How somalias oil revenue will be shared

[Chaseyourdreamzz]

Interesting breakdown the local districts receive a good share whether land or sea

 

[Testo 21]

Don't expect anybody do something for you, you need take it by force and call it even.

 

[altrae]

Precarious as it already is, i honestly expected the federal state to have more autonomy hence more of the percentage aa shown. Leaving this to them is probably best. Im interested in seeing how this graph might differ and how they'd pursue their own deals if the FGS were involved to a certian degree.

 

[berberaboy66]

Is there difference between offshore and onshore agreements? I don’t think states can be claiming waters they can’t protect.

 

[CABDULWALI XASAN.]

This is just like 4.5, it sounds sweet in the beginning and end up being a disaster later on.

 

[Ashraf]

So you’re telling me oil is gonna fund our clan militia wars now I have no faith in these stupid ahh politicians to make anything good of this resource. They have a goal of $4000 per capita income in 20 fucking 60. Djibouti practically makes that now being a prostitute for foreign bases

 

[Thegoodshepherd]

As soon as any FMS begins to produce, I expect that they will insist on a renegotiation.

 

[AlteKartel]

Precarious as it already is, i honestly expected the federal state to have more autonomy hence more of the percentage aa shown. Leaving this to them is probably best. Im interested in seeing how this graph might differ and how they'd pursue their own deals if the FGS were involved to a certian degree.

FMS already get a lot lmao. Effectively 45% for offshore and 70% for onshore. That seems pretty autonomous to me. I will say this doesn’t include royalties. I think federal government gets 100% of those and that is a substantial piece.

 

[Thegoodshepherd]

FMS already get a lot lmao. Effectively 45% for offshore and 70% for onshore. That seems pretty autonomous to me. I will say this doesn’t include royalties. I think federal government gets 100% of those and that is a substantial piece.

I think the entire premise where some natural resources are nationalized while others are not is untenable. Hydrocarbons & fisheries are nationalized while agricultural land is not.

This is a policy choice. If Puntland will have to pay other FMS a portion of the revenues from its fisheries, other FMS should give Puntland usufruct rights over some agricultural land so it can grow fruits and vegetables for its own consumption.

If this is unacceptable, then let us be like the US where each state enjoys its hydrocarbons, fisheries and agricultural land on its own.

Horta who decides what will be shared and what will not be shared?

Will there be sharciga biyaha and beeraha where Puntland gets farmland in Jubaland or Hiirshabelle? Why do we have to share the fisheries we have been using for a thousand years if you don't have to share farmland?

It would be disastrous for Puntland to follow through on the 2018 agreement as it would mean Puntland would only be getting 50% of revenues from its onshore oil and even less, 35%, from its offshore oil. Puntland has no agriculture, it has only grazing & fishing. Oil is probably the best potential resource it can look forward to.

Imagine Gedo giving away the rights to half of its arable land to the federal government? Can you imagine Puntland asking Hiirshabelle, Koonfur Galbeed and Jubaland to share 10% of the arable land with Puntland? It would be insane. Gaas was insane to sign away Puntland's only hope for quick economic development.

Deni is simply carrying out what the majority of people in Puntland want. Gaas lost his bid for reelection for good reason.

 

[FBIsomalia]

Interesting breakdown the local districts receive a good share whether land or sea

If the IC aid not shared because of HAG moryanimo, why you think Oil will be shared?

Yeman has oil but still poor country, if South Somalia found oil, nothing will change.

 

[AlteKartel]

I think the entire premise where some natural resources are nationalized while others are not is untenable. Hydrocarbons & fisheries are nationalized while agricultural land is not.

This is a policy choice. If Puntland will have to pay other FMS a portion of the revenues from its fisheries, other FMS should give Puntland usufruct rights over some agricultural land so it can grow fruits and vegetables for its own consumption.

If this is unacceptable, then let us be like the US where each state enjoys its hydrocarbons, fisheries and agricultural land on its own.

I don’t agree with fisheries being nationalized, but it makes sense to an extent. The borders of a state only exist on land, hence why agriculture is left to the purview of states. However, the sea belongs to the Somali people regardless of if they are from Bari or from Gedo. Despite this philosophical line of reasoning, I don’t agree with fisheries being nationalized. That should obviously be left to the states. It’s no different to agriculture imo.

Also, pragmatically speaking, it is unlikely that the FGS will be able to tax PL citizens for revenue or tax imports at PL ports anytime soon. Grants are already drying up and loans are not a sustainable solution. The money needs to come from somewhere. 45% of proceeds tricking down to FMS in one way or another through offshore is still a pretty penny once costs are recouped (if we actually have oil in the first place).

 

[DR OSMAN]

I think the entire premise where some natural resources are nationalized while others are not is untenable. Hydrocarbons & fisheries are nationalized while agricultural land is not.

This is a policy choice. If Puntland will have to pay other FMS a portion of the revenues from its fisheries, other FMS should give Puntland usufruct rights over some agricultural land so it can grow fruits and vegetables for its own consumption.

If this is unacceptable, then let us be like the US where each state enjoys its hydrocarbons, fisheries and agricultural land on its own.

Never understood why the south don't share their farms but want to eat our oil and gold and Fishery on the grounds of national resources? again their not to blame, our leaders are. U don't need foreign or other clan enemies when your political elite can do far much damage.

