Globalization and Terrorism Financing: the Case of Boko Haram, 2009-2018

i GLOBALIZATION AND TERRORISM FINANCING: THE CASE OF BOKO HARAM, 2009-2018 BY OTOBO, FREDERICK OKWUDILICHUKWU PG/M.Sc./16/80087 A PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE (M.Sc.) IN POLITICAL SCIENCE (HUMAN SECURITY AND COUNTER-TERRORISM STUDIES) DEPARTMENT OF POLITICAL SCIENCE UNIVERSITY OF NIGERIA, NSUKKA SUPERVISOR: DR. C. C. IKE AUGUST, 2018 ii APPROVAL PAGE This project report has been examined and approved by the Department of Political Science, University of Nigeria, Nsukka for the award of Master of Science (M.Sc.) in Political Science (Human Security and Counter-Terrorism Studies). DR. C. C. IKE DR. M. I. ABADA SUPERVISOR HEAD OF DEPARTMENT EXTERNAL EXAMINER PROFESSOR LEONARD UGWU DEAN OF FACULTY iii DEDICATION To the Almighty God iv ACKNOWLEDGEMENTS I wish to acknowledge the intellectual guidance I received from my erudite supervisor, Dr. Cyril Chinedu Ike. Though it was mine to do the writing, my entire exposure to the realm and rigours of structures and technicalities of this work, I owe to him. Therefore, I am eternally grateful sir. Your scholarly assistance is unquantifiable. My special thanks also go to my lecturers such as Prof. A M-N Okolie, Dr. G. E Ezirim, Dr. F. C Onuoha and particularly Dr. M. I Abada, my Head of Department. You have all encouraged me in most wonderful ways. I most heartily recognise and warmly appreciate the encouragement from my wife, Uju, who always took care of the home while this programme lasted. My pretty children, Eberechukwu and Uchechukwu are not left out. Besides, I cannot but also acknowledge the efforts of my mother, brothers and sisters. Thank you all for being there for me. Similarly, my special thanks go to my friends who supported me through prayers. I am indebted to you all. On a final note, I thank God for keeping me alive, His protection while I shuttled between Enugu and Nsukka for 18-months without any bad story to it. Thank you Lord for not allowing the desire and determination to run this programme die in me. Today, by your grace, all is history. Otobo F. O Department Of Political Science University Of Nigeria, Nsukka v TABLE OF CONTENTS Title Page i Approval Page ii Dedication iii Acknowledgement iv Table of Contents v List of Tables vi List of Abbreviations vii Abstract viii CHAPTER ONE: Background to the study 1.1. Background to the study 1 1.2. Statement of the Problem 5 1.3. Objectives of the Study 10 1.4. Significance of the Study 11 CHAPTER TWO: Literature Review 2.0. Literature Review 12 2.1. Globalization of small arms and light weapons (SALW), Narcotics and Money Laundry 12 2.2. International Terrorism Financing and Boko Haram insurgency in Nigeria 28 CHAPTER THREE: Methodology 3.1. Theoretical Framework 41 3.2. Hypotheses 47 3.3. Research Design 48 3.4. Methods of Data Collection 50 3.5. Methods of Data Analysis 51 3.6. Logical Data Framework 52 CHAPTER FOUR: GLOBALIZATION AND THE SHIPMENT OF SMALL ARMS AND LIGHT WEAPONS (SALW), NARCOTICS AND MONEY LAUNDRY 4.1. Globalization, Trade Liberalization, Free Trade and the Shipment of Narcotics 55 4.2. Globalization of Economic Activities, Connectivity, Borderless Globe and Shipment of Small Arms and Light Weapons (SALWs) 63 4.3. Globalization of Arms Trade and Shipment of Small Arms and Light Weapons (SALWs) 69 4.4. Globalization, Linearization of Domestic Capital Accounts and Money Laundry 81 vi CHAPTER FIVE: INTERNATIONAL TERRORISM FINANCING AND BOKO HARAM INSURGENCY IN NIGERIA 5.1. International Terrorism Financing 92 5.2. Sources of Terrorism Financing 94 5.3. Boko Haram Current and Emerging Terrorist Financing Channels 106 CHAPTER SIX: SUMMARY, CONCLUSION AND RECOMMENDATIONS 6.1. Summary 109 6.2. Conclusion 113 6.3. Recommendations 115 Bibliography 119 vii LIST OF TABLES Table 4.1 Showing the Proliferation of Mexican Drug Cartels, 2006-2010- -- - 60 Table 4.2 Showing the Flows of Laundered Money - - - - - 88 viii LIST OF ABBREVIATIONS AND ACRONYMS AQIM Al-Qaeda in the Islamic Magreb ATS Amphetamine Type Stimulants ATT Arms Trade Treaty CAAT Campaign Against Arms Trade DICON Defense Industry Corporation of Nigeria ECOWAS Economic Community of West Africa States ETA Euskadi ta Askatasuna FARC Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia) FATF Financial Action Task Force FinCEN Financial Crime Enforcement Network GDP Gross Domestic Product GIABA Inter Governmental Action Group against Money Laundry in West Africa IMF International Monetary Fund ISI Inter-Services Intelligence NPO Non-Profit Organization OECD Organization for Economic Co-operation and Development OPEC Organization of the Petroleum Exporting Countries PIRA Provisional Irish Republican