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Hanoi, March 12th 2014. Dr. Quy-Toan Do, Senior Economist at the World Bank presented his research on the economic cost of pirates at the war-torn Somalia areas. The workshop took place at MDRI on February 25, 2014. The study provides evidence on huge social and economic loss caused by piracy at one of the world’s most important trade gateways.

1,068 attacks by Somali pirates have been reported since January 2005. Among these, 218 resulted in successful hijackings have caused an estimated ransom of US$53 million per annum. About 90 casualties are reported as the consequence of these attacks. Overall, the Somali piracy has raised global trade costs by US$18 billion per year and severely affected economic activities of its neighboring countries.

The problem of piracy, according to the author, requires the establishment of a functional Somali state and cooperation of international community in assisting East African countries to build a viable political system.

The research has been well-received by MDRI researchers, scholars and guests. The findings provide new perspective on the ongoing problem at one of the most strategic socio-economic location of the world.

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