Puntland has around an estimated 2 billion GDP. Per capita for a population of 4 million that is quite low and at $500-600 per person yearly. How do we improve this? What level of GDP do we want to reach? Let's cover the areas of GDP that is lifeline
1. Products
2. Goods
3. Services
4. Construction
5. Agriculture/Fishery/Livestock/Frankincense
6. Tourism
The only GDP that is active in Puntland right now is Agriculture/Fishery/Livestock and imported products/goods.
By implementing a bank and having investors involved, we could aim for 'two things'? Increase purchasing of cars and home ownership. Per person a 5k vehicle and 50k home x 50000 per year of residential construction will lead to an increase of 2.5 billion just for the housing industry. Imagine that a stable 2.5 billion each year added to our GDP just thru a govt policy that 'regulates' companies to abide the PL worker laws so we can see thru this housing and vehicle ownership vision.
Just thru purchasing vehicles worth $5000 x 50000 people each year will give us a nice $250 million goods added to our economy. The two largest 'products' in any economy is 'vehicle/home' and without having a govt interfere in the market place and set down laws to ensure this is achieved, our GDP will never be realized.
How can we do this? well this requires 'investors' there is no doubt. Especially local/diaspora/foreign who are told to invest into industries that PL sees good potential 'mass employment' because the 'key' is employment and with employment what can come is a eventually 'bank loan' and thru a bank loan comes 'property' purchase and through this you now have a 'booming construction industry' that will also generate more work for engineers/labourers/electricians/plumbers so our 'service industry' automatically gets a nice 'boost' without doing much.
Not to mention furniture companies increasing products as new homes new furniture. TVS will also be another company to benefit from home ownership economic policy by puntland. Same with Electricity/Water companies will continously expand with a housing vision economy which means more jobs
If we can add 2.5 billion a year to our GDP just thru house purchasing and 250 million thru vehicle purchases from a pool of 50,000 newly 'employed' puntites each year, this a great start and we can 'gradually' increase the 'housing target' as we find more industries that gives mass employment. The service sector is a quite important one. We should encourage our locals who are not interested in studying to become 'business owners' and provide them with business training especially around the 'restaurants, cafe, shops, etc' and then tell them to 'secure loans' from the bank to begin the business.
This sector could also return nice 'GDP' returns especially if the market is starting to have more 'workers' which also means more 'spending'. The service sector usually grows as a response to a growing working market and thus employees having an income is paramount and thus finding industries to employ workers first should be our first goal.
The thing to note is if you do not have a govt intervention on 'salaries' it will be hard to create service industries as the workers will not use them due to lack of money so you could potentially be losing a 'large' sector of prospective business owners and mass employment of locals if something isn't done about GOVT intervention into the market place.
So yes the service sector compliments a 'working economy' but it isn't the 'root' of the economy rather it's the 'side'.
We already do livestock/fishery/farming, we need to 'increase production' by cutting down on 'time' here thru the use of 'machinery'. The manual method is just pathetic, we should only allocate puntites to this job who are not the 'brightest' in the land so at least they are being 'productive' and producing something even though it's not going to add to our 'gdp' sector very much as the 'product' itself is not an expensive item and therefore it's value ratio to GDP will not be like a house or car or any of that. If anything 'fishery/livestock' are good 'gdp drivers' but 'agriculture' isn't unfortunately.
Tourism is self explanatory as to the benefit to the economy, you bring in more people, you create more 'demand' for your markets and therefore more production and over-all more jobs start to develop. This is an important industry in it's own right. A-lot of Somalis think GDP means 'factories' and selling overseas, well u can do that but u also have a world-wide market to compete with. Where-as an internal focused economy has the benefit of 'restricting' world wide competitors and only bringing in 'investors' on a need to need basis when diaspora/local cannot create jobs.
Oil/Mining is ok but it won't create 'mass employment' the govt will get wealthy though due to the 50/50 revenue sharing ratios but unless the govt knows what to do with those revenues and where to inject it to create more industries, it's not going to be beneficial. It may lead to a few rich who are in the govt and possibly top 1% of elites however as we spoken about that before u can't create an economy thru 1% of the population, 80% of the population is where the economy created not from the lowest 10% nor the highest 10% but the ones who sit in the 'middle' of that is the 'engine' of a market place and what creates jobs eventually.
