The threat of terrorism and regional development / Ron Huisken

"January 2004."

Includes bibliographical references (pages 14)

"The threat of international terrorism has had a clear negative effect on the welfare of most if not all states, in both material and intangible terms. The mechanisms through which this threat is translated into economic consequences include the diversion of resources away from productive investment, an increase in international transaction costs, depressing business and consumer confidence, and the abrupt emergence in the United States of substantial budget deficits. Moreover, the war against terror has become entangled with the broader issue of global governance. It may have significant and enduring geo-political and, in time, geo-economic consequences. International terrorism presents the international community with a serious and uniquely slippery challenge. A sense of perspective is important, however. Setting aside WMD, terrorist attacks and the threat of future attacks can hurt an economy but are very unlikely in themselves to derail an economy. Similarly, it is abundantly clear that we are far from helpless in the face of this threat. Where international collaboration has been focussed and sustained there have been good results. It is therefore a matter of deep concern and regret, including from the economic point of view, that prosecuting the war on terror is proving to be so divisive politically. The most powerful economic stimulant for our region would be the re-constitution and careful maintenance of the international political coalition against terrorism."--Abstract from SDSC web site