Mr President first of all I would like to congratulate you for the strong, and steadfast economic measures you taken against soaring inflations. We all well aware that Somaliland economy is a closed economy which means in real economic argument that we have no influence in the foreign exchange aspects. The Somaliland economy takes whatever the international global economies dictates to us, and this is 101 economic principles.
Mr President you are re-owned first class economist, and therefore you are well aware that inflation is accepted as real destroyer of every economy. It also diminishes people’s ability to buy goods and services as value of their currency is worthless. As economist, you understand that its also generally accepted participles most world economist are in agreement that inflation has inverse relationship with a given higher level of unemployment in the economy as the Monetarist economist such as Milton Friedman put forward and very much this is the case for all developed nations. This means a higher level of unemployment is generally associated with low level of inflations and vice-versa. Mr President you know too well that inflation suppress economic purchasing power of the nation.
Mr President moving away from economic theory, first and foremost, you have introduced strong measures that I believe will alter the direction of exchange rate in the foreseeable future. It’s true that Somaliland is suffering from not normal inflation but a Hyperinflation which is worse than normal price rises. Mr President, I believe further economic intervention in the economy is deemed necessary, come what may. Mr Siilaanyo, I solute you for empowering the Somaliland Central Banking system to be the lead organisation through means of Monetary and fiscal policies approaches not only empty policies but with substances.
Mr President, in addition to measures already introduced, I suggest one more action points
for implementations, and these are as following;
- All Somaliland Government staff salaries should be the Somaliland Central Bank to curb the corruptions
- All Government contractors, and associated agencies that working in partnership should be paid through the Somaliland Central Bank for transparency and due diligence.
- All higher paid Minsters salaries should be reduced or capped in solidarity with the Somaliland people who are hit by the famine and facing starvation
- You should order Ministry of Finance that 30% of the 2016/2017 country Annual budget earn- marked for the people hit by the famines to alleviate their suffering, after all they are the driving force and important parameter of the Somaliland economy.
- The Government of Somaliland should continue to develop nationwide productive projects with a view to create jobs, and these could be shoes factories, basic commodities processing factories owned by the national Government of Somaliland, and at the sometime put ban on import of such products to incentivise the local production using protectionist mechanism.
Above all Mr President, Somaliland need to boost the local production mode and productivity. We all understand that the country has limited resources, however, in these times the demand side aspect of economy should be promoted, and its utmost paramount in order to have tangible results. Mr President probably you understand that your population is poorly educated one, and amongst others including members of opposition parties, and therefore, they cannot differentiate the national unity which should have been the priory of everyone, and sub-political parties interest. Therefore they will never see eye-to-eye with you whatever measures you recommend, so disregard their noises.
I have seen some claiming to be the country future leaders criticizing the corrective measures you put forward. My point here is; you should not be destructed or derailed by those ill-informed individuals including opposition members whose arguments are characterised with no counter solution, but rather empty words that has no value whatsoever for the nation. Instead of showing strong support for the president economic interventions, they choose to use derogatory terms such as; “Temporary Pain killer” or as they put it (Kaar Jebin). My message to them either say something with intrinsic value or be silent, because criticising Mr Siilaanyo will not make you a better politicians or future leader full stop.
Mr President, you put forward economic policies that will have lasting effect in the Somaliland economy. You also have taken correct steps to empower the Somaliland central banking systems, and hopefully we will witness positive result in the next 6 to 12 months’ time, because economic policies models are lagged one and that means outcome will take for sometimes to be realised. For those claiming to be opposition put up or shout up.
Jama Ali Tooxyare/Saeed Osman
Chartered Certified Accounts and Finance Project Coordinator