The Economics of Terrorism: An Annotated Bibliography

Compiled by Professor V.L. Elliott and Students of the Joint Military Intelligence College
January, 2006

 

(2005). "The IMF and the Fight Against Money Laundering and the Financing Of Terrorism." from http://www.imf.org/external/np/exr/facts/aml.htm.

Money laundering is a process in which assets obtained or generated by criminal activity are moved or concealed to obscure their link with the crime. Terrorist activities are sometimes funded from the proceeds of illegal activities, and perpetrators must find ways to launder the funds in order to use them without drawing the attention of authorities. The IMF has long been involved in international efforts to combat money laundering; but after September 11, 2001, responding to calls from the international community; it intensified its activities significantly and extended them to combating the financing of terrorism.

 

(2004, 2005). "Money Laundering & Terrorist Financing Typologies: 2004-2005." 92.
http://www.fatf-gafi.org/pages/0,2987,en_32250379_32235720_1_1_1_1_1,00.html

Since its beginning, the Financial Action Task Force (FATF) has studied the methods and trends associated with money laundering – or “typologies” - as a key component of its work. From the start, the objective of this work has been not only to share information among law enforcement and other practitioners, but also to provide the necessary basis for informed decisions on anti-money laundering and terrorist financing policy. Typologies work thus plays a key role in the FATF standard-setting process. Additionally, the findings acquired through the annual FATF typologies exercise have served as material for informing a wider audience – regulatory authorities, law enforcement agencies, the financial sector and the general public – on the characteristics and trends of money laundering and terrorist financing.

 

(2005). "Regulatory Frameworks for Hawala and Other Remittance Systems." from http://www.imf.org/external/pubs/nft/2005/hawala/hawala.pdf.

Hawala and other remittance systems have gained attention in past years with the substantial growth of remittance flows from countries with large migrant labor forces and with increased focus on combating both money laundering and the financing of terrorism. The Monetary and Financial Systems Department of the IMF developed these proceedings of the Second International Conference on Hawala to promote outreach. Readers will find several articles on regulatory frameworks in remitting and receiving countries and some general articles on the problems that can arise when regulating remittance systems. I hope that this collection of articles will function as a survey of regulatory practices and an overview of experiences in different countries.

 

(2003). Suppressing the Financing of Terrorism: A Handbook for Legislative Drafting.http://www.imf.org/external/pubs/nft/2003/SFTH/pdf/SFTH.pdf

The objective of this handbook is to assist IMF member countries and other jurisdictions in preparing legislation to implement the international obligations and to meet the international standards related to combating the financing of terrorism in a manner most appropriate to their circumstances. IMF member countries and other jurisdictions wishing to bring their legislation up to the norms and standards established by the international community in the area of combating the financing of terrorism face a number of choices. The sources of these norms and standards range from legally binding international norms, such as those contained in resolutions of the United Nations (UN) Security Council, and in international conventions, such as the International Convention for the Suppression of the Financing of Terrorism, to nonbinding standards established by groups of countries acting in concert, such as the Eight Special Recommendations on Terrorism Financing of the Financial Action Task Force (FATF). While there is considerable overlap among these sources, their scope varies. Implementation of some of the norms and standards requires legislation, but on many points, implementation can be effected in a number of different ways. As a result, in responding to their international obligations and meeting the standards, countries must make a number of choices as to the scope of the legislation and its contents.

 

(2000). Targeted Financial Sanctions Simulation: 49.
http://www.nwc.navy.mil/wardept/reports/TargetedFinancial.pdf

The targeted Financial Sanctions Simulation took place at the U.S. Naval War College in Newport, Rhode Island from May 11 to 13, 2000. Participants from a variety of backgrounds explored the major challenges to the establishment of an effective targeted financial sanctions (TFS) regime. Hypothetical scenarios entailing the application of different types of targeted financial sanctions were presented. The exercise focused on key challenges to implementation, including evasion, monitoring, and the designing of an appropriate TFS regime.

Principal conclusions of the exercise include the following six items. 1. Targeted financial sanctions may be considered an alternative to comprehensive economic sanctions, which in practice have frequently injured large numbers of innocent victims in target countries and/or failed to change the behavior of decision-makers that the measures were intended to influence. 2. One of the most difficult problems in targeting financial sanctions is determining the identity of the potential targets in ways that will prevent them from moving their funds to secure havens prior to the imposition of sanctions. 3. Attention must be paid to the leverage that could be applied to those havens. 4. It is especially difficult to maintain the secrecy required to prevent asset flight with a multilateral, deliberative process. 5. When selecting targets, it is necessary to consider family members and close supporters of principals as targets in order to make financial sanctions effective. 6. To be successful, financial sanctions may need to be combined with other measures such as restrictions on travel.

