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How does piracy in the Red Sea affect the whole international scenario?
SUEZ CANAL
HOW DOES PIRACY IN THE RED SEA AFFECT THE WHOLE INTERNATIONAL SCENARIO?
IMPORTANCE OF THE RED SEA
REGIONAL CONTENDERS
WAR TO WAR
Civil War
Colonialism
HISTORY
Cold War
Colonial Wars
and
II World War
Colonial Period
Italy
British
vs
Somali people
Barre Dictatorship
(1960-1990)
Somalia
Ethiopia
vs
Barre Dictatorship
U. S
USSR
Anarchy
THE HUMANITARIAN CRISIS
SITUATION
- 9th poorest country
- $200 GDP per capita
- 50% famine
- War and diseases
No Coast Guards
Foreign-unregulated fishing
Local militias
ORIGIN
Hijacking
2. Negotiation
Team
1. Assault
Team
Piracy
Seawater enclave in the Indian Ocean between Africa and Asia
3 minor strategic points
Suez Canal: direct route.
Oil output. Egypt.
Bab el-Mandeb Strait: 2 channels. It involves risk. Saudi Arabia's bridge for land based traffic.
SUEZ CANAL
RED SEA MAP
BAB
EL-MANDEB
REGIONAL
CONTENDERS
SAUDI ARABIA
US basis in Saudi Arabia: protection
SUDAN
Sudan: Turkey and Qatar interested in building ports (potential allies)
DJIBOUTI
Djibouti: 25% of the world's exports that flow into Asian and Mediterranean markets. Stable country: favors investment
Military bases + Russia's rejection (Syria's Civil War)
YEMEN
Saudi Arabia's bridge may aid Yemen's development.
Current civil war in Yemen.
EGYPT
Egypt controls the main geostrategic point in the Suez canal which is a way of connection with international powers such as Britain, France and the US.
China and India are pressuring the zone, they want to expand the commerce with America
Suez canal crisis of 1956 when the french and british invaded it.
Nationalization by then the leader Abdel Nasser, the geostrategic importance.
Many former colonial powers wanted to ensure free passage for their naval traffic.
How does piracy affect the regional and international environment?
a) Cost to Regional Trades
b) Cost to Food Price Inflation
c) Cost of Reduced Foreign Revenue
d) Reduction of World Trade
EFFECTS OF PIRACY IN THE INDUSTRY
Nigeria
- Over the last 50 years, Nigeria has lost between $300 and $400 billion because of oil stolen or wasted, as well as $600 million in export earnings due to piracy threats to its fisheries.
- Oil production in Nigeria has dropped by around 20% since 2006 as a result of piracy and other attacks.
Cost to Regional Trades
Seychelles
- Maritime attacks pose a direct threat to Seychelles's fishing industry by reducing its economy by around 4% of GDP every year.
- Impacts on fishery and other sectors are estimated to cost the Seychelles economy up to $10.5 billion per year.
Seychelles
Kenya
- Piracy indeed boosts up the price of imported goods by 10%, which has increased the cost of imports by $23.8 million per month, and exports by $9.8 million per month.
Kenya
How does piracy affect food price inflation in countries, such as Somalia and Mozambique?
Cost to Food Price Inflation
Somalia
- Food price inflation has serious financial and humanitarian impacts.
- National food shortages of basic goods, such as rice, flour, and sugar.
- In less than a month, piracy had caused the price of a 50 kg bag of sugar to increase from $30 to $34, wheat from $18 to $22, and rice from $25 to $28.
Somalia
Mozambique
Mozambique has faced the most rapid increase in food prices since November 2009, which has ultimately led to social instability, social unrest, riots, and conflict.
Mozambique
How does piracy reduce foreign revenue in countries, such as Egypt and Kenya?
Cost of Reduced Foreign Revenue
Egypt
- Around 10% of ships have opted to re-route to avoid the Suez Canal. So, it is estimated that Egypt could be losing up to $642 million per year as an indirect cost of piracy.
- The revenue from the Suez Canal has a direct influence in Egypt’s GDP since it accounts for around 3.2% annually.
Egypt
Kenya
- There has been an evident reduction in Kenya's tourism industry since foreign investment has reduced.
- For instance, the number of tourists visiting Mombasa by cruise ships between January and April 2010 declined by 95%.
Kenya
Global Cost of Piracy
Reduction of World trade
How is world trade affected by piracy?
