OSAC Says Radicalism, Corruption, Intellectual Property Theft Among Growing Threats
Increased political radicalism, rising crime and corruption, pirating of intellectual property, and military conflict were among the top security challenges of 2006 confronting U.S. businesses, nongovernmental organizations and academic institutions operating abroad, according to a year-end analysis by the Overseas Security Advisory Council (OSAC).
"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."
"Corporations that develop an internal culture of resiliency are better prepared than their international competitors to deal with predictable and catastrophic challenges," he said. "Such firms are better able to exploit opportunities in riskier environments and in the aftermath of a major event."
Over the past year, OSAC analysts noted a steady increase in political radicalism throughout Europe fueled by Islamist extremism, and neo-Nazi-related and other right-wing and nationalist movements.
In Africa, OSAC saw increased challenges to U.S. businesses due to corruption at ports, product counterfeiting, theft, and violent crime against employees. OSAC also cited increased violence against foreigners in the Niger Delta, where "Westerners have been kidnapped, oil pipelines sabotaged, facilities overrun and production severely restricted."
While declaring that kidnapping is "evolving as a global threat," OSAC said abductions for profit pose a particular problem to U.S. entities in Latin America.
"In the Americas, kidnapping has now become its own cottage industry," the OSAC year-end analysis said.
Theft of intellectual property and natural disasters posed the greatest threat to U.S. businesses and other private-sector organizations operating in Asia.
And in the Middle East, the Israeli-Hezbollah conflict in Lebanon led to an unforeseen evacuation of thousands of U.S. citizens and significant consequences for U.S. organizations and firms operating there, as well as in neighboring countries.
"The events of this summer taught American organizations operating in the region that they need to be more forward-thinking in their crisis management and evacuation plans," the OSAC review said.
OSAC's regional specialists analyze information and develop informational products on security abroad that are then delivered to its private-sector members, explained Allison.
"By working with our OSAC partners, sharing our analysis, and pushing out our information, we aim to help the U.S. private sector better prepare for, respond to, and recover from the security challenges that may arise in 2007," said Allison.
The following is OSAC's list of the past year's top overseas security challenges to the American private sector.
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OSAC's Top 10 Private-Sector Security Issues Worldwide for 2006
Africa: Targeting of Western Interests in the Niger Delta
Local populations in the Niger Delta began taking their frustrations with the Nigerian federal government out on resident western interests in this oil-producing region, as Westerners were kidnapped, oil pipelines sabotaged, facilities overrun and production severely restricted. The violence did not stay onshore, either, as criminals ranged as far as 50 miles into the Gulf of Guinea to attack facilities and personnel.
Africa: Corruption and Crime
Some African governments, such as those in Sudan and Guinea, were rated by the international watchdog organization Transparency International as being among the most corrupt in the world. U.S. businesses experienced bribery at some ports of entry, delaying shipments of goods and raising costs. They also experienced high rates of loss due to internal and external theft, and suffered from sophisticated counterfeiting operations, especially due to increased trade with Asia. Additionally, many African cities were rated "critical" for crime by the State Department, subjecting employees to violent crimes such as carjacking and armed robbery.
Asia: Violation of Intellectual Property Rights
Piracy and other violations of intellectual property rights have quickly become one of Asia's key regional issues. With an influx of U.S. and multinational companies investing in overseas operations via outsourcing and other business practices, this issue is one that will not fade soon. India and China, Asia's two largest players on the international business stage, are countries where the U.S. private sector faced the most intense threat of IPR-related commercial losses.
Asia: Natural Disasters
Typhoons, flooding, earthquakes and tsunamis don't discriminate on location or victim, and affect many of Asia's prosperous nations to include Japan, the Philippines and India. Whether a private sector organization has facilities in the country or employees on vacation there, an area prone to natural disaster raises the stakes for all involved.
Europe: Radicalism
"Radicalism" incorporates several trends that OSAC monitored throughout the year, namely the rise in Islamist extremism across the continent, the extreme wing of animal rights organizations, and right-wing groups associated with skinhead and/or neo-Nazi violence. The presence and power of each of these entities increased in 2006.
