The Road to Economic Development; the case for Somaliland By: Mustafa M. Awjama, This work tries to pave the way for the achievement of a sustainable economic growth by taking into account the current position of the Somaliland economy and then compiles a set of recommendations for those agents including policy makers who are interested in improving the economy. Currently, Somaliland is in the stage of what Rostow called “the preconditions for take-off”. According to Rostow, the “preconditions for take-off”, the second stage of a five stage process, is characterised by the presence of entrepreneurs in the society and investors who are ready to invest ideas. In his paper Is there a proper sequence in Democratic transitions? Francis Fukuyama highlights that “Development is a complex process that takes place across multiple dimensions of Human life”, and that economic growth, the State, Rule of law and mechanisms of democratic accountability are just few of those several dimensions. In this paper I will focus on the economic side of that development process. Economic development is often understood as the transformation and improvement of a society’s standard of living and wellbeing. There is no universal strategy which succeeds the economic advancement for all nations and it is often up to that particular country to decide which way it takes to achieve its desired destination[1]. However, there is generally a correlation between state building and economic growth, between rule of law and growth, and between stable democracy and economic growth. Economists often emphasize technological progress and capital accumulation as the two main sources of economic growth. The logic behind this is very simple. An individual with an advanced technology is likely to produce more than an individual with a primitive technology. Similarly, an individual with more capital can produce more than an individual with less capital; the higher the capital per worker the higher the productivity. The good news is that it’s not hard these days to improve the state of technology for any given country due to technology diffusion which allows countries to adopt and replicate new technologies and know-how from other countries. We need to acknowledge that the underlying purpose for economic development is to increase the wellbeing of the individual and that per capita income is just one of several indicators. In addition to promoting the wellbeing of the individual policies should also be structured to narrow the inequality gap as a wider inequality gap might have political repercussions. By aiming to achieve steadily growing productivity, Governments closely watch some key factors which stimulate the economy including; Investment, consumer expenditure, what the Government spends, and the country’s Net exports to the rest of the world. Hence, in order for Somaliland to build its economy, a number of institutions and policies are needed to be in place. In here, I will present those policies and institutions which will assist Somaliland economy to develop and which will also take it to the next stage. I. Property Rights and Contract Enforcement The two aspects of the Rule of law, which restricts arbitrary decisions made by governments, that economists relate to economic growth are the Property rights and contract enforcement[2]. Reason being that no agent will make a long term investment unless their property rights are secured. It is conceivable that individuals are bound to face extra costs to defend their property where a property right does not exist. It is also arguable that economic efficiency requires the allocation of resources for those individuals who can utilize it.[3] With this respect investors in Somaliland might face several problems including tribalism which can hinder economic efficiency and can cause investors to seek protection from other agents. Though a resource has been allocated, it is highly unlikely that an individual from the east dares to make an investment in the west due to the disturbances caused by tribalism and vice versa. This is one example of why sustained contract enforcement comes in to the calculus of economic productivity. On one hand, the ability of the Somaliland state to enforce contracts needs to be established while on the other hand the ability of the state to make arbitrary decisions needs to be limited. When discussing property rights and contract enforcement the case of Zimbabwe can be a good example to refer where Ceil Rhodes’ company offered the land in order to attract settlers and where later Robert Mugabe redistributed the land just to hold on to power[4]. Whatever the reason has been for Zimbabwe, lack of property rights and contract enforcement can have disastrous effect on the economy. Somaliland will need to draft regulations of property rights in clear-cut terminologies and will also need to have a strong third party for arbitrations. II. Financial Institutions The fact that there are both entrepreneurs and people who want to invest in the country necessitates the establishments of financial institutions. “A healthy and vibrant economy requires a financial system that moves funds from people who save to people who have productive investment opportunities” (Mishkin, 2007). Before any step, Somaliland will need to establish a well functioning central bank. Apart from implementing the monetary and the exchange rate policies, the central bank is also required to supervise the banking sector and to act as the lender of last resort. In short, the central bank is the bank of the central government and the bank of all banks.[5] All financial institutions including banks, insurance companies, saving institutions and investment companies needs to be regulated by the government. One might take the so called “gain profit while sitting” project in 2009 as a good example which can clearly show the negative effects of lack of financial regulations in Somaliland. During the years this project had been operating in Somaliland, thousands of people saved their money without official agreements. All those who deposited their money were at the end screaming in the streets of Hargiesa claiming that the saving institution had disappeared and that their money had been lost. Therefore, since the failure of one bank can jeopardize the whole economy, financial institutions especially banks should be heavily regulated. According to Pilbeam (2005), the main objective of regulating financial markets is to promote stability, to keep the investors safe and to encourage fair competition in the market. All in all, as Brunnermeier (2009) said “one of the key purposes of bank regulation is to internalize the social costs of potential bank failures”. III. The Role of Diplomatic Missions in Promoting trade Diplomatic recognition cannot be said to be a precondition for economic development and lack of recognition does not exclude countries to pursue their economic growth goals. According to Shaw (2008), Recognition is merely “a method of accepting certain factual situations and endowing them with legal significance”. However, Somaliland arguably exists as a legal personality in international law. It has been emphasized that: “…Recognition may be viewed as constitutive or declaratory…, the former theory maintains that it is only through recognition that a state comes into being under international law, whereas the latter approach maintains that once the factual criteria of statehood have been satisfied, a new state exists as an international person, recognition becoming merely a political and not a legal act”.[6] Somaliland will need to see the diplomatic recognition as a quid pro quo game; scratch my back and I will scratch yours. It is highly unlikely that a country will recognise Somaliland unless that country is sure what it is getting in return is at least proportionately equal to the benefits of the recognition it is giving. Therefore, parallel to its mission in getting recognition, Somaliland should come up with strategies to promote its international trade and seek investment through its diplomatic representatives. This is also one of the core functions of diplomatic missions as defined by article 3 of the Vienna convention on diplomatic relations in 1961.[7] By concentrating economic diplomacy, Somaliland will not only promote trade and investment but will also increase its networking, promote country profile and at last will have a say in those global political organisations including the United Nations.

