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January  2004                                                         Volume 5 - Number 4

 

 

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World Trade Center...

 

 

Update of Costs of the Attack 
By Wyatt Ulrich

The impact of natural, technological and conflict hazards is felt by all sectors and segments of society, as demonstrated by the tragic events of September 11, 2001.  Even today as the recovery efforts continue, all levels of government, the business community, political leadership, community activists and individuals are working to improve preparedness and reduce our vulnerabilities to future attacks.  Likewise, the National Commission on Terrorist Attacks upon the United States (also known as the 9/11 Commission) is attempting to prepare a full and complete account of the circumstances surrounding the September 11, 2001 terrorist attacks, including preparedness for and the immediate response to the attacks.

 

In the aftermath of September 11, 2001, the massive response and recovery efforts undertaken by federal, state and local governments have been nothing less than amazing.  From initial response and compensation efforts to infrastructure restoration and economic revitalization, a significant challenge has been accounting for costs associated with the response and recovery efforts, quantifying these efforts and determining economic impacts to the regions affected.  Although much has been quantified about September 11th, it is extremely difficult to demonstrate the total impact of the terrorist attacks.  Therefore, the scope of this project focuses on providing statistical data and information related to the following:

 

  • Patterns of global terrorism and related statistics for 2002;
  • Revised statistics associated with September 11, 2001; and
  • Detail of Federal Assistance and associated costs for New York City (NYC).

 

Specifically, this project provides a historical context from which to view terrorism, updates statistics about the 2,976 victims that died as a result of the attacks on the World Trade Center (WTC) and Pentagon, details economic impact to the airline industry and accounts for the $18.5 Billion in federal assistance provided to NYC.

 

As we continue to examine the impact of the 9/11 terrorist attacks and compile the statistics, it is important to remember that firefighters, emergency technicians, police, medical personnel and emergency planners at the local level still require resources to prepare for the future.  Once the resources are provided they must apply all the available resources, knowledge and lessons learned to the discipline of emergency management so that our communities are better prepared for the next attack.  Additionally, they must adopt an all-hazards systems approach to all phases of emergency management (mitigation, preparedness, response and recovery).

 

I truly believe that preparedness is a deterrent to terrorism and is necessary at all levels to minimize the impact of future terrorist events.  Without preparedness, terrorist groups will continue to take advantage of what they perceive to be our weakness and the war on terrorism will continue.

 


2.0 GLOBAL TERRORISM STATISTICS FOR 2002

The State Department’s 2002 annual report on Patterns of Global Terrorism shows the total number of international terrorist attacks from 1981 to 2002.  It should be noted that these statistics do not include intra Palestinian violence because such incidents do not fit the definition of international terrorism.  The table below depicts the total international terrorist attacks from 1981 to 2002.

 

Year

Total International Terrorist Attacks

1981

489

1982

487

1983

497

1984

565

1985

635

1986

612

1987

665

1988

605

1989

375

1990

437

1991

565

1992

363

1993

431

1994

322

1995

440

1996

296

1997

304

1998

274

1999

395

2000

426

2001

355

2002

199

 


The State Department’s 2002 annual report on Patterns of Global Terrorism shows that international terrorists conducted 199 attacks in 2002, a significant drop (44%) from the 355 attacks recorded during 2001.  The figure below graphically depicts the total number of international terrorist attacks from 1981 to 2002.

 


In addition, the State Department’s 2002 annual report on Patterns of Global Terrorism shows the total number of Anti-U.S. Attacks in 2002.  There were 85 U.S. targets attacked in 2002.  The table below depicts the types of U.S. targets attacked in 2002.

 

U.S. Targets Attacked in 2002

Qty

Business

51

Diplomat

10

Military

2

Government

4

Other

18

Total

85

 

 

3.0 REVISED STATISTICS ASSOCIATED WITH SEPTEMBER 11th

There are several Internet based web sites dedicated to the tragic events of September 11, 2001.  September11victims.com provides a database of statistics on loss of life.  According to this database, the death toll from September 11th is 2,976.  It should be noted that in a CNN.com news article on October 29, 2003, New York City (NYC) reduced its official death toll by 40 victims as a result of fraudulent claims (Hirschkorn, 2003).  The table below depicts the total number of victims as of October 29, 2003.

 

Victims

World Trade Center (WTC)

2,628

American Airlines (AA) Flight 11

87

AA Flight 77

59

United Airlines Flight 93

40

AA Flight 175

59

Pentagon

125

Total

2,976

 

Of the 2,628 WTC victims, 319 were firefighters and 50 were police officers (September11victims.com, November 27, 2003).  In addition, the table below lists the 82 countries that lost citizens in the attack on the WTC (September11victims.com, December 03, 2003).

