1

Jack J. Cullo

Mr. Palcsey

H. English

April 29, 2018

Terrorism at Sea: A Fisherman’s Story

In 2009, the ancient terrorism of the sea, piracy, took center stage in the national media.

Somalian pirates hijacked the Maersk Alabama. This marks the first time in over two hundred

years that a United States cargo ship has been stolen by pirates. The military took immediate

action, killing almost all of the pirate crew, and the successful return of the cargo ship. The world

of modern piracy continues to grow and evolve in the underdeveloped state of Somalia. The

ongoing practice of increasingly efficient piracy has dramatic economic effects across all of the

world: from the citizens of Somalia, international world powers, and local neighbors like Kenya

and India. Modern Piracy is an economic crime that hurts all countries across all levels of

development. Piracy negatively impacts strong economic powers such as Europe and the United

States, while actually having very few economic advantages for the local economy of Somalia.

"Pirates have been around for a long time almost since ships first sailed the sea" (Bott)

Piracy is a crime almost as old as time. Piracy first emerged around the Bronze Age, in the

Mediterranean Sea, around the emergence of the trading empire of Minoan Crete. Poor

fishermen on the coast were looking for new and alternative sources for money. The influx of

trade that happened across all of Mediterranean Sea from the empires of Persia and Egypt
 2

provided an obvious access to all that money. Piracy continued to evolve as trade evolved,

reaching its peak with the establishment of regular seafaring trade. The discovery of the New

World brought many different avenues for pirates from lucrative slave ships. Small colonies in

the Americas, that had corrupt governments, especially the Governor of New York, supported

the pirates.

England in the 1400’s was a poor country, under the oppression of the supreme empire of

Spain. Spain was profiting greatly from its many colonies in South America. It grew into an

unstoppable economic powerhouse, financed by boatloads of gold and silver. Fear of an invasion

and a sense of impending oppression lead the Queen of England to turn to criminals for hire

privateers. (Botts) The privateer used guerrilla-like tactics, hijacking and then sinking the boats,

thus successfully evading the powerhouse of Spain. Such terrorists acts of piracy often expand

during circumstances of oppression and suffering. During the peak of the Spanish Empire,

England was vulnerable.

In the modern era, the fishermen of Somalia suffered greatly, both socially and

economically, after the Blackhawk Down episode. Blackhawk Down lead to the destabilization

of the Somalian government, leaving its coast as open ground for illegal fishing. Yemen

fishermen quickly took advantage, virtually taking over the Horn Africa until they ruined the

area. They over-fished the sea until it was depleted. The overfishing in the Horn of Africa was

responsible for not only the collapse of the fishing industry, but left Somalians without the main

food in their diet. Fishing was more than an occupation in Somalia, it was a tradition, a way of

life. Many Somalians grew up fishing, and knew no other way of life. The lack of education,

coupled with the loss of their livelihood, led many to desperate measures.
 3

Mushi is a former fisherman who turned to piracy. He describes his decision to become a

pirate as his only choice. Mushi says “he became a pirates simply because of poverty and lack of

opportunity" (Beloff 47) In 2004 more tragedy struck Somalia in the form of a Tsunami. The

Tsunamis brought devastation to the developing country of Somalia, as noted by researcher

Beloff, “This natural disaster caused the deaths of an estimated 289 people in Somalia, and the

economic damage was much greater than in any other part of Africa.” (48) The Tsunami

wrecked local businesses, destroyed fishing boats, and tore apart families. Many citizens, rich

and poor alike, turned to the complex criminal activity of piracy.

The organization of piracy is dependent on key relationships between local Somalian

businessmen and Pirates. Without one or the other, the system will falter, and the system of

piracy will simply cease to exist in any impactful manner. The local businesses are the financiers

who back up the pirates and fund their hijacking and plundering. Beloff estimates that “The

average operational cost for the pirates is close to $300,000” (47) These funds help provide

pirates with supplies, such as: guns, speed boats, food, GPS systems, and other smalls tools. In

short, it procures everything that is necessary for pirates to successfully hijack a ship. Placing a

debt upon the pirates keeps the corrupt system going. The pirates must then return about thirty

percent of the profits to the financiers, who in return must give back to the government about

thirty percent of the revenue create through the financiers. Ultimately, the organization of piracy

