Djibouti Aims to Be Regional Hub

[Somalina]

Djibouti, Arab World’s Most Expensive City

 

Hiiraan Online

Monday, July 25, 2011

By Abdullahi Jamaa

 

 

Djibouti is ranked the most expensive city in the Muslim and Arab world as the cost of living in most of cities around the globe hits record high in recent years.

According to an economic survey by Mercer, a global leader in human resource consulting, outsourcing and investment services, Djibouti and Khartoum are ranked among the top 50 most expensive cities in the world.

 

“Two main factors determine a city’s ranking in Mercer’s Cost of Living survey: 1. the relative strength or weakness of the relevant currency against the US dollar over the prior 12 months; and 2. price movements over the prior 12 months compared to those in New York City as the base” indicated the survey that was done in March 2011.

 

Djibouti’s ranking in cost of living is attributed to its skyrocketing rise in accommodation and housing expenses, raising the general cost of living for expatriates.

 

According to Mercer, Tunis remains the least costly in the Arab region as the rankings of four Arab cities increased in 2011, while those of the remaining 16 cities dropped this year.

 

The survey covers 214 cities across five continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

 

“It is the world’s most comprehensive cost of living survey and is designed to help multinational companies and governments determine compensation allowances for their expatriate employees” Mercer survey

 

Top 10 ranked cities are dominated by Africa, Europe and Asia as Luanda in Angola remained the world’s most expensive city, and Karachi in Pakistan maintained its status as the least costly city globally.

 

Nathalie Constantin-Métral, Senior Researcher at Mercer responsible for compiling the ranking each year, commented: ““During the period of data collection for this year’s survey the world witnessed an incredible number of natural disasters and political upheavals that have all affected the lives of expatriate employees to some extent. Currency fluctuations and the impact of inflation on goods and services – petrol in particular -have led to some reorganisation of the ranking,”

 

“Overall, the cost of living in cities across Europe has remained relatively stable, while in Africa the picture is patchy with the limited availability of accommodation leading to increased living costs in some key cities". Said Ms Constantin-Métral.

[N.O.R.F]

Djibouti is going nowhere fast. The airport remains the same dilapidated building without air conditioning I first transferred through in 2000. No change whatsoever.

 

For there to be development it should be easy to get in and out of a country. It is easier getting in and out of Hargaisa and Berbera.

[Che -Guevara]

looooooooool@Somalina...carabeey xaal qaado.

[Xaaji Xunjuf]

Noolow Ismacil cumarow Noolow

[Saalax]

For a country that was recognized since 1977 it has not much to show for in all honesty. But congrats to them.

[Carafaat]

Djibouti is already the regional hub for Ethiopia and the Somalia penisula. Its development is interwined with that of the region.

 

And as long as the world perceives the Horn of Africa as a fragile region, you cant expect more then it already has achieved. This is the best Djibouti can due.

[Abu-Salman]

There are more rents than ever thanks to piracy, a captive huge market for its modernised port that is growing fast and other mega infrastructure projects ;

yet, all this has only profited few apparatchiks and highly skilled professionals ready to tolerate them, while the rest has to deal with soaring, already relatively high cost of living.

 

One could argue that it is indeed a textbook case of "Resources curse" similar to that of other minerals rich countries (Brass, Jennifer, 2008. “Djibouti’s Unusual Resource Curse.” Journal of Modern African Studies) and blame mismanagement, corruption and nepotism;

however, the deeper truth is that colonial legacies, maintained by mostly French neo-colonialism has, here too, deliberately orchestrated this African tragedy.

 

The good news is that France is losing its influence and appeal, with the elites sending their kids to Malaysia, Arab countries, Canada etc despite the widespread French passports, while local cultures are more valued...