Oba if you want Mooge to like the president adigu maha inad hoos carartid Madaxweynaha. hadi kale Mooge madaxweynaha muufe iyo cambuulo bu ka urinaya wax fahan.

^^ You are not really helping the case lol

You cannot please every one give the president a chance for a year and than we can talk about his achievements its very difficult to lead Somalis since there is so much distrust between the people. And ofcourse not everything is perfect or will be perfect, but Somalia is slowly emerging. As for the the Prime Minister and his job we can say that the Prime Minister took the role of a mere vice president than the head of the executive branch of the government. But as long as there is some sort of governance in Mogadishu its better than what we had few years ago , so mooge you might not like the government or hassan, but support the people. the image of Somalis is tarnished all over the world. You can only help you're people if you support what is right.

Ninkan Mooge ninka mucaraad xun waligay ma arkin

Mooge agreeing with Cali khalif Galaydh this is astonishing:D

Whats the new conference in London about che?

I can move my ears while not touching my ears.

I never said the world is perfect nor is life fair but that doesn't mean we shouldn't act as humans and try to look for the positiveness of our societies. I always see things from a clear perspective African Americans some of them think White people are beasts and evil by Nature. Because of what was done to them in the early 19 century. But that doesn't mean the future has to be dictated of what happened in the past. There is a difference between hatred and distrust Somali tribes distrust each other but they don't hate each other. I don't believe there is hate between Somalis. Now distrusting feelings was cause by many factors the decimated of large segments of population during the war, nepotism. We need to think and see the bigger picture and learn from our mistakes and learn from our histories. in Africa in Asia in south America in Europe and all over the world. There is no point of repeating the same mistake over and over again.

