International terrorism
became a prominent tool in political agendas in the late 1960s. A major
act of international terrorism occurred on September 11, 2001 in a set
of coordinated attacks on the United States.
The US has made the "War on Terrorism" the centerpiece of its global
strategy since the attacks on the Pentagon and World Trade Centre. It
has proclaimed leadership of a worldwide alliance to exterminate the
scourge of terrorism.
But whatever the motives, the act of war, be it an offence, or an act
of defence comes at an economic and social cost. There is more than
some truth to the fact that often terrorism is rooted in social and
economic deprivation.
In the immediate aftermath of the American invasion of Afghanistan in
2001, Al-Qaeda and the Afghan Taliban sought refuge in the Pakistani
tribal belt due to the porous international border and started offering
resistance to US forces from safe sanctuaries. Socio-economic and
politico-religious conditions in the tribal region also favoured these
militants.
The world is currently confronting terrorism in its different
manifestations. After 9/11, terrorism has abruptly changed the
socio-economic and geopolitical situation of the world. Pakistan is also
facing the menace of terrorism which is eroding the country’s social
structure, economic development and political system. Acts of terror are
threatening law and order conditions, violating human rights, damaging
basic infrastructure and killing economic opportunities.
In the post-9/11 scenario, effectively checking political violence
and terrorism in Pakistan through preventive legal measures remains a
challenge at both the state and local levels. The immediate costs of
terrorist acts are loss of human lives, destruction of property and
infrastructure and curtailment of short-term and eventually, long-term
economic activity.
Additionally, terrorism creates uncertainty, reduces confidence and
increases risk perception, leading to lower investment and weak economic
growth. According to official estimates, Pakistan has suffered a loss
of around $35 billion to $40 billion since 2001-02 due to the war on
terror. Its economic growth came to a near halt at around 2% in fiscal
year 2009, not only as a result of the global financial crisis, but also
because of internal issues.
The war on terror and rehabilitation of internally displaced persons
consumed a big chunk of the government’s financial resources, widening
the fiscal deficit and halting economic growth.
According to experts in international economics, the soft image of a
country is like a cashable commodity, as it is an important source of
attracting foreign direct investment. FDI fell to $463 million in the
first quarter against $1.116 billion during the same period the previous
year, a decline of 58.5%.
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