Tuesday, November 25, 2014

Rwanda should be the blueprint for stopping Somali piracy

To say that a Somali pirate is on the periphery of the international economy is an unquestionable understatement. The entire country of Somalia is on the periphery of the African economy, which itself on the periphery of the international economy. Somali pirates are mostly native to the war torn southern regions of Somalia, which are on the periphery of the Somali economy. In other words, Somali pirates are on the periphery of the periphery of the periphery. These young men commit piracy out of desperation because they do not have other means of income. Even subsistence farming is impractical due to the lack of arable land in Somalia. In this situation, stealing and ransoming are the surest ways to support their families; and there are too few real incentives to dissuade these actions. The Somali pirates know what they are doing is wrong, they even admit that piracy should be a crime, but their situation has left them without other options.
South Somalis live without hope for legitimate prosperity, and their current situation does not alleviate the hopelessness. Prosperity must be facilitated from the outside, from foreign investment. More specifically, the world must look west of Somalia to Rwanda, where foreign investment and careful planning have made the central-African nation one of the most improved in the world. In the mid to late 1990’s, Rwanda looked much like Somalia does today. Their economy was in shambles due to a horrific war and there was wide spread hunger and hopelessness. International groups such as the World and IMF (and others) facilitated economic growth in Rwanda by investing in infrastructure and natural resource utilization. Building roads and schools has been a vital to the improved economy of Rwanda, but funding ways to effectively use Rwanda’s natural resources has been the engine that drives Rwanda’s economy. Rwanda is on a road to economic independence, despite being a resource poor country, because the have the tools to be use their natural resources efficiently.
This plan should and could be applied to Somalia effectively. Both countries have similar populations and their climates are relatively similar. While subsistence farming is more practical in Rwanda (they have experienced less desertification), Somalia has a wealth of natural resources that Rwanda does not. It is believed that Somalia sits on top of large oil and natural gas reverse, based mainly on the endowments of Somalia’s neighbors. If oil were ever found in Somalia, there would be enough economic incentive for Somalis to stop pirating. However, oil-prospecting companies will not risk the political instability of Somalia. This is where the international community must intervene, much like they did in Rwanda during the 1990’s. If the safety of oil companies can be guaranteed, then Somalia may finally be able to take positive steps toward improving their quality of life.
            The future of Somalia may come down to a simple waiting game. As oil wells dry up in the future, firms will become more aggressive in how and where they extract oil. If the international community does not act and Somalia remains as dangerous as it is today; eventually some oil company will risk the danger and start prospecting for oil regardless. This could lead to a situation similar to what is happening today in Northeastern Iraq, where a terrorist group (ISIS) controls oil wells and is able to fund their terrorist activities through the sale of oil. This is why it is so important that the international community gets involved in creating an infrastructure and guaranteeing the safety of firms.
The international community has the means to create stability in Somalia, which along with economic growth can create large enough economic incentives for Somalis to abandon pirating. The end of pirating would have the added positive effect of increased trade in Somalia because companies would no longer fear the loss of there cargo or safety of their crew. By providing safety and stability, the international community can create hope for the Somalis while at the same time gaining more access to oil. This has the potential to be mutually beneficial for all parties involved. Even if Somalia did not have the resources they were expected to have, the humanitarian positivity coming out of helping a country like Somalia should be incentive enough for politicians looking to stir up good will. With Rwanda as a model, Somalia could be on the road to stability and economic improvement in a matter of years. All that is left is for someone to do it.

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