Europe: Militant Activism
Violent activism was visible during disturbances in France that began in autumn 2005 and ended in January 2006 and were reportedly prompted by immigration and employment policies, and during anti-government protests in Budapest reportedly driven by flawed economic reporting. In addition, demonstrations across Europe in response to the Mohammed cartoon publication and Pope Benedict's remarks about Islam, although peaceful, underscored the potential for anti-Western activism in some of those countries.
Latin America: Political Violence and Civil Unrest
For several years, the private sector has been a target for anti-globalization and anti-establishment groups in the region who have conducted regular attacks as invasive as small bombings or as minor as graffiti vandalism. Civil unrest has also become a concern - even when private sector assets are not directly targeted - because unrest can paralyze entire cities, as has occurred in Bolivia, or simply cripple major economic areas, as in Mexico City this past summer.
Middle East: Israel/Hezbollah Conflict
The conflict in southern Lebanon over the summer between Israeli forces and Hezbollah was the most significant event of the year for OSAC, in terms of constituent communications and reports produced. 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. The events of this summer taught American organizations operating in the region that they 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.
Middle East: Persian Gulf Threats
Numerous threats, arrests and attempted attacks throughout 2006 indicated that Gulf countries continue to be at risk from terrorists. Attacks on major oil installations in both Saudi Arabia and Yemen this year were thwarted by tight perimeter security and actions taken by guard forces, but the attacks show that the oil industry in the region is still a highly valued target.
Worldwide: Kidnapping
Kidnapping has evolved as a global threat. In the Americas, kidnapping has now become its own cottage industry, conducted in a much less targeted, haphazard manner, with hostage detentions taking much less time, and smaller ransoms being accepted. In Africa, employees of western oil companies are targeted and ransoms in the millions of dollars are requested from their employers; these hostages are rarely hurt. In Iraq, kidnappers are targeting local employees, who have very limited chances of surviving as hostages.
Read more about OSAC-identified security trends by region:
OSAC's Top 5 Security Trends in 2006 for the U.S. Private Sector in Africa
OSAC's Top 5 Security Trends in 2006 for the U.S. Private Sector in the Americas
OSAC's Top 5 Security Trends in 2006 for the U.S. Private Sector in Asia
OSAC's Top 5 Security Trends in 2006 for the U.S. Private Sector in Europe
OSAC's Top 5 Security Trends in 2006 for the U.S. Private Sector in the Middle East
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About OSAC
The Overseas Security Advisory Council was established in 1985 as a Federal Advisory Committee with a U.S. Government Charter to promote security cooperation between the U.S. Department of State and American business and private sector interests worldwide.
With a constituency of more than 3,500 U.S. companies and other private-sector organizations with overseas interests, OSAC operates a Web site (www.osac.gov), which offers its members the latest in safety- and security-related information, public announcements, warden messages, travel advisories, significant anniversary dates, terrorist group profiles, country crime and safety reports, special topic reports, foreign press reports, and much more.
The OSAC staff includes international security research specialists dedicated solely to serving the U.S. private sector. Additionally, OSAC has a network of 100 country councils around the world that brings together U.S. embassies and consulates with the local U.S. community to share security information.
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.
About The Bureau of Diplomatic Security
The Bureau of Diplomatic Security is the U.S. Department of State's law enforcement and security arm. The special agents, engineers, and security professionals of the Bureau are responsible for the security of 285 U.S. diplomatic facilities around the world.
In the United States, Diplomatic Security personnel investigate passport and visa fraud, conduct personnel security investigations, and protect the Secretary of State and high-ranking foreign dignitaries and officials visiting the United States. More information about the U.S. Department of State and the Bureau of Diplomatic Security may be obtained at www.state.gov/m/ds.
Contact: Kendal Smith
571-345-2509
FAX: 571-345-2527
SmithLK2@state.gov
