From Bad Policy to Chaos in Somalia: How an Economy Fell Apart

This examination of the economic policies of Somalia since 1970 is empirical in nature, employing political and economic analysis, economic theory, and econometric techniques, and argues that the governmental economic policy, policy responses to crises, and exogenous shocks have been bad for the long-term economic growth of the country. Despite significant foreign financed public investment, economic growth has been weak and real per capita income has declined. The intensifying economic crises contributed to the rapid deterioration of the political situation that led to the collapse of the Somali state in 1991. Since 1991, chaos and more destruction has followed as warlords scrambled for power, resulting in the resource base of the economy being eroded further and the country being reduced to warring clans.

Table of Contents:
Tables and Figures Preface Abbreviations Introduction Economics and Politics in Somalia: A Background Improper Policy Responses to Exogenous Shocks The Socialist Development Strategy to the 1970s: The Principal Origin of the Crises Macroeconomic Consequences of Unsustainable Public Sector Deficits Ambitious Public Investment and Illusive Economic Growth Objective Private Savings and Investment in an Inhospitable Environment The Depressing Effects of Economic Policies on Trade Resilience Amid Chaos: The Somali Economy After the State Collapsed How the Economy Fell Apart and What We Have Learned Selected Bibliography Index

About the Author :
JAMIL ABDALLA MUBARAK is a citizen of Somalia who holds an advanced degree from Johns Hopkins University. Dr. Mubarak has lectured at the Somali National University and has served as a consultant to the World Bank.

Review :
"This book is far more comprehensive than the few other published works on Somalia's economy....[T]he author makes excellent use of extremely skimpy statistical data. He also draws many important lessons from the experience of two and a half decades of grossly mismanaged economic development. Jamil Abdalla Mubarak's book is an important contribution to Somalia's recent economic literature and it also provides some guidelines for future governments to help them to avoid the past errors of policy and avert disastrous crises."-The International Journal of African Historical Studies ?Few books are in print (in the US) about the Somalia economy. Thus, Mubarak's work will help fill the void.... The author uses both political economy and economic analysis to explain the Somalian experience, placing the blame for the poor performance of the Somalian economy on the policies followed by the government.?-Choice ?This book is far more comprehensive than the few other published works on Somalia's economy....[T]he author makes excellent use of extremely skimpy statistical data. He also draws many important lessons from the experience of two and a half decades of grossly mismanaged economic development. Jamil Abdalla Mubarak's book is an important contribution to Somalia's recent economic literature and it also provides some guidelines for future governments to help them to avoid the past errors of policy and avert disastrous crises.?-The International Journal of African Historical Studies "Few books are in print (in the US) about the Somalia economy. Thus, Mubarak's work will help fill the void.... The author uses both political economy and economic analysis to explain the Somalian experience, placing the blame for the poor performance of the Somalian economy on the policies followed by the government."-Choice