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Oil Resource Governance in Somalia: Are they Susceptible to the Resource Curse?

Author

Listed:
  • Ahali, Aaron Yao Efui
  • Ackah, Ishmael
Abstract
In many developing countries, natural resources such as oil and gas have had negative impact on economic development. There is a myriad of literature on “the resource curse” which shows an austere relationship: countries endowed with huge deposits of oil and gas usually experience lower economic growth than countries that do not have these resources. As a modern ‘frontier region’ Somalia is one of the most promising countries blessed with oil and gas in the Eastern part of Africa. However, it is faced with political upheavals, weak state structures, physical insecurity, and property rights full of ambiguities; this makes it a challenge to exploit the country of its hydrocarbons. In addition to the present tense conditions within the region, the question that lingers, is whether or not Somalia is set to struggle with the common effect of the ‘resource curse’ and paradox of plenty disorder? Somalia was selected because it provides an ideal laboratory to ascertain if she is predisposed to the ‘resources curse’ disease. To this end, the study examines and also outlines the primary themes that guide the work using the case of Somalia as an addition to the body of empirical knowledge. The study recommends that new governance structures should be built, existing ones should be built, local content and local participation should be enhanced and the security and judicial agencies should be supported.

Suggested Citation

  • Ahali, Aaron Yao Efui & Ackah, Ishmael, 2014. "Oil Resource Governance in Somalia: Are they Susceptible to the Resource Curse?," MPRA Paper 61211, University Library of Munich, Germany, revised 10 Jan 2015.
    • Handle: RePEc:pra:mprapa:61211
    as

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    File URL: https://mpra.ub.uni-muenchen.de/61211/2/MPRA_paper_61211.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Somalia; Resource Curse; Resource Rents; Oil; Governance.;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

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