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Jacaylbaro

Somaliland: Open for Business

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Amid the war-ravaged landscape of Somalia, the self-declared independent state of Somaliland has carved out a reputation for relative calm.

 

Last week's London conference on Somalia made a nod to Somaliland, formerly a British protectorate, and the semi-autonomous region of Puntland. Without naming them, the final communique "welcomed the success in some areas of Somalia in establishing local areas of stability, and agreed to increase support to build legitimate and peaceful authorities, and improve services to people living in these areas".

 

Neither region was named because of Somalia's political sensitivities. Somaliland has not been recognised internationally since it broke away in 1991 after the fall of Siad Barre, the Somali dictator, and Somalis strongly reject the idea of Somaliland's independence. It was a diplomatic breakthrough in itself to have Ahmed Mahamound Silanyo, the Somaliland president, present at last week's meeting.

 

 

FULL STORY

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Somaliland will need the money. Its 2012-16 national development plan (pdf) published in December set out a capital investment proposal of $1.19bn. The government is expected to provide $74m, the private sector $132m, the diaspora $4m, but the overwhelming amount is expected to come from aid donors – $979m, 82% of the total investment plan.

Somaliland's minister of planning, Dr Saad Shire, provided an overview of Somaliland's economic objectives before an enthusiastic crowd of supporters in the UK parliament on Wednesday at a session chaired by Alun Michael from the all-party parliamentary group for Somaliland. The message was that Somaliland was open for business.

 

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Blessed   

Great stuff! I personally think this is way more important than recognition, jobs and some much needed competition. Waan soo socdaa with my ice cream fan. :D

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LANDER   

*Blessed;797449 wrote:
Great stuff! I personally think this is way more important than recognition, jobs and some much needed competition. Waan soo socdaa with my ice cream fan.
:D

Well Said and I totally agree! move over with your ice cream, I plan on monopolizing the street food vending with my world famous 'Bagiya'

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Oodweyne   

I was there, and It was good do, really. Also, I must say, Dr Saad Shire at the planning ministry is a fantastic and detail orientated policy man; and, therefore, we are lucky to have his kind of man at the helm of the one of the most important developmental phase of Somaliland.

 

Secondly, he is very good persuader of his argument. Hence, the DfID and Mr. Andrew Mitchell have a good partner in him; when it comes to Somaliland development and what expert and know-how assistance they will be able to provide in turn.

 

All in all, it was a good day work for Somaliland; and, I suspect, that the legitimate investment houses in the city of London, will be soon calling in Hargeisa; since Somaliland Developmental Corporation (SDC) was set up to lure these sort of old fashioned investment houses into Somaliland.

 

In other words, steady as she goes approach is what we are seeing in here; provided, any political turmoil in Somalia does not gets into our shores. If that is, God forbid, such a thing were to happen in the next six to eight month; which is most crucial period for us in Somaliland and for Somalia, indeed.

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lol so we'll buy baagiye from Lander on Gabiley streets?

 

I remember back in around Christmas 2001 in a small French town buying an irresistible "crepe with nutella".

Street vendors in the West make good profits.

Who knows if the economy take off these may be lucrative though not a healthy diet...

 

:D

 

 

 

PS: Saad Shire 4 years plan leave almost nothing to vital health services though!

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The Sage   

"Foreign direct investors will pay no tax for three years. After that they will have to pay only 10% on profits, which can be freely repatriated. There will be full compensation for any expropriations, which would be done only in the "public interest". There will also be no minimum wage. Shire listed a number of foreign investors already doing business in Somaliland, including Coca-Cola, Western Union and Nubian Gold."

I'm not a fan of neoliberalism or the Washington consensus, but it appears that this "trade barrier removal" and "investment liberalization" method appears to be giving Somaliland's economy significant amounts of investment and foreign exchange. I suppose time will tell if this experiment in neoliberalism was the right way forward. I for one am optimistic though.

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LANDER   

Abu-Salman;797457 wrote:
lol so we'll buy baagiye from Lander on Gabiley streets?

 

I remember back in around Christmas 2001 in a small French town buying an irresistible "crepe with nutella".

Street vendors in the West make good profits.

Who knows if the economy take off these may be lucrative though not a healthy diet...

 

:D

 

 

 

PS: Saad Shire 4 years plan leave almost nothing to vital health services though!

Gabiley is too small a market we're aiming to have H-town on lock first. Plus I heard Gabiley's mayor, she's a little too hands on in everything that goes down over there and I like to keep control of my financial affairs :D

 

Sage,

 

Liberal and neo-Liberal economic theories are for western academics to hagle over, we're talking about real every day people ish son! Bagiye business for me :D Ice cream biz for Blessed if you holla at us we may just allow you to buy into our little venture.

 

Real talk though, Somaliland has a fairly free movement of capital, labor and investments. There is virtually no government interference at the moment, that creates an ideal investment environment for those willing to come there and put there money to work. You don't wanna tamper with that right now. Plus we haven't reached the level of worrying about foreign capital influence in the economy and protecting domestic industries. The country has to attract a significant amout of FDI before we start to worry about which direction or model would be most beneficial to our people as a whole.

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Oodweyne   

Sage,

 

I agree with you on the neoliberal side of things. But, as you know that as a unrecognized state, you can't play any sort of protectionist agenda or even a mercantilism sort of state. Hence, your best bet is to encourage inward investment with a larger incentive to under-cut the competition in the region. So, that way could be route to follow in here.

 

And, in that sense, we are no different than the route Singapore under the famous Mr. Lee took it in late 1960s, in-order so that in 30 years time, his country could be in the OECD; through combination of economical liberalism, free trade, minimum regulation, highly educated work-force with a motivated sense of themselves; and, lastly, transparent rule of law with it's maximum protection for the property right, in which he adopted it at that time.

 

Admittedly, there is lot that can go wrong in these sort of political-economy description; but, at the end of the day, one must asses the social and economical capital that one has in one's country, and then, tailor your developmental path accordingly. Hence, all things considered, I think this route is the one we are likely to achieved much, if we follow it up remorselessly indeed, which ever government comes to power in the future elections.

 

Of course, there has to be a vigilant on the part of state to make sure no monopolies or gilded-age discrepancies in wealth and a large socially crippling inequality of income must never be allow to develop in the wake of the neoliberal economical agenda that we will be following in the near future.

 

Since, in most cases the neoliberal economical prescription has a tendency to morphed into these sort of societal ailment (i.e., high inequality of wealth distribution; social deprivation and extreme environmental damage). Which is essentially what happened to UK in 19th century when this neoliberal economical order was all the rage (in those days it used to be call the liberal or the English economical order); as Mr. Charles Dickens have recognized it; since he talked about endlessly in his books.

 

But, still we are growing nation with lots of potential and large expanding literate working force age group to content with; hence, I believe, we shall have no truck with a heavy regulated economy or it's twin-sister of a large social safety-net at this time of our development.

 

All in all, the national developmental plan (http://slministryofplanning.org/images/nationl_plan/ndp.pdf) really makes good sense of our condition and what economical incentive we are likely to provide to outside investors, indeed.

 

It's a good read, therefore see to it to give a go to understand where Somaliland is coming from.

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