Country Brief

SOMALIA
December 17, 2009

EXECUTIVE SUMMARY
Somalia is the epitome of a failed state. There is no functioning government, economy, banking system,
legal system or central bank. There is also no railway system, the mainline telephone system hardly
operates and much of the infrastructure is in disrepair. Most countries have long ago abandoned their
embassies in Mogadishu because of the chaos that has engulfed the city. The health and educational
systems are in dire conditions, there are 1.55 million internally displaced persons and much of the
population relies upon food assistance from the World Food Program for their survival. The Fund for
Peace ranks Somalia first of the 177 nations that it surveyed, thus indicating that it is the most
dysfunctional, chaotic and anarchical nation in the world.
Geography
Somalia is a country situated in Eastern Africa with a
tropical climate (the rainy season is from April to
June) that is slightly smaller than Texas and shares
borders with Djibouti, Ethiopia, Kenya, the Gulf of
Aden and the Indian Ocean. The province of
Somaliland, located in the Horn of Africa bordering
Ethiopia, declared its independence on May 18,
1991. It is not however recognized as an
independent state by any country or international
organization. Puntland is a region in northeastern
Somalia that declared itself an autonomous state in
1998. It accounts for one-third of the land area of the
country. Unlike Somaliland, it does not aspire to full
independence. The population, including Puntland
and Somaliland, is 10,112,453 (US Census Bureau
estimate for 2010) and the population density is 16.1
people per square km. Mogadishu is the capital, the
largest city and commercial center. According to UN
estimates, the population in 2007 was 1.1 mn.
Presently however the population is significantly
lower as fighting in the capital in recent years has
prompted hundreds of thousands of people to flee.
The major port is located in Berbera, which is located in Somaliland. In Somalia proper, the major port is
at Mogadishu.

Arable land accounts for 1.64% of the area of the country, 37.4% of the population lives in urban areas
(UN estimate for 2010), there is 2,000 sq km of irrigated land, 11.4% of the country is covered by forests,
0.04% of the land area is devoted to permanent crops and there are 3,025 km of coastlines. Much of the
country is desert and desert scrubland. The median age is 17.6 years, the birth rate is 43.7 per 1,000
people, the death rate is 15.55 per 1,000 people, the fertility rate is 6.52 children per female, 45.0% of the
population is under 15 years old, 23.8% is between 25 and 44 and 2.5% are 65 years and older. The
population growth rate is 2.74% (UNDP estimate for 2010-2015). The time zone is 3 hours ahead of
Greenwich meantime. Somali is the official language. Somalia was formed on July 1, 1960 when British
Somaliland, which became independent on June 26, 1960, merged with Italian Somaliland, whose
independence was also declared on July 1, 1960.

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SECTION SUMMARY AND TREND

Political Environment - Government & Civil Liberties Trend

The government only holds sway in parts of the capital and Baidoa. It has virtually
no authority in the country and has no means to impose order on the violence,
chaos and anarchy that has engulfed the country and made Somalia a failed state.
Somalia is a very dangerous place for journalists in light of the chaotic conditions in Negative
the country. Journalists have been arrested, assassinated, abducted and forced to
flee while covering the violence that has engulfed the country. There is no
functioning judiciary.
Economic Overview Trend
Infrastructure
In the light of the lack of a functioning government and the unending turmoil that
has engulfed Somalia, there has been no investment to upgrade, modernize and Negative
repair the infrastructure. As a result, most the infrastructure is dilapidated and
incapable of servicing the needs of the people.
Energy Sector
There are no indigenous sources of oil, natural gas, coal or hydropower. The Negative
electrical grid is decrepit and in need of modernization and repairs. Power
shortages and outages are frequent. The electrification rate is 7.7%.
External Accounts
There are no reliable up to date data on the external accounts. The major exports
are livestock, hides and bananas. The major imports are petroleum products and Negative
foodstuffs. Remittances from the diaspora Somali community are an important
source of income that helps to underpin economic activity. There are no foreign
exchange reserves.
External Debt
Negative
Somalia is in arrears to the IMF.
Agriculture Sector
Like the rest of the economy, the agriculture sector has experienced a sharp
deterioration since the country has been consumed by civil conflict. This has made Negative
it impossible for Somalia to feed itself. Only about 25% of the cereal requirement
is produced domestically. The rest is provided by international assistance,
principally by the WFP.
Informal Economy
The formal economy hardly exists. Most businesses operate informally and are
financed by remittances, warlords or money lenders. Smuggling is a common Negative
means of obtaining needed goods. Piracy along Somalia's coastline has become a
very lucrative business with pirates collecting an estimated $150 mn in ransom in
2008 when there were about 100 pirate attacks.

Business Environment Trend

Openness to Foreign Investment

Somalia’s chaos and violence has clearly deterred foreign investors. Much of the Negative
recent foreign investment has been in the breakaway provinces of Puntland and
Somaliland where there is relative political stability.
Financial Sector
There is no functioning financial system. Negative

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 Corruption
Somalia has not ratified the UN Convention Against Corruption. It is ranked 180 of
180 nations in Transparency International’s 2009 corruption perception index.
According to the US Department of State’s Human Rights Report, “Official Negative
corruption is endemic throughout the country. The law does not provide criminal
penalties for official corruption and officials frequently engage in corrupt practices
with impunity.”

Human Capital Trend

Poverty is widespread, much of the population relies upon food assistance from the
World Food Program for their survival, the education and health care systems are
Negative
inadequate, the life expectancy is just 50.0 years, the infant mortality rate is 116.5
per 1,000 live births and the adult literacy rate is around 25%.

Economic Outlook Trend

There is little room for optimism with respect to the economic outlook for Somalia.
Unfortunately, the economic and social conditions are likely to deteriorate further
Negative
as there is no prospect of restoring a semblance of normality and political stability
to a country that is being ravaged by chaos, anarchy and violence.

I. Political Environment

Index Rank Score

Political Rights: 7.0/7.0
Freedom House Index 2009 Status: Not free
Civil Rights: 7.0/7.0
Bertelsmann Transformation Index 2010 128/128 1.34/10.00
Fund for Peace - Failed State Index 2009 1/177 114.7/120.0
World Bank Gov Indicator 2009, Political Stability 0.00 -3.28

1. Turmoil, Chaos and Anarchy have Engulfed Somalia

Somalia has been consumed by political turmoil since its inception as an independent state when inter-
tribal rivalries broke out. In 1969, a military government assumed office in a coup that was led by General
Siad Barre. Somalia was declared a one-party Socialist state in 1976 under the rule of the Somali
Revolutionary Socialist Party, with Barre as the President. A war in 1977 and 1978 with Ethiopia was
fought over the Somali populated Ogaden region of Ethiopia with the objective of “liberating” the Ogaden
and uniting it with Somalia. When it appeared that Somalia was on the verge of defeating Ethiopia, Cuba
and the Soviet Union came to Ethiopia’s assistance, thus precipitating a disastrous rout of the Somali
armed forces. Siad’s reign became increasingly repressive and authoritarian after the end of the war, thus
fueling regional and ethnic resistance that culminated in his overthrow in 1991. His removal from power
however did not bring stability to the country. Instead, it plunged into civil war as various factions and
warlords fought to dominant the country.

2. Government

The Somali National Reconciliation Conference (SNRC), which began in Kenya in October 2002,
concluded in 2004 with the creation of the Transitional Federal Government (TFG). Abdullahi Yusuf
Ahmed was elected President of the TFG on October 10, 2004 and an interim government, known as the
Somalia Transitional Federal Institution (TFI), was formed. In addition to President Ahmed, who had the
authority to appoint a Prime Minister, the government consisted of a 275-member parliament, the
Transitional Federal Assembly (TFA), and a 90-member cabinet. Members of the parliament were not

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directly elected. Instead, they were appointed by the heads and representatives of the major “clan”
groupings. Factional disputes have made it difficult for the Parliament to convene on a regular basis.

