Abstract:
The main concern of this thesis is to analyze conflict in Pakistan, mainly the conflict in Swat through political economic perspective. It builds a case that conflict in Swat has produced a relationship of violence and wealth which is providing economic benefits to the conflicting parties. This is a qualitative research relying on both primary and secondary sources for data collection. In addition to that, thesis also contains an analysis of the factors, tools and methods employed by the Taliban to politicize the economy of conflict. The thesis attempts to explore the relationship between political economy and conflict in Swat by setting up the Rational Choice Theory as theoretical framework .The conflict is then explained with the help of the decay of institutions of conflict management. These include both the formal and informal types. The findings further suggest that Taliban have used various techniques including illicit trade of natural resources, ransom, kidnappings and extortion money. The Taliban has also employed techniques adapted to these structural strata to maximize their economic benefits. A composite view of the explanatory framework of conflict in Swat is attempted in this thesis which will help formulate better policy options for conflict resolution, avoidance, mediation and management.