The Indian Ocean bubble

Somalia’s piracy is not just good news for the pirates themselves. Whole industries are springing up or expanding to take advantage of the bonanza.

In the town of Eyl, the pirates’ main base, where hundreds of foreign hostages are being held, new restaurants have opened to serve non-Somali food to the captives. Money changers, property developers and Land Rover dealers are doing a roaring trade as the pirates seek to invest their cash. And firms elsewhere in Africa and in the Middle East have spotted an opportunity for a quick buck by helping out with the payment system. Pirates want hard cash, not bank transfers, because getting the money from banks is slow and well-connected warlords can plunder it. So the ransoms have to be taken directly to the ships. This, however, increases the cost and the danger. As a security expert interviewed by the Sunday Times explains: “There have been attacks by other pirates on the way in [to deliver the ransom].” Air drop, he says, is safer, and “there are firms doing it out of Dubai and Mombasa.”

Smaller businesses are thriving too. Selling $3 cups of tea on credit to pirates before they brave the high seas is making life a little easier for a young mother in Eyl. Her clients pay her when they receive the ransoms. “If it wasn’t for them,” she told a Reuters reporter, “I wouldn’t be able to make a living.”

The Seduction of Analysis

Do we need to call ‘time out’ on global risk analysis?  The NIC report on global trends 2025 is one of a plethora of recent publications on global risks and security challenges from think tanks, Government departments, the defence community, NGOs, business, academia, and the media. Do we really need any more?

3 questions spring to mind:

1. Are we suffocating under the weight of all this analysis?
2. Should we consider having a period of consolidation and reflection?
3. Do we need a transformational shift from analysis to action?

How many times do we need to be told that:

  • Since the end of the Cold War, the international landscape has been transformed.
  • During the next 30 years, every aspect of human life will change at an unprecedented rate, throwing up new features, challenges and opportunities.
  • The unprecedented transfer of wealth roughly from West to East now under way will continue for the foreseeable future.
  • The formidable acceleration of information exchanges, the increased trade in goods and as well as the rapid circulation of individuals, have transformed our economic, social and political environment
  • New players—Brazil, Russia, India and China will bring new stakes and rules of the game to the international high table.
  • Increase in global population will put pressure on resources—particularly land, energy, food, and water—raising the spectre of scarcities emerging as demand outstrips supply.
  • There are a set of interconnected set of threats and risks, including international terrorism, weapons of mass destruction, conflicts and failed states, pandemics, and trans-national crime.

Surely it is time to complement existing analytical work with some ideas for action or even, as someone suggested earlier, divert our focus to analysing potential ‘solutions’ rather than identifying the same ‘problems’ time and again. Given the vast number of reports and papers in the system, surely now is the time to consider what improvements and upgrades can and need to be made to the global system in response to the myriad of issues the international community faces.

In order to do this we need to move away from the comfortable exercise of scene setting, describing the world around us and instead take a different approach. One simple way would be to look East and see what Indian & Chinese thinkers and academics are developing. Analysis obviously plays a crucial role in thinking through issues and in policy-making but the very process of analysis can be seductive; providing us with breathing space when we actually need to be pushing on and debilitating by creating ever greater complexity which can often lead to inaction.

In the words of the King:

A little less conversation, a little more action please
All this aggravation ain’t satisfactioning me
A little more bite and a little less bark
A little less fight and a little more spark

Iraq 2011

The web-comic Shooting Wars, hit people’s screens in May 2006. It followed a young journalist named Jimmy Burns, who found himself video-blogging across the front lines of Iraq in the year 2011. At the time of its release, only a handful of people were ready to believe US forces would be in the country for much longer. In 2006 sectarian violence was spilling across streets and districts in Iraqi cities. Infighting, both between Iraqis and the coalition forces occurred with depressing regularity. Most notably, a British Brigadier attacked America’s ‘Hollywood’ generals in April, while later in the year, the Iraq Study Group “strongly urged” a large pull back of American troops in Iraq in a private note leaked to the media. The Independent’s Middle East journalist Patrick Cockburn summed up the hopelessness of the conflict at the end of 2006:

The sense of Iraqi identity may have been damaged beyond repair. But, more than most states, Iraq is dominated by its capital and Shia and Sunni will continue to fight to rule Baghdad until they either win or know there is no hope of victory.

View of Basra from a Merlin Helicopter

What a difference two years makes.