 

(2003). Terrorist Financing: U.S. Agencies
Should Systematically Assess Terrorists' Use of Alternative Financing
Mechanisms. U. G. A. Office

 

(2004). "Twelve-Month Pilot Program of Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Assessments: Joint Report on the Review of the Pilot Program." 68.
http://www.imf.org/external/np/aml/eng/2004/031004.pdf

At the Fund Board meeting on July 26, 2002 and the Bank Board meeting on August 6, 2002, Executive Directors conditionally endorsed the FATF recommendations as the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) standard for the operational work of the Fund and the Bank. They also endorsed a 12-month pilot program of AML/CFT assessments using two approaches to assessments: (1) assessments led by the Fund and Bank staffs; and (2) those conducted by the FATF and FSRBs. Reports on the Observance of Standards and Codes (ROSCs) are prepared under either approach. The Boards requested a comprehensive review at the end of the pilot program focusing on the various lessons learned and the consistency and quality of assessments.

 

(August 24, 2004 ). U.S. Efforts in the Financial War on Terrorism Foreign Press Center
Briefing. U. S. Department

 

Adams, J. (1986). "Financing of Terror: The PLO, IRA, Red Brigades, and M-19 and Their Money Supply." 2183 entries.http://www.mipt.org/terrorismbibliography.asp?Start=20&searchterm=&searchtype=

An investigation into the sources and allocation of global terrorism’s money supply. Examining the PLO, IRA, Red Brigades, and M19, the book unmasks the wide variety of methods, motives, and entities, from nation-states to Wall Street, that funds global terrorism. The book suggests that eliminating a group's economic base is the key to its destruction.

 

Brown, M. E. (2003). Grave new world : security challenges in the 21st century Washington, D.C. , Georgetown University Press

Introduction : security challenges in the twenty-first century / Michael E. Brown -- Technology and security / Timothy D. Hoyt -- The perils of nuclear, biological, and chemical weapons / Bernard I. Finel, Brian D. Finlay, and Janne E. Nolan -- The proliferation of conventional weapons and technologies / Jo L. Husbands -- Information technology and security / Dorothy E. Denning -- Emerging technologies and security / Loren B. Thompson -- Defense economics and security / Theodore H. Moran -- Energy and security / Martha Harris -- Environmental factors and security / J.R. McNeill -- Demographic developments and security / Charles B. Keely -- Security and conflict in the developing world / Timothy D. Hoyt -- Transnational mass media organizations and security / Diana Owen -- Transnational crime, corruption, and security / Roy Godson -- Transnational terrorism and security / Audrey Kurth Cronin -- Security problems and security policy in a grave new world / Michael E. Brown.

 

Carafano, J. (2005). Winning the Long War: Lessons from the Cold War for Defeating Terrorism and Preserving Freedom. Lanham, MD, Heritage Foundation.http://usmalibrary.usma.edu/search/XTerrorism+and+Economic+&SORT=D/XTerrorism+and+Economic+&SORT=D&extended=0/1%2C70%2C70%2CB/frameset&FF=XTerrorism+and+Economic+&SORT=D&9%2C9%2C

The war on terrorism, like the Cold War, will be a protracted conflict. As such, also like the Cold War, it requires a long-term strategy for victory. This strategy matters not just for presidents and generals, but also for Congress, business leaders, the ACLU, the local PTA, auto mechanics, Internet geeks, and soccer moms. The strategy settled upon in the next few years will determine how we fight the global war on terrorism, and how we decide to fight the terrorists will determine how we live our lives. National strategies involve more than just the use of the armed forces. They must also take into account the economic, political, diplomatic, military, and informational instruments that might be used to promote a nation’s interest or secure a state from its enemies.

In Winning the Long War, experts on homeland security, civil liberties, and economics examine current U.S. policy and map out a long-term national strategy for the war on terrorism. Like the brilliant policy of containment articulated by the late George F. Kennan during the Cold War, this strategy balances prudent military and security measures with the need to protect civil liberties and maintain continued economic growth.

