Somaliland is self-declared state located in horn of Africa, it have been self-governing state since last two and half decades. But its clime of independent is no recognized by the international community and Mogadishu also. Yet, this did not prevent Somaliland to make remarkable efforts in domestic and regional markets.
when Somaliland came into being, the government have realized the urgent need of disarming among the tribes to establish and maintain political stability, but never acknowledged precarious nature of the base of Somaliland’s Economy, identified areas and strategies that could be given also an urgent consideration.
A country that was among the poorest in the world and had no industries to speak of, almost no industrial raw materials, no significant industrial or commercial groups. It was difficult to see how Somaliland’s economy could grow more rapidly than its population. Economic chaos and political disintegration seemed more likely.
The metamorphoses over a view years confounded some of the prophets of doom who predicted total anarchy in, and inhalation of, the country. By the beginning of 2002, after a peaceful presidential election, the tone of dismay has changed considerably. and thus Somaliland’s government have proved the level of political stability and unity it had maintained. But the expectation of economic chaos existed.
There is a general believe amongst economists policymakers and the general public that industrialization implies economic growth and development, unless countries industrialize the assumption goes, they will continue to remain un or underdeveloped[i].
The most striking feature of Somaliland’s present economy is the market contrast between it is vast livestock resource and it is industrial backwardness. A country that occupies second position of exporting live livestock (sheep and goat)[ii] in worldwide does not have any meat or milk industry. The exported number of livestock in 2014 have reached 3.4 million with an earnings of $244.8 million[iii]. Yet there is no policies to lead and guide the country for optimum utilization of livestock resources, such as industrializing meat and milk, to export in a larger number. There is obviously a need for an effective policy and planning framework that will optimize development resources and provide the necessary support and economic environment to allow a country’s livestock resources to express its potential.
The estimated number of livestock heads in Somaliland were 12.2 million in 1999[iv], if we suppose that a growth of 20% annually is accompanied, this will demonstrate us that the existence livestock number in Somaliland is 56.12 million, by the deduction of 1.94 million heads annually exported since last 18 years[v], the estimated remaining heads of livestock in Somaliland will be 21.2 million. This clearly shows us that in the near future Somaliland’s livestock may eradicate, the most important source of foreign cash and the country’s economic backbone may vanish if a proper and good policies are not implemented.
As 2014 GDP analyses shown, Somaliland GDP was derived from livestock industry in a ratio of 30%, followed by 20% from wholesale and retail trade (including the informal sector); 8% from crops and 6% from real estate activities[vi]. since Somaliland came into existence no policies have been formulated to implement regarding enhancement and accumulation of livestock resources, the one and only thing that Somaliland exports to the world and its economy completely relay on.
Since last view months the country have witnessed its worst inflation, it badly affected the middle class and lower class of the country that used to benefit from livestock businesses. The economic chaos prediction which was expected before 27 years still exists, and year after year the country’s currency inflation is going high.
Somaliland is the second largest live livestock (sheep and goat) exporting country in worldwide, yet since Somaliland came into existence, a single policy has not been adopted by the government to encourage industrialization of meat and milk, or livestock farming which is regarded as a highly profitable business, as long as the livestock resource is the mainly important resource of the country and exporting of it is the most valued source of foreign currency for the country. If good policies are not formulated for the control and enhancement of quantity and the quality of country’s livestock, it may lead to eradication of it, that will cause to the country to face its worst unemployment since a very large number of people work in that sector.
Conclusion and suggestions
Livestock is the most important resource that the country have it, and completely dependent on it. So, the country needs to formulate good policies that may govern the resource and protect it from eradication, since it is the backbone of the country’s economy.
Industrialization of meat and milk must be encouraged and restrict regulations should be implemented by the live livestock exports, and the number of daily butchered animals must be also decreased.
Prepared by: Abdiqani Eid Elmi
[i] Book; issues of Pakistan economy