The impact of armed civil conflict on household welfare and policy

This paper offers a framework for analysing the effects of armed conflicts on households and the ways in which households in turn respond to and cope with the conflicts. It distinguishes between direct and indirect effects, and shows that the indirect effects are channelled through (i) markets, (ii) political institutions, and (iii) social networks. Drawing upon the recent empirical literature, the paper portrays the processes running along these various channels and offers policy suggestions to be adopted at both national and international levels. Keywords: armed conflict; civil conflict; household welfare; transmission mechanism; coping mechanism; remittances.