He believes lets talk to Somalia like many but he believes that the recognition the Somalia govt received from the Washington has some consequences for Somaliland, now that can be debated and there might be some truth in that.

Kenya oo beri bilaabeysa Raafka Soomaalida Islii oo loo rarayo Xerada Dhadhaab [Daawo] on January 20, 2013 * Qoraal kasoo baxay Xafiiska Madaxweynaha Kenya Mwi Kibaki ayaa amar lagu siiyey dowlada iyo ciidamada Kenya inay bilaabaan aruurinta ama raafka qaxootiga Soomaalida ah ee ku sugan magaalada Nairobi gaar ahaan Xaafada Islii. Qoraalkan kasoo baxay Xafiiska Madaxweynaha 16kii bishan Janaayo ayaa lagu sheegay in beri oo ku beegan 21ka Janaayo hawlgalkan la bilaabi doono, iyadoo ciidamada Kenya aruurin doonaan Soomaalida ku sugan xaafadda Islii ee aan sharciga heysan. Hawlgalkan ayaa loogu magacdaray (Relocation of Uran Refugees to Officially Designated Camps) Di u rarida Qaxootiga Magaalooyinka ku dhaqan oo loo wareejinayo Xeryaha loogu talo galay. Dadka ayaa la qorsheeyey in la isugu geeyo marka hore Istaadiyumka Thika Municipal Staduim, kadibna gaadiid lagu qaado oo loo raro xerada Qaxootiga ee Dhadhaab. Qorshahan ayaa waxaa si weyn udhaliilay qaar kamid ah Xildhibaanada Soomaalida ah ee ku jira Baarlamaanka Kenya. Faarax Maalim oo shalay shir jaraa’iid ku qabtay magaalada Nairobi ayaa sheegay in arrintan ay tahay fal cunsurinimo ah isla markaana hay’adaha amaanka Qaarkood ay caado ka dhigteen in ay Soomaalida u bartilmaamsadaan si ay dhaqaale uga sameeyeen, wuxuuna sheegay in ay hay’adaha sirdoonka hawshooda kasoo bixi waayeen oo ay eeda uun dusha ka saaraan dadka Soomaalida ah oo uu sheegay in dhibaato weyn lala damacsan yahay. Daawo wareysi uu bixiyey Faarax Maalim Magaalooyinka dalka Kenya gaar ahaan Nairobi iyo Mombasa ayey bilihii lasoo dhaafay ka dhacayeen weeraro aan la aqoon kooxaha ka danbeeya, balse dowlada ay ku eedaysay inay ka danbeeyaan kooxda Al Shabaab, waxaana horey xabsiyada lagu xiray dad badan oo Soomaali ah oo aan iyagu wax danbi ah lagu helin. Waxaa sidoo kale jiray weeraro lala beegsaday goobaha Ganacsiga iyo Masaajidada Soomaalida oo ay Soomaali badan dhimasho iyo dhaawacyo kasoo gaareen. Go’aanka kasoo baxay Xafiiska Madaxweynaha Kenya Kibaki ayaa kusoo beegmaya xili dhawr todobaad laga joogo markuu dalka Kenya safarkak u yimid Madaxweynaha Dowlada Federaalka Soomaaliya Xassan Shiikh Maxamuud. Madaxweynaha Soomaaliya ayaa asagu sheegay inay doonayaanin dadka loo soo cesho balse, ay diidan yihiin in si jahwareer ah dadka Qaxootiga Soomaalida ah dib loogu soo cesho. Qorshaha Kenya hada wado ayaa cabsi weyn ku abuurtay shacabka Soomaalida ah ee ku sugan xaafadda Islii ee magaalada Nairobi oo caawa cabsi ku seexanaya, manaca cada hawlgalka balaaran intuu socon doono.

