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Anna Marotti ACF Abstract FY12

"Maritime Piracy: Macroeconomic effects with microeconomic solution"

Conference Name: International Studies Association Midwest 2011 Conference

Until recently, most people believed that the problem of maritime piracy was eradicated at the turn of the 19th century, but like all organized crime, piracy is a trend  it either increases or decreases, but never completely disappears. Although maritime piracy is not in any way new, in its modern form it has arguably become the most sophisticated and successful means of carrying out organized criminal activity. Modern literature on piracy is following a dangerous trend of decentralizing the crisis. A crime of such magnitude can have many socio-economic spillover effects, the likes of which negatively affect neighboring states and the region at large.

A complex development still lacking in literature is an analysis of the secondary costs to the region such as the affects on trading patterns, foreign investment and spatial economic spillover effects on neighboring states. Recent attempts to suppress piracy at sea have been costly and unsustainable, adding significant non-tariff trade barriers to small operator shipping. This paper examines the most recent costing analyses of piracy to the shipping industry, consequently addressing the necessity of forming sustainable regional policies to combat piracy, as it is a multifaceted phenomenon with a direct effect on regional trading economies.