Impact of Transnational Terrorism
Impact Economic Explanation 1. The September 11 attacks led to huge costs - total loss of life and property costs insurance agencies US$40 Billion. 2. People were afraid of flying and airline industries lost a lot of businesses. 3. US Government stepped in to provide economic aid to the airline industry. 4. Tourism industry was also affected. E.G: Bali tourist arrivals fell by 50%. 5. Government spending increased to cater for increased security deployed more police and troops to guard areas such as airports. 6. More money and resources in holding exercised to ensure emergency services and their citizens are prepared in an attack. E.G: Jan 2006, the SCDF carried out Exercise Northstar involving 2000 people. Social 1. Terrorist acts have the potential to affect peaceful relations among the races in multiracial societies. 2. It may create suspicion and tension among various ethnic and religious groups. 3. Cause people to react violently and unfavourably, especially if their loved ones are affected. E.G: Sep 11 attacks in US were attacks on members of ethnic groups 4. These attacks had potential to cause ethnic groups to feel targeted as they were singled out for increased security checks or viewed suspiciously by the community. 5. Feelings of alienation arose and tension increased. 6. Thus, communal trust built over the years may be destroyed by terrorism. 7. Governments in the world realised the importance of maintaining racial and religious harmony. Elaboration 7. This led to a closure in many businesses. 8. Thus, terrorist attacks put additional economic strains on the government.


1. Government assumes greater responsibility in ensuring security against terrorist acts. 2. Tighten various controls such as stepping up border security to ensure terrorists do not slip into the country. 3. There are also greater checks on travellers’ identities and belongings. Thus, slowing down immigration clearance.

4. This causes displeasure to the travellers in terms of inconvenience and infringements of personal freedom and privacy. 5. Unhappy relations with the government.


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