Appendix V โ ๐ The 1% Peace Dividend
TL;DR
- What The Treaty Captures: Cut global military spending by 1% and the DIH receives $27.18 billion annually to fund the Decentralized Institutes of Health.
- What The World Saves: Cut the total costs of conflict by 1% and society saves $114 billion every year. Thatโs less money spent rebuilding bombed hospitals, treating war casualties, and dealing with refugees.
- Source: All numbers come from our Cost of War analysis.
The Economics of a 1% Reduction in Violence
The dFDA cost-benefit analysis shows how much value better medical research creates. But where does the money come from? The treaty takes it from global conflict. Hereโs what the world gets when violence drops by just 1%.
The benefits break into two parts: the cash the treaty redirects, and the broader savings from less war.
1. The Cash The Treaty Redirects: $27.18 Billion for Cures
Governments spend $2.718 trillion on militaries every year. The treaty redirects 1% of that. Simple math:
$2,718,000,000,000 ร 0.01 = $27,180,000,000
That $27.18 billion funds everything: the research, the VICTORY bond returns, the whole system.
2. What Society Saves: $114 Billion Every Year
But thatโs just the money the treaty redirects. War costs the world $11.4 trillion annually. Cut conflict by 1% and society saves $114 billion on top of what gets redirected.
Thatโs money the world doesnโt spend on:
- Rebuilding bombed bridges and hospitals
- Treating war casualties and PTSD
- Supporting refugees and displaced families
- Lost trade and economic disruption
Hereโs exactly where those savings come from:
The Numbers: Where Every Dollar Gets Saved
This breaks down the annual global savings based on our Cost of War analysis.
| Cost Category | Total Annual Cost (Billions) | 1% Annual Savings (Billions) |
|---|---|---|
| Direct Costs | $7,655.0 | $76.55 |
| Military Expenditure | $2,718.0 | $27.18 |
| Infrastructure Destruction | $1,875.0 | $18.75 |
| Human Life Losses | $2,446.0 | $24.46 |
| Trade Disruption | $616.0 | $6.16 |
| Indirect Costs | $3,700.1 | $37.00 |
| Lost Economic Growth | $2,718.0 | $27.18 |
| Veteran Healthcare | $200.1 | $2.00 |
| Refugee Support | $150.0 | $1.50 |
| Environmental Damage | $100.0 | $1.00 |
| Psychological Impact | $232.0 | $2.32 |
| Lost Human Capital | $300.0 | $3.00 |
| Grand Total | $11,355.1 | $113.55 |
The treaty takes $27.18 billion from military budgets and saves the world $114 billion every year. Thatโs $4.19 saved for every $1 redirected.
Plus humanity gets cures for cancer.