Economic Comparison of Somalia and Venezuela Paper Example

The History of Somalia

The almost entirely Islamist state of Somalia has experienced numerous change in its leadership from the year 1969, up to recently when it stabilized from a recently held election. Somalia has seen periods of endless squabbles within itself stemming from the onset of bad religious leadership. Somalia also called the 'Horn of Africa,' is an independent country, located in Eastern Africa, with a total land mass of approximately 627,337 sq. km. it is dominated by charged religious leaders that dictate its political landscape. Britain pulled out of British Somaliland in 1960 to allow its colony to merge with Italian Somaliland and form the nation of Somalia. In 1969, a coup headed by military general Mohamed Siad Barre saw a shift in power from a leftist state to an authoritarian socialist rule, highly defined by the oppression, incarceration, and torture of political opponents and nonconformists (Buxton n.p).

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After the government's downfall early in 1991, Somalia descended into chaos, factional conflicts, and anarchy. It struggled to maintain its position in the Eastern Africa region as a political stronghold and an economic hub to no success. The Somali country grappled with uncontrollable series of bomb attacks coupled with the massive migration of its citizens to the neighbouring countries, majorly Kenya and Ethiopia. In May 1991, northern clans declared themselves to be the independent Republic of Somaliland that now comprises of the administrative regions of Woqooyi, Awdal, Galbeed, Sanaag, Togdheer, and Sool. Even though not internationally recognized, this independent entity has upheld a steady existence and continues efforts to establish a constitutional democracy, inclusive of holding parliamentary, municipal, and presidential elections. The disintegration and the emergence of regional clusters of politically organized clans provided fodder for the escalation of the wars and fights within its borders. The regions of Nugaal, Bari and northern Mudug consist of an adjacent semi-independent state of Puntland, which has been autonomous since 1998 but is not independent.

Puntland has also made efforts toward rebuilding a valid, representative government but has undergone some civil strife. Puntland disputes its boundary with Somaliland as it also voices its entitlement to portions of eastern Sanaag and Sool. Commencing in 1993, a two-year United Nations humanitarian effort (principally in the south) was able to ease famine conditions experienced in the region, however, when the UN pulled out in 1995, having experienced substantial casualties of its military, order still had not been reinstated to the region (Wiedmann 6254). In the year 2000, the SNPC (Somalia National Peace Conference) held in Djibouti, resulted in the creation of a short-term government, known as the TNG (Transitional National Government). When the TNG's unsuccessful attempts to establish sufficient security or governing institutions, the Kenyan government, under the patronage of IGAD ( the Intergovernmental Authority on Development), led a subsequent peace process that ended in October 2004 with the election of Abdullahi Yusuf Ahmed as President of a second interim government, acknowledged as the TFG (Transitional Federal Government) of the Somali Republic. The TFG was composed of a parliamentary body with 275 members, identified as the TFP (Transitional Federal Parliament). President Yusuf then resigned in late 2008 as the United Nations-oversaw talks between the opposition Alliance for the Re-Liberation of Somalia (ARS) and the TFG in Djibouti. In January 2009, subsequent to the creation of a TFG-ARS unity government, Ethiopian military forces, which had gone into Somalia in December 2006 to back the TFG in the face of actions by the opposition Islamic Courts Union (ICU), pulled out from the country. The decision for the pullout was not received well by the clergies, owing to the fact that Somali is a predominantly Islamic state ruled under that Sharia laws. The TFP was thus doubled in proportion to 550 parliamentary seats with the addition of 75 civil society members and 200 ARS members of parliament (Besteman n.p). The widened parliament elected Sheikh Sharif Sheikh Ahmed, the previous ARS and ICU chairman as president in January 2009. The formation of the TFG was based on the Transitional Federal Charter (TFC). The TFC outlined a five-year term leading to the formation of a new Somali constitution and a transition to a representative government after national elections. In 2009, the TFP amended the TFC to prolong TFG's mandate until 201. In the same year, Somali principals came to a consensus to institute a political transition body by August 2012. The changeover process concluded in September 2012 when clan elders substituted the TFP by appointing 275 members to a new parliament who afterward elected a new president.

The History of Venezuela

For centuries the native peoples of Venezuela lived by hunting and fishing and also by farming. Christopher Columbus was the first European to reach Venezuela in 1498. In 1499 Alonso de Ojeda, a Spaniard led another voyage to the area. Alonso named the region Venezuela, to mean little Venice, after seeing huts which were supported by stilts. The Spanish colonizers, in 1521, erected their first town in Venezuela (Tarver n.p). The Spanish also began shipping in African slaves to Venezuela. However, the Venezuelan region was relatively insignificant to the Spanish. Venezuela was then declared independent on 5 July 1811by a national assembly. However, this was short lived since the country was seemingly not ready for self-governance. A year after, Spanish forces regained control of Venezuela once again sending the country back to the control of foreigners. Simon Bolivar finally liberated Venezuela in 1821 through mobilization of the civil uprising to overturn the foreign rule. Initially, Venezuela was merged with Ecuador and Colombia as part of a state called Gran Colombia. However, the merged state soon broke up and Venezuela again became completely independent in 1830.