 

Carroll, S. J., T. LaTourrette, et al. (2005). "Distribution of Losses from Large Terrorist Attacks Under the Terrorism Risk Insurance Act." Santa Monica, CA: RAND: 152.
http://rand.org/pubs/monographs/MG427/

Following the 9/11 attacks and the substantial losses incurred, insurers questioned their ability to pay claims in future attacks and began to exclude terrorism coverage from commercial insurance policies. The fear that a lack of insurance coverage would threaten economic stability and growth, urban development, and jobs led the federal government to adopt the Terrorism Risk Insurance Act (TRIA) of 2002. The pending expiration of TRIA requires that policymakers assess the effectiveness of TRIA and decide whether to extend, modify, or terminate it. A central issue for this assessment is how TRIA will redistribute losses among the different parties under different circumstances. To provide an accurate basis on which to determine the effects of TRIA, the authors simulate the expected losses and the distribution of losses among stakeholder groups for each of three attack modes: an aircraft impact on a major office building, an indoor anthrax attack on a major office building, and an outdoor anthrax attack in a major urban area. The study’s results show that the ultimate distribution of losses under TRIA depends on the attack mode and cumulative annual losses. The authors also estimate the loss distribution that would result when different provisions of TRIA are changed. Based on this analysis, overall, the role of taxpayers is expected to be minimal in all but very rare cases, such as serial large attacks on major buildings, highly effective large outdoor anthrax releases, or nuclear detonations. In addition, while TRIA helps reduce uninsured terrorism losses by making coverage available and by limiting target insurers’ exposure, the analysis in this study shows that, even with TRIA in place, a high fraction of losses would go uninsured in each of the attack scenarios examined.

 

Chalk, P. (2004). "Hitting America's Soft Underbelly The Potential Threat of Deliberate

Biological Attacks Against the U.S. Agricultural and Food Industry." Santa Monica, CA: RAND: 68.
http://www.rand.org/pubs/monographs/MG135/

Over the past decade, the United States has endeavored to increase its ability to detect, prevent, and respond to terrorist threats and incidents. The agriculture sector and the food industry in general, however, have received comparatively little attention with respect to protection against terrorist incidents. This study aims to expand the current debate on domestic homeland security by assessing the vulnerabilities of the agricultural sector and the food chain to a deliberate act of biological terrorism. The author presents the current state of research on threats to agricultural livestock and produce, outlines the sector's importance to the U.S. economy, examines the capabilities that are needed to exploit the vulnerabilities in the food industry, and explores the likely outcomes of a successful attack. The author addresses the question of why terrorists have yet to employ agricultural assaults as a method of operation and offers proposed recommendations for the U.S. policymaking community.”

 

Chenelly, J. R. (2006). "Concepts for Operations to Counter Irregular Threats." Leatherneck 89(1): 2

Lt Gen James N. Mattis, the head of Marine Corps Combat Development Command, ordered the development of a concept based on lessons learned during the global war on terrorism entitled Operations to Counter Irregular Threats. The concept details specific lines of operation: combat operations, training and employment of host nation security forces, essential services, economic development, promotion of governance, and information operations.

 

Comras, V. (2005). "Al Qaeda Finances and Funding to Affiliated Groups " Strategic Insights IV(1): 54.
http://www.ccc.nps.navy.mil/si/2005/Jan/comrasJan05.asp

This paper provides a case study of al Qaeda finances and funding to affiliated groups. It is based in large part on the author’s observations and experience as one of five international monitors charged by the UN Security Council to oversee the effectiveness of the measures adopted by the Security Council against al Qaeda and the Taliban. Some of the material in this paper is drawn directly from the five reports the monitoring group made to the Security Council during my tenure

 

Dixon Lloyd, R. K. S. (2005). "Compensation for Losses from the 9/11 Attacks." Santa Monica, CA: RAND: 211.
http://rand.org/pubs/monographs/MG264/

The terrorist attacks of September 11, 2001, caused tremendous loss of life, property, and income, and the resulting response from public and private organizations was unprecedented. This monograph examines the benefits received by those who were killed or seriously injured in the attacks and the benefits provided to individuals and businesses in New York City that suffered losses from the attack on the World Trade Center. The authors examine the performance of the four basic mechanisms of the compensation system in the United States – insurance, the tort system, government programs, and charity – in responding to the losses stemming from the events of 9/11. This assessment should be useful in understanding how the losses created by 9/11 differ from those following natural disasters and other catastrophic events, and can be used to develop objectives for compensation in the event of a future major attack.”

