Terrorism, Poverty and Financial Instability Essay (Critical Writing)

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International Relations

Terrorism and International Crime

Terrorism is the use of violence to instil fear in people. Terrorist activities, which are common around the world, can be eliminated through co-operation of the world powers. While some countries seek to apprehend those who perpetrate terrorist activities, other countries harbour and protect them. This conflict is not effective in the quest to ensure world security (Chadwick 25).

Terrorism is not a new phenomenon as it has been present throughout the history of humankind. However, different forms of terrorism are defined by the cause behind the act. Terrorist activities are perpetrated to compel the affected parties to comply with the demands of the terrorists.

Since the terrorists do not have enough resources to confront their enemies, they use a method of ambush and secrecy. In most cases, if the terrorist’s demands are ignored, the confrontation ends in a conflict. However, in other cases, the terrorists achieve their aim if their sole intention is to instil fear (Laqueur 16).

Global Poverty and Development

Poverty is a global problem with complex and intertwined adverse effects. In some situations, poverty has existed throughout the history of the concerned society. There is a great risk of conflict if the situation persists. Competition for resources in an unfavourable environment eventually results in armed conflicts.

Some of the conflicts in the developing countries caused by the instability and poverty in the third world countries. Thus, persistent poverty is a risk of political and social instability. Poverty is also a crisis since it presents a difficult situation (Townsend 54).

Co-operation among countries of the world creates a large free market for commodities. This facilitates distribution of wealth, and reduces the gap between the rich and the poor. The efforts to eradicate poverty should include formation of a specialised body to identify the poverty-stricken areas, and find an appropriate solution.

Combination of efforts by international bodies in an effort to eradicate poverty, gives them a greater power to deal with the situation. However, the great power and influence brought by the cooperation between agencies poses a political risk (Collier 32). This unified force can control the political course of a needy region. Since the political situation of a country affects generation of wealth, the power of the agencies may widen the gap between the rich and poor people.

Global Financial Instability

Global financial crises started in 2007 and continued for four years with mild responses from individual governments. When the financial recession died down in the year twenty twelve, the world’s economic activities are returning to normal after stabilisation of the capital markets. However, the current stability is at a risk of disruption by another financial crisis due to the lack of long-term solution to the crisis (Lomborg 37). Measures taken during the crisis were immediate counteractive measures to restore financial stability.

The world powers, which make up the G20, and lending organisations like the international monetary fund, cannot develop a solution to influence the world economy positively. This is because these institutions are committed to their own security and financial stability. The only solution to this problem lies with individual powers such as the United States, which can influence the world economy easily.

Their sound economic planning will reduce the chances of another global financial crisis. The continued investments of the governments in the private market are increasing insecurity of the global financial market (Acharya et al 25). Consequently, the government cannot regulate the capital markets when it has heavily invested in such schemes as the hedge funds.

Works Cited

Acharya, Viral V., and Matthew Richardson. Restoring financial stability: how to repair a failed system. Hoboken, N.J.: John Wiley & Sons, 2009. Print.

Chadwick, Elizabeth. Self-determination, terrorism, and the international humanitarian law of armed conflict. The Hague: M. Nijhoff, 1996. Print.

Collier, Paul. The bottom billion: why the poorest countries are failing and what can be done about it. Oxford: Oxford University Press, 2007. Print.

Laqueur, Walter. The new terrorism: fanaticism and the arms of mass destruction. New York: Oxford University Press, 1999. Print.

Lomborg, Bjørn. Global crises, global solutions. Cambridge: Cambridge University Press, 2004. Print.

Townsend, Peter, and David Gordon. World poverty: new policies to defeat an old enemy. Bristol: Policy Press, 2002. Print.

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