Puntland Needs A Real Evidence Based Economics

[DR OSMAN]

I don't know how a region can develop without displaying your ideas vs the global market place.

There is only 100 trillion dollars in the world in any given year, and maybe 2 to 3% growth year to year. That's it, their no more booms and busts in the world, just slow downs or spikes but it's always steady growth or steady declines.

The global gross domestic product (GDP) in 2022 was over $100 trillion.
In 2022, the global gross domestic product (GDP) was made up of the following sectors:

• Agriculture: 4.27%
• Industry: 27.22%
• Services: 63.97%

Deni I don't think tells his economists where this money is and majority is services industry not agriculture or even industry(this includes all raw resources, natural resources, manufacturing, logistics, transport).

We need to aim to get 1 trillion from this global pie. This is where Deni needs to demand economists prove which sectors will bring those goals.

Do we want one or a mix of them? I mean we got alot of limestone which construction industry needs as cement, then we need to tell other puntites open up storage facilities, some open up shipping companies or trucks, some.open up processing facilities, same with any investment done, it must show how many value add knock on will occur.

 

[DR OSMAN]

We can't use one business model, I know that for certain, it will be how well we select which industry, service sector, agriculture, natural resources, transport, logistic we select or else if u work outside this model u will not gain a cent from the global money.

 

[DR OSMAN]

To develop the service sector we must tell banks to give priority to this for start ups, they need to show what service they bring so even if we import because their not making it, their on the final sales side of value chain.

Investors whether local or foreign or preferably both in partnership should look at each industry from natural resources to processing, manufacturing to storage to transport stages. They don't need to do it all, but select the stage which is best gains towards the 1 trillion goal.

If u don't have shipping industry then find global shipper who then can influence their investors to do an investment where PL select.

 

[DR OSMAN]

They waste their time on Somali politics for 20 years a whole generation lost and there nothing to show for it but time waste.

Plus noone working in Somalia for less then $300 to 500 a month due to cost of living plus u don't want to be to expensive for investors in 3rd world countries.

If you can secure $500 a month for workers as they want savings, which is still very competitive globally and not under valuing, it's just a matter of volume and quantity then and mass employment. If u assume 2 to 3% inflation each year which the govt central bank will need to ensure steady rises in prices and steady declines thru currency control to private banks to assess the market transaction quantity for the month and year.

Buts it's absolute critical u set a law that all investment is 51/49 with 51 majority being either local or foreign so the business class develops.

 

[MacalinDugsi]

Puntland has bright future compared to other states. I’d like galgadud to join puntland. Qabil is overrated we should aim to unite.

 

[DR OSMAN]

Puntland has bright future compared to other states. I’d like galgadud to join puntland. Qabil is overrated we should aim to unite.

They do alot of time waste which is the whole idea behind productive it's linked to time(day, month, year, decade, century) vs output vs gains, they expend alot of Time yet their no output or gains.

 

[DR OSMAN]

@MacalinDugsi

I am waiting for PL currency distribution and control framework. Will it float or be pegged to the usd, their benefits and losses on both models. I think they should peg it for now untill the market grows and the currency gains value due to the market having goods and services.

But floating it allows manipulation to be done when America slows down or gets fast you can control precisely your foreign exchange by removing or adding your currency which has a control effect on foreign investors who can disturb your market.

A Stable currency plus stable infrastructure for it is mandatory tho because this can lead to all activity to stop if this isn't crafted carefully and lead to great instability, conflict or even possibly starvation. A stable currency is how much u inject or remove from the market thru interest rate control to reflect the market activity. The goal is always 2 to 3% price increases they don't it to jump beyond that for a few reasons and they surely don't want a deflation the same thing but the flip side where businesses are going broke or selling at a loss, which can lead to all jobs lost. So an inflation is far better then deflation. The question is sensible inflation only.

 

[DR OSMAN]

I dont know the finer details of how it works but i assume central bank sets an interest rate depending on if they want to see more loans happening or less, that determines their interest rate if it's high or low. All licensed banks then hold accounts in central reserve and private banks hand over the interest applied by the central bank at end of.month or year. I don't think central.bank owns it tho.and is linked to each private bank account.

Those accounts are all interest collected for decades by central bank which they can use as a reserve in times of banking instability, especially if their banking bust. I don't think they need to really print any money unless under exceptional standards as the in circulation money in bank deposits and interest accounts at central.bank is usually sufficient for most banking transactions from small to large transaction untill of course a banking disaster happens.

If PL doesn't get the banking framework right and private banking, the whole market stops. Private Banks own the transaction side infrastructure, govt owns the currency side. It's a good split ratio. If this isn't designed perfectly and monitored daily, weekly, monthly, yearly and adjusted the rest of the market will be unstable.

They need ensure enough supply of currency is there for day to day normal transactions and a separate high volume investor type transactions, they need to know what day to day transactions are and supply enuff currency for it for a whole year but also have bigger transactions between investors procedures set up.

Money is always owned by private people even goct revenue is thru taxes or bonds or loans, it's always privately held. Private Banks just host the transaction and central bank only controls currency not really own it. Somalis will need to work out ways and methods to get their share of the pie and charity, aid, welfare is usually only education(opportunity), basic food n healthcare at best, their just basics so your alive not get rich. Money is only exchanged in the world for shares, good, service, Labor nothing else really. If u don't offer these your really out of touch with the world you live in.