Caudillos, who were military dictators, imposed a largely 'leftist' rule on Venezuelans all through the 19th century. The first of the Caudillos was Jose Antonio Paez who ruled until 1848. Venezuela, similar to Somali, then endured civil wars that led to political and economic turmoil, thus dwarfing its progress. Antonio Guzman Blanco a general, was caudillo from 1870-1888 and managed to restore some sense of order to Venezuela. In 1902, Venezuela failed to pay interest on loans from Germany, Britain, and Italy. Resultantly, the 3 nations sent their navies to cordon Venezuelan ports to forcefully fetch their revenue from a seemingly broke nation as at that time. However, in 1914 oil was discovered in Venezuela which came as a reprieve to its dwindling economic fortune regionally and internationally. It became Venezuela's chief export earning it revenue to resuscitate its stand in the region. In 1945, following a coup to overthrow a dictator, the interim government pledged to hold elections. Elections were held in 1947 and a new constitution consequently produced. Shortly after the election in 1948, a coup took place (Besteman n.p). Marcos Perez Jimenez became autocrat of Venezuela. Jimenez was however overthrown in turn in 1958.

After 1958, Venezuela became a democratic state. Conversely, in 1998 Hugo Chavez, who introduced a leftist regime to Venezuela, was elected president. Chavez was again re-elected in 2006. He strongly associated Venezuela with Cuba. He, however, passed on in 2013. He was succeeded by Nicolas Maduro. Currently, the population of Venezuela stands at 31 million. The state heavily relies on proceeds from oil but poverty is still a key issue for the country. In 2016 Venezuela endured an extremely high rate of inflation and the economy sloped drastically. There are also shortages of medicines and consumer goods (Lago 156). Venezuela also suffers from high crime rates. Not astonishingly in recent years, the state has suffered massive rightist movement, with regard to 'brain drain' as many learned and wealthy people have moved abroad, to seek better economic compensation (Buxton n.p). In 2017 there were numerous protests in Venezuela, mainly over the sorry state of the country and poor living conditions. Today the economic crunch in Venezuela continues.

Economic Comparison

Generally, Venezuela is more rightist than leftist, with regard to its economy. There is more freedom of equity and investment in comparison to Somalia that remains rightist, with the government controlling most of the economy. With regard to food, a basic meal in Venezuela would cost around $3.17 whereas, in Somalia, it would cost $2.38. A fast-food restaurant in Venezuela charges $3.40 on average whereas in Somalia it would be $5.75. A bottle of Coca-Cola also costs more in Somali than in Venezuela (Diener 142). Thus on average, Venezuelans pay 27.0% more for food as compared to Somalians.

With regard to groceries, a loaf of bread costs $0.97 in Venezuela, whereas in Somalia it costs $0.67. A liter of milk in Venezuela costs $1.03 whereas the same costs $1.30 in Somalia. On average, Venezuelans pay 6.0% more for groceries, in comparison to Somalians (Nur 5).

In the transport sector, a liter of gasoline in Venezuela costs $0.00 whereas in Somalia it costs $0.78. Public transport is also much expensive in Somalia, with a difference of 261% in comparison to Venezuela. On average, Venezuelans pay 39.2% less for transport in comparison to Somalians (World Bank). The next criteria of housing, Venezuelans pay 72.5% less for housing as compared to Somalians. Internet connection costs $6.40 in Venezuela, whereas the same commodity costs $26.25 in Somalia. A one bedroom apartment in Somalia costs $86.50 whereas the same space costs $368.97 in Venezuela (Diener 138). The same space is even more pricey outside the city center in Venezuela, as compared to Somalia. This is true to the Republican approach employed in their economy.

In the education sector, Venezuelans are seen to pay 73.5% less for childhood education than Somalians. This is true to the Republican approach employed in their economy. A private school in Venezuela costs $17.71 per child whereas in Somalia it costs $46.33. In middle school, one would pay $5,099.67 in Venezuela, whereas the Somalians would pay $1,310.00. In the field of entertainment and sports, a local beer in Venezuela costs $0.75 whereas the same commodity costs $3.25 in Somalia (World Bank). A cup of coffee in a mid-range restaurant in Venezuela costs $0.90, whereas the same costs $0.94 in Somalia. A packet of cigarettes costs $1.25 in Venezuela, whereas the same commodity costs $0.95 in Somalia.

For clothing, Venezuelans pay 79.1% less, on average, as compared to Somalians. This is true to the Republican approach employed in their economy. A regular pair of jeans in Venezuela costs $59.88, whereas the same cost $15.00 in Somalia. A regular dress costs $74.11 in Venezuela, as compared to Somalia's $17.50 (Kornblihtt 64). A pair of men's shoes in Venezuela costs $124.63 whereas the same commodity in Somalia costs $18.12 (World Bank).

This thus shows that Venezuela, on a large scale has implemented rightist measures to facilitate its economic growth. However, contrary to rightists' notions of taxation, the rich seem to pay more tax in terms of percentage levied, in comparison to the poor. Venezuelans seem to be leftist with regard to taxation. Although the Venezuelan government appears largely rightist with regard to economic interference, it is leftist with regard to some policies, especially on private business (World Bank). The Somalia government, however, is completely leftist, with a lot of control on the economy being seen through laws and multi-l...