In June 2006, a coalition of clerics, business leaders, and Islamic groups operating under the umbrella
grouping of the Council of Islamic Courts (CIC) seized control of Mogadishu from several warlords. The
TFI and the CIC then began a struggle for dominance of the country, with the CIC gaining the upper
hand. The prospects of Somalia potentially becoming an Islamic state prompted Ethiopia to invade in
December 2006 with the covert support of the United States. Ethiopian forces captured Mogadishu from
the ICC, thus enabling the TFG to move the government to the capital. The intervention of Ethiopian
armed forces however did not subdue the country. Instead, it remained in the grip of chaos. Armed
insurgents continued to battle the TFG and Ethiopian forces while warlords held sway in many parts of
the country. In light of the heavy financial cost of the invasion and increased casualties it sustained in
trying to quell the violence, Ethiopia agreed to withdraw from Somalia in October 2008 after a UN-backed
peace deal was agreed to between the transitional government and one of the main opposition factions.
On January 26, 2009, Ethiopia announced that it had completed its withdrawal from the country. The
withdrawal of the Ethiopian forces was followed by even more violence and chaos with insurgents
attacking African Union (AU) peacekeepers, who were sent to Somalia to fill the security vacuum left by
the withdrawal of Ethiopian troops. The Islamist-led opposition has vowed to continue fighting government
forces and AU peacekeepers.

The major jihadist Islamist group seeking to seize power is the Shabab. According to a December 10
article in the Economist, “The Shabab, which means youth, hunts down its critics, sometimes beheading
them…The Shabab controls most of the south and central Somalia…The Shabab covers its expenses
from taxes, tariffs and roadblocks. It includes some opportunists but at its core are ferocious fighters
linked to al-Qaeda who are intent on creating a caliphate of Greater Somalia, including chunks of Ethiopia
and Kenya. The Shabab appears to run at least two suicide-bomb brigades, mostly made up of teenage
boys.” The Shabab have imposed a harsh form of Islamic roles in the two-thirds of the country they
control.

In 2004, the Transitional Federal Charter (TFC) outlined a five-year transition program that would
conclude with the writing of a new constitution and elections in 2009. A new constitution though was
never written and the elections were moved up to January 2009 after the resignation of President
Abdullah Yusuf Ahmed on December 29, 2008 because of the dismissal of the government of Prime
Minister Nur Hassan Hussein by the TFA. There was no nationwide balloting because of the chaos
prevailing in the country. Instead the members of an expanded TFA voted at the end of January for the
President. The voting took place in Djibouti. It took 3 rounds to elect President Sheikh Sharif Sheikh
Ahmed who assumed office on January 31, 2009. He is a former secondary school teacher. The head of
government is Prime Minister Omar Abdirashid Ali Sharmarke. He has been in office since February 13,
2009. The cabinet is appointed by the president and approved by the TFP.

The government has virtually no authority in the country and has no means to impose order on the
violence, chaos and anarchy that has engulfed the country and made Somalia a failed state. The
Bertelsmann country assessment report for Somalia, said the “TFG has failed to present itself as a
government of national unity and demonstrate any effective power to govern. It is little more than a
coalition of powerful faction leaders and other important political figures pursuing their own interests.” AU
forces remain in the country and have set up bases in the capital. But they have not been able to restore
order in the country and have come under repeated attacks by Islamists forces.

A New York Times article of December 3 that reported on a suicide bombing that killed 3 government
ministers in Mogadishu, said the government “controls only a few city blocks…and has accomplished very
little since a new, moderate Islamist president came into office in February and raised hopes for real
change. Western countries, desperate to prevent al-Qaeda from securing a sanctuary in East Africa, see
the transitional government as their last hope. The United States has been pouring in millions of dollars
in weapons for the government though because of rampant defections, many of those guns immediately
fell into Shabab hands…A government offensive was planned for this winter, but many people doubt it will
make any difference. The government doesn’t have a clue, doesn’t have a plan, doesn’t have anything,
said one advisor to the United Nations operations in Somalia. The advisor…said that the government
was planning a major cabinet reshuffle, but that was futile. It’s like rearranging the chairs on the Titanic.”

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3. Civil Liberties

Freedom House has designated Somalia as “not free” and has assigned it a rating of 7 out of 7 for
political rights and 7 out of 7 for civil rights. The lower the rating the higher the degree of political and civil
liberties. It is one of only 8 countries that Freedom House has assigned a rating of 7 for both political
and civil rights. Somalia is ranked 128 of 128 nations in the Bertelsmann Transformation Index. It is
ranked 1 of 177 in the Fund for Peace Failed State Index (the lower the ranking the higher the degree of
economic and political dysfunction) and is ranked at the 0.00 Percentile in the World Bank’s Political
Stability Governance Indicator.

The TFC endorses freedoms of speech and the press. Somalia though is a very dangerous place for
journalists in light of the chaotic conditions in the country. Journalists have been arrested, assassinated,
abducted and forced to flee while covering the violence in the country. The TFG has shut down private
radio stations. In March 2008, the FPA adopted a press law that allowed for significant government
control over the media. There is no national broadcaster. Radio is the main means of transmitting news.
Most radio stations are merely “mouthpieces” for the factions they support in the fighting. Internet use is
limited by the inability of much of the population to afford a personal computer, the poor
telecommunications infrastructure and the low electrification rate. Freedom House ranks Somalia 180 of
195 in its Freedom of the Press survey for 2009 and characterizes the press as "not free.”

Freedom of religion is restricted in many parts of the country controlled by Islamists fundamentalists who
have imposed a very strict and austere interpretation of Islam. Academic freedom is severely limited by
the reality that the education system has collapsed. Schools have been attacked by Islamic militants.
Freedom of assembly is impossible given the ongoing violence. Many non government organizations,
which play a critical role in feeding the country, have had to reduce of suspend their activities because of
the violence in the country. Several members of NGO’s have been abducted and murdered. In 2008, the
local head of the UN Development Program was assassinated.

There is no functioning judicial system. In many regions, local authorities administer justice via a mix of
Sharia (Islamic law) and traditional Somali forms of reconciliation. Some Islamist groups have imposed a
severe form of Sharia in the territory they control.

The US Department of State Human Rights Report for 2009 (covering 2008) noted that “Human rights
abuses included unlawful and politically motivated killings; kidnapping, torture, rape, and
beatings…arbitrary arrest and detention. In part due to the absence of functioning institutions, the
perpetrators of human rights abuses were rarely punished. Denial of fair trial and limited privacy rights
were problems, and there were restrictions on freedoms of speech, press, assembly, association, religion,
and movement…Politically motivated killings by antigovernment groups, extremist elements, and terrorist
organizations resulted in the deaths of approximately 20 senior TFG officials”

II. Economic Overview

The formal economy has largely ceased to function. Much of the informal economy is based upon
livestock, market stalls, and remittances which enter the country through unofficial sources as the banking
system does not exist. The modest industrial sector, which was concentrated in food processing, has
been severely undermined by the lack of spare parts and looting. Many of the markets are filled with
smuggled goods. Some hotels continue to operate with protection provided by private security militias.

Livestock accounts for 40% of GDP, agriculture and fishing for 25% of GDP, industry has a 10% share
and services are 25%. About 67% of the workforce is employed in agriculture, much of which is
subsistence in nature, 12% of the workforce is employed in industry and 21% are in services. There is no
reliable up to date accurate data on unemployment nor for that matter are there reliable data for any of
the major economic indicators. The unemployment rate has been estimated at 66% for urban areas and
41% for rural areas.

There is no national minimum wage. Around 43% of the population earns less than a dollar a day.

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Child labor is widespread. UNICEF estimated that from 1999 to 2005, 36% of children between the ages
of 5 and 14 were in the workforce. This however is probably an underestimation. Militias and other
fighting forces routinely recruit children.

The currency, the shilling, is worthless because of high inflation, for which there are no reliable estimates.
When the Central Bank ceased operations in the early 1990s, private businessmen and warlords
imported new shilling notes printed in Canada and Southeast Asia as needed. The World Bank has
estimated that about 80% of the currency in circulation is forged, reprinted, or is newly printed.
Somaliland has established its own Central Bank as have Puntland. In 2008, the UN warned that
hyperinflation and the sharp decline of the Somali shilling had increased food prices to such a degree that
it threatened the livelihood of millions of people. Surging food prices have caused food riots. In a June 23,
2009 Reuters article, Mark Bowden, U.N. humanitarian coordinator for Somalia estimated that food prices
had surged by 300% over the last year because of drought and the insecurity in the country.

