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Terror Incorporated: Tracing the Dollars Behind the Terror Networks
In Terror Incorporated, Loretta Napoleoni maps out the arteries of an international economic system that feeds armed groups the world over. Chasing terror money, she takes the reader from CIA headquarters to the smuggling routes of the Far East, from the back rooms of Wall Street to hawala exchanges in the Middle East.
Napoleoni describes the "New Economy of Terror," "a fast-growing international economic system with a turnover of about $1.5 trillion [that] is challenging Western hegemony." It is made up of illegal businesses such as arms and narcotics trading, and oil and diamond smuggling, as well as charitable donations and legal profits. Napoleoni reveals the interdependency between economies run by armed groups and western economies, and provides a pioneering examination of the system and methods by which international terrorism is financed.
Napoleoni describes the "New Economy of Terror," "a fast-growing international economic system with a turnover of about $1.5 trillion [that] is challenging Western hegemony." It is made up of illegal businesses such as arms and narcotics trading, and oil and diamond smuggling, as well as charitable donations and legal profits. Napoleoni reveals the interdependency between economies run by armed groups and western economies, and provides a pioneering examination of the system and methods by which international terrorism is financed.
352 pages, Paperback
First published January 1, 2003
18 people are currently reading
382 people want to read
About the author
Loretta Napoleoni
24 books85 followersLoretta Napoleoni is the bestselling author of Maonomics, Rogue Economics, Terror Incorporated and Insurgent Iraq. She is an expert on terrorist financing and money laundering, and advises several governments and international organizations on counter-terrorism and money laundering. As Chairman of the countering terrorism financing group for the Club de Madrid, Napoleoni brought heads of state from around the world together to create a new strategy for combating the financing of terror networks.
Napoleoni is a regular media commentator for CNN, Sky and the BBC. She is among the few economists who predicted the credit crunch and the recession, and advises several banks on strategies to counter the current ongoing crisis. She lectures regularly around the world on economics, terrorism and money laundering.
Loretta is also a columnist and writes about terrorism, money laundering and the economy for several European financial papers including El Pais, The Guardian and Le Monde. In the 1990s she was among the first journalists to interview the Red Brigades, the Italian Marxist armed group. She subsequently spent three years interviewing members of other terrorist organizations. In 2003 she interviewed followers of al Zarqawi in both Europe and in the Middle East.
Born and raised in Rome, in the mid 1970s she became an active member of the feminist movement and a political activist. She was a Fulbright scholar at Johns Hopkins University’s Paul H. Nitze School of Advanced International Studies in Washington DC and a Rotary Scholar at the London School of Economics. She has a PhD in economics and a Masters of Philosophy in international relations and one in terrorism.
She began her career as an economist, working for several banks and international organizations in Europe and the US. In the early 1980s she spent 2 years in Budapest at the National Bank of Hungary working on a project for the convertibility of the florin that ten years later became the blueprint for the convertibility of the rouble. In he 1980s she worked for a UK registered Russian Bank, Moscow Narodny Bank, which acted as the foreign branch of the Bank of Foreign Trade. This position afforded her a unique insight into the Soviet economy. In 1992 she produced the final documentation for the structure of the International Bank for Reconstruction and Development, IBRD. She teaches a course at Judge Business Schools, Cambridge.
Napoleoni ’s books include Modern Jihad (Pluto Press, London, 2003); Terror Inc. (Penguin, London, 2004); Insurgent Iraq (Seven Stories Press, New York, 2005); Terror Incorporated (Seven Stories Press, New York, 2005); Rogue Economics (Seven Stories Press, New York, 2008); Terror and the Economy (Seven Stories Press, New York, 2010) and Maonomics: Why Chinese Communists Are Better Capitalists Than We Are (Seven Stories Press 2011) . Her latest book is the best seller Islamist Phoenix (Seven Stories Press, New York, 2014). “The IS doesn’t want to destroy. They want to build the 21st century version of the Calliphate and that is what makes them so dangerous”. Her books are translated into 18 languages including Chinese and Arabic. She lives in London and in the US with her husband and their four children.
