Thursday, August 26, 2010 - 2:11 PM
Want evidence that the government in Somalia -- a country that tops the 2010 Failed States Index -- needs desperate help? Allow me to show you the money. Literally.
According to the Annual Financial Report released by the office of the Prime Minister today, Somalia's budget in the fiscal year 2009 was just over $11 million. (The budget of Minneapolis Minnesota, by contrast, is $1.4 billion.) The two largest sources of revenue collected were customs duties from the main Mogadishu port ($6.2 million) and exit fees from the airport ($351,920). Taxes couldn't be collected due to security. The government recieved $2.875 million in bilateral aid -- the largest total, $1.6 million coming from Libya (the United States gave just $25,000 -- about the equivalent of a very entry-level staffer's annual income.)
Bad. News. But where the situation really comes home is in the line items: While $9.8 million of the country's $11 million was spent on salaries and wages, they are hardly anything to write home about. The president's chief of staff earns $2,250 a year. The governor of the central bank earns $1,000. And $325,000 of the $501,000 that covers the Prime Minister and President's offices goes to travel. Wages in the military and other defense roles account for $6 million (The Economist recently estimated that it costs $1 million to keep one U.S. soldier in Afghanistan for a year.)
Of course, there are other ways that the government is getting help -- ways that won't show up on a budget like this: African Union peacekeepers, for example, and U.S. training programs for their soldiers in Uganda. But still, this is pretty incredible stuff. Even Liberia had a budget of $80 million to work with after its civil war. And it wasn't actively trying fight an insurgency.
Meanwhile, Islamist militant group al Shabab is, I'm gonna guess, far better resourced (alas, I can't confirm this one since rebel groups don't put out financial statements -- props to Somalia's PM.)
The result is literally deadly. Which raises a frustration that the Somali government undoubtedly has: the international community helped put together this experiment in government, but there's less buck behind making it work. Not that this is easy; corruption is rumored rampant among government staff. Then again, you would have to pay me a lot more than $1,000 to be the central banker of Somalia... Not saying it justifies corruption, but it's also no Madoff affair.
Ahem, for context -- Somalia's $11 million budget is ....
- 20 times smaller than the 2010 budget of Topeka, Kansas
- A mere 1/2 of Derek Jeter's 2010 salary
- 890 times smaller than Starbucks' 2009 annual revenue
- About equal to the budget of "High School Musical 3"
- About equal to the amount that the Scottsdale, Arizona school district had to cut from its budget this year.
- But good news -- you could start between two and three franchises of the Hard Rock Cafe with that amount!
The photo of place and the currency shown in this article are from Somaliland and not from Somalia.
Please not Somaliland a has a functioning democracy and is not part of Somalia .
The photo of the place and the currency shown in this article are from Somaliland and not from Somalia.
Please not that Somaliland a has a functioning democracy and is not part of Somalia .
As MEDESHI said, all of the banknotes depicted in that photo are Somaliland shillings, and the photo looks like it was taken in the main market in central Hargeisa. Furthermore, the photo includes bricks of 100 Somaliland shilling notes, which are not presently in common usage, since 100 Somaliland shillings are worth roughly six US cents today. I'm guessing this photo, in addition to depicting a stable, autonomous and democratic region, is also quite out of date.
For reference, in May 2010 the Somaliland House of Representatives approved a $51 million dollar budget. While this is a tiny sum as well, it is five times the size of the Somali budget, and has been accomplished with essentially zero international support or recognition.
typical reporters, no checking of facts.
if foreignpolicy.com cant even get the photo right how do we know they got the numbers right?
Somaliland should be reported as it own country.
Calm down about the photo, it was a mistake and they admitted it. On Somaliland, that might have something to do with the fact that it isn't generally recognized as a nation state.
I note that we're comparing Somalia's budget to that of the United States. That is hardly the best comparison to make and makes about as much sense as comparing China's to the U.S. Things are much more expensive in the U.S and the country is much wealthier. I'm not denying that Somalia is in bad shape, just that it would make much more sense to compare Somalia to other African nations such as the DR of the Congo or Ethiopia.
The "government" of somalia has influence over less than half of mogadishu. So it is fitting that they have this small budget. Can you please provide per capita information? (and also what do people under this regime are actually getting)
How much does it cost to run a failed state?
Your article certainly puts things into perspective. Not that the Somaili government has any power, but still.
Now this is piece that obviously took a great deal of time to figure out and put together.
It is amazing how much less it takes to run that country and yet the money doesn't seem to be there.
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