The European Union’s Response to Piracy: Are the Lessons Learned in the Horn of Africa a Model for the Gulf of Guinea? EU Diplomacy Paper/2015

The European Union (EU) is seen as the leading actor in successfully fighting piracy around the Horn of Africa. As a global trade power with strong economic interests, the EU is also challenged by similar maritime security threats in the Gulf of Guinea. To date, there has been no comprehensive analysis to assess the potential transfer of successful EU instruments from the Horn of Africa to the piracy situation in West African waters. This paper examines to what extent the EU can draw on its experience made in the Horn of Africa to deter piracy in West African waters. Based on qualitative research interviews, lessons learned from East Africa are identified and subsequently applied to the situation in the Gulf of Guinea. The results show that the EU is only partially drawing on its experience made in the Horn of Africa. One the one hand, it is rather reluctant to use crisis management instruments such as naval operations. On the other hand, the EU is drawing on its successful leadership in international political and military cooperation from around the Horn of Africa in order to make more effective use of available resources in the Gulf of Guinea.

The Business Models and Economics of Peer-to-Peer lending. ECRI Research Report No 17, May 2016

This paper reviews peer-to-peer (P2P) lending, its development in the UK and other countries, and assesses the business and economic policy issues surrounding this new form of intermediation. P2P platform technology allows direct matching of borrowers’ and lenders’ diversification over a large number of borrowers without the loans having to be held on an intermediary balance sheet. P2P lending has developed rapidly in both the US and the UK, but it still represents a small fraction, less than 1%, of the stock of bank lending. In the UK – but not elsewhere – it is an important source of loans for smaller companies. We argue that P2P lending is fundamentally complementary to, and not competitive with, conventional banking. We therefore expect banks to adapt to the emergence of P2P lending, either by cooperating closely with third-party P2P lending platforms or offering their own proprietary platforms. We also argue that the full development of the sector requires much further work addressing the risks and business and regulatory issues in P2P lending, including risk communication, orderly resolution of platform failure, control of liquidity risks and minimisation of fraud, security and operational risks. This will depend on developing reliable business processes, the promotion to the full extent possible of transparency and standardisation and appropriate regulation that serves the needs of customers.