EconTalk

Anja Shortland on Kidnap

Jun 17, 2019
Anja Shortland, a Reader in political economy at King's College London and author of "Kidnap: Inside the Ransom Business," delves into the surprising order within the chaotic world of kidnapping. She highlights the dynamics of ransom negotiations and the economic forces at play, particularly in high-risk areas like Somali piracy. Shortland discusses the importance of reputation in negotiations and the psychological tactics employed by both kidnappers and negotiators. The conversation reveals how local agreements can foster safety, even amid conflict.
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INSIGHT

Kidnapping's Shadow of the Future

  • Kidnapping, a seemingly chaotic crime, often has surprising order and predictability.
  • A "shadow of the future" motivates kidnappers to uphold agreements, fostering trust for future transactions.
INSIGHT

K&R Insurance: Prevention Over Payouts

  • K&R insurance incentivizes firms to train employees and implement security protocols, minimizing kidnappings.
  • Insurers prioritize prevention (Plan A) and smooth resolutions (Plan B) over payouts.
ANECDOTE

The Virgin Mary Procession

  • A businessman in Colombia tried to avoid a $2,000 rebel roadblock fee by hiding goods on a religious float.
  • His friend was kidnapped, resulting in a $10,000 "fine", illustrating rebels' territorial control.
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