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Chapter 5 Global Terrorism
NONSTATE ADVERSARIES, FUNDAMENTALIST
RELIGIOUS EXTREMISM, AND WEAPONS ARE THREE
FORCES OF GLOBAL TERRORISM, ALL REPRESENTED BY
TALIBAN FIGHTERS IN AFGHANISTAN.
Learning Objectives
1. 5.1Recognize that terrorism is a contentious issue that
becomes hopelessly muddled by political and military
considerations
2. 5.2Review the factors that are conducive to terrorism
3. 5.3Identify the goals, strategies, and weapons of terrorism
4. 5.4Identify the sources of funds that are used for financing
terrorism
5. 5.5Review how terrorism adversely affects individuals,
nations, and other groups
6. 5.6Summarize five kinds of terrorism
7. 5.7Examine the different ways of combating terrorism
8. 5.8Analyze the fundamental question about the balance
between fighting terrorism and protecting democracy within the
United States
The Boston Marathon bombing in April 2013 and the grisly
murder of an off-duty British soldier in public in London in
May 2013 that was filmed on mobile phones as the terrorist
waited for police demonstrate a further shift away from
centralized terrorist organizations to lone wolf terrorism. This
kind of terrorism is conducted by self-motivated independent
individuals. The attacks in Boston and London show how
difficult it is to prevent lone wolf terrorism.
Successful U.S. counterterrorism measures against al-Qaeda in
the Arabian Peninsula and in Pakistan, combined with failed
democratic transitions in the Middle East and North Africa,
have contributed to the shift of global terrorism to Africa.
Domestic terrorist groups such as Boko Haram, which means
“Western education is sacrilege,” in northern Nigeria,
collaborate with al-Qaeda. The Syrian civil war, chaos in Iraq
following the U.S. withdrawal, and the disintegration of law and
order in Libya have strengthened terrorism, most notably the
group called the Islamic State of Iraq and Syria (ISIS), which
claimed credit for the November 13, 2015 terrorist massacre in
Paris.
The growing use of armed drones for targeted killings of
suspected terrorists in Yemen, Pakistan, Somalia, Niger, and
elsewhere raises many controversial issues. Drones are effective
weapons against terrorists. Even though they kill fewer civilians
than alternative methods, the loss of innocent civilian lives
undermines their use.
Edward Snowden’s leaking of documents showing extensive
spying on Americans as well as people and governments around
the world by the National Security Agency (NSA) as part of
America’s counterterrorism strategy raised global concerns
about the basic right to privacy. It also has far-reaching
consequences for U.S. security and foreign policy.
Osama bin Laden, widely viewed as the embodiment of global
terrorism, was killed by U.S. Special Forces on May 1, 2011, in
Pakistan. Despite this significant development, the war on
terrorism continues. Think about how the escalation of global
terrorism affects our daily lives. This global problem is now
virtually inseparable from personal concerns. Even traveling by
plane from one city to another within the United States and
Canada, which was once largely uneventful, has become much
more complicated and stressful due to increased airport
security. National and global institutions have also been
profoundly affected by this problem. The U.S. Department of
Homeland Security was created in 2003 as a direct response to
the terrorist attacks in September 2001. It brought together
twenty-two government agencies with 180,000 workers, making
it the largest government reorganization in forty years.
Domestic security has been strengthened, especially around
bridges, water supplies, government offices, nuclear power
plants, scientific laboratories, food supplies, and industrial
factories.
This chapter emphasizes the growing importance
of asymmetrical power in global affairs. When relatively weak
groups use low-tech tools to inflict significant damage on very
powerful countries that have the most advanced military
technologies, they are using asymmetrical power.
While states are generally impeded by national boundaries, their
nonstate adversaries routinely disregard national borders. This
chapter discusses difficulties involved in defining terrorism;
factors conducive to the rise of terrorism; and goals, strategies,
and weapons of terrorist groups. After examining specific cases
of terrorism, we will discuss various responses to terrorism and
the dilemmas democracies face in attempting to eliminate or
reduce this threat. This chapter concludes with a case study of
terrorism in Pakistan.5.1: Defining Terrorism
1. 5.1 Recognize that terrorism is a contentious issue that
becomes hopelessly muddled by political and military
considerations
Proudly proclaiming their commitment to liberty, equality, and
fraternity, the architects of the French Revolution instituted
a Reign of Terror (1793–1794) to preserve the radical changes.
Headed by Maximilien Robespierre, the Committee of Public
Safety embraced terrorism in its effort to rule France during a
period that was regarded as a national emergency. The French
zeal for the Terror, the period of widespread violence, public
executions, and intimidation of civilians, was strongly rejected
by Edmund Burke, the British conservative philosopher who
regarded French terrorists as hellhounds. Although there is no
universally accepted definition of terrorism, the standard view
that one person’s terrorist is another person’s freedom fighter
fails to distinguish among the various kinds and levels of
terrorism and fails to acknowledge that freedom fighters’
actions are not necessarily justified. What is clear is that
terrorism is a contentious issue that becomes hopelessly
muddled by political and military considerations.1
All acts of terrorism are designed to create fear, to cause people
to tremble. By using the most advanced technologies of global
communication, terrorists seek to frighten people in distant
places in order to exert pressure on governments. Terrorism is
essentially a form of psychological warfare. Unlike most
conventional wars, terrorism lasts for generations, as we will
see in our discussions of the Irish Republican Army (IRA), the
Basques in Spain, and the Palestinians. Terrorism is
also indiscriminate. Most terrorist activities aim to create
uncertainty and general fear by communicating that anyone can
be a target. In many ways, terrorism is closely associated with
ideology. This is clearly the case with al-Qaeda: It is less an
organization than an ideology that inspires groups and people
worldwide to engage in terrorist acts.
Distinguishing terrorism from guerrilla warfare and insurgency
is often challenging. Guerrilla warfare, which means “little
war,” is the use of selective violence against military targets.
But when societies experience extensive violence, distinctions
between guerrilla warfare and terrorism tend to blur. Following
the attacks in the United States, many governments applied the
label of terrorism to very old conflicts of their own that were
previously regarded as insurgencies. For example, China
annexed what is now Xinjiang in 1759. The inhabitants, known
as Uighurs, practice Sufi Islam and speak a Turkic language.
They resisted China’s rule and launched their first uprising in
1865. The disintegration of the Soviet Union and the
independence gained by some Muslim communities in Central
Asia inspired the Uighurs to renew their struggle to establish a
separate state. China was quick to label the Uighurs as
terrorists. The military-led government that overthrew the
Egyptian government controlled by the Muslim Brotherhood
called the Muslim Brotherhood a terrorist organization despite
the fact it was elected by millions of Egyptians and had long
rejected using violence. This raises the question: Who gets to
define terrorism, and why? Complicating definitions of
terrorism is the general acceptance of war as a legitimate
instrument of governments. Paul Wilkinson argues that
“terrorist campaigns inherently involve deliberate attacks on
civilian targets and are therefore analogous to war
crimes.”2 But who decides which military actions are war
crimes?5.2: Factors Conducive to Terrorism
1. 5.2 Review the factors that are conducive to terrorism
Examining the factors that make terrorism a useful tool to
accomplish certain objectives is essential to any pragmatic
effort to eliminate or diminish terrorist threats. Terrorism has
many interrelated causes.
Poverty is widely perceived as the root of terrorism. Poverty is
closely linked to economic and political isolation, feelings of
hopelessness, violations of human rights, and the lack of
democracy, which all provide a fertile breeding ground for
terrorism. In Pakistan, students enroll in religious seminaries,
called madrassas. Supported by Muslim charities worldwide—
especially those in Saudi Arabia—they feed, shelter, clothe, and
educate students from poverty-stricken families. In addition to
receiving training in the Koran, these students are indoctrinated
to hate the West, especially the United States. Many terrorists
graduate from madrassas.3 However, terrorists who attacked the
United States, Spain, and Britain were not poor. Many of them
came from the middle class.
