Economic concerns in the aftermath of terrorism

Economic concerns in the aftermath of terrorism Introduction Terrorism is one of the major challenges threatening the existence of societies in different parts of the world. Acts of terror have been in existence for centuries. Currently, governments are facing terrorism from domestic and transnational sources (Gaibulloev Sandler, 2009). Various scholars have tried to define the term terrorism, thus leading to numerous definitions.Advertising We will write a custom research paper sample on Economic concerns in the aftermath of terrorism specifically for you for only $16.05 $11/page Learn More Gaibulloev and Sandler (2009) define terrorism as â€Å"premeditated use or threat to use violence by individuals or sub-national groups in order to obtain a political or social objective through the intimidation of a large audience beyond that of the immediate victims† (p. 362). Gaibulloev and Sandler (2009) further opine that modern terrorism is intended to cause harm to a particular society in order to comp el the targeted government to give in to their demands. Therefore, terrorists try to achieve their goal by circumventing democratic processes. Acts of terror may result in adverse economic and or human losses. For example, the al-Qaeda terror network advocates its supporters to attack critical economic centers. Gaibulloev and Sandler (2009) are of the opinion that such losses expose governments’ incapability to protect their citizens and assets. As a result, the public may lose confidence on their government. In addition to social impacts, terrorism has significant economic impacts on society. Therefore, it is imperative for the government to integrate effective mechanisms to curb this social ill. This paper focuses on the economic dimension of terrorism by describing and critically analyzing the economic concerns due to terrorism. Analysis Direct economic costs According to Johnston and Nedelescu (2005), terrorism has undergone significant changes over the past few years. Te rrorists are targeting civilians and business activities leading to substantial destruction of property and loss of life. The Organization for Economic Cooperation and Development (OECD) estimated the direct cost of the 9/11 terrorist attack to be $ 27.2 billion, which represents 25% of the country’s Gross Domestic Product. Local and Foreign Direct Investment (FDI) Local and Foreign Direct Investment (FDI) are some of the major avenues through which governments stimulate their countries’ economic growth and development. According to Alfaro (2003), both the developed and developing economies are increasingly offering incentives to foreign investors in order to attract them to invest in their countries.Advertising Looking for research paper on political sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More FDI has positive impacts on the host country’s growth and development efforts (Carkovic Levine, 2004). F irst, FDI results in the transfer of knowledge and technology to the host country, thus jumpstarting its economy. Terrorist attacks diminish the attractiveness of a particular country to investors, which arises from an increment in the degree of uncertainty with regard to foreign direct investments. Terrorism may result in the destruction of essential infrastructure. For example, the attack on London’s financial district in 1992 by the IRA terrorist group resulted in damages worth  £ 800 million. Additionally, the attack conducted on London’s railway network in July 2005 resulted in damages whose cost was estimated to be  £ 1 billion (Gaibulloev Sandler, 2009). Such destructions may lead to increment in the cost of operation. Moreover, investors may be forced to integrate private security measures in order curb terrorism, which may affect the productivity of a company adversely. Terrorism may also increase the cost of doing business, thus hindering a countryâ€⠄¢s economic growth. For example, companies may be forced to pay higher insurance premiums (Gaibulloev Sandler, 2009). The aviation industry is one of the industries that have been greatly affected by insurance premium hikes. However, other sectors such as tourism, transportation, and the energy sector have also been affected (Organization for Economic Development and Cooperation, 2002). Secondly, firms may experience a challenge in their efforts to recruit the necessary workforce, which arises from lack of incentives to work in a country that is prone to terrorism. Therefore, the performance and productivity of companies may be affected adversely by terrorism. Considering the fact that investors are risk averse in their investment process, they may decide to redirect their local and foreign direct investments to countries that are not prone to terrorism. For example, the success of the European Union depends on the extent of the developed investor confidence. Disruption of investo r confidence is likely to lead to the member states experiencing low Gross Domestic Product (GDP) due to change in investment behavior. Moreover, lack of investor confidence may also lead to a decline in asset prices.Advertising We will write a custom research paper sample on Economic concerns in the aftermath of terrorism specifically for you for only $16.05 $11/page Learn More Johnston and Nedelescu (2005) further opine, â€Å"Falling investor confidence may trigger a generalized drop in asset prices and a flight to quality that increases the borrowing costs for riskier borrowers† (p.32). This aspect may adversely affect a country’s economic growth. Public spending Government spending is another major macroeconomic element that is influenced by terrorism. Government