Mr Gorbachev said poverty is a "breeding ground for terrorism"
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Former Soviet leader Mikhail Gorbachev says terrorism can only be fought by political means, just weeks after the Beslan school siege ended in tragedy with at least 338 dead.
Mr Gorbachev called on world leaders to come together in a "united effort" to combat terrorism.
"What is more," he told Newsnight, "the united efforts must be directed at a political solution of problems relating to terrorism and at cutting the supply channels of terrorism."
He also dismissed the notion of a viable war against terrorism saying: "I don't believe it is a war that we are talking about, some people even say that a Third World War has broken out.
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Newsnight special: War Without End?
Thursday, 23 September, 2004
2230 BST on BBC Two (UK)
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"What we are actually talking about is a struggle against terrorism."
In terms of the global fight against terrorism, world leaders needed to fully recognise widespread poverty is a "breeding ground for terrorists", said Mr Gorbachev.
"We should not reduce everything down to weapons and violence."
International terrorists
When asked how President Putin should fight Chechen terrorists in the wake of the Beslan tragedy, he offered cautious support while reiterating the importance of dialogue and diplomacy.
He said Mr Putin should "continue to do what he has been doing in recent times. He has already firmly embarked on the road of political settlement of this problem.
"This is to ensure that Chechnya enjoys a special status within the framework of Russia, to continue the process of rejuvenation of Chechnya, building a new infrastructure, education and social environment."
However, while Mr Gorbachev advocated negotiating with Chechens "ready to participate in the restoration of Chechnya", he underlined the region had become the focus for international terrorists.
He also made clear that Chechen plans to create an Islamic state would not be accepted by Russia "and, I believe, will not be accepted by Europe or the world over."
He also emphasised Chechens needed to be more involved in running their own affairs and promoted what he termed a process of "Chechenisation."
Newsnight is broadcast at 10.30pm on BBC Two every weekday in the UK.