Globalization is a major factor in global terrorism. In many
ways, terrorism is a product of resistance to change brought
about by cultural, economic, political, military, and even
environmental globalization. Individuals in distant places
communicate instantaneously and are able to coordinate their
activities on a global scale. Global transportation enables them
to move easily from one country to another. Global cities
provide an environment in which it is easy for people to be
anonymous.
Legitimate grievances and the failure of governments to
adequately address these problems often foment terrorism. In
fact, most terrorist organizations trace their origins to political,
religious, social, economic, and ethnic problems that were
ignored, downplayed, or dismissed by those in power and by
society in general. Why did the African National Congress
(ANC) in South Africa, the Palestine Liberation Organization
(PLO), and the IRA become terrorist organizations? Specific
grievances motivated individuals to form these groups and to
use terrorism to achieve their objectives. Violence by
governments also causes terrorism. Governments routinely
abuse their monopoly on legitimate violence regarding specific
minority groups or majority groups that lack significant
political, economic, and social power. The efficacy of official
violence influences individuals and groups that want to change
their circumstances to resort to violence.
Humiliation is another factor conducive to the use of terrorism.
Terrorism, which was not a problem in Iraq before the U.S.
invasion, became widespread there. Many Iraqis felt humiliated
by intrusive American searches, by being occupied, and by
being mistreated. Thomas L. Friedman, an influential journalist
with the New York Times, stated: “If I’ve learned one thing
covering world affairs, it is this: The single most under-
appreciated force in international relations is humiliation.”4
The lack of democracy, and widespread and systematic
violations of human rights, contributes to the rise of terrorism.
The September 11 terrorist attacks in the United States drew
attention to Saudi Arabia and Egypt, countries to which most of
the terrorists belonged. Dissidents such as Osama bin Laden
(from Saudi Arabia) and Mohammed Atta (the Egyptian-born
leader of the terrorist attacks) were unable to express dissent at
home, so they went to Afghanistan to organize al-Qaeda, a
global terrorist network.
Foreign policies contribute to terrorism. Roman occupation of
Israel generated strong resistance by the Jews, and some Jews
adopted terrorism in a futile effort to end Roman oppression.
European expansion and colonization laid the foundation for the
emergence of national liberation movements that used terrorism
to achieve independence. Many foreign policy and terrorism
analysts view U.S. foreign policies in the Middle East—
especially those involving the Palestinian-Israeli conflict, Saudi
Arabia, and Egypt—as being conducive to terrorism. For
example, Osama bin Laden strongly opposed the stationing of
American troops in Saudi Arabia during the 1991 Gulf War. The
U.S. policies are widely seen in the Middle East and elsewhere
as contributing to the oppression of the Palestinians by Israel.
Finally, failed states provide an environment conducive to
terrorism. Failed states generally abuse human rights; are
undemocratic; are intolerant of ethnic, political, and religious
diversity; and have weak economies. State failure is often
accompanied by an increase in bureaucratic corruption and
cooperation among government officials and criminals. In
essence, state authority and civil society are severely
undermined, and many regions within a country are lawless. The
most obvious example of how state failure breeds terrorism is
al-Qaeda in Afghanistan. Under the leadership of
the Taliban (i.e., a group of extreme Islamic fundamentalists),
Afghanistan provided bin Laden with an ideal environment in
which terrorism could grow and from which terrorist activities
could be organized.5.3: Goals, Strategies, and Weapons of
Terrorism
1. 5.3 Identify the goals, strategies, and weapons of terrorism
The goals of terrorism include the following:
1. Social and political justice, Terrorism has been used to
achieve concrete political and social changes, including
overthrowing repressive regimes.
2. Self-determination, Many terrorist organizations emerged as
part of the struggle to gain national independence.
3. Racial superiority, Many white supremacist groups attempt to
preserve racial segregation and social, economic, and political
power based on skin color.
4. Foreign policies, Terrorism is often used to influence
governments to take or refrain from taking certain actions.
5. Publicity, A central goal of most terrorist groups is to draw
public attention to their cause.
6. Demoralized governments, By making governments appear
weak and incompetent, terrorists believe they can undermine
their legitimacy and policies.
Terrorist organizations adopt several strategies to achieve their
objectives. Creating a climate of fear and insecurity, partly to
undermine people’s confidence in their government, is an
integral component of terrorists’ strategies. But terrorism also
depends on cultivating popular support. Terrorists are generally
effective when they operate in an environment that enables them
to hide, obtain resources (including weapons), gather
information about government operations and plans, and
communicate with each other. However, telecommunications
and computer technologies have reduced the need for popular
support as a component of strategy. Terrorists rely on virtual
networks, a style of organization that is essentially leaderless
and is facilitated by the Internet. American right-wing
extremists developed this strategy to counteract the
effectiveness of U.S. law enforcement agencies.5
Some terrorist groups reject the terrorist label to gain greater
legitimacy or acceptance in society. Governments, on the other
hand, refuse to confer any kind of legitimacy on terrorist groups
and reject defining terrorism as warfare. These terrorist groups
are likely to select government targets, including embassies,
military personnel and bases, and government officials. In
Colombia, for example, terrorist groups launched a campaign of
assassinations to get the attention of the government and its
supporters. Judges, prosecutors, and elected officials were the
main targets. This strategy attempts to undermine assumptions
that government policies can ensure personal safety.6Selective
kidnappings are also used by terrorists to achieve their goals.
By taking government officials, soldiers, businesspeople, and
prominent citizens hostage, the terrorists force the government
to either take military action against them or bargain with them.
Weapons used by terrorists vary according to their goals,
available technology, and resources at their disposal. Sarin gas,
anthrax, and various poisons have been used in Japan and the
United States. Motor vehicles packed with ammonium nitrate
and fuel oil were used as bombs in Oklahoma City in 1995 and
in Bali, Indonesia, in 2002. Suicide bombers are lethal weapons
in many parts of the world, including Israel, Saudi Arabia,
Pakistan, Afghanistan, and Iraq. The use of airliners fully
loaded with fuel as missiles to destroy the World Trade Center
and damage the Pentagon focused global attention on a new
terrorist weapon. Terrorists also put bombs in the mail and on
cargo planes. As terrorists use the Internet to spread their
message and organize their activities, there is growing
awareness of cyberspace warfare as a weapon in the terrorists’
arsenal. Although few terrorists are capable of using weapons of
mass destruction on a large scale, chemical and biological
weapons in the possession of terrorists are a global concern.
Syria’s civil war exposed that country’s vast stockpiles of
chemical weapons to terrorists, which prompted the global
community to pressure Syria to give them up to be
destroyed.5.4: Financing Terrorism
1. 5.4 Identify the sources of funds that are used for financing
terrorism
Many terrorist cells are self-supporting, and many terrorists do
not engage in financial activities that immediately draw
attention. This makes it extremely difficult for governments to
gather financial information. Furthermore, many terrorists
use hawalas (i.e., an informal system of transferring money that
is based primarily on trust and interpersonal relations).
Developed in India before the arrival of Western banking,
hawalas frustrate efforts to trace money because they leave no
electronic and virtually no paper trail.7
Contributions from individuals and groups are a major source of
money for terrorism. In the case of al-Qaeda, bin Laden used his
considerable wealth to finance global terrorism. Many
individuals make charitable contributions to organizations that
are principally concerned with assisting the poor. However,
some of this money is also used to support
terrorism. Governments finance terrorism, both directly and
inadvertently. The most obvious way is by sponsoring their
activities. For many years, Libya’s leader, Muammar Qaddafi,
openly financed and trained terrorist groups in the Middle East
and Africa.
