SOMALI PIRATES OPEN 'STOCK EXCHANGE'

from : http://spectregroup.wordpress.com/2009/12/11/todays-pirate/

Public Shares Offered
http://www.reuters.com/article/idUSTRE5B01Z920091201
“In Somalia’s main pirate lair of Haradheere, the sea gangs have set up a cooperative to fund their hijackings offshore, a sort of stock exchange meets criminal syndicate. The gangs have made tens of millions of dollars from ransoms and a deployment by foreign navies in the area has only appeared to drive the attackers to hunt further from shore. It is a lucrative business that has drawn financiers from the Somali diaspora and other nations — and now the gangs in Haradheere have set up an exchange to manage their investments. One wealthy former pirate named Mohammed took Reuters around the small facility and said it had proved to be an important way for the pirates to win support from the local community for their operations, despite the dangers involved. “Four months ago, during the monsoon rains, we decided to set up this stock exchange. We started with 15 ‘maritime companies’ and now we are hosting 72. Ten of them have so far been successful at hijacking,” Mohammed said. “The shares are open to all and everybody can take part, whether personally at sea or on land by providing cash, weapons or useful materials … we’ve made piracy a community activity.”

“Piracy-related business has become the main profitable economic activity in our area and as locals we depend on their output,” said Mohamed Adam, the town’s deputy security officer. “The district gets a percentage of every ransom from ships that have been released, and that goes on public infrastructure, including our hospital and our public schools.” Haradheere’s “stock exchange” is open 24 hours a day and serves as a bustling focal point for the town. As well as investors, sobbing wives and mothers often turn up there seeking news of male relatives missing in action. Piracy investor Sahra Ibrahim, a 22-year-old divorcee, was lined up with others waiting for her cut of a ransom pay-out after one of the gangs freed a Spanish tuna fishing vessel. “I am waiting for my share after I contributed a rocket-propelled grenade for the operation,” she said, adding that she got the weapon from her ex-husband in alimony. “I am really happy and lucky. I have made $75,000 in only 38 days since I joined the ‘company’.””

Pirate Democracy
http://www.peterleeson.com/Opportunism_and_Org_Under_the_Black_Flag.pdf
http://www.peterleeson.com/The_Calculus_of_Piratical_Consent.pdf
http://www.peterleeson.com/The_Invisible_Hook.pdf
http://freakonomics.blogs.nytimes.com/2009/04/20/pirate-economics-101-a-qa-with-invisible-hook-author-peter-leeson/
“Q: In the book, you write that pirates had set up their own early versions of constitutional democracy, complete with separation of powers, decades before the American Revolution. Was that only possible because they were outlaws, operating entirely outside the control of any government?
A: That’s right. The pirates of the 18th century set up quite a thoroughgoing system of democracy. The reason that the criminality is driving these structures is because they can’t rely on the state to provide those structures for them. So pirates, more than anyone else, needed to figure out some system of law and order to make it possible for them to remain together long enough to be successful at stealing.
Q: So did these participatory, democratic systems give merchant sailors an incentive to join pirate crews, because it meant they were freer among pirates than on their own ships?
A: The sailors had more freedom and better pay as pirates than as merchantmen. But perhaps the most important thing was freedom from the arbitrariness of captains and the malicious abuses of power that merchant captains were known to inflict on their crews. In a pirate democracy, a crew could, and routinely did, depose their captain if he was abusing his power or was incompetent.”

Pirate Utopias
http://books.google.com/books?id=SJEg0p4RCP4C&dq
http://www.hermetic.com/bey/taz3.html

The Breakaway Semi-Functioning-Democracy Of Somaliland
http://www.somalilandgov.com/
http://findarticles.com/p/articles/mi_m2242/is_1679_287/ai_n27865671

Categories: Spectre Group Reports | Leave a comment

About Jay Babcock

I am the co-founder and editor of Arthur Magazine (2002-2008, 2012-13) and curator of the three Arthur music festival events (Arthurfest, ArthurBall, and Arthur Nights) (2005-6). Prior to that I was, amongst other things, a district office staffer for Congressman Henry A. Waxman, a DJ at Silver Lake pirate radio station KBLT, a copy editor at Larry Flynt Publications, an editor at Mean magazine, and a freelance journalist contributing work to LAWeekly, Mojo, Los Angeles Times, Washington Post, Vibe, Rap Pages and many other print publications and online outlets. An extended piece I wrote on Fela Kuti was selected for the Da Capo Best Music Writing 2000 anthology. In 2006, I was one of five Angelenos listed in the Music section of Los Angeles Magazine's annual "Power" issue. In 2007-8, I wrote a blog called "Nature Trumps," about the L.A. River. Today, I live a peaceful life in the rural wilderness of Joshua Tree, California, where I am a partner in JTHomesteader.com with Stephanie Smith.

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