Bronwyn: Yeah.

Moderator: Yes sir?

Audience2: Michael Kurtzig, formerly of USDA, now an educator. Could you come a little bit about the hijackings, the kidnappings, how does that impact the economy? It seems to me they’re making millions of dollars and they should be doing very well. How do we protect against that? I might note that this morning apparently there was an attempting hijacking and they killed the hijacker. And so the United Nations with some ideologic reasoning say who are these people on the boat responsible to? Who’s in charge of them? But it seems like a little west show over there. Besides, I wanted to know; you may have answered it in the previous question, how destabilizing is the Somalia’s situation to the whole region?

Bronwyn: Yeah. It basically…there’s going to have a lot of talk about piracy, a lot of talk about piracy and I would say the statistics you get vary and they’re more or less reliable but generally, people believe that last year the Somali pirates took about $150 million in ransoms which in the scope of international shipping industry is not that much money, $150 million.

Moderator: Mostly what the economy based on as [IB].

Bronwyn: You know, surprisingly it’s not. A lot of the money that the pirates take goes over seas and the sort of the international financiers of the pirate industries take about 50% of the profits, and a lot of the local Somalis they take their cut and they instantly depart for Kenya, o for Yemen, and then onwards into the middle eastern country. I mean, there are towns in Somalia that are looking a whole lot better than they used to as a result of pirate money where you see fancy SUVs and houses but that’s pretty localized and Somalia certainly not writing its economy on the back of pirate activities. I would point out in terms of sort of the $150 million that the pirates took, I think, the estimate of the cost of the international response to piracy is something like 1.825 billion dollars a year. So it’s a little disproportionate. There has been an increasing focus on on-board security measures of the shipping industry can take and they’ve been very effective so far, and there’s increasing focus on land-based responses to piracy which is also a really positive development and fruitful but it’s slow and the only thing you can really do is keep in mind the context. Piracy is a nuisance but it’s not necessarily a devastating one. Do you want to take the second question?

Moderator: Yeah. Yes, if you remind me what [IB] was again so is the…

Audience 2: [IB] the problem in Somalia destabilizes the whole region – it’s impact to Sudan, Kenya…

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