Diamonds, oil, and other natural resources provide revenues for
terrorism. Terrorists often prefer diamonds because they are
easily transported, easily hidden, and easily converted into cash.
Failed states in Africa often provide opportunities for rebel
groups to cooperate with terrorist groups. One of the best
examples is Sierra Leone in West Africa. Sierra Leone has some
of the richest diamond fields in the world. It has also been
plagued by political instability. The diamond trade helped fund
both Sierra Leone’s civil wars and al-Qaeda. Senior members of
Sierra Leone’s Revolutionary United Front (RUF), a rebel group
that challenged the government and engaged in horrific acts of
violence and terrorism, took diamonds, often wrapped in rags,
across the border into Liberia and exchanged them for cash from
al-Qaeda and Hezbollah, a Shiite terrorist group in Lebanon.
With the cooperation of corrupt customs and immigration
officials, the diamonds, which were bought at below-market
prices, were then taken to Europe by terrorist organizations and
sold at much higher prices.8 These diamonds are widely known
as conflict diamonds because of their inextricable links with
brutal civil wars and terrorism.
Criminal activities are a major source of funding for terrorism.
Terrorists are often involved in armed robbery, credit card
fraud, identity theft, kidnapping, extortion, and other crimes. In
the Philippines, for example, the terrorist group Abu
Sayyaf routinely kidnaps people, including tourists, to finance
its activities. Kidnappings have proliferated in Africa, the new
front of global terrorism. The Tamil Tigers in Sri Lanka
controlled and operated boats that smuggled contraband in the
Indian Ocean region. Often, terrorist groups coerce civilians
into paying protection money, sometimes called a revolutionary
tax. The IRA is a group that used this method to finance
terrorism. Other groups, such as the Taliban in Afghanistan, use
money obtained from the sale of illegal drugs. Terrorists in
Africa are also involved in poaching endangered species such as
elephants and rhinos to finance their operations.
5.5: The Costs of Terrorism
1. 5.5 Review how terrorism adversely affects individuals,
nations, and other groups
Costs associated with terrorism are so widespread, complex, and
intangible that they are virtually impossible to measure.
Individuals, families, governments, companies, and nonstate
actors worldwide bear the costs of terrorism to varying degrees.
Time, money, and other resources are diverted from other
problems. Migration, trade, travel, and interpersonal relations
are affected. In September 2001, a very small group of
individuals, nineteen of them, caused incalculable damage to
the United States as well as the global community. Almost three
thousand people from roughly fifty countries were killed. It is
generally believed that the financial crisis and the global
recession were caused in part by policies adopted by the Bush
administration to fight global terrorism, including wars in
Afghanistan and Iraq. Domestic terrorists, using anthrax, also
damaged U.S. government offices, businesses, and individuals.
5.5.1: Costs to Individuals
Individuals usually suffer the most from terrorist acts in terms
of loss of lives and social, psychological, and physical
problems. Many citizens are made ill by fear and a sudden loss
of personal freedom. They restrict their activities, limit their
travel, and often distrust their neighbors, thereby weakening
community bonds and support. For example, the 2001 attacks
undermined trust between most non-Muslim Americans and
Muslims in general, especially Arabs. Relations between non-
Muslim Americans and Muslims remain problematic. President
Barack Obama made a concerted effort to improve relations
with the Muslim world.
5.5.2: Economic Costs
Calculating the economic costs of terrorism and the responses to
it is virtually impossible because they are so complex and far-
reaching. For example, after the 2001 attacks, airlines suffered
major financial losses and continue to feel the impact of
terrorism. It is estimated that the global airline industry lost $18
billion in 2001 and $13 billion in 2002 following the attacks.
Combined, these losses were more than the total profit of all the
airlines since 1945.9 High oil prices and continuing fears about
terrorism continued to create severe financial problems,
including bankruptcy for some airlines.
5.5.3: Costs to Governments
Governments generally increase resources to fight terrorism and
to provide their citizens with a heightened sense of
WHAT DOES THIS PHOTO CONVEY ABOUT THE COSTS
OF FIGHTING TERRORISM? A Transportation Security
Administration (TSA) official instructs a passenger at a full-
body scan at Washington Dulles International Airport.
security. For example, as you prepare to board an airline, the
costs become obvious. There are more security guards, bags are
carefully checked, and individuals are often searched. While
airlines pay some of these costs, the U.S. federal government is
primarily responsible for airport security. The federal, state,
and local governments in the United States also spend money to
guard bridges, nuclear power plants, train stations, and so on.
The most obvious costs are associated with military actions
against terrorists. The invasion of Afghanistan to destroy al-
Qaeda and the Taliban, as well as the invasion, occupation, and
rebuilding of Iraq, has cost many lives and more than a trillion
dollars.10
5.5.4: Foreign Policy Costs
Several times following the 2001 attacks, the United States
closed its embassies in Saudi Arabia and elsewhere. These
shutdowns meant that America was paying a price for not being
able to conduct normal diplomatic relations. Furthermore,
heightened security for embassies creates additional expenses.
5.5.5: Costs to Democracy
People who are afraid, as Thomas Hobbes observed, are willing
to turn to all-powerful rulers who promise to provide security.
But part of the price for that security is less freedom. In a
climate of fear, governments often justify violating individuals’
rights on the grounds of national security. Torturing terrorist
suspects and denying them the fundamental right to habeas
corpus continues to be debated in the United States.
5.6: Kinds of Terrorism
1. 5.6 Summarize five kinds of terrorism
Although the types of terrorism tend to overlap, they vary in
their implications and affect us in different ways. For example,
the indiscriminate nature of global terrorism contrasts sharply
with domestic terrorism aimed at specific groups or
governments. In this section, we will discuss six kinds of
terrorism:
1. Domestic terrorism occurs within the borders of a particular
country and is associated with extremist groups.
2. Nationalist terrorism is closely associated with struggles for
political autonomy and independence.
3. Religious terrorism grows out of extreme fundamentalist
religious groups that believe that God is on their side and that
their violence is divinely inspired and approved.
4. State terrorism is a cold, calculated, efficient, and extremely
destructive form of terrorism, partly because of the
overwhelming power at the disposal of governments.
5. Global terrorism is partly an outgrowth of the forces of
globalization, which enable the different kinds of terrorism to
spread worldwide.
6. Lone wolf terrorism is conducted by independent individuals
who act without the help of a terrorist organization. Often the
line is blurred because of the terrorists’ connections with
terrorist organizations. Sometimes those organizations claim
credit, saying they trained the terrorists and ordered the attacks.
LONE WOLF TERRORISM CAUSED HORROR AND
DAMAGE NEAR THE FINISH LINE OF THE BOSTON
MARATHON IN 2013. Three people were killed and more than
250 were injured or maimed when two brothers set off pressure
cooker bombs concealed in backpacks.
5.6.1: Domestic Terrorism
The emergence of terrorism as a major global issue has focused
increased attention on domestic terrorism in the United States,
Europe, and elsewhere. The murder of thirteen soldiers at Fort
Hood by Major Nidal Malik Hasan, a Palestinian American, in
2009 and numerous connections between homegrown terrorists
and al-Qaeda have underscored America’s vulnerability to
internal threats from nonstate actors. In June 2009 a doctor who
performed abortions in Kansas was killed in a church by a
gunman who opposed abortion. Later in June a white
supremacist and neo-Nazi attacked the U.S. Holocaust Memorial
Museum, killing a security guard. On April 19, 1995, Americans
watched with incredulity as bloodied bodies were pulled from
the federal building in Oklahoma City. Most Americans quickly
blamed Middle Eastern terrorists for the Oklahoma City
bombing, which killed 168 people. But the leader of this
terrorist act was Timothy McVeigh, an American and a
decorated Gulf War veteran. In April 2013, the United States
and the world were horrified by the Boston Marathon bombings
by two Boston-area residents that killed three people and
wounded more than 170. Domestic terrorism has existed in the
United States and other countries for hundreds of years. Unlike
most countries, where terrorist activities have been carried out
primarily against governments, terrorism in America has been
used mostly against racial, ethnic, or religious minorities.
