Posted: March 26th, 2024

Addressing the root causes of piracy: Poverty and lack of economic opportunities in coastal communities

Addressing the root causes of piracy: Poverty and lack of economic opportunities in coastal communities
1. Introduction
If poverty in coastal communities is one of the key drivers of piracy, the most logical question is to ask why it is that in some places the poor use piracy to improve their income while in others they do not. What are the most important factors which explain differences between these types of communities and how might international interventions be designed to help steer the poor in more marginal communities away from engaging in piracy? This research seeks to address these important questions in order to help policy makers and aid agencies to design more effective forms of assistance to poor coastal populations and thereby reduce the level of piracy in the long term.
The research will thus seek to make an important contribution to the broader debate on ways to address the root causes of piracy and other forms of maritime crime. While substantial progress has been made in recent years in reducing the incidence of piracy in some parts of the world, it remains to be seen whether the international community can create and sustain conditions in many poor countries which will prevent a resurgence of maritime crime in the future. Given that piracy is often a symptom of wider governance and development problems, finding ways to reduce its incidence in the long term may depend on efforts to address conditions in coastal communities in the hope that this will reduce the propensity of individuals to turn to maritime crime.
Finally, the research will be of interest to a wider academic audience in the field of criminology and in the burgeoning field of research on the relationship between crime and development. While some progress has been made in recent years in trying to understand the nature of contemporary piracy and to evaluate the international response, there has been relatively little research on the specific social and economic dynamics which make some communities prone to engaging in maritime crime, and which strategies might be used to steer them onto a different path in the future. By shedding light on these important issues, the research may be able to provide some useful insights into ways to prevent the incidence of piracy in various parts of the world.
1.1 Background
Over the past decade, high seas piracy has re-emerged as a serious threat to international security. The problem is concentrated around the waters of Southeast Asia and the Indian Ocean. However, acts of piracy are committed in various other parts of the world. The economic costs of piracy are enormous. In addition to the estimated US$16 billion dollars in global trade losses that piracy cost in 2003, acts of piracy increase shipping costs, insurance premiums, and generally make maritime transport riskier and more time consuming. A recent study estimates that piracy increases the cost of imported cars sold in the United States by US$200 each. Although harmful, the economic costs are but a small fraction of the problem. Acts of piracy endanger the lives of innocent seafarers and their cargo and can damage the marine environment. In the Straits of Malacca, pirates have boarded oil tankers and disabled the ship’s communication equipment before siphoning off hundreds of tons of oil into waiting barges. This type of piracy poses a great risk to the marine environment and a large oil spill could potentially completely close the heavily traveled Straits. An additional and serious threat of modern piracy is the connection with terrorism. The International Maritime Organization’s IFC and the United States’ 9/11 Commission have both expressed concern that terrorist organizations could potentially ally with pirates to carry out attacks on vulnerable targets at sea. Steps to eradicate the root causes of piracy and prevent further acts of piracy are outlined in research presented by this paper.
1.2 Purpose of the Research
To be more specific, the purpose of this research is to understand the assumption that poverty is a significant cause of piracy by exploring (1) various features and causes of piracy revealing what factors could lead to involvement in crime by pirates, and (2) the strict economic model that leads to this situation. This should clarify the true nature of the relationship between poverty and piracy. It is hoped that a better understanding of the economic root causes of piracy will contribute to a rethinking of the strategies employed to prevent piracy. The research will, to this end, show that while it is widely believed that poverty causes piracy, in fact, the economic opportunity created by the current system of law in sea areas, exploiting lax law enforcement in those areas, provides just the kind of “job” that the poor in those areas either on land or in other occupations in sea areas come to feel is the best option available to them at the time. Should there be a change in economic opportunities in sea areas, it is highly probable that the poor would not turn to piracy given the severe risks involved in piracy compared to legal labor in an undesirable job.
1.3 Scope of the Research
In terms of depth, the research will focus on addressing the socio-economic factors in Somalia and raising the discussion of how piracy is a symptom rather than a problem in itself. The research will introduce an understanding of the violence and crime being used in taking advantage of the situation of the coastal communities, and the research will delve deeper into understanding the mind of these pirates. However, understanding why people are driven to piracy in Somalia is an area that can only be researched through much deeper involvement in the community where time can be taken to gain trust and an honest understanding of the problems that lead to piracy. This is the sort of research that needs to continue postgraduate, and as UNPOS internship was the inspiration for this research, it is hoped the opportunity to return to Somalia will surface. It is not expected that there will be a quick fix to the situation in Somalia, and this research aims to be part of the discussion that eradicates the need for future maritime security in the region.
