Discuss the role of international trade in economic Essays

Discuss the role of international trade in economic Essays Discuss the role of international trade in economic Essay Discuss the role of international trade in economic Essay Discuss the function of international trade in economic development, with peculiar accent on inauspicious motions in the footings of trade states, which depend chiefly on the export of primary merchandises. [ 3000 words ] Introduction The foundation of economic sciences is based on the construct of apportioning the scarce resources expeditiously so that economic goods and services can be provided to the people who have unlimited demands and wants. Resources are by and large classified into three chief classs, human resources, physical resources and natural resources. Human resources with the usage of their cognition and skill tend to change over the natural resources into physical resources, which farther helps them to use the scarce resources expeditiously. It is a known fact that the construct of growing and trade are inter-related. The thought stems from the basic construct of‘optimum/maximum use of scarce resources’. Trade facilitates the transportation of resources, which ensures that they are utilized and optimal public-service corporation has been derived from them. International trade adds to it a planetary dimension, which promotes the thought that resource handiness is dispersed and it must be expeditiously utilised on a planetary graduated table instead than at a domestic degree merely. It is a common belief that international trade has led to considerable economic growing and development non merely for industrialized economic systems but besides for developing states likewise. The undermentioned paper will analyze and critically evaluate international trade’s part to economic development. The paper will besides analyze the motions in the footings of trade. Footings of trade can be defined as the monetary value they receive for their exports relative to the monetary value states have to pay for the monetary value of their imports. Sloman ( 2006:641 ) defines footings of trade as, â€Å"the monetary value of index of exports divided by the monetary value index of imports and so expressed as a per centum. This means that the footings of trade will be 100 in the base year† Economic growing is a widely debated topic. Several theories related to economic growing and development has been around to explicate the causes of economic growing and development. With the transition of clip extra variables like engineering, alterations etc. have besides been included to supply an account. For the intent of this paper the definition provided by Todaro and Smith ( 2003 ) will be considered. Todaro and Smith ( 2003 ) specify economic growing as the steady procedure by which the productive capacity of the economic system is increased over clip to convey about lifting degrees of national end product and income. [ 1 ] Simon Kuznet, defined a country’s economic growing as, â€Å"A long term rise in capacity to provide progressively diverse economic goods to its population, this turning capacity based on progressing engineering and the institutional and ideological accommodations that it demands.† [ 2 ] Economic growing and economic development are frequently used interchangeably. The classical economic experts in foregrounding the cardinal difference between economic growing and economic development stated, â€Å"Economic growing refers to the increasing ability of a state to bring forth more goods and services. Economic development †¦ implies that persons of that state will be better off and takes into history alterations in economic and societal constructions that will cut down or extinguish poorness.† [ 3 ] Governments, around the Earth are continuously concentrating on economic development. A separate subdivision of economic sciences, ‘development economics’ has emerged which analyses the factors taking to economic development. Empirical surveies have presented theories, which explain the rhythm of economic development. Todaro and Smith ( 2003 ) province that in rigorous economic sciences footings economic development refers to the capacity of a national economic system, whose initial status has been more or less inactive for a long clip, to bring forth and prolong an one-year addition in its Gross National Product ( GNP ) at rates of 5 % -7 % or more. In add-on to the above, it is besides a planned change of the construction of production and employment in a mode where there is a displacement from agricultural dependance to industrialization, every bit good as, it should bespeak an betterment in certain societal indexs like, additions in literacy, schooling, wellness cond itions and services, were besides seen as chief step of development. The definition of economic development has besides evolved over the old ages. However, empirical grounds indicated that while economic growing degrees were achieved by the development states, but it failed to better the criterion of life of the people. As a consequence economic development was redefined to integrate decrease or riddance of poorness, inequality and unemployment within the turning context of a turning economic system. [ 4 ] Therefore from this position, economic development non merely ensures that there is growing in pecuniary footings but besides in footings of the over all good being of the people. It is critical to understand that merely when the human ‘resource’ develops will the other resources like the natural resources and physical resources be expeditiously utilized excessively. For case