American terrorists are predominantly right-wing extremists
who embrace white supremacist, anti-Jewish, antiforeign, and
antigovernment philosophies based on a religious doctrine
known as Christian identity. This doctrine essentially holds that
white people are chosen by God, whereas Jews, Americans with
African ancestry, Asians, and other racial minorities are “mud
people.” These terrorists generally believe that the U.S.
government is dominated by Jews and is an occupying power
and that the United States should not participate in the United
Nations and other international organizations. Based on these
beliefs, they have formed heavily armed militias, strongly
oppose gun control, and refuse to pay taxes. Domestic terrorist
groups include the National Alliance, the Ku Klux Klan, the
Aryan Nation, Posse Comitatus, and the Confederate
Hammerskins. The United States has made fighting domestic
terrorism a national priority in the wake of ending wars in Iraq
and Afghanistan and the escalation of lone wolf terrorism in
America, which are discussed later in this chapter.
Domestic terrorism has long been a significant problem in
several European countries. Throughout the 1970s and 1980s,
the Red Brigades, an Italian terrorist group, launched a
campaign of bombings and assassinations of government
officials. Germany, France, and Greece …
Q14 Complete the table below to examine the budgeted
profitability of each sales channel per unit.
(3 marks)
B2B
Online
Retail
Sales (£ per unit)
45
64
75
variable cost (£ per unit)
16
15
14
Direct costs (£ per unit)
18
19
20
Contribution (£ per unit)
Cost of sales (£ per unit)
Gross profit (£ per unit)
Q15 Chain&Gear would like to incorporate the profitability
analysis in Q14 above, into monthly reporting, and is
considering the following enhancements to the regular
management report:
(a) Describe how ‘variance analysis’ could be presented in the
profitability report.
(2 marks)
(b) What would be the benefit of variance analysis in the
report?
(2 marks)
Q15 Continued
(c) Describe how forecasting information could be presented in
the profitability report.
(2 marks)
(d) What would be the benefit of forecasting information in the
report?
(2 marks)
May 2020 Page 8
Present Value Table
Annuity Table
Discount Rate
Discount Rate
End of Period
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
No. of Periods
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
1
0.990
0.980
0.971
0.962
0.952
0.943
0.935
0.926
0.917
0.909
1
0.990
0.980
0.971
0.962
0.952
0.943
0.935
0.926
0.917
0.909
2
0.980
0.961
0.943
0.925
0.907
0.890
0.873
0.857
0.842
0.826
2
1.970
1.942
1.913
1.886
1.859
1.833
1.808
1.783
1.759
1.736
3
0.971
0.942
0.915
0.889
0.864
0.840
0.816
0.794
0.772
0.751
3
2.941
2.884
2.829
2.775
2.723
2.673
2.624
2.577
2.531
2.487
4
0.961
0.924
0.888
0.855
0.823
0.792
0.763
0.735
0.708
0.683
4
3.902
3.808
3.717
3.630
3.546
3.465
3.387
3.312
3.240
3.170
5
0.951
0.906
0.863
0.822
0.784
0.747
0.713
0.681
0.650
0.621
5
4.853
4.713
4.580
4.452
4.329
4.212
4.100
3.993
3.890
3.791
6
0.942
0.888
0.837
0.790
0.746
0.705
0.666
0.630
0.596
0.564
6
5.795
5.601
5.417
5.242
5.076
4.917
4.767
4.623
4.486
4.355
7
0.933
0.871
0.813
0.760
0.711
0.665
0.623
0.583
0.547
0.513
7
6.728
6.472
6.230
6.002
5.786
5.582
5.389
5.206
5.033
4.868
8
0.923
0.853
0.789
0.731
0.677
0.627
0.582
0.540
0.502
0.467
8
7.652
7.325
7.020
6.733
6.463
6.210
5.971
5.747
5.535
5.335
9
0.914
0.837
0.766
0.703
0.645
0.592
0.544
0.500
0.460
0.424
9
8.566
8.162
7.786
7.435
7.108
6.802
6.515
6.247
5.995
5.759
10
0.905
0.820
0.744
0.676
0.614
0.558
0.508
0.463
0.422
0.386
10
9.471
8.983
8.530
8.111
7.722
7.360
7.024
6.710
6.418
6.145
Discount Rate
Discount Rate
End of Period
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
1
0.901
0.893
0.885
0.877
0.870
0.862
0.855
0.847
0.840
0.833
1
0.901
0.893
0.885
0.877
0.870
0.862
0.855
0.847
0.840
0.833
2
0.812
0.797
0.783
0.769
0.756
0.743
0.731
0.718
0.706
0.694
2
1.713
1.690
1.668
1.647
1.626
1.605
1.585
1.566
1.547
1.528
3
0.731
0.712
0.693
0.675
0.658
0.641
0.624
0.609
0.593
0.579
3
2.444
2.402
2.361
2.322
2.283
2.246
2.210
2.174
2.140
2.106
4
0.659
0.636
0.613
0.592
0.572
0.552
0.534
0.516
0.499
0.482
4
3.102
3.037
2.974
2.914
2.855
2.798
2.743
2.690
2.639
2.589
5
0.593
0.567
0.543
0.519
0.497
0.476
0.456
0.437
0.419
0.402
5
3.696
3.605
3.517
3.433
3.352
3.274
3.199
3.127
3.058
2.991
6
0.535
0.507
0.480
0.456
0.432
0.410
0.390
0.370
0.352
0.335
6
4.231
4.111
3.998
3.889
3.784
3.685
3.589
3.498
3.410
3.326
7
0.482
0.452
0.425
0.400
0.376
0.354
0.333
0.314
0.296
0.279
7
4.712
4.564
4.423
4.288
4.160
4.039
3.922
3.812
3.706
3.605
8
0.434
0.404
0.376
0.351
0.327
0.305
0.285
0.266
0.249
0.233
8
5.146
4.968
4.799
4.639
4.487
4.344
4.207
4.078
3.954
3.837
9
0.391
0.361
0.333
0.308
0.284
0.263
0.243
0.225
0.209
0.194
9
5.537
5.328
5.132
4.946
4.772
4.607
4.451
4.303
4.163
4.031
10
0.352
0.322
0.295
0.270
0.247
0.227
0.208
0.191
0.176
0.162
10
5.889
5.650
5.426
5.216
5.019
4.833
4.659
4.494
4.339
4.192
Discount Rate
Discount Rate
End of Period
21%
22%
23%
24%
25%
26%
27%
28%
29%
30%
21%
22%
23%
24%
25%
26%
27%
28%
29%
30%
1
0.826
0.820
0.813
0.806
0.800
0.794
0.787
0.781
0.775
0.769
1
0.826
0.820
0.813
0.806
0.800
0.794
0.787
0.781
0.775
0.769
2
0.683
0.672
0.661
0.650
0.640
0.630
0.620
0.610
0.601
0.592
2
1.509
1.492
1.474
1.457
1.440
1.424
1.407
1.392
1.376
1.361
3
0.564
0.551
0.537
0.524
0.512
0.500
0.488
0.477
0.466
0.455
3
2.074
2.042
2.011
1.981
1.952
1.923
1.896
1.868
1.842
1.816
4
0.467
0.451
0.437
0.423
0.410
0.397
0.384
0.373
0.361
0.350
4
2.540
2.494
2.448
2.404
2.362
2.320
2.280
2.241
2.203
2.166
5
0.386
0.370
0.355
0.341
0.328
0.315
0.303
0.291
0.280
0.269
5
2.926
2.864
2.803
2.745
2.689
2.635
2.583
2.532
2.483
2.436
6
0.319
0.303
0.289
0.275
0.262
0.250
0.238
0.227
0.217
0.207
6
3.245
3.167
3.092
3.020
2.951
2.885
2.821
2.759
2.700
2.643
7
0.263
0.249
0.235
0.222
0.210
0.198
0.188
0.178
0.168
0.159
7
3.508
3.416
3.327
3.242
3.161
3.083
3.009
2.937
2.868
2.802
8
0.218
0.204
0.191
0.179
0.168
0.157
0.148
0.139
0.130
0.123
8
3.726
3.619
3.518
3.421
3.329
3.241
3.156
3.076
2.999
2.925
9
0.180
0.167
0.155
0.144
0.134
0.125
0.116
0.108
0.101
0.094
9
3.905
3.786
3.673
3.566
3.463
3.366
3.273
3.184
3.100
3.019
10
0.149
0.137
0.126
0.116
0.107
0.099
0.092
0.085
0.078
0.073
10
4.054
3.923
3.799
3.682
3.571
3.465
3.364
3.269
3.178
3.092
EDUC 742
PPOL 650
Reading Summary and Reflective Comments Form and
Instructions
For each assigned reading, summarize the main principles and
reflect on these principles in order to make the content
meaningful to you. This will ensure that you understand the
reading and its relationship to current events. The reflective
comments may draw on your experiences or information from
other readings. You must also critique ideas in light of a
biblical worldview. Approximate length of main principles
summaries must be 100–125 words each and must be in
paragraph form, and the reflective comments must be 150–200
words each. Submit the Reading Summary and Reflective
Comments by 11:59 p.m. (ET) on Sunday in Modules/Weeks 1–
7, adding the new entries each time.
