The Hindu Business Line : Does terrorism hit the economy?

Terrorists see an advantage in the economic meltdown in different parts of the world now. Financial commitment to homeland security devours scarce resources. Terrorist threats induce higher levels of uncertainty. Terrorism calls for increased counter-terrorism expenditure, drawing resources away from productive sectors for use towards security. It is known to affect specific industries such as tourism negatively. Also, it decreases foreign investment. Tourism contributes t o GDP. And damage to the tourist industry threatens the entire economy. — *T.V. Jayaprakash, email

Sporadic acts of terrorism do not impact the economy or the markets. However, repeated acts of terrorism slow down the growth of an economy, sending signals of insecurity to domestic and foreign investors. Growth is possible only in a stable and peaceful environment, or else there will always be a lurking fear. The best way is to go to the root of the problem and address why terrorists are created. It is basically due to disparities of income between the rich and the poor, lack of education, poor upbringing of children, etc. The Government and society have to play positive roles in reducing, if not eliminating, these shortcomings so that terrorism is curbed. — Prof. V. Narayanan, email

Terrorism can impose substantial economic costs by affecting almost all sectors of the economy. Bomb blasts and other terrorist attacks can do untold damage to the industrial sector, travel and tourism, educational institutions, infrastructure, and also imports and exports.

Similarly, if institutions of higher education and research institutions are destroyed, the nation will suffer huge losses. Increase in terror incidents in a country result in decrease in inflows of FDI. FIIs will not come to the country. Thus terrorism brings about huge losses in money terms and reduces prospects of growth and earnings, apart from cutting jobs and curtailing job creation.

Therefore, with a view to facilitating steady growth of the economy and to achieve a higher GDP growth rate, we must give primacy to rooting out terrorism from the country. — Dr. K.K. Ammannaya, email

Terrorism, undoubtedly, takes its toll on the country, just as any war or political unrest and instability. Economy will be run to the ground rapidly

Ashok Jayaram, email

Terrorism does pose a serious threat to the economy. Reports state that terrorists are targeting India’s economy. The terrorist attacks on the Institute of Science, Bangalore, the serial blasts in Bangalore, Mumbai, Ahmedabad confirm that terrorists target rapid economic growth. Terrorist attacks demoralise workers, set the clock of technological advancement back, and destroy valuable infrastructure. In general, they divert the focus from developmental and economic activities to maintenance of civil security and divert the Government’s attention from administrative efficiency. — T.R. Anandan, email

Terrorism causes panic, destroys self-confidence, property and demand for products, causes confusion and cripples the workforce. Till a few years ago, terrorism was localised. Now, it has assumed the proportions of an industry. Techno-savvy terrorists pose a new threat. It may not be difficult for them to decode passwords and security codes in computer systems, bringing in chaos to industry. All confidential data could be lost.

Science fiction may become reality. — T.S. Sundareswaran, email

Economy is intertwined with all sectors, be it for good or bad. It has to battle present problems and march ahead with even greater determination. In a lopsided world, vice and virtue will vie with each other to conquer the other. Economy is not divorced from the socio-economic fabric. Hard work should get its due incentive and reward rather than peripheral derivative market speculation. The beauty and divinity of work has to inspire and motivate the people to realise the need to work and earn instead of speculating in a suicidal bubble economy. — R. M. Subramanian, email

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