Terrorism has become one of mankind’s most complex problems in the modern era and over the past decades. Currently it is creating havoc in many parts of the world through the destruction of life, limb and property, resulting in immeasurable pain and suffering and leaving indelible emotional and psychological scars.

This inhuman malaise has infected so many societies with serious adverse effects on socio-economic development and by extension human development.

A meeting on terrorism of senior officials in Thailand in 2003 observed:

“The increased risk and prevalence of global terrorism looms as a major threat to regional development. Terrorist acts have already imposed significant increased costs on all economies.”

“The immediate costs of terrorist acts including loss of life, destruction of property and depression of short term economic activity are compounded by the costs associated with the continuing threat of terrorism. “

“Terrorism unchecked creates uncertainty, reduces confidence and increases risk perceptions and risk premiums leading to lower rates of investment and lower economic growth. Terrorist acts can severely disrupt international trade and the continuing threat of terrorism imposes costs on international trade.

Given their greater reliance on trade and capital inflows, developing Asia Pacific Economic Cooperation Countries (APECC), economies may incur higher costs relative to their gross domestic product (GDP) from unchecked terrorism.

The costs of implementing counter-terrorism measures should be viewed as investments thereby reducing the threat of terrorism, which will further reduce risk premiums and the bias against longer term, productivity raising activities that uncertainty and risk creates.”

“New technologies introduced to strengthen security can increase efficiencies in trade and reduce trade costs.”

“Unchecked terrorism undermines trade. The threat of terrorism reduces trade flows.”

“A study of over 200 countries from 1968 to 1979 found a doubling of the number of terrorist incidents decreased bilateral trade between targeted economies by about 6 per cent (Nitsch and Schumacher, 2002).”

A shutdown of major ports or airports due to terrorist attacks could result in high costs, particularly for those economies more reliant on trade.

Recent estimates indicate that if the United States has to carry 10 per cent more in inventories and pay 20 per cent more for commercial insurance premiums as a result of the increased terrorism threat, it would cost 0.1 per cent and 0.3 per cent of GDP or US$7.5 billion and US$30 billion per year, respectively (UBS Warburg, 2001).

Modeling the impact of security on private investment and growth in 53 developing countries from 1984 to 1995 shows economies can achieve significant benefits from reducing their security risks. In the short to medium term, this study found measures that increased economic security in relatively insecure developing countries to levels in best practice regions raised private investment by 0.5 to 1 percentage point of GDP. In the long term, these measures boosted economic growth by 0.5 to 1.25 percentage points per year. Political terrorism was found to be one of the most important security factors undermining economic growth in the short to medium term (Poirson, 1998).

While Guyana has not experienced such levels of terrorism, it has had its taste and fair share of this abominable human act – fresh in the minds of all Guyanese are the despicable Lusignan and Bartica massacres, our most recent experience with terror.

The announcement by Home Affairs Minister Clement Rohee that moves are underway to beef up anti-terrorism laws is a step in the right direction. Speaking at the United Nations Office on Drugs and Crime (UNDOC) workshop, earlier this week on this issue, Rohee acknowledged that recent and rising terrorist activities have resulted in enormous emphasis by governments to combat terrorism stating that Guyana is no exception.

The disclosure by the Minister that Guyana is developing a joint information and intelligence-sharing system which will facilitate enhanced sharing of information between government agencies and law enforcement branches is indeed commendable and reassuring.