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A Bretton Woods II worthy of the name

Ahead of this weekend’s G20 summit, David and I have published a short paper entitled A Bretton Woods II worthy of the name.  Key points:

– The summit is unlikely to be able to live up to its billing.  Leaders do not yet understand the nature of the problem well enough to be able to implement viable solutions.  However, the problem is more fundamental than a simple lack of shared awareness. 

 – History suggests that leaders will only think the unthinkable on institutional reform once the challenge they face has really hit rock bottom. But history also suggests that we are wrong to think that the worst of the crisis is now past, given that many past banking crises have taken five years or more to unravel.

 – Bretton Woods 1 looked across the whole international economic waterfront in 1944, while this weekend’s summit will be much more narrowly focused.  Leaders will make a big mistake if they try and tackle finance in isolation, given the growing impact of resource scarcity, and that 2009 is supposed to see another ambitious global deal – on climate.

 – We need to recalibrate what we expect from globalization through a serious debate about subsidiarity. Where has globalization gone too far, too fast? Where do we need more integration at a global level? These were exactly the questions that preoccupied Keynes in 1933, when he weighed the relative benefits of global versus local across a range of variables.  We need a similar debate today as a precursor to serious international economic reform.

 – Leaders need to extend their horizons in (at least) five directions: onto longer time scales; beyond financial regulation into wider resource scarcity challenges; into other international processes, especially climate; towards grand bargains with emerging powers; and beyond government, to non-governmental networks.

Full version after the jump, or better yet here’s the pdf.

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The future of the Royal Navy?

The UK defence budget is tight. Defence spending plans are tighter still. While Alex has posted on what the credit crunch will mean for development and multilateralism I want to offer a quick thought or two on how the credit crunch may offer an opportunity to explore new missions for each of the three services. While the UK Government is committed to a replacement for Trident and two new aircraft carriers, both are likely to have an impact on the MoD’s procurement options in the future, unless… the three services adapt their missions and in doing so share the burden more between services and across Whitehall. Given the rapidly changing security environment is the Royal Navy’s future more likely to be in helicopters, hospitals and responding to hijacking on the high seas? Look at what’s happening over the pond.

Exhibit A:

The US Navy is trying to set a new course, embracing a shift in strategy that focuses heavily on administering humanitarian aid, disaster relief, and other forms of so-called soft power to woo allies to help the United States fight global terrorism. The Navy’s new maritime strategy, unveiled this fall and shared by the Marine Corps and Coast Guard, is a shift in tone that reflects a broader change in the Pentagon’s approach as it organizes itself for what many military officials refer to as a “generational conflict” against extremism. It’s a move away from the go-it-alone stance of the Bush White House and toward a new emphasis on building partnerships abroad and finding common interests. While the Navy says it will maintain its ability to use the “hard power” for which it’s known, the new focus represents an important change – the first major rewrite of strategy in more than 20 years. It puts greater emphasis on humanitarian aid, disaster relief, “partnering” with foreign navies also working to combat piracy, terrorism, and the proliferation of weapons of mass destruction.

Exhibit B:

Hospital ships are, by design, multi-use vehicles that are capable of serving in command and control, educational outreach, or as virtual sea bases. A future hospital ship should be tied into some sort of modularized container system that may mirror the modules used by the Navy’s Littoral Combat Ship. A ship that might be charged with high-tempo combat trauma care will need a flat deck that is able to withstand the heat and weight of large helicopters. A well deck also would be recommended, although it could be passed over if the ship is able to dock or maintains an organic docking system.  Under a two-tier system, smaller, cheaper ambulance-like platforms could work in tandem with a larger, more expensive command-and-control “trauma” platform or aid ship tenders where the crew of a smaller, low-endurance craft can take a breather or swap out crews.

Exhibit C

Piracy Map 2008

From the BBC: France has launched two operations already this year to free French ships and crew seized by Somali pirates. Pirates are still holding the Ukrainian ship, the MV Faina, and its cargo of tanks and military hardware, off the Somali coast. They demand $20m (£12m). The International Maritime Bureau (IMB) said on Thursday that 63 of 199 incidents of piracy worldwide recorded in the first nine months of this year had taken place off east Somalia and the Gulf of Aden. This was double the 36 attacks blamed on Somali pirates out of 198 worldwide in the same period last year, the bureau added.