the development that adult male has made since the ice age can merely be attributed to the accomplishments, endowments and abilities of human existences, which has evolved and developed. This has farther led to the development in engineering, which has ensured that the same resources are bring forthing more benefit. This procedure needs to go on for development. To explicate the construct graphically, the Production possibility frontier, which represents the efficient allotment of resources, would switch to the right. Harmonizing to the paper produced by Puga and Venables ( 1998 ) the logic of spacial agglomeration implies that development can non continue at the same time in all states. Alternatively there is a group of rich states and a group of hapless 1s, and development takes the signifier of states being drawn in bend out of the hapless groups, and taken through a procedure of foray development into the rich group. [ 5 ] Puga and Venables ( 1998 ) strongly believe that economic development may non be a gradual procedure of convergence by all states. They argue that both import permutation and one-sided trade liberalization may be successful in pulling industry, nevertheless, they attract different sectors and they believe that public assistance degrees are higher under trade liberalization. A paper published by DTI [ 6 ] highlighted that international trade has led to the universe going more economically mutualist. It has farther stated that an addition in the volume of universe trade has been supported by a steady diminution in trade barriers, assisting to prolong planetary growing. This has been possible because a diminution in trade barriers has led to a alteration in the construction of international trade. New information and communicating engineerings have had a profound consequence, for case some services, which could merely be provided domestically, can now be traded internationally. Economic theories and country’s experience warrant the fact that economic systems, which trade more, be given to turn faster. Trade occurs because it is a profitable thing to make. It is believed that openness to merchandise in footings of taking barriers, for both, imports and exports strengthens the drivers of productiveness, by enabling a more efficient allotment of resources, by supplying greater chances to work economic systems of graduated table ; by exposing the domestic economic system to greater competitory force per unit areas ; by honoring invention and supplying entree to new engineerings and by increasing inducements for investing. Thus the above strengthens the statement that trade is good for any state as it helps in maximizing the use of scare resources globally instead than for a specific state or country. In add-on to the above, trade additions picks for the consumers and reduces costs for the providers. Hence it is a win-win state of affairs for everyone. TERMS OF Trade International free trade which had been considered as the engine of growing, led to the economic development of today’s economically advanced economic systems. Quickly spread outing export markets provided an extra stimulation to turning local demands that led to the constitution of big graduated table fabrication industries. Less developed states ( LDCs ) could borrow money from the developed states at a really low involvement rate thereby increasing production finally taking to a more diversified industrial construction. However, today the state of affairs is really different for the LDCs with the exclusion of some of the East Asiatic states. The developed states have continued to turn at a faster gait. Technological promotion has meant that developed economic systems are able to do cheaper and develop better merchandises, and frequently they are the man-made replacements for traditional LDC primary trade good exports. Acerate leaf to state it has upset the footings of trade for the LDC. Sloman ( 2006 ) states that a country’s footings of trade are determined by the demand and supply of imports and exports and their several snaps. This will further find the monetary value at which goods are traded and impact the rate of exchange. Thus a country’s additions from the trade will be greater the less elastic its ain domestic demand and supply of tradable goods, and the more elastic the demand and supply of other states. Therefore it can be said that trade allows states to accomplish a higher degree of public-service corporation by devouring on a higher societal indifference curve. The maximal addition from trade is achieved by devouring at the point where the universe monetary value is digressive to both the production possibility curve and a societal indifference curve. Besides, additions from trade besides arise from diminishing costs in the signifier of economic systems of graduated table, increased competition from trade and the transmittal of growing fr om one state to another and therefore there may besides be non-economic advantage from trade. DTI argues that it is of import to open UK markets and put an terminal to unjust subsidy patterns, which distort universe markets peculiarly in agribusiness and labour intensive goods where protection is highest and developing states are most competitory. It farther provinces, â€Å"it is the responsibility of the developed economic systems toface our historical duties and assist those developing states whose export gross has become progressively dependent on our Byzantine preferential governments and who could confront important accommodation costs during the passage to a just universe trading system†[ 7 ] Harmonizing to Greenway ( 1998 ) the