http://www.youtube.com/watch?feature=player_embedded&v=X-l7zYtblXc" frameborder="0" allowfullscreen>

khatumo versus the SNM wear wolves

Seems the author is trying to convince him self rather than Somalilanders:D

Che -Guevara;910234 wrote: Nagadaa Xaaji, this 'new generation' thinks Somalis have hooves for feet and horns on their head lool :D:D

We should ask our selves is there Something Somalis actually agree on, i can think only religion excluding the few Christians and atheists. All the other things Somalis don't agree on. Like every one talks about Somalinimo but we don't have a clear definition what Somalinimo is yet every one talks about it? For Some it means a country or the unity of the Somali inhabited areas in the Horn for others its just about social interaction of Somalis in a positive way

Ethiopia: British MP Denies UK funding the Notorious Liyuu Police Force Saturday, 19 January 2013 21:09 Somalilandsun - British MP responds to Guardian Report accusing the government of funding the Liyuu police force as misleading. Lynne Featherstone MP said " Not a penny of British money will go to the Liyuu force. We take human rights extremely seriously and recognise that reform of the special police is critical for achieving a safe and secure Somali region. That's why we are discussing with UN partners how we might work together to improve the police's human rights record. This is something that Human Rights Watch has called for. The Peace and Development programme as a whole will help over 300,000 people get access to safe, clean water, give thousands of young people an education and help 700,000 people get a job and earn an income. This is in addition to the hundreds of thousands of people who will receive better access to justice and security. The Somali region of Ethiopia is one of the most deprived areas in the country. This programme is intended to create the conditions they need to lift themselves out of poverty. " Lynne Featherstone MP is the International development minister

Those who maintain domination over the global economy need an opponent a healthy opponent so that things can be a balance. Never said the world is perfect but its up to the human race to make mother earth a better place we are the predecessors of our grand children and their children.

I don't really care much about liberal media they cant influence me how i view people. I value humans for what they are and because of their achievements black white yellow Latino Mulatow Indian Europeans Ethnic Somalilanders and the rest of Africa. Not all people have fake superiority complex Like Oba who thinks he is better than Sub saharan Bantu people when they have better economies better thriving nations better infrastructure. No my friend the world doesn't work like that i believe in justice in the constitution of the United states and when i see injustice i point that out but there is always a but i believe people should fight for their rights.

When the Lamu project is finalized in kenya south sudan will use Kenya's largest port in East Africa and it will totally ignore Khartoum and Israeli engineers will build a pipeline from Juba to Kenya

