Thursday, December 10, 2015

IS a self-funded powerhouse of about $2 billion


Now, slight departure from cyber but let's look at the business and leadership perspective:
Out with the old, Al-Qaeda, and in with the new (Millennials), Islamic State.  Arabian Gulf donors are not the principle source any longer, but by diversification through oil fields, mineral mines, and territory banks.  The regime pays soldiers $400 - $1200 per month based on technical and engineering skills and provides bonuses for recruiting wives and children – almost parallels corporate / democratic way, right. 

The Islamic State of Iraq and al-Shams (ISIS) has dominated territories unmanageable by others but of course, rich minerals mines that account for $360 million in funding for 2014.  In that effort, taxing the 8 million living and working civilians and services/medication in the compound.  Of course, extortion is part of the equation too, from taxing elementary to college students; and bribery for passing through territories.  Better yet, the Iraqi government is even taxed… and numbers are said to be even higher for 2015, estimating $800 million.

Even without the oiling expertise and equipment, ISIS produced $500 million in oil production/profit from hijacking oil wells and refineries.  While sanctions didn’t help, they were still agile to still sell oil for one-fourth of the market price – to friends and foes alike, e.g. US-backed Syrian rebels to fuel their diesel engineers.  Of course, these efforts have been seriously hampered in the US earlier and allies bombing efforts (some via drones recently); post Paris attack coalition bombing of nearly 400 oil tanker trunks and storage tanks; but recently Russian lead bombing campaign.

With any territory takeover, the state banks get looted to the tune of $450 million in cash plus gold taken from a Mosul central back last year (and in which the same invasion, freed up almost 1,000 inmates from a prison and seizure of US-supplied military hardware).  The private banks however, are left in tacked so that clients still have the semblance an institution, but back end taxes replaces.
Apparently, gold is king.  Part of the theory is that trading, unlike paper currently, can’t be stop since it’s gold after all and evade sanctions from other government.  However, it said to be more of a ploy and recruitment tactic than real world economic power.

Finally, terrorists/terror isn’t without kidnapping and ransom.  We’ve seen the beheading and while most states align with the UN resolution not to payout, those who do (perhaps French, Italian and Spanish hostages that were freed), account for $20 - $45 million.  Yet, it’s local / civilian kidnapping also pay ransom e.g. in some cases for not being Sunni Muslim, for example.

While some would point to inequality for the ISIS buildup, judgment is still out since research indicate poor as well as rich people are susceptible or likely to join, level of education doesn’t seem to factor or be an influencer; so maybe it’s simply ideology.  This is already a departure from our norm so let’s bring it back a bit. 
There are counterintelligence officials and cyber specialist monitoring the Internet airwaves as they were able to arrest over a dozen terror suspects related to a Twitter account that had been intercepted by Ghost Security Group.  “…DigitaShadow says Ghost Security Group has taken down 149 Islamic State propaganda sites, 110,000 social media accounts, and over 6,000 propaganda videos since it formed”.  Other efforts, such as Telegram messaging app blocked 78 ISIS-related channels across 12 languages…
Article source: money.ccn.com

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