FC: Ayn Rand in Somalia: No government, but business is booming

From: Declan McCullagh (declanat_private)
Date: Mon Apr 23 2001 - 07:35:49 PDT

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    http://www.theatlantic.com/issues/2001/05/maass.htm
    
     Ayn Rand Comes to Somalia
     In the absence of government bureaucracy and foreign aid, business is
     starting to boom
     by Peter Maass
       ...
    
       Mogadishu has the closest thing to an Ayn Rand-style economy that the
       world has ever seen--no bureaucracy or regulation at all. The city has
       had no government since 1991, when the much despised President
       Mohammed Siad Barre was overthrown; his regime was replaced not by
       another one but by civil war. The northern regions of Somaliland and
       Puntland have stabilized under autonomous governments, but southern
       Somalia, with Mogadishu at its core, has remained a Mad Max zone
       carved up by warlords for whom fighting seems as necessary as oxygen.
       The prospect of stability is a curious miracle, not simply because the
       kind of business development that is happening tends to require the
       presence of a government, but because the very absence of a government
       may have helped to nurture an African oddity--a lean and efficient
       business sector that does not feed at a public trough controlled by
       corrupt officials.
    
       ...
    
       Of course, the lack of a government poses problems, especially with
       respect to the warlords. Sheikh and his fellow businessmen have kept
       them at bay by paying them protection money and by forming their own
       militias. Those manning the machine guns outside Telecom Somalia are
       employees of the company, and when the firm's linemen go out to lay
       new cables (they used to string overhead lines, but those got shot up
       by stray gunfire), they, too, are protected by company gunmen.
       All of this is costly, so the business leaders have taken steps to
       bring about a new government--one that will keep its hands out of
       their pockets and focus on providing security and public services.
    
       ...
    
    
    
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