Financing Wars on Terrorism and Iraq; Strategic Insights: v.2, issue 1 (January 2003)

Abstract

One of the key questions about the current U.S. war against terrorism and rogue states remains largely unanswered: The extent to which defense/security expenditures will have to expand to meet the threat. Clearly, the ultimate cost will depend upon events that are still unfolding: Will the United States be able to maintain the peace in Afghanistan with the current level of effort? Will the remaining terrorist cells engage in further major acts of violence? Will the United States attack Iraq? If the attack occurs, how is that conflict likely to develop in terms of the intensity and duration? The time and resources required for reconstruction and nation building? The added amount of foreign aid to affected countries?