2. Understanding the Root Causes of Piracy
This section of the essay establishes the root causes of piracy in coastal communities. It argues that proven success in reducing and ameliorating piracy is most likely to be achieved by addressing the fundamental root causes of piracy in those communities. The root causes of piracy are explored using the example of the piracy in the waters off the coast of Somalia. This case study was chosen not only because it is a recent and ongoing example of piracy in coastal communities, but also because it is an example of a great modern case of a type of piracy that is a result of developing countries attempting to deal with the effects of economic globalization. This case exemplifies the problem regarding the root causes of piracy. A problem which if rectified could mean that the type of piracy seen in modern Somalia would simply cease to exist.
An abundance of literature exists debating the actual definition of piracy, and there are many differing views as to the legality of acts committed at sea, particularly when those acts are committed on the high seas or outside of any country’s territorial waters. Usually the definition of piracy is drawn from the 1982 United Nations Convention on the Law of the Sea, which states in article 101 that piracy consists of any of the following acts: any illegal acts of violence or detention, or any act grounded on private ends committed by the crew or passengers of a private ship or a private aircraft, and directed on the high seas, or outside any country’s territorial waters, against another ship or aircraft, or against persons or property on board a ship or aircraft.
2.1 Definition and Types of Piracy
Piracy is a specific form of robbery or criminal violence at sea. It is committed by the crew or the passengers of another ship or aircraft against another ship, aircraft, or against persons or property on board such ship or aircraft, and in the case of the robbery of a ship, aircraft, or the forcible detention of a ship or aircraft, with the intent to commit theft or any other crime of violence. The various acts of piracy have been committed throughout history and are still conducted today. They can be broadly classified into several categories. These include:
– Pirate attacks and armed robbery against ships
– Smuggling
– Terrorism
– Illegal fishing
In the contemporary international community, it is the first category (pirate attacks and armed robbery against ships) that most consider as constituting the “real” piracy, and it is this form of piracy which may be said to pose a significant threat to international sea trade, and by extension, global economic development.
2.2 The Impact of Piracy on Coastal Communities
Due to the unregulated and often violent nature of piracy and its impact on global trade, it is safe to say that piracy has a negative effect on any coastal community involved in the practice. However, the areas worst affected are those already entrenched in poverty. An example of this is the current state of Somalia, a country ravaged by decades of conflict and extreme poverty. With no functioning government or military to speak of, Somalia has become a safe haven for pirates who operate all along the coast. In recent years, there have been an average of 200 attacks per year on the Somali coastline, with a large percentage of them being successful. This has led to a sharp increase in the cost of importing goods into Somalia as merchants seek to protect their investments. Additionally, the pirates have been known to steal food aid after hijacking more modest vessels, further driving up the cost of food and water for the average Somali. With unemployment in Somalia already at an estimated 70%, it’s clear that piracy has made a bad situation worse.
As seen in the preceding section, piracy has evolved substantially over time, but the motives persist. Many pirates, both modern and ancient, are driven to the trade due to a lack of economic opportunity and/or extreme poverty. Because a significant amount of piracy has occurred in developing nations, it is logical to assume that most of the money generated is going to individuals rather than being reinvested into the community. That being said, some piracy involves hundreds or even thousands of people, and this requires a degree of organization. Much of the money generated from larger scale piracy is often used to fund various militias and insurgent groups in ongoing civil wars. Even legitimate governments have been known to use pirates to do their bidding. An example of this would be the hired privateers sanctioned by the English government in the 16th century.
2.3 Poverty as a Root Cause of Piracy
Poverty is a situation in which an individual or community lacks the financial resources and essentials to enjoy a minimum standard of life acceptable in society. It is one of the main causes of piracy in coastal areas, where the standard of living is often low compared to inland communities. Because of their poverty, the prospect of obtaining money, food, and provisions through piracy is often attractive to members of the community. A study of fishing communities in Indonesia found that the “decisions to engage in acts of piracy are often linked to a desire for everyday and future economic security.” The study identified the need for “making ends meet” as an important motivational factor in deciding to pursue a pirate career, indicating that poverty and insufficient income from existing employment may be catalysts for piracy activity. A similar trend is noted with regards to Somali pirates, who often hail from poor fishing villages along the Somali coast.
