Slide 1: The Socio-economic Costs of Terrorism
on International Business Mark E. Shepherd, Sr.MBAI 602
Terrorism Issues : Terrorism Issues Terrorism Statistics
Country Risk Assessments
Governmental Countermeasures
Global Economic Implications
Future Concerns
Terrorism in Human Costs : Terrorism in Human Costs RAND/MIPT data (incomplete for 1998-2004).
2007 represents U.S. UCTC figures
Last updated August 2, 2008*
Country Risk Assessment / GTI : Country Risk Assessment / GTI Overall Risk
Political Risk
Economic Structure Risk
Economic Policy Risk
Liquidity Risk
Currency Risk
Sovereign Debt Risk
Banking Risk
Economic costs of 9/11 : Economic costs of 9/11 Microeconomic effects
Combating Terrorism by the US $53B
$34 bill. plus uninsured losses of $576 million for Pentagon - 2,973 dead.
Travel and tourism 279,000 jobs lost in US.
5% property insurance increases in the US, higher overseas.
$7.5B in est. lifetime earnings lost by 2780 New York workers lost.
$7B for victim compensation.
Estimated 2% of GDP ($11.7T) or $234B annually for security efforts.
Total effect on New York economy and Wall Street unknown. Macroeconomic Effects
up to $300B in lower world growth in 2001/02.
1-3% of shipment value for security.
Iraq $125B-plus for DOD.
U.K.$2.68 bill. per year.
$21B for reconstruction
$13B pledged by other countries.
Afghanistan $50B DOD.
3.3B reconstruction.
$4.5B pledged by other countries.
Death Toll since Iraq/Afghanistan war (all inclusive): 8,177.
Iraqi’s lost: 1,339,771.
Wounded U.S. Soldiers: 31,483.
U.S. Risk Assessment for the Department of Homeland Security Tracking Time Line : U.S. Risk Assessment for the Department of Homeland Security Tracking Time Line
U.S. Government Stability Actions : U.S. Government Stability Actions U.S. Patriot Act of 2001
Homeland Security Act
Department of Homeland Security Grants to States ($12B by 2008)
Terrorism Risk Protection Act
Financial Anti-Terrorism Act of 2001
Airport and Transportation Security Act of 2001
Asset based Risk Assessment
Geographical Risk Assessment
U.S Code Regulations– providing direct links to key provisions – Air Commerce Safety and Security; Aircraft and Motor vehicle Crimes; Biological Weapons; Chemical Weapons; Civil Disorder; Defense Against Weapons of Mass Destruction; Disaster Relief; Foreign Intelligence Surveillance, etc.
Several Executive Orders, decisions and declarations.
U.S. Treasury Department anti-money laundering regulations.
Seizure of more than $14B in foreign assets of terrorism networks.
Slide 11: Sources:
National Counterterrorism Center, Worldwide Incidents Tracking System, on line at NCTC (http://wits.nctc.gov/).
U.S. Department of State, Patterns of Global Terrorism annual reports 1983-2003, Patterns of International Terrorism annual reports 1980-1982, International Terrorism annual reports 1976-1979, on line at MIPT (http://www.terrorisminfo.mipt.org/Patterns-of-Global-Terrorism.asp).
U.S. Department of State, Country Reports on Terrorism annual reports 2004-2007, on line at US DOS (http://www.state.gov/s/ct/rls/crt/).
RAND/MIPT, RAND Terrorism Chronology Database and RAND-MIPT Terrorism Incident Database (subscription only), at RAND (http://www.rand.org/ise/projects/terrorismdatabase/).
Sept 11 Strikes Cost US One-trillion Dollars: Laden. rediff.com. December 28, 2001. 2 See, for example, CRS Report RL31617, The Economic Effects of 9/11: A Retrospective Assessment ; CRS Report RL31733, Port and Maritime Security: Background and Issues for Congress ; CRS Report RL32022, Air Cargo Security ; U.S. Congress, Joint Economic Committee, The Economic Costs of Terrorism , May 2002. Congressional Research Service ˜ The Library of Congress.
http://antiwar.com/casualties/
http://www.defenselink.mil. Sept 11 Strikes Cost US One-trillion Dollars: Laden. rediff.com. December 28, 2001. 2 See, for example, CRS Report RL31617, The Economic Effects of 9/11: A Retrospective Assessment ; CRS Report RL31733, Port and Maritime Security: Background and Issues for Congress ; CRS Report RL32022, Air Cargo Security ; U.S. Congress, Joint Economic Committee, The Economic Costs of Terrorism Sept 11 Strikes Cost US One-trillion Dollars: Laden. rediff.com. December 28, 2001. 2 See, for example, CRS Report RL31617, The Economic Effects of 9/11: A Retrospective Assessment ; CRS Report RL31733, Port and Maritime Security: Background and Issues for Congress ; CRS Report RL32022, Air Cargo Security ; U.S. Congress, Joint Economic Committee, The Economic Costs of Terrorism