The Victims of Terrorism an Assessment of Their Influence and Growing Role in Policy, Legislation, and the Private Sector
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RAND occasional papers may include an informed perspective on a timely policy issue, a discussion of new research methodologies, essays, a paper presented at a conference, a conference summary, or a summary of work in progress. All RAND occasional papers undergo rigorous peer review to ensure that they meet high standards for research quality and objectivity. The Victims of Terrorism An Assessment of Their Influence and Growing Role in Policy, Legislation, and the Private Sector Bruce Hoffman, Anna-Britt Kasupski The work reported in this paper was conducted within the RAND Center for Terrorism Risk Management Policy (CTRMP). Library of Congress Cataloging-in-Publication Data Hoffman, Bruce, 1954- The victims of terrorism : an assessment of their influence and growing role in policy, legislation, and the private sector / Bruce Hoffman, Anna-Britt Kasupski. p. cm. Includes bibliographical references. ISBN 978-0-8330-4143-2 (pbk. : alk. paper) 1. Victims of terrorism—Psychology. 2. Terrorism victims’ families. 3. Terrorism victims’ families—United States—Political activity. 4. Pan Am Flight 103 Bombing incident, 1988. 5. Terrorism—Psychological aspects. 6. September 11 Terrorist Attacks, 2001. I. Kasupski, Anna-Britt. II. Title. HV6431.H646 2007 362.88—dc22 2007004353 The RAND Corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R® is a registered trademark. © Copyright 2007 RAND Corporation All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from RAND. Published 2007 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 4570 Fifth Avenue, Suite 600, Pittsburgh, PA 15213-2665 RAND URL: http://www.rand.org To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: [email protected] Preface In recent years, associations formed by the victims of terrorist acts, their families, friends, and colleagues have emerged as an influential voice in government counterterrorism policy, in the passage of terrorism-related legislation, in civil court cases, and in other private-sector activi- ties, ranging from input in the design of the World Trade Center (WTC) memorial to the con- duct, remit, and operations of the National Commission on Terrorist Attacks upon the United States (“9/11 Commission”). Their effect on a variety of important issues, spanning actual poli- cies to compensation questions, however, remains a largely poorly understood development. Despite the fact that family groups or victims’ associations have been prominently involved in efforts in the aftermath of major terrorist incidents since the 1988 Pan Am 103 tragedy, little research has been devoted to analyzing the political, economic, and social activities of terror- ism victims’ associations or groups and their impact. This report examines the impact that terrorism has both on its actual victims and on their families in the aftermath of violent incidents. It seeks to better understand how society and government cope and adjust following a spectacular terrorist attack by focusing on the organi- zational dimensions and efforts of victims’ and family groups, their government and congres- sional lobbying efforts, their pursuit of civil justice remedies, and their internecine dynamics and relations. This paper should be of interest to policymakers, the private sector, and the public at large for the light that it sheds on how government and society cope in the aftermath of a major terrorist attack and the new role that victims’ groups play in such a process. The work reported here was conducted within the RAND Center for Terrorism Risk Management Policy (CTRMP). The CTRMP consists of stakeholders from various industries, including primary insurance companies, reinsurance companies, property owners, and other corporations. Fund- ing for this research is provided by these member organizations. The RAND Center for Terrorism Risk Management Policy (CTRMP) CTRMP provides research that is needed to inform public and private decisionmakers on eco- nomic security in the face of the threat of terrorism. Terrorism risk insurance studies provide the backbone of data and analysis to inform appropriate choices with respect to government involvement in the market for terrorism insurance. Research on the economics of various iii iv The Victims of Terrorism liability decisions informs the policy decisions of the U.S. Congress and the opinions of state and federal judges. Studies of compensation help Congress to ensure that appropriate compen- sation is made to the victims of terrorist attacks. Research on security helps to protect critical infrastructure and to improve collective security in rational and cost-effective ways. CTRMP is housed at the RAND Corporation, an international nonprofit research orga- nization with a reputation for rigorous and objective analysis and the world’s leading provider of research on terrorism. The center combines three organizations: • RAND Institute for Civil Justice, which brings a 25-year history of empirical research on liability and compensation • RAND Infrastructure, Safety, and Environment, which conducts research on homeland security and public safety • Risk Management Solutions, the world’s leading provider of models and services for catastrophe risk management. For additional information about the Center for Terrorism Risk Management Policy, contact Robert Reville Michael Wermuth RAND Corporation RAND Corporation 1776 Main Street 1200 South Hayes Street P.O. Box 2138 Arlington, VA 22202 Santa Monica, CA 90407 [email protected] [email protected] 703-413-1100, x5414 310-393-0411, x6786 A profile of the CTRMP, abstracts of its publications, and ordering information can be found at http://www.rand.org/multi/ctrmp/. Center for Terrorism Risk Management Policy Advisory Board Jeffrey D. DeBoer (Co-Chair) Kathleen Nelson President and Chief Operating Officer Immediate Past Chair Real Estate Roundtable International Council of Shopping Centers (ICSC) Jacques Dubois (Co-Chair) Art Raschbaum Chairman Executive Vice President and Managing Director Swiss Re America Holding Corporation GMAC RE Jack Armstrong Kevin Scroggin Assistant Vice President and General Director, Corporate Risk Management Senior Regulatory Counsel and Insurance Liberty Mutual Insurance Company General Motors Kim Brunner Hemant Shah Executive Vice President and General Counsel President and Chief Executive Officer State Farm Insurance Risk Management Solutions, Inc. Andrew Coburn Cosette Simon Vice President of Catastrophe Research and Senior Vice President Director of Terrorism Research Swiss Re Life and Health America Inc. Risk Management Solutions, Inc. Kenneth Feinberg Richard Thomas Managing Partner Senior Vice President and Chief Underwriting The Feinberg Group, LLP Officer American International Group Ken Jenkins Steven Wechsler Chief Underwriting Officer President and Chief Executive Officer American Reinsurance RiskPartners National Association of Real Estate Investment Trusts (NAREIT) Peter Lowy Chief Executive Officer Westfield Corporation, Inc. v Contents Preface ........................................................................................................... iii Center for Terrorism Risk Management Policy Advisory Board ...................................... v Foreword ........................................................................................................ ix Summary ........................................................................................................ xi Acknowledgments .............................................................................................xv