Communities in coastal areas often experience a lack of infrastructure and basic services compared to their inland counterparts. The coastal areas tend to be geographically isolated from centers of government and trade, and this isolation also results in the neglect of the needs of coastal communities and exacerbates their poverty. A lack of government services and support can foster a sense of grievance among coastal communities. In Indonesia, the government’s inability to prevent illegal foreign fishing vessels from exploiting Indonesian fish stocks has caused economic losses and unemployment in fishing communities. This situation has led to resentment and in some cases violent resistance by Indonesian fishermen against foreign fishing vessels in Indonesian waters, one form of which is piracy.
2.4 Lack of Economic Opportunities as a Root Cause of Piracy
The limited economic opportunities in coastal communities often provide a strong motivation to join in acts of piracy or banditry. These activities can offer young men especially, a means of providing for themselves and their families. For those who see little to be gained from the more traditional coastal industries, piracy represents an enticing and upwardly mobile career path in many areas. As one former fisherman turned pirate in Somalia put it, “We just want to get rich.” The ability for an individual act of piracy to secure advance the pirate’s economic position is also deeply significant when compared to potential earnings from fishing or other traditional coastal livelihoods.
In the majority of cases, piracy is seen as a rational choice on the part of the individual, who has little to lose and much to gain. A society in which many feel that there are no prospects for advancement and self-betterment is breeding ground for crime, and efforts to suppress piracy by force alone are unlikely to meet with much success. Any campaign to eradicate piracy must be accompanied by initiatives to address the root economic problems within affected communities.
3. Strategies for Addressing Poverty in Coastal Communities
The most obvious approach to poverty alleviation is the enhancement of opportunities for formal wage employment. This may involve the creation of job opportunities in the public sector, or actions to raise the number of private sector jobs and the wage rates for such jobs. While wage employment tends to bring the increased risk of piracy activity due to increased riches worth seizing, this effect is likely to be outweighed by the reduction in the incidence of piracy resulting from a lower total level of poverty and the establishment of a relatively rich and thus well-protected urban elite. High quality job creation is thus both a poverty reduction and a piracy reduction measure in the long term. An alternate, but less efficacious strategy would be to improve wage rates and job security for those already employed in the fishing industry, thus seeking to prolong the viability of this work and reduce the incentive to enter into piracy as a more certain means of supporting a family.
The reduction of poverty in coastal communities can be seen as a long-term, indirect strategy for encouraging a reduction in maritime piracy. As such, all poverty alleviation efforts should be linked to a strategic vision for the future of the target area, rather than designed to meet immediate needs. Short-term poverty relief is not entirely irrelevant to the piracy problem, its main virtues in this respect being the reduction of the number of pirate recruits and, less directly, the improvement of public perceptions of government legitimacy based on its provision for the needs of the population.
3.1 Enhancing Access to Education and Skills Development
Subtitle is “3.1 Enhancing Access to Education and Skills Development”. With this feature, readers will be introduced to developing strategies for education and skill development as one of the keys to releasing communities from poverty. It is clear that developing education and skills in a society will lead to a better way of life. Many studies in Indonesia and the Philippines have shown that a high proportion of poor people have limited access to education. Now, both countries have many former workers on foreign fishing vessels who suffer from the depletion of fish stocks. Some of these workers made their living fishing in foreign Exclusive Economic Zones (EEZs) and have returned home due to the decline in foreign fish catch.
Both countries only have an average of 6-7 years of schooling and do not have any skills. This indicates that education is not a priority that people should achieve. Most of the dropout rate is because they prefer to do something that can lead them to quick cash. Dropping out of elementary school and the opportunity to make quick cash by fishing are the things that may cause the enculturation of piracy in the next 10 years. At an advanced level, youth in coastal communities who have graduated from high school lack access to higher education and vocational training due to the cost and distance to available institutions. This leads the youth to become an unproductive generation since they only do something that is not far from their parents’ activities.
3.2 Promoting Sustainable Livelihoods
3.2.3 Enhancing Community and Private Sector Capacities
The ideal scenario is to create a community made up of high-functioning individuals who operate in strong community and market networks. The most realistic method to achieve this is by having community members work together to place themselves in positions of profit and autonomy within new or existing sectors. This is best illustrated by the term ‘economic empowerment’. The process of empowerment involves incrementally building the requisite skills, ability, and knowledge to make a person, group, or community self-sufficient and independent. Economic empowerment occurs when people can improve their living standards through increased income and access to assets, other resources, and entitlements. Measures to increase the human and physical capital of poor community members will inevitably help to move them into the positive industries and away from the negative activities, whilst the process of learning by doing within the positive industries will also be a way out of poverty for many individuals.
