
Now as we have understood the command structure and supply chains of a business-terror firm, it is time to understand the economics behind it.
To run a firm, you require constant cash flow to purchase raw materials, hardware, pay salaries to your employees, and auditors to manage the cash.
2. FINANCING & CASH-FLOW MANAGEMENT
For a terror inc. to finance its massive terrestrial footprint and army, it either requires a state actor to sponsor its needs to fulfill their geopolitical interests or the terror firm has to come in nexus with smugglers and black-market mafia trading in drugs, illegal weapons, electronic components and others.
These two:
1. **State Sponsorship**
2. **Crime-Terror Nexus**
fulfill most of the financial needs.


**Example** – Iran's **IRGC** (Islamic Revolutionary Guard Corp) constantly funds Hezbollah in Lebanon, Houthis in Yemen, and Hamas in Palestine to build proxies and strengthen the axis of resistance against USA, Israel, and other foreign adversaries.

Anti-India terror groups like Lashkar-e-Taiba and Hizbul Mujahideen are armed by Pakistan's ISI to engage in proxy warfare and cross-border terrorism in Kashmir.
Revolutionary Armed Forces of Colombia (FARC) was initially a Communist insurgent group, but in order to ensure their survival, they engaged themselves in global cocaine trade in black markets.
Hezbollah operates in Latin America in small factions that engage with drug cartels and crime syndicates to raise funds. They operate in Venezuela and border areas of South America.

Other sources of finance include running fake charity funds, organizations (NGOs), and launching digital campaigns to raise funds from sympathizers from all across the globe.

LeT runs charity organizations in Pakistan like the Markaz-ud-Dawa-wal-Irshad and after 2001, parliament attacks due to surmounting int'l pressure, Jamat-ud-Dawa was rebranded as an NGO that funds schools and hospitals. They get large donations in the name of humanitarian aid.
The cash flow management and transfers are done through a mix of old and modern methods.
Most prominent one is the **Hawala** method. It is solely done on basis of trust and familial conditions.

For example: Person 'A' in one country deposits money to broker 'A'. Broker 'A' contacts broker 'B' in the receiver's country and gives him the secret code for money transfer to broker 'Person B'. Person 'B' then gets the code from Person 'A' through calls or SMS and goes to broker 'B' in his country to collect the money.
Digital methods like cryptocurrency are also used for clandestine transfer of large amounts of money in one go.
This cash is never deposited in a normal bank; it is used to purchase assets like real estate, gold or is funneled to autonomous cells in small amounts to give them autonomy as well as bypassing legal scrutiny.
To duck any suspicion, the money is channelised to restaurants, import-export, shell-companies where the excess money is shown as trade bills.
Now let's talk about Specialization and recruitment drives.
3. HR, Recruitment, Retention
Recruitment is done from both rural and urban areas.


Impoverished and neglected regions devastated by wars are used to recruit men by giving them a source of income to run their families.
* *e.g.* Syria, Iraq, and Kashmir.
In urban areas, digital media and dark web is used to recruit young men who get excited by watching the gamified videos and action content.
Any major terror outfit like Al-Qaeda and ISIS have various committees.
1. **Ideologues, Propagandists, Content Creators**
2. **Accountants, Business managers, Finance bankers**
3. **Logistical enablers, Smugglers, Safe house managers**
4. **STRIKERS** (those whom we see in TV news)
* Execute the operation, weapon handlers, fighters.
5. **Technical Experts** — Engineers, chemists, pharmacists, software developers, and doctors.
Except for the **STRIKERS**, we hardly get to see any other official in daily life events.
To ensure **Retention**, they form small groups of fighters and officials to forge emotional bonding. Lucrative economic incentives lure people to stay for the money.
Glorification of martyrdom is done regularly to brainwash to believe that service is the ultimate purpose of their lives.
* *e.g.* After the elimination of Burhan Wani, he was branded as a young martyr in the valley which motivated more men to join insurgency.

Now to evolve and align with the rapid updates, a firm needs to heavily invest in R&D.
RESEARCH AND DEVELOPMENT
COTS technology was already covered in the first part. It is widely used to bypass security checks and is assembled at a common point for execution.

**Miniature Models** are used to hide explosives and weapons inside cargo, cartons, and mattresses.
Digital platforms like Telegram, Instagram, and Facebook are used for Doxxing — gathering information from posts and stories and sharing them online.
Software apps like Canva and Adobe used for building advanced CGI, and VFX enriched videos to make it look like action movies.
Open Source Knowledge sharing methods are used.

If any cell successfully tests a new modification or such as a 3D printed gun component, modular drones, and explosives then entire instructional manuals, video tutorials and tech-blueprint is shared in mass across dark web so that other cells can do the same.
Now, the last and foremost facet is PR and marketing that helps a company to reach its customers through advertisements and digital campaigns.
PR & Marketing —
The PR department of a terror outfit functions in a diverse array of content creation.

Sermons delivered by religious leaders are circulated to tap spirituality and emotions of the viewers.
At the same time, brutal executions are recorded and posted to demoralise people and the governments as a form of psychological warfare.
* *e.g.* ISIS posts videos of execution of American journalists on Twitter to frighten civilians.
Burhan Wani used Facebook to circulate videos that delivered sermons and motivated the youth to join Hizbul Mujahideen.

After mass civilian casualties, terror outfits launch videos that showcase humanitarian activities being undertaken like blood donation camps, food distribution to white-wash their image.
Hope, this simplified version helps you to understand things better.