Napoleoni is currently working at a book linking the post 9/11 Western foreign policy, the kidnapping and refugee crisis. Based upon original interviews with former hostages, negotiators, member of the crisis unit, kidnap owes and refugees, the book will unveil how post 9/11 Western foreign policy is responsible for the birth of a new breed of criminal and terrorist engaged in kidnapping of Westerners and trafficking migrants. Napoleoni defines these people Merchant of Men.
Napoleoni is a regular media commentator for CNN, Sky and the BBC. She is among the few economists who predicted the credit crunch and the recession, and advises several banks on strategies to counter the current ongoing crisis. She lectures regularly around the world on economics, terrorism and money laundering.
Loretta is also a columnist and writes about terrorism, money laundering and the economy for several European financial papers including El Pais, The Guardian and Le Monde. In the 1990s she was among the first journalists to interview the Red Brigades, the Italian Marxist armed group. She subsequently spent three years interviewing members of other terrorist organizations. In 2003 she interviewed followers of al Zarqawi in both Europe and in the Middle East.
Born and raised in Rome, in the mid 1970s she became an active member of the feminist movement and a political activist. She was a Fulbright scholar at Johns Hopkins University’s Paul H. Nitze School of Advanced International Studies in Washington DC and a Rotary Scholar at the London School of Economics. She has a PhD in economics and a Masters of Philosophy in international relations and one in terrorism.
She began her career as an economist, working for several banks and international organizations in Europe and the US. In the early 1980s she spent 2 years in Budapest at the National Bank of Hungary working on a project for the convertibility of the florin that ten years later became the blueprint for the convertibility of the rouble. In he 1980s she worked for a UK registered Russian Bank, Moscow Narodny Bank, which acted as the foreign branch of the Bank of Foreign Trade. This position afforded her a unique insight into the Soviet economy. In 1992 she produced the final documentation for the structure of the International Bank for Reconstruction and Development, IBRD. She teaches a course at Judge Business Schools, Cambridge.
Napoleoni ’s books include Modern Jihad (Pluto Press, London, 2003); Terror Inc. (Penguin, London, 2004); Insurgent Iraq (Seven Stories Press, New York, 2005); Terror Incorporated (Seven Stories Press, New York, 2005); Rogue Economics (Seven Stories Press, New York, 2008); Terror and the Economy (Seven Stories Press, New York, 2010) and Maonomics: Why Chinese Communists Are Better Capitalists Than We Are (Seven Stories Press 2011) . Her latest book is the best seller Islamist Phoenix (Seven Stories Press, New York, 2014). “The IS doesn’t want to destroy. They want to build the 21st century version of the Calliphate and that is what makes them so dangerous”. Her books are translated into 18 languages including Chinese and Arabic. She lives in London and in the US with her husband and their four children.
Napoleoni is currently working at a book linking the post 9/11 Western foreign policy, the kidnapping and refugee crisis. Based upon original interviews with former hostages, negotiators, member of the crisis unit, kidnap owes and refugees, the book will unveil how post 9/11 Western foreign policy is responsible for the birth of a new breed of criminal and terrorist engaged in kidnapping of Westerners and trafficking migrants. Napoleoni defines these people Merchant of Men.
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Displaying 1 - 26 of 26 reviews
November 11, 2016
A short notice - I won't care if I don't exhibit myself as a politically correct person because politics around the world has given birth to terrorism! And, that must be exposed!
Loretta has rightly subtitled the book - tracing the dollars behind the terror networks. This is not a hidden story that terrorism has always been used as alibi - to hide economic, political and institutional failures in the past as well as for usurping the territories of others. We all know what happened in Russia and then in Iraaq and now in Syria. Indians have been facing the curse of being neighbours of Pakistan. The question is whether terrorism is funded by mainstream institutions/establishmnets or not? And the answer has been presented by the author of this book very wonderfully!
I got this book last year and read it with great curiosity. I learned about some facts which will blow your mind; believe me! If you want to know the factory of modern jihad and the fuel that runs it, Loretta has the answers for you.