Student:
Reading
Assignment
Main Principles
Reflective Comments
Reading Summary 1
Henderson
Payne
United States Constitution
Reading Summary 2
Henderson
Payne
U.N. Charter
Reading Summary 3
Henderson
Payne
Reading Summary 4
Henderson
Payne
Reading Summary 5
Henderson
Payne
Reading Summary 6
Payne
Reading Summary 7
Payne
Page 2 of 3
PPOL 650
Student:
5 Points
4 Points
3 Points
0–2 Points
Critical
Thinking
Rich in content:
full of thought, insight, and analysis. Ideas are critiqued in light
of a biblical worldview.
Substantial information:
a degree of thought, insight, and analysis has taken place.
Generally competent:
information is thin and commonplace.
Rudimentary and superficial:
no analysis or insight is displayed.
Connections
The summaries are reflective. Ideas are critiqued in light of a
biblical worldview. Clear connections to real-life situations.
New connections lack depth and/or detail.
Limited, if any, connections. Vague generalities.
No connections are made. Off topic.
Uniqueness
New ideas and connections display depth and detail.
New ideas and connections lack depth and/or detail.
Few, if any, new ideas or connections, simply restates or
summarizes.
No new ideas or connections are explained.
Timeliness
All required postings submitted, adding new entries each time.
Most required postings submitted, adding new entries each time.
Some postings submitted.
All required postings missing.
Stylistics
Few grammatical or stylistic errors. Reflections are 150–200
words. Summaries are 100–125 words. Written in paragraph
form.
Some grammatical or stylistic errors. Reflections are 150–200
words. Summaries are 100–125 words. Written in paragraph
form.
Obvious grammatical or stylistic errors that interfere with
content. Reflections and summaries have less than the required
amount of words.
Obvious grammatical or stylistic errors that make understanding
impossible. The required amounts of words are not met.
Total ____________________________/25
Reading Summary and Reflective Comments Grading Rubric

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Chapter 5 Global TerrorismNONSTATE ADVERSARIES, FUNDAMENTALIST.docx

  • 1. Chapter 5 Global Terrorism NONSTATE ADVERSARIES, FUNDAMENTALIST RELIGIOUS EXTREMISM, AND WEAPONS ARE THREE FORCES OF GLOBAL TERRORISM, ALL REPRESENTED BY TALIBAN FIGHTERS IN AFGHANISTAN. Learning Objectives 1. 5.1Recognize that terrorism is a contentious issue that becomes hopelessly muddled by political and military considerations 2. 5.2Review the factors that are conducive to terrorism 3. 5.3Identify the goals, strategies, and weapons of terrorism 4. 5.4Identify the sources of funds that are used for financing terrorism 5. 5.5Review how terrorism adversely affects individuals, nations, and other groups 6. 5.6Summarize five kinds of terrorism 7. 5.7Examine the different ways of combating terrorism 8. 5.8Analyze the fundamental question about the balance between fighting terrorism and protecting democracy within the United States The Boston Marathon bombing in April 2013 and the grisly murder of an off-duty British soldier in public in London in May 2013 that was filmed on mobile phones as the terrorist waited for police demonstrate a further shift away from centralized terrorist organizations to lone wolf terrorism. This kind of terrorism is conducted by self-motivated independent individuals. The attacks in Boston and London show how difficult it is to prevent lone wolf terrorism. Successful U.S. counterterrorism measures against al-Qaeda in the Arabian Peninsula and in Pakistan, combined with failed democratic transitions in the Middle East and North Africa, have contributed to the shift of global terrorism to Africa. Domestic terrorist groups such as Boko Haram, which means
  • 2. “Western education is sacrilege,” in northern Nigeria, collaborate with al-Qaeda. The Syrian civil war, chaos in Iraq following the U.S. withdrawal, and the disintegration of law and order in Libya have strengthened terrorism, most notably the group called the Islamic State of Iraq and Syria (ISIS), which claimed credit for the November 13, 2015 terrorist massacre in Paris. The growing use of armed drones for targeted killings of suspected terrorists in Yemen, Pakistan, Somalia, Niger, and elsewhere raises many controversial issues. Drones are effective weapons against terrorists. Even though they kill fewer civilians than alternative methods, the loss of innocent civilian lives undermines their use. Edward Snowden’s leaking of documents showing extensive spying on Americans as well as people and governments around the world by the National Security Agency (NSA) as part of America’s counterterrorism strategy raised global concerns about the basic right to privacy. It also has far-reaching consequences for U.S. security and foreign policy. Osama bin Laden, widely viewed as the embodiment of global terrorism, was killed by U.S. Special Forces on May 1, 2011, in Pakistan. Despite this significant development, the war on terrorism continues. Think about how the escalation of global terrorism affects our daily lives. This global problem is now virtually inseparable from personal concerns. Even traveling by plane from one city to another within the United States and Canada, which was once largely uneventful, has become much more complicated and stressful due to increased airport security. National and global institutions have also been profoundly affected by this problem. The U.S. Department of Homeland Security was created in 2003 as a direct response to the terrorist attacks in September 2001. It brought together twenty-two government agencies with 180,000 workers, making it the largest government reorganization in forty years. Domestic security has been strengthened, especially around bridges, water supplies, government offices, nuclear power
  • 3. plants, scientific laboratories, food supplies, and industrial factories. This chapter emphasizes the growing importance of asymmetrical power in global affairs. When relatively weak groups use low-tech tools to inflict significant damage on very powerful countries that have the most advanced military technologies, they are using asymmetrical power. While states are generally impeded by national boundaries, their nonstate adversaries routinely disregard national borders. This chapter discusses difficulties involved in defining terrorism; factors conducive to the rise of terrorism; and goals, strategies, and weapons of terrorist groups. After examining specific cases of terrorism, we will discuss various responses to terrorism and the dilemmas democracies face in attempting to eliminate or reduce this threat. This chapter concludes with a case study of terrorism in Pakistan.5.1: Defining Terrorism 1. 5.1 Recognize that terrorism is a contentious issue that becomes hopelessly muddled by political and military considerations Proudly proclaiming their commitment to liberty, equality, and fraternity, the architects of the French Revolution instituted a Reign of Terror (1793–1794) to preserve the radical changes. Headed by Maximilien Robespierre, the Committee of Public Safety embraced terrorism in its effort to rule France during a period that was regarded as a national emergency. The French zeal for the Terror, the period of widespread violence, public executions, and intimidation of civilians, was strongly rejected by Edmund Burke, the British conservative philosopher who regarded French terrorists as hellhounds. Although there is no universally accepted definition of terrorism, the standard view that one person’s terrorist is another person’s freedom fighter fails to distinguish among the various kinds and levels of terrorism and fails to acknowledge that freedom fighters’ actions are not necessarily justified. What is clear is that terrorism is a contentious issue that becomes hopelessly muddled by political and military considerations.1
