By Peter M. Swartz

COUNTER-PIRACY OPERATIONS: LESSONS FROM HISTORY

Recent events off the Horn of Africa have once again involved the US Navy in counter-piracy operations. The Navy has been involved in operations against piracy since the 18th century. We quickly reviewed these operations and found several relevant lessons for today’s operations.

PIRACY ACTIVITIES ACROSS THE CENTURIES

We identified three distinct eras relating to piracy: the era of privateering, the era of Western imperialism, and the era of terrorism.

THE ERA OF PRIVATEERING: 18TH AND 19TH CENTURIES

Privateers were civilians licensed by their sovereigns to seize upon the high seas vessels, cargoes, and crews of other nations against whom their own nation was at war. Pirates also operated for their own financial benefit on the high seas, but with no government authorization, and against the ships, cargoes, and crews of any nation. The Law of Nations allowed the forces of any nation to capture, try, and hang them. In the 18th and 19th centuries, however, it was often difficult to differentiate legal privateering from illegal piracy. During this period the American merchant marine became second only to that of Great Britain in size. As one of the world’s leading shipping powers, the United States had a vital interest in the safety of American ships, crews, cargoes, and profits. This was the principal mission set of the Navy through most of this period. This was the era of the Barbary pirates and the Caribbean anti-piracy campaign.

THE ERA OF WESTERN IMPERIALISM: 19TH AND 20TH CENTURIES

The nineteenth century saw an explosion of European and American global commerce, and a concomitant increase in attacks on that commerce worldwide. Some of these attacks were sponsored by political entities: decaying empires, petty states, local warlords, and insurgent groups. Others were clearly conducted by independent bands of true pirates. Western naval operations to suppress piracy usually involved landings and assaults ashore. These anti-piracy   CNA Historical Paper Series (2006) ii operations were sometimes hard to distinguish—especially in the minds of local rulers—from the various other forms of European colonial land-grabs then underway throughout the world.

Arlington VA: CNA, 2006. (published 2021) 21p.

By Alicia Schmidt

This report outlines a conceptual model of the social and economic impacts of money laundering and terrorism financing. Drawing on a comprehensive literature review and stakeholder interviews, it identifies possible economic, societal and sectoral impacts. Economic impacts are those that affect the economy at a macro level and include reductions in economic growth and foreign direct investment and the distortion of exchange and interest rates. Societal impacts include changes in crime levels—predicate offences which generate illicit proceeds that are then laundered, crimes financed using laundered funds and crimes attracted to areas where money laundering occurs—and the associated costs to the community. They also include the consequences of terrorism enabled by terrorism financing, including the costs of terrorist attacks and the impact on national reputation. Sectoral impacts include damage to the reputation of the financial sector and other regulated entities, the crowding out of legitimate competitors, artificial increases in prices (eg real estate prices), and lost tax revenue. Importantly, not all impacts are harmful; potential benefits of money laundering include the recovery of proceeds of crime from the enforcement of the anti-money laundering and counter-terrorism financing (AML/CTF) regime, the profitability of certain sectors that facilitate or enable money laundering, and the growth of the AML/CTF industry. Having identified these impacts, this report assesses their significance in the Australian context and sets out a path towards quantifying the impacts identified as both relevant and measurable.

Consultancy Report Canberra: Australian Institute of Criminology. 2024. 117p.