Army PKK Kurdish Workers Party ix PLO Palestine Liberation Organization RPG Rocket Propelled Grenades SALW Small Arms and Light Weapons SIPRI Stockholm International Peace Research Institute TOC Transnational Organized Crime UNICEF United Nations Children's Fund UNODC United Nations Office on Drugs and Crime VEO Violent Extremists Organization WMD Weapons of Mass Destruction WTO World Trade Organization x ABSTRACT Terrorist organizations have adapted and become innovative to ensure their monetary funds are secure and undetectable. Boko Haram is one organization that has found ways to ensure its finances are almost undetectable. Over the past 12 years, Boko Haram has become a powerful and destructive violent extremist organization while obtaining millions of dollars in funding. Meanwhile, globalization has radically changed the world; it has enabled the easy movement of people, goods and money across borders, and has facilitated improved communication. In a sense, it has made our lives easier, however the same facets that have improved the lives of citizens across the globe now threatens them. Terrorist organizations now make use of these same facets of globalization in order to facilitate terrorist activity. Against this backdrop, therefore, this study examined globalization and terrorism financing: case of Boko Haram insurgency in Nigeria, within the period, 2009-2018. The study was anchored on World systems theory, while relying on documentary method for the collection of data, which was correspondingly, analyzed using content analysis. The study found that globalization is playing a major part in the shipment of small arms and light weapons (SALW), narcotics and money laundry. Narcotic poses a momentous threat to the world community at two levels; first, by targeting the human resource of a country (especially youth) it paralyses the state and prevents it from realizing its actual potential; second, by financing the acts of terrorism with the similar money earned circuitously from the targeted state. By way of recommendation, therefore, defeating Boko Haram financially comes down to the government of Nigeria’s willingness to invest the required resources. Counter finance measures alone can have a lasting effect on Boko Haram’s ability to fund its operations, but it is only one measure that needs to be taken. Keywords: Terrorism, SALW, Terrorism Financing, Boko Haram, Globalization 1 CHAPTER ONE INTRODUCTION 1.1 BACKGROUNG TO THE STUDY Ever since the end of the bipolar system characteristic of the Cold War, the world order has been undergoing a series of structural changes defined in terms of "crisis", "transition" or "turbulence". The disorder prevailing in the relations between the different actors on the world scene could be regarded as the result of the confrontation between the forces of centralization and decentralization in the international system. This confrontation is characterized by the multiple reactions of state actors in response to growing economic and social interests. Since its inception, the concept of globalization has inspired competing definitions and interpretations, with antecedents dating back to the great movements of trade and empire across Asia and the Indian Ocean from the 15th century onwards. Hopkins (2004) coined the related term to describe the largely national trusts and other large enterprises of the time. When used in an economic context, it refers to the “reduction and removal of barriers between national borders in order to facilitate the flow of goods, vital capitals, services and labour”. Palmer (2002) defined globalization as the diminution or elimination of state enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result. Friedman (2000) popularized the term “flat world”, arguing that globalized trade, outsourcing, supply-charming, and political forces had permanently changed the world for better and worse. He asserted that the pace of globalization was quickening and that its impact on business organization and practice would continue to grow. Fotopoulos (2001) defined “economic globalization” as the opening and deregulation of commodity, capital and labor markets which led to the present new liberal globalization. 2 The assimilation of national economies into a single global system, dominated by the performance of stock exchanges and capital markets, extends beyond economics to the roots of cultural and social identity. The fall of ideological barriers has been accompanied on the one hand by economic homogenization and on the other by political and social fragmentation. In many parts of the world, areas of economic prosperity coexist with pockets of worsening marginalization and poverty, while, especially in

Load more