Bayale, Nimonka
What fiscal policy should be adopted to tackle the increasing terrorism in the Sahel?
- 2023.
13
This article proposes a fiscal policy strategy that could help strengthen the fight against terrorism in the Sahel countries. To that end, it reviews the current state of terrorism and applies econometric models to analyze the various factors that contribute to this phenomenon. The results identify, in particular, increases in military spending as a means to tackle terrorism. For example, military expenditure may help to equip the defense and security forces. In this respect, Hansen [1999] threshold model estimation shows that an effective fiscal policy strategy against the increase in terrorist attacks would consist, for the most exposed countries, in progressively aiming for military expenditure of at least 11.6 percent of their respective total budgets. Furthermore, given the complementary relationship between military spending and education and health spending, military spending should be accompanied by appropriate budget allocations for the aforementioned sectors to maximize its impact against terrorism attacks. JEL Codes: E62, D74, H50, H65.