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How Do Terrorist Organizations Make Money? Terrorist Funding and Innovation in the Case of al-Shabaab

2019/06/17 by Ido Levy, Abdi Yusuf · 1 citation
Social Sciences · #Crime, Illicit Activities, and Governance #Politics and Conflicts in Afghanistan, Pakistan, and Middle East #Terrorism, Counterterrorism, and Political Violence

paper · doi:10.1080/1057610x.2019.1628622

openalex publication_date 2019/06/17 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/25

Abstract

This paper examines the funding sources of the terrorist group Harakat al-Shabaab al-Mujahideen. Using existing research and original interviews, this study outlines al-Shabaab’s history and funding sources. It theorizes that an organization’s capacity to operate in different fields of economic activity drives innovation in funding. Applying a framework for terrorist innovation to al-Shabaab’s funding sources, this study finds support for the theory. Development of intelligence and taxation capabilities is especially prevalent in the al-Shabaab context. Holding territory considerably increases organizational ability to raise funds. Increasing reliance on criminality may compromise an organization’s ideological character and leave it more vulnerable to inter-group competition.

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