From Healing to Opportunity: Addressing the "Trauma Tax" to Overcome Global Crises
When crises overlap—geopolitical conflict, climate change, displacement, and the psychological toll they leave behind—what does real progress look like? How do societies rebuild when survival itself has become a source of trauma, and generations are divided by migration, loss, and unhealed wounds? And in a world where crises no longer occur in sequence but all at once, what kind of leadership can help us break free from the cycle?
As world leaders convened in New York for this year’s UN General Assembly (UNGA) and Climate Week, the message was clear from the panel of mental health experts: unhealed trauma is at the root of conflict. Without integrating healing into development, peacebuilding, and even climate solutions, cycles of violence, poverty, and migration will persist. Trauma-informed approaches are not a humanitarian add-on, but the key to addressing the global polycrisis.
Mohamed Ali Diini, a McNulty Prize Winner and Aspen Global Innovators Group Fellow, introduced a new perspective: the “Trauma Tax,” the invisible burden that unaddressed trauma imposes on individuals, communities, and entire economies. This concept establishes a connection between today’s overlapping crises and their underlying psychological origin. Through his work in Somalia as the founder and president of Iftin Global, Mohamed discovered that trauma recovery is not just a humanitarian endeavor but a strategic investment that unlocks human potential and catalyzes both social and economic progress.
The panel was co-hosted by the McNulty Foundation and the Aspen Global Innovators Group
At the panel From Healing to Opportunity: Integrating Trauma Healing into Development Programs—moderated by Apoorva Mandavilli of The New York Times—Mohamed was joined by Dr. Comfort Ero, president and CEO of International Crisis Group, and Dr. Saida Abdi, assistant professor at the University of Minnesota School of Social Work.
Trauma healing is the antidote for a world grappling with crisis. Watch the full panel event, and read on for key insights.
The panelists highlighted how unhealed trauma is at the root of conflict
Moderator Apoorva Mandavilli identified the “trauma tax” as a novel, but foundational concept
What is the cost of the “Trauma Tax” on society?
The psychological and emotional effects of war often outlast physical destruction. Trauma erodes trust, safety, and hope, creating what Dr. Saida Abdi, an assistant professor at the University of Minnesota School of Social Work, calls a “foreclosed future,” where young people, in particular, lose the capacity to envision possibilities.
Mohamed’s personal journey is evidence of this. Fleeing Somalia at the age of nine, he built a career in law in the United States and later returned home to establish Iftin Global. He witnessed firsthand how trauma undermines human development. Among the youth in his programs, he observed high dropout rates and business failures, often linked to PTSD, anxiety, and loss. Mohamed coined the term “Trauma Tax” to describe this hidden cost, illustrating how trauma erodes focus, motivation, and the ability to build sustainable livelihoods.
Data from Iftin’s programs reveal the profound impact of integrating mental health support into vocational training. This approach, reframed as “life skills and job skills training” to reduce stigma, resulted in a remarkable increase in completion rates, from 40 percent to 90 percent. Moreover, risky migration, which is increasing among youth in the African continent, plummeted from 30 percent to 5 percent.
How does trauma-informed healing break cycles of violence and rebuild societies?
In his early work with former combatants in Somalia, Mohamed decided to pair trauma-informed support with reconciliation and vocational training, Iftin helped former child soldiers safely reintegrate into their communities. One participant, after completing the program, went on to help sixty others leave armed groups, showing how healing creates a ripple effect of peace. "Forgiveness is not just symbolic," Mohamed said. "It’s how communities rebuild trust."
Every government wants a quick fix, but psychosocial work takes time. It takes people who believe in long, patient capital.
Culturally grounded approaches are fundamental. At the local level, reducing stigma requires engaging schools, parents, religious leaders, and communities to normalize mental health care as essential, equal to physical health. Like Mohamed, she found that reframing mental health as a pathway to academic and professional success helps families overcome barriers to healing.
Panel attendees participated in a Q&A
How can trauma-informed approaches scale to meet a world in polycrisis?
There are immense challenges ahead. Addressing generational trauma alongside conflict, climate displacement, and instability demands coordination across communities, governments, and international systems. Mohamed outlined steps already being taken, such as distributing Iftin’s signature toolkits to partner organizations and governments.
Dr. Abdi offered a grounding perspective. "You don’t have to heal two billion people at once. Start with one child, one community, and you begin to heal a nation."
Watch the full conversation from the panel event to explore these insights further: