Economics of Terrorism

I think many people would be surprised to hear the fact that the economy of terror is the fastest growing economy in the world. Modern terrorism, the international response and the sophisticated technology associated with terrorism and retaliation to the same has managed to give the criminal economy a boost unlike one we have ever seen before.

It is no surprise that the economy of terrorism is associated with the economy of crime. Combined, the two are worth about 5% of the world’s GDP- that is a larger share than many countries. The second world war, combined with the state sponsored technical advances and espionage promoted during the Cold War had a huge impact on privatization of many spheres of life. The power vacuum left by the end of the world war also promoted increased privatization of terrorist organizations around the world.

It’s interesting to see just how the modern economy has helped shape terrorism as we know it and how the east and the west have been interacting over the past few years, especially as far as the finances behind terrorism is concerned. This is an angle that might help understand terrorism in a manner that will let us eliminate it once and for all.