replacing of a quota by a duty can be considered liberalisation of trade policy, which can assist work out the job. McKay, Morrissey and Vaillant ( 1997 ) , believe that there are two types of trade liberalisation, which have the intent of bettering the anti-export prejudice. The first is import liberalisation, which makes it easier to import goods by cut downing duties and/or other limitations. The 2nd are efforts to promote exports by increasing inducements, which will switch resources into the export sector. However, they believe that trade liberalisation is of greater benefit to the fabrication sector than the agricultural sector. And since export publicities are seldom directed towards the agricultural sector, the greatest inducements for bettering the production of the agricultural sector will be the consequence of an accommodation of the exchange rate. Greenway ( 1998 ) explains that in the short to medium term, effectual trade reforms will hold an impact on the composing of end product, as resources switch from inefficient import replacement production to export orientated activities. In bend this would impact the degree and composing of factor use and on the construction of trade. Whilst the short to medium tally responses are on factor allotment, , the medium to long term the impacts should be felt on accretion procedures: capital formation, the growing of existent end product and the growing of trade. The inquiry of altering comparative monetary value degrees for different trade goods highlights another of import quantitative dimension of the trade jobs historically faced by developing states. Economists have referred to the relationship or ratio between the monetary value of a typical unit of exports and the monetary value of a typical unit of imports astrade good footings of tradeand it is normally expressed as Phosphorusten/ Pm, where they represent the export and import monetary value index. It must be noted that the trade good footings of trade tend to deteriorate for a state if Px/ Pmfalls, that is export monetary values decline comparative to import monetary values, even though both may lift. Historically the monetary values of primary trade goods have declined comparative to manufactured goods. As a consequence, the footings of trade have on the norm tended to decline over clip for the non-oil exporting developing states while demoing a comparative betterment for the devel oped states. Empirical surveies suggest that existent primary-product monetary values have declined at an mean one-year rate of 0.6 % since 1900 [ 8 ] . It is of import to foreground here that the entire value of export net incomes depends non merely on the volume of these exports sold abroad but besides on the monetary value paid for them. If export monetary values decline, a greater volume of exports will hold to be sold simply to maintain entire net incomes invariable. Prebisch and Singer ( 1950 ) challenged the impression that a developing country’s swap footings of trade would increase due to comparatively celerity of technological advancement in the industry, which would force down the comparative monetary values of the makers, exported by the high-income economic systems. They believed that it would be the developing country’s footings of trade that would worsen due to a figure of grounds, viz. Many of their exported merchandises would function as inputs into the production of imported makers. Thus a autumn in the monetary value of a trade good would hold different deductions for the manufacturer and the buyer. As per Engel’s jurisprudence, the income-elasticity of demand for the merchandises produced by low-income economic systems would lift less than that for merchandises incarnating higher engineering. The monetary value for primary merchandises would be less monetary value medium, therefore an addition in the demand for end product of low-income state exports would merely come from a big disproportionate autumn in monetary values. They end product for low income states would be capable to a greater squeezing on monetary values and borders as primary merchandises were capable to low barriers to entry. It must be noted that this focal point on the commodities-manufactures footings of trade has been the topic of extended argument. It is now widely accepted that for most portion of the 20th century, the swap footings of trade did so run against trade goods, and they were more in favor of manufacturer’s. Several theoreticians have presented statement in favor of curtailing trade. They justify their base by stating that in certain developing states, industries might be at an babyhood phase – so while they have comparative advantage but they do non hold the substructure to defy foreign competition, which means they require protection. Second, the demand for primary merchandises in the universe is reasonably income inelastic and therefore grows really easy ; in this scenario free trade does non function as an engine for growing, alternatively it encourages’ country’s economic systems to go locked into a form of primary production. Thus it may forestall the industries’ to spread out in sectors like fabrication that have higher income snap. Traditional trade theory suggests that country’s should merchandise in those trade goods in which they have a comparative advantage. This theory has been challenged of several evidences. It has been argued that comparative costs tend to alter over clip ; with the acquisition of new accomplishments and an addition in the capital stock. This may ensue in the underdeveloped state deriving a comparative advantage in the fabrication sector instead than the primary merchandises sector. Furthermore, the benefits from trade for a primary merchandise may non be accrued to the subjects ; alternatively the foreign company or the foreign stockholders would derive more. It may ensue in adversely act uponing gustatory sensations. Peoples might non be able to afford improved merchandises available in the foreign markets, which they do non hold, entree to ; this will non advance economic development. Furthermore, there are long-run balance of payments jobs. Long term tendencies in international trade has caused jobs in three ways ( Sloman, 2006: 727 ) : Exports have grown easy Imports have grown quickly The footings of trade have moved against them. The slow growing in demand for primary exports has led to chronic current history balance of payments jobs for primary exporters. In the short tally balance of payments jobs is caused by immense fluctuations in the monetary values of primary merchandises. Fluctuations in monetary values consequences in greater uncertainness for primary exporters. The Doha Development Agenda has taken on this issue farther to turn to the issues refering developing states. I Decision In drumhead it can be said that international trade has led to economic growing and development nevertheless, it has non been at the same gait for developing and developed states likewise. Advancement in engineering has enabled developed states to profit from it, nevertheless, LDCs have non gained much advantage, and alternatively it has adversely affected their footings of trade. It must be noted for economic development to be meaningful ; the gait of development must be standard for all. Developed states are now gaining the importance and are taking the duty to guarantee that footings of trade are non inauspicious for LDCs. The involvement of developing states must be protected so that they are non restricted to exporting primary merchandises at the cost of fring out on deriving a comparative advantage in the fabrication sector. The duty of economic development on a planetary graduated table lies every bit much in the custodies of the developed economic systems every bit much as it is the duty of domestic economic systems whether ‘developed’ or ‘developing’ . The trade understandings are a good move towards guaranting that the involvements of developing states are protected and they besides follow a consecutive procedure of growing and development as did the now ‘developed’ economic systems. Therefore, every bit much as free trade is of import, the footings of trade have to be in favor of all concerned as merely so will at that place be maximal use of resources and consistent economic development. Therefore in decision it can be said that international trade has doubtless played a important function in economic development, nevertheless there have been inauspicious motions in the footings of trade of states, which have depended chiefly on primary merchandises. Bibliography Gillis, M. ,Economicss of Development,( 2001 ) , W.W.Norton A ; Company Ltd. Gwartney, James D. , Stroup, Richard L. , and Sobel, Russell S. ,Economicss Private and Public Choice,( 2000 ) , Ninth Edition, The Dryden Press. Meier, G.M. and Rauch, J.E. ,Leading Issues In Economic Development,( 2000 ) , Seventh Edition Oxford University Press Perkins, Radelet, Snodgrass, Gillis and Roemer,Economicss of Development,( 2001 ) , Fifth Edition, Oxford University Press. Sloman, J. ,Economicss,( 2006 ) , Sixth edition, FT Prentice Hall. Todaro, M.C. and Smith S.C. ,Economic Development,( 2003 ) , Eighth Edition, Pearson Addision -Wiley Yotopoulos, P. , and Nugent J. ,Economicss Development,( 2004 ) , Cambridge University Press Documents, Diaries and Articles DTI, and HM Treasury,Trade and the Global Economy: The function of International Trade in productiveness, economic reform and growing,May 2004 Harris, C.J. , and Kulkarni, K.G. ,The Role of International Trade and Policy in Economic Growth: A instance of Tanzania,Global Business Review 5:2 ( 2004 ) , Sage Publications Kaplinsky, R. ,Revisiting the Revisited Footings of Trade:Will China Make a Difference? ,Institute of Development Studies Jacobsen, M, Werth, A. , and Vorley, B. ,International Agricultural Reform and Power balance in Agrifood ironss,September 2003, Policy Views on Trade and Natural Resource Management, International Centre for Trade and Sustainable Development, 1

Crime analysis 2 Coursework Example | Topics and Well Written Essays - 250 words

Crime analysis 2 - Coursework Example Calls for service are among the most common types of information mapped by many police departments, according to a RAND study. (Schwabe, Davis, Jackson p. 22) However, calls for service do not reflect crime, they are simply calls for service until the officers arrive and assess or address the situation. One reason calls for service should not be used is that they do not necessarily represent crime occurring. Alternatively there is the possibility that the calls are regarding the same subjects, due to the potentially repetitive nature of the 911 call system if one used the service data they run the risk of redundant responses and data. Another reason why calls for service should not be used is that they can also contain errors that regularly occur as a result of information input at the time. This is reason enough to not utilize service data calls, though there is the additional reason that the calls themselves may in fact be false calls. Schwabe, Davis, Jackson, W, L, B. (2001) "Chal lenges and Choices for Crime-Fighting Technology Federal Support of State and Local Law Enforcement." RAND. 22. Print.

