Courtesy: "Spiegel International, Germany", 18 May 2011
The Booty Business
Price Tag for Somali Piracy Surges
International piracy is emerging as a market in its own right, one that cost the global economy an estimated $8.3 billion in 2010. Efforts to contain the problem are having little impact, and the costs of lost booty, ransom and other costs associated with pirates could double within a few years.
Pirates of yesteryear have been romanticized in literature through books like "Treasure Island" and in films like "Pirates of the Caribbean". But the modern day piracy off the coast of Somalia is no swashbuckling fun and adventure. It is an expensive and dangerous problem that is escalating at an alarming rate.
Piracy cost the international economy up to $8.3 billion last year and "has emerged as a market it its own right," states a new report by political and economic intelligence consulting firm Geopolicity. Already in the first quarter of 2011, Somali pirates have attacked more than 117 ships, killed 7 crew members and held 338 hostages for ransom, the study finds. But international efforts to scupper the problem are failing, and it is predicted that piracy-related costs could more than double in just the next three years.
The Booty Business
Price Tag for Somali Piracy Surges
International piracy is emerging as a market in its own right, one that cost the global economy an estimated $8.3 billion in 2010. Efforts to contain the problem are having little impact, and the costs of lost booty, ransom and other costs associated with pirates could double within a few years.