Aug. 15 (Bloomberg) -- The risk posed by homegrown Islamic terrorists in the U.S. and other western countries is at least as great as from those who get their start in the Middle East, according to a New York Police Department report.

The report released today concludes that most terrorists begin as ``unremarkable'' people in ``ordinary jobs,'' and respond to real or perceived economic injustices, or opposition to the Iraq war. Many are from educated and privileged backgrounds and are searching for identity and a cause, the report said.

``While the threat from overseas remains, many of the terrorist attacks or thwarted plots against cities in Europe, Canada, Australia and the U.S. have been conceptualized and planned by local residents,'' Police Commissioner Raymond Kelly said at a lower Manhattan press conference today. ``This study attempts to look at how that intention forms, hardens and leads to an attack.''

The 90-page report, researched for 18 months and written by Mitchell Silber and Arvin Bhatt, two analysts among the 1,000 counter-terrorism specialists in the department, represents an attempt to understand what drives ordinary people to become terrorists, Kelly said.

``Where once we would have defined the initial indicator of the threat at the point where a terrorist or group of terrorists would actually plan an attack, we have now shifted our focus to a much earlier point -- a point where we believe the potential terrorist or group of terrorists begin and progress through a process of radicalization,'' the report states.

Four Stages

The report analyzes the actors in Madrid's March 2004 commuter train attack; an assassination of a Dutch journalist in 2004; London's July 2005 subway and bus attack; two failed operations in Australia and Toronto, and five thwarted attacks in the U.S. since Sept. 11, 2001.

It describes a four-stage process in which ``religious- seeking'' individuals shed previous lifestyles, sometimes after experiencing a life crisis, begin associating with like-minded people who reinforce each others' beliefs, and become exposed to an influential or charismatic person who is a ``spiritual sanctioner'' of bloodshed.

Internet `Afghanistan'

Although al-Qaeda often has no formal connection with these small groups of extremists, it provides inspiration. Kelly said specialists have dubbed the Internet ``the new Afghanistan'' because of its ability to link Islamic terrorists worldwide and provide technical know-how.

``Direct command and control by al-Qaeda has been the exception,'' according to the report. ``There is a remarkable consistency in the behaviors and trajectory of each of the plots across all the stages.''

New York police officials presented the report's findings last week to officials at the White House, the FBI, CIA, the Department of Homeland Security and the National Terrorism Center. At each meeting, officials were ``very receptive,'' said Lawrence Sanchez, an assistant police commissioner in the intelligence division.

The New York Civil Liberties Union criticized the report, saying that it could be used to support the violation of Muslims' rights.

``The NYPD must have the tools it needs to investigate and combat terrorism, but this report lays the foundation for blanket surveillance of the entire Muslim community,'' said Christopher Dunn, executive director of the group, in a prepared statement. ``Making all Muslims suspects is ethnic profiling, and it's unconstitutional.''

Community Outreach

Kelly told reporters counter-terrorism investigators are monitored by lawyers tasked to evaluate the constitutionality of police actions. He said he visits mosques throughout the city regularly to allay concerns.

``I don't see this report as stereotyping,'' Kelly said.

Silber said that during his research he was most surprised by how much danger the threat of homegrown terrorism presents to the West.

``What stands out is the fact that, really, the threat has evolved since 9/11,'' Silber said. ``Yes, there was an abroad component to it, but without Westernized pilots who got radicalized in Hamburg, that plot would have had less of a probability of being successful.''

Iraq War

The Iraq war has become one of the most common catalysts in radicalizing Muslims in the U.S. and western Europe, the department's terrorism experts said. They declined to comment on the Bush administration's argument that the U.S. is at war in Iraq to prevent terrorists from attacking on U.S. soil.

``There's no question that events in Iraq are contributors to this radicalization process,'' said Richard Falkenrath, deputy police commissioner for counterterrorism. ``We've seen it repeatedly in case after case, these images play a role.''

In Europe, where second- and third-generation Muslim immigrants haven't integrated economically and socially, young Muslims find themselves torn between the secular West and their religious heritage, the report states.

``This inner conflict makes them especially vulnerable to extremism -- the radical views, philosophy and rhetoric that is highly advertised and becoming more and more fashionable among young Muslims in the West,'' the report states.

Not Immune

Muslims in the U.S., who have more opportunities, ``are more resistant but not immune to the message,'' it concludes.

``We are fortunate that radicalization seems to have less appeal in the U.S. than in other parts of the world, but we do not believe that America is immune to homegrown terrorism,'' said Russell Knocke, a spokesman for the U.S. Department of Homeland Security. He said local police were more likely to detect signs of extremism before the federal government.

``American Muslim communities are one of our best defenses against extremism,'' Knocke said.

Kelly said the report found that depictions of the terrorists as hating freedom or driven by cowardice don't help in understanding how and why individuals become violent jihadists.

``We have to stay away from slogans, we have to stay away from easy solutions,'' Kelly said. ``It's a very complex dynamic that we're attempting to take on, to clarify.''

To contact the reporter on this story: Henry Goldman in New York City Hall hgoldman@bloomberg.net.

Last Updated: August 15, 2007 17:18 EDT