Economy Without State

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Amaury Talbot Prize Winner Shows that Somalia is an extreme case of an economy without a government. Amaury Talbot Prize Winner Shows that Somalia is an extreme case of an economy without a government. Does statelessness necessarily mean anarchy and disorder? Clan elders, religious leaders and businessmen have worked together to provide stability and security in large parts of Somalia. Urban centres continue to suffer violence, political chaos and economic disruption. Do money, international trade and investment survive without a state? Somalia has been without a state, a Ministry of Finance, or a central bank, but the Somali Shilling wasmore stable during the second half of the 1990s than during the 1980s. Economic agreements with transnational firms and sovereign states go ahead. Do town-dwellers fare as well as pastoralists? With the collapse of the state, herders and traders have benefited from reduced restrictions on movement and there is a booming unofficial export and import trade. Settled populations have fared less well. Do pastoralists care about development and socialimprovement? Throughout the Horn western-funded development projects have had disastrous results. Nevertheless the Somalis have selectively accepted certain elements; phone and internet services are surprisingly cheap. Published in association with the International African Institute North America: Indiana U Press

Bol Partner

In the wake of the collapse of the Somali government in 1991, a "second" or "informal" economy based on trans-border trade and smuggling is thriving. While focusing primarily on pastoral and agricultural markets, Peter D. Little demonstrates that the Somalis are resilient and opportunistic and that they use their limited resources effectively. While it is true that many Somalis live in the shadow of brutal warlords and lack access to basic health care and education, Little focuses on those who have managed to carve out a productive means of making ends meet under difficult conditions and emphasizes the role of civic culture even when government no longer exists. Exploring questions such as, Does statelessness necessarily mean anarchy and disorder? Do money, international trade, and investment survive without a state? Do pastoralists care about development and social improvement? This book describes the complexity of the Somali situation in the light of international terrorism.