Look at terrorism as an industry. (The unfortunate truth)
Firstly, every industry/ firm needs to have a goal. The goal of this organization is generating money by carrying out ruthless acts of violence that causes widespread destruction of life and property.
Secondly, the backbone of any industry is the raw materials. In this case, the raw materials are the arms and ammunition. The industry pays people/organizations that provide them with arms and ammunition for carrying out their major goal.
Thirdly, for the acquisition of raw materials, the firm needs capital. Capital is generated by raising money through- drug trafficking, money laundering, illegal arms dealing and extortion.
Fourthly, every successful firm has departments so that maximum efficiency can be attained. Production department, Human Resource department, Marketing department, Customer Service department etc. Likewise, this organization has various departments- Intelligence (overt and covert), operational, supply chain management, survey department, training etc.
Lastly, the key element of any successful organization is the manpower. With widespread unemployment, poverty and substandard living conditions generating manpower is not a difficult task. Uneducated people provoked on the grounds of religious sentiments and people with little or zero conscience, lured by offering money are the major sources of manpower.
Therefore, when terrorism is perceived as an industry, it comes across as an ever growing organization which is on its way to success.
The problem with terrorism is that no one sees it coming. There is no definite pattern followed by the terrorist. No one can actually predict about the happening of an event. This in turn means that no definite precautionary steps can be taken. There is a feeling of helplessness as people cannot prepare to fight against something that does not have a definite face. Due to its clandestine nature it becomes extremely difficult to take proper security measures. The inability to predict and to take necessary action makes people more prone to such barbaric acts.
While looking at the various costs that are involved, terrorism seems like an ever growing industry. There are people who benefit monetarily by such activities. As an economics student you look at the incentive that an activity has to offer. The incentives to stop terrorism are less. Economically, huge funds are employed for fighting terrorism. These funds instead could have been converted into investments which in turn would have led to economic growth. The funds are now channeled towards the securing a country from a terrorist threat rather than infrastructural development.
Macro view of this situation shows two major industries in action- the first one being- the Terrorism industry and the second one being Counter Terrorism.
The second one deals with the number of people employed for fighting terrorism. This industry is growing with the same pace as the terrorism industry. With the increase in terrorism the need for a very strong anti terrorism unit is increasing. The industry also employs a large number of people. It requires a lot of capital for the effective accomplishment of tasks. A huge amount of money is spent on the intelligence, which forms the core area of this industry. A lot of highly qualified people are employed. It generates employment as the need for security personnel has increased.
There is a nexus between these two industries. Both support each other and the existence of one is vital for the survival of the other.
Concluding, terrorism has affected each and every sector of the economy, destruction of life a property on one side and generation of employment on the other side. It has stalled the growth of nations and hampered their development. And the common man pays for it - Monetarily, Emotionally and Physically.
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