Piracy, which has been raging off the coast of Somalia since 1990, has in recent years become a burning issue for the international community because it has caused a disturbing increase in attacks on commercial and passenger boats, thereby constituting a real threat to international maritime trade and security routes.
In 2010 alone, the total cost of ransom payments, military protection and cargo insurance incurred because of piracy was estimated to be between $12 and $17 billion. This number does not include the collective loss of income from commerce – an estimated $1.25 billion per annum – experienced by Egypt, Kenya, Yemen and Nigeria, Somalia’s neighbors.
An in-depth analysis of piracy reveals that it is no longer possible to blame it on Somalia’s being a “failed state”. The factors underlying piracy are far more complex.