December 30, 06

NEWS / Overseas security threats hamper US private sector in 2006

GROWING political radicalism, rising crime and corruption, pirating of intellectual property and military conflicts have contributed in hampered American businessmen operating overseas in 2006, according to a report released this week (Wednesday) by the Overseas Security Advisory Council (OSAC).

The year 2006 was ???a defining year for the American private sector abroad,??? said Doug Allison, a Special Agent with the Department of State??™s Bureau of Diplomatic Security and Executive Director of OSAC. ???The threats from traditional sources ??” such as crime, terrorism and political instability, as well as from non-traditional, non-routine sources ??” such as acts of nature and potential global pandemics, have demonstrated that firms must incorporate security and risk management into their core business operations if they are to overcome these threats.???

The events of 2006 have shown that corporations wanting to do business overseas must develop an internal culture of resiliency, must be better prepared than their international competitors ???to deal with predictable and catastrophic challenges,??? said Allison. ???Such firms are better able to exploit opportunities in riskier environments and in the aftermath of a major event.???

The report divided the world in geographic regions. In Europe it is the increased political radicalism across the old continent that is fuelled by Islamist extremism, as well as neo-Nazi and right wing nationalist movements which contributed to the rising risks for American non-governmental and educational institutions doing business in Europe.

While in Africa OSAC analysts saw ???increased challenges to US businesses due to corruption at ports, product counterfeiting, theft, and violent crime against employees.??? OSAC singled out increased violence against foreigners in the Niger Delta, where ???Westerners have been kidnapped, oil pipelines sabotaged, facilities overrun and production severely restricted.???

OSAC found that kidnapping is ???evolving as a global threat,??? abductions for profit pose a particular problem to US entities in Latin America. ???In the Americas, kidnapping has now become its own cottage industry,??? the OSAC year-end analysis revealed.

In Asia the problem for US businesses and other private-sector organisations is not so much kidnapping of people, but the kidnapping of ideas ??” the theft of intellectual property. The pirating of music CDs and film DVDs is costing the music and film industry in Europe and the United States hundreds of millions of dollars a year.

Nature ??” floods, tsunamis, earthquakes ??” present one of the greatest threats for Asia-based businesses, stated the OSAC report.

OSAC is co-chaired by the Director of the Diplomatic Security Service (DSS) and a selected representative of the private sector. The OSAC Executive Director is a Diplomatic Security Special Agent.

In the Middle East and the Gulf region the report found that the conflict in southern Lebanon over the summer between Israeli forces and Hezbollah ???was the most significant event of the year for OSAC.???

Thousands of Americans evacuated Lebanon during the height of the conflict, either by traversing dangerous and traffic-filled roads to Syria or via ship to Cyprus. There was also serious concern over Hezbollah rocket attacks in northern areas of Israel.

Last summer??™s war between Israel and Hezbollah in Lebanon caused an unforeseen exodus of thousands of US citizens the result of which was ???significant consequences??? for US organisations and firms operating there.

The sudden eruption of the conflict taught American organisations operating in the region the ???need to be more forward-thinking in their crisis management and evacuation plans, preparing for issues such as: unavailability of air transportation; the needs of local employees, and; the potential for dependent minors to be caught in dangerous situations while on vacation without their parents.???

Gulf Threats: Gulf states were not immune to the political malaise gripping the rest of the world. In the case of the Gulf region it was the rise of Islamist terrorism. ???Numerous threats, arrests and attempted attacks throughout 2006 indicated that Gulf countries continue to be at risk from terrorists,??? said the report.

The report cites attacks on major oil installations in Saudi Arabia and Yemen in 2006. Although the attempts were thwarted thanks to heightened security measures and training of special forces to guard the oil installations, it nevertheless demonstrates the high target value placed on the oil industry in Gulf by terrorist organisations.
Claude Salhani is International Editor and a political analyst with United Press International in Washington, DC. Comments may be sent to Claude@upi.com

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