spending refers to the expenditure that is incurred by a particular government in the process of providing goods and services to the public. According to Gaibulloev and Sandler ( 2009), terrorism increases government spending in a number of ways. Governments are forced to increase their expenditure in an effort to implement various defensive and proactive actions to counter terrorism. Such campaigns may entail an effort to capture the terrorists. Herendeen (2008) asserts that investments on such security measures may crowd investment in some economic sectors such as health, infrastructure [canals, bridges and highways], and education. The 2001 terrorism attack in the US stimulated the US government to invest a substantial amount in research and development on military projects. Similarly, member states of the Organization for Economic Cooperation and Development (OECD) increased their investment on counter-terrorism mechanisms. Therefore, governments shift their focus from economically productive sectors. According to a survey conducted by the Organization for Economic Development and Cooperation in 2002, a 1% increment on military security spending, reduces a countries spending by 0.7% within five years. Terrorism in the less developed countries may also limit the amount of grants and donations received from the developed countries. This aspect arises from the fact that donors may develop a perception that their donations will be diverted to finance military projects rather than projects aimed at alleviating poverty (Gaibulloev Sandler, 2009).Advertising Looking for research paper on political sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More In an effort to raise the funds necessary to counter terrorism, the less developed countries may adopt measures that might increase the rate of inflation. For example, governments might produce their domestic currency. According to Bruck (2007), public spending during the conflict period increases significantly. This trend continues during the years preceding acts of terror. As a result, a country’s macroeconomic stability is affected by the high rate of inflation and increase in the budget deficit (Bruck, 2007). Financial market According to Bruck (2007), financial markets play a critical role in a country’s economic growth as it stimulates the flow of investment capital and savings. As a result, production of products and services and continuous restructuring of a country’s economy are enhanced despite the fact that their financial markets are facing a major threat due to terrorism. According to Johnston and Nedelescu (2005), terrorism affects the operations o f financial markets in a number of ways. One of these ways entails disruption of the financial market infrastructure such as the communication systems. For example, J.P Morgan Chase and the Bank of New York are some of the major clearing financial institutions in the US. The two institutions were forced to relocate their operations to their backup sites after the 2001 terror attack. Their relocation was occasioned by the fact that their headquarters were located near to the World Trade Center, which was hit by terrorists. Disruption of operations in the two financial institutions forced the firms to resort to manual processing of securities and other financial transactions. This move led to significant delays in the process of clearing various financial transactions. Consequently, the degree of uncertainty in the financial institutions’ ability to address the customers’ liquidity needs was increased. Mueller and Stewart (2011) assert that terrorism affects the stabilit y of financial markets, and this aspect has adverse effects on stock prices. The 9/11 terrorist attack led to heavy disturbance in the global stock exchange market. For example, stock prices in the European stock market declined with a 9% margin. The decline in stock prices arose for the insurance, tourism, and the airline industries were affected adversely. The European stock market was also adversely affected by the Madrid bombings. The insurance industry is greatly affected by terrorism compared to the stock exchange market and the banking industry. For example, it is estimated that the US insurance industry incurred a loss of $ 30 and $ 50 billion following the 9/11 terrorist attack. Such huge financial losses may result in some companies going into bankruptcy, as the parties affected by terrorism may claim compensation, which the insurer might not be in a position to cover. Impact on supply chains Developing an effective supply chain is imperative in a country’s economic growth and the government should focus on three main facets of supply, which include information, material, and funds (Organization for Economic Development and Cooperation, 2002). After the 11 September 2001 terrorist attack in the US, the US government halted the country’s air transport system for four days. The decision to halt the air transport hinged on the need to tighten the country’s security measures. Immediately after the terror attack, the US government closed the border between Canada and the US. It is estimated that approximately 500,000 vehicles cross the border daily. Moreover, the volume of trade conducted through the border between Canada and the US is estimated to be $ 1.4 billion daily. Traders incurred opportunity cost due to the long waits. The automobile companies were the worst affected, which arises from the fact that the just-in-time supply chain was broken down. Moreover, companies that deal with perishable goods experienced huge losses due t o the long wait during security checks. The terrorist attack did not only affect the US firms, but also