 

 

Farah, D. (2004). Blood From Stones: The Secret Financial Network of Terror. New York: Broadway Books

 

 

Forest, J. J. a. M. V. S. (2006 (forthcoming)). Terrorism and Oil in the New Gulf: Framing U.S. Energy and Security Policies for the Gulf of Guinea. Lanham, MD, Lexington Press.
http://ctc.usma.edu/research_pub.asp

U.S. national security and energy security are inexorably intertwined, particularly when considering the multiple state and non-state actors who can wreak considerable havoc on our economy based solely on our significant dependence on foreign oil. Ensuring unfettered access to Middle East oil has sustained U.S. economic growth, but has also contributed to less desirable outcomes, such as the spread of anti-U.S. sentiments which fuels radical terrorism. Despite its oil wealth, the quality of life in the Arab World is considered lower than in many Latin American and East Asian developing countries. The authors argue that lessons learned from our experience in the Middle East should be applied to our burgeoning energy security interests in Western and Sub-Saharan Africa. Particularly, the Gulf of Guinea presents some unique opportunities, quite distinct from the Middle East. Oil is plentiful, the people are incredibly poor, and state infrastructures are weak, but radical Islam has only a limited influence in the region, and the U.S. has good relations with many African nations. Overall, this analysis suggests that we must adopt a long-term, integrated approach to protecting our energy and national security interests in West Africa.

 

Harvey, F. P. (2004). Smoke and mirrors : globalized terrorism and the illusion of multilateral security Toronto, University of Toronto Press

Transformation and complexity : predicting global security after 9/11 -- Linking globalism, terrorism, and proliferation -- Linking globalism, unilateralism, and multilateralism -- Gulf War II : unilateralism and multilateralism in practice -- WMD proliferation : the case for unilateral ballistic missile defence -- WMD proliferation : the case against multilateral arms control and disarmament -- The inevitability of terrorism and American unilateralism : security trumps economics -- The moral foundations of Canadian multilateralism : distinction trumps security -- Recalibrating Canada's moral and diplomatic compass.

 

Henry H. Willis, D. S. O. (2004). "Assessing Container Security: A Framework for Measuring Performance of the Global Supply Chain." Santa Monica, CA: RAND: 48.
http://rand.org/pubs/technical_reports/TR214/

The global supply chain consists of the supply, manufacturing, storage, distribution, and retail entities that transform raw materials into finished products in the hands of consumers. Historically, the main security concern has been loss of cargo, but increased concern about terrorism has brought the vulnerability of shipping containers to attention. Since an attack on a port could be deadly and economy-crippling, new security measurements have proliferated — some of which may add delays and damage efficiency. But has all this made the system more secure or less secure? How will we know? This report lays out a framework for analyzing the structure of the container supply chain and how the parts interact. The authors offer a series of preliminary conclusions about gaps in the current security approach, then lay out directions for further research. The authors recommend, for instance, that the public sector seek to bolster the fault tolerance and resilience of the system, while the government should be responsible for assessing security and for decisions to close ports

 

Hesterman, J. (2005). "Transnational Crime and the Criminal-Terrorist Nexus: Synergies and Corporate Trends." The Walker Papers: 89.
http://aupress.au.af.mil/Walker_Papers/PDF%20Bin/Hesterman.pdf

Much research has been done on transnational crime and terrorist financing; however, the intersection of the two requires more study, as this “battle at the crossroads” requires new approaches. Asymmetric engagement and use of “soft” instruments of power are essential. The use of containment and deterrence, strategies that policy makers typically do not find appealing, are necessary in this new realm as we try to marginalize the threat and decrease the playing field. Scholarly study regarding the life cycle of modern terrorist groups may yield clues as to when and why, despite their religious ideology, they partner with organized crime. More expertise in the field of financial forensics is crucial, with practitioners educated on both organized crime and terrorist-funding tactics. Powers bestowed on federal law-enforcement agencies through the Patriot Act must be upheld to help fight modern organized crime and terrorism in the global environment, and agents require expanded training on proactive,

investigative approaches to stop crime and terrorist acts before they happen, not merely to analyze the outcome, as is the traditional procedure. Government agencies are effectively sharing information at the tactical level. Strategic-level interaction is weak and requires attention. With greater education and training on these issues, the US military could be a powerful force multiplier. This study academically frames the issue, providing policy makers a fresh perspective on existing and emerging threats to use in their future planning and modeling efforts.

 

Hurtado, J. A. (1993). A Statistical Analysis of Terrorism and Instability in Latin America. Air Force Institute of Technology (AFIT) Thesis

 

John A. Lynn, P. D. (2005). "Patterns of Insurgency and Counterinsurgency." MILITARY REVIEW 6.http://www.smallwars.quantico.usmc.mil/search/articles/lynn.pdf

Whether or not we welcome the prospect, counterinsurgency operations are in our future. Statebuilding and counterinsurgency are primary tasks for U.S. Armed Forces. Ideally, a successful counterinsurgent effort is based not only on effective military action but on real reform by a government that has its people’s loyalty. American troops must concentrate on stateformation and peacemaking, which require different

tactics than conventional operations and a different psychology than the warrior ethos. To succeed, the United States must gain the support, or at least the compliance, of the majority of Iraq’s population, but this will mean U.S. troops have to accept risks.