3.2.2. Analyzing and promoting the livelihood activities with the most potential for poverty reduction
This first step is to identify all the activities which fulfill the criteria for sustainable livelihoods and assess their relative importance in the community. In many cases, the most sustainable activities, also known as the ‘positive industries’, will very likely be those closely linked to the economic sector within which piracy prevails. A notable example is the fishing industry, which is a common ‘first rung’ in the ladder of economic opportunity for many coastal communities. However, it is also possible that some positive industries might never have been exploited by poor community members due to acute poverty and lack of opportunity. In a case such as this, community members will need guidance as to how to break into that particular sector so that they can put an end to the other activities which they might have been forced into, e.g. boat building instead of piracy in the case of the Semporna sea gypsies mentioned previously. Step two involves selecting the most strategic positive industries and focusing efforts and resources on how to best promote and/or improve those activities. This stage will include consideration of what might be considered ‘creditable’ input and the potential spin-offs to other sectors, e.g. increased earnings from small-scale farming may assist members to send children to school.
3.2.1. Introduction
Sustainable livelihoods refer to the capacity of poor people to live in dignity, sustain, and improve their livelihoods whilst maintaining the productive potential of natural resources and significantly furthering the ability of future generations to do the same. Our starting assumption is that piracy is significantly decreased if not eradicated completely because community members have better livelihood options.
3.3 Strengthening Social Protection Programs
A social protection type intervention is already a regular occurrence in the shipping crews along the East African coast. Crews that sail with pirates for the promise of high wages (often dictated by ransom and loot) do so because they are desperate and cannot support their families in other ways. If these crew members were able to achieve a similar level of income through legal means, they would undoubtedly choose to work in legitimate fields of employment considering the risks involved in piracy. By providing short-term employment schemes, targeted specifically at these individuals and providing wages that rival those of piracy, it is possible to eliminate involuntary unemployment in at-risk communities, thereby greatly reducing the pool of potential pirates. This kind of intervention requires significant funding and a relatively stable security situation. However, if executed effectively, it has the potential to be the most effective and efficient way of preventing at-risk individuals from choosing piracy as a viable source of income. The largest obstacle to this kind of initiative is the case in Somalia, where ongoing conflict has destroyed all forms of formal or informal institutions and where security is still not at a level where aid workers can effectively operate.
Social protection mechanisms have become a critical component of poverty reduction strategies. Their purpose is to prevent or reduce the risk of poverty and vulnerability through such strategies as promoting efficient labour markets, diminishing people’s exposure to risks, and enhancing their capacity to manage economic and social risks, such as unemployment, exclusion, sickness, disability, and old age. Social protection involves two main types of interventions. The first is to enhance the capacity and security of an individual or household to increase their chances of avoiding risks, and the second is to provide assistance to those experiencing adverse effects and who are unable to manage these without outside help. Social protection exists in many forms, ranging from private or informal arrangements between families to more formalized interventions organized by the state or civil society. The assets and access to informal or formal institutions that make social protection initiatives effective can play a major role in determining the sustainability of the program and the long-term benefits to the individuals who are the beneficiaries.
4. Creating Economic Opportunities in Coastal Communities
Promoting the creation of economic opportunities in coastal communities is envisioned to be one of the key methods to reduce piracy in the long run. It has been identified that poverty and the lack of economic opportunities is the main cause that drive individuals to engage in piracy. It is reasoned that piracy provides a means to a decent income for such individuals and thus it is a worthwhile effort to try to provide an alternative source of income to them. Coastal areas are defined to include both the rural and urban areas and they are formed due to the existence of trade between countries. It is anticipated that rural areas can engage in the production of export goods, which are typically processed primary products and light manufactures, while urban areas can provide services to the modern shipping business. Based on this, it is hoped that over the long run, the alternative sources of income will discourage individuals from joining or supporting acts of piracy.
Tourism has been identified to have the potential to alleviate poverty through the generation of income and employment. According to trade theories, tourism is the movement of people to destinations outside their normal places of work and residence. It is usually for a limited time span, for the purpose of leisure and the expenditure of the tourists produces an income for the local residents in the community visited. Employment opportunities in tourism are often associated with casual and seasonal work, which is perfect for rural communities that are looking for an alternative source of income. Tourist attractions in rural communities often involve the preservation of cultural and natural resources, which also makes it an ideal industry for rural communities where the alternative is to exploit in activities such as logging and fishing. For example, Indonesia has decided to convert the community in its outer islands to a tourism-based economy due to the decline of many of its traditional industries. This policy has been strongly supported by the Indonesian government, as Indonesia has great comparative advantage in its rich heritage and pristine natural environment.