  • 4. All acts of terrorism are designed to create fear, to cause people to tremble. By using the most advanced technologies of global communication, terrorists seek to frighten people in distant places in order to exert pressure on governments. Terrorism is essentially a form of psychological warfare. Unlike most conventional wars, terrorism lasts for generations, as we will see in our discussions of the Irish Republican Army (IRA), the Basques in Spain, and the Palestinians. Terrorism is also indiscriminate. Most terrorist activities aim to create uncertainty and general fear by communicating that anyone can be a target. In many ways, terrorism is closely associated with ideology. This is clearly the case with al-Qaeda: It is less an organization than an ideology that inspires groups and people worldwide to engage in terrorist acts. Distinguishing terrorism from guerrilla warfare and insurgency is often challenging. Guerrilla warfare, which means “little war,” is the use of selective violence against military targets. But when societies experience extensive violence, distinctions between guerrilla warfare and terrorism tend to blur. Following the attacks in the United States, many governments applied the label of terrorism to very old conflicts of their own that were previously regarded as insurgencies. For example, China annexed what is now Xinjiang in 1759. The inhabitants, known as Uighurs, practice Sufi Islam and speak a Turkic language. They resisted China’s rule and launched their first uprising in 1865. The disintegration of the Soviet Union and the independence gained by some Muslim communities in Central Asia inspired the Uighurs to renew their struggle to establish a separate state. China was quick to label the Uighurs as terrorists. The military-led government that overthrew the Egyptian government controlled by the Muslim Brotherhood called the Muslim Brotherhood a terrorist organization despite the fact it was elected by millions of Egyptians and had long rejected using violence. This raises the question: Who gets to define terrorism, and why? Complicating definitions of terrorism is the general acceptance of war as a legitimate
  • 5. instrument of governments. Paul Wilkinson argues that “terrorist campaigns inherently involve deliberate attacks on civilian targets and are therefore analogous to war crimes.”2 But who decides which military actions are war crimes?5.2: Factors Conducive to Terrorism 1. 5.2 Review the factors that are conducive to terrorism Examining the factors that make terrorism a useful tool to accomplish certain objectives is essential to any pragmatic effort to eliminate or diminish terrorist threats. Terrorism has many interrelated causes. Poverty is widely perceived as the root of terrorism. Poverty is closely linked to economic and political isolation, feelings of hopelessness, violations of human rights, and the lack of democracy, which all provide a fertile breeding ground for terrorism. In Pakistan, students enroll in religious seminaries, called madrassas. Supported by Muslim charities worldwide— especially those in Saudi Arabia—they feed, shelter, clothe, and educate students from poverty-stricken families. In addition to receiving training in the Koran, these students are indoctrinated to hate the West, especially the United States. Many terrorists graduate from madrassas.3 However, terrorists who attacked the United States, Spain, and Britain were not poor. Many of them came from the middle class. Globalization is a major factor in global terrorism. In many ways, terrorism is a product of resistance to change brought about by cultural, economic, political, military, and even environmental globalization. Individuals in distant places communicate instantaneously and are able to coordinate their activities on a global scale. Global transportation enables them to move easily from one country to another. Global cities provide an environment in which it is easy for people to be anonymous. Legitimate grievances and the failure of governments to adequately address these problems often foment terrorism. In fact, most terrorist organizations trace their origins to political, religious, social, economic, and ethnic problems that were
  • 6. ignored, downplayed, or dismissed by those in power and by society in general. Why did the African National Congress (ANC) in South Africa, the Palestine Liberation Organization (PLO), and the IRA become terrorist organizations? Specific grievances motivated individuals to form these groups and to use terrorism to achieve their objectives. Violence by governments also causes terrorism. Governments routinely abuse their monopoly on legitimate violence regarding specific minority groups or majority groups that lack significant political, economic, and social power. The efficacy of official violence influences individuals and groups that want to change their circumstances to resort to violence. Humiliation is another factor conducive to the use of terrorism. Terrorism, which was not a problem in Iraq before the U.S. invasion, became widespread there. Many Iraqis felt humiliated by intrusive American searches, by being occupied, and by being mistreated. Thomas L. Friedman, an influential journalist with the New York Times, stated: “If I’ve learned one thing covering world affairs, it is this: The single most under- appreciated force in international relations is humiliation.”4 The lack of democracy, and widespread and systematic violations of human rights, contributes to the rise of terrorism. The September 11 terrorist attacks in the United States drew attention to Saudi Arabia and Egypt, countries to which most of the terrorists belonged. Dissidents such as Osama bin Laden (from Saudi Arabia) and Mohammed Atta (the Egyptian-born leader of the terrorist attacks) were unable to express dissent at home, so they went to Afghanistan to organize al-Qaeda, a global terrorist network. Foreign policies contribute to terrorism. Roman occupation of Israel generated strong resistance by the Jews, and some Jews adopted terrorism in a futile effort to end Roman oppression. European expansion and colonization laid the foundation for the emergence of national liberation movements that used terrorism to achieve independence. Many foreign policy and terrorism analysts view U.S. foreign policies in the Middle East—
  • 7. especially those involving the Palestinian-Israeli conflict, Saudi Arabia, and Egypt—as being conducive to terrorism. For example, Osama bin Laden strongly opposed the stationing of American troops in Saudi Arabia during the 1991 Gulf War. The U.S. policies are widely seen in the Middle East and elsewhere as contributing to the oppression of the Palestinians by Israel. Finally, failed states provide an environment conducive to terrorism. Failed states generally abuse human rights; are undemocratic; are intolerant of ethnic, political, and religious diversity; and have weak economies. State failure is often accompanied by an increase in bureaucratic corruption and cooperation among government officials and criminals. In essence, state authority and civil society are severely undermined, and many regions within a country are lawless. The most obvious example of how state failure breeds terrorism is al-Qaeda in Afghanistan. Under the leadership of the Taliban (i.e., a group of extreme Islamic fundamentalists), Afghanistan provided bin Laden with an ideal environment in which terrorism could grow and from which terrorist activities could be organized.5.3: Goals, Strategies, and Weapons of Terrorism 1. 5.3 Identify the goals, strategies, and weapons of terrorism The goals of terrorism include the following: 1. Social and political justice, Terrorism has been used to achieve concrete political and social changes, including overthrowing repressive regimes. 2. Self-determination, Many terrorist organizations emerged as part of the struggle to gain national independence. 3. Racial superiority, Many white supremacist groups attempt to preserve racial segregation and social, economic, and political power based on skin color. 4. Foreign policies, Terrorism is often used to influence governments to take or refrain from taking certain actions. 5. Publicity, A central goal of most terrorist groups is to draw public attention to their cause. 6. Demoralized governments, By making governments appear
  • 8. weak and incompetent, terrorists believe they can undermine their legitimacy and policies. Terrorist organizations adopt several strategies to achieve their objectives. Creating a climate of fear and insecurity, partly to undermine people’s confidence in their government, is an integral component of terrorists’ strategies. But terrorism also depends on cultivating popular support. Terrorists are generally effective when they operate in an environment that enables them to hide, obtain resources (including weapons), gather information about government operations and plans, and communicate with each other. However, telecommunications and computer technologies have reduced the need for popular support as a component of strategy. Terrorists rely on virtual networks, a style of organization that is essentially leaderless and is facilitated by the Internet. American right-wing extremists developed this strategy to counteract the effectiveness of U.S. law enforcement agencies.5 Some terrorist groups reject the terrorist label to gain greater legitimacy or acceptance in society. Governments, on the other hand, refuse to confer any kind of legitimacy on terrorist groups and reject defining terrorism as warfare. These terrorist groups are likely to select government targets, including embassies, military personnel and bases, and government officials. In Colombia, for example, terrorist groups launched a campaign of assassinations to get the attention of the government and its supporters. Judges, prosecutors, and elected officials were the main targets. This strategy attempts to undermine assumptions that government policies can ensure personal safety.6Selective kidnappings are also used by terrorists to achieve their goals. By taking government officials, soldiers, businesspeople, and prominent citizens hostage, the terrorists force the government to either take military action against them or bargain with them. Weapons used by terrorists vary according to their goals, available technology, and resources at their disposal. Sarin gas, anthrax, and various poisons have been used in Japan and the United States. Motor vehicles packed with ammonium nitrate
