Perveen Introduction Terrorismis, the use of intentionally indiscriminateviolenceas a means to create terror orfear, in order to achieve a political, religious, or ideological aim. Terrorism is considered a major threat to society and therefore illegal underanti-terrorism lawsin mostjurisdictions. According to data from the Global Terrorism Database, more than 61,000 incidents of non-state terrorism, claiming over 140,000 lives, have been recorded from 2000 to 2014. Objective Causes of Terrorism. Effect of terrorism on worlds economy. How to control terrorism. Causes of terrorism 1) Political roots 2) Economic and social roots 3) Ideological and religious roots 4) Psychological roots Number of terrorists incidents by country Effect of Terrorism on Worlds economy:
1. Direct Economic Destruction
The most immediate and measurable impact of terrorism is physical destruction. On smaller scales, acts of terrorism may blow up cafes, churches or roads. Large-scale attacks, most infamously the World Trade Center bombings on Sept. 11, 2001, can destroy billions of dollars' worth of property and senselessly kill thousands of productive workers. 2. Increased Uncertainty in the Markets
Terrorism creates a lot of uncertainity. The
financial markets literally shut down after Sept. 11, and did not really recover until months after the 2003 invasion of Iraq. The real threat of global terrorism from an investor's perspective is about the broader picture, not individual incidents. International investment and cooperation are lower in a world full of terrorism. 3. Insurance, Trade, Tourism and FDI
Terrorism is risky business for everyone, and
insurance companies hate risk as much as anyone else. On a broader scale, terrorism hurts international trade. This may be due to imminent threats, such as compromised trade routes and distribution systems, or because of the psychological and physical reactions to terrorism. This also means less foreign direct investment (FDI), especially in unstable countries. Market Impact of Four Major Terrorist Attacks
Using thestock marketas one way to measure
the economy, consider the impact of four major terrorist attacks on the benchmark equity index of the nation where the attacks occurred. These four attacks had mass casualties and include: the 9/11 attacks in the United States the March 11, 2004 train bombing in Madrid, Spain the July 7, 2005 subway blasts in London the November 26, 2008 attacks in Mumbai, India Impact of Four Major Terrorist Attacks on Reference Indices over Time Ways to curb terrorism Economic Development: Strengthening the Administrative Institutions Effective Governance Border Management Conclusion Terrorism, the cancer of the modern world, a growing threat to the maintenance of an orderly society. Hinders development, economic and political stability and democratic institution is one of the most challenging problems of the modern times. Terrorist strikes will continue and so will be the killing unabated, till we really, honestly, sincerely and unselfishly decide to protect mankind and abhor the ambition for one- upmanship.