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Sultans of Terror

The financial side of terrorism has not been given due importance in the literature. This paper analyses the implications of the financial side of terrorism for the relationship between the incidence of terrorism and affluence. It is assumed that the number of recruits who volunteer to join a terrorist outfit is declining in the level of affluence. Yet the actual incidence of terrorism does not mimic this relationship. This is because of the financial side of terrorism and its implication that the incidence of terrorism is determined not just by the willingness to terrorise but also the ability to terrorise.