Difference between revisions of "Economic effects of anti-crime security measures"

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Urban security has a cost at the point of build or refurbishment, and typically, the benefits come later. This page attempts to introduce the possible types of benefits and the costs, starting with the costs.
  
Urban security has a cost at the point of build or refurbishment, and typically, the benefits come later. This page attempts to introduce the possible types of benefits and the costs, starting with the costs.
   
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===Costs of security===
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==Costs of security==
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===Direct (primary) costs of security===
 
There are several types of [[Security|security measures]]. Some of these measures involve monetary expenditures (e.g. locks, money safes, alarm systems, security guards, insurances, etc.), and others only involve [[Opportunity cost|opportunity cost]], such as the time required to take protective measures (e.g. training a guard dog, or avoiding a high crime area). Public spending on security measures could also involve investment in civilian matters such as education, prevention and protection programmes in addition to security-related spending on judiciary, police and military items<ref name="ftn37"> Source: OECD (2004). ''The Security Economy''. ISBN 92-64-10772-X</ref>.
  
There are several types of [[Security|security measures]]. Some of these measures involve monetary expenditures (e.g. locks, money safes, alarm systems, security guards, insurances, etc.), and others only involve [[Opportunity cost|opportunity cost]], such as the time required to take protective measures (e.g. training a guard dog, or avoiding a high crime area). Public spending on security measures could also involve investment in civilian matters such as education, prevention and protection programmes in addition to security-related spending on judiciary, police and military items<ref name="ftn37"> Source: OECD (2004). ''The Security Economy''. ISBN 92-64-10772-X</ref>.
   
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The magnitude of the [[Primary economic impact|direct (primary) costs]] of security measures is significant, but very difficult to quantify in financial terms. One of the main reasons for this is that a lot of expenditures on safety measures have multiple purposes and do not automatically translate into higher costs or spending.
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The magnitude of the [[Primary economic impact|direct (primary) costs]] of security measures is significant, but very difficult to quantify in financial terms<ref>One of the main reasons for this is that a lot of expenditures on safety measures have multiple purposes and do not automatically translate into higher costs or spending.</ref>. One of the main reasons for this is that a lot of expenditures on safety measures have multiple purposes and do not automatically translate into higher costs or spending.
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Examples of direct costs:
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* A Dutch study by SEO (2007)<ref name="ftn40"> SEO (2007). ''The cost of crime''. Commissioned by the Dutch Ministry of Security and Justice.</ref> states that preventive measures (including insurances) are primarily deployed to prevent property crimes and vandalism (83 percent of all registered criminal offences in the Netherlands). The measured total prevention costs for property crimes are estimated by SEO at almost 3 billion euro in 2005; The insurance costs at 275 million euro, and the insurance costs for vandalism at 178 million euro.
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* An internet survey of the costs of security related to organising the Summer Olympics, illustrates that these costs, increased from 2 to 3 percent in the nineties, to more than 6 percent for the Summer Olympics in Athens (2004)<ref name="ftn41"> Security costs for the Summer Olympics in Athens (2004) added up to USD 1.4 billion.</ref>. According to an article by The Guardian<ref name="ftn42"> The Guardian, December 5th 2011. ''London 2012 Olympics security costs almost double to £553m''.</ref>, the projected security costs for the 2012 London Olympics and Paralympics are estimated at GBP 553 million (± 5.7 percent of the total budget of GBP 9.3 billion). US Real estate studies suggest a sharp increase in the cost of security in privately owned buildings since 2001, covering items such as identity cards, scanners, security cameras and security personnel<ref name="ftn43"> Kinum, C. (2004). ''The Economic Impact of Heightened Security Measures on the Commercial Real Estate Market, Post 9/11''. AllBusiness.com.</ref>.
   
   
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The magnitude of the direct costs of security measures is significant, but very difficult to quantify in financial terms. One of the main reasons for this is that a lot of expenditures on safety measures have multiple purposes and do not automatically translate into higher costs or spending. An OECD study (2004)<ref name="ftn37"></ref> estimates the private security sector's global annual turnover at over USD 100 billion. The private sector in the US has an turnover of USD 40 billion a year (Lenain ''et al''., 2002). In Germany, the turnover of the private security sector is thought to be 4 billion euro and in France and the United Kingdom around 3 billion euro. According to Stevens (2004)<ref name="ftn39"> Stevens (2004) in: OECD (2004). ''The Security Economy''. ISBN 92-64-10772-X</ref>, the industry growth is outpacing economic growth worldwide with 7-8 percent annual growth.
  
The magnitude of the direct costs of security measures is significant, but very difficult to quantify in financial terms. One of the main reasons for this is that a lot of expenditures on safety measures have multiple purposes and do not automatically translate into higher costs or spending. An OECD study (2004)<ref name="ftn37"></ref> estimates the private security sector's global annual turnover at over USD 100 billion. The private sector in the US has an turnover of USD 40 billion a year (Lenain ''et al''., 2002). In Germany, the turnover of the private security sector is thought to be 4 billion euro and in France and the United Kingdom around 3 billion euro. According to Stevens (2004)<ref name="ftn39"> Stevens (2004) in: OECD (2004). ''The Security Economy''. ISBN 92-64-10772-X</ref>, the industry growth is outpacing economic growth worldwide with 7-8 percent annual growth.
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⚫
Examples of direct costs:
  
⚫
* A Dutch study by SEO (2007)<ref name="ftn40"> SEO (2007). ''The cost of crime''. Commissioned by the Dutch Ministry of Security and Justice.</ref> states that preventive measures (including insurances) are primarily deployed to prevent property crimes and vandalism (83 percent of all registered criminal offences in the Netherlands). The measured total prevention costs for property crimes are estimated by SEO at almost 3 billion euro in 2005; The insurance costs at 275 million euro, and the insurance costs for vandalism at 178 million euro.
  
