WorldRemitAds

CONCLUSION

The political resource curse is not inevitable. Yet, Somaliland is at significant risk of encountering adverse resource curse effects and it is vulnerable to those effects even before commercially significant quantities of oil are produced. Oil to cash cannot be a one size fits all policy. Somaliland does, however, already possess many of the prerequisites needed for such a program including biometric identification and mobile or electronic payment infrastructure. Beyond that, oil to cash is well suited to the ‘multiple and complex specifics’ of Somaliland, including its status as an unrecognized de facto state. The potential direct and indirect benefits of an oil to cash program in Somaliland are of a disproportionately greater magnitude than the limited attention the idea has so far received both in Somaliland’s democratic political debate and in the academic literature on oil in Somalia. This article outlined one version of what an oil to cash program in Somaliland might look like. There are countless different permutations possible. It is high time for the debate on oil to cash in Somaliland to commence.

Footnotes

SomlegalAds

I would like to thank the editors and, especially, two anonymous reviewers for their many helpful comments on an earlier version of this article. Thanks also to the IU School of Liberal Arts at IUPUI for sabbatical funding and to everyone who discussed these ideas with me in Somaliland, only some of whom are cited here.

References

Alexeev, M. & Conrad, R.. 2009. ‘The elusive curse of oil’, Review of Economics and Statistics, 91, 3: 586–98. CrossRef Google Scholar

Asunka, J. 2017. ‘Non-discretionary resource allocation as political investment: evidence from Ghana’, Journal of Modern African Studies 55, 1: 29–53. CrossRef Google Scholar

Balthasar, D. 2014. Oil in Somalia: adding fuel to the fire? Mogadishu: Heritage Institute for Policy Studies. Google Scholar

Birdsall, N. & Subramanian, A.. 2004. ‘Saving Iraq from its oil’, Foreign Affairs 83, 4: 77–89. CrossRef Google Scholar

BP. 2017. BP statistical review of world energy 2017. <http://www.bp.co//loba/orporat/nergy-economic/tatistical-review-of-world-energy.html>, accessed 9.2017.,+accessed+21.9.2017.> Google Scholar

Bradbury, M. 2008. Becoming Somaliland. Bloomington, IN: Indiana University Press. Google Scholar

Brooks, S.M. & Kurtz, M.J.. 2016. ‘Oil and democracy: endogenous natural resources and the political “resource curse”’, International Organization 70, 2: 279–311. CrossRef Google Scholar

Brunnschweiler, C.N. & Bulte, E.H.. 2008. ‘Linking natural resources to slow growth and more conflict’, Science 320: 616–17. CrossRef Google Scholar PubMed

Caspersen, N. 2012. Unrecognized States: the struggle for sovereignty in the modern international system. Cambridge: Polity Press. CrossRef Google Scholar

Colgan, J.D. 2013. ‘Fueling the fire: pathways from oil to war’, International Security 38, 2: 147–80. CrossRef Google Scholar

Collier, P. & Hoeffler, A.. 1998. ‘On economic causes of civil war’, Oxford Economic Papers 50: 563–73. CrossRef Google Scholar

de Waal, A. 2015. The Real Politics of the Horn of Africa: money, war and the business of power. Cambridge: Polity Press. Google Scholar

Diamond, L. & Mosbacher, J.. 2013. ‘Petroleum to the people: Africa’s coming resource curse – and how to avoid it’, Foreign Affairs 92, 5: 86–98. Google Scholar

Esso Chad. 2017. Chad/Cameroon Development Project, Project Update No. 37, 2016 year-end report. N’Djamena: Esso Exploration and Production Chad, Inc. <http://cdn.exxonmobil.co//medi/loba/ile/had-cameroo/had_cameroon_project_update_37_ye2016_rpt_english.pdf>, accessed 20.10.2017.,+accessed+20.10.2017.> Google Scholar

Eubank, N. 2012. ‘Taxation, political accountability and foreign aid: lessons from Somaliland’, Journal of Development Studies 48, 4: 465–80. CrossRef Google Scholar

Frynas, J.G., Wood, G. & Hinks, T.. 2017. ‘The resource curse without natural resources: expectations of resource booms and their impact’, African Affairs 116, 63: 233–60. Google Scholar

Genel Energy. 2017. Genel Energy Annual Reports and Accounts 2016. <http://www.genelenergy.co/edi/05/enel-energy-2016-annual-report-final.pdf>, accessed 29.9.2017.,+accessed+29.9.2017.>Google Scholar

