Antonio Maria Costa

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MundoÁfrica,

How is it possible that pirates from very poor Somalia can hold to ransom ships from some of the richest countries, despite the patrolling by the world’s strongest navies?

That was the dilemma discussed at the recent Istanbul Conference on Somalia, and is high on the agenda of the United Nations, NATO and the European Union.

The current anti-piracy strategy has worked well, but it is facing diminishing returns. Naval patrols off the Horn of Africa have reduced the success rate of attacks: 1 in 10 attempts succeed now, compared to 1 in 3 before. Yet the number of (reported) attacks doubled between 2007 and 2008 from 51 to 111, and doubled again in 2009 to 217.…  Seguir leyendo »

ReflexionesSocial

Something strange is going on in the global opium market, and it could spell trouble.

Opium is a commodity -- an illegal commodity, but it should still be subject to the normal rules of supply and demand.

Annual demand for opium is approximately 4,500 tons. Last year a record 6,100 tons were produced in Afghanistan alone. That country's production is 30 percent more than total world demand. Heroin prices should, in theory, be plummeting. But they are not. So what is going on?

Does opium defy the laws of economics? Historically, no. In 2001, prices surged tenfold from 2000, to a record high, after the Taliban all but eliminated opium poppy cultivation across the Afghan territory under its control.…  Seguir leyendo »