The main crops grown are bananas, sorghum, corn, coconuts, rice, sugarcane, mangoes, and sesame
seeds. There are unexploited reserves of iron ore, tin, gypsum, bauxite, copper, natural gas and possibly
oil. Textiles and sugar refining are the principle industries.

The CIA Factbook estimated the economy grew by 2.6% in each of the three years ending in 2008. It also
estimated the per capita income in 2008 was just $300 dollars. This placed Somalia 185 of 192 nations
and territories that the CIA compiles per capita data for.

1. Infrastructure

In the light of the lack of a functioning government and the unending turmoil that has engulfed Somalia,
there has been no investment to upgrade, modernize and repair the infrastructure. As a result, most the
infrastructure is dilapidated, inadequate and incapable of servicing the needs of the people.

There are 22,100 km of roadway of which 11.8% are paved. The Department of State travel advisory for
Somalia noted that “There are no traffic lights in the country except in Hargeisa in Somaliland. The poor
condition of most roads makes driving hazardous. Night driving can be dangerous due to the absence of
lighting. Recent occurrences of land mine detonations on roads point to a potentially fatal risk for drivers.”
A November 6, 2009 New York Times article indicated that “roadblocks, are ubiquitous and virtually
unavoidable in a nation widely considered a case study in chaos.”

There are 59 airports of which 7 are paved. The main international airport is Aden-Adde International
Airport in Mogadishu. The airport was closed in 1995 after international peacekeepers who controlled the
area around the airport for 3 years withdrew. It was partially rebuilt and reopened in 2007 by the Islamic
Courts Union, which briefly controlled a large part of the country before its power was diminished by the
Ethiopian invasion in late 2006. The airport is currently not operational. In June 2007, it was bombed in
an air raid by Ethiopian jets. The airport is now the headquarters of the AU peacekeeping force. The AU
forces, which total 4,300 troops from Uganda and Burundi, have been under attack from insurgents who
are trying to takeover the airport. AU troops conduct patrols of the capital in armed vehicle conveys that
are often the target of attacks by improvised explosive devices.

The main airport is now the K50 Airport, 50 km south of the capital. It is serviced by Daallo Airlines, which
is headquartered in Dubai, and the United Nations Humanitarian Air Service, an airline operated by the
World Food Program (WFP) to transport humanitarian assistance, mainly in the form of food aid. There
are flights to Addis Ababa, Dubai and Nairobi. There are many small airports controlled by militias, which
use them to bring in weapons and smuggled goods.

There is no rail service.

Berbera in the northwestern part of the country was the major port. It is now located in the self declared
state of Somaliland. The port facilities were recently restored. It is Somaliland’s biggest income
generator. The government has held discussions with Bollore Africa Logistics of France concerning the
management of the port.

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The seaport at Mogadishu was reopened in 2006 after 15 years of disuse. It is guarded by AU
peacekeepers. The port is often shelled by insurgents. It is an important entry point for food delivered by
the WFP. Much of the infrastructure of the port is in need of restoration.

The water, sewage and sanitation systems (WSS) hardly function outside of Somaliland and Puntland,
which are relatively stable in comparison to Somalia. Most of the population obtains water from
boreholes and shallow wells. The water quality of many of the shallow wells is often poor because they
are located near latrines whose contents seep into groundwater. As a result, there are frequent
outbreaks of waterborne diseases such as cholera and diarrhea. Most of the WSS systems are poorly
maintained or have been severely damaged by the constant fighting that has engulfed the country since
the end of the Siad Barre regime. In Somaliland and Puntland, the operation and maintenance of the
WSS systems is financed by the UN and humanitarian donors. There is no national or municipal
institution that provides for sanitation or sewage. Individual garbage collectors exist. They charge for
their services. Garbage is deposited in wadis and landfills without regard to public health or
environmental considerations. In areas where there are large populations of internally displaced people,
who number 1.55 million, there are almost no sanitation facilities.

2. Energy Sector

There are no indigenous sources of oil, natural gas, coal or hydropower. Oil consumption is about 5,000
barrels per day. All of the electricity is generated by diesel. There is no oil refinery and as a result, all
refined products including jet fuel and gasoline have to be imported. Fuel wood and agriculture residue
accounts for 87% of all energy that is consumed.

Somalland, Puntland and Somalia produce and distribute their own electricity. The 3 electrical grids are
not integrated. The main electricity supplier in Puntland is the publicly owned entity Ente Nazionale
Energia Elettica. Private companies also supply electricity. In Somaliland, electricity is provided by
private companies and the state owned National Electricity Company. All the companies providing
electricity in South and Central Somalia are private. The electrical grid is decrepit and in need of
modernization and repairs. Power shortages and outages are frequent. The electrification rate is 7.7%.

In July 2007, the China National Offshore Oil Corp obtained rights to conduct oil exploration in Somalia.

On August 19, 2008, the government signed an agreement with Kuwait Energy Company and Indonesia’s
Medco Energi International Tbk to acquire a 49% (24.5% for each company) stake in the state oil
company, the Somalia Petroleum Corporation. The government retained a 51% ownership.

In January, 2009, Africa Oil of Canada ceased oil exploration activities in Puntland because of a lack of
funds. African Oil is involved in a joint venture with Range Resources of Australia. It holds an 80% stake
in the venture.

Total has rehabilitated and manages the oil terminal in Berbera.

3. External Accounts

There are no reliable up to date data on the external accounts. The major exports are livestock, hides
and bananas. The major imports are petroleum products and food stuffs. According to the CIA Factbook,
the UAE was the largest export market in 2008, accounting for 56.2% of the total followed by Yemen at
21% and Saudi Arabia with a 3.6% share. Djibouti was the dominant source of imports with a 20.2%
share. In second place was India at 11.9% followed by Kenya at 7.6%.

Remittances are a very important source of income that helps to underpin private consumption and
provide a safety net in an economy where the government does not function. A May 2008 study
sponsored by the British Department for International Development concluded that 80% of start-up capital
for small and medium size companies benefit from money sent by the Diaspora community. The UNDP
has estimated that up to $1 bn a year flows into the country from remittances. This is equivalent to 18%

7
of GDP. As the banking system is non existent, most of the remittances are handled through remittance
companies that charge a commission. In an interview with Reuters, Mark Bowden, the U.N. humanitarian
coordinator for Somalia, estimated that the global downturn has reduced remittances by 25% this year.
He indicated that remittances provide a “lifeline” to at least a third of the population.

There are no foreign exchange reserves.

4. External Debt and Budget Balance

The external debt at the end of 2004 was $3.2 bn. Somalia has been in arrears to the IMF since 1987.
As a result, Somalia’s voting rights in the IMF have been suspended. At end-January 2008, Somalia's
arrears to the IMF amounted to $357 mn. About 46% of the external debt is owed to the Paris club
nations and 15.3% to the World Bank.

The government plans to spend $108 mn in 2010, of which it hopes 74% will be provided by donors. This
represents a sharp increase from the $39 mn it expects to spend in 2009. About 40% of next year's
budget will be allocated to security.

5. Agriculture Sector

Like most of the economy, the agriculture sector has experienced a sharp deterioration since the country
has been engulfed by civil conflict. This has made it impossible for Somalia to feed itself. Only about
25% of the cereal requirement is produced domestically. The rest is provided by international assistance,
principally by the WFP. Corn and sorghum output is about half of what it was before the country was torn
apart by warring factions. Agricultural exports, which were $185 mn in 1997, plunged to just $43 mn in
2004. Most of the banana plantations have been abandoned. A devastating drought, which has resulted
in a poor harvest, has heightened concerns about the food needs of the country. Another major concern
is the demand by the al Shabab group that the WFP buy food from Somali farmers and stop importing
food. A statement released by the group accused the WFP of “causing many problems for Somali
farmers by importing food from outside Somalia…the WFP should buy its food from Somali farmers or
stop its operations.” Greg Barrow of the WFP indicated that “the WFP is working in Somalia because the
country cannot currently support the food needs of its population.” In the first half, the WFP provided food
assistance to 3 mn people.

