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Threat Perceptions in Europe: Domestic Terrorism and International Crime

  • Syed Mansoob Murshed
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    This paper focuses on two areas of security concern for the European Union: terrorism and international crime. I present a model of game-theoretic interaction between a European state and a domestic dissident group, who, on occasion, may resort to acts of terrorism. Here, identity is crucial to the putative terrorist, providing the microfoundations of dissident group behaviour by solving the collective action problem. I also sketch a macromodel of drugs production in a conflict-ridden developing country, where I argue that demand-side policies of regulation may be better than policies that are aimed at eradicating supply. As far as the policy implications are concerned, first excessive deterrence against potential terrorists may backfire. Secondly, space needs to be created so that Muslim migrants are able to merge their personal identities within their adopted European homelands. Thirdly, the economic discrimination against Muslims in Europe needs to be redressed. Finally, aid to fragile drug producing states should be broad-based and poverty reducing, not just benefiting warlords.

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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.94888.de/diw_econsec0002.pdf
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    Paper provided by DIW Berlin, German Institute for Economic Research in its series Economics of Security Working Paper Series with number 2.

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    Length: 15 p.
    Date of creation: 2009
    Date of revision:
    Handle: RePEc:diw:diweos:diweos2
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    1. Tony Addison & Mansoob Murshed, 2005. "Transnational terrorism as a spillover of domestic disputes in other countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(2), pages 69-82.
    2. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
    3. Edward L. Glaeser, 2005. "The Political Economy of Hatred," The Quarterly Journal of Economics, MIT Press, vol. 120(1), pages 45-86, January.
    4. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    5. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
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