Economists for Peace and Security

The Economics of Peace and Security Journal

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A publication by Economists for Peace and Security

Terrorist financing beyond 9/11
Loretta Napoleoni

Vol 2, No 1 - Symposium: On the organization of force in the modern world, January 2007

This article analyzes the impact of counter-terrorism policies, e.g., the Patriot Act and the war in Iraq, on the financial structure of European terror networks and argues that such policies, far from defeating Jihadist activities, ended up boosting them. In response to such measures, terror finances have been skillfully restructured, the main changes being the decentralization of funding activity in Europe and in the Middle East and the declining cost of terrorist attacks.

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