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After the end of the Second World War, there emerged what is currently referred to as modern terrorism. Since then, large terrorist groups - with improved and more dynamic methods of organization, strategizing and carrying out their terrorist acts - have come up. Narco-terrorism, being one of the major divisions of terrorism has recently been faced with controversy. This is a type of terrorism that associates drugs to terrorism in two main ways; first, the revenue earned from the drugs or narcotics may be used to finance the acts of terrorism. In addition, the drug barons may take advantage of exploiting terrorism as a means of controlling the production and supply networks.

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According to White (p.72), proponents of the narco-terrorism deem that those involved in the terrorist acts use narcotics drugs to lucratively carry out and fund their operations. On the other hand, opponents have cleaved to the argument that the government usually applies the term narco-terrorism to magnify their own power. Within the context of napoleon’s summary of the new terrorist economy, napoleon affirms that globalization produced pockets in the globe whereby botched states were left to administrate with little financially viable and political power. Terrorist groups therefore became strong enough and seized the moment to resist the state and consequently they ended up running their own subversive economies. They in retaliation provided some form of political solidity. In order to be effective, the concerned terrorist groups generally forms some form of shell state usually defined as an organization. The organization usually steps in place of the government whenever the government is incapacitated in enforcing law or providing social order (White, p.77).

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Napoleon clearly indicates that modern terrorism is sustained by groups in shell states that consistently keep on changing and adjusting their organizational formation and political ambition in order to retain income from an international dissident economy. He strongly argue that poverty should not be used as a scapegoat to substantiate  terrorism, but instead economic and political failure results in the surfacing of shell states where terrorism can be well thought-out and funded. On the removal of napoleon’s theories as well as if the macroeconomic theories are correct then there may have significance for the nature of counterterrorism (White, p82). Otherwise, counterterrorism policies should be meant at providing the world general population with economic constancy, prospect and participation in the conventional economy.

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