top of page

THE ECONOMICS OF TERRORISM

Xiaoyue Sun



The Foundation for Teaching Economics recently hosted a webinar titled "Economics of Terrorism," featuring economics professor Anne Bradley. The session explored terrorism through an economic lens, highlighting how principles of economics can be applied to one of the most pressing foreign policy challenges of our time. Dr. Ali Imran, representing the Saint Pierre Center for International Security (SPCIS), also participated in the webinar.

 

Professor Bradley opened by emphasizing the need to adopt the "economic way of thinking" when addressing terrorism. She noted that while significant resources have been devoted to the war on terror over the past two decades, progress has often fallen short of expectations. By focusing on human behavior, choices, and incentives, economics can offer valuable insights into developing more effective counterterrorism strategies.

 

A central theme of the discussion was the importance of viewing terrorists as rational actors. Bradley explained that terrorists, like all individuals, engage in purposeful actions to achieve specific goals—whether political, ideological, or religious. This perspective challenges the tendency to dehumanize terrorists and instead focuses on understanding their motivations. She highlighted how terrorist organizations, such as Al-Qaeda, align individual goals with organizational objectives, fostering loyalty and cohesion.

 

Bradley also discussed the dynamic nature of terrorism, describing it as an emergent order that evolves over time. She stressed that terrorism cannot be entirely eradicated, much like crime, but its prevalence can be reduced by addressing the underlying incentives that drive individuals to engage in such acts.

 

One of the key takeaways from the webinar was the application of economic concepts like supply and demand to terrorism. The "demand" for terrorism comes from individuals or groups who believe it can achieve their objectives, while the "supply" consists of those who organize and execute attacks. Understanding these dynamics is essential for designing policies that reduce both the demand for and supply of terrorism.

 

Prof. Bradley underscored the importance of addressing opportunity costs to discourage individuals from turning to terrorism. Countries plagued by terrorism often lack economic freedom, effective governance, and rule of law. Promoting robust economic institutions and creating opportunities for education and employment can offer viable alternatives to terrorism.

 

In addition to long-term strategies, Bradley highlighted the need for immediate measures, such as hardening targets, disrupting terrorist funding, and freezing assets. While these actions are necessary to curb the supply of terrorism, they must be complemented by efforts to address its root causes.

 

The webinar concluded with a discussion of Al-Qaeda’s organizational evolution. Bradley detailed how the group transitioned from a paramilitary structure under Osama bin Laden to a decentralized franchise-like network after his death. This shift underscores the importance of adaptive strategies in counterterrorism efforts.

 

Ultimately, Bradley emphasized that combating terrorism requires a balanced approach, combining economic insights with military, diplomatic, and policy strategies. While a world entirely free of terrorism may be unrealistic, reducing its impact and prevalence through targeted incentives and systemic changes is achievable.

 

This thought-provoking session highlighted the critical role of economics in understanding and addressing terrorism, offering a fresh perspective on this complex global challenge.

 

 

10 views

Comments


Join our mailing list for updates on publications and events

Thanks for submitting!

© 2023 by Saint Pierre Center for International Security

bottom of page