Agricultural Stagnation and Government Policy in Somalia (1970-1990).
AREH, ABDULRASHID (2001)
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AREH, ABDULRASHID
2001
Kansantaloustiede - Economics
Taloudellis-hallinnollinen tiedekunta - Faculty of Economics and Administration
Hyväksymispäivämäärä
2001-11-15Tiivistelmä
n Somalia, agriculture is the principal source of livelihood and employment like most African countries. In spite of this crucial role, the performance of agriculture production particularly food production has been poor and declining over the last two decades.
The paper attempts to investigate the underlying factors behind the agricultural stagnation taking cereal crop production as a case study. To do so, a combination of internal and external factors have been selected. The main focus is the goverment's agricultural policies. Ill-conceived government policies of the last regime which came to power in 1969 has been mostly attributed the root causes of the Somali crisis, which has social, political and economic dimensions.
The analysis shows that ill-conceived government policies included low producer price, misallocation of meagre expenditure on state farms and big irrigation projects neglecting the majority of small producers, over-valued exchange rate, urban--biased policy, top-down rural development strategy which resulted in to lack of meaningful participation of rural producers In all agricultural policy making level, forceful confiscation of crop produce and livestock as well as destructive land law designed for land grabbing, indeed have contributed to the decline of agricultural production.
Further more, structural factors such as lack of essential inputs, infrastructure, credit and environmental constrain- low insufficient and irregular rainfall, as well as droughts also contributed to the stagnation. On the other hand, this project looked at the role of external factors particularly food aid and establishes that food aid had a disincentive effects on domestic production by increasing the total supply, therefore, reducing the incentives to local producers. In addition, food aid changed food taste away from the domestically produced crops decreasing local production and causing agricultural stagnation.
Agricultural crisis was followed by a wide spread food insecurity, poverty and malnutrition. The marginalization of rural producers in Somalia resulted in civil war and anarchy that has put contemporary Somalia in ruins. Finally the study highlights the daunting task of agriculture sector rehabilitation awaiting any future government in Somalia to correct the past Injustices and to lay the foundation of political stability and economic development.
The paper attempts to investigate the underlying factors behind the agricultural stagnation taking cereal crop production as a case study. To do so, a combination of internal and external factors have been selected. The main focus is the goverment's agricultural policies. Ill-conceived government policies of the last regime which came to power in 1969 has been mostly attributed the root causes of the Somali crisis, which has social, political and economic dimensions.
The analysis shows that ill-conceived government policies included low producer price, misallocation of meagre expenditure on state farms and big irrigation projects neglecting the majority of small producers, over-valued exchange rate, urban--biased policy, top-down rural development strategy which resulted in to lack of meaningful participation of rural producers In all agricultural policy making level, forceful confiscation of crop produce and livestock as well as destructive land law designed for land grabbing, indeed have contributed to the decline of agricultural production.
Further more, structural factors such as lack of essential inputs, infrastructure, credit and environmental constrain- low insufficient and irregular rainfall, as well as droughts also contributed to the stagnation. On the other hand, this project looked at the role of external factors particularly food aid and establishes that food aid had a disincentive effects on domestic production by increasing the total supply, therefore, reducing the incentives to local producers. In addition, food aid changed food taste away from the domestically produced crops decreasing local production and causing agricultural stagnation.
Agricultural crisis was followed by a wide spread food insecurity, poverty and malnutrition. The marginalization of rural producers in Somalia resulted in civil war and anarchy that has put contemporary Somalia in ruins. Finally the study highlights the daunting task of agriculture sector rehabilitation awaiting any future government in Somalia to correct the past Injustices and to lay the foundation of political stability and economic development.