Op-Ed: Lessons Learned From the Pareto 80–20 Rule Principle
OPINION | March 25, 2012
By: Abdi Y. Xaad
I think many of us heard or studied the Pareto 80–20 rule principle in the best economic studying since today: Pareto developed both concepts in the context of the distribution of national income and wealth among the population.
Who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed also the complementary principle by observing that 20% of the land in Italy was owned by 80% the other rest of population only. That’s means, a huge imbalance burden in the standard of living resulted from rooted chronic corruption and mismanagement of the national resources.
Now, mathematically it has big correlation applications in Somaliland’s today actual phenomena which is 80% of the GNP goes to the (big business group, government officials and well connecting of certain elites) through various revenue incomes without taxation of net profit and potentially huge corruption systems adapted after sacked the most ethical, capable, honesty and integrity former Finance Minister – Mohmmed Hashi who Somaliland never produced like him ever in history.
Out Side World Watchers
Somalia is the world’s most poorest and corrupted nation on the earth according to Transparency International’s 2011 Corruption Perception Index. The 2010 CPI shows nearly in the index score below a 0 scale from 10 points that perceived to be highly corrupt nation.
Why, Somalia ranked #1 in record corruption and chaotic country in the planet? Simply due to the obvious reasons of chronicle tribalism, all types of corruptions, nepotisms and poor governance systems during and post collapse of the military dictator ruler’s regime of Somalia.
According to the above official world report evidence. The worst conditions of Somalia were inflected for the last 20 years, which is not far from Somaliland BORDERS.
Hence, Somaliland needs adaption of rational mindsets thinking for the future of its population. To retain and sustain the successful results Somaliland achieved in the same period of 20- plus years, also, the political advancement it gained from the London Conference was due to the collective efforts of institutions participations both governmental, opposition parties and civic society and with help of real player leaders like UK and USA.
The following of the international community entrusted to invest in Somaliland through huge direct foreign joint investments mainly in the sectors of Oil & Gas and Infrastructures such Roads, Water Supplies, Berbera Port, Air Ports and Securities Projects.
And according to foreign media releases indicated coming direct huge funds of international development packages some estimated nearly $ 500 million to be spent Somaliland within next two years coming and subject to incremental paces.
With this promised prospectus, there are emerging growth of different corruption by- products signs within Somaliland main governing institutions like executive, judiciary and auditing general systems. Today, we see new lessons are figure pointing a serious corruption problem to a higher level by utilizing a new technique of very rarely unpopular tools in Somaliland culture such as blackmailing and character assassinations, harassment to detain top government officials without fair trial.
Other, episode of correlation when unexpected surprises of the big scale reshuffles fired some of best national intrepidity and integrity ministers in coincidence with these foreign money flow schemes and within 72 hours prior to the reshuffles the three top government officials have been arrested including the governor of Somaliland capital without given hard evidence or indicted fair trial. The public labeled this act as strange provocations and wondered case scenario that Somaliland never witnessed and it made a shock to many nationals from East to West Regions.
Fabrication and Fake Allegations
The disturbing feeling is when the three officials shackle- chained and transported in secret tightly secured armed vehicles put them into the confinement l cells immediately without any Attorney General Warrant orders but only verbally accused them for corruption case of donated food misplacements.
Extraneous continuous, when presidential a decree issued for firing from their duties even before reaching the detention centers, let alone the conviction trials proper procedures. In Hargesia, there many confirmed rumors pointed out that there were deliberate Fabrication Scheme Allegations plotted within circle and battery limit of presidential palace’s perimeters.
Feeling also says, the original planning was to make these officials as escape goats and then followed of hiring special Ministries in order to take out all obstacles and barriers for free passway for coming huge promised financial foreign fund and Aid Cash Flows to be purred into private and governmental projects investments with NO controlling and accountabilities since the strong Finance Minister has been sacked out.
Nevertheless, actually these politically motivated architectures produced great negativity repercussions feedbacks of miscalculations results. These poorly planned operations and less intelligent engineering tactics to cover up this entire triangle designed for political gains and illegitimate predicated financial packages- benefits for certain people though giving them business opportunities and new ministerial positions.
Other hot issues, including Berbera Cement Plant Project that monopoly granted to specific politically influential business men without given thought the previously proposed procedures and policies were regarding the national public sharing offers or even a fair competition considerations among the other public national investors.
These acts entered the whole nation in rampageous and confused mode with great anxieties feelings of aversion in regard to Intra- State insecurity whether the natives are government opponents or exponents due to increasingly imbalance of injustice practices and renewal of corruption smoking signs accelerating speeds.
Word of Warning
As already commented in the internet blogs, the whole society begins widely; the country approaching to slip into extreme depression directions towards lack of wise leadership governance for the country affairs.
Predication of at least 50% tax revenue reduction in the year…..
The public have pretty terrifying dreams since after the reshuffles, financially, socially and economically. The Institutions Bankruptcy can be a very big of another nightmare and when salaries couldn’t pay on time to the government employees and the forces that will make again the people’s life harder not easier… Then guest what??? Backward devastations and destructions will follow similar to Somalia!!