Spain (814), Cyprus (652), and Italy (386).
Almost everywhere, terrorist campaigns sparked increases in government outlays for police and other security forces. Oddly, however, these expenditures often bore lit- tle relation to the actual threat. Thus, West Germany, facing relatively minor terror- ism, spent an additional $2.7 billion over 11 years, while Italy's internal security

ECONOMICS, LABOR & BUSINESS

spending dropped.
Adding up the direct dollar costs of ter- rorism, Hewitt found th...