1. Products
2. Goods
3. Services
4. Construction
5. Agriculture/Fishery/Livestock/Frankincense
6. Tourism
The only GDP that is active in Puntland right now is Agriculture/Fishery/Livestock and imported products/goods.
By implementing a bank and having investors involved, we could aim for 'two things'? Increase purchasing of cars and home ownership. Per person a 5k vehicle and 50k home x 50000 per year of residential construction will lead to an increase of 2.5 billion just for the housing industry. Imagine that a stable 2.5 billion each year added to our GDP just thru a govt policy that 'regulates' companies to abide the PL worker laws so we can see thru this housing and vehicle ownership vision.
Just thru purchasing vehicles worth $5000 x 50000 people each year will give us a nice $250 million goods added to our economy. The two largest 'products' in any economy is 'vehicle/home' and without having a govt interfere in the market place and set down laws to ensure this is achieved, our GDP will never be realized.
How can we do this? well this requires 'investors' there is no doubt. Especially local/diaspora/foreign who are told to invest into industries that PL sees good potential 'mass employment' because the 'key' is employment and with employment what can come is a eventually 'bank loan' and thru a bank loan comes 'property' purchase and through this you now have a 'booming construction industry' that will also generate more work for engineers/labourers/electricians/plumbers so our 'service industry' automatically gets a nice 'boost' without doing much.
Not to mention furniture companies increasing products as new homes new furniture. TVS will also be another company to benefit from home ownership economic policy by puntland. Same with Electricity/Water companies will continously expand with a housing vision economy which means more jobs
If we can add 2.5 billion a year to our GDP just thru house purchasing and 250 million thru vehicle purchases from a pool of 50,000 newly 'employed' puntites each year, this a great start and we can 'gradually' increase the 'housing target' as we find more industries that gives mass employment. The service sector is a quite important one. We should encourage our locals who are not interested in studying to become 'business owners' and provide them with business training especially around the 'restaurants, cafe, shops, etc' and then tell them to 'secure loans' from the bank to begin the business.
This sector could also return nice 'GDP' returns especially if the market is starting to have more 'workers' which also means more 'spending'. The service sector usually grows as a response to a growing working market and thus employees having an income is paramount and thus finding industries to employ workers first should be our first goal.
The thing to note is if you do not have a govt intervention on 'salaries' it will be hard to create service industries as the workers will not use them due to lack of money so you could potentially be losing a 'large' sector of prospective business owners and mass employment of locals if something isn't done about GOVT intervention into the market place.
So yes the service sector compliments a 'working economy' but it isn't the 'root' of the economy rather it's the 'side'.
We already do livestock/fishery/farming, we need to 'increase production' by cutting down on 'time' here thru the use of 'machinery'. The manual method is just pathetic, we should only allocate puntites to this job who are not the 'brightest' in the land so at least they are being 'productive' and producing something even though it's not going to add to our 'gdp' sector very much as the 'product' itself is not an expensive item and therefore it's value ratio to GDP will not be like a house or car or any of that. If anything 'fishery/livestock' are good 'gdp drivers' but 'agriculture' isn't unfortunately.
Tourism is self explanatory as to the benefit to the economy, you bring in more people, you create more 'demand' for your markets and therefore more production and over-all more jobs start to develop. This is an important industry in it's own right. A-lot of Somalis think GDP means 'factories' and selling overseas, well u can do that but u also have a world-wide market to compete with. Where-as an internal focused economy has the benefit of 'restricting' world wide competitors and only bringing in 'investors' on a need to need basis when diaspora/local cannot create jobs.
Oil/Mining is ok but it won't create 'mass employment' the govt will get wealthy though due to the 50/50 revenue sharing ratios but unless the govt knows what to do with those revenues and where to inject it to create more industries, it's not going to be beneficial. It may lead to a few rich who are in the govt and possibly top 1% of elites however as we spoken about that before u can't create an economy thru 1% of the population, 80% of the population is where the economy created not from the lowest 10% nor the highest 10% but the ones who sit in the 'middle' of that is the 'engine' of a market place and what creates jobs eventually.
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