Sample Economics Paper on Effect of Terrorism


Terrorism, the idea it presents is broad. It comes from both friends and enemies to
humanity. To those who are friends, they commit economic terrorism and sabotage to those who
elected them. The enemies, those who are known and not known, collude and act against the
nature and growth of humanity. In essence, whether humanity likes it or not, we live under the
era of terrorism and for us to protect the interests of mankind, we have to fight from all fronts;
social, economic and political and level the field of violent extremism. Terrorism is affecting
many nations today and the affected nations undergo political, social and economic effects that
may bring them to adhere to the terrorists’ demands.
Terrorism has affected the world in different kind of ways but most importantly it has
affected the economy as a whole (Ward, 2004).It has an impacted economic directly leading to
plenty of losses. This losses are brought about by the massive property destruction, sabotage and
theft. Besides that it has also lead to increased expenditure which are brought about by the
increase of security officers, high insurance coverage cost and the money spent when buying

As paraphrased earlier, most of the terror attacks are focused on the government. This is
because most of the time the enemies are not pleased by the government and they are likely to
attack them indirectly through threats and violence. They enforce pressure on the political
decision makers by attacking a target population of the citizens (Enders, 2011).This will leave
them with no otherwise but to give in to their demands.


Terrorism has impacted a lot causing social effects in most nations. Most of the tourist
value their safety and hence cannot involve their tours in countries that have terrorist threats. The
terrorist are likely to attack the government in a way that will make a huge loss(Mansfield,
2006).When they notice that a nation is earning a lot through tourism they are likely to attack the
tourism and hospitality sector.

In conclusion terrorism causes a significant negative impact in several countries in the world
today. It seen to have damages the economic, political and social factors therefore counter
measures should be taken to eradicate it.



Enders, W., & Sandler, T. (2011). The political economy of terrorism. Cambridge University
Mansfield, Y., & Pizam, A. (Eds.). (2006). Tourism, security and safety. Routledge.

Ward, R. H. (2004, December). The economics of terrorism.