Sudan, South Sudan border talks get nowhere, delay oil exports KHARTOUM/JUBA | Sat Jan 19, 2013 6:16pm EST (Reuters) - Sudan and South Sudan on Saturday failed to agree on how to withdraw armies from their disputed border after a round of talks in Ethiopia, delaying again the resumption of crucial oil exports. The African neighbors came close to war in April in the worst border clashes since South Sudan seceded from Sudan in 2011 under a 2005 deal which ended decades of civil war. After mediation from the African Union, both countries agreed in September to set up a demilitarized buffer zone and resume oil exports from landlocked South Sudan through Sudan. Oil is vital to both economies. But neither side withdrew its army from the 2,000-km (1,200-mile) border due to mistrust left from one of Africa's longest civil wars. To end the stalemate the AU brought together Sudan's President Omar Hassan al-Bashir and South Sudan's Salva Kiir two weeks ago in Ethiopia. But after a week of talks in Addis Ababa to discuss how to set up the buffer zone, as agreed by the presidents, both sides accused each other of making new demands. "We were facing difficulties during the talks in Addis Ababa because of the changing position of South Sudan which keeps altering every time we reach an agreement," Sudan's defense minister Abdel-Rahim Mohammed Hussein told reporters after his return at Khartoum airport. Talks would be postponed until February 13, he said. Hussein said South Sudan made new demands for demilitarization of a disputed border area called Mile-14 and had not given up support for rebels fighting Sudan's government. Khartoum accuses Juba of backing Sudan People's Liberation Movement-North (SPLM-North) rebels in South Kordofan and Blue Nile, two Sudan states bordering the South. Juba denies this. The SPLM-North, made up of fighters who sided with the South during the civil war, controls part of the Sudan side of the border, which complicates setting up the buffer zone. South Sudan accused Sudan of refusing to withdraw its forces from the border and making new demands regarding "Mile-14". "The Republic of South Sudan also agreed to resume oil production immediately ... (but) Sudan has refused to accept the oil for processing and transporting in Sudan," until the buffer zone was fully operational, South Sudan said in a statement. MORE DELAYS South Sudan, which says Sudan often bombs its territory, shut down its entire oil output of 350,000 barrels per day (bpd) a year ago after failing to agree export and transit fees with Khartoum. It had hoped to be producing 230,000 bpd by December. Crude from southern fields will take two months to reach the Red Sea terminal on Sudan's coast after output resumes, South Sudan said this month, suggesting exports are unlikely to hit markets until April or even May after the latest delay. The AU had planned to publish last week a timetable for setting up the buffer zone. But in a statement on Saturday it only said both sides had made "substantial progress" and would hold further talks regarding the buffer zone and "the key issue on when oil exports could resume and under what circumstances." It did not say when talks would resume. Apart from oil and the buffer zone, the two countries must also agree on ownership of Abyei and other disputed areas. On Thursday, Juba had raised hope of an understanding when it said it had started withdrawing its army from the border. But it was unclear whether Juba had actually begun pulling out its forces because its military spokesman Philip Aguer told Reuters the army was still awaiting orders to do so.

Its still wrong you cannot hate people based on the color of their skin and their physical appearance

Racism is never good every one is equal in the eyes of Allah

Assad's overthrow "red line" for Iran: supreme leader's aide Reuters – 22 mins ago Reuters/Reuters - Syria's President Bashar al-Assad answers journalists after a meeting at the Elysee Palace in Paris, December 9, 2010. REUTERS/Benoit Tessier DUBAI (Reuters) - A senior aide to Iran's supreme leader warned against the overthrow of Syria's President Bashar al-Assad, saying his fate was a "red line", in one of the Islamic state's strongest messages of support for the Damascus government. Iran has steadfastly backed Assad's rule since an uprising against his rule began almost two years ago and regards him as an important part of the axis of opposition against arch-foe Israel. "If the Syrian President Bashar al-Assad is toppled, the line of resistance in the face of Israel will be broken," Ali Akbar Velayati, who is seen as a potential contender in Iran's June presidential election, said in an interview broadcast on Sunday. "We believe that there should be reforms emanating from the will of the Syrian people, but without resorting to violence and obtaining assistance from the (United States of) America," he told Lebanon's Al-Mayadeen satellite television. Asked if Iran sees Assad as a red line, Velayati said: "Yes, it is so. But this does not mean that we ignore the Syrian people's right in choose its own rulers." More than 60,000 people have died in the uprising against Assad, part of the Arab Spring protests that have swept aside four heads of state since 2011. Iran, a regional Shi'ite Muslim power which backs Lebanon's Hezbollah group, describes many Syrian opposition groups as "terrorists" who are backed by Western and Arab states. Assad follows an offshoot of Shi'ite Islam. Velayati blamed what he called "reactionary" Arab states for the violence in Syria and singled out Qatar, accusing it of bringing in fighters from Somalia and Afghanistan to help topple Assad. Velayati said all parties linked to the crisis in Syria needed to negotiate. "Anyone who comes to the talks cannot negotiate on the table and support the armed elements, but must enter the negotiations and stop supporting the armed elements," he added. The Islamic Republic has sought international backing for its six-point plan to resolve the Syrian conflict. The plan calls for an immediate end to violence and negotiations between all parties to form a transitional government, but does not call for Assad to step down. (Reporting by Sami Aboudi; Editing by Andrew Heavens)