Recent news surrounding the battles in Iraq and Syria give the impression that the Islamic State is losing many of their important gains and will eventually succumb. This, however, is not the time to withdraw the pressure from the Islamic State. They still have a vast arrange of ways of collecting money from a variety of financial sources. The international community has to keep the pressure not just on the battlefield but also on the banks and assets that the Islamic State has managed to get a hold of.
It is well documented how the Islamic State was able to take and contain hold of significant amount of territories in Iraq and Syria. The failures of the Iraqi government and the uprising against the Syrian government helped lead to Islamic State victories on the battlefield. Before those battles even began, though, there was a significant amount of financial and material resources in the hands of the Islamic State.
This paper identifies how the Islamic State gets its revenues, examines the main economic sanctions that have taken place against the terrorist organization, then goes through their individual sources of revenue and analyzes what has been done and what more the international community can do in order to stop the Islamic State from taking in such large amounts of money.
Table of Contents
1. Sources of Revenue for the Islamic State
2. Sanctions adopted against the Islamic State
3. ISIS’s Sources of revenue: What is being done, and what more can be done
3.1 Oil
3.2 Hostage Taking
3.3 Donations
3.4 Other Sources
4. Conclusion
Objectives and Topics
This paper identifies the multifaceted financial mechanisms utilized by the Islamic State to fund its operations, examines the effectiveness of international economic sanctions, and proposes strategies for the international community to degrade these diverse revenue streams. The research aims to answer how the Islamic State maintains its financial viability despite global efforts to isolate it and what specific policy adjustments are necessary to deplete its resources.
- Analysis of diverse revenue streams including oil, taxation, and kidnapping.
- Evaluation of the impact of UN resolutions and nation-state sanctions.
- Investigation into illicit donation networks and humanitarian aid exploitation.
- The strategic necessity of territorial reclamation to destroy financial infrastructure.
- The role of international diplomatic and military coordination.
Excerpt from the Book
Hostage Taking
Kidnapping and taking hostage is another vital source of revenue for the Islamic State. Different governments have reacted in different ways to their citizens being kidnapped by the Islamic State. It is reported that in 2014 the Islamic State received between $35 and $45 million in ransom payments alone (Oakford). Governments that have negotiated with hostages, tend to try to conceal their involvement, not wanting to admit their helping fund the terrorist organization. European governments have often used alternative ways to get money to terrorist without being directly involved (Holmes). Sometimes they conceal it as aid payment to foreign governments, for example, with the intent though that it goes to the terrorist group in return for their citizens (Holmes).
In April 2014, France allegedly paid the Islamic State $18 million for the release of Four French hostages (Lilli). In January 2015, Italy reportedly paid $13 million to free two of its nationals (Lilli). Rarely do governments come out admit to such paying for ransom. The United Kingdom, on the other hand, has a clear no ransom payment policy and says that families that attempt to do so are breaking the law (Cobain). The U.S. has had a long-standing policy of not paying for hostages, yet recent events have brought the subject up to debate again.
Summary of Chapters
Sources of Revenue for the Islamic State: Provides an overview of how the organization leverages diverse resources, including oil, taxation, and kidnapping, to maintain its economic independence.
Sanctions adopted against the Islamic State: Details the various UN resolutions and national economic measures implemented to freeze assets and isolate the organization from the global financial system.
ISIS’s Sources of revenue: What is being done, and what more can be done: Offers an in-depth analysis of specific funding sectors, evaluating current military and diplomatic efforts while suggesting improvements for future interventions.
Conclusion: Synthesizes the core arguments, emphasizing that a multi-dimensional approach combining military force with strict economic and diplomatic pressure is essential for the collapse of the organization.
Keywords
Islamic State, Terrorism Financing, Economic Sanctions, Ransom Payments, Oil Revenue, Taxation, Humanitarian Aid, International Relations, Foreign Policy, Statecraft, Territorial Control, Counter-terrorism, Banking Systems, Global Security, Financial Intelligence.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper focuses on the financial infrastructure of the Islamic State, identifying how they generate funds and assessing how international actors can effectively disrupt these economic activities.
What are the core thematic areas discussed in the document?
The core themes include illegal oil trade, hostage-for-ransom negotiations, exploitation of charitable donations, and the effectiveness of international economic sanctions.
What is the central research question?
The central question concerns how the international community can effectively degrade the Islamic State’s ability to generate revenue through a combination of military, diplomatic, and economic interventions.
What scientific or research methods are employed?
The author employs a qualitative analysis of existing international reports, UN resolutions, economic data, and academic literature to map out the organization's financial networks and policy responses.
What does the main body of the work cover?
It covers individual sectors such as oil, taxation, human trafficking, and donations, followed by a critique of current sanction policies and recommendations for stronger state action.
Which keywords best describe this study?
Key terms include Terrorism Financing, Economic Sanctions, Islamic State, Statecraft, and Global Security.
Why is hostage paying considered a "collective action problem"?
As noted by economist Todd Sandler, while paying a ransom may save an individual hostage, it collectively enables the terrorist group to fund future operations and increases the incentive for them to capture more victims.
What role does territorial loss play in the group's financial decline?
Territorial control is identified as the most critical factor; without the land, the organization loses access to oil fields, tax bases, and historical sites, effectively cutting off the majority of their income.
What critique is directed at Qatar and Kuwait regarding donations?
The author argues that these countries must implement stricter banking regulations and oversight to prevent private citizens and unregistered charities from siphoning funds to the Islamic State under the guise of humanitarian aid.
- Quote paper
- Mark Barnes (Author), 2016, Destroying Islamic State Finance. An Examination of the Main Economic Sanctions Against the Terrorist Organisation, Munich, GRIN Verlag, https://www.grin.com/document/337512
