The Economics of Piracy in South East Asia

In 2010, the UN published a report, “The Globalisation of Crime” which stated that “Until .. the recent and dramatic increase of piracy off the Coast of Somalia … piracy was a phenomenon in decline … thanks to effective and coordinated international action against the pirates”.  Though this may have been true for Somalia, elsewhere in the world it has proved to be anything but in decline.

The waters of South East Asia have rapidly recovered their status as the principle threat to world shipping.

This report, “The Economics of Piracy in South East Asia” authored by Karsten von Hoesslin for the Global Initiative against Transnational Organised Crime, argues that South East Asian piracy*, and in particular its Indonesian variety, presents a constant and considerable challenge, not only to the shipping industry, but also to the integrity and rule of law of the states in the region.  It is a force deeply rooted in the history and geography of the region, and is highly adaptive to changing economic realities.

Since the International Maritime Bureau (IMB) started collecting reliable statistics in 1993, nearly 60% of all piracy incidents reported anywhere in the world have occurred in Asia, and a full two thirds occurs within South East Asia.  Indonesia alone accounts for 23% of world piracy.

For the full article and report, please click here.