Antigua & Barbuda
Argentina
Australia
Austria
Bahamas
Bangladesh
Barbados
Belgium
Belarus
Belize
Bolivia
Brazil
Cambodia
Canada
Chile
China
Colombia
Costa Rica
Czech Republic
Dominica
Dominican Republic

Ecuador
Egypt
El Salvador
France
Germany
Ghana
Greece
Guatemala
Guyana
Haiti
Honduras
Hong Kong
India
Indonesia
Iran
Ireland
Israel
Italy
Jamaica
Japan

Jordan
Kenya
Lebanon
Luxembourg
Malaysia
Mexico
Morocco
The Netherlands
New Zealand
Nicaragua
Norway
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Romania
Russia
Slovakia

South Africa
South Korea
Spain
Sri Lanka
St. Kitts & Nevis
St. Lucia
Sweden
Switzerland
Taiwan
Thailand
Trinidad & Tobago
Turkey
Ukraine
United Kingdom
United States of America
Uruguay
Uzbekistan
Venezuela
Yemen
Zimbabwe

 

A November 2001, Federal Reserve Bank of New York Economic Policy Review report, titled

Measuring the effects of the September 11 attack on New York City, details financial and statistical data about the September 11th attack on the WTC.  According to the report, “the major components of New York City's public and private physical capital stock in Lower Manhattan that were destroyed or damaged in the World Trade Center attack were as follows:

  • About 30 million square feet of commercial office space;
  • More than 100 retail stores in the World Trade Center area;
  • Subway tunnels (Lines 1 and 9);
  • The Port Authority Trans-Hudson (PATH) train station at the World Trade Center;
  • The streets surrounding the attack site; and
  • Parts of the telecommunications and power infrastructure in Lower Manhattan, including a switching facility and substations (Bram, 2002).

 

The impact of 9/11 to the airline industry has been devastating.  As a result, Americans have been slow to return to pre 9/11 travel patterns.  The Melbourne Airport News published an article showing the affects of 9/11 on the airline industry and the table below summarizes the impact to six major airlines.

 

Airline

Losses, First Half 2002

Share Price

9/11/01

Share Price

11/15/02

American

$1.07 Billion

$29.70

$6.81

United

$851 Million

$30.82

$2.95

Delta

$583 Million

$37.25

$10.89

Northwest

$264 Million

$25.70

$8.04

Continental

$305 Million

$39.64

$8.38

US Airways

$517 Million

$11.62

$0.62

 

Furthermore, in conducting research for this project numerous statistics were uncovered and several are summarized below.

  • 23-day closure of Reagan National Airport resulted in a lost economic output, tourism, and travel is estimated at $987 million (Dart, December 9, 2001).
  • 20 of 28 national Urban Search and Rescue Task Forces were activated to respond to the attacks at the WTC.  Almost 1,300 members of the Urban Search and Rescue teams and 80 dogs worked at the WTC site (GAO-04-72).
  • Prior to September 11th, FEMA disaster assistance exceeded $1 billion in only six other disasters, the largest of them being the Northridge Earthquake in California in 1994 (GAO-04-72).
  • 1.6 million tons of debris was removed from the WTC site (GAO-04-72).
  • About 18,000 businesses in NYC, representing approximately 563,000 employees, were disrupted or forced to relocate as a result of the terrorist attacks (GAO-04-72).
  • The NYC area lost about 83,000 private sector jobs from September 11, 2001 through the end of December 2001 (GAO-04-72).
  • Approximately 30 million square feet of commercial space was damaged or destroyed as a result of the terrorist attacks in NYC (GAO-04-72).
  • Approximately $700 million in damage was done to 2 million square feet of the Pentagon as a result of 9/11 (CNN, September 4, 2002).

 

4.0 FEDERAL ASSISTANCE AND ASSOCIATED COSTS

An October 2003, General Accounting Office (GAO) report titled September 11: Overview of Federal Disaster Assistance to the New York City Area, details the federal disaster assistance to the NYC area to help it respond to and recover from the September 11, 2001 terrorist attacks.  Approximately $18.5B in federal disaster assistance was provided to the NYC area.  The table below depicts the types of assistance provided to the NYC area.

