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Surcharge on Remittances

by Adan H Iman
Tuesday, July 27, 2010


The newly elected president of Somaliland, Ahmed Mohamed Mohamoud Silanyo, inherits a state which is unrecognized by the rest of world. In political terms, the country is isolated: it has hardly any diplomatic representatives in its capital, and with few exceptions, Somaliland emissaries are not stationed in foreign capitals. As a consequence, the country lacks any access to the international financial system and qualifies little, if any, bilateral and multilateral financial assistance whether it is credit or direct aid. Additionally, international corporations can not invest because of the high risk to stockholders capital in a country where there are no diplomatic ties with mother countries. 

 

International isolation is coupled with the dire condition of the local economy. There are no manufactured goods or other products, except for livestock, which are exported to the outside world. Local food production has dwindled over the years and most products for basic necessities are imported. The rutted and debilitating roadways in Hargeisa, the capital city, which are worse than it were in the 1960s, is emblematic of the general wellbeing of the country.

 

In general the economy is fueled by remittance from the Diaspora. Revenues, which total only in the tens of millions, are collected, due to pervasive corruption, from those who do not have political connections such as small traders ( caanalayda iyo bacadlayaasha). Those who have political connection are known to evade paying their share of taxes.

 

President Ahmed Mohamed Mohamoud Silanyo inherits this dire economic and political situation. How can he then take the people to the Promised Land, as he pledged during the last months of the campaign? How can he lead the country towards economic growth and international recognition?

 

The search for international legitimacy will be facilitated by the fact he embodies the will of the people by being legitimately elected by the people. He is not an incumbent who somehow got reelected by manipulating a re-election effort as is common in third world countries; he is an opposition candidate, who, without question, in a free and fair election, defeated an incumbent, a very rare occurrence in third world countries. This fact will be helpful to him when he meets foreign leaders. He will therefore make more mileage into the search for recognition and will most likely be able to secure more financial assistance.

 

But he should NOT only look to the outside world for help; he must look into the domestic front to raise some capital to fix, among other areas, the roadways in the country and first and foremost that of the capital. As they say God helps those who help themselves. In the same vein, the rich countries will help only those who help themselves and take concrete steps towards that goal.

 

Remittance sent to the country by the Diaspora should not be immune to taxation. If the small traders who etch a living by hustling, under the scorching sun, all day long, are paying their share of taxes, why should not those who receive hundreds of dollars each month? I do not speak for the Diaspora, but given how patriotic they are and love to see  their country develop, they would not mind to add few dollars each month  to the bill they send each month only and only if that surcharge is used transparently, and dedicated  towards the development of the country.

 

There is difference between when a candidate is campaigning for office and when a candidate wins and is faced with the awesome responsibility of governing a nation. President Ahmed Mohamed Mohamoud made it clear he means business and is determined to move the country forward. He deserves the full and continued support of the people in Somaliland. May his tenure in office lead towards the fulfillment of the aspirations of the people, which is economic progress and international recognition.

 

Adan H Iman, Los Angeles

e-mail: [email protected]



 





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