies have seen their ridership drop by nearly 75% since the beginning of the pandemic. However, road transportation is under a lot of pressure: truckers are considered essential workers during the crisis and continue to deliver freight between Canada and the United States. There has also been a significant increase in deliveries of online orders of all kinds.

Retail Trade

Grocery stores have been overwhelmed as consumers are stocking up more and eating out less. For other businesses, many purchases are not being made because they are being put off or will never happen. In some cases, online shopping is seeing stronger growth.

Oil and Gas Extraction

The price of oil has fallen significantly, as shown in Figure 2. The decline in prices is attributable to a decrease in demand for petroleum products used in transportation and a price war between some producing countries, including Saudi Arabia and Russia. Oil development projects such as the Bay du Nord project off the coast of Newfoundland and Labrador have been put on hold.

Figure 2 - North American Oil Price Per Barrel, March 2019 to March 2020 ($US)

Source: GLJ Petroleum Consultants, Price Charts.

Manufacturing

Major auto companies in Ontario have temporarily halted production to ensure the safety of their workers, but also in response to weaker global demand. Elsewhere in Canada, other companies have ceased operations; however, aluminum smelters will cut production. The manufacturing sector may be somewhat less affected than other sectors because manufacturers are able to build inventories.

Examples of Business Layoffs

Table 2 provides some examples of large layoffs announced in Canada. While some employers have laid off some of their employees, others have cut wages instead.

Table 2 - Selected Examples of Announced Layoffs in Canada
(As of 8 April 2020)

Source: Table prepared by the authors using data obtained from Maclean's, COVID-19: Canada layoff tracker, 8 April 2020.

Temporary or Permanent Changes?

It is possible that some of the changes already underway before, and amplified by, the pandemic may continue. This could be the case in the following areas:

Production of goods and services - Telework may become more popular as many businesses have had to use it, sometimes for the first time. Companies have laid off employees in "non-core" areas and some of these organizational changes may continue.

Supply of goods and services - E-commerce was already booming, but some consumers who had not yet used it - especially older ones - may continue to do so. Another example is the growth of telehealth and distance education.

Overall, the impacts of the pandemic on various sectors are not yet measurable since official data on output and employment in Canada's overall economy are not yet available. That said, using China as an example, the first monthly estimates show a drop of more than 20% in retail sales in January and February 2020 over the previous year.
Authors: André Léonard and Sarah Lemelin-Bellerose, Library of Parliament

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Impacts of COVID-19 on Selected Sectors of Canada's Economy - HillNotes

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8 April 2020, 9:30 a.m. (Disponible en français : Impacts de la COVID-19 sur certains secteurs de l'économie canadienne) The COVID-19 pandemic is having a major impact on Canada's economy as a whole. Some industries have been particularly affected or will take a long time to return to normal.

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Economic Implication of World War II (WEBSITE #4)

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Economic Implication of World War II (WEBSITE #4)

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The Gross National Product of Canada more than doubled during the war.
A lot of existing factories were reused to make war equipment and munitions. Several corporations were established, but because a large number of people were moving from rural areas to urban areas, there was a housing shortage.
However, the Canadian industry was able to produce $9,5 billion worth of war equipment, which ended up being substantial for the population at the time.

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The Canadian economy and the Second World War

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Canada's economy underwent dramatic changes during the Second World War, as Britain looked overse

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Economic Implications of WORLD War I (WEBSITE #3)

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Economic Implications of WORLD War I (WEBSITE #3)

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Because funds needed to be raised for the war and there was looming debt, the Canadian government borrowed money from Canadian citizens during World War 1. They acquired a debt of $2 billion, but owed most of it to Canadian citizens.
There was a possible risk of an economic crisis because manufacturing orders were cancelled, factories closed, and so on. But The War Economy (2020), says "the demand for war supplies, equipment, and shells soon provided economic stimulus and employment."

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Like most other combatants in 1914, Canadians expected the war to be short, victorious, and relatively inexpensive. They were wrong.

Traditional Finance, Untraditional War

Far from ending the pre-war economic recession, the war's outbreak at first worsened it, with layoffs, contract cancellations, and severe cutbacks in the already-troubled railway industry.

Ottawa sought money to pay the war's modest early expenses by borrowing in traditional capital markets - first Britain and then, as British loans dried up in response to domestic needs, the United States. Few observers believed that Canadian financial sources would need to be tapped before the war ended; fewer still supported using taxes to raise money to finance war expenditures, instead of borrowing it by raising war loans.

But the war did not end quickly. The effort required to sustain massive armies in the field rescued the Canadian economy from recession. It also required huge amounts of capital. A pre-war federal budget of $185 million had quadrupled by its wartime peak to more than $740 million. Debt quadrupled to $1.2 billion as well. Prior to the war, customs duties, postal rates, and tariffs on imported goods had accounted for more than 85 percent of government revenue. Higher duties and new tariffs alone could not hope to cover vastly higher wartime expenditures. Ottawa borrowed to finance the shortfall from an unexpected source: ordinary Canadians.

Borrowing from Canadians

Canadians' willingness to loan money to their own government by buying war bonds exceeded all expectations. No bond issue in Canadian history had raised more than $5 million, but Ottawa's first "victory bond" drive brought in $100 million, twice the initial estimate. Subsequent drives proved just as successful. Publicity campaigns, including tens of thousands of posters, linked buying bonds to the direct support and welfare of soldiers overseas and used a variety of messages to encourage contributions, from well-known poems to emotional imagery. Long-term interest rates of up to 5.5 percent for terms of up to 20 years were also a powerful inducement.

