Saturday, May 25, 2013

Somalia Government and Economy

Somalia’s Transitional Federal Institutions are the governmental foundations that were established in October-November 2004 at a conference that was held in Kenya. They include the Transitional Federal Government (TFG), the Transitional Federal Parliament (TFP) and the Transitional Federal Charter (TFC). 

The Transitional Federal Government was, until the 20th of August 2012 (date of establishment of the Federal Government), the internationally recognized government of Somalia. It officially included the executive branch of the government and the legislative branch which was represented by the Transitional Federal Parliament. 

In 2006, the southern part of the country was overcome by the Islamic Courts Unions (ICU) which forcefully and without delays established the Sharia law. Despite the TFG’s efforts, it was only with the help of Ethiopian troops, the African Union pacemakers, and some air support from the U.S. that it managed to reinforce its rule by defeating and chasing away the ICU. 

In the 14th of October 2010, Somalia’s new Prime Minister was appointed –namely, Mohamed Abdullah Mohamed who, abiding by the Transitional Federal Charter of The Somali Republic, named a new cabinet in November 12th of that same year.

Surprisingly enough, despite suffering from the civil war, Somalia’s economics remained relatively well-preserved although it is mostly based on livestock, telecommunications and money transfer companies. 
Because of the civil unrest, it is hard to give an accurate estimation of the growth of economy. Nevertheless, the private is believed to have noticeably grown especially the service-related one. Contrarily to what it was like before the civil war began, the services are no longer monopolized by the government since there were some important private investments carried out, most of which were financed by the Somali Diaspora. The customary law is supposedly held responsible for this increase. 
It is important to note, however, that the Central Bank of Somalia is the country’s official monetary authority but it is still assuming the task of formulating implementing monetary policy.
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