Thomas Baumert

The Economic Cost of March 11: Measuring the Direct Economic Cost of the Terrorist Attack on March 11, 2004 in Madrid

This article attempts to measure the direct costs that the terrorist attacks of 3/11 had on the economy of the region of Madrid. The evaluation has been made applying conservative criteria, and the results obtained have to be considered as minimum. The result indicates that the terrorist attacks caused a loss of nearly 212 million euros to the regional economy of Madrid, equivalent to 0.16 percent of the regional GDP (0.03 of the national GDP). This confirms that the immediate economic dimension of a terrorist attack such as the one of 3/11—apart from human catastrophic consequences—is relatively low.

Hit the Core or Weaken the Periphery? Comparing Strategies to Break the Circle of Violence with an Embryonic Terrorist Group: The Case of Galician Resistance

ABSTRACT This article studies whether the action-reaction model holds on an “embryonic” terrorist group like Galician Resistance (REGA). After presenting an overview of REGA’s history, structure, financing, terrorist campaigns, and the police measures adopted against them, the text empirically contrasts whether deterrence is an efficient measure in reducing an incipient terrorist group’s actions. Our results show that deterrence does in fact reduce the number of attacks when aimed at the group’s periphery. However, it causes a backlash of new attacks when aimed at the group’s core. In addition, we prove that an increase in the number of attacks also causes a reaction by police forces and a higher number of detentions of core members. Our results give some meaningful insights into the design of counter-terrorism strategies aimed against “embryonic” groups.