Alright, so we’re admittedly cynical about these Somali pirate stories. The media likes to blow them out of proportion cause pirates are an interesting topic.
That being said, we did find this piece from the National Interest Online on pirate economic to be particularly enlightening.
Somali pirates reportedly set aside some 20 per cent of ransom monies received to purchase new equipment and acquire new capabilities (such as GPS locators), and can rely on a diaspora network to provide intelligence about shipping movements. They are learning to avoid the areas where the multinational forces are deployed to strike at targets in other parts of the ocean.
The Gulf of Aden and the western reaches of the Indian Ocean are too important as global lines of communication to adopt a strategy of having ships avoid the area altogether. And the major naval powers of the world cannot commit the bulk of their assets to patrolling this one region to the exclusion of other missions. Read the whole thing >
There’s a good lesson here. Even though the economy is tight, it’s important to continually reinvest in the business. Get the edge through technology!
Business Insider Emails & Alerts
Site highlights each day to your inbox.