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RebelLion1 wrote:Read this book: http://books.google.com/books?id=ZiGD2f ... my#PPP5,M1
i just want to a nice cliffnote 
James Dahl wrote:Until 1960: Camels, Fish, Goats, Sugar, Cattle and Bananas.
After 1960: Camels, Fish, Goats, Sugar, Cattle, Bananas and billions of dollars in Soviet development aid. Somali renaissance.
After 1969: Industry is screwed over by Scientific Socialism, economy depends on Soviet development aid alone, but there's tons of it so that's fine. Somalia goes from being an exporter to an importer of most goods.
After 1978: Soviet aid dries up, USA refuses to take it's place, government turns to oil exploration as the magic solution to all their problems.
1991: Oil exploration fails to deliver in time to stop the whole system from collapsing. Civil war displaces the farmers and agro-pastoralists from their land, preventing the Sugar and Banana industries from recovering. Overfishing by foreigners means that the Fish industry will never be the same as in colonial times. That leaves Camels, Goats and Cattle.
After 1996: Ex-Fishermen take up Piracy to compliment Camels, Goats and Cattle. Remittances from abroad also become one of the biggest sources of cash.
After 2000: Rumors of Rift Valley Fever causes gulf states to stop buying Somali goats, oil exploration begins again. Telecommunications in Somalia race ahead of neighboring countries due to a lack of regulatory problems.
Gedo_Boy wrote:Foreign aid just creates indebtedness. That is the main idea.
Aid creates debt. Debt creates Influence. Influence creates control.
The idea is eventually to take control of national assets and privatize so it doesn't benefit the local people.
James Dahl wrote:After 1969: Industry is screwed over by Scientific Socialism, economy depends on Soviet development aid alone, but there's tons of it so that's fine. Somalia goes from being an exporter to an importer of most goods.
Voltage wrote:James Dahl wrote:After 1969: Industry is screwed over by Scientific Socialism, economy depends on Soviet development aid alone, but there's tons of it so that's fine. Somalia goes from being an exporter to an importer of most goods.
Please source.
Relying on Soviet advisers and a committed group of Italianeducated Somali "leftist" intellectuals, Siad Barre announced the 1971-73 Three-Year Plan. The plan emphasized a higher standard of living for every Somali, jobs for all who sought work, and the eradication of capitalist exploitation. Agricultural "crash programs" and creation of new manufacturing plants were the immediate results.
Siad Barre quickly brought a substantial proportion of the modern economy under state control. The government nationalized banks, insurance companies, petroleum distribution firms, and the sugar-refining plant and created national agencies for construction materials and foodstuffs. Although the Somali neologism for socialism, hantiwadaag, could be translated as the "sharing of livestock," camel herds were not nationalized, and Siad Barre reassured pastoralists that hantiwadaag would not affect their animals. To mollify international business, in 1972 Siad Barre announced a liberal investment code. Because the modern economy was so small, nationalization was more showmanship than a radical change in the economy.
The creation of cooperatives soon became a cornerstone in building a socialist economy. In 1973 the government decreed the Law on Cooperative Development, with most funds going into the agricultural sector. In the precoup years, agricultural programs had received less than 10 percent of total spending. By 1974 the figure was 29.1 percent. The investment in cooperatives had limited long-term results, however. In Galole near Hargeysa, for example, a government team established a cooperative in 1973, and government funds helped purchase a tractor, a cooperative center, and a grain storage tank. Members received token salaries as well. But in July 1977, with the beginning of the Ogaden War, state involvement in Galole ended; by 1991 the cooperative was no longer in operation.
Cooperatives also aimed at the nomad, although on a smaller scale. The 1974-78 Development Plan allocated only 4.2 percent of the budgeted funds to livestock. Government officials argued that the scientific management of rangeland--the regeneration of grazing lands and the drilling of new water holes--would be possible only under socialist cooperation. In the fourteen government-established cooperatives, each family received an exclusive area of 200 to 300 hectares of grazing land; in times of drought, common land under reserve was to become available. The government committed itself to providing educational and health services as well as serving as a marketing outlet for excess stock. Neither agricultural nor fishing cooperatives, however, proved economically profitable.
Integrated agricultural development projects were somewhat more successful than the cooperatives. The Northwest Region Agricultural Development Project, for example, survived the 1980s. Building upon the bunding (creation of embankments to control the flow of water) done by the British in the 1950s and by the United States Agency for International Development (AID) in the 1960s, the World Bank picked up the program in the 1970s and 1980s. Yields from bunded farms increased between 2.40 and 13.74 quintals per hectare over the yields from unbunded farms. However, overall improvement in agricultural production was hardly noticeable at a macroeconomic level.
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