Total domestic bond purchases during the war exceeded $2 billion, ten times the amount of money raised abroad. Canada had financed the war by incurring more than $2 billion in debt, thereby passing the war's costs to future generations, but it owed most of this money to Canadian citizens, not foreign lenders. The success of the "victory bond" campaign would be repeated during the Second World War. Today's Canada Savings Bonds are the direct descendents of these wartime efforts.

Taxing Income and Profits

Wartime costs were not the only factors influencing the government's financial policies. As the war continued, political pressure grew on Ottawa to ensure that businesses and the wealthy paid their fair share of the financial burden. Labour organizations, farmers, churches, and other groups called for the "conscription of wealth." Periodic charges of war profiteering by corrupt officials or unscrupulous entrepreneurs made for sensational headlines and undermined the government's propaganda message that all Canadians should "do their bit."

New federal taxes on business profits in 1916 and personal incomes in 1917 - the latter a 'temporary' wartime measure - set important precedents, but the war ended before either had produced substantial results. In 1919, personal and corporate taxes combined accounted for only 3.4 percent of total federal revenues. Most Canadians paid no tax at all, and those who did pay, paid very little.

Evolution of a War Economy

The outbreak of war threatened Canada with economic crisis. Existing manufacturing orders were cancelled, some factories shut down, and construction halted on many pre-war civilian projects. Some feared that war would cause the collapse of Canada's already fragile economy. But the demand for war supplies, equipment, and shells soon provided economic stimulus and employment. Output grew and fears of collapse were replaced by the challenges of rapid expansion. Due to the combined demands of military service, industry, and agriculture, unemployment had virtually ceased in Canada by 1916.

Organizing Wartime Production

One of the greatest economic surprises of the war was the military's near-insatiable demand for vast quantities of artillery shells. Armies expended them by the millions in the great barrages and siege-like battles on the Western Front, and no Allied economy was organized to produce shells in anything near the quantities required.

Canada's Minister of Militia and Defence, Sam Hughes, initially established a Shell Committee to coordinate production, but its failure to deliver on contracts led to angry recriminations between Canada and Britain and widespread rumours of corruption.

Imperial Munitions Board

In late 1915, Prime Minister Borden replaced the Shell Committee with the Imperial Munitions Board (IMB), which answered solely to Britain but was run by a Canadian. Under well-known Toronto businessman Joseph Flavelle, the Board was organized according to sound business practices and hired professional managers to oversee its operations. It eased the problem of scarce labour by hiring 30,000 women to work in its factories and offices.

Impressive Expansion of Scope and Production

Under Flavelle's supervision, the Board oversaw an impressive expansion in wartime production, from only a few companies having the capacity to produce shells to, in 1917, dozens of companies, including crown corporations, that collectively produced some $2 million worth of goods per day.

The IMB's mandate later expanded to include propellants, brass casings, and complicated fuses. By 1917, almost one-third of all British shells were being manufactured in Canada. The IMB constructed ships and aircraft and developed airfields for a large pilot training program. By war's end, its 600 factories had completed some 103 naval vessels, 2,600 training aircraft, and 30 flying boats. When the IMB ceased operations in 1919, it was Canada's largest civilian employer, with over 289,000 employees.

Keep exploring with these topics:

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The War Economy - Finance and War Production | Canada and the First World War

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Like most other combatants in 1914, Canadians expected the war to be short, victorious, and relatively inexpensive. They were wrong. Far from ending the pre-war economic recession, the war's outbreak at first worsened it, with layoffs, contract cancellations, and severe cutbacks in the already-troubled railway industry.

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I think it is also important to take a look at past issues that shaped history, and World War I is one of those conflicts. World war one is very complex, and explaining and understanding it takes some thorough research. The video gives a summarized insight into the war.

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I choose a picture of the world map because the topic is about global conflicts. I wanted something that would show all the continents, just to give an extra emphasis on that aspect of the topic.

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Of all the past wars and conflicts, this is probably the one I have paid the most attention to over the years. People still face many injustices in this day and age, and because of underlying issues like the blaming of Jewish people, homosexuals, black people and so on, for the problems the Western culture faced, I wanted to learn more about it.  This video is oversimplified but it gives some background information of the factors that played into the rise of the war.

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10 Conflicts to watch in 2020 (VIDEO #1)

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10 Conflicts to watch in 2020 (VIDEO #1)

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I chose this video because it covers different issues to pay attention to in 2020. The issues covered range from actual war-like situations taking place in countries like Afghanistan to currency problems happening globally.

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Various types of global issues can severely impact economies. I want to take a look at different global issues that have had an impact on the economy, and how they have shaped the world we live in today. Also, with the rise of COVID-19 right now, I felt this would be a fitting topic, as it is a problem that is being faced worldwide.
The videos are explanations of the conflicts I will be using as references for different economic implications, and the websites give the detailed explanations of how the issues affected the economy.

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I cannot do this topic without talking about the most prevalent issue the world is facing right now.
This video addresses the how we need to appreciate the plethora of people at the front lines. It talks about the fact that although the virus itself is the main issue, there are also other issues like mental health problems, that are coming as a result of it.

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100+ Doctors Tell You The TRUTH About Battling Coronavirus