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TN/ESS/04 · 7 min read
Edition 2027 · effective 1 January 2027

Essay 04

What conflict costs

The bill for unresolved conflict is paid in money, health, time and trust. Here is what the evidence says.

Conflict has a price, and almost nobody budgets for it. Here are the best available measures, each with its source.

Between nations

US$21.8tn

Economic impact of violence on the world economy in 2025, about 10.5% of global GDP.Institute for Economics & Peace, Global Peace Index 2026 · 2025 ↗

61

Active state-based armed conflicts in 2024, the highest number since records began in 1946.Uppsala Conflict Data Program (UCDP) · 2024 ↗

123m

People forcibly displaced worldwide at the end of 2024.UNHCR Global Trends, via Euronews · 2024 ↗

Violence is the most visible cost. The Institute for Economics & Peace estimates its economic impact at more than a tenth of world GDP. Behind the figure are lives, homes and futures.

Inside justice systems

5.1bn

People with at least one unmet justice need: a broad 2019 estimate that also counts legal exclusion and extreme injustice.World Justice Project, Measuring the Justice Gap · 2019 ↗

54m+

Cases pending across India’s courts at 31 December 2025 (district courts 47.7m, High Courts 6.4m, Supreme Court 92,101).Ministry of Law and Justice reply to the Lok Sabha, via IANS · 2025 ↗

Courts are essential, and overloaded. When billions of people cannot resolve a justice problem, disputes do not disappear; they harden, spread and pass to the next generation. Neutral processes are not a replacement for courts. They are how societies keep courts for what only courts can do.

At work

£28.5bn

Annual cost of workplace conflict to UK employers, about £1,028 per employee.Acas, Estimating the costs of workplace conflict (2021) · 2019 ↗

20%

Employees worldwide who are engaged at work; disengagement cost an estimated US$10tn, about 9% of global GDP.Gallup State of the Global Workplace 2026, via Kyodo News PR Wire · 2025 ↗

In the UK alone, workplace conflict costs employers an estimated £28.5 billion a year: resignations, sickness absence, management time and formal procedures. Globally, low engagement, often a symptom of unresolved conflict, is estimated to cost around nine per cent of GDP.

In commerce

US$102bn

Record value of new ICC cases in 2024: 841 cases, 2,392 parties from 136 jurisdictions.ICC Dispute Resolution Statistics 2024, via Global Legal Post · 2024 ↗

Commercial disputes are larger than ever. The value of new cases at the ICC alone reached a record US$102 billion in 2024. Yet users increasingly want to combine formal processes with mediation and other Neutral routes.

48%

Users who prefer international arbitration combined with mediation or other ADR for cross-border disputes (2,402 respondents).Queen Mary University of London & White & Case, 2025 International Arbitration Survey · 2025 ↗

The cheapest moment is the earliest

Every conflict has a cheapest moment to resolve it. It is almost always earlier than people think.

The pattern across every dataset is the same: costs rise sharply once positions harden and formal processes begin. That is why TheNeutralsORG™ puts prevention first: Neutral routes written into contracts, Standing Neutrals on long relationships, Ombuds channels in organisations, and evaluation before litigation. Use the cost-of-conflict calculator to estimate your own.

TheNeutralsORG™ editorial · Essay 04 · Figures checked October 2026 · Sources & method

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