Economics of Terrorism

Order Description

Chapter Title: Economics of Terrorism
Part One: Introduction: (3 pages)
Terrorism is a distressing feature of the modern world economy. Terrorism is not just a modern phenomenon but it is worldwide and persistent, with multiple roots and lasting effects. Features of terrorism include:
a. use or threat of use of violence;
b. against noncombatant;
c. to influence a large audience.
This part MUST cover the following points:
1 Definition of terrorism
2 Features of terrorism.
Part Two: Terrorism: An Economic Perspective: (7 pages)
Terrorism is analyzed from the economy because:
a. It is the result of the interaction of a demand and an offer.
b. Use susceptible scarce resources for alternative uses.
Economics analyses any human activity as the outcome of rational choice. Terrorists can thus be considered as utility-maximizers who weigh up the costs and benefits of alternative actions and proceed accordingly. This certainly sounds a realistic approach to analyzing the behavior of certain separatist organizations whose activities appear well-planned and deadly efficient, but can we assume rationality as a motive for suicide bombers who appear to be fanatical religious zealots?
This part MUST discuss the following issues:
1. Rationality of terrorists? What rationality?
2. Instrumental: cost minimization, profit maximization or utility, response to incentives (law of demand).
3. Rational expectations: not systematically make the same mistake.
Part Three: Terrorism: The Demand Side: (5 pages)
This part discusses the demand for terrorism. Do, it MUST discuss the following issues:
1. Final causes of terrorism:
A. What individuals require the use of violence against others? What is the purpose in wanting to harm others? For what use is the damage caused by others?
B. Terrorist activity is both a means and an end in itself.
As an end in itself is claimed to satisfy the desire for revenge and malevolent preferences (hate) of some groups over others.
As a means is claimed to:
– Generate a social group willing to fight to meet strategic objectives: to change legislation, altering the form of state, achieve independence of a territory.
– Satisfying tactical objectives:
External: political and economic objectives.
Political: “communicative” (be released), “attrition” (questioning the state monopoly on the use of power, “spoiling” (hinder peaceful disaffected and traitors), “competitive” (show prominence over other terrorist groups), “challenging” (stimulate repression by the state). “antagonizing” (separation encourage the group supports the state).
Economic: “financial” (support for extortion), “destructive” (attacking the state’s ability to provide public goods: transport, utilities, etc.)
Internal: Cohesive (foster unity of the group), signalers dedication to the group of supporters.
From an economic standpoint, the terrorist group is a “peculiar” company is an NGO.
Its objective is not to maximize profits but monetary create, maintain and enlarge their “market” or area of influence to meet their “Strategic Objectives”.
This means to do this is to fulfill its “Objectives Tactical”.
2. Efficient Causes of Terrorism:
There are two basic variables describing terrorism efficiency:
A. Its area of influence: the sum of its militants / “workers” more assets supporters.
B. The intensity with which its activity is accepted.
Part Four: Economic Costs and Benefits of Terrorism: (5 pages)
This part discusses the economic costs and benefits of indulging in terrorist activity. This part MUST analyses the following types of costs:
1. Direct Costs:
The direct costs of terrorism can be measured in terms of the resources employed in recruiting others to the cause, in planning and organizing attacks, in purchasing materials and stockpiling an arsenal, and paying for the security that ensures the authorities do not find out what is going on.
There are also direct costs to be calculated with regard to the likelihood of being captured or killed in the pursuit of terrorist goals.

2. Indirect Costs:
Indirect costs can be measured in terms of what it feels like to live a life “underground” or on the run, and of the opportunity costs involved – what incomes, livelihood and utility could have been derived from the alternative, non-criminal lifestyle.
3. Benefits:
The benefit from carrying out terrorist activity will firstly be measured in terms of how far a specific attack advances the declared political/ideological objectives of the group concerned. Related to this is how much material damage can be inflicted on the target; how far “the oxygen of publicity” (as Margaret Thatcher once famously called it) broadcasts the impact; and how far support for the cause can be raised and opposition discouraged.
Part Five: Social, Political, and Economic Causes of Terrorism: (10 pages)
This part MUST discuss the social, political, and economic causes of terrorism.
REFERENCES
This chapter must include at least 15 references.
This part MUST use the most recent academic articles published in prestigious academic journals.
Articles or reports from newspapers/magazines are not allowed. Internet sources should not be more than 10% of the total number of articles.
All articles mentioned in the chapter must be cited in references section.
References must be cited in Harvard Style. Full citation is a must (author name, year, pages, publisher, etc.).
IMPORTANT RULES:
1. The writer must hold a Ph. D. in Economics, preferably Political Economy or Applied Economics. This job must be fulfilled by top 10 writers. This is the first chapter of Ph. D. Dissertation. So, writers who hold a Master Degree are not eligible to take this job.
2. This job needs professional economists not fans of economics.
3. The assigned writer needs to adhere completely to issues and points as outlined in the proposal.
4. I require the writer to send me each part completed, so I can review it and give my comments.
5. The writer has to contact me immediately if he has questions or if he needs more clarification.
6. The job will not be accepted if the quality is not superior of if the chapter does not offer a sound economic analysis.