 

Johnston, B. R. and O. M. Nedelescu (2005). "The Impact of Terrorism on Financial Markets." 20.http://www.imf.org/external/np/exr/facts/aml.htm

The terrorist attacks that have occurred in the past few years around the world have raised international awareness of the danger of terrorism and its complex repercussions on the financial markets. This paper explores the ways in which financial markets reacted to the attacks and the authorities’ responses. Well-functioning financial markets, bolstered by the prompt and effective reaction of the relevant authorities, were generally efficient in absorbing shocks stemming from terrorist attacks. The paper discusses market and regulatory responses to the terrorist attacks and the elements that should be strengthened to enhance the resilience of financial markets to terrorism.

 

Kiser, S. (2005). Financing Terror: An Analysis and Simulation for Affecting Al Qaeda’s Financial Structures. RAND. Santa Monica, CA.http://usmalibrary.usma.edu/search/YTerrorist+Financing&SORT=D/YTerrorist+Financing&SORT=D&extended=0/1,18,18,B/l856~1456035&FF=&1,0,,1,0

RAND graduate school dissertation that develops a model that enables policymakers and analysts to understand how terrorist financial networks work, how current policies targeting those networks will affect them, and how terrorist organizations are likely to react to those policies. The author makes a series of recommendations and suggests areas for further information use or collection. The entire document is also available in pdf format at:

 

Kiser, S. (2005). Financing Terror: An Analysis and Simulation to Affect Al Qaeda's Financial Infrastructures. Santa Monica, CA: RAND 245 http://rand.org/pubs/rgs_dissertations/RGSD185/

Despite the centrality and level of activity in the financial war on terrorism, little data, analysis, or other serious inquiry into the effectiveness of this activity exists. This dissertation develops a model that enables policymakers and analysts to understand how terrorist financial networks work, how current policies targeting those networks will affect them, how terrorist organizations are likely to react to those policies, and what more can be done. Given the centrality of Al Qaeda and its affiliates in the global war on terror, the dissertation specifically explores the questions of how U.S. and international counter-terrorism policies affect those organizations’ financial support networks, and how Al Qaeda and its affiliates are likely to react to those initiatives. The author makes the following recommendations: (1) Fully integrate counter-finance strategies into a comprehensive strategy; (2) view finances as not only a target subject to disruption but also as a lucrative intelligence source; (3) expand the focus of counter-finance policies from exclusively first-order effects to include second-order effects; (4) craft counter-finance strategies and policies with clear long- and short-term desired effects in mind; (5) given terrorists’ creativity at raising funds, ensure that all levels of law enforcement have some counter-financing awareness; (6) continue to exert strong pressure on off-shore banking havens and help build capacity abroad to enforce such laws; (7) properly inform well-meaning donors, perhaps through a Transparency International organization for charities.”

 

Kohn, B. S. (2002). Attacking Islamic Terrorism's Strategic Center of Gravity. NAVAL WAR COLL NEWPORT RI JOINT MILITARY OPERATIONS DEPT: 32.http://handle.dtic.mil/100.2/ADA401841

The strategic center of gravity for militant Islamic terrorist groups is the popular support of the Muslim world. Popular support provides the terrorists invaluable sources of funding, manpower, legitimacy, and the real potential to threaten entrenched governments in Muslim countries. Without this popular support, Osama bin Laden and other violent global Muslims will not be able to achieve their desired end-state. In the strategic war against international Islamic terrorists, the United States and her coalition partners will have to carefully balance the application of national power to successfully reduce long-term Muslim support for radical Islam. Military power will be of limited utility in this greater strategic struggle. While the United States can choose many different courses of action to degrade popular support for radical Islam, it can best attack this center of gravity by strongly encouraging reform in Islamic states, with the goal of achieving more representative governments. America should focus on improving basic conditions necessary for democratic growth; promoting the development of political institutions required for representative government; and directing efforts on several of the more important Islamic countries. Success will require great patience and purposeful effort.

 

Lakdawalla, D. G. Z. (2002). "Insurance, Self-Protection, and the Economics of Terrorism" National Bureau of Economics(NBER Working Paper No. 9215).
http://papers.nber.org/papers/w9215

This paper investigates the rationale for government intervention in the market for terrorism insurance, focusing on the externalities associated with self-protection. Self-protection by one target encourages terrorists to substitute towards less fortified targets. Investments in self- protection thus have negative external effects in the presence of rational terrorists. Government subsidies for terror insurance can discourage self-protection and limit the inefficiencies associated with these and other types of negative externalities. They may also serve as a complement to a policy of publicly provided protection.