College No Essay

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KapYong Battle April 1951 The Korean War Term Paper

KapYong Battle April 1951 The Korean War - Term Paper Example The battalion was not the regular army of Canada but it was sent by the Canada at relatively time of peace and its main intention was to perform the garrison duty. However, the Stone used his wartime expertise and provided training to his men and enabled them to contribute against the renewed Chinese offensive force. The Canadian battalion was then attached to the 27th British Commonwealth Infantry Brigade during which it remained engaged in different battles and skirmishes. These fights added to their confidence and they learnt to fight on the harsh and hilly terrain of Korea. They became part of the UN force and marched north in order to fight the Chinese force and North Koreans in order to remove from the South Korea. Though the Chinese were considerably greater in number as compared with the battalion but the Canadian battalion consisted of volunteers resisted and fought with them will their full potential and didn’t allowed the Chinese force to attain their war objective by overcoming the Canadian battalion. The training provided by Jim Stone and effective communication and coordination between the members of the battalion and their leaders resulted in their success in the battle. The following essay aims to examine the contribution of battalion in the war that did not had proper training and war equipment to fight against the Chinese force in the Kap’Yong battle but they succeeded to defeat the huge Chinese army. The basic objective of the essay is to examine the effectiveness of the decision of Canada not to use its regular army but to deploy the volunteers that proved to be the most effective and efficient war force sent by Canada throughout the Korean War. The battalion was equipped with some excellent attributes that allowed them to succeed against Canada. They overcame and adopted the circumstance of war and show dedicated commitment to their leader. The essay describes the initial strategies and war tactic employed by the Lieutenant Co lonel Jim Stone who struggled very hard and efficiently to accomplish his mission of defeating China and not to let it invade the city of Seoul. The decision of Canada to create special battalion for the war was a different but successful step. The battalion comprised of two third volunteers that take some unconventional moves in the war and bravely fights against the Chinese force. It has been unveiled that Canada decision of using volunteer force in the Kap’Yong battle was an important and successful war strategy that allowed the army to hold their position. Kap’Yong Battle – Historical Background The battle of Kap’Yong began on the 22nd of April and lasted till the 25th of April 1951. The Chinese People’s Liberation Army was fighting with the UN forces comprising of the forces sent by Australia, Canada and Britain. The Chinese soldiers were almost five to one UN force but the outnumbered UN force prevailed and Chinese forced had to take backward steps after the Kap’Yong battle. The Chinese were better than the UN force in many ways because they were well equipped with the war weapons and war training. They were also huge in numbers due to which it was expected that the Chinese would be able to successfully overcome the UN force at Kap’Yong but it was due to supportive contribution of the Canadian battalion that these Chinese were failed at this spot and Seoul was protected by the UN forces. The ground for the

Motivations Of Greed In Civil War Politics Essay

Motivations Of Greed In Civil War Politics Essay Civil war is a form of conflict and security threats which causes poverty and impedes growth and development, Civil war is the most common form of massive violence and is highly destructive to society, life and the economy. James D. Fearon (2006) explained civil war to be a violent conflict between organized groups within a country that are fighting over control of the government, one sides separatist goals, or some divisive government policy, it is an intrastate war fought as a result of a rising insurgence against the government. Most writers believe that not all conflicts are civil war, for a conflict to be recorded as a civil war, 1000 people must have been killed with at least 100 from each side. Every society is characterized by certain degree of conflict over economic services, political and civil rights, access to social services and employment opportunity. These conflicts are triggered by discrimination against specific group, region, religion, social class, ethnicity or a c ombination of any of these factors (Murshed and Addison). Civil wars are characterized by wide spread losses of lives more of which are civilian women and children, cases of rape and lawless society as the state power falls, powers are only with those holding weapons during war. Civil war has a huge economic impact on a nations economy as most of the resources are directed to destruction, skills are lost and the damage on the infrastructure cripples economic development and activity. For instance the loss of electricity supplies during war hinders production activities and transportation, the uncertainty that war brings, discourages investment, studies have