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The rise of capitalism and the roots of anti-American terrorism

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  • Tim Krieger
  • Daniel Meierrieks

Abstract

This contribution examines the role of capitalism in anti-American terrorism. It uses two theoretical frameworks, both of which contrast the pacifying effects of higher levels of capitalist development with the potentially destabilizing effects of a transition towards capitalism, but differ with respect to their definition of capitalism, capitalism’s interaction with anti-American terrorism, and its empirical operationalization. Using panel data for 149 countries between 1970 and 2007 and providing further system-level time-series evidence, this contribution finds no support for hypotheses derived from the classical capitalist peace literature. There is no evidence that anti-American terrorism increases with external economic liberalization or that it decreases with higher levels of economic openness. By contrast, hypotheses derived from economic norms theory find empirical support. Conceptualizing capitalism as social market-capitalism, this article finds that higher levels of market-capitalism are associated with less anti-American terrorism, while the process of marketization fuels it. Consistent with expectations from economic norms theory, the destabilizing effects of the marketization process may stem from the violent opposition of antimarket interest groups that have benefited from the pre-market order to the economic-cultural change initiated by a transition towards a market economy. These interest groups deliberately target the USA as the main proponent of market-capitalism, globalization, and modernity, where anti-American terrorism serves the purpose of consolidating their societal position, rolling back pro-market reforms and limiting the perceived Americanization of their communities. This contribution’s findings suggest that the USA may ultimately become a less likely target of transnational terrorism through the establishment of market economies, but should not disregard the disruptive economic-cultural effects of the marketization process in non-market economies.

Suggested Citation

  • Tim Krieger & Daniel Meierrieks, 2015. "The rise of capitalism and the roots of anti-American terrorism," Journal of Peace Research, Peace Research Institute Oslo, vol. 52(1), pages 46-61, January.
    • Handle: RePEc:sae:joupea:v:52:y:2015:i:1:p:46-61
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    Cited by:

    1. Dimant, Eugen & Krieger, Tim & Meierrieks, Daniel, 2023. "Paying them to hate US: The effect of U.S. military aid on anti-American terrorism, 1968-2018," Discussion Paper Series 2023-02, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    2. Eugen Dimant & Tim Krieger & Daniel Meierrieks, 2020. "Paying Them to Hate US: The Effect of U.S. Military Aid on Anti-American Terrorism, 1968-2014," CESifo Working Paper Series 8411, CESifo.
    3. Eugen Dimant & Tim Krieger & Daniel Meierrieks, 2022. "The Risks of Nation-Building through Military Aid and Intervention," CESifo Working Paper Series 9957, CESifo.
    4. Daniel Meierrieks & Thomas Gries, 2020. "‘Pay for It Heavily’: Does U.S. Support for Israel Lead to Anti-American Terrorism?," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(2), pages 160-176, February.
    5. Meierrieks, Daniel & Krieger, Tim, 2015. "Modernization and Islamist Conflict," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113142, Verein für Socialpolitik / German Economic Association.
    6. James Lee Ray & Allan Dafoe, 2018. "Democratic peace versus contractualism," Conflict Management and Peace Science, Peace Science Society (International), vol. 35(2), pages 193-203, March.
    7. Dimant, Eugen & Krieger, Tim & Meierrieks, Daniel, 2017. "Negative returns: U.S. military policy and anti-american terrorism," Discussion Paper Series 2017-05, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    8. Mousseau Michael, 2019. "Four Ways We Know the Democratic Peace Correlation Does Not Exist in the State of Knowledge," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 25(4), pages 1-8, December.
    9. Michael Mousseau, 2018. "Grasping the scientific evidence: The contractualist peace supersedes the democratic peace," Conflict Management and Peace Science, Peace Science Society (International), vol. 35(2), pages 175-192, March.
    10. Mousseau, Michael & Mousseau, Demet Yalcin, 2023. "The rise of contract-intensive economic structures and democratic development: Are they related?," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 273-285.

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    More about this item

    Keywords

    anti-Americanism; capitalism; globalization; market economy; terrorism;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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