Saturday, May 25, 2013

Somalia Government and Economy

After the end of Transitional Federal Government (TFG), the Federal Government of Somalia was formed on 20 August 2012.

The president of Somalia, currently, Hassan Sheikh Mohamud, runs the Federal Government of Somalia. The cabinet reports to the president through the Prime Minster.

The national constitution decides the way to run the government. It was passed on 23rd of June 2012. Somalia is officially known as the Federal Republic of Somalia and according to the new constitution, is a federation.

Despite civil disorder, Somalia has maintained healthy economy. The country is very poor, government is weak, but still they are doing very well. The Somalia’s stable and healthy economy is based on live stock, money transfer companies and telecommunications. 

According to a report, GDP in 1994 was 3.3 billion. In 2001, it was around 4.1 billion and in 2009 it was 5.731 billion, with an amazing growth rate of 2.6%. 

Somalia’s economy depends upon agriculture and natural resources, airline industry, telecommunications and media, and energy.

Agriculture and natural resources
Agriculture has the key role in economic sector. 65% of the GDP is due to agriculture, and it employs 65% of the workforce. Somali traders also offer meat and quality animals at a very low and affordable prices.

Airline Industry
Before the civil war, Somalia just had one national airline and that was Somali Airlines. In 1997, only 14 private airline firms were offering flights to international destinations. Well known private airlines include Somali Airline, Jubba Airways, and Dalloo Airlines. These airlines offer flights to international destinations such as Dubai and Jeddah as well.

Telecommunications and Media

When it comes to telecommunications, Somalia now offers low priced telecommunications, advanced and high speed internet services in the world. Customers can now transfer money and easily access wireless internet.

Telenor, ITT, and Sprint now have their roots in telecommunications industry in Somalia. The customers can now enjoy the cheapest and clearest phone calls in Africa.

According to a report, in 2005, Somalia just had 12 radio and television stations and 20 Somali newspapers. Another milestone for telecommunication industry, they now have established partnership with the BBC.

Energy
Electricity is now being provided in large parts of the country. A consumer has a choice to select from different options such as, evenings only, daytime only, 24 hour, or charge per light bulb.

The nation is moving rapidly on the path of reconstruction, with Somalia’s rich and unused natural resources, they will take no time to match its pre civil war levels. 
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