The effect of terrorist acts on the economic health of nations is the topic of a keynote address to be delivered by CMC associate professor of economics Brock Blomberg, during the EAPC/PFP and NDC Conference on Financial and Economic Aspects of the Fight against Terrorism, in Rome, Italy.
Blomberg, considered an expert on the topic, will headline the Oct. 14-15 panel discussion at the NATO Defense College, examining macroeconomics of terrorism.
"I am passionate about the topic because my research suggests that the weakest countries economically are also those that are most likely to experience the largest economic impact from conflict," Blomberg says. "That is not to say that these countries experience more conflict per se, but that they are more brittle in the presence of conflict."
Blomberg says it is somewhat self-defeating to try to predict the path and impact of terrorism 10 or even five years out. "The main point I want to make at the conference is that, rather than trying to predict where we are going, we should stress the importance of making the best policy decisions based on where we have been."
In the aftermath of Sept. 11, Blomberg says several good counter-measures were enacted to help financial markets. "However," he cautions, "there were some very counter-productive, counter-measures imposed on the airlines and insurance industries. My main point would be to try to encourage governments to make the right decisions, which can be extraordinarily challenging in an environment dictated by chaos and emotion."
Economic sectors he believes are particularly exposed to the effects of terrorist attack include tourism, energy industries, aviation, and insurance. "I want the discussion at the conference to encompass what can be learned, and what are the appropriate responses from an economic standpoint," he says.
The NATO Defense College, along with NATO Regional Economics and the Security Affairs Directorate are co-organizers of the event, which is expected to attract a widespread audience of policymakers, ambassadors, academics and government officials from the International Monetary Fund, various ministries of defense, NATO and EUROPOL.
Other scheduled panelists include experts from financial intelligence units, police departments, and prosecutors' offices.
Blomberg, who earned his master's and doctorate degrees from Johns Hopkins University, is the author of several monographs that encompass macroeconomics, political economy and international economics, and of numerous papers on the cause and effects of war and civil war.
"It's all part of my broader research agenda, analyzing the economic consequence of conflict," he says.