The Venture Capitalists of Terrorism

Even with its physical “caliphate” in Iraq and Syria in tatters, the Islamic State is still managing to wage a global insurgency, maintaining an operational presence in at least 20 separate countries. The organization’s global diffusion recently led a group of leading terrorism experts to describe ISIS as an “adhocracy,” better understood as a group of “structurally fluid organizations in which ‘interacting project teams’ work towards a shared purpose and/or identity.” By maintaining this structure, the group’s leaders seek to harness the benefits of a transnational network spanning multiple regions and continents.

“All politics is local,” as the famous saying goes. But in the 21st century, all conflict is global, and organizations like ISIS are well-positioned to leverage the capabilities of its affiliates worldwide.

Another way to think about the Islamic State is as a venture capital firm. It is the investor that provides much-needed resources to the affiliates—or “provinces,” in the organization’s lingo—with the best potential for a high rate of return. ISIS then gains an “equity stake” and can tout the success and momentum of its new startups. Armed groups that are sponsored by ISIS central in this way reap the benefits its operational and organizational capabilities, including financing, training, weapons, propaganda support and strategic direction.

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