What is the cost of violence in the context of economic growth?

Let us recall that during the presentation of the bill on ensuring women’s rights and the safety of children in Kazakhstan, which took place on February 5, 2024, Mazhilis deputy Anas Bakkozhaev expressed the opinion that women provoke men into conflicts. “I support the proposed bill. <…> However, where do conflicts begin? Of course, because of the woman's long tongue. <…> A woman who is good for a man is also good for the country. Unfortunately, we are moving further and further away from Kazakh education,” said the deputy. Thus, we can conclude that despite the fact that the state is aware of the significance of the problem associated with domestic violence against women, it still does not fully correctly interpret the root of this problem.

But what can we say about Kazakhstan if the topic remains relevant in developed countries? According to a UN report (May 2019), 18% of women aged 15-49 experienced physical and/or sexual violence from their partner in 2018. In the least developed countries, the value of this indicator was 24%. Paying attention to another UN report (May 2023), it should be emphasized that only 56% of married or in a union women aged 15 to 49 years make their own decisions regarding sexual and reproductive health and their rights. The act of domestic violence plays a significant role in the institution of marriage and relationships between a man and a woman. All this not only affects the socio-cultural environment, but is also significant regarding economic development.

First, on average, women devote approximately three times more hours per day to unpaid care and domestic work than men, limiting the time available for paid work, education, and recreation and further exacerbating gender-based socioeconomic disadvantage. This statistical fact is especially common in abusive relationships, where the woman is more likely to serve as a housewife, becomes dependent on her partner for resources, and does not participate in the labor market.

Secondly, interpersonal violence, which refers to assault, rape or murder, in addition to spreading other types of negative effects, entails financial costs in many economic spheres. As a result of violence, there are losses in productivity (for example, due to the fact that the labor force that was subjected to violence is temporarily removed from the economy) and an increase in the costs allocated to containing the consequences of violence, which could otherwise be directed to more profitable activities, ensuring long-term growth and prosperity.

Thus, several key findings should be identified. Firstly, in absolutely any type of violence (be it a conflict between a man and a woman or a conflict between two states), the violent party has to be blamed. There are no downsides to this issue. Secondly, violence in a country is not only a consequence of cultural, social and institutional decline, but also a factor in declining economic well-being. And such a negative impact of domestic violence on the economy is not unfounded, but confirmed by specific scientific research in this area (see below).

In the article (Arju R., 2021), the author notes that domestic violence against women does not allow the economy to realize its economic potential due to distortion in aggregate demand, reduction in supply due to decreased productivity, etc. The author identifies several main types of economic costs of violence:

1. Costs associated with compensation to victims, fines, litigation, etc.

2. Costs associated with the provision of social services to victims of violence.

3. Expenses related directly to the labor market and the implementation of any activity. That is, the cost of finding and training another employee if the victim leaves the place of work, and/or increasing payments to those who temporarily work in the place of the victim of violence.

4. Expenses associated with the provision of medical care. This is the cost of necessary medications, hospital bills, etc.

5. Indirect costs associated with the mental and psychological state of the victim of violence. Some of the consequences of violence are pain, suffering, physical harm and similar negative effects, which are expressed in low levels of creativity and low propensity to work. As a result, productivity in the economy decreases.

Having outlined the relevance and importance of the role of domestic violence on economic development, the author identified the main conclusions regarding this issue. Countries need to reconsider the impact of domestic violence on the economy and develop programs and laws in this area. Powerful countermeasures must be developed to ensure women's safety for all. Countries need to more actively develop gender equality policies. In conditions where women's economic opportunities are high, the percentage of violence is significantly reduced.

In another paper (Iqbal, M. et.al., 2019), the authors looked at 163 countries, where 99.5% of the world's population live, and estimated the economic costs of violence such as murder, physical and sexual violence, terrorism and war.

The results found that in 2017, the global economic impact of violence was estimated at 14.8 trillion dollars, equivalent to 12.4% of global GDP or almost 2,000 dollars per person. At the same time, murders and violent crimes are estimated at 3.7 billion dollars or 25% of the total economic damage from violence.

Given that the statistics of cases of violence is expanding every year, we can conclude that today this indicator has increased significantly. This conclusion is also confirmed by the research of the authors themselves: in the period from 2007 to 2017 the economic impact of violence increased by 8% (see Figure 1).

Figure 1. Trend in the economic impact of violence in the world

Source: Iqbal, M. et.al., 2019

As noted, the analysis in the article also includes the impact of military conflicts. Due to the fact that the economic consequences of war in the majority are obvious costs and directly affect the economy, the share of this factor is represented as the most significant. However, across regions of the world, violence and homicide account for a significant portion of the total economic costs of such actions (see Figure 2). Thus, in general, in Russia and the Eurasia region, which includes Kazakhstan, the economic effect of violence and murder is 37%.

Figure 2. Composition of the economic costs of violence in different countries

Source: Iqbal, M. et.al., 2019

The 2023 Women's Peace and Security Index shows that Kazakhstan ranks 70 out of 177 in equity, inclusion, security, education and other factors related to women's empowerment, which is generally considered satisfactory. It is worth noting that indicators such as the level of female employment, the share of women in parliament, the absence of legal discrimination against women, the level of partner violence and women’s perception of public safety require significant improvements, since they are lower than in many countries in the presented rating.

Let us analyze the trends in domestic violence in Kazakhstan in recent years (2023 was not considered, since most indicators for this year were not presented). First of all, we need to look at the long shot:

Table 1. Statistics of offenses in Kazakhstan, units, unless otherwise indicated

Source: compiled on the basis of the BNS of the Republic of Kazakhstan

As you can see, domestic violence accounts for a large part of the total number of crimes. At the same time, we should not forget that this type of offense is the most “shadow”; statistics do not reflect the true picture of domestic violence. Many women cannot seek help, fearing for their lives and the lives of their children.

Next, we will look at the number of registered cases of domestic violence against women in more detail (see Figures 3 and 4). As can be seen from the statistics, the most common crime is illegal actions in the sphere of family and household relations, which suggests that most of the violence against women occurs in the home. At the same time, government agencies themselves note that the number of violent acts against women in real life is much higher than official data.

Figure 3. Criminal offenses against women, units

Source: compiled on the basis of the KPS GP RK

Figure 4. Administrative offenses against women, units

Source: compiled on the basis of the KPS GP RK

The negative impact of violence affects individuals, households, businesses and society as a whole. Mortality and morbidity associated with acts of violence have devastating consequences for all economic agents in a country. Kazakhstan needs separate laws on sexual harassment and domestic violence. A competent understanding and conscious acceptance of the problem will allow Kazakhstan to significantly improve its current economic indicators.