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"Robin Hook": The Developmental Effects of Somali Piracy

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  • Anja Shortland

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Abstract

Naval counter-piracy measures off Somalia have failed to change the incentives for pirates, raising calls for land-based approaches that may involve replacing piracy as a source of income. This paper evaluates the effects of piracy on the Somali economy to establish which (domestic) groups benefit from ransom monies. Given the paucity of data on Somalia, we evaluate province-level market data, nightlight emissions and high resolution satellite imagery. We show that significant amounts of ransome monies are spent within Somalia. The impacts appear to be spread widely, benefiting the working poor and pastoralists and offsetting the food price shock of 2008 in the pirate provinces. Pirates appear to invest their money principally in the main cities of Garowe and Bosasso rather than in the backward coastal communities.

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Bibliographic Info

Paper provided by Centre for Economic Development and Institutions(CEDI), Brunel University in its series CEDI Discussion Paper Series with number 11-07.

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Length: 37 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:edb:cedidp:11-07

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Cited by:
  1. Anja Shortland, 2010. "The Business of Piracy in Somalia," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 6(23), pages 182-186.
  2. Maystadt, Jean-Francois & Ecker, Olivier & Mabiso, Athur, 2013. "Extreme weather and civil war in Somalia: Does drought fuel conflict through livestock price shocks?," IFPRI discussion papers 1243, International Food Policy Research Institute (IFPRI).
  3. Tim Besley & Thiemo Fetzer & Hannes Mueller, 2012. "One Kind of Lawlessness: Estimating the Welfare Cost of Somali Piracy," UFAE and IAE Working Papers 898.12, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Anja Shortland & Sarah Percy, 2012. "Counter-Piracy in Somalia: Help or Hindrance?," CEDI Discussion Paper Series 12-03, Centre for Economic Development and Institutions(CEDI), Brunel University.

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