Armed conflicts in developing countries such as Sudan have severe consequences on the country's economy and the infrastructure. It leads to the damage of infrastructures such as roads and the cost of repairing is so high. War also leads to a reduction of human capital due to the increase in the mortality rate. It may also lead to increased corruption and illegal activities, which harm the economic growth. The infrastructure projects financed by the international community may be terminated. There will be the disruption of foreign investments due to the existing insecurity. The international trade will be disrupted affecting exports and imports thus affecting the foreign exchange. The funds allocated for infrastructure and other economic activities may be diverted to resolving conflicts.
The developed nations do not experience the same extent of consequences because of the proper and efficient legal and other various institutional systems. They also do not rely much on foreign aid thus making the impact less limited.
