When it comes to develop your country, one asks what are the basic economic resources or basic factors which generate economic growth, and then once you find the basic needs that generate economic growth, and then you come to point and prepare those steps and make a plan to achieve where you want to be. Developing a country and making a country economically successful is not an easy task, but needs its capacity, capital investment and resources which makes it possible.
Is it possible to make this young Somaliland nation a bit more developed or economically successful without recognition? Or are there any economic plans that had been implemented and put in place already?
Of course anything is possible as long as people have ambition, courage and future economic plans a head, but what needs to be done and how can we make it happen.
Let us have a look about the basic things that makes a country a developed or economically successful.
The following are some of the factors which make a country developed:
Natural resources, agriculture, industrialization, exportation, good educational system, good infrastructure and good business activity, so these are some of the important areas that need future plans to encourage the small businesses to make shares and form small- scale industries.
There are many more things which make a country developed, but as young tiny nation which is not yet recognised, what needs to be done and make it possible to develop this nation of Somaliland?
Let us have a look and understand each of the above mentioned factors which generate economic growth to a country.
1. Natural resources utilization: Somaliland has large offshore, onshore oil and natural gas resources which are not yet been utilised, because of lack of recognition and massive setbacks that were caused by the blind unification to neighbouring country Somalia which kept them back.
Natural resources is one of the things that make a country a well developed and makes its economy so strong, though there are some countries whose natural resources are limited, but made huge economic growth.
The good example is Japan, this country has very limited natural resources, and it is one of the richest
Countries in Asia, therefore this shows that countries can still make economic growth if it develops the other areas which generate economic growth.
Though we cannot compare this young unrecognised country to these developed countries, but we are still one of the black African countries which are so poor. Black Africa itself is the poorest and most disordered part of the world.
It is for sure that this young nation will once again will join the international community, so it must make its own future economic plans so as to encourage these above mentioned areas.
2. Agriculture: the role of agriculture in economic development is a very important area which encourages the country’s industrial development. Agriculture itself as the most world economist agreed is the most backbone of the economy. It has a great importance to any country’s economic development as it makes possible to facilitate the production of the industries.
It can also help any country to lift people out of poverty and hunger and this is why every country encourages agriculture and invests the local farmers.
The good example is Somaliland beverage industries (SBI) this is a production company and need crops, fruits another raw materials to be purchased from outside the country, but if there is domestic agriculture, then it will help this young successful company and other similar companies.
3. Industrialization: Industries play a great vital role in the economy of any country and it increases the national income as well as it increases employment opportunities.
The advantages of industrialization are so many and some of the advantages are as following:
It increases employment opportunity
Affordable prices
Development of skills
Utilization of resources
Earning more foreign currency
How can each of these above advantages of industrialization help the economic growth of any country?
Of course industries create employment opportunities and provide employment to people as they require having skilled people, semi skilled and unskilled manpower, so people having different abilities are employed by the industries apart from that, it increases per capita income and output.
IF one claims that Somaliland is not in a position to do these great steps yet, then this is the right time to bring the country small- scale industries and this is where the industrialization starts like the very few small factories which are in the country at moment.
If even small- scale industries are brought in the country, then it will reduce the unemployment at same time will increase the national income and will open a door to those young Somaliland graduates who are unemployed at moment.
Affordable prices: IF goods are produced in the country, then it will be cheaper than goods from foreign countries.
Development of skills: an industry provides skills to individuals as well as speciality. If one is employed by a factory, then that person will be given training and the skill to do that particular production.
Earning foreign currency: If goods are produced in the country and are good quality products, then it can be exported outside which will help in earning higher foreign currency.
Utilization of natural resources: industries utilize the natural resources of the country.
All these are the advantages of industries or small-scale industries.
A good educational system can also play a great vital role to economic growth: Investing in young children and youth will be another smart economics.
If Somaliland produces a very skilled, healthy and well educated people, then it will help the country to have a political stability, social wellbeing and will increase the economic growth.
Good effective investment in young generation in Somaliland will bring important returns not only to the individual and the community, but to the nation as a whole.
Investing in young people is just like a public investment that generates returns to society through a very higher economic growth.
All these are some of the main things which generate economic growth, so Somaliland has to make economic plans to develop the key areas that need to be developed and encouraged.
Both Somaliland government and its people need to come up with development plans towards improving the country’s economy and infrastructure.
One should know and bear in mind that it is not only the government’s role to make our young nation a developed, but we need the role of the business people as well as the role of the knowledgeable people.
Together we are strong, divided we are weak. Let us move our young nation forward.
Omer Mohamed jama.
Bristol UK