The Effects of Terrorism on Global Economy

        

   

     This article talks about  a terrorist attacks in Afghanistan. Afghanistan is a country located in the Middle East. This country became such a  lawless place and had been a base for terrorists. This article relies on its reference to secondary sources.  The definition of terrorism is “the use of threats, intimidation or violence to achieve political or religious goals.” 

           When a country is threatened, war happens at times. But, even if there is no war, people live under fear and the countries such as Afghanistan, Pakistan & Syria will become defensive. When a country is in a defensive mode; its economy and their role in the world get affected. Because, the country is not going to be as involved with trade, aid to others, and other global matters.

            In addition, when individuals are threatened by terrorism, they would choose to move, and immigrate to other countries. Immigration/ migration affect economics as well. For example, due to several years of war, people in Afghanistan are constantly moving to neighboring countries such as Pakistan, Iraq and other Middle East countries. This migration could severely affect Afghanistan’s population and its economic growth.

In my point of view, immigration/migration can affect the economy in a positive or negative way. If we look at both sides of this coin, mass immigration increases the pool of workers thus causing competition for jobs, which could lead to unemployment problem. But, what about the countries that lost those workers, how will it affect them? For example, if there are one million workers in a country and half of them move to other places, what happens to the jobs those 500,000 had? In this case, there is a possibility for shortage of labor, which may lead to less productivity in the long term.

            But on a larger scale, if several countries being threatened or an entire area being under attack by terrorists, the economy of those countries are in danger and this can also affect the travel and tourism industries at a greater level. A drop in travel and tourism will have a negative impact on the economy.

            Another factor is that war is very expensive. During war times, countries like Afghanistan normally would not be trading with other countries. This gives the idea of how it kind of turns in a domino effect. One thing affects another and another and so on.

            As a final point, indeed, terrorism does affect the global economy in a big way. Definitely, the war torn countries like Afghanistan lost all of its wealth and its economy is in bad shape. If we look at the question “how does terrorism affect the global economy?” unfortunately, I personally think that there is no clear cut answer to this question.