Economic impact of security measures

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With the help of security measures it is possible to eliminate the risk of a terrorist or criminal event, or at least reduce the risk. Security measures, however, also generate economic impact, here referred to as the economic impact of security measures. This includes the costs of securing a specific urban object, but also the costs and benefits regarding the secondary impact of security measures.

Description

Security measures intend to increase the level of security, mitigating the negative socio-economic impact of crime and terrorism. There are however costs involved with the improvement of urban security, also referred to as the "Costs of Mitigation"[1]. These costs contain first of all direct investments in equipment, training and operational costs by private agents, companies/developers and the public authorities, exacting economic cost/impact. Secondly, the mitigation effort generates various types of secondary effects for example in terms of delays (think of airport security), inconveniences (e.g. due to access control), and changes in the business environment as a result of security measures, creating an unintended fear factor.

Whether these primary and secondary costs are making sense from an economic point of view depends on many factors, and can be answered by two distinct sets of questions:

  1. Are the envisioned security measures cost effective from a socio-economic point of view, or are there better alternatives?
  2. Which specific agents (individuals, companies, sectors, authorities) are affected by the security measures and to which extend? How do the envisioned measures adjust the behaviour of these agents, and of course the behaviour of criminals/terrorists?

The most cost-effective security prevention strategies do not just take the impact on crime and/or terrorism into account, but also the geographical, cultural, socio-economic and social characteristics. According to Feins et al. (1997)[2]these characteristics are in general so unique and complex, that the selection of security measures should always involve a coalition of local stakeholders and objective experts.

Economic tools such as the social cost-benefit analysis (first question) and economic impact study (second question) can help the decision makers to answer these questions and to prevent wasteful expenditures on security (of course in collaboration with insights from criminology, sociology, etc.).

Types of impact of security measures

Although largely similar, there are differences in the economic effects of (see also clickable map below):

Economic effects of anti-crime security measuresEconomic effects of anti-terrorism security measuresSecurity measures crime & terrorism.jpg
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Related subjects

Footnotes and references

  1. Source: Rose, A & S. Chatterjee (2011). Benefits and Costs of Counter-Terrorism Security Measures in Urban Areas. Research sponsor: Department of Homeland Security. P. 6-7
  2. Feins, J.D., J.C. Epstein & R. Widom (1997). Solving Crime Problems in Residential Neigborhoods: Comprehensive Changes in Design, Management, and Use. U.S. Department of Justice. Office of Justice Programs. National Institute of Justice.

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