Terrorism aims to create terror, a feeling of insecurity, and the idea that leaders can no longer protect those they lead. It leaves people stunned and has an emotional impact that lives on through its political implications.
1. Decline in physical and emotional health
The impact of terrorism has an impact on the health and safety of individuals and society.
- acute and chronic symptoms of anxiety
- general psychological distress
- long term emotional strain and tension
- loss of life
- major depression
- post-traumatic stress disorder.
2. Decrease in economic growth
Terrorism has a negative impact on economic growth by affecting macroeconomic variables.
- decline in stock markets
- increase in inflation
- increase in insurance claims
- less domestic investment
- loss of tourism
- reduction in foreign direct investment.
3. Increased international tensions and conflicts
Increased nationalism and foreign scepticism can result from terrorism and such political invents can increase international tensions and conflicts.
- anti-trade sentiments towards businesses
- closing down borders to trade and immigrant workers
- discrimination towards immigrant workers
- increase in taxes and trade-tariffs
- less support for refugees
- negative sentiment towards a foreign culture.
4. Reputational damage to legitimate organisations
Terrorism financing also poses significant risks to any organisation involved in the activity, even if their involvement is unknowingly.
- negative sentiment to government law enforcement agencies if they are considered to have not done enough to prevent an act of terrorism
- reputational damage to financial institutions if they are misused as part of the process
- undermine the work of non-government organisations such as charities and humanitarian groups, if misused as a cover for terrorism financing activity.
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