shown that countries grow at approximately 2.2 percent slower during war than during peace. (Heo, 2007, p.11) The impact of civil war is largely influenced by the nature of the countrys economy. Countries with strategic resources such as diamonds and oil would have a higher impact on global economy compared to countries with limited resources i.e. the conflict in Iraq reduced oil production and caused the international price of oil to increase. Civil war is much more common than international war; most conflicts have occurred within the confines of a sovereign state and put two or more groups against the government or against one another, (Heo, 2007 p.12 and Collier and Sambanis, 2005). Civil war has been a major conflict since World War II, especially after decolonization of the British empires in certain region i.e. Africa. Since 1990s, there have been a large body of research on the causes of civil wars, the most popular understanding of the causes of civil war and results analyzed by economist are termed Greed and Grievance. In this paper we are going to look at some civil war since post -world war II, causes of civil war and the greed and grievance cause of civil wars. Some Civil Wars since Post- World War II Civil wars have been a major conflict since World War II. A total of 225 armed conflicts from 1946 to 2001 were recorded of which 163 were conflict that occurred between the government of a state and internal opposition groups without the intervention from other states. According to Heo (2007), full scale civil war started in Costa Rica in March 1948, when President Teodoro Picado Michalski prolonged the transfer of power after he lost the presidential election; there was a war with an estimated death of 1,000. 1956 to 1959 Cuban communist revolution and civil war took place, 5,000 lives were lost during the war. The fighting in Lebanon between several religious and political factions took place in 1958 and ended in 1959 with 1,300 deaths. After independence in 1960, tensions between the Turkish minority and the Greek majority increased in Cyprus, inter communal conflict and civil war took place from 1963 to1967, an approximate of 1,000 people died, (Heo, 2007, P.2-3). Nigeria also experienced civil war in the late 1967, an intrastate conflict between the self-proclaimed republic of Biafra and the Nigerian military government (Uppsala). Another war returned to Lebanon in 1975 to 1976 between the Christians and the Muslims, an approximate of 60,000 people died, the war continued in Lebanon at irregular intervals with many serious violent outbreak until 1992. Uganda experienced civil war from 1981-1994, as the revolt against the government established after the overthrow of Major General Idi Amin grew, it was the precursor for the war in Uganda, the war caused more than 500,000 lives. The insurgence against the Papua New Guinea government which started in Bougainville island in1988 took many lives, this crisis originated as a result of the growing concerns over the operation of the Panguna gold mine and copper. War continued in Cambodia when the extreme communist group was overthrown in 1979 by Vietnam, the nature of the war changed when the Vietname se withdrew in1989, (Heo, 2007, 3-4). Civil war continued throughout the world at different time in different region, but is said to be more common in some regions particularly the developing Asia (east and south Asia and Oceania), they have had a very high incidence of war from 1950 -2001. Latin America also witnessed a severe conflict in the 1980s and former Soviet Union in the 1990s. In the 1970s and 1980s, there was more bloodshed in sub-Saharan Africa and the Middle East. But by the end of the 1990s, more people were being killed in sub-Saharan Africas war than in the other parts of the world put together, (Croker et al, 2007). Source: Uppsala conflict data programme 18/02/2010 Causes of Civil War Data has shown that conflicts are more common in low income Africa; Collier (2007) developed the notion of the conflict trap to understand why conflicts are highly centered in low income Africa. This traps which are: natural resource trap, the trap of being landlocked with bad neighbors, the conflict trap and the trap of bad governance in a small country, shows how different economic, social and political factors make a country vulnerable to civil wars. Global data analyzed by Paul Collier and Anke Hoeffler covering forty years to understand why some country at most times have overcome civil war, and why others could not, they used statistical approach to see what factor in a society can trigger civil war; this includes social factors (like inequality, ethnic and religious composition of the society), politics (the level of democratic political rights), history (like decolonization time) and economic factors (Collier 2004). The most dominant of all are economic factors, according to Collier (2004), there are three factors that could trigger civil war; a countrys rate of growth, the level of income and structure. If a country is poor and is dependent upon natural resource exports, the country is likely to experience a civil. Africa is one region with such economic characteristics and explains the reason for the high rate of civil war in Africa. Africa also has a large ethnic difference as most of the wars are fought amongst