6. Informal Economy

There is little left of the formal economy. Most businesses operate informally and are financed by
remittances, warlords or money lenders. Smuggling is a common means of obtaining needed goods.
People smuggling is a major illicit activity. Between the start of the year and mid October, about 29,000
people were smuggled to Yemen. This was up by 50% from the same period of 2008. The increase
reflects the rising instability in the country. In 2008, 589 people drowned while making the journey to
Yemen. There are an estimated 150,000 Somali refugees in Yemen. People pay between $600 to
$2,000 a piece to smugglers for the 200 mile journey. As many as 40 to 50 people are often packed into
boats that are 18 by 3 meters.

In 1992, the UN imposed an arms embargo on the country. Arms though are routinely smuggled from
Yemen. Smuggling of qat, a mildly narcotic leaf that is chewed, to Kenya is a major source of funding for
several of the militias.

Piracy along Somalia's coastline has become a very lucrative business with pirates collecting an
estimated $150 mn in ransom in 2008 when there were about 100 pirate attacks. Piracy has made many
ships reluctant to navigate around the waters of Somalia. Ransom money has boosted the economy with
many pirates stocking up on food, cigarettes and fuel before a raid. The additional money has spurred the
opening of internet cafes and telephone shops. It has been reported that by allowing the pirates to
operate off their coast, the government of Puntland is given a share of the pirate earnings, much of which
goes to government officials.

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III. Business Environment

Index Rank Score

Economic Freedom of the World Index 2008 N/A N/A
Heritage Foundation Economic Freedom Index 2009 N/A N/A
World Economic Forum – Global Competitive Index 2009-2010 N/A N/A
Milken Institute Capital Access Index 2008 N/A N/A
UNCTAD – Inward Potential Performance Index 2005-2007 N/A N/A
World Bank Ease of Doing Business 2010 N/A N/A
World Bank Gov Indicator 2009, Regulatory Quality 0.0 Percentile -2.77
World Bank Gov Indicators 2009, Rule of Law 0.0 Percentile -2.69
Transparency International Corruption Perception Index 2009 180/180 1.1/10.00

1. Summary of Indices

Somalia is only ranked in the World Bank Governance Indicators of the major governance and
competitiveness indicators. For both Regulatory Quality and Rule of Law, it was ranked at the 0.0
percentile, thus indicating there is no regulatory environment or rule of law.

2. Openness to Foreign Investment

The political instability in Somalia has made it a no go area for all but a few “fearless” companies. This
was highlighted by an invitation extended by the TFG in August 2007 to foreign oil companies that had
abandoned their concessions in the 1990s to once again invest in the country. None of the companies
that were previously active in the country however indicated a willingness to return. Much of the foreign
investment in recent years has been in the more stable areas of Somaliland and Puntland.

Data from the UNCTAD indicate that FDI in 2008 was $87 mn. This was below the $141 mn level in 2007
and represented 16.1% of gross fixed capital formation. The total stock of FDI (book value) at the end of
2008 was $346 mn, which was equal to 13.0% of GDP and was 8,550% above the level of 2000.

3. Financial Sector

There is no functioning banking system and there are no functioning financial markets. According to a
University of Wharton assessment of the financial sector, “The vast majority of the informal economy is
conducted under the auspices of the many moneylords who bankroll the various clan affiliated warlords
that battle for regional control and dominion over productive assets – largely agriculture and other
exportable commodities – and criminal activities.” The economy is heavily dollarized as the Somali shilling
is worthless. The Central Bank has ceased to function. There is a central bank in Somaliland but there
are no private or public financial institutions. There are no interest rates in Somalia as there are no
banks, no financial markets and no central bank.

According to the 2010 Bertelsmann country report for Somalia, “Currency transactions are carried out by
local vendors, who set the exchange rate daily on the basis of localized and contingent factors. In 2008,
billions of counterfeit Somali banknotes were printed in Puntland and have been the cause of
hyperinflation throughout Somalia…Several traders in urban centers do not accept the Somali currency
and have shifted to the dollar. “

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4. Corruption and Transparency

Somalia has not ratified the UN Convention Against Corruption. It has signed but not ratified the African
Union Convention on the Prevention and Combating of Corruption. It is ranked 180 of 180 nations in
Transparency International’s 2009 corruption perception index. In the 2008 survey, it was ranked 180 of
180 nations. According to Transparency International, a score of less than 3.0 out of 10.0 indicates there
is “rampant” corruption. Somalia’s score is 1.1.

According to the US Department of State’s Human Rights Report, “Official corruption is endemic
throughout the country. The law does not provide criminal penalties for official corruption and officials
frequently engaged in corrupt practices with impunity. Corruption exists in almost every transaction and
there is no regulatory or penal framework in place to combat it. This is true even in the provision of
humanitarian assistance.”

A Global Integrity corruption assessment report for 2008 noted that “Airport travelers have to pay
facilitation fees to countless internal security personnel…At the seaport, merchants importing goods into
Somalia say that even after they pay the regular tax, which they maintain is already prohibitively
excessive, importers and exporters are required by port officials to pay facilitation fees. This means they
must pay bribes to be allowed to take their imported goods out of the port or face indefinite delays that
involve undue inspections for illegal weapons, explosives or drugs…Motorists, particularly bus drivers on
Mogadishu’s potholed streets, face daily demands on their meager incomes from the police, military
forces, and clan militias. Bus drivers regularly have to pay a sum of money every time they use the few
drivable streets in the city…Lawmakers in the national parliament are bribed to vote for a particular issue.
Reports abound of huge sums of money changing hands in the Somali parliament when an important
motion is being debated or is about to be voted on... no one has been formally charged with, or arrested
for, corruption in Somalia since the current transitional government was formed in 2004.”

5. Standards Compliance Assessments

IMF Dissemination Standard Subscription Status

Special Data Dissemination Standard Not a GDDS Subscriber
General Data Dissemination Standard Not a SDDS Subscriber

IMF Assessment Standards Assessed Dates Compliance Level

Reports on Standards and N/A
Codes (ROSCs)

Financial Sector Assessment N/A

Programs (FSAPs)

Somalia has not been assessed by the IMF in any of its ROSCs.
IV. Human Capital
Index Rank Score
UNDP Human Development Index 2009 N/A N/A

1. Social Indicators

Somalia is not ranked in the 2009 UNDP Human Development Index. The data that is available
concerning social conditions suggest that there is a high level of poverty and economic distress. The
infant mortality rate is 116.5 per 1,000 live births (US Census Bureau for 2010), the probability of dying
before the age of 40 is 34.1%, 33.0% of births are attended to by a skilled health care professional, the
10
under 5 mortality rate is 142 per 1,000 live births, 34% of one-year olds are fully immunized against
measles, 11% of babies are born with low birth weight, the maternal mortality rate is 1,400 per 100,000
live births, 71% of the population is considered to be undernourished, 29% of the population have access
to clean drinking water, 32.8% of children under 5 are underweight for their age, 23% of the population
have access to improved sanitation facilities, the probability of dying between the ages of 15 and 60 is
32.3%, 73.4% of the population lives on less than $2 a day, and the projected life expectancy for 2010
(according to the US Census Bureau) is 50.0 years (51.9 years for females and 48.1 years for males).

Somalia is one of the 30 countries in crisis requiring external assistance and one of the 77 "Low Income
Food Deficit Countries” as defined by the Food and Agriculture Organization.

The World Food Program country report for Somalia noted that it was “one of the most dangerous places
in the world…with probably the highest humanitarian needs compared to the size of the population. By
August 2009, the country was facing its worst humanitarian crisis since the famine of 1991/1992 with 3.64
million people now in need of outside assistance. Despite growing insecurity, including rampant piracy on
the high seas, WFP scaled up its operations in the first half of 2009, providing food assistance to 2.87
million people because of conflict, displacement and drought…Fierce fighting in Mogadishu from May 7
onwards forced more than 210,000 people to flee their homes in the capital. An estimated 1.55 million
people are internally displaced. In addition, more than 36,000 Somalis fled as refugees into Kenya in the
first half of the year…An estimated 285,000 children (or one in every five) are acutely malnourished,
including 70,000 severely malnourished.”

