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Treasure Flow of Somali Piracy

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on 21 January 2014

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Transcript of Treasure Flow of Somali Piracy

Context/ causes
How do we stop the continuing cycle?
Exploration of Somali Piracy
Gosse's Pirate Theory
Phillip Gosse- a pirate historian, came up with a theory to explain how piracy begins and continues to get larger.
It involves three stages.
Developed in 1932
Based on examples of piracy in the Atlantic in the 16th and 17th century.

Phase 1:
Inhabitants of marginal coastal regions
small scale
"Subsistence Piracy"
Phase 2:
Gains profitability
larger scale, more organized
Professional pirates put "subsistence pirates" out of business
Attack larger merchant ships
Phase 3:
Piracy "having virtually reached the status of an independent state."
Face to Face with a Somali Pirate
Most state that this stage is directly linked to poverty and lack of opportunity
Civilian Reaction
Military Intervention
Both the Local and International initiatives are linked
The fall of the government in 1991
civil war ensued
leading to initial problems that in turn triggered causes for piracy
"Piracy is the symptom of the break down of Somalia's political system" -CNN
Historically Somalia is a state of goods taxation.
Lack of government meant no coastguard to uphold fishing practices by both locals and international vessels.
Exploitation from Somali as well as non-Somali fishermen
Fishermen took it upon themselves to board small fishing vessels to receive tax for fishing on Somali waters
UN estimates that $300 million worth of seafood is taken illegally from the Somali coast
Taxing has historically been a key part of the Somali lifestyle
Fish was the predominant export before the ousting if the government (Somali's view fish as dirty food)
Piracy in Somalia is in transition between Phase two and three.
Before 2005 there were never more than 20 attacks a year.
The financial flow of Somali piracy.
Raid Organisers
Thin strait (18 miles across)
20,000 merchant vessels transit the Gulf of Aden
"Crime of Opportunity" J. Pham
Somalia has the longest coastline in Africa (Over 2,000 miles long)
On average receive $30,000-75,000 per hijacking
Bonuses for bravery and initiative
Deductions for food, khat, and crew mistreatment
Invest money into other trades.
Aquires equipment
Who will take part
Political Instability
Non existent in Somalia
Puntland 'show'- minimal as the government makes huge profit
Lack of desire to spend state money housing pirates
Only be prosecuted caught in the act, i.e no prosecution on land
An effort but states are unwilling to take pirates due to cost, lack of space
Kenya is more willing than most nations due to geographical reasons as well as an attempt to combat terrorist groups such as al Shabaab
There aren't that many local solutions as they benefit a lot from the piracy.
Economic growth
Inflation (influx of cash)
Three main naval forces
African Union troops fighting al Shabaab
"Piracy has always been a land based crime which happens to manifest itself at sea." J. Pham
Shared concern over possibility of terrorist state
Ties to al Queada
Private security teams
Average raid cost-$20,000
Pays for - weapons, khat, fuel, docking fees.
Somalis living abroad
Puntland government
militia groups
Paying ransoms
cheaper for the people renting the ships, it costs on average $20,000 a day to rent a ship
ransoms are cheaper
Paying ransoms depends more on cost rather than lives.
Still 159 hostages in Somalia
Raids profited $2.7million between 2008-2010
Recieve 30-50% of the ransom
Full transcript