News / Africa

Somalia's Piracy Has Major Global Costs, but Also Incentives

Guards stand outside the prison that houses 70 pirate inmates, in the breakaway northern republic of Somaliland, March 2011. (file photo)
Guards stand outside the prison that houses 70 pirate inmates, in the breakaway northern republic of Somaliland, March 2011. (file photo)
Nico Colombant

Recent research indicates piracy from Somalia is costing the world economy billions of dollars, but also bringing lots of money to pirates and Somali communities.

A recent report by the U.S.-based One Earth Future Foundation on costs related to Somalia piracy is prompting questions about how to more effectively curb these activities.

The report said Somali pirates cost the shipping industry and governments nearly $7 billion last year, with lots of money being spent for ships to go faster, to pay ransom when crew and cargo are captured, and for security operations.

These include naval missions by several countries, which effectively have pushed most of the pirate attacks out of the Gulf of Aden, to the much wider and more difficult to control Arabian Sea and Indian Ocean.

A leading expert on piracy, Roger Middleton, said while in recent months, the number of hijackings has dropped, the attacks have become more and more profitable for those behind them.

“For all the success of naval operations, and some of them have been very successful, piracy is a more profitable enterprise in the last year than it was the year before, and the trend seems to be upwards for ransom payments,” said Middleton.

These payments now average about $5 million - making piracy usually well worth the risk, according to Middleton.

“You can make $10,000 as a pirate, at the most basic, lowest level for one successful hijacking. If you do three of those in a year, you are doing very, very well by any standards anywhere in the world," said Middleton. "Put in mind that the estimate for Somali gross domestic product per head is about $600 per year, and for many, many people it is much, much lower than that, and the economic incentive is absolutely clear. Piracy is the best career you can have.”

He said the semi-autonomous Puntland region of Somalia has just enough stability to allow a criminal enterprise such as piracy to flourish, while not enough governance to stop it.

Middleton made his comments at a recent gathering of the Institute of International and European Affairs in Dublin, Ireland.

Last month, a study published by the British think-tank Chatham House said several populated areas of Puntland were benefiting from investments funded by piracy, with increased electricity, housing construction and vehicles.

Many of the lower level pirates are former fishermen who have been quoted as saying they were not making enough money to feed their families anymore.

In the past two decades, boats from around the world took advantage of the lack of law and order in Somalia’s waters, as well as agreements with authorities, to operate large-scale fishing, making the catches of local fishermen smaller and smaller.

You May Like

Russia Names US NGO 'Undesirable'

Prosecutors determine activities of National Endowment for Democracy to be 'undesirable,' paving the way for it to be outlawed on Russian territory More

Erdogan Vows 'Anti-Terror' Campaign in Syria, Iraq

Erdogan expressed confidence the 'necessary steps' will be taken by NATO leaders, who will meet Tuesday at Turkey's request More

North Korea: 'No Interest at All' in Nuke Deal

Senior US envoy Sydney Seiler visits Beijing Tuesday for talks on how to revive the stalled six-party nuclear talks with North Korea More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Calls Fight Against Human Trafficking a Must Wini
X
July 28, 2015 12:21 AM
The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Iran Nuclear Pact Wins Few New US Congressional Backers

Later this week, President Barack Obama returns from a trip to Africa to confront a U.S. Congress roiled by the nuclear accord with Iran, an agreement that has received the blessing of the U.N. Security Council. Days of intensive lobbying and testimony by top administration officials have won few new congressional supporters of the pact. VOA’s Michael Bowman reports.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Obama Encourages Kenya to Fix Cultures of Corruption, Discrimination

President Barack Obama bid farewell to Kenya Sunday with a major speech at as stadium outside the capital Nairobi where he called on Kenyans to change the cultures of corruption and discrimination that can hold society back. VOA East Africa Correspondent Gabe Joselow has the story.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.
Video

Video Racially Diverse Spider-Man Takes Center Stage

Whether it’s in a comic book or on the big screen, fans have always known the man behind the Spider-Man mask as Peter Parker. But that is changing, at least in the comic book world. Marvel Comics announced that a character called Miles Morales will replace Peter Parker as Spider-Man in a new comic book series. He is half Latino, half African American, and he is quite popular among comic book fans. Correspondent Elizabeth Lee reports from Los Angeles.
Video

Video California Towns Welcome Special Olympics Athletes

Cities and towns in Southern California are greeting thousands of athletes who are arriving for Special Olympics, a competition for people with intellectual disabilities. The games will run from July 25th through August 2nd. VOA's Mike O'Sullivan reports from Pasadena, California, where athletes from Namibia, Singapore and Tanzania got a rousing welcome from local residents.
Video

Video Critics of Japan Defense Policy Focus on Okinawa

In Okinawa, many locals have long complained that Tokyo places an unfair burden on the tiny island by locating most of Japan's U.S. military bases there. As Japan's government moves toward strengthening and expanding the country's defense policies, opponents of those plans are joining local protesters in Okinawa, voicing concern about where the country is headed. VOA’s Brian Padden reports from Okinawa.
Video

Video IS Uses Chemical Weapons in Syrian Attack

Islamic State militants have added a new weapon in their arsenal of fear: chemical weapons. VOA Kurdish service reporter Zana Omer was on the scene within hours of a recent attack in Hasakah, Syria, and has details of the subsequent investigation, in this report narrated by Miguel Amaya.
Video

Video Historic Symbol Is Theme of Vibrant New Show

A new exhibit in Washington is paying tribute to the American flag with a wide and eclectic selection of artwork that uses the historic symbol as its central theme. VOA’s Julie Taboh was at the DC Chamber of Commerce for the show’s opening.
Video

Video Hoverbike Flying Toward Reality

Another long-standing dream of many technological inventors is quickly approaching reality: U.S.- and British-based firms are cooperating in the development of an individual flying platform they call a hoverbike. They say it may revolutionize the concept of flying, including in the U.S. military. VOA’s George Putic reports.
Video

Video As Japan Expands Defense Role, Protests Follow

The Japanese government is moving forward with a controversial security bill that would authorize the military to fight abroad for the first time since World War II. Leaders say it is critical to defend against rising threats from China and North Korea. VOA’s Brian Padden reports from Japan on the big changes ahead, and the opposition they are drawing.
Video

Video Replacing Poppies with Coffee in Myanmar

The remote mountains of Myanmar’s Shan state are home to the second-largest opium-producing region in the world. After a drop during the 2000s, production surged in the past eight years to feed an increasing demand for heroin in China. But farmers are now making less on the crop, and the U.N. is hoping many will make the switch to growing coffee. Daniel de Carteret reports for VOA from Taunggyi.

VOA Blogs