Loretta has rightly subtitled the book - tracing the dollars behind the terror networks. This is not a hidden story that terrorism has always been used as alibi - to hide economic, political and institutional failures in the past as well as for usurping the territories of others. We all know what happened in Russia and then in Iraaq and now in Syria. Indians have been facing the curse of being neighbours of Pakistan. The question is whether terrorism is funded by mainstream institutions/establishmnets or not? And the answer has been presented by the author of this book very wonderfully!
I got this book last year and read it with great curiosity. I learned about some facts which will blow your mind; believe me! If you want to know the factory of modern jihad and the fuel that runs it, Loretta has the answers for you.
April 11, 2017
Loretta is right in exposing that terrorism is the byproduct of politics around the world. However, she poses to be authority on this subject, which I find a little ambiguous! Rest all is fine with her works. I have read most of her works and Modern Jihad is even blunt than the others.
March 19, 2017
A piece of solid work, Loretta Napoleoni has managed to shape our understanding of international terrorism, its birth and thriving nature through analysis of their funding activities. The title of the book is apt – she breaks down and analyzes the source of funding of many of the world’s armed militias. Many groups are featured in the book – from the IRA, Basque groups, Islamist militants, African rebels, the FARC, and etc. What is fascinating is how the situation today was shown by Napoleoni to be caused by failed foreign policy outcomes from Western powers. Drawing parallels between the Crusades, and modern day terrorist activities – Napoleoni makes the argument that the motivations of the Crusades are inherently similar to modern terrorism - she manages to bring clarity to the motivations of today’s terror groups. Through tracing their funding activities, she reveals how the force outwardly preaching stopping extremism and terrorism are at times the very propagators enabling them. The volume is a short, sharply worded book which turned out to be an eye-opening read bringing a robust understanding of the subject matter.
September 13, 2015
Solid stuff. At times Napoleoni's chapters get a touch of the fact explosions, but the general point is clear by the end. She lays out the historical development that led to contemporary terrorist movements (the funding of groups and client states by the cold war superpowers; their withdrawal and the consequent internationalization of terrorist and separatist movements and their economies; the ideal conditions for such groups being failing states, in which they can set up "shell-states," which fulfill many of the functions of an official state, e.g., taxation and public services).
My only complaint is that she tends sometimes toward conspiracy thinking about the west; or, on the other hand, comes close to suggesting that terrorist groups are motivated primarily by money. In both cases, she gives too much credit to the actors involved, I think. This is the ideal place to start if you want to learn about terrorist groups, either specific or in general.
My only complaint is that she tends sometimes toward conspiracy thinking about the west; or, on the other hand, comes close to suggesting that terrorist groups are motivated primarily by money. In both cases, she gives too much credit to the actors involved, I think. This is the ideal place to start if you want to learn about terrorist groups, either specific or in general.
January 17, 2021
The superb study! It changed my perception of the current division of states into democracies and those supporting terrorism. It appears that some of the current democracies were the first to support terrorism (!!!), should the local authorities object to any policies of the democratic states. The most stunning is that these 'democracies' involved themselves in the trafficking of drugs and other illicit activities in order to finance terrorism. Is the current terrorism the by-product of colonial policies of the developed states to suppress opposition in the developing ones?
November 15, 2010
L’obiettivo del terrorismo, qualsiasi terrorismo, è fare sentire insicuro e fragile il suo obiettivo. Come dimostrano i recenti avvenimenti, ci riesce benissimo.
Ma c’è qualcun’altro che lavora fervidamente per farci sentire sempre più spaventati: i governi che dicono di volerci proteggere.
Come opporsi a questo dilagare della paura che paralizza la ragione? Loretta Napoleoni (economista esperta di criminalità nota ai lettori di Internazionale) e Ronald J. Bee pensano che i numeri siano un ottimo modo per riuscirci.
Ma c’è qualcun’altro che lavora fervidamente per farci sentire sempre più spaventati: i governi che dicono di volerci proteggere.