ethnic group e.g. the hutu and the Tutsi war in Rwanda. These conflicts can be traced to the power structure created by the colonial rulers as they grouped long-feuding tribes under the same national identity. The power passed on from the colonial masters made one group to rule over the other group which later turned to severe inter-tribal rivalry and has now turned into conflict. As tribalism grew, the fight for central power and control of natural resources increased, this was the c ase of democratic republic of Congo, Angola, Liberia and Sierra Leone as their greed grew for the control of natural resources (Rupesinghe and Anderlini, 1998) The greed cause of civil wars The greed causes of civil war are common amongst countries with lootable natural resource and are dependent on these resources. Collier (2004), explained that these natural resources yield what is termed rents- meaning making more profits that are higher than the normal level needed. The selfish desire to control these natural resources creates a politics of corruption and a politics of violence as these natural resources can also be used to finance opportunistic rebellions. According to Collier (2004), there are six ways by which natural resource rents can increase the risk of violence, four of which involves political economy and the other two are straight economy. The political economy involves the struggle to control the revenues from the natural resources, these rent-seeking shifts public funds from its original purpose of achieving all the necessities for the supply of public goods, providing low or no social and economic infrastructure that the society needs. The society loses twice as other resources are used frivolously in the struggle for resource rents and the provision for public goods drops. Nigeria provides a good example of this kind of politics for oil rents. Natural resources can also cause civil war by detaching the government. This is because governments that are rich in natural resources do not need other tax revenue from their electorates, unlike in some societies where electors pay high taxes and they question the government on how the tax money is used. (No taxation without representation). But this is indeed not the same with countries rich in natural resources; the government is able to disregard the interest of the population (No representation without taxation). Some society believes that the resource rents does not belong to the common people, hence the detachment. Mobutu of Zaire is a striking example of this detachment. Natural resources also leads to secessionist political movements as the inhabitants of that area might feel that their resources are being embezzled by corrupt and alien elite. Most African secessionist war has often been associated with natural resources; Kanga, Biafra and Cabinda are examples of such wars. The last political route by which natural resources can advocate civil war is that it provides funds used to finance rebel groups. Leaders can purchase arms and also pay recruits from the revenue gotten from these resources. Rebel groups have access to natural resources in different ways. One is to protect the company or exporters, to have their own extractive businesses; another is the concession of natural resource rights in anticipation to finally have control over the territory. The gangs in the Niger delta region of Nigeria, the rebels of Laurent Kabila in Zaire, the RUF in Sierra Leone, and the Sasson-Nguesso in Congo Brazzaville, are examples of rebels financed from the proceeds of natural resources. The work of Fearon (2004) concludes that civil war resulting from coup or revolutions tends to be short because the technology for coup depends on the weakness of the security apparatus. Whereas civil war involving natural resources or land tends to last longer, it can also last long if rebel groups have access to contraband goods like cocaine. The grievance cause of civil war This is a popular view that rebels are motivated by genuine and intense grievance; rebels are heroes fighting for justice. Based on analysis, rebellions are seen as a form of organized violence; both parties to civil war have different explanations for their actions. The rebel organization hires a public relations firm to help push their explanation for their movement and the opposition party would also hire a public relation firm. Most explanation from rebels groups are usually what Collier (2007) called the litany of grievances against the government for its oppression, unfairness, and perhaps victimization. This victimization could be on some area of the population that the rebel organization represents. Rebel movements are driven by intense violence, by the intense conditions of the rebels or the group they represent (Cited in Crocker et al, 2007). Berdal and Malone (2000) explained that rebels litany or narratives as they may call it are based on four factors which are; first economic inequality this involves unequal distribution of income, unequal allocation and ownership of resources and assets, unequal distribution of resources and anything that has to do with increasing poverty rather than reducing it would provide a fertile ground for insurgency and readily available combatants, this case was common in central Africa (Berdal and Malone, 2000; Murshed and Addison). The