Puntland Economic Dilemma

[DR OSMAN]

How are we going to address the rural/city GDP per capita difference? This is a very big dilemma for economic planning. City folks should always outstrip their rural counterparts in production level but this is far from the truth.

Lets assume 1 rural family owes 100 camels, 500 goats, 200 sheeps. We can put a price on that. Let's say 200k in assets. Lifetime of the asset is 40 years per camel. That's a long-lasting asset unlike FISH which is gone after 1 year even with assistance from refrigeration and agriculture your talking months before it rots away. Not long lasting assets.

How long does rural family take to grow their asset? If the base point is 100 camels, 500 goats, 200 sheeps for the average rural family. It's estimated a Camel has 1 child per camel a year. They just doubled their camel count to 200. So their growth rate is 100 camels each year. You would need the equivalent of city jobs being 100k a year for crying out loud just to match the living standards of the rural family.

I am very concerned for PL investment ideas because if you create a cities that are poorer then it's rural counterpart, most Puntlanders will return just to participate in the rural economy, just like you see now with some doing the fishing industry, but I myself would prefer to straight to rearing Camels if it gives me 100k job for doing basically not much. There is not much down costs involved other then immunisation checks and providing it water and grass land.

I will probably be the first in PL to begin the idea of Camel farming. But I am also interested in joining that mineral industry in Sanaag. I want to stock up in 'assets' that last a long time and then diversify it so I leave my kids something to start off in life like my 'awoowe' did for me.

 

[DR OSMAN]

Unless PL implements big money industries in the cities, our city to rural ratio will actually de-convert back to rural and the cities will be left empty. I see this happening a-lot in the west where white people just go back to the country side cause the city living is no longer supporting them to have a nest egg. Their going back to their roots of leaving behind a farm for their children.

 

[DR OSMAN]

It seemed like Puntlander settled not completely but a good portion did. I would say 30% decided settling was better, but why? your supposed to do better off rurally not wait for 100 dollars overseas or NGO. It's like they became poorer by settling which is not how it should be at all. Your supposed to be enticed to go the city and get richer not poorer which is the case now. No-one talks about this at all, which is quite a tragedy wallahi.

We need to plan and phase settlements, tell people not to bother settling until a city household reflects more then a rural households wealth. Tell those who settled to go raise camels again rather then waiting for 30k a year job. U will make 100k a year just raising camels. Camels should be your long-term asset. U need to teach these people how to create wealth. You have long-term assets that do not change in price like gold, diamonds, livestock. This is hard currency that will speak for centuries. Then you have medium risk investment like properties which depends on the economics of the city and services available. Then you have quick gain investments like fishing which u need to sell quickly before it rots away, working at jobs is quick gain income to keep surviving, business trading is quick gain industries, their not long term assets.

The goal of anyone should be is to switch their savings into long term assets

 

[DR OSMAN]

It is well known in economic planning of a nation. You never import the high price commodities from outside but only import the cheapest final product they have. In other words the daruri and agriculture items you let the poor nations work on that while you keep the big priced items INTERNAL to your nation. PL must follow this model. The following industries must never be imported.

1. Furniture of any kind. Even one seat can run up to 150 dollars per seat. One table can cost $200 dollars. Beds are so expensive. I am surprised we don't have carpentry schools all over PL.
2. Boat making. A single boat costs 500 dollars. This must stay internal
3. Property sector should never be outsourced to a foreign company. This is a big final product also.
4. Gym Equipments

We should target these following industries for PL or find partners to assist us grow these sectors.

1. Medicine sector. Expensive final product
2. Technology(phone, tv, radio, pc, laptops, servers). This is a very expensive final product
3. Consulting services irrespective of industry. They make a-lot of money providing advice for any industries.
4. Mining(rare earth metals)
5. Oil
6. Tourism
7. Banking sector(bring foreign investors and local investors) to begin a banking system so ppl can lend to the locals to encourage start ups so our service sector can grow.

Modernize our ancient industries so the time/effort is less while the reward keeps growing.

1. Fishing industy
2. Livestock
3. Frankincense

That is my pillar for PL economic model. I can measure the GDP growth will be massive each year, your talking 100% growth rates and more not 8% lol that's daruri stuff. Every president of PL should focus on at least one sector inu abuuro, ka bacdi tartib loogu daro. At least we heading the right path now. We need an overall government policy irrespective of president what our economic pillars are for the state. Noone can change it but just CONTRIBUTE IT. Similar to our infrastructure policy, it's never changed from president to president. We need the same for economic policy.