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Terrorism from an economic perspective

Prof . Zaid Mohammed Al-Rommany

Published On: 29/4/2021 A.D. - 17/9/1442 H. Visited: 2218 times

Introduction:

Events in this world are evolving at an amazing speed, these are terrorist events and these are social and economic revolutions, and these are new scientific inventions invented by man. The world is hardly calm about events and developments in one region, except for counter-events or similar events in others. That is why the character of the rapid and successive movement has become the one that is dominating the events and economies of the world in this century. These events and developments have made it imperative for human beings to think about the events and problems of the hour in a very focused way.

Figures and statistics:

1-Terrorism in Algeria has cost the people and the state $40 billion.

2-Terrorism has cost Yemen billions of dollars in tourism, trade and investment income, in addition to the expenditures and allocations allocated by the state to increase security measures. Investment in industry fell by 42% and tourism by 54%, thousands of jobs were lost, and losses amounted to more than $2 billion.

3- Egypt, which has suffered from terrorism for years at intervals, has lost large amounts of tourism income, on which millions of Egyptians live and depend on sought by some cities with full population, such as Luxor, Sharm Al-Sheikh and Ghurghada. Terrorism in Egypt has targeted tourism to hit the national economy, with tourism income in Egypt amounting to $7 billion annually. This is equivalent to Egypt's total income from all its exports, and the stock market lost heavily in Egypt after the terrorist attacks.

4-As a result of terrorism, the rate of tourists to the Arab world has decreased by 41%, and tourism income in Tunisia has decreased by 43% and in Morocco by 17% .

5- Iraq lost $10 billion of the poor people's money because of terrorist attacks on oil installations. Iraq's human losses due to daily bombings are great .

6- The losses of the Saudi economy between 2003 and 2008, in which several terrorist operations appeared, amounted to about 30 billion riyals.

7- The Arab economy's losses due to terrorist crimes are estimated at $200 billion.

Facts:

During the last decade of the last century and the beginning of this century, the phenomenon of terrorism has attracted increasing attention from both developed and developing countries and terrorism has become one of the most serious problems of the century. To me, one of the most important phenomena that human societies are experiencing today, because of its negative effects on the progress and prosperity of nations. Terrorism is a global phenomenon and is a serious source for the economies of many countries of the world; the destruction of the economy and national income as a result of terrorist attacks would harm the entire nation's economy .

Unfortunately, the economy of terrorism has grown through illicit activities such as arms trade, money laundering and the drug trade .

On the other hand, one researcher pointed out that the root cause of violence and terrorism is of an economic nature caused by economic injustice, which fuels rebellion and perpetuates terrorism, as about one third of the world Only 90% of the world's wealth accounts for, while the remaining 10% share two thirds of the world's population. Countries are racing to increase their share of global and divided production as follows: 29% America, 24% EU, 13% Japan, 7% India, China and Latin America, 27% the rest of the world including Middle East.

Dangers:

Several studies and research have been conducted to measure the impact of terrorist acts on the economics of society and continue their research work, and have concluded a range of important figures and statistics, including on For example :

1- In her book on terrorism as an economist, Loretta Napoleoni estimates the new economy of terrorism at around $5.1 trillion, whether through legal or illegal transfers.

2- Preliminary estimates in one Arab country indicate losses of at least $12 million per month, and with each day, estimates and projections of further economic losses increase. Transport, tourism, oil, fishing, the environment and other sectors, the most important of which is the hatred of terrorism and the bill paid by the citizen, whose situation is seeking by the government.

3- Brian Wisbury estimated the economic damage from September 11th to $120 billion, and caused financial concern for America's economic well-being.

Effects

In general, terrorism is said to be an enemy of development and never meets, so the immediate threat of terrorism is to hit the national economy, which is the lifeblood of societies, for example: Hit airports and ports or hit tourism and oil installations, and then destroy the whole community and stop the wheel of development.

The impact of terrorism also highlights the human forces of the State, as the nation is losing a number of its sons, who are the pillars of construction, and this is a huge loss in the active development pillar .

According to a study on the economic effects of international terrorism, there are clear effects on unemployment, inflation, investment, financial markets, corporate bankruptcy, insurance, tourism and exchange rate. And the balance of payments .

For example :

a- Large amounts of money will be spent on human development projects and infrastructure, such as roads, hospitals and schools to serve all citizens.

b- The reluctance of large and multinational companies to set up projects in society for fear of terrorism and terrorists .

In conclusion, incidents of violence and terrorism affect the economies of any country and require very large expenditures to provide safe means of protecting vital institutions in society

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