A Tale of Two Futures: How Somaliland built stability while Somalia battles crisis

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A Tale of Two Futures: How Somaliland built stability while Somalia battles crisis
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A Tale of Two Futures: How Somaliland built stability while Somalia battles crisis
Post published:February 1, 2025
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(Photo: Social Media)
By Adam Daud Ahmed
Addis Abeba – Somaliland and Somalia represent two sharply contrasting approaches to governance in the Horn of Africa. While both have had a common historical foundation, they have taken diametrically opposite routes in terms of stability, governance, and economic autonomy. While Somalia has remained mired in instability and foreign dependence, Somaliland has emerged as a secure and self-sufficient nation.

Many have referred to Somalia as a “failed state,” factoring in weak governance, pervasive insecurity, and overwhelming reliance on foreign aid. The absence of centralized authority has given way to fragmented institutions and inefficient coordination at various levels among the federal government and regional administrations. Corruption and mismanagement have further diminished public trust and eroded the functionality of the state.

Chronic insecurity, contributed mainly by militant groups like Al-Shabaab, tends to undermine governance, diverts resources that are vitally needed for development, and becomes a deterrent to investment, both domestic and foreign. Insecurity feeds into economic stagnation in this vicious circle, deepening Somalia’s dependence.

Another big challenge is the financial fragility of Somalia, whose budget is greatly supported by foreign aid, making the government susceptible to shifting donor priorities. This is further amplified by huge dependence on security infrastructure provided by international forces, such as those from the African Union, while domestic forces are underfunded and poorly trained.

This cycle of dependence can only be broken when radical reforms are undertaken to strengthen governance, reduce corruption, and foster self-reliance. Unless these systemic issues are resolved, stability and development in Somalia will not be achieved.

On the contrary, Somaliland has built itself into a stable, democratic, and self-sufficient state without gaining an official international legal status. Its political stability is assured through transparent processes of elections and transfer of political power, supplemented by strong institutions at the service of the rule of law. These aspects have engendered confidence within the citizenry and accounted for Somaliland’s persistent stability.

Somaliland depends economically on domestic revenue, brought in by taxation, trade, and tariffs levied at the very important Port of Berbera. It is this fiscal independence that allows it to apportion resources well, apportioning for security, infrastructure, and economic development without any overdependence on external aid.

Although not officially recognized, Somaliland’s governance gained respect from the international community. Through strategic projects set up, such as the development of the Berbera Port, Somaliland has been integrated into global trade networks, thereby cementing its economy and influence within the region.

The future holds many promises for Somaliland in terms of development. Of course, recognition by the international community would open wider opportunities for investment and development. Besides, the stability of Somaliland can place it in a position to lead the peace and economic cooperation process across the Horn of Africa.

The divergent trajectories of Somalia and Somaliland underscore the transformative power of effective leadership, strong institutions, and self-determination. Somalia’s persistent challenges highlight the urgent need for comprehensive reforms, while Somaliland stands as a testament to the possibilities of resilience and independence.

Somaliland represents the crucial ingredients of governance and self-reliance in pursuing development and stability. It is a beacon of hope, a model to other countries in the region on how good leadership combined with strong institutions can surmount apparently insurmountable challenges.

These contrasting stories of the two states remind us of how differently governance and vision can shape national destinies. AS

By Adam Daud Ahmed

Adam Daud Ahmed is a political and security analyst in the Horn of Africa.

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