Sorry mate somalia is not a country, there is no central government, no banks.
somalia is not a good example becuase its economy does not play by the rules that you are comfortable with.
I was expecting you to use an example of a developing country that plays by IMF/world bank rules is stable and has been given the status of well behaved student by them.. something like ghana or Mali for example.
These countries play by the rules but are still dirt poor, and most people cannot see how they will be a developed country or at least eliminate poverty in 20 years.
Ok lets look at ethiopia then, and lets assume that this is an ethiopia in an alternate reality, where the political problems have been resolved,
and is some sort of stable democratic government that wants to eliminate poverty.
how would you eliminate extreme poverty by following the guidelines of the quran.
the first khalifate of the khulafa al rashidun particularly under the reign of Umar did not eliminate poverty but made sure that the basic needs of the people were met.
This means, food, shelter, clothing and work.
how was this done?
The previous practices in the newly conquered lands of syria, Iraq and egypt and Persia were removed.
The former taxes were removed and only the khumus or 1/5th tax on production was left along with the jizya for non muslims and the mandotary 2.5% zakat on the muslims.
All forms of money lending on interest was banned. and wieght and measures standardized along with the gold dinar and dirham
The taxes on agricultural production at 20% seem high but were less than half the rates of. the byzantines, and even the persians, these went direct to the bait al mal
Then for the first time in history the government in this case khalifs umar through the bait al mal, provided funds to the majority of the people who were christian, interest free to purchase seeds and equipement and also into maintaing and further developing the irrigation system and roads.
funds from the bait al mal also went into what later became caravanaseries, which were basically strategically located inns providing free accomodation, warehousing and food to merchants along the trade routes.
Khalifa umar did not know it , he was basically following the quran and hadith and trying to improvise , but he was responsible for setting off the muslim agricultural revolution.
http://en.wikipedia.org/wiki/Arab_Agric ... Revolution
Within only 30 years of the prophets death, the entire region underwent an economic boom.
The christian peasants were for the first time able to own land freely and buy and sell them without bineg subject to class or religous restrictions.
They could travel anywhere, trade anywhere safley from india to spain opening up the huge market.
Living standards were much higher than during the best periods of Byzantine rule.
To sum it up.
1. Land reform
2. An interest free currency ( eliminating all forms of
3.Free trade without any monopolies (not todays interpretation of free trade).
4. Zakat providing the safety net to the poor
5. Investment in long term improvement in infrastructure