Ghana Extractive Industries Transparency Initiative (GHEITI). 2015. Final GHEITI Report on the Oil/Gas Sector – 2014. <https://eiti.or/ite/efaul/ile/igrated_file/heiti_2014_oil_gas_report.pdf>, accessed 14.10.2017.,+accessed+14.10.2017.> Google Scholar

Gillies, A. 2010. ‘Reputational concerns and the emergence of oil sector transparency as an international norm’, International Studies Quarterly 54, 1: 103–26. CrossRef Google Scholar

Glaser, C.L. 2013. ‘How oil influences U.S. national security’, International Security 38, 2: 112–146. CrossRef Google Scholar

Haber, S. & Menaldo, V.. 2011. ‘Do natural resources fuel authoritarianism? A reappraisal of the resource curse’, American Political Science Review 105, 1: 1–26. CrossRef Google Scholar

Hilson, G. & Maconachie, R.. 2009. ‘“Good governance” and the extractive industries in sub-Saharan Africa’, Mineral Processing and Extractive Metallurgical Review, 30, 1: 52–100. CrossRef Google Scholar

Hoehne, M.V. 2013. ‘Limits of hybrid political orders: the case of Somaliland’, Journal of Eastern African Studies 7, 2: 199–217. CrossRef Google Scholar

Höhne, M.V. 2008. ‘Newspapers in Hargeysa: freedom of speech in post-conflict Somaliland’, Afrika Spectrum 43, 1: 91–113. Google Scholar

Iwilade, A. 2014. ‘Networks of violence and becoming: youth and the politics of patronage in Nigeria’s oil-rich Delta’, Journal of Modern African Studies 52, 4: 571–95. CrossRef Google Scholar

Jensen, N. & Wantchekon, L.. 2004. ‘Resource wealth and political regimes in Africa’, Comparative Political Studies 37, 7: 816–41. CrossRef Google Scholar

Karl, T.L. 1999. ‘The perils of the petro-state: reflections on the paradox of plenty’, Journal of International Affairs 53, 1: 31–48. Google Scholar

Kolstad, I. & Wiig, A.. 2009. ‘Is transparency the key to reducing corruption in resource-rich countries?’ World Development 37, 3: 521–32. CrossRef Google Scholar

Kopinksi, D., Polus, A. & Tycholiz, W.. 2013. ‘Resource curse or resource disease? Oil in Ghana’, African Affairs 112, 449: 583–601. Google Scholar

Le Billon, P. 2001. ‘Angola’s political economy of war: the role of oil and diamonds, 1975–2000’, African Affairs 100, 398: 55–80. CrossRef Google Scholar

Leite, C. & Weidmann, J.. 1999. Does Mother Nature Corrupt? Natural resources, corruption, and economic growth. IMF Working Paper WP/99/85. Washington, DC: International Monetary Fund. CrossRef Google Scholar

Lujala, P. 2010. ‘The spoils of nature: armed civil conflict and rebel access to natural resources’, Journal of Peace Research 47, 1: 15–28. CrossRef Google Scholar

Mehlum, H., Moene, K. & Torvik, R.. 2006. ‘Institutions and the resource curse’, Economic Journal 116, 508: 1–20. CrossRef Google Scholar

Menkhaus, K. 2014. ‘State failure, state building, and prospects for a “functional failed state” in Somalia’, Annals of the American Academy of Political and Social Science 656, 1: 154–72. CrossRef Google Scholar

Morrison, K.M. 2009. ‘Oil, nontax revenue, and the redistributional foundations of regime stability’, International Organization 63, 1: 107–38. CrossRef Google Scholar

Morrison, K.M. 2013. ‘Whither the Resource Curse?’ Perspectives on Politics 11, 4: 1117–25. CrossRef Google Scholar

Moss, T., Lambert, C. & Majerowicz, S.. 2015. Oil to Cash: fighting the resource curse through cash transfers. Washington, DC: Center for Global Development. Google Scholar

Ó Beacháin, D., Comai, G. & Tsurtsumia-Zurabashvili, A.. 2016. ‘The secret lives of unrecognized states: internal dynamics, external relations, and counter-recognition strategies’, Small Wars and Insurgencies 27, 3: 440–66. CrossRef Google Scholar

Paine, J. 2016. ‘Rethinking the conflict “resource curse”: how oil wealth prevents center-seeking civil wars’, International Organization 70, 4: 727–61. CrossRef Google Scholar

Pegg, S. 1998. International Society and the De Facto State. Aldershot: Ashgate. Google Scholar

