Somaliland, a development without many dollars

Many bundle of US 100 dollars bank notes

Faced with donors’ reluctance to commit Funds, the Somaliland government is seeking new ways to strengthen the economy as it approaches the deadline for its 2012-2016 National Development Plan (NDP).

Chief among concerns is the fact that, according to the world Bank, Somaliland has the fourth-lowest gross domestic product per capita in the world.

Somaliland is locked out of the international system because it is not recognised as a sovereign state, and its economy relies heavily on the diaspora, which provides about $400m in remittances per year.Of the $1.2bn required to fund the NDP, Somaliland planned for $980m to come from external sources.

Donors have not provided anywhere near that sum.

Nonetheless, the NDP focuses on five pillars: the economy; infrastructure; governance; social spending; and the environment.

The government planned to set aside about $175m of the budget for the economy pillar, and the NDP offers a roadmap for Somaliland to diversify beyond agriculture.

The NDP tries to encourage growth in manufacturing, commerce, tourism and mining.

At $487m, by far the most money is devoted to the infrastructure pillar. ●


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