Hijacking the Global Economy: Somali Pirates Costing The Global Economy $18 Billion a Year

piratesPirates hijacking ships off the Horn of Africa and Somalia from 2005 to 2012 garnered well over a quarter of a billion U.S. dollars in ransom and used the money for criminal activities worldwide, according to a report released on Friday.

The study reveals the pirates engaged in human trafficking arms trafficking, funding militias and money laundering through trade in the stimulant known as khat, particularly in Kenya, as well as other illegal activities that divert money from the legal economy that would otherwise promote economic development.

“Unchallenged piracy is not only a menace to stability and security, but it also has the power to corrupt the regional and international economy,” said Stuart Yikona, a financial sector specialist at the World Bank and co-author of the report “Pirate Trails.”

This article continues at businessinsider.com


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