 

 

Langelett, G. L. and M. C. Schug (2004). "An Economic Analysis of September 11th." Social Studies 95(4): 161-165.
http://search.epnet.com/login.aspx?direct=true&db=aph&an=14222766

Analyzes the impact of the September 11, 2001 terrorist attack on economics. Partition of the Palestine; Refusal of the Arab League to recognize Israel as a state; Events affecting the turmoil in the Middle East; Economic analysis made by Gary S. Becker, an economist who won a Nobel Prize, on criminal behavior.

 

LtCol Harold Van Opdorp, U. (2005). "The Joint Interagency Coordination Group The Operationalization of DIME." Small Wars Journal.
http://www.smallwarsjournal.com/documents/swjmag/jul05/odie.htm

Current United States National Security policy documents and future global trends drive the requirement to create and maintain an operational level organization to integrate the four elements of national power: diplomatic, informational, military and economic (DIME). By establishing a Joint Interagency Coordination Group focused on integrating the elements of national power at the operational level, the United States can better prepare itself for successful execution of complex emergencies and stabilization and reconstruction operations in the coming decades.

 

Matousek, J. (2001). Role of International Organizations in Combating Terrorism. BRNO UNIV OF TECHNOLOGY (CZECHHOSLOVAKIA) INST OF ENVIRONMENTAL CHEMISTRY/TECH: 4

Roots and developments to present UN system for combating terrorism starting long before existence of UN are reviewed. Various forms of international crime as a base for terrorism are shown, inter alia illicit trafficking with drugs and weapons, money laundering, corruption, trafficking with human beings and like and response in build-up the UN system, headed by the UN Office for Drug Control and Crime Prevention (ODCCP), its Centre for International Crime Prevention (CICP) and the Terrorism Prevention Branch (TPB) established recently. Information on the role, functions and programmes of those bodies are presented. KEY WORDS International terrorism, narcotic drugs, crime prevention, combating terrorism, terrorism prevention, UNO, UNDCP, ODCCP, CICP, TPB

 

McCormack, R. (2005). "Looking Forward In Wartime: Some Vulnerable Points In The Global Economy." Trade & Economics.
http://www.csis.org/component/option,com_csis_pubs/task,view/id,117/

The purpose of this paper is to address several key economic issues facing the United States and the world at a time when war and terrorism-related activities may potentially further stress the global economy.

 

McCormack, R. (2005). "Senator Chuck Hagel's Conference On Global Economic Imbalances And U.S. Current Account Deficits." Trade & Economics.
http://www.csis.org/component/option,com_csis_pubs/task,view/id,115/

Lessons learned from the second reagan administration’s efforts to contain the u.s. current account problem of that era. implications for the management of the present global economic imbalance problem

 

Napoleoni, L. (2003). Modern Jihad: Tracing the Dollars Behind the Terror Networks. Sterling, VA, Pluto

 

O’Connell, S. (2005). "Economic Terrorism: The Radical Muslim War Against the Western Tax Base." Small Wars Journal.
http://www.smallwarsjournal.com/documents/swjmag/jul05/oconnell.htm

This paper outlines a theory concerning why Muslim terrorists attacked the World Trade Towers on Sept. 11, 2001, bombed London’s subway during the G-8 economic summit on July 7th, and detonated blasts in an Egyptian resort on 23rd July. The reason for these attacks was to create ‘Economic Terrorism.’ Economic Terrorism is defined here as the attempt to assault and destroy a foe through decimation of the enemy’s tax base via rank economic sabotage. Such attacks on economic infrastructures lower net tax yield, thereby shrinking the capital pool for military spending.

 

Office, G. A. (2002). "Money Laundering: Extent of Money Laundering through Credit Cards is Unknown." GENERAL ACCOUNTING OFFICE WASHINGTON DC(GAO-02-670): 61.
http://handle.dtic.mil/100.2/ADA405152

The art of warfare to the terrorist is a sacrosanct event, waged with incontrovertible conviction and viewed as a mere extension of an ill-defined front on an endless field of battle. This SRP hopes to show the strategic impact of illicit drug manufacture and distribution on (I) financial sustainment of the terrorist organization, (2) its (illicit drugs) viability as a weapon of mass destruction, and (3) potential to impair the readiness of U.S. Armed Forces. I will seek to convey through historical overview and current events the symbiotic relationship that exists between illicit drugs and terrorism, to include the funneling of illicit drug profits to sustain known terrorist organizations, the trading of illicit drugs to obtain military weaponry, and upsurge of illicit drug use by U.S. military personnel. Additionally, it discusses certain aspects of on going U.S. military operations in Afghanistan and Colombia, showing a corollary increase of opium and coca production/distribution from those regions.

