Economic Model?
Posted: Sat Apr 18, 2015 1:49 am
What is the best economic practice for SL?
How do you describe it's current system and what are the pros and cons?
Personally I feel SL is a free market that is completely deregulated. In fact, it is over deregulated. I have no problem with deregulation as long as its growing the economy but why isn't SL's over deregulated market adding any jobs?
Economists long argued deregulation is the best form of generating jobs. The US is good example compared to the EU. The US added over 40 million since 1970s while the EU only generated 8 million jobs in the same period. They say its due to Reagan's deregulation policy.
Unemployment seems to be growing rather than coming down. There is no middle class and the wealth remains to be in the hands of the same people prior to 1991 such as Dahabshiil, Omaar, Deero, etc. Name 5 home-grown SL millionaires that joined the market since 1991.
I think one main reason deregulation isn't working well in SL is the lack and absence of banking sector all together. I believe the introduction of banking sector, borrowing ability to finance a new business and thus create jobs will make a difference.
I think people focus too much on politics and what hebel said about hebel-----and the endless quest of recognition and little time is given to reflect the truth. We have Harvard economists such as Jamal Ali Hussein who would rather be under Faisal Ali Warabe than make economic sense and help develop economic programs.
The focus should be universal education, poverty reduction, downing unemployment rates, infant mortality and growing a middle-income class. All can be done even without a recognition. I don't believe that recognition is a magic bullet.
Myself I support mixed economy that is service based rather than resources driven or raw materials. I believe in developing the ports, airports, heavily investing in human capital and tourism (need for resorts along SL's 600km long coastline). I would not call for manufacturing either at this moment. That is like placing the cart before the horse. SL first needs secure water and electricity for that to work.
The Somaliland Development Fund is a great idea but I feel all should not be used to fund public projects such as water and roads but 20% should go towards financing private entities. It should not be grants but rather investment in sustainable and potential business ideas/projects. upcoming entrepreneurs should be able to pitch their ideas, products or vision for the fund and once all criteria are met they should invest in them sort of like Dragon's Den or Shark Tank.
Investment and capital development must be distributed especially along the long coastline. People must be encouraged to settle in the coast. SL coast is probably the emptiest place on earth.
Have your say.
How do you describe it's current system and what are the pros and cons?
Personally I feel SL is a free market that is completely deregulated. In fact, it is over deregulated. I have no problem with deregulation as long as its growing the economy but why isn't SL's over deregulated market adding any jobs?
Economists long argued deregulation is the best form of generating jobs. The US is good example compared to the EU. The US added over 40 million since 1970s while the EU only generated 8 million jobs in the same period. They say its due to Reagan's deregulation policy.
Unemployment seems to be growing rather than coming down. There is no middle class and the wealth remains to be in the hands of the same people prior to 1991 such as Dahabshiil, Omaar, Deero, etc. Name 5 home-grown SL millionaires that joined the market since 1991.
I think one main reason deregulation isn't working well in SL is the lack and absence of banking sector all together. I believe the introduction of banking sector, borrowing ability to finance a new business and thus create jobs will make a difference.
I think people focus too much on politics and what hebel said about hebel-----and the endless quest of recognition and little time is given to reflect the truth. We have Harvard economists such as Jamal Ali Hussein who would rather be under Faisal Ali Warabe than make economic sense and help develop economic programs.
The focus should be universal education, poverty reduction, downing unemployment rates, infant mortality and growing a middle-income class. All can be done even without a recognition. I don't believe that recognition is a magic bullet.
Myself I support mixed economy that is service based rather than resources driven or raw materials. I believe in developing the ports, airports, heavily investing in human capital and tourism (need for resorts along SL's 600km long coastline). I would not call for manufacturing either at this moment. That is like placing the cart before the horse. SL first needs secure water and electricity for that to work.
The Somaliland Development Fund is a great idea but I feel all should not be used to fund public projects such as water and roads but 20% should go towards financing private entities. It should not be grants but rather investment in sustainable and potential business ideas/projects. upcoming entrepreneurs should be able to pitch their ideas, products or vision for the fund and once all criteria are met they should invest in them sort of like Dragon's Den or Shark Tank.
Investment and capital development must be distributed especially along the long coastline. People must be encouraged to settle in the coast. SL coast is probably the emptiest place on earth.
Have your say.