firms in other countries that conduct bilateral trade with the US. For example, a number of companies in Canada were shut down following the 2001 terrorist attack (Organization for Economic Development and Cooperation, 2002). Terrorism disrupts the cost of supply chains by increasing transportation cost. Most air and water transportation companies have increased the cost of transportation. For example, the US government requires all international shipments to be subjected to inspection by the Coast Guards. Additionally, the ships are required to be escorted by tugboats and on the other hand, airfreight companies have incorporated high commercial insurance premiums. Additionally, the cost of airfreights in some terrorist prone regions is also increased by war surcharges. Sandler and Enders (2008) assert that exports are affected adversely by terrorism due to increment in the cost o f transaction. Sandler and Enders (2008) further opine, â€Å"A first terrorist incident reduces bilateral trade by 8%† (p.5). If a country becomes vulnerable to terrorism, the volume of bilateral trade is adversely affected. Conclusion The paper ranks terrorism as one of the major challenge faced by all governments around the world. Currently, terrorism has undergone significant changes and the perpetrator’ targets have also changed. Terrorists are not only targeting major installations, but also civilians. Therefore, it is essential for governments and other stakeholders to address this social ill conclusively. In addition to addressing the social impacts associated with terrorism, it is imperative for governments to take into account the economic aspects highlighted in this paper. The analysis shows that terrorism has adverse effects on a country’s economic growth and development. First, terrorism leads to substantial loss in governments’ effort to cle ar and reconstruct critical infrastructures that are damaged by terrorist acts. Additionally, terrorism diminishes the attractiveness of a country to investors, which arises from the fact that investors lose confidence on the security of their investment. Lack of confidence may force investors to shift their investments to other countries that are less prone to terrorism and have a high degree of certainty. Terrorism also results in an increment in the volume of government spending. Governments spend a lot of money in developing and implementing mechanisms aimed at countering terrorism. As a result, funds are shifted to activities that have a low economic value. Financial markets, which are a critical component in a country’s economic growth, are also affected by terrorism through disruption of communication systems. Terrorism may also force some financial institutions such as insurance companies into bankruptcy. The supply chains are also affected adversely by terrorism. Suc h effects may limit a country’s ability to achieve its macroeconomic goals. Recommendations In order to address the negative economic effects associated with terrorism, it is imperative for governments to integrate effective counter terrorism mechanisms. Some of the issues that governments should focus on are outlined below. Governments should integrate tighten their security mechanisms. For example, governments should conduct a comprehensive background checks on the parties involved in the supply chain. Such measures are important despite the fact that they may increase the cost of doing business. This aspect arises from the fact companies will be forced to shift from just-in-time inventory management model to just-in-case buffers to minimize disruptions in the operation of companies due to lack of raw materials. It is imperative for governments to collaborate with one another in their quest to counter terrorism, as terrorism does not only affect the target country but also the country’s trade partners. Reference List Bruck, T. (2007). The economic analysis of tourism. New York, NY: Routledge. Carkovic, M., Levine, R. (2004). Does foreign direct investment accelerate  economic growth. Retrieved from https://piie.com/publications/chapters_preview/3810/08iie3810.pdf Gaibulloev, K., Sandler, T. (2009). The impact of terrorism and conflicts on growth in Asia. Economics and Politics, 21(3), 359-370. Herendeen, J. (2008). Issues in economics: an introduction. Lanhan, MD: University Press of America. Johnston, R., Nedelescu, O. (2005). The impact of terrorism on financial markets. New York, NY: International Monetary Fund. Mueller, J., Stewart, G. (2011). Terror, security and money: Balancing the risks,  benefits and cost of homeland security. Oxford, UK: Oxford University Press. Organization for Economic Development and Cooperation. (2002). Economic  consequences of terrorism. Retrieved from https://www.oecd.org/eco/outlook/1935314.pdf Sa ndler, T., Enders, W. (2008). Economic consequences of terrorism developed  and developing countries: an overview. Retrieved from utdallas.edu/~tms063000/website/Econ_Consequences_ms.pdf

Hamlet Themes and Literary Devices

