The Economic Cost of Political Violence in Bahrain

Mitchell Belfer

Political instability has a negative impact on economic prosperity, but data and evidence linking economic outcomes to it are scarce. The Kingdom of Bahrain has experienced instability since 2011 engendered by a small minority, but the nature of the problem has been exaggerated by international media. This minority is imposing economic damage on the welfare of all Bahraini citizens in reduced foreign investment, tourism and additional security costs. The estimation of the costs of political turmoil requires an new approach employing theory with a wide selection of social and economic data.