 

Patrick D. Buckley, M. J. M. (2005). The Financial Front in the Global War on Terrorism. MILITARY ACADEMY WEST POINT NY: 19.
http://handle.dtic.mil/100.2/ADA434893

Since the terrorist attacks of September 11, 2001, the United States has aggressively executed the Global War on Terrorism on many different fronts. The approval of Executive Order 13224 on September 24, 2001, marked a bold initial step toward targeting terrorists' financial networks. The success of terrorist organizations is dependent upon these financial networks because even though terrorist attacks are not necessarily expensive, the support of international terrorist networks, training camps, command and control, and infrastructure requires either a large reserve of available finances or the ability to raise significant funding. Because terrorist organizations must raise, move, and use money, aggressively pursuing terrorists on a financial front can and should be an integral component of any counterterrorism strategy. There are three different but interrelated dimensions of this front that either target terrorists' financial networks or capitalize on their dependency on finances. First, the government can freeze and block financial assets by labeling individuals or organizations as terrorists or as being associated with terrorism. These actions degrade terrorists' access to funds and increase the costs of raising, transferring, and using funds. Second, tracking the movement of funds among individuals in terrorist groups and their supporters provides verifiable indications of associations, relationships, and networks. Third, many of the acts in which terrorist networks engage to raise and move funds are illegal. Terrorists and their financial supporters frequently commit illegal fund raising, money laundering, tax evasion, fraud, and international currency violations. Thus, prosecuting individuals for financial crimes can be an effective strategy. With this framework the authors examine some of the actions taken and lessons learned by the multiple agencies, corporations, and individuals that have played critical roles in the financial war on terrorism.

 

Prados, A. B. a. C. M. B. (5 August 2004). Saudi Arabia: Terrorist Financing Issues. C. R. Service: 20

 

Reaves, J. L. (2003). "The Emerging Threat of Illicit Drug Funding of Terrorist Operations." WAR COLL CARLISLE BARRACKS PA XAUSAWC 54.
http://handle.dtic.mil/100.2/ADA415734

The strategic center of gravity for militant Islamic terrorist groups is the popular support of the Muslim world. Popular support provides the terrorists invaluable sources of funding, manpower, legitimacy, and the real potential to threaten entrenched governments in Muslim countries. Without this popular support, Osama bin Laden and other violent global Muslims will not be able to achieve their desired end-state. In the strategic war against international Islamic terrorists, the United States and her coalition partners will have to carefully balance the application of national power to successfully reduce long-term Muslim support for radical Islam. Military power will be of limited utility in this greater strategic struggle. While the United States can choose many different courses of action to degrade popular support for radical Islam, it can best attack this center of gravity by strongly encouraging reform in Islamic states, with the goal of achieving more representative governments. America should focus on improving basic conditions necessary for democratic growth; promoting the development of political institutions required for representative government; and directing efforts on several of the more important Islamic countries. Success will require great patience and purposeful effort.

 

Richards, A. (2002). "Socioeconomic roots of Middle East radicalism.” " Naval War College Review <
http://proquest.umi.com

This article may be considered an “all source” collection of the catalysts that promote and foster terrorist entities, in the Middle East

 

Stephen, K. D. (2004). "Financing Terror: Analysis and Simulation to Affect Terrorist Organizations' Financial Infrastructures." RAND GRADUATE SCHOOL SANTA MONICA CA(CI04-1262 ): 217.
http://handle.dtic.mil/100.2/ADA438830

This dissertation examines modern terrorist financing and counter-finance policies through an in-depth narrative as well as computer simulation. The background of terrorist financing is developed through three case studies, examining the methods and functions of financial systems by the Palestinian Liberation Organization (PLO), the Provisional Irish Republican Army (PIRA), and the Tamil Tigers of Elam (LTTE). With that background, an in-depth case study of al Qaeda and its affiliates' financial infrastructures is conducted, noting key similarities, differences and developments between its fiscal operations and those of other terrorist groups. That case study is used to inform a computer simulation regarding al Qaeda's ability to collect and use money for terrorist operations. The simulation finds that completely stopping the flow of money to terrorist organizations in impossible. Furthermore, it finds that in the short term, the most effective policy at decreasing terrorist funding is to attack a terrorist group's capacity to collect funds-arresting financiers, shutting down front or shell businesses and closing false charities are examples. In the long term, undermining the appeal of al Qaeda's ideology is key to reducing terror money supply. Passing better laws, better enforcement of those laws and increasing law enforcement presence are moderately effectively policies, while increasing the length or severity of punishment for financing terror was found to be the least effective. The dissertation concludes with a list of policy recommendations, including better integrating counter-finance policies within the broader counter-terrorism strategy, defining clear short- and long-term goals regarding terror money, finding and exploiting secondary and tertiary effects of targeting terrorists' finances, and viewing terrorist finances as a source of intelligence as well as a target to be attacked.

