The economics of terrorism
Terrorism on the scale encountered in the 21st century requires a new mode of thinking and in-depth threat analysis, prompting the emergence of a new field dubbed security economics. In this context, the EU-funded project 'A new agenda for European security economics' (Eusecon) investigated security threats and European security policies under the new discipline. The project looked at the causes and consequences of a lack in security, as well as the economic costs of security policies, in the context of maintaining economic development and protecting citizens. Through a consortium of security experts and institutes from around Europe, it defined the field of security economics and addressed knowledge gaps to improve EU policymaking with respect to security. In an effort to revolutionise security-related thinking, the project conducted in-depth microeconomic and macroeconomic analyses on responses to the lack of security and on current security policies. It published a report titled 'The economics of security: a European perspective', which investigated defence and peace economics as a run-up to creating a conceptual framework for security economics. Several other reports have been produced, with some being published in the likes of the European Journal of Political Economy. Key topics studied include the link between economic conditions and suicide terrorism, the economic costs of harbouring suicide terrorist attacks, and the impact of successful attacks on unemployment. The project also looked at the considerable financial means of Al Qaeda and other terrorist organisations. Other key topics that Eusecon examined include organised crime, business start-ups after extreme events, stock market reaction and counter-piracy measures. After several workshops and meetings, the insightful results, analyses and findings emerging from the project have all been published online. Now available on the project website, the published material represents the most import output of the project. It can readily be accessed by policymakers and governments to help them bolster security and safeguard the economy. This in-depth understanding of terrorism, security implications and related economics will strengthen governments and make countries more impervious to heinous external threats.