Pegg, S. 2006. ‘Can policy intervention beat the resource curse? evidence from the Chad-Cameroon pipeline project,” African Affairs 105, 418: 1–25. CrossRef Google Scholar

Pegg, S. & Walls, M.. 2018. ‘Back on track? Somaliland after its 2017 presidential election’, African Affairs 117, 467: 326–37. CrossRef Google Scholar

Phillips, S.G. 2016. ‘When less was more: external assistance and the political settlement in Somaliland’, International Affairs 92, 3: 629–45. CrossRef Google Scholar

Piccolino, G. 2015. ‘Does democratization foster effective taxation? evidence from Benin’, Journal of Modern African Studies 53, 4: 557–81. CrossRef Google Scholar

Posner, D.N. & Young, D.J.. 2007. ‘The institutionalization of political power in Africa’, Journal of Democracy 18, 3: 126–40. CrossRef Google Scholar

Ramsay, K.W. 2011. ‘Revisiting the resource curse: natural disasters, the price of oil, and democracy’, International Organization 65, 3: 507–29. CrossRef Google Scholar

Reitano, T. & Shaw, M.. 2013. ‘Briefing: peace, politics and petroleum in Somalia’, African Affairs 112, 449: 666–75. CrossRef Google Scholar

Richards, R. 2014. Understanding Statebuilding: traditional governance and the modern state in Somaliland. Farnham: Ashgate. Google Scholar

Ross, M.L. 2001. ‘Does oil hinder democracy?’, World Politics 53, 3: 325–61. CrossRef Google Scholar

Ross, M.L. 2015. ‘What have we learned about the resource curse?’ Annual Review of Political Science 18: 239–59. CrossRef Google Scholar

Sala-i-Martin, X. & Subramanian, A.. 2003. Addressing the natural resource curse: an illustration from Nigeria. Working Paper WP/03/139. Washington, DC: International Monetary Fund. CrossRef Google Scholar

Schueller, M-L. & Walls, M.. 2017. Report by International Observers on the 2016 Voter Registration Process. London: Progressio. Google Scholar

Shaxson, N. 2007. ‘Oil, corruption and the resource curse’, International Affairs 83, 6: 1123–40. CrossRef Google Scholar

Smith, B. 2007. Hard Times in the Lands of Plenty: oil politics in Iran and Indonesia. Ithaca, NY: Cornell University Press. Google Scholar

Soares de Oliveira, R. 2007. Oil and Politics in the Gulf of Guinea. New York, NY: Columbia University Press. Google Scholar

Stremlau, N. 2013. ‘Hostages of peace: the politics of radio liberalization in Somaliland’, Journal of Eastern African Studies 7, 2: 239–57. CrossRef Google Scholar

Stremlau, N. & Osman, R.. 2015. ‘Courts, clans and companies: mobile money and dispute resolution in Somaliland’, Stability: International Journal of Security and Development 4, 1: 1–15. CrossRef Google Scholar

United Nations Population Fund. 2014. Population Estimation Survey 2014 for the 18 Pre-War Regions of Somalia. Nairobi: United Nations Population Fund. Google Scholar

Verjee, A., Abokor, A.Y., Yusuf, H.A., Warsame, A.M., Farah, M.A. & Hersi, M.F.. 2015. The Economics of Elections in Somaliland: the financing of political parties and candidates. London: Rift Valley Institute. Google Scholar

Vicente, P.C. 2010. ‘Does oil corrupt? evidence from a natural experiment in West Africa’, Journal of Development Economics 92, 1: 28–38. CrossRef Google Scholar

Voller, Y. 2013. ‘Kurdish oil politics in Iraq: contested sovereignty and unilateralism’, Middle East Policy 20, 1: 66–82. CrossRef Google Scholar

Walls, M. & Kibble, S.. 2012. ‘Somalia: oil and (in)security’, Review of African Political Economy 39, 133: 525–35. CrossRef Google Scholar

Walls, M., Heine, C., Klingel, A., Goggin, C., Farag, A. & Mwape, S.. 2018. The Limits of Consensus? Report on the Somaliland presidential election, 13th November 2017. London: The Bartlett Development Planning Unit. Google Scholar

Weszkalnys, G. 2014. ‘Anticipating oil: the temporal politics of a disaster yet to come’, Sociological Review 61, Supplement 1: 211–35. CrossRef Google Scholar

