Read Online The Pirate Organization: Lessons From the Fringes of Capitalism by Rodolphe Durand, Jean-Philippe Vergne - Free Book Online Page A
Authors: Rodolphe Durand, Jean-Philippe Vergne
Tags: General, Economics, Business & Economics, Economic History, Free Enterprise, Organizational Behavior, Strategic planning
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that could negatively affect the expedition were not tolerated. In particular, alcohol, gambling, and sex were prohibited. 2
EXCERPTS FROM CAPTAIN ROBERTS’S CODE
Every man has a vote in the affairs of moment, and equal title to fresh provisions or strong liquors, at any time seized, and may use them at pleasure, unless a scarcity makes it necessary, for the good of all, to vote a retrenchment .
Every man to be called fairly in turn, by list, on board of prizes … but if they defrauded the company to the value of a dollar in plate, jewels, or money, marooning was their punishment .
No person to game at cards or dice for money .
The lights and candles to be put out at eight o’clock at night: if any of the crew, after that hour still remained inclined for drinking, they were to do it on the open deck .
To keep their piece, pistols, and cutlass clean and fit for service .
No boy or woman to be allowed amongst them. If any man were to be found seducing any of the latter sex, and carried her to sea, disguised, he was to suffer death .
To desert the ship or their quarters in battle was punished with death or marooning .
No striking one another on board, but every man’s quarrels to be ended on shore, at sword and pistol. 3
Following a take, the quartermaster had to respect the accounting principles accepted by the entire crew before setting sail. For example, the carpenter and surgeon were paid first because of the indispensable service they provided. Next, the wounded, due to the hardships they suffered, were paid according to a precise code. They received a larger share than their crewmates, thus instituting one of the first forms of social insurance. For example, if a crew member lost his right arm, he received three times the pay of the surgeon, but if he lost an eye, he received half. From what remained of the take, the captain received a double share, each crew member received an equal share, and young boys received half. If a ship was taken, each crew member had to swear—often on the Bible, but also on other texts—that he had not taken anything so that each could then receive an equal portion of the booty. In addition to the equal profit sharing, a bonus system was often used for the bravest pirates in order to reward individual initiative. All in all, the discipline that pirates voted on and imposed on themselves was stricter and more stringent than the rules they imposed on their prisoners.
Pirates’ Norms Travel Fast
Advances that took modern governments several centuries to institutionalize were established by the pirates of the Caribbean and Madagascar: democratic elections of leaders, separation of powers, equality between members, and an early form of social insurance. Leeson and others see these institutions as an economic necessity. They were developed on the need for internal coherence. For the pirate organization that faced a lot of uncertainty and could not resort to legal justice, these advances were essential. As Leeson says, “No outside authority centrally designed, directed, or imposed democracy on pirate society. Pirates’ criminal interest led them to adopt this system without external prodding.” 4 The economic handling of the pirate organization and its cruel reality—the violence inflicted on those who did not respect the rules—intensify its abnormal, monstrous, and criminal side.
There is always an economic explanation for everything in the pirate legend. Some economists have used signaling theory to dissect the Jolly Roger, the black pirate flag with the white skull and crossbones. It would seem that the acceptance of emancipated slaves, who were treated as equals, is based on a simple cost-benefit calculation. Looking back, Leeson ascribes purely economic motivations to all pirates’ decisions. His economic approach sees these things as logical consequences that resulted from the costs associated with the running of the organization: its banishing, its capital
EXCERPTS FROM CAPTAIN ROBERTS’S CODE
Every man has a vote in the affairs of moment, and equal title to fresh provisions or strong liquors, at any time seized, and may use them at pleasure, unless a scarcity makes it necessary, for the good of all, to vote a retrenchment .
Every man to be called fairly in turn, by list, on board of prizes … but if they defrauded the company to the value of a dollar in plate, jewels, or money, marooning was their punishment .
No person to game at cards or dice for money .
The lights and candles to be put out at eight o’clock at night: if any of the crew, after that hour still remained inclined for drinking, they were to do it on the open deck .
To keep their piece, pistols, and cutlass clean and fit for service .
No boy or woman to be allowed amongst them. If any man were to be found seducing any of the latter sex, and carried her to sea, disguised, he was to suffer death .
To desert the ship or their quarters in battle was punished with death or marooning .
No striking one another on board, but every man’s quarrels to be ended on shore, at sword and pistol. 3
Following a take, the quartermaster had to respect the accounting principles accepted by the entire crew before setting sail. For example, the carpenter and surgeon were paid first because of the indispensable service they provided. Next, the wounded, due to the hardships they suffered, were paid according to a precise code. They received a larger share than their crewmates, thus instituting one of the first forms of social insurance. For example, if a crew member lost his right arm, he received three times the pay of the surgeon, but if he lost an eye, he received half. From what remained of the take, the captain received a double share, each crew member received an equal share, and young boys received half. If a ship was taken, each crew member had to swear—often on the Bible, but also on other texts—that he had not taken anything so that each could then receive an equal portion of the booty. In addition to the equal profit sharing, a bonus system was often used for the bravest pirates in order to reward individual initiative. All in all, the discipline that pirates voted on and imposed on themselves was stricter and more stringent than the rules they imposed on their prisoners.
Pirates’ Norms Travel Fast
Advances that took modern governments several centuries to institutionalize were established by the pirates of the Caribbean and Madagascar: democratic elections of leaders, separation of powers, equality between members, and an early form of social insurance. Leeson and others see these institutions as an economic necessity. They were developed on the need for internal coherence. For the pirate organization that faced a lot of uncertainty and could not resort to legal justice, these advances were essential. As Leeson says, “No outside authority centrally designed, directed, or imposed democracy on pirate society. Pirates’ criminal interest led them to adopt this system without external prodding.” 4 The economic handling of the pirate organization and its cruel reality—the violence inflicted on those who did not respect the rules—intensify its abnormal, monstrous, and criminal side.
There is always an economic explanation for everything in the pirate legend. Some economists have used signaling theory to dissect the Jolly Roger, the black pirate flag with the white skull and crossbones. It would seem that the acceptance of emancipated slaves, who were treated as equals, is based on a simple cost-benefit calculation. Looking back, Leeson ascribes purely economic motivations to all pirates’ decisions. His economic approach sees these things as logical consequences that resulted from the costs associated with the running of the organization: its banishing, its capital
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