se as a small state that has been highly vulnerable to a large number of terrorist attacks over many years, http://www.cheaptomsshoesoutletstore.us - cheap toms . But using worldwide data spanning many developed and developing countries, researchers at the Milken Institute find statistical support for the proposition that an increased incidence of terror attacks is harmful to economic activity both in the short and long run.In particular, they point to the detrimental effect on capital formation caused by the fear and uncertainty of a terrorist attack. Capital accumulation is a key driver of long-term economic growth.There are no comparable systematic studies using Indian data as far as I’m aware, but there’s certainly anecdotal evidence that terrorist attacks, especially centered around financial and commercial districts within Mumbai, instill fear in those who live and work there. It’s surely no accident that the multi-billion dollar diamond industry, which is one important plank of Mumbai’s prosperity, was a principal target Wednesday.While it’s early days, the experience of terrorist attacks in Mumbai suggests that people will board the local trains and come to work as usual. For many people, it’s not a matter of heroism but an existential struggle for survival.In a poor country such as India, most people don’t have the luxury of grief but have to get back to work to feed themselves and their families. That is the economic core behind the resilience so often noted by commentators on the response of Mumbai’s residents to previous terrorist attacks.This most recent attack will surely lead to even more stringent security, as 26/11 did before it. But as Mr. Chidambaram himself pointed out, you cannot lock down every inch of a publicly used commercial space in a democracy such as India.Nor is it correct to say that the Indian security establishment hasn’t reacted to the threat of terrorism. Mr. Chidambaram, a former finance minister, is certainly aware of the relationship between increased insecurity and a dampening of India s economic prospects.Regardless, the tragic reality is that there are likely to be more incidents in the future and this is something that everyone, including investors at home and abroad, are going to factor in.Israel, with perhaps the best domestic security and intelligence establishment in the world, has not been able to wipe out the threat of terrorism. And as the studies have shown, Israel has paid an economic price.The threat of future terrorism, both in terms of quantity and intensity, more likely than not, is going to be a negative factor weighing on India’s long-term growth.Rupa Subramanya Dehejia writes Economics Journal for India Real Time, http://www.cheaptomsshoesoutletstor.com - toms shoes coupon . You may follow her on Twitter @RupaSubramanya. Add a Comment Error message Name We welcome thoughtful comments from readers. Please comply with our guidelines, http://www.cheaptomsoutlet0.com - toms the shoes . Our blogs do not require the use of your real name. Comment Comments (3 of 3) View all Comments 5:22 am July 17, 2011 Shahidur Rashid Talukdar wrote: Terrorism has a huge economic cost. One or two incidences may not affect
Related articles:
- http://www.sodeng365.com/bbs/forum.php?mod=viewthread&tid=436692 - toms outlet 2011 rohit wrote
- http://www.slot5588.com/forum.php?mod=viewthread&tid=342188 - toms the shoes s
- http://www.kkou.net/viewthread.php?tid=585845&extra=page%3D1&frombbs=1 - toms shoes sale hope it does the same for your as well. http
|