What's sad is the locals eyes r wide open for foreign or other clans but ignore the internal enemy, sad really. Every wise leader implements recioprocal policies(tit for tat).

 

[Thegoodshepherd]

I don’t agree with fisheries being nationalized, but it makes sense to an extent. The borders of a state only exist on land, hence why agriculture is left to the purview of states. However, the sea belongs to the Somali people regardless of if they are from Bari or from Gedo. Despite this philosophical line of reasoning, I don’t agree with fisheries being nationalized. That should obviously be left to the states. It’s no different to agriculture imo.

Also, pragmatically speaking, it is unlikely that the FGS will be able to tax PL citizens for revenue or tax imports at PL ports anytime soon. Grants are already drying up and loans are not a sustainable solution. The money needs to come from somewhere. 45% of proceeds tricking down to FMS in one way or another through offshore is still a pretty penny once costs are recouped (if we actually have oil in the first place).

I think the closer our federalism is to the US model, the better & more sustainable it will be. Limiting the scope of the federal gov to a handful of indispensable functions means that it will be able to focus and improve. Having the federal government be involved in every sector of life renders federalism pointless.

The federal gov should not care about Puntland fisheries, it should worry about building a naval force capable of protecting Somalia's EEZ. Leave the regulation and taxation of fisheries to Puntland. In return Puntland funds that function by putting funds into the common pool.

Puntland has no problem with sending money to the FGS to fund national public goods that it benefits from.

 

[DR OSMAN]

@AlteKartel

Southern farms are private resource(tiisa waa uu gaar) while your oil, minerals, and Fishery waa hanti qaran(a national resource for all)

U wonder why Somalis don't get along

 

[DR OSMAN]

@Thegoodshepherd

PL has a decade before oil market is replaced or greatly reduced thru mixed energy resources(nuclear, solar, wind, hydro? I don't see much forward thinking and our descendants will look back at our poor planning.

We must not hold onto a dying or declining industry and begins the reforms now to develop human capital as our major economic resource.

 

[DR OSMAN]

@Thegoodshepherd

I am deep in study on Rwanda and Singapore and looking for the strokes used by genius visionaries while cursed with no national resource to develop. I'll report my findings and summaries after a few months.

Our location on the gulf is definitely a strategic location but we can't rely on location blessings either. Definitely will study ways to tap into what location blessed countries did but we need more lifelines(diverse as possible) in case one collapses.

 

[Thegoodshepherd]

Never understood why the south don't share their farms but want to eat our oil and gold and Fishery on the grounds of national resources? again their not to blame, our leaders are. U don't need foreign or other clan enemies when your political elite can do far much damage.

What's sad is the locals eyes r wide open for foreign or other clans but ignore the internal enemy, sad really. Every wise leader implements recioprocal policies(tit for tat).

Puntland's most serious enemies are all internal. All of Puntland's external enemies can be handled by 400 men on 40 technicals. It is the internal enemies that are truly cancerous and who must be cut out with a hot knife.

 

[AlteKartel]

I think the closer our federalism is to the US model, the better & more sustainable it will be. Limiting the scope of the federal gov to a handful of indispensable functions means that it will be able to focus and improve. Having the federal government be involved in every sector of life renders federalism pointless.

The federal gov should not care about Puntland fisheries, it should worry about building a naval force capable of protecting Somalia's EEZ. Leave the regulation and taxation of fisheries to Puntland. In return Puntland funds that function by putting funds into the common pool.

Puntland has no problem with sending money to the FGS to fund national public goods that it benefits from.

The US Federal Gov. taxes all citizens across the country at vastly higher rates than any state and redistributes as it sees fit. States may be the ones who deliver the services but it is the federal government that controls much of the purse strings, especially for larger projects. That leads to there being states which contribute more to the government than they get back. Governance is both give and take, one can’t exist without the other.

 

[AlteKartel]

@AlteKartel

Southern farms are private resource(tiisa waa uu gaar) while your oil, minerals, and Fishery waa hanti qaran(a national resource for all)

U wonder why Somalis don't get along

Comparing agriculture and oil is disingenuous. They’re in different tiers when it comes to potential for wealth creation, especially in an impoverished country like Somalia. For the record, if PL wants to mine for gold I think they should be able to keep the vast majority of it (90%+). Same with fisheries. Hydrocarbons are inherently different imo and require a different approach, especially offshore oil where basins can cross across states “borders”. It makes sense for the FGS to play a role in managing that.

 

[Thegoodshepherd]

The US Federal Gov. taxes all citizens across the country at vastly higher rates than any state and redistributes as it sees fit. States may be the ones who deliver the services but it is the federal government that controls much of the purse strings, especially for larger projects. That leads to there being states which contribute more to the government than they get back. Governance is both give and take, one can’t exist without the other.

I don't think Somalia should do inter-state redistribution. I want to remove that argument from political discussion. Every state puts in a set amount based on its population and gets back services of equal value.

I also believe that the FGS must publish a clan census of all of its employees so that the FGS is not a jobs program for clans living in the capital like it is now. he FGS should hold exams for civil servants so that hiring is based on merit, much like China or India.

I want to limit to the bare minimum the benefits Banaadir derives from having the FGS situated there, reducing the positive externalities of having the FGS to the minimum.

I want the FGS to be as close as is possible to a Night-watchman state with all of the citizen facing functions handled by the FMS.