Advantages Of Peace Accounting

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Theoretical Framework
There two common models of peace accounting, these are the accounting model and economic model.
Accounting Model: Paul (2010) posits that accounting model evaluates the total value of damaged assets which may include physical, human and social capitals during government fiscal year.
Economic Model: This model as opined by Stiglitz and Bilmes, (2012) focuses on the macroeconomic implication resulting from the amount of money spent on domestic investment as a result of insecurity.

In our view, peace accounting should not consider only the total value of damaged goods as suggested by the accounting model neither should it focus only on domestic investments that result from peace-keeping as purported by the economists. A …show more content…

First, Nigerian’s intervention in the peace mission attracts some benefits such as re-establishing the nation as the giant of Africa, international laurels won, solidification of the bilateral affiliation between Nigeria and Sierra Leone, expansion of trade relations and improved economic investments in Sierra Leone. More so, it was gathered from the study that the mission led to a decline in GDP from 8.2% in 1991 to only 1 % in 1994 which indicated a drop in the Nigerian economy. This implies that the cost of Nigeria peace keeping in Sierra Leone brought about a decline in economic development. In conclusion, it was observed in Abubakar’s study that the cost of peace accounting outweighed its benefits.

Adediran and Aruomoaghe (2014), investigated accounting for peace and economic development in Nigeria. The central focus of the study was on economic development rather than national development. A longitudinal survey of the various variables was made from the period of 1994 to 2012. Their findings revealed that cost of peace keeping has a significant impact on wholesale trading and development of the service

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