Opinion: The economic cost of terrorism
A comprehensive multidimensional strategy for the ‘War on Terror’ must include a comprehensive view of other strategic military and economic affairs
By Dr P Subramanyachary
India faces several challenges in managing its internal security. Terrorism is one of them. In November 2004, a United Nations Security Council report defined terrorism as “an act intended to cause death or serious bodily harm to civilians or non-combatants, to intimidate a population, or to compel a government or international organisation to take or refrain from doing something.” Terrorism in all its forms poses a direct threat to national security, international stability and prosperity.
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Terrorist activities, cross-border terrorist activities and insurgent groups are intensifying. The techniques adopted by terrorist groups and organisations include hi-tech facilities in the form of communication systems, transportation, advanced weapons and many other means. This allows them to attack at will and create panic among the people. Terrorist activities in India have a religious form. Religious terrorism is committed by groups or individuals, with the hope of spreading or enforcing an ideology, belief, or a system of opinion. Besides, the politics of communalism and criminalisation, religious movements, irresponsible statements by political and religious leaders, violation of human rights etc are the other causes of terrorism.
Since Independence in 1947, at least 232 of the country’s 608 districts have been affected by insurgency and terrorist movements in varying degrees. At present, there are around 800 terrorist organisations operating in the country. Some of the major terrorist attacks include: March 12, 1993, when a series of 13 bombings killed 257 people; March 14, 2003, when a bomb in Mulund train killed 10; October 29, 2005, Delhi bombings, 2005 Ram Janmabhoomi attack in Ayodhya; 2006 Varanasi bombings; July 11, 2006, a series of seven bombs explode on trains killing innocent citizens; November 26, 2008, to November 29, 2008, when coordinated attacks killed at least 170, among others.
The Impact
The terrorism index in India averaged 7.65 points from 2002 to 2021, reaching an all-time high of 8.12 points in 2011 and a record low of 7.22 points in 2004. (India Terrorism Index – Values, Historical Data Charts – last updated on May 2023). Acts of terrorism can have negative effects on economies.
India ranks 102nd out of 163 countries in the world in the economic cost of violence. This expenditure is around 5 per cent of the country’s gross domestic product (GDP), according to a 2018 report. Terrorism affects the economy indirectly through direct economic destruction of property, lives, market uncertainty, xenophobia, and loss of tourism, among others. Economic terrorism refers to the covert manipulation of a country’s economy, usually by state or non-state actors. However, economic terrorism may also be vague, we have already lost more than 70,000 citizens in the name of economic sanctions.
Apart from spending on our armed forces, just to maintain the entire setup to counter insurgency and cross-border terrorism, the financial outlay is Rs 45,000 crore. Over the past 15 years, budgets have increased 26 times due to terrorism or counter-insurgency operations.
Legal System
The criminal justice system like the Criminal Procedure Code (CrPC) in India is not designed to deal with such heinous crimes. Keeping this situation in view, it was felt necessary to enact special anti-terrorism laws to impose severe punishments on the thesis of enmity against humanity. Hence, the Unlawful Activities (Prevention) Act (UAPA), 1967, Terrorist and Disruptive Activities (Prevention) Act (TADA), 1987, Maharashtra Control of Organized Crime Act, 1999 (MCOCA), Prevention of Terrorism Act (POTA), 2002, Unlawful Activities (Prevention) Amendment Act (UAPA), 2004, were introduced.
In many cases, TADA and POTA have been used to arrest a rival politician. For example, while TADA was implemented in Punjab to protect the security and integrity of the country by fighting terrorists, it was also applied to Uttar Pradesh and Gujarat where there was no threat to national security.
Actions Needed
A comprehensive multidimensional strategy for the ‘War on Terror’ must include a comprehensive view of other strategic military and economic affairs. Laws requiring the reporting of suspicious transactions help prevent terrorism. As terrorism has become global, intelligence sharing between countries is critical in preventing or mitigating terrorist attacks. India is a signatory to this plan, which requires global cooperation on terrorist content.
Addressing a United Nations High-Level Conference on Counter-Terrorism, India extended its five-point formula which is: sharing timely actionable intelligence, preventing misuse of modern communication with private sector cooperation, capacity building for better border controls, sharing information regarding the movement of passengers, and designation of Counter-Terror Focal Points to fight global terror. The United Nations should become a global hub to fight global terrorism.
Terrorism is a complex, persistent phenomenon. Its associated motivations, financing support mechanisms, methods of attack and choice of targets often evolve, thus increasing the challenges of ensuring the existence of an effective strategy to combat it. Global cooperation is very important to win this war over terrorism. India should play an active role in neutralising the menace of terrorism. The world needs to join hands to deal with terrorist groups, and a good first step is to ratify India’s proposed Comprehensive Convention on International Terrorism.