  • 9. and fuel oil were used as bombs in Oklahoma City in 1995 and in Bali, Indonesia, in 2002. Suicide bombers are lethal weapons in many parts of the world, including Israel, Saudi Arabia, Pakistan, Afghanistan, and Iraq. The use of airliners fully loaded with fuel as missiles to destroy the World Trade Center and damage the Pentagon focused global attention on a new terrorist weapon. Terrorists also put bombs in the mail and on cargo planes. As terrorists use the Internet to spread their message and organize their activities, there is growing awareness of cyberspace warfare as a weapon in the terrorists’ arsenal. Although few terrorists are capable of using weapons of mass destruction on a large scale, chemical and biological weapons in the possession of terrorists are a global concern. Syria’s civil war exposed that country’s vast stockpiles of chemical weapons to terrorists, which prompted the global community to pressure Syria to give them up to be destroyed.5.4: Financing Terrorism 1. 5.4 Identify the sources of funds that are used for financing terrorism Many terrorist cells are self-supporting, and many terrorists do not engage in financial activities that immediately draw attention. This makes it extremely difficult for governments to gather financial information. Furthermore, many terrorists use hawalas (i.e., an informal system of transferring money that is based primarily on trust and interpersonal relations). Developed in India before the arrival of Western banking, hawalas frustrate efforts to trace money because they leave no electronic and virtually no paper trail.7 Contributions from individuals and groups are a major source of money for terrorism. In the case of al-Qaeda, bin Laden used his considerable wealth to finance global terrorism. Many individuals make charitable contributions to organizations that are principally concerned with assisting the poor. However, some of this money is also used to support terrorism. Governments finance terrorism, both directly and inadvertently. The most obvious way is by sponsoring their
  • 10. activities. For many years, Libya’s leader, Muammar Qaddafi, openly financed and trained terrorist groups in the Middle East and Africa. Diamonds, oil, and other natural resources provide revenues for terrorism. Terrorists often prefer diamonds because they are easily transported, easily hidden, and easily converted into cash. Failed states in Africa often provide opportunities for rebel groups to cooperate with terrorist groups. One of the best examples is Sierra Leone in West Africa. Sierra Leone has some of the richest diamond fields in the world. It has also been plagued by political instability. The diamond trade helped fund both Sierra Leone’s civil wars and al-Qaeda. Senior members of Sierra Leone’s Revolutionary United Front (RUF), a rebel group that challenged the government and engaged in horrific acts of violence and terrorism, took diamonds, often wrapped in rags, across the border into Liberia and exchanged them for cash from al-Qaeda and Hezbollah, a Shiite terrorist group in Lebanon. With the cooperation of corrupt customs and immigration officials, the diamonds, which were bought at below-market prices, were then taken to Europe by terrorist organizations and sold at much higher prices.8 These diamonds are widely known as conflict diamonds because of their inextricable links with brutal civil wars and terrorism. Criminal activities are a major source of funding for terrorism. Terrorists are often involved in armed robbery, credit card fraud, identity theft, kidnapping, extortion, and other crimes. In the Philippines, for example, the terrorist group Abu Sayyaf routinely kidnaps people, including tourists, to finance its activities. Kidnappings have proliferated in Africa, the new front of global terrorism. The Tamil Tigers in Sri Lanka controlled and operated boats that smuggled contraband in the Indian Ocean region. Often, terrorist groups coerce civilians into paying protection money, sometimes called a revolutionary tax. The IRA is a group that used this method to finance terrorism. Other groups, such as the Taliban in Afghanistan, use money obtained from the sale of illegal drugs. Terrorists in
  • 11. Africa are also involved in poaching endangered species such as elephants and rhinos to finance their operations. 5.5: The Costs of Terrorism 1. 5.5 Review how terrorism adversely affects individuals, nations, and other groups Costs associated with terrorism are so widespread, complex, and intangible that they are virtually impossible to measure. Individuals, families, governments, companies, and nonstate actors worldwide bear the costs of terrorism to varying degrees. Time, money, and other resources are diverted from other problems. Migration, trade, travel, and interpersonal relations are affected. In September 2001, a very small group of individuals, nineteen of them, caused incalculable damage to the United States as well as the global community. Almost three thousand people from roughly fifty countries were killed. It is generally believed that the financial crisis and the global recession were caused in part by policies adopted by the Bush administration to fight global terrorism, including wars in Afghanistan and Iraq. Domestic terrorists, using anthrax, also damaged U.S. government offices, businesses, and individuals. 5.5.1: Costs to Individuals Individuals usually suffer the most from terrorist acts in terms of loss of lives and social, psychological, and physical problems. Many citizens are made ill by fear and a sudden loss of personal freedom. They restrict their activities, limit their travel, and often distrust their neighbors, thereby weakening community bonds and support. For example, the 2001 attacks undermined trust between most non-Muslim Americans and Muslims in general, especially Arabs. Relations between non- Muslim Americans and Muslims remain problematic. President Barack Obama made a concerted effort to improve relations with the Muslim world. 5.5.2: Economic Costs Calculating the economic costs of terrorism and the responses to it is virtually impossible because they are so complex and far- reaching. For example, after the 2001 attacks, airlines suffered
  • 12. major financial losses and continue to feel the impact of terrorism. It is estimated that the global airline industry lost $18 billion in 2001 and $13 billion in 2002 following the attacks. Combined, these losses were more than the total profit of all the airlines since 1945.9 High oil prices and continuing fears about terrorism continued to create severe financial problems, including bankruptcy for some airlines. 5.5.3: Costs to Governments Governments generally increase resources to fight terrorism and to provide their citizens with a heightened sense of WHAT DOES THIS PHOTO CONVEY ABOUT THE COSTS OF FIGHTING TERRORISM? A Transportation Security Administration (TSA) official instructs a passenger at a full- body scan at Washington Dulles International Airport. security. For example, as you prepare to board an airline, the costs become obvious. There are more security guards, bags are carefully checked, and individuals are often searched. While airlines pay some of these costs, the U.S. federal government is primarily responsible for airport security. The federal, state, and local governments in the United States also spend money to guard bridges, nuclear power plants, train stations, and so on. The most obvious costs are associated with military actions against terrorists. The invasion of Afghanistan to destroy al- Qaeda and the Taliban, as well as the invasion, occupation, and rebuilding of Iraq, has cost many lives and more than a trillion dollars.10 5.5.4: Foreign Policy Costs Several times following the 2001 attacks, the United States closed its embassies in Saudi Arabia and elsewhere. These shutdowns meant that America was paying a price for not being able to conduct normal diplomatic relations. Furthermore, heightened security for embassies creates additional expenses. 5.5.5: Costs to Democracy People who are afraid, as Thomas Hobbes observed, are willing to turn to all-powerful rulers who promise to provide security.