A US AID Somalia Food Security Outlook report for January to June 2009 indicated that “The overall food
conditions in the country are not expected to improve…the delivery of humanitarian aid has become
increasingly difficult as a result of increased targeting of aid workers, deteriorating civil security, political
tensions, and renewed armed conflict. Sustained hyperinflation, sea piracy, and disruption of market and
trade activities, especially in the south and central regions, continue to worsen food availability and
access. Recent short rains were also inadequate in most parts of the country and affected crop and
livestock production…Rangeland resources are dwindling in many key grazing areas…the south, where
the bulk of the annual cereal production occurs, experienced an almost complete short rains crop failure.”

The food situation has been made especially acute by the decision of the US to delay food contributions
to Somalia because of concerns they would be “diverted to terrorists.” The UN has warned that the US
decision will result in a reduction of food rations. According to a New York Times article, “In October, the
US suspended millions of dollars of food aid because of concerns that Somalia contractors working for
the United Nations were funneling food and money to the Shabab, an Islamist insurgent group with
growing ties to Al Qaeda….There is increasing evidence according to United Nations documents that
some of the United Nations contractors in Somalia have been stealing food and channeling the proceeds
to the Sahbab and other militant groups….Partly because of the standoff over the new rules and the
ensuing interruption in the food pipeline, the World Food Program recently halved the emergency rations
to more than one million displaced Somalis.”

2. Access to Technology

There are 12 mainline telephone lines and 69 cellular subscribers per 1,000 people. Internet use is 11
per 1,000 people. There are 54.7 radios per 1,000 people, 8% of households have a television, there are
3 motor vehicles per 1,000 people and there are 90 personal computers per 1,000 people. The per capita
consumption of electricity is 30.7 kilowatt hours (in the US, it is 12,924 kilowatt hours).

3. Health Indicators

The health care system has been severely undermined by the chaos, violence and anarchy that have
engulfed the country. An article on the dire state of the health care system by the IRIN Humanitarian
News and Analysis, a project of the UN Office for the Coordination of Humanitarian Affairs, quoted
Abdirizaq Ahmed Dalmar, the head of the Somalia Medical Association, saying, "We have had armed
men in hospitals demanding that their friends be treated; they even go to the extreme of removing
patients from the table right in the middle of surgery…With shelling and fighting almost on a daily basis,
both medical staff and people in need of medical care are unable to access the medical facilities…the
11
past two years had been the worst for Mogadishu’s city's health system, with hospitals closed or barely
functioning…37 hospitals and clinics closed between 2007 and 2008 due to the fighting, with some taken
over by the military.” Mohamed Mahamud Bidey, the dean of the Benadir University Medical College and
a doctor in Mogadishu, told IRIN: "Some of our colleagues have been killed, maimed and kidnapped but
we are still trying to provide healthcare to those who need it."

The prevalence of HIV/AIDS is 0.5% of the adult population (15-49 years old). This is well below the 5.0%
average for sub-Saharan Africa. In 2007, there were 24,000 people living with AIDS of which 6,700 were
women 15 and over and less than 1,000 were children (ages 0-14). There were 8,800 AIDS orphans
(ages 0-17) and 1,600 deaths from AIDS. The prevalence of tuberculosis is 352 per 100,000 people (in
the US, it is 3 per 100,000 people) and the tuberculosis death rate is 63 per 100,000 people.

The prevalence of diabetes is 2.3% of the population between 20 and 79 (the average for sub-Saharan
African is 2.4%) and the prevalence of obesity is 0.4% for males and 2.6% for females. There were
608,831 cases of malaria in 2006 and 3,491 deaths from malaria. The mortality rate for cancer is 143 per
100,000 people, the mortality rate for cardiovascular diseases is 580 per 100,000 people and deaths due
to AIDS are 50 per 100,000 people. The homicide rate in 2004 was 3.3 per 100,000 people.

In a WHO survey of the leading causes of death in 2002, lower respiratory infections and perinatal
conditions each accounted for 11%, diarrhea diseases had a 9% share and measles were responsible for
7% of all deaths.

In the WHO’s ranking of the world’s health care systems, Somalia is ranked 179 of 190 countries
surveyed.

4. Education Indicators

According to the US State Department’s 2009 Human Rights Report, “Less than 30 percent of the school-
age population attends school…UNICEF reported that more than 60 percent of schools in Mogadishu
were closed and the remaining schools operated with reduced enrollment and attendance as many
parents withdrew their children because of security concerns. Since the collapse of the state in 1991,
education services have been partially revived in various forms, including a traditional system of Koranic
schools; public primary and secondary school systems financed by communities, foreign donors, and the
administrations in Somaliland and Puntland; Islamic charity-run schools; and a number of privately run
primary and secondary schools, universities, and vocational training institutes. Few children who entered
primary school completed secondary school. Schools at all levels lack textbooks, laboratory equipment,
toilets, and running water. Teachers are poorly qualified and poorly paid; many rely entirely on community
support for payment. The literacy rate was estimated at 25 percent.”

V. Economic Data, Outlook and Credit Rating

IMF Country Data Overview 2009 (Est.)

GDP GDP: GDP per CPI: Current Account Budget FDI

Growth capita: as % of GDP deficit as (UNCTAD
% of GDP 2008)

2.6% (UN $2.660 $300 (CIA N/A N/A N/A $87 mn

data for bn (UN data for
2008) Data for 2008)
2008)

1. Latest IMF Consultation

Somalia’s membership in the IMF has been revoked because of its arrears to the IMF.

12
2. Economic Outlook

Somalia is the epitome of a failed political state. There is no functioning government, economy, banking
system, legal system or central bank. There is also no railway system, the mainline telephone system
hardly operates and much of the infrastructure is in disrepair. Most countries have long ago abandoned
their embassies in Mogadishu because of the chaos that has engulfed the city. The health and
educational systems are in dire conditions, there are 1.55 million internally displaced persons and much
of the population relies upon food assistance from the World Food Program for their survival. The Fund
for Peace ranks Somalia first of the 177 nations that it surveyed, thus indicating that it is the most
dysfunctional, chaotic and anarchical nation in the world. Much of the country has is ruled by warlords
and Islamic religious extremists. Food production is constrained by the scorching climate and the small
amount of rainfall, which averages about 11 inches per year. Malnutrition rates are high (according to
UNICEF, they exceed the World Health Organization’s emergency threshold level of 15% of the
population). Puntland and Somaliland have effectively broken away and offer a degree political stability to
their population.

The State Department has issued a travel warning for Somalia. It recommends that American citizens
avoid all travel to Somalia. It noted that “Kidnapping, murder, illegal roadblocks, banditry, and other
violent incidents and threats to U.S. citizens and other foreigners can occur in many regions. Inter-clan
and inter-factional fighting flares up with little or no warning. Unpredictable armed conflicts among rival
militias are prevalent in southern Somalia, particularly in and around Mogadishu…There also have been
several fatal attacks and violent kidnappings against international relief workers…Lines of control in
Mogadishu are unclear and frequently shift, making movement within Mogadishu extremely hazardous.
Violent riots have recently occurred in Mogadishu, as thousands of civilians protested rising food prices
and the devaluation of the Somali currency…U.S. citizens are urged to use extreme caution when sailing
near the coast of Somalia. Merchant vessels, fishing boats, and recreational craft all risk seizure by
pirates and having their crews held for ransom.”

There is no reason to be optimistic with respect to the future of Somalia. The country is likely to remain in
the tight vice grip of chaos, anarchy and violence to the great detriment of its long suffering population,
many of whom have been pauperized by the collapse of any functioning authority that can provide for
their basic needs. In a press release issued on March 27, 2008, the WFP warned that “Somalia is sinking
deeper into an abyss of suffering with hundreds of thousands of women and children uprooted by fighting
while a lack of security is preventing full humanitarian access to some areas…The Somali capital is
currently gripped by rising fuel and food prices, which are hitting the poorest families hardest when they
were already struggling to survive with few opportunities to work.” Unfortunately, since that press release
was issued, the situation in the country has become even more dire and not doubt it will become even
more dire in the years to come as warlords and Islamic extremists fight over a country which is incapable
of feeding itself, largely desert, is bereft of foreign exchange reserves, has a dilapidated infrastructure and
has one of the highest population growth rates in the world. According to the US Census Bureau, the
population will surge by 157.4% between 2010 and 2050 when 62% of the population will be under 30.

