Economics - war, crime, and terror - Essay Example

Economics-war, crime and terror In the World today, there are many happenings such as organized crime and terror groups that affect the global economy. In most cases, an organized crime is a political conservative towards change. However, these crimes may seek to profit from political change if it does not take place. On the other hand, terror is organized with the aim of seeking to overthrow the political status quo when all other actions of redressing injustices will not work. In many decades, war, crime and terror activities have been most pressing issues in the political economy.

It is certain that these activities can cause considerable implications in the World economy.It is evident that war and other terror attacks are known to cause economic and psychological effects of varying intensity. Nonetheless, these impacts come from the indirect costs of crimes that differ through sectors, countries and time (Schneider & Meierrieks 17). The most notable consequence associated with crimes is the human loss. Terror activities are known to cause civilian mortalities ranging from hostage takeover to the bombings (Schneider & Meierrieks 14).

Although this does not seem like a direct economic impact; however, panic is known to influence the economy. It affects consumption, as well as investment behavior of persons that can lead to market disturbances. Therefore, the feeling of insecurity has several repercussions hence can disrupt the population’s spending behavior. Businesses are the major targets of any terror attack (Schneider & Meierrieks 28). As a result, this affect the way insurance operates since the risks of terrorism are difficult to quantify the prices.

Many people have argued that the economic consequence of international crime remains a medium to a long term issue (Schneider & Meierrieks 44). Recommendations The following are some of the necessary recommendations that can help handle the issue of war.1. CivilizationCivilization is important in the sense of believing that we are all under God. We are not supposed to be too hard on ourselves instead we should embrace love to one another. In addition, our Lord Jesus Christ will always be there for us, and he is not the kind to choose violence at the expense of peace.

As a result, some parties will withdraw the troops and others mention the aim of strengthening their military in order to have a stronger nation.2. Knowing the budget costsWar is likely to have a significant impact to the change of foreign policy. Some of the target sectors in the policy include security and military. It is imperative that these aspects have a considerable impact on the economy of the country that enforces the policy (Schneider & Meierrieks 42). As a result, it is important to monitor the huge budget of the military sector because it is a long term investment.

When increasing anti-terrorism expenditure, it is prudent to weigh the costs, as well as benefits of other programs (Schneider & Meierrieks 34). Security reinforcement imposes the costs on the economy of a country.3. Being smartBeing smart is the best way to avoid the collisions that can lead into war (Schneider & Meierrieks 34). To evade this from happening is by using the best approach in any bidding war such as bidding right the first time. In most cases, fears arise as the competition between parties will be highest that creates tension hence resulting to war.

Works CitedSchneider, and Daniel Meierrieks. The Economics of Terrorism and Counter-Terrorism: A Survey; (part I). Munich: CESifo, 2010. Print.