From The Washington Post
http://www.washingtonpost.com/wp-dyn/content/discussion/2009/04/10/DI2009041001303.html
Ken Menhkaus, professor of political science at Davidson College and an expert on Somalia and the piracy epidemic off its coast, was online Friday, April 10, at 2 p.m. ET to discuss the latest developments and ongoing negotiations.
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Ken Menkhaus: Hi, Ken Menkhaus here, I hope to help clarify questions on the Somalia piracy issue.
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Hartford, Conn.: Some questions about what happens after previously hijacked ships are released. How are the ransoms paid and the transfers converted to cash or other things of value? And what do the pirates do with their “booty?” It’s not like they can live in mansions and collect luxury cars on the Horn of Africa, can they?
Ken Menkhaus: Ransoms have usually been paid with cash airdrops and divvied up among the many, many local actors with a finger in this pie. The pirates and their financial backers use the money to build homes, get married, invest in businesses in Nairobi Kenya.
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Washington, D.C.: Because this was a U.S. ship, there will be calls now for the U.S.—and President Obama—to take more aggressive military action against the pirates - but really, shouldn’t we keep this in perspective? This is, after all, a relatively minor hindrance to world shipping, and absolutely no challenge to U.S. national security interests. The pirates have been surprisingly businesslike, generally not harming crews, and seeking “reasonable” ransoms. When you read that the reason ships don’t arm their crews against the pirates is that the cost of insurance would be greater than the ransoms, you know that these pirates have hit the sweet spot and are basically imposing a tax on shipping around the Horn. Sure, it’s illegal, but it’s hardly worth engaging the U.S. military in an misadventure in a failed African state. Or am I wrong?
Ken Menkhaus: I would tend to agree with you. The piracy problem off the coast of Somalia is real, and needs attention, but over-stating its impact on international trade and overreacting is likely to make things worse. The total ransoms paid last year, $20-40 million, is a lot of money in Somalia but little more than a nuisance tax for global shipping.
NYC: Is there any viable alternative for these former fisherman? Is it there isn’t enough fish left in their waters for them to make a living anymore (thanks to foreign commercial fisheries and governments which have dumped nuclear waste in their waters)? even if we came up with enough disincentives to deter future Somalian piracy, won’t we just be running these guys into the hands of al Qaeda and al Shabab? I’m interested in the bigger picture that hasn’t really been reported.
Ken Menkhaus: There are not many viable livelihoods for anyone in Somalia these days, but fishing is still an important and potentially lucrative sector. They can and do still fish (the dumping of waste is overstated, has not prevented int’l fishing trawlers from fishing in and around Somali waters). But it’s important to note that most of the pirates are not ex-fishermen, they are just gunmen.