 

Weintraub, S. (2005). "America's 100 Years of Lagging Performance." Trade & Economics 72: 2.
http://www.csis.org/component/option,com_csis_pubs/task,view/id,2579/

The first time I paid attention to South Korea’s economy some 50 years ago when I as a junior State Department officer, I served on the desk responsible for Japanese and Korean affairs. The consensus of informed observers then was that South Korea’s economic prospects were dismal after years of Japanese occupation and the destruction from the Korean War. The country’s GDP per capita, as best determined, was the equivalent of $60.

 

Weintraub, S. (2005). "The Distorted Nature of Trade Debates." Trade & Economics(67).
http://www.csis.org/component/option,com_csis_pubs/task,view/id,1007/

It is distressing to examine the partisan arguments both for and against proposed trade agreements because there appears to be a prodigious effort on both sides to obscure the real issues.

 

Weintraub, S. (2005). "Invigorating North American Integration." Trade & Economics(66).http://www.csis.org/component/option,com_csis_pubs/task,view/id,1006/

The formation of the North American Free Trade Agreement (NAFTA) was a remarkable achievement in that it shifted Mexico’s relationship with the United States from a “distant neighbor” (the title of a widely read book by Alan Riding1) to a cooperative economic partner.

 

Weintraub, S. (2005). "Mexico's Oil, Gas, and Energy Policy Options." Trade & Economics(68).
http://www.csis.org/component/option,com_csis_pubs/task,view/id,1008/

The difficulties Mexico faces in making decisions on oil, gas, and energy policy are essentially political, not technical. This does not make the problems easier to resolve; indeed, it makes them harder to deal with because technical issues can be approached head on.

 

Weintraub, S. (2005). "The Puzzling Mar de Plata Summit of the Americas." Trade & Economics(71): 2.
http://www.csis.org/component/option,com_csis_pubs/task,view/id,2301/

 

Weintraub, S. (2005). "Reflections on Foreign Aid Techniques." Trade & Economics(69): 2.
http://www.csis.org/component/option,com_csis_pubs/task,view/id,1009/

The most important goal of foreign aid is to reduce poverty. Poverty reduction is the first point of the Millennium Development Goals of the United Nations. James Wolfensohn, president of the World Bank from 1995 to 2005, made poverty reduction his main interest, indeed, his passion.

 

Weintraub, S. (2005). "What Is Happening to the Rules-based System for the Conduct of International Trade?" Trade & Economics(70): 2.
http://www.csis.org/component/option,com_csis_pubs/task,view/id,1896/

American politicians have a tendency to assert that the United States obeys rules it agrees to in international trade agreements, and then imply that because foreign countries are less scrupulous, this gives the United States the right to ignore the rules as well. “We” are not the culprits; “they” (other countries) are, and, therefore, let’s give them a dose of their own medicine.

 

Weintraub, S. (2005). "Will Latin America Get More Attention in Bush's Second Term?" Trade & Economics(63).
http://www.csis.org/component/option,com_csis_pubs/task,view/id,1003/

This is the season for Latinophiles to urge the U.S. administration to give greater attention to its relations with Latin America and the Caribbean. As one such report put it, “…in recent years, the United States and Latin America have increasingly been pursuing different agendas

 

Weintraub, S. (2006). "The WTO's Uncertain Future." Trade & Economics(73): 2.
http://www.csis.org/component/option,com_csis_pubs/task,view/id,2655/

The World Trade Organization (WTO) is made up of three major groups of nations: the developed industrial, or post-industrial, countries; the emerging countries that are important traders; and the developing countries, including the least developed among them. There is some overlap, but this tripartite division is useful in understanding what happened at the Hong Kong ministerial meeting in December; and it is even more valuable in assessing the future dynamism of the WTO.

 

Weiss, M. A. (2004). "Terrorist Financing: Current Efforts and Policy Issues for Congress." CRS Report for Congress: 55.
http://www.au.af.mil/au/awc/awcgate/crs/rl32539.pdf

On July 22, the 9/11 Commission Report was released. One of its recommendations is that the priority of the U.S. strategy to combat terrorist financing should shift from freezing assets to following terrorists’ money trails in order to gain intelligence leads. This recommendation has led to widespread discussion of the overall U.S. effort to combat terrorist financing. This report provides an agency by agency survey of U.S. efforts and presents numerous policy issues. This report will not be updated.

 

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