Name of the book: The Political Economy of Terrorism
Author(s): Todd Sandler and Walter Enders
Year: 2005
The phenomenon of terrorism has been subjected to comprehensive study through various analytical lenses, with the political economy approach offering a multidisciplinary perspective. By combining political and economic approaches, a political-economic analysis orientation emerges, facilitating a nuanced investigation into terrorism. Economists maintain a focus on tracing the underpinnings of terrorism while accommodating political analyses. For instance, Li (2005) undertook a political and economic study to explore the link between liberal democracies and terrorism. This endeavor entailed statistical analyses and theoretical lenses to comprehend the emergence and persistence of terrorism, yielding insights pivotal for state policy formulation. Therefore, delving into the socio-political framework of the issue becomes imperative.
The book titled "Political Economy of Terrorism" authored by Todd Sandler and Walter Enders delves into establishing the intricate relationship between terrorism and a country's economic status quo while dissecting the economic foundations of terrorism. The main body of the book is compartmentalized into ten chapters. Chapter 2 navigates the delicate balance liberal societies must strike when combating terrorism—guarding against excessive authoritarianism while protecting citizens and property. Chapter 3 offers a statistical overview of historical transnational terrorism trends, showcasing the utility of statistical analysis for prediction and policy evaluation. Chapter 4 employs basic game theory and similar techniques to scrutinize counterterrorism programs, categorized as proactive or defensive, demonstrating the varied strategic implications. While defensive policies are simpler, proactive policies entail complexity. Chapter 5 explores the ramifications of political decisions in targeted nations leading to attacks transference, redirecting assaults due to fortified borders. Chapter 6 contrasts government noncooperation with terrorist cooperation. Chapter 7 engages in game-theoretic analysis of hostage-taking incidents, assessing the effectiveness of a no-negotiation policy. Chapter 8 utilizes statistical tools to examine post-9/11 shifts, while Chapter 9 employs statistical analysis to gauge the economic effects of terrorism on sectors like tourism and foreign direct investment. Chapters 10 and 11 evaluate US homeland security and the future of terrorism, respectively.
The political-economic orientation is instrumental in defining and distinguishing terrorists—whether domestic, transnational, or other categories—significantly impacting state policies. Varied measures are directed at different perpetrator types, necessitating sociological, psychological, and historical insights for quantitative and qualitative analysis. The political approach examines common motives, ideologies, and strategies. Psychological models, such as the rational-actor model by de Mesquita, are presented. The economic approach, on the other hand, incorporates theoretical and empirical analyses, as demonstrated by Landes (1978), who related hijacking instances to policy variables and evaluated them empirically. Economists propose the rational-actor model, where terrorists are seen as rational agents optimizing goals within constraints. This model guides counterterrorism policies.
This book serves as a valuable compendium exploring the interplay between terrorism and the economy, clarifying political concepts. The authors' lucid language avoids jargon, rendering the content accessible. Researchers and scholars seeking to delve into this field would find the book to be a foundational resource. The bibliography and references therein offer further reading material. It is also a recommended read for those aiming to understand the intricate dynamics of terrorism and its implications for state responses.
Bibliography
Li, Quan (2005), “Does Democracy Promote Transnational Terrorist Incidents?,” Journal of\
Conflict Resolution, 49(2), 278–97
Landes, William M. (1978), “An Economic Study of US Aircraft Hijackings, 1961–1976,”
Journal of Law and Economics, 21(1), 1–31
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