−  
⚫
* An internet survey of the costs of security related to organising the Summer Olympics, illustrates that these costs, increased from 2 to 3 percent in the nineties, to more than 6 percent for the Summer Olympics in Athens (2004)<ref name="ftn41"> Security costs for the Summer Olympics in Athens (2004) added up to USD 1.4 billion.</ref>. According to an article by The Guardian<ref name="ftn42"> The Guardian, December 5th 2011. ''London 2012 Olympics security costs almost double to £553m''.</ref>, the projected security costs for the 2012 London Olympics and Paralympics are estimated at GBP 553 million (± 5.7 percent of the total budget of GBP 9.3 billion). US Real estate studies suggest a sharp increase in the cost of security in privately owned buildings since 2001, covering items such as identity cards, scanners, security cameras and security personnel<ref name="ftn43"> Kinum, C. (2004). ''The Economic Impact of Heightened Security Measures on the Commercial Real Estate Market, Post 9/11''. AllBusiness.com.</ref>.
  
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Revision as of 15:44, 13 December 2012

Economic effects of anti-crime security measures

Security measures aiming to manage crime risk, impose economic effects on society, the so-called economic effects of anti-crime security measures.

Description

Urban security has a cost at the point of build or refurbishment, and typically, the benefits come later. This page attempts to introduce the possible types of benefits and the costs, starting with the costs.

Costs of security

Direct (primary) costs of security

There are several types of security measures. Some of these measures involve monetary expenditures (e.g. locks, money safes, alarm systems, security guards, insurances, etc.), and others only involve opportunity cost, such as the time required to take protective measures (e.g. training a guard dog, or avoiding a high crime area). Public spending on security measures could also involve investment in civilian matters such as education, prevention and protection programmes in addition to security-related spending on judiciary, police and military items[1].

The magnitude of the direct (primary) costs of security measures is significant, but very difficult to quantify in financial terms[2]. One of the main reasons for this is that a lot of expenditures on safety measures have multiple purposes and do not automatically translate into higher costs or spending.

Examples of direct costs:

  • A Dutch study by SEO (2007)[3] states that preventive measures (including insurances) are primarily deployed to prevent property crimes and vandalism (83 percent of all registered criminal offences in the Netherlands). The measured total prevention costs for property crimes are estimated by SEO at almost 3 billion euro in 2005; The insurance costs at 275 million euro, and the insurance costs for vandalism at 178 million euro.
  • An internet survey of the costs of security related to organising the Summer Olympics, illustrates that these costs, increased from 2 to 3 percent in the nineties, to more than 6 percent for the Summer Olympics in Athens (2004)[4]. According to an article by The Guardian[5], the projected security costs for the 2012 London Olympics and Paralympics are estimated at GBP 553 million (± 5.7 percent of the total budget of GBP 9.3 billion). US Real estate studies suggest a sharp increase in the cost of security in privately owned buildings since 2001, covering items such as identity cards, scanners, security cameras and security personnel[6].



The economic effects of anti-crime security measures can be divided in several categories. The subsections below explain the most relevant categories with the help of examples.

Primary (direct) economic impact

There are numerous types of anti-crime Security in an urban environment has a cost at the point of build or refurbishment.. Some of these involve monetary expenditures (e.g. locks, money safes, alarm systems, security guards, insurances, etc.), and others only involve opportunity cost, such as the time required to take protective measures (e.g. training a guard dog, or avoiding a high crime area). Public spending on security measures could also involve investment in civilian matters such as education, prevention and protection programmes in addition to security-related spending on judiciary, police and military items[1].

The magnitude of the direct costs of security measures is significant, but very difficult to quantify in financial terms. One of the main reasons for this is that a lot of expenditures on safety measures have multiple purposes and do not automatically translate into higher costs or spending. An OECD study (2004)[1] estimates the private security sector's global annual turnover at over USD 100 billion. The private sector in the US has an turnover of USD 40 billion a year (Lenain et al., 2002). In Germany, the turnover of the private security sector is thought to be 4 billion euro and in France and the United Kingdom around 3 billion euro. According to Stevens (2004)[7], the industry growth is outpacing economic growth worldwide with 7-8 percent annual growth.




For more information on economic effects of specific security measures, see:

Related subjects

Footnotes and references

  1. ↑ 1.0 1.1 1.2 Source: OECD (2004). The Security Economy. ISBN 92-64-10772-X
  2. ↑ One of the main reasons for this is that a lot of expenditures on safety measures have multiple purposes and do not automatically translate into higher costs or spending.
  3. ↑ SEO (2007). The cost of crime. Commissioned by the Dutch Ministry of Security and Justice.
  4. ↑ Security costs for the Summer Olympics in Athens (2004) added up to USD 1.4 billion.
  5. ↑ The Guardian, December 5th 2011. London 2012 Olympics security costs almost double to £553m.
  6. ↑ Kinum, C. (2004). The Economic Impact of Heightened Security Measures on the Commercial Real Estate Market, Post 9/11. AllBusiness.com.
  7. ↑ Stevens (2004) in: OECD (2004). The Security Economy. ISBN 92-64-10772-X

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