3. Country Credit Ratings

Credit Rating Standard & Poor’s Moody’s Fitch Ratings

(as of date of publication) N/A N/A N/A

Somalia is not rated by any of the major credit rating agencies.

13
VI. Membership in international organizations

Financial Action Task Force (FATF) Not a member

International Center for Settlements of Investment Entry into Convention on March 30,
Disputes (ICSID) 1968

International Federation of Accountants (IFAC) Not a member

Multinational Investment Guarantee Agency (MIGA) Not a member

United Nations Convention Against Corruption Not ratified

World Intellectual Property Organization (WIPO) Yes, a member

World Trade Organization (WTO) Not a member

VII. Sources for Somalia

Geography

Central Intelligence Agency, “The World Factbook - Country Report for Somalia”
https://www.cia.gov/library/publications/the-world-factbook/geos/so.html

Doctors Without Borders, “Somalia: Majority of North Mogadishu Population Flees as Fighting Escalates”,
July 7, 2009
http://doctorswithoutborders.org/press/release.cfm?id=3695&cat=press-release

Official website of the Puntland government

http://www.puntlandgovt.com/profile.php

Somaliland Official Website, “Country profile of Somaliland

http://www.somalilandgov.com/

UN World Population Prospects: The 2008 Revision Population Data Base

http://esa.un.org/unpp/index.asp?panel=3

US Census Bureau: International Data Base

http://www.census.gov/ipc/www/idb/region.php

USAID, "Somalia Food Security Situation” , January to June 2009

http://pdf.usaid.gov/pdf_docs/PNADN905.pdf

World Bank, “Selected Indicators, World Development Report for 2009”

http://siteresources.worldbank.org/INTWDR2009/Resources/4231006-
1225840759068/WDR09_22_SWDIweb.pdf

World Urbanization Prospects, The 2007 UN Population Data Base

http://esa.un.org/unup/index.asp?panel=3

Political Environment Table

Bertelsmann Transformation Index

http://www.bertelsmann-transformation-
index.de/fileadmin/pdf/Anlagen_BTI_2010/BTI_2010__Ranking_Table_E_web.pdf

14
Freedom House, “Freedom in the World 2009: Table of Independent Countries"
http://www.freedomhouse.org/uploads/fiw09/FIW09_Tables&GraphsForWeb.pdf

Fund for Peace, “Failed State Index 2009”

http://www.fundforpeace.org/web/index.php?option=com_content&task=view&id=99&Itemid=140

World Bank, “World Governance Indicators”, 2009

http://info.worldbank.org/governance/wgi/index.asp

Turmoil, Chaos and Anarchy has Engulfed Somalia

BBC Country Profile for Somalia, October 5, 2009

http://news.bbc.co.uk/2/hi/africa/country_profiles/1072592.stm

Bertelesmann 2008 Country Report for Somalia

http://www.bertelsmann-transformation-index.de/74.0.html?&L=1

Freedom House, “2009 Report for Somalia”

http://www.freedomhouse.org/template.cfm?page=22&year=2009&country=7704

Global Security.org, “Somalia Civil War”

http://www.globalsecurity.org/military/world/war/somalia.htm

US Department of State, “Background Notes for Somalia”, October 2009

http://www.state.gov/r/pa/ei/bgn/2863.htm

Government

AllAfrica.com, “Somalia: Amisom troops Make New Military Base in Mogadishu”, November 22, 2009
http://allafrica.com/stories/200911230334.html

Australian Broadcasting Corporation, “Ethiopia withdraws from Somalia”, January 26, 2009
http://www.abc.net.au/news/stories/2009/01/26/2474077.htm

BBC Country Profile for Somalia, October 5, 2009

http://news.bbc.co.uk/2/hi/africa/country_profiles/1072592.stm

BBC News, “Somalia’s president quits office”, December 29, 2009

http://news.bbc.co.uk/2/hi/africa/7802622.stm

BBC News, “Somali joy as Ethiopians withdraw”, January 13, 2009

http://news.bbc.co.uk/2/hi/africa/7825626.stm

Bertelesmann 2008 Country Report for Somalia

http://www.bertelsmann-transformation-index.de/74.0.html?&L=1

Freedom House, “2009 Report for Somalia”

http://www.freedomhouse.org/template.cfm?page=22&year=2009&country=7704

Global Security.org, “Somalia Civil War”

http://www.globalsecurity.org/military/world/war/somalia.htm

Reuters, “Islamist leader sworn in as Somali president”, January 31, 2009

http://uk.reuters.com/article/idUKCAW102981

The Economist, “Ever more Atrocious”, December 10, 2009

http://www.economist.com/world/middleeast-africa/displayStory.cfm?story_id=15066022

15
The New York Times, “Suicide Bomber in Disguise Kills 3 Officials in Somalia”, December 3, 2009
http://www.nytimes.com/2009/12/04/world/africa/04somalia.html

US Department of State, “Background Notes for Somalia”, October 2009

http://www.state.gov/r/pa/ei/bgn/2863.htm

Civil Liberties

Freedom House, “2009 Report for Somalia”

http://www.freedomhouse.org/template.cfm?page=22&year=2009&country=7704

US Department of State, "Human Rights Report for Somalia," February 25, 2009
http://www.state.gov/g/drl/rls/hrrpt/2008/af/119024.htm

US Department of State, “Background Notes for Somalia”, October 2009

http://www.state.gov/r/pa/ei/bgn/2863.htm

Economic Overview

AFP, "Somalia-Security, Somalis protest hyper inflation as food crisis bites”, May 5, 2008
http://www.newssafety.org/index.php?view=article&catid=41%3Asomalia-
security&id=8451%3ASomalis+protest+hyper-
inflation+as+food+crisis+bites&option=com_content&Itemid=100249

Central Intelligence Agency, “The World Factbook - Country Report for Somalia”
https://www.cia.gov/library/publications/the-world-factbook/geos/so.html

Christian Science Monitor, “Food riots, anti-US protests erupt in Somalia,” May 7, 2008
http://www.csmonitor.com/2008/0507/p99s01-duts.html

European Commission, “Support for Employment Promotion in Somalia”, June 2004

http://www.delken.ec.europa.eu/en/publications/Support%20to%20employment%20promotion%20in%20
Somalia.pdf

Foreign Policy, “List of the World’s Worst Currencies”

http://www.foreignpolicy.com/story/cms.php?story_id=3880

International relations and Security Network, “Somalia Pirates of the Gulf”, March 12, 2009
http://www.isn.ethz.ch/isn/Current-Affairs/Security-Watch/Detail/?id=97585&lng=en

Reuters, “Interview – Somali remittances hit hard by financial crisis – UN”, June 23, 2009
http://www.reuters.com/article/homepageCrisis/idUSLN731524._CH_.2400

US Department of State, "Human Rights Report for Somalia," February 25, 2009
http://www.state.gov/g/drl/rls/hrrpt/2008/af/119024.htm

Infrastructure

AFP, “Somali Islamist militia orders Mogadishu airport closure”, September 15, 2008
http://www.newssafety.org/index.php?view=article&catid=41%3Asomalia-security&id=9927%3Asomali-
islamist-militia-orders-mogadishu-airport-closure-&option=com_content&Itemid=100249

AFP, “African peacekeepers tread warily in Mogadishu”, November 25, 2009

http://news.yahoo.com/s/afp/20091125/wl_africa_afp/somaliaafricanunionunrestsnipers

AllAfrica.com, “Somalia: Port Workers Demonstrate in Mogadishu”, November 4, 2009

http://allafrica.com/stories/200911040932.html

16
Central Intelligence Agency, “The World Factbook - Country Report for Somalia”
https://www.cia.gov/library/publications/the-world-factbook/geos/so.html

Daallo Airlines
http://www.daallo.biz/default.asp

Gettleman, Jeffrey, “US Delays on Food Donations are Reducing Supplies in Somalia, UN Says”, New
York Times, November 6, 2009
http://www.nytimes.com/2009/11/07/world/africa/07somalia.html

