Somalia - Recent economic developments

FILE CopY DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. AE-28a RECENT ECONOMIC DEVELOPMENTS IN SOMALIA August 28, 1972 Eastern Africa Department This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  EQUIVALENTS Currency Before Dec. 1971: US$ 1 = So.Sh. 7.143 So.Sh. 1 = U.$ 0.140 Dec. 1971: US$ 1 = So.Sh. 6.579 So.Sh. 1 = US$ 0.152 After Dec. 1971: US$ 1 = So.Sh. 6.925 So.Sh. 1 = Us$ o.144 Weight Unless otherwise stated, all tons in this report refer to metric tons. 1 metric ton = 1,000 kg = 2,205 lb. = 0.9844 long tons 1 long ton = 2,240 lb. = 1.016 metric tons 1 short ton = 2,000 lb. = 0.907 metric tons Area 1 ha = 2.L7 acres 1 sq km = 0.386 sq. mile  TABLE OF CONTENTS Page No. Prar!2hNo. BASIC DATA MAP I. INTRODUCTION 1 II. RECENT DEVELOPMENTS 3 Public Finance 3 13 Domestic Borrowing 5 20 Foreign Aid and External Debt 6 23 Balance of Payments 7 27 III. PLANNING AND PROSPECTS 8 Objectives 6 30 Priorities 9 34 Financing and Feasibility 10 4jO Prospects 11 45 APPENDIX - STATISTICAL TABLES This report is based on the work of Mr. Godwin E. Okurme, who visited Somalia in November-December 1971. It updates the last economic report, "Economic Development Prospects in Somalia"' (Report No. AE-10, January 15, 1971:).   SOMALIA BASIC DATA Area: 637,000 square kilometers (246,ooo square miles) Population: 1971 estimate - 2.8 million Rate of Growth - approximately 2.5 percent Population density - 4.4 per square kilometer Political Status: Independent Republic since July 1960; associate member of the European Economic Conmunity; applicant for membership of the East African Economic Community. Gross Domestic Products Somalia has no national accounts. Livestock and subsistence crop production contribute the largest proportion of national income. Per capita income is estimated to be about US$60. Money and Credit: June_30, 1l71 Rate of Growth p.a. (So.Sh. Wmi on) T(1967-97) 1970 Money Supply 288.3 11.7% 12.3% Domestic Credit 286.8 4.0% 2.5% Claims on Government (net) 43.3 -11.0% -9.7% Prices: No comprehensive price indices are available for Somalia. The cost of living index for Mogadiscio, however, rose ten percent for the period 1966-1970. Public Sector Operations: Si. Million 1963 1966 1970 Ordinary government revenues Z3&8 3 234.3 -2W-O Ordinary government expenditures 189.2 257.3 299.0 Budget deficit 45.4 23.0 11.0 Budget deficit as % of government expenditures 24.0% 8.9% 3.7% External Public Debt: Debt outstanding December 31, 1970 US$105.2 million Debt service payments (1970) US$ 2.7 million Debt service ratio (as % of foreign exchange earning) 5.9 percent  -2- Balance of Paymentst Sh. Million 1963 - 9 M 1970 Merchandise exports f.o.b. I7Y I Merchandise imports c.i.f, 315 319 326 Net services -4o -43 -19 Net transfers 105 71 95 Balance on current account x T7 7tj 1963 1966 1970 June 1971 Foreign assets (net) WTT7 16.7 109.5 T1672 Months of imports 4.6 Concentration of Exports: Percentage of Exports 1963- 1970 Bananas -- --2F Live animals and hides and skins 46 60 IMF Position: US$ Million Quota 19.0 SDR's 2.6 Drawings outstanding (December 1971) nil External Assistance, 1960-1969: US$ Million Grants 2j9.7 Loans 147.9 387 .6 Major Donors: Multilateral: US$ Million UN 24.3 IDA 8.5 EEC 27.3 Bilateral: Italy 112.4 U.S.A. 70.9 U.S.S.R. 53.1 Federal Republic of Germany 29.2  IBRD 3041Ri 486' AUGUST 1972 /Aj 1,2 PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN -12- // F. Tr.A.I._ Gulf of Ac/en Alu r 12- Djlbo.ti Bender Malron .4s;J 0 HA E _ r SAa O 0 go] Ofedw To Woerais -{ - Hri / \% H A R'G E S A Sc.scl.bI S A Bander 511 / ;t ~~~~~Gcbilei . ow0 ru;w;at$Rn 0 \ Ggrdo, iender~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0Bellr -D-~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - - - - 4 i E H I O PdIA I A . R ' ) j O~ G A D E N , /ND/AN v~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- AL A0 /, O H I_A ii. ~ ~ ~ ~ M . I / - ' Ri'ers -, oEi. Ei'T L-El, El i Dmstic porAts < ,>o < 8 R A/1 ); i