 

Federal Disaster Assistance to NYC

Funds

Initial Response Efforts

$2.55 Billion

Compensation for Disaster-Related Costs and Losses

$4.81 Billion

Infrastructure Restoration and Improvement

$5.57 Billion

Economic Revitalization

$5.54 Billion

Total

$18.47 Billion

 

4.1 Initial Response Efforts

Initial response efforts included efforts to search for and rescue victims and clear more than a million tons of debris.  $2.55B was provided in federal assistance from the Federal Emergency Management Agency (FEMA), Department of Transportation (DOT) and Department of Housing and Urban Development (HUD).  The table below shows the amount each agency provided for initial response efforts.

 

Federal Disaster Assistance for Initial Response Efforts

Funds

FEMA

$2.20 Billion

DOT

$0.10 Billion

HUD

$0.25 Billion

Total

$2.55 Billion

 

4.2 Compensation For Distaster-Related Costs And Losses

Approximately, $4.81B was provided in federal assistance to compensate state and local organizations, individuals, and businesses for disaster-related costs.  The table below shows the amount each agency provided for compensation for costs and losses.

 

Compensation for Disaster-Related Costs and Losses

Funds

FEMA

$3.84 Billion

HUD

$0.96 Billion

Total

$4.81 Billion

 

4.3 Infrastructure Restoration And Improvement

Approximately, $5.57B was provided in federal assistance to restore and enhance elements of the transportation system and utility infrastructure supporting lower Manhattan.  The table below shows the amount each agency provided for infrastructure restoration and improvement.

 

Infrastructure Restoration And Improvement

Funds

FEMA

$2.75 Billion

DOT

$2.24 Billion

HUD

$0.58 Billion

Total

$5.57 Billion

 

4.4 Economic Revitalization

Approximately, $5.54B was provided in federal assistance to aid in revitalizing the lower Manhattan economy.  The table below shows the amount provided to the lower Manhattan area for economic revitalization.

 

Economic Revitalization

Funds

Liberty Zone Tax Benefits

$5.03 Billion

HUD

$0.52 Billion

Total

$5.54 Billion

 

5.0 CONCLUSION

In the aftermath of the tragic events of September 11, 2001, the continuing proliferation of weapons of mass destruction, terrorism and the potential link between them remains the greatest direct threat to United States interests at home and abroad.  To counter this threat and prepare for the unexpected within the borders of the United States, emergency management preparedness has become increasingly important for ensuring the safety of citizens living in communities throughout our country.  At all levels of federal, state and local government, emergency preparedness has become increasingly important.  The issue today is how to apply all the available resources, knowledge and lessons learned to the discipline of emergency management so that our communities are better prepared for the next attack.  Preparedness is a deterrent to terrorism and is necessary at all levels to minimize the impact of future terrorist events.  Without preparedness, terrorist groups will continue to take advantage of what they perceive to be our weakness and the war on terrorism will continue.


 

ANNEX A – ACRONYMS

AA                                           American Airlines

B                                              Billion

CNN                                       Cable News Network

DOT                                        Department of Transportation

FEMA                                     Federal Emergency Management Agency

GAO                                        General Accounting Office       

HUD                                        Department of Housing and Urban Development

NYC                                        New York City

PATH                                      Port Authority Trans-Hudson

US                                           United States

WTC                                       World Trade Center


 

ANNEX B – REFERENCES

Bram, Jason, et al.  Measuring the effects of the September 11 attack on New York City.  Federal

     Reserve Bank of New York Economic Policy Review, November 2002.

 

Cable News Network (CNN).  “Project Phoenix: Pentagon offices rise from rubble,” September

     4, 2002, http://www.cnn.com/2002/US/09/04/ar911.pentagon.reconstruction/index.html.

 

Dart, Bob.  “Counting the Costs,” The Atlanta Journal and Constitution.  December 9, 2001.

 

General Accounting Office.  “September 11: Overview of Federal Disaster Assistance to the

     New York City Area,” October 2002, GAO-04-72.

 

Hirschkorn, Phil.  “New York reduces 9/11 death toll by 40.”  October 29, 2003,     

     http://www.cnn.com/2003/US/Northeast/10/29/wtc.deaths/index.html.

 

September11victims web site, (n.d.),

     http://www.september11victims.com/september11victims/STATISTIC.asp.

 

The Melbourne Airport News.  “State of the Airline Industry Affects Marketing Program.”  November/December 2002.

 

U.S. Department of State.  “2002 annual report on Patterns of Global Terrorism,” (n.d.),

     http://www.state.gov/s/ct/rls/pgtrpt/2002/