The Central government is responsible for investing in regions with weaker fiscal growth, and to avert economic inequality of the regions of Somaliland

It is my objective in this article to highlight some of the daunting issues that are plaguing our young democracy. The issue of distribution of central revenues and expenditures is a key element that I like to discuss here. It is common in democratic countries to make a comparison of revenues collected from each province with the total amount of money spent in each. Such analysis examines whether a province is a ‘donor’ or a ‘recipient' within its own country. If a province is giving more revenue than it is getting back from the central government, it is said to be the contributor. But, if the province is contributing less revenue to the central government than it is getting back, then, it is said to be a beneficiary. Typically, central or federal governments collect more revenues from richer provinces because they have stronger economies generating higher tax revenues, and they spend more in others, because they are poorer, with weaker economic activity and lower tax revenues.

This might seem unfair, but it is vital maintaining equilibrium of the provinces and to preserve the unity of the country as a whole. It is important to understand that while a provincial authority represents solely the people of its jurisdiction, a federal or central government is responsible for the welfare of the whole country. Therefore, one of the responsibilities of a central government is to inject money into the regions with a weaker economy to improve fiscal growth and to raise or maintain the living standards of the people in that region.

The idea, here, is to invest funds and introduce measures that will prop up local economy of a region. When the economy gets going, it will create opportunities for both the people and their local governments. Yet, strange enough, the central government that injected those subsidies into the regions will not go empty handed. It will be able to collect tax revenues from the harvest of its own financial assistance. In German, this process is called ‘Wirtschaftskreislauf", which compares this procedure with that of the human ‘blood circulation’. The heart sends the blood filled with nutrients and oxygen to provide life to all parts of the body – including ‘itself’. The HEART receives dividends of its own action to stay alive. That is why governments, banks, and individuals, we all, love to secure a good investment. Then, money generates more money and returns a profit to all – especially, to initial ‘investor'.

 Unfortunately, that is not the case in Somaliland. The gap between the have and have-not provinces is widening by the day. While I yield to the fact that the Central Government of Somaliland does not enjoy international recognition, and lacks the ability to invest in the regions with a lower economy, I do not believe that it distributes fairly the little it has. The little resources the government has to offer are depleted in the vicinity of the capital city. The Minister of Interior's recent visit to Eastern Regions of Somaliland revealed the level of discontent and frustration among the people of those regions. People are dissatisfied with the current political and financial status of the country. There are a growing number of elites and intellectuals expressing a desire for economic reform. The core of their demand is the need for redistribution and decentralization of Government Ministries and agencies. 

It is obvious to many that Hargeisa remains to be the residence of almost all Government employees. All ministries and government agencies reside entirely in the city. As a result, the majority of government paid-employees live exclusively in and around Hargeisa, thus contributing to the wealth of one region alone, while other regions of the country are struggling with higher unemployment and lack of tax revenues to maintain basic services. As also stressed by many elders and regional leaders, there are other, more severe and dreadful, tactics exercised by some corrupt Somaliland officials in Hargeisa, who are determined to prevent NGOs and other entities to relocate or venture into the other parts of the country. They employ scare tactics by spreading an unsupported and unconfirmed rumor of insecurity in other provinces of the country. Their objective is to deter and discourage any NGO that seeks to find a settlement in other parts of the country, thus depriving development of other regions.

I believe these deceitful and vindictive distortions of facts and distribution of such misleading information are offensive and condescending, to say the least. The claim that Hargeisa is the only sanctuary of peace and tranquility in Somaliland could be nothing but further from the truth. Considering the number of crimes reported each and every day – not to mention the divisiveness and the constant disputes over land, the social and political wrangling that often spirals out of hand resulting death as well as damages to life and limb. Such claims will also damage the reputation of Somaliland as ‘Africa's best-kept secret' and will hamper recognition. I urge those resorting to such tactic to refrain from it and stop vilifying other regions of the country for short-term gains which do not reflect the spirit of free market economy and undermines equal access to development and prosperity of all regions of Somaliland.

Somaliland is already being attacked and besieged from all sides. The disappointed and discouraged citizens are being lured by evil-ridden traitors who are working tirelessly with our enemies and seeking to destroy and dismantle our country. The methods they employ are getting ominously wicked by the day. One of their latest weapons is to allure the unwary and dissatisfied citizens to divide the country into small ‘states’ as (Awdal State, Khatumo State etc.). So, if we don’t address the issue of economic disparity in the country, many might be tempted to look elsewhere for a solution. Though, I do not think such extreme measures – of dividing Somaliland into small states – will alleviate the poverty and the hard economic situation in those regions. Yet, one has to recognize the danger of such imbalanced policies, if not rectified, might lead to fragmentation of Somaliland.

  I believe a proportionate transfer of government paid employees, as well as the relocation of some of the NGOs into the other parts of the country, will help quell the surge of unemployment and economic downfall of many regions and will bring in the needed resources and tax revenues into many local communities. Therefore, I would like to urge those in power, particularly the present Kulmiye administration, to undertake the necessary steps to circumvent a public outcry, and the disintegration of the country. It is in their interest – as the party in office – to recognize the necessity for a comprehensive dialog between the central government and the provincial or regional authorities.

Mohamed-Bashe, Elmigeydh,

Ottawa, Canada