Somalia’s Aid Dynamics: Recognizing True Value

Friday, March 7, 2025

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By Mohamed Rashid

At the Zanzalima Camp for Internally Displaced People, volunteers toil diligently as they unload hefty 50-kilogram sacks of wheat flour, a part of an aid delivery from USAID dated December 17, 2021. This sight, while reassuring, also serves as a quiet testament to a nation grappling with its heavy reliance on foreign aid.

Somalia, for decades, has found itself dependent on international assistance, primarily sourced from entities like USAID and myriad donor institutions. Although this aid has been undeniably pivotal in terms of humanitarian relief, infrastructure development, and rebuilding institutions, it quietly nurtures a dangerous dependency syndrome. This dependency not only hampers Somalia’s economic growth and political self-reliance but also subtly dilutes its sovereignty. Set against a backdrop of foreign aid are conditions and restrictions that make it challenging for Somalia to chart its own course in policy-making and development planning. How liberating would it be for Somalia to step away from the shadows of dependency?

History offers curious insights, doesn’t it? Consider the shifts in U.S. policy during President Trump’s tenure, specifically the freeze on USAID funding. Suddenly, there was a wave of apprehension and uncertainty regarding future financial support from other international benefactors. This pivotal moment underscored an urgent need for a paradigm shift—a transition from donor dependency to a foundation of self-sufficiency. But what fuels sustainable progress if not the unyielding strength of a nation’s economy, governance, and workforce? Look towards Rwanda and Botswana, beacons of hope and lessons in self-determination. These nations have demonstrated that sustainable advancement is attainable with strategic investment in domestic resources and the cultivation of a robust investment environment. Could Somalia not adopt a similar framework, setting its sights on a future crafted by its own hands?

The dependency on foreign aid casts a long shadow across Somalia’s economic and political landscapes. Although humanitarian efforts have safeguarded countless lives, they have also ingrained a dependency culture that stunts long-term economic potential. Many public institutions and local enterprises operate under the lifeline of donor funding, sidelining indigenous revenue-creating initiatives. Instead of strengthening a tax system or nurturing entrepreneurship, Somalia remains bound to external links—a dynamic that subtly chips away at its sovereignty while rendering it susceptible to the whims of donor priorities.

This model focused on aid reliance has severely weakened Somalia’s leverage on the global front. Consider how often the country’s policies are molded to align with the priorities of international donors, usually skewed toward immediate relief rather than foundational development. The result is a fragile national structure struggling to stand upright without continuous foreign intervention.

In order to unlock its full potential, Somalia needs to sever the cycle of dependency and assertively march toward economic independence. This journey involves harnessing its natural and human resources, quelling internal discord to attract investment, tackling systemic corruption, and reintegrating displaced populations to foster social stability. But is Somalia ready to embrace this challenge?

Let us pause and contemplate: how does one build a prosperous future? Perhaps the answer lies in a collective commitment to governance reforms, diverse economic strategies, and sustainable developments. By forging this path, Somalia could transform itself from an aid-reliant nation into an economically resilient entity poised to self-determine its future. But this begs the question: Is Somalia prepared for the responsibilities that come with independence?

Tapping into Somalia’s Own Resources

Challenging misconceptions, Somalia is far from being a resource-poor nation. With Africa’s longest coastline, a dynamic livestock industry, and untapped natural resources—such as oil, gas, and minerals—Somalia possesses the very ingredients needed to cultivate a self-sufficient economy. Yet, factors such as political instability and historical mismanagement have hindered the effective usage of these resources. The question, therefore, is: How does Somalia effectively unlock this latent potential?

The 3,300-kilometer coastline, with its rich maritime bounty, offers immense opportunities. Investments in fisheries, cold storage solutions, and export processing facilities could metamorphose Somalia into a leading seafood exporter. Countries like Iceland have shown great success in sustainable seafood exports; why not Somalia? Similarly, the livestock sector, contributing an impressive 60% to GDP, demands attention through reinforced veterinary healthcare and improved trade logistics, especially with the Gulf regions.

Consider also the largely unexplored oil and gas reserves—a treasure trove of economic potential. By laying down a transparent legal framework and engaging in ethical negotiations with international energy companies, Somalia could responsibly develop this sector. Such endeavors could finance critical infrastructure, education, and essential public services, diminishing dependency on foreign aid.

Agriculture remains another realm ripe with opportunity. The fertile plains around the Jubba and Shabelle river basins can host large-scale farming initiatives. Investing in advanced irrigation and drought-resistant crop development can bolster food security and taper off reliance on imports. Ethiopia’s success in agricultural infrastructure serves as an inspiring example; can Somalia replicate or even surpass such achievements?

Energy development deserves a spotlight. Somalia’s renewable energy capacity, especially in solar and wind sectors, offers a pathway to diminish costly diesel imports while enticing manufacturing investments.

Reducing Internal Conflicts for Stability

Internal strife, often rooted in clan hostilities and political power struggles, has historically beleaguered Somalia, reinforcing its dependence on foreign assistance. Such conflicts fracture governance, displace communities, and stymie both local and foreign investment—a recipe for prolonged economic stagnation. Isn’t stability the bedrock of any successful economy?

Tackling terrorism is crucial for national stabilization. Militant groups feed on political fractures, exacerbating instability. Thus, a comprehensive strategy addressing radicalization’s root causes, including poverty and educational gaps, becomes essential. Could community-driven projects and employment initiatives detract the youth from extremist ideologies?

Justice system reforms are integral to mitigating internal conflict. A transparent legal framework that promotes accountability can rebuild public trust and deter violence. Addressing the plight of the displaced is equally vital; resettling these populations mitigates social tension and enhances communal reintegration, thus reducing vulnerabilities exploited by extremist factions.

Enforcing Anti-Corruption Measures

Combating corruption requires the establishment of powerful anti-corruption agencies empowered to investigate and prosecute malpractice. These bodies must operate with independence to assure impartiality. Protecting whistleblowers and launching public awareness initiatives can galvanize the reporting of corrupt activities.

An independent anti-corruption commission operating across governmental tiers, fortified by financial audits and international collaboration, is crucial in undermining entrenched corrupt practices. Establishing a culture of meritocracy within government appointments counteracts nepotism, promoting qualified leadership appointments.

Ensuring Transparency in Governance

Transparency stands as a cornerstone in the anti-corruption crusade. Somalia should adopt e-governance frameworks to simplify administrative processes and curtail corrupt activities. Consistent audits and openness in government expenditures will kindle accountability.

Lessons abound. Consider Singapore and Georgia, both shining examples of corruption management through stringent legal structures and digital governance systems. Singapore’s Corrupt Practices Investigation Bureau and Georgia’s decisive stance post-Rose Revolution underscore how rigorous measures can rebuild public confidence and stimulate economic growth. Could these such frameworks be adapted for Somalia’s unique context?

In conclusion, as we reflect on the complex dynamic of aid and independence, one cannot help but ponder: Is Somalia ready to not only survive but thrive in a new era of self-reliance and economic prosperity?

Edited By Ali Musa, Axadle Times International–Monitoring.

Writer: Mohamed Rashid is a political and social commentator.

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