Sure, Somalia is failed state, but what makes the success of its economy. Here is an article that unravels the secret behind Somali’s economy with out state. This article draws heavily on research “Somalia After State Collapse: Chaos or Improvement?” coauthored by Benjamin Powell Ryan Ford and Alex Nowrasteh, published in the Journal of Economic Behavior and Organization, vol. 67, 2008.
Somalia’s economy and the biological theory ”Life will find a way” have many similarities. despite prolonged wars, famine, and destruction of basic economic infrastructure, Somalia’s economy not only survives but thrives. Telecommunication, electricity, water, and basic services are available. In fact Mubarak calls that it never stops but stumbles’. Although we don’t have to romanticize for the current economic development in the absence of effective government, we can together witness the private sector involvement in service provision. In comparison of the current situation with the period when Somalia had government, one can see the increasing involvement of the private sector in production and service provision.
This brings us to look into what was the impact of that shift? in this blog, questions pertaining Somalia’s economy with out state will be tackled.