To what extent are terrorism and development related? What are the relative weights of the economic, political, and social aspects of development? What is the development impact of different responses to terrorism? This volume addresses these crucial questions, synthesizing what we know about the development links with terrorism and pointing out what we do not. Contributors to this volume examine the economic and fiscal costs of terrorism and the response to terrorism. They conclude that the economic costs of terrorism in rich countries are low, relative to the economic costs of combating terrorism; both are likely high in poor countries. They also report evidence on how development affects terrorism. This work supports the hypothesis that political development – political openness and the quality of government – is inversely associated with the emergence of terrorist organizations, but not that poverty per se is directly responsible for terrorism.