second narratives of grievance is based on religious or ethnic hatred; this also depends on the ethnic and religious composition of the state (ethnic and religious diversity), civil war caused by ethnic and religious difference has always been based on power, where the other group does not want the other group to rule over them as a result of perceived discrimination in public office, this was the case of the Northern Nigeria and self proclaimed Biafra in th e late 1960s, the Tutsi superiority and the Hutus inferiority in Rwanda as they both struggled to gain a place in the emerging democratic institution of the country (Uppsala). This can also be mere religious hatred, the war in Lebanon 1975 to 1976 between the Christians and the Muslims, such religious conflicts are happening in Nigeria till now. The third narrative of grievance is based on lack of political rights; if a government of a state is perceived to be autocratic, people would want to overthrow the government and this result to war in the fight for democracy, the insurgency in Romania is often regarded as a fight for democracy. The final narrative of grievance is based on government economic incompetence; according to Berdal and Malone (2000) if a government is seen to inflict sufficient economic misery on its population, it may face an uprising. This was the case in Uganda in the early 1980s; this is usually a case of mismanagement and a fallen state, Latin America, the for mer Soviet Union has suffered economic mismanagements. Corruption in these countries has also helped fuel conflict and prolonged misery on the population. The failure of the government to provide the needs of its people and security could lead them to rely on more ethnic ties which can trigger civil war as they fight over economic resources (Berdal and Malone, 2000; Murshed and Addison pg. 5). The interaction of greed and grievance Government and rebel groups may exploit civilians in other to fight a war or may fight a war in order to exploit civilians. The misery inflicted on civilians gradually creates their own justification like in Sudan; the misery inflicted on the civilians strengthened the civilians. The idea of civil war provides a suitable disguise both for greed and grievance. Rebels are thought by some economist to be opportunist and their grievances are most times deliberately forged. Some economist use the term predators of productive economic activities they believe that rebels are not heroes fighting for a reasonable cause but lust for powers and loots. Rebels use war as a means to exploit civilians, they may hope for government to commit atrocities which give them an opportunity to fight for a true or false cause. This group including the government officials, soldiers, and traders uses conflict period as an opportunity to plunder, Democratic republic of Congo and former Yugoslavia only to name but two among many are examples of such practice. For most people, conflict time is a time for them to make more money apart from their usual salaries, during warfare; money is gotten from those whose lives are spared from being massacred. War time may also lead to inflation which is very profitable for some as there may be trade restrictions from government and only those officials who are able to infraction the law can have their businesses going but at a very high cost. On the other hand, there might be no trade restriction as the states power falls during conflict, goods like drugs which were not allowed to be traded in the state would be traded during war, Cambodia and Burma in Asia, Sudan, Angola, Sierra Leone, and Somalia in Africa, Colombia and Peru in Latin America. War may also bring about exploitation as people are threatened to work cheaply or for free, there were cases like this in Sudan and Burma (Berdal and Malone, 2000 p. 29-30). It is very obvious that not all griev ance are true, some are just an end to a means. Conclusion Greed and grievance do play a major role in contemporary civil war, but one cannot truly measure between greed and grievance. Both greed and grievance work simultaneously to trigger civil, they both interact no matter which comes first greed or grievance the other follows, this is to say that greed triggers grievance and grievance triggers greed. Civil wars motivated by greed can be followed by genuine grievance as rebels fight for justice. people who do well out of war will not be particularly concerned at restoring peace while those who do not do well or are hurt badly will have an interest in restoring peace. As individuals in pursuit of different goals and objectives, there would always be a misunderstanding and conflict in one form or the other, Institutions have emerged to resolve civil conflicts and restore peace. Greed and grievance would therefore be irrelevant as long as these institutions called the social contract exist (Murshed).In Africa, conflict has helped bring about slow growth, poverty and underdevelopment, especially countries with natural resources which according to Fearon James are the reasons for the last longing conflicts in such countries especially in Africa. Countries should work hard to have strong institutions to restore peace within their state and international level as economic development is somewhat dependent on the level of peace and tranquility within the state.