World Bank. 2014. ‘New World Bank GDP and poverty estimates for Somaliland’. <http://www.worldbank.or//ew/ress-releas/01///ew-world-bank-gdp-and-poverty-estimates-for-somaliland>, accessed 5.10.2017.,+accessed+5.10.2017.> Google Scholar

World Bank. 2016. Somaliland’s Private Sector at a Crossroads: political economy and policy choices for prosperity and job creation. Washington, DC: World Bank. Google Scholar

Duale, Abdillahi M., Minister of Foreign Affairs, Hargeisa, 24.7.2010. Google Scholar

Dualeh, Hussein Abdi, Minister of Energy and Minerals, Washington, DC, 19.5.2012. Google Scholar

Fadal, Mohamad, Chairman, Independent Scholars Group (former Minister of Planning, currently a leading Wadani Party official), Hargeisa, 31.7.2010. Google Scholar

Ibrahim, Mohammed Hassan, Academy for Peace and Development (more recently Director General, Ministry of Finance), Hargeisa, 26.7.2010. Google Scholar

Jirde, Abdikadir H., Member of Parliament, Wadani Party, Hargeisa, 6.11.2017. Google Scholar

Oil industry executive 1, Hargeisa, 11.11.2017. Google Scholar

Oil industry executive 2, Hargeisa, 15.11.2017. Google Scholar

Samale, Abdiaziz, former Minister of Finance, Washington, DC, 21.4.2016. Google Scholar

Interviews

Abdillahi M. Duale, Minister of Foreign Affairs, Hargeisa, 24.7.2010.

Hussein Abdi Dualeh, Minister of Energy and Minerals, Washington, DC, 19.5.2012.

Mohamad Fadal, Chairman, Independent Scholars Group (former Minister of Planning, currently a leading Wadani Party official), Hargeisa, 31.7.2010.

Mohammed Hassan Ibrahim, Academy for Peace and Development (more recently Director General, Ministry of Finance), Hargeisa, 26.7.2010.

Abdikadir H. Jirde, Member of Parliament, Wadani Party, Hargeisa, 6.11.2017.

Oil industry executive 1, Hargeisa, 11.11.2017.

Oil industry executive 2, Hargeisa, 15.11.2017.

Abdiaziz Samale, former Minister of Finance, Washington, DC, 21.4.2016.


About Scott Pegg

Professor and Chair, Department of Political Science

Indiana University-Purdue University Indianapolis (IUPUI).

Scott PeggScott Pegg came to IUPUI in 2001 from Bilkent University in Ankara, Turkey. He primarily teaches courses on International Relations, War and Conflict, US Foreign Policy, and Globalization. He is the author of International Society and the De Facto State (Ashgate, 1998) and the co-editor of Transnational Corporations and Human Rights (Palgrave Macmillan, 2003). Scott has published many journal articles and he is also the author of the non-governmental organization report Poverty Reduction or Poverty Exacerbation? World Bank Group Funding for Extractive Industries in Africa. Scott’s current research interests focus on the human rights and security implications of transnational corporations. He is also working on the dynamics of conflicts involving lucrative natural resources.
Beyond research and teaching, Scott is Chairman of the International Friends Committee of Bebor Nursery/Primary School in Bodo City, Ogoni, Nigeria, where he is actively raising money to build nursery and primary schools in two rural villages in southeastern Nigeria. Scott is also an advisor for the IUPUI Student Global AIDS Campaign. He is married to Tijen Demirel Pegg, from Turkey.

Education

  • PhD University of British Columbia 1997
  • MSc London School of Economics 1991
  • BA University of Richmond 1987

Academic interests

De Facto States, Transnational Corporations and Human Rights, Natural Resource Wealth Management

Teaching

INTL I100 Introduction to International Studies, INTL I400 International Studies Capstone Seminar, POLS Y219 Introduction to International Relations, POLS Y360 US Foreign Policy, POLS Y375 War and International Conflict, POLS Y377 Globalization, POLS Y490 African Politics, POLS Y490 International Relations Theory

Awards

2017 Chancellor’s Award for Excellence in Civic Engagement (Faculty)

Departments/programs: 

    Political Science
Campus: IUPUI
Cavanaugh Hall (CA) 503K
425 University Boulevard
Indianapolis, IN 46202
Phone: 317-278-5749
Email: 

Type: Research Article

Information: The Journal of Modern African StudiesVolume 56Issue 4, December 2018, pp. 619 – 643

DOI: https://doi.org/10.1017/S0022278X18000575[Opens in a new window]

Copyright: Copyright © Cambridge University Press 2018 

This site uses Akismet to reduce spam. Learn how your comment data is processed.