12 April 2009

thank you, jesus

that i was not born in somalia---a political system in chaos and per capita annual income at $600---given the choice between the marginal existence of a nomadic herder, like a large portion of the population, or the big money to be gained by piracy on the high seas, it's little wonder that pirates are becoming somalia's elite---the cia's description below of the somalian economy reminds one of the value of good government and a well-ordered society, in spite of what libertarians claim---sure, you might could survive that way, but why would you want to?

Despite the lack of effective national governance, Somalia has maintained a healthy informal economy, largely based on livestock, remittance/money transfer companies, and telecommunications. Agriculture is the most important sector, with livestock normally accounting for about 40% of GDP and about 65% of export earnings. Nomads and semi-pastoralists, who are dependent upon livestock for their livelihood, make up a large portion of the population. Livestock, hides, fish, charcoal, and bananas are Somalia's principal exports, while sugar, sorghum, corn, qat, and machined goods are the principal imports. Somalia's small industrial sector, based on the processing of agricultural products, has largely been looted and sold as scrap metal. Somalia's service sector also has grown. Telecommunication firms provide wireless services in most major cities and offer the lowest international call rates on the continent. In the absence of a formal banking sector, money transfer/remittance services have sprouted throughout the country, handling roughly $2 billion in remittances annually. Mogadishu's main market offers a variety of goods from food to the newest electronic gadgets. Hotels continue to operate and are supported with private-security militias. Somalia's arrears to the IMF continued to grow in 2008. Statistics on Somalia's GDP, growth, per capita income, and inflation should be viewed skeptically.

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