Come opporsi a questo dilagare della paura che paralizza la ragione? Loretta Napoleoni (economista esperta di criminalità nota ai lettori di Internazionale) e Ronald J. Bee pensano che i numeri siano un ottimo modo per riuscirci.
Numeri, fatti e statistiche al posto di supposizioni, spauracchi e leggende. Per dimostrare che le nostre probabilità di cadere vittime di un attentato di matrice terroristica sono davvero minime. Se è il caso, anche facendoci sorridere delle nostre paure:
Con la sola eccezione dei dirottatori dell’11 settembre, il terrorismo islamico è caratterizzato da una grande mancanza di professionalità. [...] come la cellula marocchina al Qaeda che si è persa nella Medina di Rabat mentre andava a farsi esplodere davanti all’ambasciata statunitense; o i “baby terroristi”, adolescenti musulmani delle Midlands brittaniche, scappati di casa per diventare martiri, che ogni sera chiamavano le madri per rassicurarle sul loro stato di salute.
Napoleoni e Bee ci spiegano nel dettaglio che per fabbricare un ordigno nulceare occorrono conoscenze, materiali e risorse energetiche tali da rendere l’operazione impraticabile per un gruppo terroristico e decisamente poco conveniente per uno stato canaglia.
Se vogliamo spaventarci davvero, possiamo sempre osservare i dati sulla crescita della criminalità comune in Occidente nell’ultimo decennio e osservare il danno della strategia della paura dei nostri governi che hanno distolto più che ingenti risorse dalla lotta contro la criminalità per destinarle al terrorismo.
Ma lo hanno fatto per farci sentire più sicuri. Certo, con la crisi che alita sui nostri mutui e l’erosione della spesa pubblica, ci sentiamo molto più sicuri…
Ciò non toglie, come dimostrano i fatti, che il terrorismo internazionale, di qualsiasi matrice, continua a operare in vaste zone del mondo. Quello che spiegano i due autori è che se continuiamo così, costruendo e ingigantendo il mito del nemico invece di affrontare le cause che lo sostengono, non faremo altro che alimentarlo. E allora sì, che avremo ottime ragioni per avere paura.
March 1, 2018
Extremely well written and insightful book. One of the really interesting things I learnt from this was made right at the start - Napoleoni made the point that particularly prior to 9/11 terrorism was not understood of as an act of war, rather as a crime. After 911, Bush was important in developing this understanding. Really interesting to someone who has grown up and seen the effects of the 'war on terror' started by Bush and endorsed by Blair.
Although I already knew that states sponsored activities in other states during the Cold War in order to promote their ideology, before this book I had never fully appreciated that a lot of this lead to essentially state sponsored terrorism. Notably the US actions in Afghanistan and its support of the Mujehadin led to the rise of Osama Bin laden. It did this through fairly reprehensible means too - by levying a tax on opium, which led to an increase in production soon meaning that the area became biggest heroin producer in the world. US hid its involvement so well that even Osama Bin Laden did not know about it. On reflection, it is almost not surprising how much resentment has built up towards the west when this is considered.
The author makes a startling comparison of one of OBL's speeches with that of the Pope's back in the time of the Holy war and Christian crusades of a thousand years ago, for instance they both contain allusions to decaying economies. The theme of the book being the economics of terror networks, the author posits that OBL was a skilled businessman who ran a huge financial conglomerate.
The explanation of how state-shells become breeding grounds for terror activities is also fascinating. Money made by crime, smuggling, kidnapping, oil smuggling etc. When it is a state it is also very hard to intervene because can be construed as act of war. Author says that state sponsoring of Cold War no longer common, now instead there is asset transfer - for instance Iraq UN aid trucks subverted for military use.
Overall I would recommend this book only to academics or those with a serious interest - it is no light read!
Although I already knew that states sponsored activities in other states during the Cold War in order to promote their ideology, before this book I had never fully appreciated that a lot of this lead to essentially state sponsored terrorism. Notably the US actions in Afghanistan and its support of the Mujehadin led to the rise of Osama Bin laden. It did this through fairly reprehensible means too - by levying a tax on opium, which led to an increase in production soon meaning that the area became biggest heroin producer in the world. US hid its involvement so well that even Osama Bin Laden did not know about it. On reflection, it is almost not surprising how much resentment has built up towards the west when this is considered.
