Somali pirate town Boosaaso. (Photo: Jehad Nga/The New York Times)Who’s making money from the piracy that’s flourishing off the coast of Somalia?
The pirates themselves seem to be raking it in. As the Guardian reports, pirates have made about $30 million from ransom payments this year, according to U.N. estimates; and they are demanding $25 million for the return of their latest capture, the Saudi supertanker Sirius Star.
Increased piracy also provides a welcome revenue stream for private military contractors like Blackwater Worldwide. As Wired reports, Blackwater hires itself out like mercenaries of centuries past to protect ships against pirates. Anti-Piracy Maritime Security Solutions, for example, charges $30,000 per boat for its piracy protection, according to NPR.
Another piracy profiteer: coastal Somali villages.
In the Somali fishing town Eyl — the “piracy capital of the world” — the local economy is booming, thanks to the 12 foreign ships being held hostage off its coast by hundreds of pirates who bring their business — using plundered money — to the village.
New businesses in the town, including hotels built to accommodate pirates, are dependent on its criminal economy. The Guardian quotes one of the town’s tea vendors:
When the pirates have money, I can easily increase my price to $3 for a cup.
It is good to see that inflation is alive and well somewhere.
and 
. You can also watch it on 
Just a matter of time before pirate attire becomes fashionable among hipsters…
Unfortunately due to maritime laws these ships are not allowed to have armaments. I think they should modify the law to allow armaments in international waters but must be stowed by the time they reach non-conflict national waters. this would make these pirates weigh the cost/benefit of their actions a closer. Just picture a super-tanker with .50ca guns mounted on the railing, those AK47s will seem whelpish in comparison. As well a .50ca would sink these fishing vessels within a few shots.
The good side of this increase in piracy that we should consider is the potential impact on global warming.
http://www.venganza.org/about/open-letter/
I blame the liberal media for not focusing more on this potential upside.
Another site I follow posted a link to the ICC Commercial Crime Services Piracy Map for 2008. The map has reports on every piracy instance in 2008.
http://link.veryshortlist.com/r/J4DR9G/VGJ6/FKA7U/ZBV7V/LA3W/7V/h
This is going to end badly for the pirates.
This may be India’s opportunity to project power and establish itself as a legitimate super power in the region. Whether it is the Indian Navy, or other nations’ navies, someone is going to clean house on the pirates.
My own brother works on a boat called the Indian Empress, which is currently in Malta. They had the objective of leaving Malta and to pass the Somalian Territory in order to get to their destination, and they haven’t because his boss is too afraid of doing so. This is obviously causing extreme negative consequences for they aren’t getting their objectives done.
My brother told me once that they were passing by the Somalian Territory and pirates surrounded them on their radar. Because the Indian Empress is an enormous boat with a lot of power, they had the ability of leaving, but another French boat behind them was taken over completely; nobody was killed but their boat was taken and they were left stranded.
What I believe should be done is obviously a betterment in the Somalian political and economic policies — other major powers should assist them in order for them to achieve a more peaceful environment. All in all, I don’t want my brother to be harmed, at all!
Clearly the solution is to raise the cost of pirarcy to the level where it is no longer profitable. Typically that is done just as the Indian Navy has. Others need to follow that example.
The problem with suggesting that the world’s navies will solve this is that they are as toothless in action as UN forces. Rules of engagement make it hard to do anything. India was only able to sink that ship because they claimed they were being shot at (by AK47s over a mile away). US, British, and Russian navies would have put the captain under review for firing back when there was no actual danger. India is kind of looking the other way on this.
Solution is some drone-boats with cameras. As soon as the pirates shoot at it, blow them out of the water (self-defense). Of course, it does not help that they just speed away in their inflatables (as happened after India sunk the mother ship), so they are back at it the next day. You also need a plan for capturing them.