  • 13. But part of the price for that security is less freedom. In a climate of fear, governments often justify violating individuals’ rights on the grounds of national security. Torturing terrorist suspects and denying them the fundamental right to habeas corpus continues to be debated in the United States. 5.6: Kinds of Terrorism 1. 5.6 Summarize five kinds of terrorism Although the types of terrorism tend to overlap, they vary in their implications and affect us in different ways. For example, the indiscriminate nature of global terrorism contrasts sharply with domestic terrorism aimed at specific groups or governments. In this section, we will discuss six kinds of terrorism: 1. Domestic terrorism occurs within the borders of a particular country and is associated with extremist groups. 2. Nationalist terrorism is closely associated with struggles for political autonomy and independence. 3. Religious terrorism grows out of extreme fundamentalist religious groups that believe that God is on their side and that their violence is divinely inspired and approved. 4. State terrorism is a cold, calculated, efficient, and extremely destructive form of terrorism, partly because of the overwhelming power at the disposal of governments. 5. Global terrorism is partly an outgrowth of the forces of globalization, which enable the different kinds of terrorism to spread worldwide. 6. Lone wolf terrorism is conducted by independent individuals who act without the help of a terrorist organization. Often the line is blurred because of the terrorists’ connections with terrorist organizations. Sometimes those organizations claim credit, saying they trained the terrorists and ordered the attacks. LONE WOLF TERRORISM CAUSED HORROR AND DAMAGE NEAR THE FINISH LINE OF THE BOSTON MARATHON IN 2013. Three people were killed and more than 250 were injured or maimed when two brothers set off pressure
  • 14. cooker bombs concealed in backpacks. 5.6.1: Domestic Terrorism The emergence of terrorism as a major global issue has focused increased attention on domestic terrorism in the United States, Europe, and elsewhere. The murder of thirteen soldiers at Fort Hood by Major Nidal Malik Hasan, a Palestinian American, in 2009 and numerous connections between homegrown terrorists and al-Qaeda have underscored America’s vulnerability to internal threats from nonstate actors. In June 2009 a doctor who performed abortions in Kansas was killed in a church by a gunman who opposed abortion. Later in June a white supremacist and neo-Nazi attacked the U.S. Holocaust Memorial Museum, killing a security guard. On April 19, 1995, Americans watched with incredulity as bloodied bodies were pulled from the federal building in Oklahoma City. Most Americans quickly blamed Middle Eastern terrorists for the Oklahoma City bombing, which killed 168 people. But the leader of this terrorist act was Timothy McVeigh, an American and a decorated Gulf War veteran. In April 2013, the United States and the world were horrified by the Boston Marathon bombings by two Boston-area residents that killed three people and wounded more than 170. Domestic terrorism has existed in the United States and other countries for hundreds of years. Unlike most countries, where terrorist activities have been carried out primarily against governments, terrorism in America has been used mostly against racial, ethnic, or religious minorities. American terrorists are predominantly right-wing extremists who embrace white supremacist, anti-Jewish, antiforeign, and antigovernment philosophies based on a religious doctrine known as Christian identity. This doctrine essentially holds that white people are chosen by God, whereas Jews, Americans with African ancestry, Asians, and other racial minorities are “mud people.” These terrorists generally believe that the U.S. government is dominated by Jews and is an occupying power and that the United States should not participate in the United Nations and other international organizations. Based on these
  • 15. beliefs, they have formed heavily armed militias, strongly oppose gun control, and refuse to pay taxes. Domestic terrorist groups include the National Alliance, the Ku Klux Klan, the Aryan Nation, Posse Comitatus, and the Confederate Hammerskins. The United States has made fighting domestic terrorism a national priority in the wake of ending wars in Iraq and Afghanistan and the escalation of lone wolf terrorism in America, which are discussed later in this chapter. Domestic terrorism has long been a significant problem in several European countries. Throughout the 1970s and 1980s, the Red Brigades, an Italian terrorist group, launched a campaign of bombings and assassinations of government officials. Germany, France, and Greece … Q14 Complete the table below to examine the budgeted profitability of each sales channel per unit. (3 marks) B2B Online Retail Sales (£ per unit) 45 64 75 variable cost (£ per unit) 16 15 14 Direct costs (£ per unit) 18 19
  • 16. 20 Contribution (£ per unit) Cost of sales (£ per unit) Gross profit (£ per unit) Q15 Chain&Gear would like to incorporate the profitability analysis in Q14 above, into monthly reporting, and is considering the following enhancements to the regular management report:
  • 17. (a) Describe how ‘variance analysis’ could be presented in the profitability report. (2 marks) (b) What would be the benefit of variance analysis in the report? (2 marks) Q15 Continued (c) Describe how forecasting information could be presented in the profitability report. (2 marks) (d) What would be the benefit of forecasting information in the report? (2 marks)
  • 18. May 2020 Page 8 Present Value Table Annuity Table Discount Rate
  • 19. Discount Rate End of Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% No. of Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 1
  • 26. Discount Rate Discount Rate End of Period 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 11% 12% 13% 14% 15% 16%
  • 40. 3.100 3.019 10 0.149 0.137 0.126 0.116 0.107 0.099 0.092 0.085 0.078 0.073 10 4.054 3.923 3.799 3.682 3.571 3.465 3.364 3.269 3.178 3.092 EDUC 742 PPOL 650 Reading Summary and Reflective Comments Form and Instructions For each assigned reading, summarize the main principles and reflect on these principles in order to make the content
  • 41. meaningful to you. This will ensure that you understand the reading and its relationship to current events. The reflective comments may draw on your experiences or information from other readings. You must also critique ideas in light of a biblical worldview. Approximate length of main principles summaries must be 100–125 words each and must be in paragraph form, and the reflective comments must be 150–200 words each. Submit the Reading Summary and Reflective Comments by 11:59 p.m. (ET) on Sunday in Modules/Weeks 1– 7, adding the new entries each time. Student: Reading Assignment Main Principles Reflective Comments Reading Summary 1 Henderson Payne United States Constitution Reading Summary 2 Henderson Payne U.N. Charter
  • 42. Reading Summary 3 Henderson Payne Reading Summary 4 Henderson Payne Reading Summary 5 Henderson Payne Reading Summary 6 Payne Reading Summary 7 Payne Page 2 of 3 PPOL 650 Student:
  • 43. 5 Points 4 Points 3 Points 0–2 Points Critical Thinking Rich in content: full of thought, insight, and analysis. Ideas are critiqued in light of a biblical worldview. Substantial information: a degree of thought, insight, and analysis has taken place. Generally competent: information is thin and commonplace. Rudimentary and superficial: no analysis or insight is displayed. Connections The summaries are reflective. Ideas are critiqued in light of a biblical worldview. Clear connections to real-life situations. New connections lack depth and/or detail. Limited, if any, connections. Vague generalities. No connections are made. Off topic. Uniqueness New ideas and connections display depth and detail. New ideas and connections lack depth and/or detail. Few, if any, new ideas or connections, simply restates or summarizes. No new ideas or connections are explained. Timeliness All required postings submitted, adding new entries each time. Most required postings submitted, adding new entries each time. Some postings submitted. All required postings missing. Stylistics Few grammatical or stylistic errors. Reflections are 150–200
  • 44. words. Summaries are 100–125 words. Written in paragraph form. Some grammatical or stylistic errors. Reflections are 150–200 words. Summaries are 100–125 words. Written in paragraph form. Obvious grammatical or stylistic errors that interfere with content. Reflections and summaries have less than the required amount of words. Obvious grammatical or stylistic errors that make understanding impossible. The required amounts of words are not met. Total ____________________________/25 Reading Summary and Reflective Comments Grading Rubric