by Ted Sherman

Created on: April 19, 2009

As in any conflict, there are two disparate economic factors in the current glut of piracy, today primarily in the Atlantic Ocean off the Horn of Africa. There are the merchant ship owners on one side, and the pirates, mostly natives of Somalia, on the opposing side. The common factor is money.

One reason why Somali pirates raid ships, hold hostages and demand ransoms is that they come from a war-torn, lawless country, where there has been no effective central government nor viable economy for at least the past 20 years. The average annual income is $600 a person, and with high unemployment and virtually no hope for improvement, young Somalis have been easy recruits for the clans and gangs that rule the land.

The clans have progressed from intimidation, political murder and drug running to a much more lucrative way of making money. Piracy. Today, a successful pirate can earn several hundred thousand dollars a year as a share of the loot. This is an economic miracle for young men who come from one of the most poverty-stricken countries of the world.

The piracy operations have been very successful during the past several years. With the exception of the recent U.S. Navy rescue and several other minor setbacks, the Somali pirates continue to reap several billions of dollars a year in ransoms and tribute.

On the other side of the economic picture are the shipping companies. Because of modernization, containerized loading and automatic features, many of the large cargo ships need only small crews of from 20 to 30 seamen. Thus, a fast speedboat with only five to ten heavily armed pirates can climb aboard the huge ships and capture the crew and cargo.

Another economic factor is that the shipping companies are often willing to pay several million dollars in ransom to free a ship and crew. The pirate threat has become so prevalent now, Somali pirate leaders often intimidate millions from shipping companies in tribute merely by threatening to capture their ships.

As for the economic future of the Somali venture, the recent U.S. Navy action may be just the beginning of organized fighting back against the pirates. Although the areas where the pirates operate are vast, recent reports indicate modern navies, including those of the U.S., Great Britain and France, will form multi-national air and sea forces. With sophisticated equipment and armaments, they'll seekt and destroy the illegal operations wherever they can find them. Additionally, as was the practice in World War II, merchant ships may begin travelling the troubled waters with heavily-armed military guards aboard.

Piracy is nothing new in history, dating back to ancient Greek and Roman times and earlier. The fictionalized concept of the Long John Silver, Sir Francis Drake and Captain Blood era of the 1700s and 1800s has too often perceived piracy as romantic myths.

There never was anything remotely romantic about sea-going criminals who murdered, held for ransom and robbed. It's certain that today's Somali pirates are just as much of a scourge as any pirates of the past. Only the cooperation and determination of nations and shipping companies can drive them from the seas.

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