Presentation

Economic Development
 Country details
 Country Selected – Somalia
 Continent – Africa
 Population – 15 Million
 Official language – Somalia and Arabic
 Religion – Islam(Majority)
 Government – Federal Parliament
 Current president – Mohammed Abdullahi
 Current PM – Hassan Ali khayre
 Economic Challenges
 Drought
 Donor’s help(result in increase of 55% deficit)
 Unemployment at all time high
 Trade Difficulties
 Political Conflicts and Violence
 Govt overthrown by military
Economy details
 GNP composition by sector
Agriculture – 65%
Industry – 10%
Services – 25%

Agriculture and livestock are the economy of

the somali economy
Economic Indicatiors
 The World Bank reports that Somalia's GDP was $917.0 million out of 1990 and its
all out populace was 13.42 million out of 2014, and has since ascended to 15
million starting at 2018, checking about a 12% expansion in its all out populace
since then.In 2018 the World bank evaluated a yearly GDP of $6.2 billion,
comparative in size to Guam and the Kyrgyz Republic,and characterizes it as a
low-salary country. The United Nations Statistics Division reports a GDP figure of
$1.306 billion for 2012, contrasted with $2.316 billion of every 2005 and $1.071
billion in 2010.

 As indicated by the Central Bank of Somalia, at some point during the 2000s the
nation's GDP per capita as per the World Bank was $230, a slight decrease in
genuine terms from 1990.The 2012 Human Development Report evaluates per
capita GDP to be $284, contrasted and a normal across sub-Saharan Africa of
$1,300 per capita. This GDP per capita figure is the fourth most minimal in the
world. About 43% of the populace live on under 1 US dollar daily, with about 24%
of those found in urban zones and 54% living in country areas.
Source - IMF
Globalization and open market
impact on somalia
 Somalia’s communities have had to deal with a period of
statelessness for longer than any other society in the contemporary
world. Somalia also ranks among the lowest countries in the world
on UNDP’s Human Development Index (HDI). It might, therefore,
seem reasonable to view Somalia as a country left out of the loop of
new global markets, technologies, politics and cultures. In reality,
however, Somalia has had a complex and uneven set of interactions
with global actors and trends. This paper examines the impacts of
globalization on Somalia. We see globalization as the extension of
trends and influences (such as ideas, concepts, knowledge, ethics
and technology as well as behaviors) across erstwhile barriers
(ethnic, linguistic, cultural, religious, political or environmental). It
must be emphasized that globalization is not merely a
homogenizing and integrating force, but divides and fragments
societies as well. Globalization creates differences
 The UN intervention in Somalia from 1992 to 1995
resulted in a new influx of foreigners, their values
and their money, and a new and rapid phase in its
globalization. Somalis who had cultivated contempt
for the Western languages suddenly found them
useful in acquiring well-paying jobs. Foreign products
(sodas, computers and other items) which had, until
then, been prohibitively expensive (or simply
prohibited) made an appearance. Losing one’s life
over inter-clan rivalries became less tolerable, as
many Somalis realized that a different way of life
existed, and might even be within their reach
FDI
 FDI has not been associated with positive
economic growth in Somalia. In generally
Foreign Direct Investment and economic
growth in Somalia has been in positive relationship
before 1980, but unfortunately after that time
the FDI in Somalia declined since at that time
Somalia and Ethiopia broken out in war
against each other which caused the decline
of foreign investment in Somalia and
Somalia’s economic growth started to decline.
Proposition for a community-based
project
 Opening a new clothes manufacturing
company in somalia
 Which will provide job oppurtunity for many

people
 Plus company will contribute its part of a

share to the local welfare of the country

 Various outlets will opened all over the

country.
How does it help to the company
 Less production cost compared to the other
countries
 Plus wages comparatively low but sustainable

for the local people

 Goodwill and a good brand image for the

company
 Plus tax reduction for the company if they

even invest in social welfare

How does it help the Country
 More employment so more income which will
increase the national income of the country
 With Social welfare company will invest in

education so it will help in the development

of the country
 Other companies will automatically notice

and would even try to start a company in

somalia which will help the citizens of the
country
Also government will support the company
which will increase the trust in the citizens of
the country and they will be motivated to
apply for job in the country.

Somalia’s GDP and economic growth is

already increasing and with this sales pitch
this will help with FDI in the country and FDI
will be a huge boost to develop countries like
Somalia.
Conclusion
 Overall growth in the economy of Somalia
 Increase in GDP of the country
 Increase in Employment