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

Ido Levy and Abdi Yusuf

Studies in Conflict and Terrorism, 2021, vol. 44, issue 12, 1167-1189

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.

Date: 2021
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DOI: 10.1080/1057610X.2019.1628622

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