is corrupted to heavily favor the local businessmen. Once a ship is seized and driven back to one

of the coasts of Somalia, the negotiations begin. During the negotiations it the duty of pirates to

purchase the necessary food to sustain the hostages. The money spent on the hostages comes out

of the pirates’ expenses, rather than from the financiers of the pirates. Everyone is vested in

quick action, the longer the negotiation, the less the pirates make from any ransoms that are
 4

collected. (50) In an ironic twist, a significant amount of the finances spent by the pirates profits

the local business that sell the foods needed for the hostages. Since the demand for food is

always at a premium near the ports, the pirates’ activities will cause the local businesses to

upcharge for all food items, causing even more stress to the pirates’ bottom line. This corrupt

organizational system mostly benefits corrupt business owners in Somalia.

The financers apply their profits generated through collected ransoms in three distinct

ways. Money is reinvested for future ransoms, pirates, and bribes. Money supports and funds

corrupt local governments, Warlords, and terrorist organizations. Finally, the third way is to give

back, and reinvest in the community. The investment in terrorism has a significant economic

effect on the international level. The United States alone spends billions of dollars to counter

terrorism such as piracy. In areas where this kind of terrorism activity is high there are negative

economic effects, destruction of property, and loss of human life. The overall effect of the

financiers’ investment of money gained from piracy continues to have severe negative effects on

an international level. On the local scale, the economic cost is more debatable. On one hand it

appears to have some positive impact, as evidence shows that local warlords and financiers do

use the money to build mosques and schools. This improves the local infrastructure and the lives

of people in the community, without increasing the cost of government taxes on the local people.

The schools help educate a broader public, supporting the Somalian economy further in the

future.

Yet, if the basis for growth is foundationally corrupt and destructive, it cannot ever

provide long-term growth and stability. The money that flows in this situation supports corrupt

governments, funds piracy, and props up warlord regimes. This creates chaos across the state of

Somalia, destroying infrastructure, destroying lives, and overall hindering any real progress
 5

made to improve the Somalian economy and stabilize the government. Despite having the

longest coastline in Africa, and many beautiful beaches, Somalia earns zero profit from tourism.

Somalia is ranked as one of the worst places to travel. Their own citizens are not safe, certainly

no westerner or American is safe in Somalia. The government is corrupt. Local governments are

corrupt. There are ongoing boundary disputes and religious differences. The latest terrorist

events in 2017 resulted in 350 deaths. Both the land and the sea are dangerous, destructive of

goods and products, and threatening to human life.

After Somalian pirates secured their future by repaying their depts and mortgages, they

look towards luxury, rather than community. Unlike many assumptions the motives is not solely

on survival as Belofff explains “The extra amount of money is not use for survival or the

community rather on luxury goods: cars, houses, electronics, and western gadgets.” (47) While

bring in this money into the local economy may seem like a positive to stores, business, and

people of Somalia, but in reality comes major downfall foe the locals of Somalia. None of money

earned by pirates are taxes preventing it from benefiting the community. It also disturbs the very

structure of economic, creating an imbalance in supply and demand. This especially prevalent in

the Real Estate, as housing industry is equipped nor able to keep up with growing demand of

pirates looking to show up. Overall the community does not benefit from pirates' large illegal

salary; food price rise and wage decrease in town that is filled with pirates. (Beloff 49) Making

the lives of all commoners who live in Somali, that much difficult, they be unable to compete the

market price demand and forcing business to accommodate to pirates willing to pay big bucks.

Beloff summarizes benefits of local lifestyle as “Pirates might be better off. However, their

benefits do not trickle down to average Somali.” (51) While Pirates do bring life and money into

the economy, strengthening local business and black markets, but at same time making the
 6

lifestyle for locals harder: cheap labor, and expensive prices. Local economy dose increases but

wage gap between pirates and elites and commoners is extremely severe.

Just outside the borders of Somalia are its close neighbors, who face severe and

unnecessary economic and social consequences. Kenya borders resides just south of Somalia and

its coast share same as the Somalia: the coast of Horn of Africa. One major piece of Kenya’s

GPD is tourism, as explain by Thaddeus “Even though Africa’s tourism is not as developed as

that of other regions, in 2011 it contributed 7 percent to the region’s GDP, directly supported 2.4

percent of total employment, and generated 6.1 percent of total investment in the region” (16)

The unrest and dangers of pirates put Kenya at risk for losing vital industry in country: tourisms.

