The Theory Of Economics And Finance - 1941 Words

Economics As the DIMEFIL paradigm defines economics and finance as two different fronts on which to battle terrorism, I will begin by defining the terms. The Economy of terrorism is to be considered on a local or interpersonal level; what are the ground level activities which finance terrorism, and who are the individuals who take part? The question must also be asked, what can be done to reintegrate these individuals into the country s larger economic infrastructure? Economic integration is a must, and is a sector in which the Pakistani government has been lacking. A chapter from Praeger s Essentials of Counterterrorism entitled The Shadow Economy outlines how those who function within the shadow economy can find and launder funds†¦show more content†¦Growth in the shadow economy can also reflect a reduction in the loyalty to the central government among the population. A lack of social safety nets can also drive individuals to illegal means to make ends meet. Pakistan has done very little to address these issues. As was mentioned earlier in relation to the Afghan refugees, the police have regularly harassed, extorted, and expelled Afghans. There are also widespread allegations of corruption along the boarder with Afghanistan made by a plethora of reputable papers, and it is important to note that there are no statements made expressly about the border in the 20-point National Action Plan. In a 2014 interview with the BBC, Pakistan s then-national security adviser, Sartaj Aziz, stated said â€Å"the entire border has been criminalized.† By allowing large parts of the country to remain essentially lawless, Pakistan provides both funding and shelter to the terrorists who hide in this mountainous region. In the short term, military operations may be helpful in securing this border, but must be more closely monitored and substantial than they are now so as to reduce corruption. Long term, however, economic integration is really the only option. So long as people in this region feel that they can best provide for themselves and their families by acting in an economic sphere which is by definition outside of the government s purview, they will continue to operate that