- The reduction ranges from 1%, between the Rest of the World and Brazil, to 27.4% in the trade route between Singapore and the EU.
- Thus, the loss of world trade is roughly $80 billion US Dollars annually. China and the EU are the most affected, and Brazil and Australia the least in absolute values.
World Trade and Piracy
However, how is the European Union affected by this issue?
- As China is turning to the Japanese and US markets, then the EU has suffered heavy losses of $11.3 billion USD due to the reduction in trade with China.
- A voyage from Europe to the Far East can be extended from as long as 15 to 20 days by taking the Cape of Good Hoope. This adds at least $74.4 million USD in fuel costs and $14.6 million USD in shipping expenses.
EU and its consequences
Measures Against Piracy
SOLUTIONS
- Lack of witnesses
- Lack of proof
- Lack of cooperation
UN
- Creation of several resolutions in that condemn acts of piracy and robbery, and allow countries to collaborate
- Help Somalia establish a better government and measures to end illegal fishing activities
IMO
- International Maritime Organization
-
-Publishes monthly, quarterly, and yearly about piracy that help evaluate the situation
- Djibuti Code of Conduct:
- Improve communication
- Improve relations to end piracy
- Increase awareness
INTERPOL
Operation Atlanta or EU NAVFOR
- Create an album with alleged pirates with information about them as well as prints
- Protects vessels from World Food Programme, African Union in Somalia, amongst other vulnerable shipping
- Monitor fishing activities in Somalia
UKMTO
- United Kingdom Marine Trade Operations
- Is the organism attacked ships report to the first
- Ships entering the Suez Canal usually report their positions to them, as a preventive measure
UKMTO
Private Sector
Private sector
- It tries to raise awareness and inform about preventive measures against piracy
- Pirates are constantly changing their procedures so it is hard to keep up with them.
References
- Ibáñez, G. Fernando., (2011). La amenaza de la piratería marítima a la seguridad internacional: El caso de Somalia. Universidad de Zaragoza. Retrieved from: https://publicaciones.defensa.gob.es/media/downloadable/files/links/P/D/PDF88.pdf
- Bennici, J., Palarino, R., & Georgetown University. (2011). Maslow's hierarchy of needs: A failed state and somali piracy threat assessment: Criminal deviance or maritime terrorism. Retrieved from: https://ie.on.worldcat.org/oclc/867151737
- Schofield, C. (2009). The other 'pirates' of the Horn of Africa. (RSIS Commentaries, No. 002). RSIS Commentaries. Singapore: Nanyang Technological University. Retrieved from: http://hdl.handle.net/10220/4691
- Ishaan Tharoor (2009, April. 18). How Somalia's Fishermen Became Pirates. TIME. Retrieved from http://content.time.com/time/world/article/0,8599,1892376,00.html
- Quy-Toan Do, Lin Ma and Claudia Ruiz, (2016, July). Public versus Private Protection against Crime, The Case of Somali Piracy. Policy Research Working Paper 7757 (p.1-11). Development Research Group, Poverty and Inequality Team & Finance and Private Sector Development Team from World Bank Group. Retrieved from: https://openknowledge.worldbank.org/bitstream/handle/10986/24838/Pirates0of0Som0nce0on0the0high0seas.pdf?sequence=4&isAllowed=y
- Bowden, Ana (2010) “The Economic Cost of Piracy.” Retrieved from: http://oceansbeyondpiracy.org/sites/default/files/attachments/The%20Economic%20Cost%20of%20Piracy%20Full%20Report.pdf
- Oceans Beyond Piracy (N.D) “The Economic Cost of Piracy.” Retrieved from: http://www.ics-shipping.org/docs/default-source/Piracy-Docs/the-economic-cost-of-piracy.pdf?sfvrsn=0
- Aliboni, R. (2016) The Red Sea Region. Local actors and superpowers. Retrieved from: https://scholar.google.es/scholar?hl=es&as_sdt=0%2C5&q=Importance+of+the+red+sea+geopolitics&btnG=#d=gs_qabs&u=%23p%3DC_P6hQcPsYIJ
- Ehteshami, A. et Murphy, E. (2011) The international politics of the Red Sea. Retrieved from: https://scholar.google.es/scholar?hl=es&as_sdt=0%2C5&q=Importance+of+the+red+sea+geopolitics&btnG=#d=gs_qabs&u=%23p%3DJgcFmVM8_ZUJ