Individual ransom is often practice by pirates, in 2010, pirates attack inland of Kenya kidnapping

two British tourist from inside luxury resort and holding them hostage While trends of tourists

have not decreased since the rise of pricey in early twenty-first century, the high-income tourist

have decrease. (Thaddeus 16) While piracy can not be directly link to Kenya tourisms the

dangers of pirates and bad publicity it produces can not help tourisms. “Beatrice Kiraso, the East

African Community (EAC) Deputy Secretary General in charge of political integration, referred

to the increase of piracy as posing a threat to East African peace and security and having a

negative impact on tourism growth” (Thaddeus) India is the closest economic powerhouse to

Somalia, as piracy continue to be uncheck, it draws ever closer to coast of India. This

endangering to India as it put them at risk of losing of investor and stakeholder who help sustain

trade and it economy. This is because India’s trade consists of some most valuable resources:

petroleum products, gold, gems, and jewelry, machinery and instrument, coal, and briquette.

Create a large target that hard to be replace by business and corporations. (Shalka, Bowden 32-

33) Piracy affect on local neighbors, is overall negative, it not necessary because of direct attacks
 7

by pirates by but by stigma around it. It creates uncertainty of safety of tourist and reliability of

cargo shipment making tourist and businesses equally wary of doing commercial activity near

the Horn of Africa.

Pirates accommodate for large economic losses and price for international business

commerce in Horn of Africa. When a commercial ship taken hostage, it brought to shore of

Somalia it here way the negotiation. The ransoms price in recent years has increase as the attack

have decrease, it cost up to “160 million dollars in 31 attempted” (Shalka, Bowden 3) the

economic cost of hostage is more than ransoms the physical cost includes: the total cost of piracy

in regards of ransoms include not only ransom amount, but also transportation of money, damage

caused to the vessel the cost of negotiators, consultants and lawyer fees, and psychological

trauma counseling for crew members after the attacks. The indirect effect is cost on delayed trade

disturbing the traffic of money it also can lead to delay construction project and rotten food

products. The indirect is impossible to exact calculate but it clears it has negative effect on

business commerce. The most widely use tactic against pirates is military action which costing

county lots of money to patrol the Horn of Africa. The military presence officially makes the

Horn of Africa a war zone this put even more fines and expense: Shalka and Bowen explain.

"seafarers are eligible for double pay when they transit the HRA" (21) and since it in an war zone

the ships are mandatory to pay a fine for traveling through. Overall Shalka and Bowen predicted

In 2011 Business took responsibility on 80 % ($5.3 and $5.5 billion) of the international cost of

piracy (3) International business receive many negative both direct and indirectly from the

ransoms of piracy creating many financial risk and cost to travel through Somalia and Horn of

Africa.
 8

Piracy throughout history has been connect through economic oppression, accesses to

water and corrupted government who either compile or support piracy in the open sea. Piracy

poisons the Seas of Horn of Africa placing economic strains on the international community. On

local scale industry and economy are imbalance by pirates raising the cost living for hardworking

locals. The most victimize by Piracy is Somalia itself.

 9

Work Cited

Beloff, Jonathan R. “How Piracy is Affecting Economic Development in Puntland,

Somalia” Journal of Strategic Security Vol 6 Number 1 Article 7. Henley-Putnam University,

Spring 2013. Pg 47-55

Buschewski, Arne. “PIRATES, SLAVERS, AND THE INDIGENOUS POPULATION

IN MADAGASCAR, C. 1690-1715*.” The International Journal of African Historical

Studies, Boston University, 1 Sept. 2005, www.questia.com/library/journal/1P3-

1016504511/pirates-slavers-and-the-indigenous-population-in.

Pitt, Steven. “Pirates, Merchants, Settlers, and Slaves: Colonial America and the Indo-

Atlantic World.” The SHAFR Guide Online, 2015, doi:10.1163/2468-

1733_shafr_sim020080006.

Shukla, Sharad Kumar, and Anna Bowden. “The Economic Cost of Piracy in 2011.”

Indian Journal of Applied Research, vol. 4, no. 5, 2011, pp. 370–373.,

doi:10.15373/2249555x/may2014/111.
10
11