IRIN, Humanitarian News and Analysis, a project of the UN Office for the Coordination of Humanitarian
Affairs, “Somalia – The Berbera Lifeline”
http://www.irinnews.org/InDepthMain.aspx?InDepthId=56&ReportId=72315&country=yes

Internally Displaced Monitoring Center, Country Profile for Somalia

http://www.internal-
displacement.org/8025708F004CE90B/%28httpCountries%29/02EE5A59E76049F5802570A7004B80AB
?OpenDocument

ReliefWeb, “Somalia: People smuggling – Pirates, bandits, traffickers,” November 18, 2009
http://www.reliefweb.int/rw/RWB.NSF/db900SID/SNAA-7XX4WE?OpenDocument

Reuters, “Mogadishu port slowly changing lives in Somalia," March 24, 2008
http://www.reuters.com/article/homepageCrisis/idUSCAW424706._CH_.2400

Somaliland Patriots News, “French company may manage Berbera Port", October 12, 2009
http://www.somalilandpatriots.com/print-8811-0

US AID, “Somalia: Water and Sanitation Profile”

http://pdf.usaid.gov/pdf_docs/PNADO923.pdf

US State Department, “Travel Advisory for Somalia,” November 4, 2008

http://travel.state.gov/travel/cis_pa_tw/cis/cis_1023.html

World Food Program Profile of Somalia

http://www.wfp.org/countries/somalia

Energy

Al Watan Daily. Somalia in JV with KEC and Medco Energi International”, August 19, 2008
http://www.alwatandaily.com/articleviews.aspx?id=17153&Cat=2

China Economic Review, “CNOOC wins Somalia oil exploration rights”, July 16, 2007
http://www.chinaeconomicreview.com/dailybriefing/2007_07_16/CNOOC_wins_Somalia_oil_exploration_r
ights.html

Developing Renewables, Country Energy Information for Somalia, September, 2006

http://www.energyrecipes.org/reports/genericData/Africa/061129%20RECIPES%20country%20info%20S
omalia.pdf

Energy Information Administration, “Energy Balance for Somalia”

http://www.eia.doe.gov/emeu/world/country/cntry_SO.html

Energy Information Administration, “Somalia,” November 19, 2009

http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=SO

Mbendi Information Service, Electrical Power in Somalia”

http://www.mbendi.com/indy/powr/af/so/p0005.htm

17
Renewable Energy and Energy Efficiency Partnership, Country report for Somalia
http://www.reeep.org/index.php?id=9353&text=policy&special=viewitem&cid=61

Reuters, “Alert Net for Somalia”

http://www.alertnet.org/db/cp/somalia.htm

Reuters, “Canada’s Africa Oil stops Somali exploration- staff”, January 4, 2009
http://www.reuters.com/article/rbssEnergyNews/idUSL459645620090104

UN Report, “Progress Achieved on Energy for Sustained Development in the Arab Region"
http://www.un.org/esa/sustdev/csd/csd14/escwaRIM_bp.pdf

“Water for Agriculture and Energy in Africa: the Challenges of Climate Change”, Sirte, Libya, December
15-17, 2008, “National Investment Brief for Somalia”
http://www.sirtewaterandenergy.org/docs/reports/Somalia-Draft2.pdf

External Accounts

Central Intelligence Agency, “The World Factbook - Country Report for Somalia”
https://www.cia.gov/library/publications/the-world-factbook/geos/so.html

Reuters, “Interview – Somali remittances hit hard by financial crisis – UN”, June 23, 2009
http://www.reuters.com/article/homepageCrisis/idUSLN731524._CH_.2400

Saltmarsh, Matthew, “Somalis’ Money is Lifeline for Homeland”, New York Times, November 11, 2009
http://www.nytimes.com/2009/11/12/world/africa/12remit.html?scp=16&sq=matthew%20saltmarsh&st=cs
e

Wharton Financial Assessment of Somalia

http://fic.wharton.upenn.edu/fic/africa/Somalia%20Final.pdf

External Debt and Budget Balance

BusinessDayAfrica.com, “Somalia seeks funds to fight pirates and rebels,” November 30, 2009
http://www.businessdailyafrica.com/-/539552/814538/-/68sg2l/-/

International Monetary Fund, “Review of the IMF’s Strategy on Overdue Financial Obligations”, August
18, 2009
http://www.imf.org/external/pp/longres.aspx?id=4360

The Horn Economic and Social Policy Institute, “Renewing Somalia’s Membership in International
Financial Institute
http://hespi.org/Documents/Somalia's%20membership%20wz%20IFI.doc

Agriculture

CNN.com. “Militia warns UN buy from Somali farmers or cut aid”, November 25, 2009
http://edition.cnn.com/2009/WORLD/africa/11/25/somalia.warning/

“Water for Agriculture and Energy in Africa: the Challenges of Climate Change”, Sirte, Libya, December
15-17, 2008, “National Investment Brief for Somalia”
http://www.sirtewaterandenergy.org/docs/reports/Somalia-Draft2.pdf

Informal Economy

Globalenvision.org, “Piracy Boosts Somali Economy”, April 27, 2009

http://www.globalenvision.org/2009/04/13/piracy-boosts-somali-economy

18
Mail and Guardian online.com, “UN: Arms embargo on Somalia constantly broken”, December 20, 2008
http://www.mg.co.za/article/2008-12-20-un-arms-embargo-on-somalia-constantly-broken

ReliefWeb, “Somalia: People smuggling – Pirates, bandits, traffickers” November 18, 2009
http://www.reliefweb.int/rw/RWB.NSF/db900SID/SNAA-7XX4WE?OpenDocument

Stratfor, “Kenya: Somalian Drug Smugglers and the SICC”, April 4, 2008
http://www.stratfor.com/analysis/kenya_somalian_drug_smugglers_and_sicc

Wharton Financial Assessment of Somalia

http://fic.wharton.upenn.edu/fic/africa/Somalia%20Final.pdf

Business Environment Table

Fraser Institute Economic Freedom of the World Index

http://www.freetheworld.com/cgi-bin/freetheworld/getinfo.cgi

Heritage Foundation Economic Freedom Index

http://www.heritage.org/index/Ranking.aspx

Milken Institute Capital Access Index

http://www.milkeninstitute.org/pdf/2008CAI.pdf

Transparency International Corruption Perception Index

http://www.transparency.org/policy_research/surveys_indices/cpi/2009

UNCTAD – Inward Potential Performance Index

http://www.unctad.org/templates/WebFlyer.asp?intItemID=2471&lang=1

World Bank Ease of Doing Business

http://www.doingbusiness.org/EconomyRankings/

World Bank Governance Indicators

http://info.worldbank.org/governance/wgi/index.asp

World Economic Forum Global Competitiveness Index

http://www.weforum.org/pdf/GCR09/GCR20092010fullrankings.pdf

Openness to Foreign Investment

HIS GlobalInsight.com, “Proposed New Oil Law to Allow Foreign Companies to Resume Operations in
Somalia, NOC to be Launched”, August 14, 2007
http://www.ihsglobalinsight.com/SDA/SDADetail10273.htm

UNCTAD, "World Investment Report 2009 - Country Fact Sheet: Somalia," September 17, 2009
http://www.unctad.org/Templates/Page.asp?intItemID=3198&lang=1

Financial Sector

Bertelsman Country Assessment Report for Somalia

http://www.bertelsmann-transformation-index.de/74.0.html?&L=1#chap8

Wharton Financial Assessment of Somalia

http://fic.wharton.upenn.edu/fic/africa/Somalia%20Final.pdf

Corruption and Transparency

Freedom House, “2009 Report for Somalia”

http://www.freedomhouse.org/template.cfm?page=22&year=2009&country=7659

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Global Integrity, “In Somalia, Paying Just to be Alive”, February 17, 2009
http://commons.globalintegrity.org/2009/02/in-somalia-paying-just-to-be-alive.html

List of Countries that have signed the African Union Convention on Preventing and Combating Corruption
http://www.africa-
union.org/root/AU/Documents/Treaties/List/African%20Convention%20on%20Combating%20Corruption.
pdf

