The terrorism is characterized by complexity and ambiguity, whether it is related to the concept or its credibility, due to the overlapping of many economic and social variables and the different statistics and data related to it, so it took different and multiple forms, And in order to study the relationship between terrorism and its effects on economic development, it also opens the door to studying the phenomenon of terrorism with front links, background, and other economic and social variables, as the Iraqi economy was exposed during the period 2014-2020 to very difficult security conditions and faced complex and complex economic challenges, as the economy was exposed to great destruction in the infrastructure and a clear crack in the social fabric, at a time when there are terrorist gangs ISIS, there is destruction In the economy, high rates of unemployment, and high rates of inflation, The paper concluded that despite the impact of terrorism on all indicators of economic and human development, the impact of this phenomenon was significant on military spending and enshrined the concept of economic rents due to the huge consumption and military spending under the pretext of the exceptional circumstance of the country.