A Simple Essay on Terrorism Impactt on Economy
Terrorism
Although economic loss can be the result of the consequences of concrete significant attacks or of the mere threat of terrorism. The scope of this study is limited to economic consequences caused by terrorist attacks. However, unanswered is the question: what is terrorism exactly?
The definition of terrorism is one of the most contested concepts. For the purpose of this study the relevance of this discussion is limited. The definition used may influence the total numbers of attacks. However, measuring the vulnerability of macroeconomic and sectorial economic structures largely depends on the possibility of future attacks and, thus, depends on scenario thinking (See e.g. Hellström, 2007: 416). Nonetheless, it is important to state that this study is not only based on, for instance, religion-related terrorism, but includes all forms of terrorist behavior that may negatively affect the European economy.
The European definition of terrorism is in this regard the most appropriate and describes terrorist acts as intentional acts, which ‘given their nature or context, may seriously damage a country or an international organization where committed with the aim of: seriously intimidating a population; or unduly compelling a Government or international organization to perform or abstain from performing any act; or seriously destabilizing or destroying the fundamental political, constitutional, economic or social structures of a country or an international organization’ (Article 1 sub 1 of Council Framework Decision on Combating Terrorism2)
Consequently, when referring to terrorism, terrorists, and/or terrorist threat or attacks, the above mentioned definition is implied.
Economic Impact of Terrorism
The economic impact of terrorism can be calculated from a variety of perspectives. There are direct costs to property and immediate effects on productivity, as well as longer term indirect costs of responding to terrorism. These costs can be calculated
Although economic loss can be the result of the consequences of concrete significant attacks or of the mere threat of terrorism. The scope of this study is limited to economic consequences caused by terrorist attacks. However, unanswered is the question: what is terrorism exactly?
The definition of terrorism is one of the most contested concepts. For the purpose of this study the relevance of this discussion is limited. The definition used may influence the total numbers of attacks. However, measuring the vulnerability of macroeconomic and sectorial economic structures largely depends on the possibility of future attacks and, thus, depends on scenario thinking (See e.g. Hellström, 2007: 416). Nonetheless, it is important to state that this study is not only based on, for instance, religion-related terrorism, but includes all forms of terrorist behavior that may negatively affect the European economy.
The European definition of terrorism is in this regard the most appropriate and describes terrorist acts as intentional acts, which ‘given their nature or context, may seriously damage a country or an international organization where committed with the aim of: seriously intimidating a population; or unduly compelling a Government or international organization to perform or abstain from performing any act; or seriously destabilizing or destroying the fundamental political, constitutional, economic or social structures of a country or an international organization’ (Article 1 sub 1 of Council Framework Decision on Combating Terrorism2)
Consequently, when referring to terrorism, terrorists, and/or terrorist threat or attacks, the above mentioned definition is implied.
Economic Impact of Terrorism
The economic impact of terrorism can be calculated from a variety of perspectives. There are direct costs to property and immediate effects on productivity, as well as longer term indirect costs of responding to terrorism. These costs can be calculated