Somaliland is suffering from a painful manmade poverty. Today 85% of our population are living under the poverty line. The 15% rich of Somaliland traders are not only responsible for the absolute and relative poverty ( two types of Somaliland poverty), but through exploration, demand creation and price setting, the rich are the architect of our ever high INFLATION. The rich have the foot and finger prints of SOMALILAND INFLATION.
Both in the third world and in the developed world, INFLATION of any economy results from a mishandling and misplacement of one or two of the major economic factors. Some of these INFLATION trigger factors are included; wrong time of increase of money supply, or falsely created demand(demand bull Inflation), or the increase of the total cost of the supply side of the economy (supply push INFLATION).
Somaliland INFLATION is unique and it is the product of the combination of all of these factors. But the most interesting element in this explanation is that this unique INFLATION is typically manmade INFLATION. The rich 15% ( big and Medium traders) have deliberately created this INFLATION. Let me show you how the rich plays the hard economic ball, and turn the heat on our heads.
Firstly they create A FALSE DEMAND across all the markets in Somaliland Economy. Latest Samsung Galaxy, Italian leather jacket, imported First class and world leading household furniture and Kitchen appliances are very popular in our society today. A good example of type of unaffordable goods in our markets which the rich and middle class are buying and the poor are dreaming of.
Not only this, but today the rich class in our society are deciding for us: The kind of clothes we wear, which hostel we hire for our wedding and birthday ? parties. As well as the type of ? car we drive, they decide for us what type of food we consume, the furniture in our beds and in our living rooms and all the shapes and costs of the houses we build. They also decide which kind of mobile we buy and as well as its ringtones. The other things they decide for us are included, the ?school our children goes, the stories our children read, the T.V programmes we watch and wether we lick a vanilla icecream in a hot afternoon. These and thousands more are makers of the false demand which rich engineered and taught for us.
It is a demandy culture that suits their profit maximizing ambition. A culture that is only feeding the ever hungry mouth of the rich. One crystal clear example of this purposely created demand (false demand) is the giant private schools. The greedy shareholders of these privately owned schools neither charge reasonable prices for the teaching services which they are selling to the poor, nor pay the right amount of income tax to the government.
This demand is too strong ? and it is pulling up the AGGREGATE DEMAND of the overall economy of Somaliland, and thus increasing the prices of all goods and services of every Somaliland market. And because the ADAM SMITH’S famous invisible hand thinks that our economy is showing health symptoms the prices are simultaneously increasing. Until we noticed the very High INFLATION ” sick economy”.
It is created demand and it is accounted for 3/5 of total percentage of all causes of Somaliland INFLATION. It has negative economic impact and affects the lives of ordinary Somaliland citizens, mainly causes severe poverty.
The second ingredient of this unique type of INFLATION in our economy is the higher prices resulted from the very high cost of the supply-side of our economy.
A mixture of 2 major costs in the supply-side of the economy enormously contributes to the present INFLATION in our land. One of these two costs is the two different money ? supplies which we import From USA. a) money supply USA$ which our rich use to buy goods and services which they import from abroad. b) the money supply USA$ which the rich import for us , to use as national currency. In Somaliland today, the USA$ is our National currency, accept it or not. It is our medium of exchange, unit of measure and store of value. And we have to import this money supply from USA money market. Which means the rich has to ILLEGALLY import billions of USA$ and pump it in Our economy system. Well the cost this imported dollar ? + the rich profit+the factory cost of the goods and services which imported by these greedy rich are all being footed by the working class and the poor and the distribute in our society. They are paying this cost in the form higher prices…INFLATION…..INFLATION…..INFLATION…….by I. Suufi
What is more all of these costs in the supply-side of our economy are secret and hidden knowledge of the rich. Because of this absent import knowledge the government eyes can neither detect the original costs of these imported money , goods and services nor the government trade rules can regulate the the prices of these when the rich are selling all these imports in our streets. These selfish rich charge us any price they fancy.
The third contributory factor to the Somaliland unique type, of INFLATION is the absence of investment factor. Kkk it is the rich again. The rich collect the last dollar and nicks all the odds and ends of the poor, and save every profit+original capitals in abroad…kkk maybe Dubai. THE DIFFERENT TYPES OF MONEY THAT RICH CLASS COLLECT FROM THE COUNTRY AND SAVE IN DUBIA AND DJIBOUTI ARE INCLUDED: the USA$ which Somaliland Citizens receive from their families and relatives in Europe and North America and which the rich collect in the form higher prices on the goods and services imported from abroad. They also claim every penny of countries’ export money +all the government tax which they get away with.
In conclusion. Wether it is this created demand, or the hidden costs of the supply-side of our economy or the absence of the investment factor, or simply the evaded government tax; our economy is sick. And it is sickened by the rich class of our society. Our economy is not only sick because it is experiencing a very high INFLATION, but it is showing many other types of symptoms, which is early signs of another illnesses, which could not be cured in the long run.
Therefore it is the interest of all Somaliland citizens. Specially the interest of the working class, poor, and destitute who are now suffering from burdens of the this imported economic sickness that government on duty takes the right and appropriate steps and actions before it is too late.
Sida seer mawaydada
Ayaa laysid tiriyaaye
Anoon kicinin Sayruukhe
Sabool baa ducdee
Luuqda waan igadh salaaxaaye…Gaariye
The research and pen of:
Prof: Ismail H. Duale..suufi
Ambassador for Tima’ade University
Active member of Kulmiye party, and Supporter of Muuse Biixi