The author makes a startling comparison of one of OBL's speeches with that of the Pope's back in the time of the Holy war and Christian crusades of a thousand years ago, for instance they both contain allusions to decaying economies. The theme of the book being the economics of terror networks, the author posits that OBL was a skilled businessman who ran a huge financial conglomerate.
The explanation of how state-shells become breeding grounds for terror activities is also fascinating. Money made by crime, smuggling, kidnapping, oil smuggling etc. When it is a state it is also very hard to intervene because can be construed as act of war. Author says that state sponsoring of Cold War no longer common, now instead there is asset transfer - for instance Iraq UN aid trucks subverted for military use.
Overall I would recommend this book only to academics or those with a serious interest - it is no light read!
November 16, 2025
Después de leer el libro, queda claro que en un momento dado la administración y elite de EEUU decidió que era bueno apoyar a fundamentalistas radicales islámicos con el fin de debilitar a Estados de izquierdas afines a la URSS en África y Asia.
¿Ha sido esta una sabia decision? No estoy seguro pero no lo creo, y aún es muy temprano para ver las consecuencias.
¿Hasta que punto Al-Qaeda no es otro tentáculo del IMPERIO estadounidense? ¿Cuál es su grado de interdependencia?
Lectura interesantísima.
¿Ha sido esta una sabia decision? No estoy seguro pero no lo creo, y aún es muy temprano para ver las consecuencias.
¿Hasta que punto Al-Qaeda no es otro tentáculo del IMPERIO estadounidense? ¿Cuál es su grado de interdependencia?
Lectura interesantísima.
November 28, 2020
Gran libro para comprender la geopolítica del terrorismo. No se basa únicamente en el fundamentalismo islámico, parte desde las raíces de los grupos armados originados en la guerra fría hasta el 11-S aproximadamente. Si bien el libro es "obsoleto" debido a que la actualidad cambia y avanza mucho más rapido de lo que la autora pudo prever, no deja de ser un gran punto de vista de la situación en los años 90.
June 28, 2018
Indeed a great book! I read it a few months ago as I found a copy in Delhi, CP. It was interesting to read such a well-researched book.
May 10, 2019
Such a wonderful book that traces out the terror funding in the world. Moreover, it exposes the political alignment of some political groups with the terrorist.
October 13, 2019
A well-written book that exposes the exposed. I would love reading more books like this had the authors more guts and less care of political correctness.
June 29, 2024
Den är lite daterad och det var väl mycket fokus på det ekonomiska. Det var väntat men ändå lite segt att läsa många sidor om sånt.
March 18, 2015
If you are thinking to yourself, I am insufficiently angry about the world, perhaps something could stoke the fire of my righteous anger? This might do it.
Despite being a pretty small, thin volume, this book covers a lot of ground - the Crusades, Iran-Contra, the evolution of self-funding. Groups from all over the world are discussed - narcoterrorists in Colombia, Islamic extremists, the IRA, Basque groups. My one minor complaint is that there's *so much* in here that it's a little hard to keep track of it all. (But there is a nice index of terror groups, so at least you don't have to get flagged for searching the names to remember which one was which.)
Depressing and incendiary, particularly the bits about the complicity of the American government and financial systems. Sigh. Worthwhile read though.
Despite being a pretty small, thin volume, this book covers a lot of ground - the Crusades, Iran-Contra, the evolution of self-funding. Groups from all over the world are discussed - narcoterrorists in Colombia, Islamic extremists, the IRA, Basque groups. My one minor complaint is that there's *so much* in here that it's a little hard to keep track of it all. (But there is a nice index of terror groups, so at least you don't have to get flagged for searching the names to remember which one was which.)
Depressing and incendiary, particularly the bits about the complicity of the American government and financial systems. Sigh. Worthwhile read though.
