The validity of the policing ability of the global financial markets is still widely debated. While many people think that the increasingly global aspect and ease of moving money across borders is taking away national sovereignty, others think that this fear is perhaps a bit over stated and dramatized by believers of a global system.
Today we see groups not intended to profit from stock markets doing exactly that. The Greater Horn Outlook quotes Jeffrey Gentleman from the New York Review of Books, "There is no doubt that in Somalia, crime pays - it's about the only industry that does. There is even a functioning pirate stock exchange in Xaradheere where locals buy 'shares' in seventy-two individual pirate 'companies' and get a respectable return if the company is successful."
Implications from Institute for the Future:
Somali pirates have taken advantage of this largely western tool to indeed increase their power, thereby making it harder for outside forces to coerce them into submission.
What's interesting here is the re-appropriation of fairly sophisticated financial tools by a group of people who live outside of the system. They are subverting the regulating powers of the financial market and in the mean time increasing their wealth.
Society for International Development August 2010, pg. 8
New York Times Book Review: