War Economies and Insurgent Groups: a study of the Islamic State-Khorasan (ISIS-K)

Abstract

In what ways do war economies contribute to the sustenance of insurgent groups? Using the Islamic State-Khorasan (ISIS-K) as a case study, this article analyzes how external interventions and power vacuums have contributed to the development of economic systems that finance organized political violence. We argue that ISIS-K's operations were shaped by a war economy conditioned by such circumstances, which provided resources through coercive taxation, opioid trafficking, mining, and transnational donor networks. ISIS-K's trajectory also demonstrates that the availability of resources enabled the implementation of a recruitment model based on financial incentives and high salaries that nevertheless combine with ideological and symbolic elements. Our findings suggest that the group exploits the local war economy and feeds back into it, creating a cycle in which violence becomes a means of material sustenance. Thus, our study suggests that peacebuilding efforts will be insufficient unless they dismantle the economic systems that make war profitable.