Kill piracy with kindness, not force, says insurers' intelligence chief

THE threat of piracy from Somalia is unlikely to abate because of the lucrative gains made, says Tim Holt, head of intelligence and special contingency risks at the London insurance broker Willis Group.

But Mr Holt opposed the use of force. "Communities must be presented with the opportunity to earn a wage that offers them a similar quality of life to what they currently experience," said Mr Holt.

Providing such a standard of living would be expensive. "Piracy is the second largest generator of income in Somalia, yielding an estimated US$200 million annually," said Mr Holt in his report on the problem.

"Somalia's two main pirate syndicates continue to be active and show little sign of disarray. They have not had to shift anchorages and have the funds to consolidate their hold on it as necessary.

"The pirates have the capability to adapt. Some have begun to offer their services as 'counter piracy' and 'negotiation' experts. There has also been a recent acceleration in kidnap for ransom on land of aid workers and tourists who are then transferred to the coast for ransom negotiations," he said.

"As pirate financiers invest more and more in the success of [pirate] operations, lucrative opportunities for local business have vastly expanded. A $4 million ransom will be injected back into the local economy, benefiting a community that once lived in abject poverty," he said.

"There is little wonder why the practice has boomed when Somali per capita income is $600 and a minimum $10,000 is available for each perpetrator of a successful operation. With 90 per cent of the world's trade is transported by sea, the opportunities are vast," Mr Holt said.