The Cost of Piracy: Moving from Mitigation to Investment

Both the human and economic costs of piracy off the coast of Somalia have been reduced, at high expense, through the use of armed guards and continued adherence to Best Management Practices (BMP) by industry, more aggressive actions by navies, and positive developments on land in Somalia which have made it difficult for pirates to operate from traditional havens. 

Key Findings

While these expenditures have proven effective at mitigating the risk of piracy at sea, they do not represent a sustainable or desirable solution to piracy because of the pressures of cost, fatigue, and risk. Instead, this system of counter-measures should be replaced with efforts to bring stability ashore – which is where the long-term solution is found.