Transparency International Corruption Perception Index

http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table

United Nations Convention Against Corruption

http://www.unodc.org/unodc/en/treaties/CAC/signatories.html

US Department of State, "Human Rights Report for Somalia," February 25, 2009
http://www.state.gov/g/drl/rls/hrrpt/2008/af/119024.htm

Standards and Compliance

International Monetary Fund list of GDDS nations

http://dsbb.imf.org/Applications/web/gdds/gddscountrylist/

International Monetary Fund list of SDDS nations

http://dsbb.imf.org/Applications/web/sddscountrylist/

International Monetary Fund, Report on Observance of Standards and Codes

http://www.imf.org/external/np/rosc/rosc.asp

International Monetary Fund Financial Sector Assessment Programs

http://www.imf.org/external/np/fsap/fsap.asp

World Bank, Report on the Observance of Standards and Codes

http://www.worldbank.org/ifa/rosc.html

Social Indicators

Africa Media Development Assistance, Country Report for Somalia

http://downloads.bbc.co.uk/worldservice/trust/pdf/AMDI/somalia/amdi_somalia2_country.pdf

Food and Agriculture Organization – List of Low-Income Food Deficit Countries, May, 2009
http://www.fao.org/countryprofiles/lifdc.asp

Gettleman, Jeffrey, “U.S. Delays on Food Donations are Reducing Supplies in Somalia, U.N. Says”, The
New York Times, November 6, 2009
http://www.nytimes.com/2009/11/07/world/africa/07somalia.html

International Food Policy Research Institute, “Global Hunger Index, The Challenge of
Hunger 2009”
http://www.ifpri.org/sites/default/files/publications/ghi09.pdf

Kaiser Family Foundation, "Global Health Facts – Health Indicators"

http://www.globalhealthfacts.org/factsheets_custom.jsp#

The New York Times, “U.N. Experts Get Threats in Inquiry Into Somalia,” December 12, 2009
http://www.nytimes.com/2009/12/13/world/africa/13somalia.html?_r=1

UN data for under 5 mortality rate per 1,000 births

http://data.un.org/Data.aspx?d=MDG&f=seriesRowID%3A561

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UN Statistics, “Millennium Development Goals Indicators, Children 1 year old immunized against
measles”
http://unstats.un.org/unsd/mdg/SeriesDetail.aspx?srid=563

UN Central Emergency Response Fund for Somalia 2007

http://ochaonline.un.org/Default.aspx?tabid=1734

UNDP, "2009 Human Development Report for Somalia”, October 2009

http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_SOM.html

USAID, “Somalia Food Security Outlook – January – June 2009”

http://pdf.usaid.gov/pdf_docs/PNADN905.pdf

US Census Bureau: International Data Base

http://www.census.gov/ipc/www/idb/region.php

World Food Program Profile of Somalia

http://www.wfp.org/countries/somalia

World Health Organization, "Core Health Indicators," May 2008

http://www.who.int/whosis/database/core/core_select.cfm?strISO3_select=ALL&strIndicator_select=ALL&
intYear_select=latest&language=english

Access to Technology

Nationmaster, “Per capita electricity consumption”

http://www.nationmaster.com/graph/ene_ele_con_percap-energy-electricity-consumption-per-capita

Nationmaster, “Radio ownership per 1,000 people”

http://www.nationmaster.com/graph/med_rad_percap-media-radios-per-capita

Nationmaster, “Motor vehicles per 1,000 people”

http://www.nationmaster.com/graph/tra_mot_veh-transportation-motor-vehicles

Nationmaster, “Televisions per 1,000 people

http://www.nationmaster.com/graph/med_tel_percap-media-televisions-per-capita

Reuters AlertNet – “Standard of Living for Somalia”

http://www.alertnet.org/db/cp/somalia.htm

World Bank, "Information and Communications for Development 2009," May 2009
http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:20459133~isCURL:Y~
menuPK:1192714~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html

World Economic Forum Network Readiness Index

http://www.weforum.org/pdf/gitr/2009/Rankings.pdf

Health Indicators

AllArica.com, “Somalia: Providing Health care Against All Odds in Mogadishu”, April 7, 2009
http://allafrica.com/stories/200904070668.html

Guardian.co.uk, “Global homicide: murder rates around the world”

http://www.guardian.co.uk/news/datablog/2009/oct/13/homicide-rates-country-murder-data

HIV In site, “Somalia, March 2007”

http://hivinsite.ucsf.edu/global?page=cr-01-00&post=2&cid=SO&submit=Create+Report

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Kaiser Family Foundation, "Global Health Facts – Health Indicators"
http://www.globalhealthfacts.org/factsheets_custom.jsp#

US State Department, “Travel Advisory for Somalia,” November 4, 2008

http://travel.state.gov/travel/cis_pa_tw/cis/cis_1023.html

World Bank, World Development Indicators 2006, “Health Risks and Public Health Challenges”
http://devdata.worldbank.org/wdi2006/contents/Section2.htm

World Health Organization, "Core Health Indicators," May 2008

http://www.who.int/whosis/database/core/core_select.cfm?strISO3_select=ALL&strIndicator_select=ALL&
intYear_select=latest&language=english

World Health Organization, “Mortality Country Fact Sheet 2006 for Somalia’
http://www.who.int/whosis/mort/profiles/mort_emro_som_somalia.pdf

World Health Organization, "Ranking of medical care systems," 2000

http://www.photius.com/rankings/healthranks.html

Education Indicators

2009 Edition of UNESCO Global Education Digest

http://www.uis.unesco.org/template/pdf/ged/2009/GED_2009_EN.pdf

Education International, "Education Report for Somalia Leone," June 18, 2007
http://www.ei-ie.org/barometer/en/profiles_detail.php?country=somalia

UNESCO Education Database

http://stats.uis.unesco.org/unesco/TableViewer/document.aspx?ReportId=198&IF_Language=enEcong

US Department of State, "Human Rights Report for Somalia," February 25, 2009
http://www.state.gov/g/drl/rls/hrrpt/2008/af/119024.htm

Economic Data

Central Intelligence Agency, “The World Factbook - Country Report for Somalia”
https://www.cia.gov/library/publications/the-world-factbook/geos/so.html

UN Economic Data for Somalia

http://unstats.un.org/unsd/snaama/resCountry.asp

UNCTAD, "World Investment Report 2009 - Country Fact Sheet: Somalia," September 17, 2009
http://www.unctad.org/Templates/Page.asp?intItemID=3198&lang=1

Latest IMF Consultation

Somalia and the IMF

http://www.imf.org/external/country/SOM/index.htm

Economic Outlook

US Census Bureau: International Data Base

http://www.census.gov/ipc/www/idb/region.php

US State Department “Travel Warning for Somalia”, November 15, 2008

http://travel.state.gov/travel/cis_pa_tw/tw/tw_933.html

World Food Program, “WFP warns Somalia sinking deeper into abyss of suffering”, March 27, 2008
http://www.wfp.org/node/203

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Credit Rating

Fitch
http://www.fitchratings.com/corporate/sectors/issuers_list_corp.cfm?sector_flag=5&marketsector=1&detail
=&body_content=issr_list

Moody’s
http://www.moodys.com/moodys/cust/content/loadcontent.aspx?source=StaticContent/BusinessLines/Sov
ereign-SubSovereign/RatingsListGBR.htm&Param=ALL

Standard and Poor’s

http://www.standardandpoors.com/ratings/sovereigns/ratings-
list/en/us/?sectorName=Governments&subSectorCode=39&subSectorName=Sovereigns

Memberships

Financial Action Task Force

http://www.fatf-gafi.org/pages/0,3417,en_32250379_32236869_1_1_1_1_1,00.html

International Center for Settlements of investment Disputes

http://icsid.worldbank.org/ICSID/FrontServlet?requestType=ICSIDDataRH&reqFrom=Main&actionVal=Vie
wContractingStates&range=A~B~C~D~E

International Federation of Accountants

http://web.ifac.org/about/member-bodies

Multinational Investment Guarantee Agency

http://www.miga.org/quickref/index_sv.cfm?stid=1577

United Nations Convention Against Corruption

http://www.unodc.org/unodc/en/treaties/CAC/signatories.html

World Intellectual Property Organization

http://www.wipo.int/members/en/

World Trade Organization

http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm

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