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Terrorism and impacts on

macro and socio economic


indicators in Pakistan
Group Members
Rafia Razzaq
Maryam Khalid
Farah Kanwal
Jawad Hassan

Introduction
Terrorism is the biggest threat to Pakistans
progress. It roots can be traced back from
1979,
when there was an effort to kick out Russia
from
Afghanistan. After 9/11 the phenomenon
of terrorism has severely changed the socio-
economic and geo-political scenario of the
world. Terrorism is a tree and extremism
provides
balance food to grow the tree properly. . In
simple words terrorism is the state of fear
created
through the act of violence.
Objective of this study
In this study our objective is impact of
terrorism on macro and socio economic
indicators. For this purpose we used the
data from 2001 to 2012. This impact is
explain by the graph.
What is a Terrorism
It is difficult to tell the meaning of terrorism but
it can be briefly said that the terrorism is state
of
mind rather than activity. Terrorism means to
impose ones own interpretations of religious
teachings, socio-cultural, and politico-economic
values and norms through violence in the
society.
The common understanding about the
terrorism is
that Terrorism is an organized system of
intimidation, especially for political ends.


Farah Kanwal
IUB1276132
Literature Review
Arshad ali ( ) study was economic cost of terrorism in
Pakistan. The main objective of this study was
terrorism in
Pakistan in a multi-dimensional perspective. And the
impact terrorism on GDP growth, it also takes into
account the impact of FDI and along with the social
sector.
Sabir Michael(2007) was conducted by the study of
Terrorism a socio-economic and political
phenomenon in
Pakistan. He was observed that terrorism had not
only
destroyed the socio economic fabric of the society
but
also it has harmed the world peace to a great level.


Sultan Mehmood(2013) found the
negative effect of terrorism at least for 2
years of the most macroeconomic variables
and finds evidence that terrorism,
particularly
in emerging economies, might cause
significant
macroeconomic costs to the economy.
Umar Daraz at-al(2012) was identify the
socio-
Economic causes, impacts and
psychological
crises of terrorism in Pakistan.

TYPES OF TERRORISM
Revolutionary Terrorism
Nationalist Terrorism
Religious Terrorism
Group Terrorism
Ethnic Terrorism
CAUSES OF TERRORISM
Helplessness and Hopelessness
Political and Economic Deprivation
Influence of Communist Regimes
Poverty and Economic Exploitation
Easy Access to Weapons and
Modern
Technology
Lack of Democracy and Dictatorship


Rafia Razzaq
IUB1276124
Methodology
The purpose of this study is to describe
the
most important theoretical contributions
to study the impact of terrorism on the
macro economy. And also describe the
attacks, deaths and impact of the
macroeconomics and socio- economic
indicators. The relationship is show by
graphs.
Socio-Economic Determinants
of Terrorism
The secondary factors that have a relative
importance in the existence of terrorism
comprises of foreign intrusion, poverty
and
Economic deprivation, unemployment,
tribalism and feudalistic nature of the
social
structure play their role to dominated
human
thinking and bring inconsistency and
uncertainty


Macroeconomics indicators
In which we show the relationship GDP,
Inflation, public debt and foreign direct
investment. We used the descriptive
analysis. First the GDP is negative
related
on terrorism. We have used the data
2001
to 2012 in Eviews run the fowolling
result.
1
2
3
4
5
6
7
8
01 02 03 04 05 06 07 08 09 10 11 12
GDP in persantage
Second impact of inflation on terrorism is
positive.
0
4
8
12
16
20
24
01 02 03 04 05 06 07 08 09 10 11 12
INFLATION
Third the impact of FDI on terrorism is
negative.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
01 02 03 04 05 06 07 08 09 10 11 12
FDI
And last the impact of external debt on
terrorism is positive.
3.0E+10
3.5E+10
4.0E+10
4.5E+10
5.0E+10
5.5E+10
6.0E+10
6.5E+10
01 02 03 04 05 06 07 08 09 10 11 12
External Debt


Jawad Hassan
IUB1276138
Conclusion
Terrorism is a very sensitive issue in
Pakistan. Economic literature highlights
various factors affecting terrorism.
Terrorism hits the economy directly and
indirectly by effected FDI, GDP, inflation,
lowering economic growth, rising
unemployment and poverty. We collect
the data from 2001to 2012. So thats why
we
conclude that terrorism is badly impact of
macro and socio economic indicators.
RECOMMENDATIONS
Understanding the root causes
of terrorism not only institutor of Madrassa
but
the educational and economic system need
reforms.
Pakistan needs justice based economic
and
educational system.
It is the duty of the social scientists,
nationalist, economic and political thinkers to
launch a nationwide movement for a safe and
secure Pakistan.
Thanks