Hamlet Themes and Literary Devices William Shakespeares Hamlet is considered of the most thematically-rich works of literature in the English language. The tragic play, which follows Prince Hamlet as he decides whether to revenge his fathers death by murdering his uncle, includes themes of appearance vs. reality, revenge, action vs. inaction, and the nature of death and the afterlife. Appearance vs. Reality Appearance versus reality is a recurrent theme within Shakespeare’s plays, which often question the boundary between actors and people. At the beginning of Hamlet, Hamlet finds himself questioning how much he can trust the ghostly apparition. Is it really the ghost of his father, or is it an evil spirit meant to lead him into murderous sin? The uncertainty remains central to the narrative throughout the play, as the ghosts statements determine much of the narrative’s action. Hamlet’s madness blurs the line between appearance and reality. In Act I, Hamlet clearly states that he plans to feign madness. However, over the course of the play, it becomes less and less clear that he is only pretending to be mad. Perhaps the best example of this confusion takes place in Act III, when Hamlet spurns Ophelia leaving her utterly confused about the state of his affection for her. In this scene, Shakespeare brilliantly reflects the confusion in his choice of language. As Hamlet tells Ophelia to â€Å"get thee to a nunnery,† an Elizabethan audience would hear a pun on â€Å"nunnery† as a place of piety and chastity as well as the contemporary slang term â€Å"nunnery† for brothel. This collapse of opposites reflects not only the confused state of Hamlet’s mind, but also Ophelia’s (and our own) inability to interpret him correctly. This moment echoes the broader theme of the impossibility of interpreting reality, which in turn l eads to Hamlets struggle with revenge and inaction. Literary Device: Play-Within-a-Play The theme of appearance versus reality is reflected in the Shakespearean trope of the play-within-a-play. (Consider the often-quoted â€Å"all the world’s a stage† remarks in Shakespeare’s As You Like It.) As the audience watches the actors of the play Hamlet watching a play (here, The Murder of Gonzago), it is suggested that they zoom out and consider the ways in which they themselves might be upon a stage. For example, within the play, Claudius’s lies and diplomacy are clearly simple pretense, as is Hamlet’s feigning madness. But is not Ophelia’s innocent acquiescence to her father’s demand that she stop seeing Hamlet another pretense, as she clearly does not want to spurn her lover? Shakespeare is thus preoccupied with the ways we are actors in our everyday life, even when we don’t mean to be. Revenge and Action vs. Inaction Revenge is the catalyst for action in Hamlet. After all, it is the ghost’s injunction to Hamlet to seek revenge for his death that forces Hamlet into action (or inaction, as the case may be). However, Hamlet is no simple drama of vengeance. Instead, Hamlet continually puts off the revenge he is supposed to seize. He even considers his own suicide instead of killing Claudius; however, the question of the afterlife, and whether he would be punished for taking his own life, stays his hand. Similarly, when Claudius decides he must have Hamlet killed off, Claudius sends the prince to England with a note to have him executed, rather than doing the deed himself. In direct contrast to the inaction of Hamlet and Claudius is the forceful action of Laertes. As soon as he hears of his father’s murder, Laertes returns to Denmark, ready to wreak revenge on those responsible. It is only through careful and clever diplomacy that Claudius manages to convince the enraged Laertes that Hamlet is at fault for the murder. Of course, at the end of the play, everyone is revenged: Hamlet’s father, as Claudius dies; Polonius and Ophelia, as Laertes kills Hamlet; Hamlet himself, as he kills Laertes; even Gertrude, for her adultery, is killed drinking from the poisoned goblet. In addition, Prince Fortinbras of Norway, who was searching for revenge for his father’s death at Denmark’s hands, enters to find most of the offending royal family killed. But perhaps this fatally interlocking network has a more sobering message: namely, the destructive consequences of a society that values vengeance. Death, Guilt, and the Afterlife From the very beginning of the play, the question of death looms. The ghost of Hamlet’s father makes the audience wonder about the religious forces at work within the play. Does the ghost’s appearance mean Hamlet’s father is in heaven, or hell? Hamlet struggles with the question of the afterlife. He wonders whether, if he kills Claudius, he will end up in hell himself. Particularly given his lack of trust in the ghost’s words, Hamlet wonders if Claudius is even as guilty as the ghost says. Hamlets desire to prove Claudiuss guilt beyond all doubt results in much of the action in the play, including the play-within-a-play he commissions. Even when Hamlet comes close to killing Claudius, raising his sword to murder the oblivious Claudius in church, he pauses with the question of the afterlife in mind: if he kills Claudius while he is praying, does that mean Claudius will go to heaven? (Notably, in this scene, the audience has just witnessed the difficulty Claudius faces in being able to pray, his own heart burdened by guilt.) Suicide is another aspect of this theme. Hamlet takes place in era when the prevailing Christian belief asserted that suicide would damn its victim to hell. Yet Ophelia, who is considered to have died by suicide, is buried in hallowed ground. Indeed, her final appearance onstage, singing simple songs and distributing flowers, seems to indicate her innocence- a stark contrast with the allegedly sinful nature of her death. Hamlet grapples with the question of suicide in his famous to be, or not to be soliloquy. In thus considering suicide, Hamlet finds that â€Å"the dread of something after death† gives him pause. This theme is echoed by the skulls Hamlet encounters in one of the final scenes; he is amazed by the anonymity of each skull, unable to recognize even that of his favorite jester Yorick. Thus, Shakespeare presents Hamlet’s struggle to understand the mystery of death, which divides us from even seemingly the most fundamental aspects of our identity.