www.cengage.com/cj/white

Jonathan R. White

Rosemary ArwayHodges University

Chapter 3:Not Random Violence:

Modeling, Structuring and Financing Terrorism

Models of Terrorism Models of terrorism:

o Rural:▪ Guerilla warfare (Cuban Revolution, Che Guevara Revolution)

▪ Revolution starts with poor peasants that organize into isolated groups, which form guerilla columns, and finally organize into army

o Urban▪ Fanon: mental illness was a result imperialism, colonized

nations practice terrorism against colonial masters

▪ Marighella: the basis of revolution is guerilla and unorganized violence → governmental repression → massive uprising in response to oppression → toppling of government

o Insurrection▪ Marighella

An American Understanding of Insurgency

Re-evaluation of American strategy:o Viet Nam experience (averse to enter a war without

clear objectives)o Insurgencies represent a new mix of operations

and tactics that become possible with the advance of technology and globalization.

o It is impossible to fight insurgencies with military tactics:▪ Insurgences control information.▪ Insurgences operate with global communication.▪ Insurgences incorporate technological weapons.▪ Insurgences require few personnel.

Counter-insurgency forces need to be massive because:o they must enforce laws

o they also must form a partnership with a host of other agencies

o they must develop networks of organizations

Security forces must follow the model of community policing

Insurgencies developed at the end of the Cold War as various tribal, national, ethnic and religious groups

Insurgencies depend upon social and support networks

An American Understanding of Insurgency

Changing Dynamics and Structures

After WW II, terrorist groups tended to follow the IRA model of small units or cells.o Cells are the basic units of traditional terrorist

organizations.o Each cell has its own mission and operates without

knowledge of other cells in the area.

Burton: o Two basic structure of terrorist subunits:

▪ Cells – specialized with 4 to 6 people; may be tactical or intelligence.

▪ Columns – created from groups of cells; semiautonomous conglomeration of cells with a variety of specialties with a single command structure.

Changing Dynamics and Structures Around the 1990s large terrorist groups

developed more dynamic methods of organization.o Fraser and Fulton:

▪ Groups employ variations of command and control structures

▪ Typical organization is arranged in a pyramid▪ Hierarchical structure of terrorists groups is divided

into four levels:• Top level is the smallest level and is responsible for

command.• Second level is the active cadre• Third level, second largest and most important, is the

active supporters.• Fourth level, largest category is the organization’s

passive supporters.

Umbrella Organizations and Modern Piracy

Legitimate groups form umbrellas under which terrorist groups could operate.o Several small pyramids gather under a sheltering

group that:▪ manages supplies ▪ obtains resources ▪ creates support structures ▪ gathers intelligence

Terrorist action on the High Seaso A seemingly legitimate business (sheltering

organization) provides cover for pirates (the pyramid organization) while denying all connection with illegal activity.

Virtual, Chain, and Hub Organization

RAND Corporation identifies several other types of new organizational styles.o Virtual organizations: created through

computer and information networkso Chain organizations: small groups linked by

some type of communicationso Hub organization: centralized group with

semiautonomous groups supported in other regions

Managing Terrorist Organization

Terrorists need to organize like any other group:o Groups require managemento Hierarchical groups use cell structure and

top-down managemento Small groups in networks are more

autonomouso Management and other administrative

functions are hampered by the need for secrecy

Managing Terrorist Organization

Terrorist groups experience special organizational problems:o Secrecyo Decentralizationo Trainingo Internal disciplineo Gaining immediate tactical support for

operations

Group Size and Campaign Length Gurr:

o Group size:▪ Most terrorist actions involve only a few people.▪ Large groups or networks are more effective than

smaller ones.▪ Majority of successful groups embrace doctrines such

as nationalism.

o Campaign Length:▪ Terrorism is short-lived.▪ Most terrorist campaigns end within 18 months of the

initial outburst of violence.

Group Size and Campaign Length

Implications of Gurr Analysis:o Most terrorist organization are small,

short-lived operations which are law enforcement problems.

o If terrorism is a result of popular social issue, sympathizers can enhance the power of the group.

o Strong support for a group is more important than the actual number of operatives.

Group Size and Campaign Length

Hewitt reflects Gurr’s position:o Small groups do not have resources to damage an

opponent over an extended length of time.o Terrorist campaigns are more important than

isolated acts of terrorism.o Terrorist campaigns demand expanded political

responses.o Large terrorist organizations accounted for the

majority of the terrorism.o Large terrorist organizations can bring change in

government politics.

Group Size and Campaign Length

Analyst Livingstone describes terrorism as “warfare on the cheap.” o State Sponsorship

▪ Nation could support a terrorist group (Hezbollah)▪ State support automatically creates a large group

Scheuero If state sponsorship and failed state

approaches are applied to Islamic militants, it will be impossible to understands both the organization’s characteristics and growth of al Qaida and related groups.