4.1 Developing Coastal Tourism
The section “Developing Coastal Tourism” explains the potential of tourism development as a method to prevent the occurrence of piracy. An interesting start is made by comparing tourism with coastal communities with the railway development in America during the 19th century that opened the West. The argument here is that this development has improved the economy and thus the welfare of local populations. This is a useful comparison to show how the development of tourism could greatly affect these communities in the same way. The next point explains that tourism is labour intensive and based around small businesses meaning that it would provide a large range of job opportunities as well as small business development. As previously mentioned, this is very important in preventing piracy. Large job creation will reduce the amount of idle young men who turn to piracy as a method of gaining income and small business development may provide an alternative income of those involved in illegal activities. Furthermore, the tourism industry can provide these communities with the skills in look after public places and develop certain skills that come with the increase of interaction with different cultures. This is a positive step in moving away from the current situation where there is no opportunity for these communities to improve their economic situation. An important point is made on Page 23 in that it is crucial that tourism development for these communities is done by utilising the resources the community already has so not to affect the current social and cultural environment. This is a concern that all too often, the sudden development in an industry such as oil leads to the destruction of local cultural values an event that can lead to disillusionment and more cases of piracy. Stephan and Kim argue that steered low volume-high yield tourism is the most feasible method to ensure the potential negative effects of sudden large development are avoided.
4.2 Encouraging Small and Medium Enterprises (SMEs)
Modern industrial trawlers from the EU and Far East have taken much of the fish that local artisan fishing operations depend on. Due to the deplorable state of fisheries agreements between African nations and the EU, it is difficult to prevent this. However, creating an artificial reef can be a more attractive option for foreign trawlers if it forces them to hire divers to avoid their nets becoming stuck. This is exactly what has been done in Sri Lanka where the “Swiss Cottage” project in Unawatuna, sponsored by a tourist hotel, has provided an artificial reef that has been donated to local fisheries, helping them to protect their fisheries livelihoods. Because this project was a charitable donation, it is likely that the tourist hotel ace my homework had ulterior motives for long-term involvement. But had this been an SME from a developing country, the potential still exists for a profitable venture and the improvement of local fisheries livelihoods.
The experience of developing countries demonstrates that it is possible to promote small and medium industry if the conditions are right. Creating an investment-friendly environment that is more accessible to smaller industry can be achieved through a combination of financial incentives and the removal of entry barriers. The types of financial incentives that are appropriate will vary depending on local circumstances, but programs that offer low-interest loans to small businesses or help them meet costs such as worker training can be extremely effective. An example of an entry barrier that can be removed to the benefit of small industry is the case of coastal fishing communities in West Africa.
Because large enterprises tend to avoid investing in small, remote coastal communities due to factors such as high transportation costs, awareness of new investment opportunities, and cultural barriers, coastal communities frequently have no choice but to sell access to their natural resources to big industry. The start-up costs of large industry are frequently lower than the cost of preventing them from setting up operations that damage local resources. Thus, communities see this as a quick fix solution to their lack of economic opportunity. One way to overcome this is to change the cost-benefit ratio for selling resource access. Encouraging small and medium industry that is more resource efficient and less damaging to natural resources can provide the economic opportunities coastal communities need without forcing them to impoverish themselves in the long run.
4.3 Investing in Infrastructure Development
Coastal communities may have different infrastructure needs depending on their relationship with the coast and the natural resources they rely upon. In areas of unsustainable resource exploitation such as mangrove forests and coral reefs, development should prevent further damage to the environment and seek to improve the livelihoods of the people without increasing their exploitation of the resources. In areas where the resources are essentially sustainable, development may require special facilities to prevent deterioration. Though the overall aim is sustainable development, it must be accepted that without profitability there is no incentive for companies to improve their practices. This is where aid or other forms of funding can be used to bridge the gap until coastal communities have developed sufficiently to sustain themselves.
Perhaps the most crucial long-term solution to help coastal communities financially and give them a hope of a good life is by developing infrastructures at the appropriate level. If cheap cars, DVD players and processed food are not available locally, then international companies can be pressurized into actually earning the money people spend on these expensive and usually low-quality imports. At the present time, it is extremely difficult and expensive for the people in rural areas to bring their goods to market, with transport costs making it uneconomic to grow a cash crop. Reducing the cost of transport by improving roads and providing transport facilities will increase the income of the people but also carries a risk of providing an easier way for companies to extract their resources. If infrastructure developments are carefully planned and monitored to assess their impact on the environment and people, the risk can be minimized and maximum benefit felt by the locals.

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