Homeland Security News

Since September 11 international Islamic terrorism has become the primary threat to security of the West, particularly the United States. The mass media, in general, have treated the phenomenon mainly focusing on the emotional and spectacular side or focusing their attention on the issue of religious conflict. Little attention has been devoted to the economic side of the issue and funding to terror groups. Loretta Napoleoni, an Italian economist, describes terrorism dynamics in her new book “The New Economy of Terrorism”. The author explains the financing systems used by terrorist groups, shows how the terror, which itself is turning into a real economic power, affects the global economy.

From interview of Loretta Napoleoni:

There is a direct link between the phenomenon of globalization and the exponential growth of the New Economy of Terrorism. Due to the process of deregulation of international financial markets in 90’s terror groups were able to obtain financing in a number of countries and act globally. With the collapse of economic borders, they have also got the opportunity to build an organised crime and illegal network with annual turnover of about $1.5 trillion, equivalent of 5% of the world economy. In my book, The New Economy of Terrorism, I call this phenomenon the globalization of terrorism. This is the last stage of terror evolution, after first two phases - state-sponsored terrorism and the privatization of terrorism. Al Qaeda is the most illuminating example of globalisation of terrorism, it is an transnational armed organization, capableable to finance its operations internationally and to operate globally.