Financing Modern Terrorism

It takes money to fund organizations, and resources to support operations.

Adams:o The appropriate method of attacking terrorism will be

stopping of the flow of money.o A terrorist operation does not cost a lot of money.o The overall budget for a terrorist operation is quite

high. The financial investigative debate:

o Major counterterrorism strategies should be aimed at waging “financial warfare” with financial weapons.

o The National Strategy for Combating terrorism endorses this approach by targeting two areas: ▪ The source of financing▪ Mechanism use to transfer money

Importance of Financing

Effective counterterrorist policy involves strategic efforts to deny fiscal resources to terrorists.

Arguments are made, favorable and unfavorable, concerning the use of finances as a weapon.o Financial strategy against terrorism will reduce

violence.o Working in an underground economy, terrorists are

immune from formal government sanctions.

Importance of Financing

Critique:o Financial warfare will not be effective

because terrorists do not respond to formal controls, but participate in undergrad economies.

o It is relatively easy for terrorist groups to hide their assets.

o However, targeting flow of money may lead to important discoveries about terrorist groups and plans.

Underground Networks and Organized Crime

Three major categories: o The unlawful raising of funds

▪ Robbery, Fraud, Larceny, Smuggling, Dealing in contraband, Forgery, Counterfeiting, Identity theft, Extortion and protection rackets

o The unlawful distribution of fundso The formal regulated economyo Economic targeting as force multiplier

Terrorists raise funds through traditional criminal methods and exchange resources in underground networks.o The differentiating factor between terrorism and

traditional crime is motivation.

Underground Networks and Organized Crime

Terrorists around the world use a variety of criminal methods to raise funds.o Middle Eastern terrorists engage in smuggling

and document fraud.o Central Asian terrorists trade illegal arms,

launder money, and distribute drugs.o Latin American terrorism is tied to drug

production and public corruption.o U.S. domestic terrorists engage in fraud

schemes and robberies. ▪ International terrorists also engage in fraudulent

activities in America.

Underground Networks and Organized Crime

Underground networks exists not only in the dimension terrorists/criminals, but also terrorists/terrorists, and terrorists/criminals/terrorists.

International linkages – the nexus of criminal syndicates – that exists between various terrorists group were best demonstrated in the case of the Japanese Red Army group in 1972:o The unit (Rengo Segikun) composed of Japanese citizens…

o that have been trained in North Korea…

o picked up funds in West Germany…

o for further training in both Syria and Lebanon…

o picked up its arms and ammunition in Italy…

o and then attacked the Lod Airport in Israel on behalf of the Popular Front for the Liberation of Palestine.

Legal sources of Funding

In addition to traditional crime, terrorists raise money through legal operations.

Frequently employed legal activities include:o Soliciting contributions

o Operating businesses

o Creating charities

o Running non-government organizations

o Using wire transfers

o Forming or using banks

o The Hawala system

Legal sources of Funding: Charities

Terrorists set up phony charities or skim proceeds from legitimate organizations.

Charities are difficult to investigateo Formed overseaso State supportedo May hide true purposeo Supported by legitimate businesso Difficult to infiltrate

▪ Benevolence International Fund▪ Formed in U.S. & received tax-exempt status from IRS

Non-traceable Funding: Hawala System

Hawala system is a legitimate means of transferring money without using money.o Originated in Chinao Based on long term trust relationships and

knowledge that each dealer is reliable for all debts.

Advantages of the Hawala system:o Money moves with no record.o Money crosses international borders with ease.o Money can be easily bartered for contraband.o Tax records do not exist.

The Political Economy of Terrorism

Globalization:o Napoleoni states that globalization created

pockets in the world where failed states are left to govern with little economic and political power.▪ Terrorist groups grow in such places.▪ Terrorist group acts like a government in such a

places.

Terrorist organizations are strong enough to resist the state and grow running their own underground economies.

Macroeconomic Theories

Counterterrorism policies should be aimed at providing the world’s populace with economic stability, opportunity, and participation in the mainstream economy.

Economic policies to counter terrorism:o Supporting states in threat of failure.

o Providing opportunities for people to participate and benefit from economic systems.

o Eliminating underground economic networks.

The Narco-terrorism Debate Idea of narco-terrorism is a controversial term

linking drugs to terrorism in one of two ways:o Drug profits are used to finance terrorism.

o Drug gangs use terrorism to control production and distribution networks.

Proponents:o Terrorists use drugs to finance operations.

Opponents:o Narco-terrorism is a convenient term for appealing to

public emotions, which gives governments more power.

o Use of the word narco-terrorism is an attempt to take political advantage of the fear of terrorism.