There has been more talk lately about Somali pirates and their influence on everything from shipping routes to insurance. We've mentioned these guys before. In fact, they're such a hot topic that they're on the short list for being named "person of the year" by Time.
They continue to expand operations. Last Monday, they hijacked the Maran Centaurus, a Greek-owned tanker carrying 93.5 million gallons of crude oil worth $175 million. It was about 800 miles off the coast of Somalia, so far the farthest hijacking from shore.
They've also started a stock market of their own. According to Reuters, they have 72 "maritime" companies, and anyone is allowed to invest in exchange for some of the profits. The profits from hijackings are also taxed; a percentage goes toward infrastructure, including hospitals and schools. All this despite the fact that there is no centralized government.
All in all, these pirates are an excellent example of how an economy develops. Until the risk of being hijacked is greater than the cost of shipping goods via another route, or ships find a better way of repelling attacks, this new economy looks like it will be around for a while.
- Jennie
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