March 1, 2016
Napoleoni did an incredible job of establishing herself as an authority on the financing of terrorism and its integration with the global economy. The book is challenging to get through with limited interspersed narratives and stories surrounded by gluts of facts, figures, historical analyses, statistics, names, dates, etc. While I don't consider myself a novice in the world of financial crime, money laundering, and terror finance, this book really stretched me and showed me how much more I still have to learn on the global economy, markets, and the relationship between the white, black, and grey markets. My favorite aspect of the book is how it challenged my own presumptions regarding the concept of state sponsors of terror and giving me insight into how policy is formed in Washington and the repercussions that occur down the line.
August 29, 2015
Absolutely stunning book. Relevant to everyone who wants to understand the economics of terrorism and its deep roots in the post Soviet era vaccuum. This is the second book I've read by Napoleoni, and I continue to be amazed by the level of research she undertakes. If you are curious, but don't have time to commit to the whole book, I recommend reading the chapter on terror jihad and the Islamic crusades (#8). Napoleoni reveals that what we are witnessing today with the surge or terrorism is really a historical deja-vu. Much like in the Christian Crusades of the Middle Ages, deft leaders use religion to mask political/economic motives, manipulate the disenfranchised and mobilize them for war.
A must read.
A must read.
This entire review has been hidden because of spoilers.
January 2, 2011
My eyes are wide open. Napoleoni is telling how every single country in Europe,
Asia
South America is involved now in the business of terrorism. A trillion dollar business. She traced the dollars. She named what names she could.
Sometimes she tried to protect American Interests, but we got the idea.
This book puts a real time spin on conspiracy theorists. This is a conspiracy involving Afghanistan, Pakistan, in particular because of the Poppy which gets converted to heroin.
Wow. Am sad, awake and ready..ready to set goals- am outta here.
Asia
South America is involved now in the business of terrorism. A trillion dollar business. She traced the dollars. She named what names she could.
Sometimes she tried to protect American Interests, but we got the idea.
This book puts a real time spin on conspiracy theorists. This is a conspiracy involving Afghanistan, Pakistan, in particular because of the Poppy which gets converted to heroin.
Wow. Am sad, awake and ready..ready to set goals- am outta here.
July 2, 2015
I heard the author lecture at a bookstore in lower Manhattan, and although I initially hesitated buying her book - the beginning of her lecture began too "soft" - I later broached harder economic questions, which she deftly answered. Impressed, or at least positively engaged, I bought the book. I'm finding it well written and well researched, and I'm surprised that it weaves together much common, but fragmented, knowledge into a cohesive review of terrorist financing, without the partiality common to politically/ideologically oriented analyses.
April 16, 2017
Una obra de referencia en el campo del terrorismo, con referencias sólidas y una argumentación agradable bajo un hilo conductor histórico. Este libro detalla la evolución del terrorismo desde las guerras por poderes, el patrocinio estatal hasta su privatización y establecimiento de estados embrión. Estos son los responsables de la Nueva Economía del Terror, un sistema económico que les garantiza independencia en relación con el sistema capitalista mundial.
February 5, 2012
Eye opening. I've read many books about terrorism and its modern roots. But this book should be required for just about everyone. ~230 pages of pure and shocking truth. Well-annotated so you can check her sources for yourself. I did on a few, and she is right on. This book is so troubling. Not much to say other than that, really.
January 25, 2010
An excellent, reasonably objective look at the business of global terrorism. Leaving ideology aside, the book provides a cogent and thoughtful explanation of the links between enterprise (both legal and criminal) and the "new economy" of global terror.
June 17, 2009
The economics of terrorism.
April 2, 2012
i am gob-smacked. recommended read for anyone who cares about "foreign aid". forensic accountant investigates terror organisations and the results in this book are most sobering.
January 8, 2013
an exciting introduction to the world of radical islamic movements from a proficient writer...
June 13, 2013
Il libro si mostra come la controprova di una tesi (l'emergenza terrorismo) che secondo me non ha nemmeno i dati sufficienti per provare se stessa. Ne risulta un testo doppiamente convincente.
January 15, 2021
incredibly well researched and successfully unbiased
Displaying 1 - 26 of 26 reviews