Recent Study Shows Piracy Contributes to Somalia's Development

By MarEx 2012-01-16 11:45:33

Recent reports have confirmed that piracy contributes to the development and economy of Somalia. The Royal Institute for International Affairs in London revealed their survey that states that piracy does boost Somalia’s cities’ economies, while coastal villages remain in decay. This may be the reason why regional authorities do not hinder piracy developments on purpose.

Satellite photos of the country were studied by region. There was a higher light emission out of cities like Bosaso, proving that there is a higher average use of electric appliances in that area. This area is also the center of Somali piracy. The aerial depiction also showed that the cities’ area has increased, as well as their build-up environment. Income from piracy operations apparently go to regional centers which contribute to developments.

Since 2007, pirate money led to a real construction and consumption increase. On the other hand, coastal settlements need extreme social and economic aid if there is any hope to stopping piracy as a criminal business in the area. According to the study, no outside force or economic incentives will help until order is restored in Somalia.

The average income of a Somali resident is about $500 per year, while pirates can make up to $70,000 annually. Regional authorities also gain profit from weapon sales and piracy. However, these actions cost over 10 billion dollars worth of damage to the overall global economy.

The UN has set up a special contact group to improve the international legislation in the battle against piracy. Russia, part of this effort already, has proposed creating a special international criminal court to try pirates, as current laws lack adequate punishment. 

View the official report here.