One must be financially literate in discussing these matters.
Pretentious.
The idea is to incubate sense in your debt-hooked mind esp. where you come across as if unaware of the perils of debt and loan sharks. In your hasty sprint, you are no different from an addict, in failing to grasp the perils of debt, and subsequently defaulting in repayments.
Somalia defaulted because of a prolonged war, which erased its financial institutions, majority of the debt was accumulated during that period. It’s not comparable to being an addict, because this debt is a legacy from the 1980s, there is a 40+ year gap between the issuance of those loans and the situation of today.
It would be like a person taking out loans as a 25 year old to buy a house, falling into a coma and waking up years later with a mountain of debt to pay off, all of which thankfully is erased by the banks in question due to the person’s special circumstances and who have decided not to foreclose. No organisation, institute or rehab clinic would characterise this individual as being an addict.
However, that same person’s house during those same comatose years fell into ruins, and needs to be restored to increase its value, but you want to sell us the idea that this person could do all of that without financial support? When I asked you what the person could do instead, you deflected with pretentious financial waffle instead of delivering on the question head on.
Could you afford to pay 8 million dollars a month on a loan, which is not generating revenue to even cover the costs of carrying the loan? No, you could not, yet you are so blinded by your addiction you could not possibly see the improbability of your becoming beholden to rogue lending houses.
There are plenty of avenues the current government is actively working on to expand their tax-base. You actually believe that $8 million a month is out of Somalia’s capacity, when the current government is collecting more than that on a monthly basis from a single city like Mogadishu? A military expansion to other regions with multiple cities and ports, would increase this figure multifold, therefore increasing the funding for that same military is a great ROI.
Not to mention this same military spends it monthly salary on domestic goods and services, therefore the money returns to the Somali economy, which in turn the government steadily seeks to tax on a greater scale.
A Win, Win, Win situation if I ever saw one.
Bear in mind, a factor, which further stagnates economic growth of struggling nations is conditions and demands attached to loans by rogue agents/nations, who force poor nations addicted to debt just like a junkie is to his drugs supplier.
This is more fear mongering.
Opinions must be grounded in veracity, and not in fanciful figments. It was to further demonstrate knowledge of the subject you so passionately speak of is required, and to underscore the dangers surrounding forming opinions in vacuum in facts-free world.
- First of all, the figure you originally stated as being the Somali budget was 1/3th of what it actually is, yet you claim to be a champion of facts, unless you want to rehash it as an opinion?
- Year on year the government budget has grown bigger with the percentage of domestic collection increasing steadily, a fact.
- Fiscal programs spanning two different administrations have demonstrated sound economic reforms on the part of Somali financial institutions allowing Somalia to eventually reach the critical Decision Point and the erasure of all of its legacy debt dating from the 1980s.
- Post-HIIPC debt management protocols to make future loans sustainable and manageable are already in the works for a post-debt relief Somalia, which is something a new government in the 1990s would have been doing if one was actually formed during that time-period. Thankfully there is a system in place today that can oversee such a program to increase Somalia’s debt carrying capacity and threshold on an annual basis.
- Despite several multimillion dollar credit injections by global finance institutions, you demonised, Somalia’s economy continues to grow, with the only shocks coming from climate and conflict related issues.
- The salary of the Armed Forces has doubled and troop numbers continue to rise with more training and recruitment.
None of the above facts are my personal fanciful figments of my imagination, that’s clear cut progress. These doomsday hypotheticals about loansharks, junkies and my supposed illiteracy in financials are just neat deflections to hide that you have no actual alternative approach to the matter.
If you did, you would be joining the Federal government or a regional admin to disburse this grand wealth of financial literacy, seeing as you consider yourself to be above the current Somali economists and financial institutions that are actually delivering on their promise to get Somalia’s debt erased.
Oh I did answer, but you probably failed to see it.
Sure, just like that Pink elephant that flew past my window.
…tik…tok….tik….tok
