Will Somaliland’s Fully Fledged Private Enterprise Reduce the Government to a Banana Republic?


Will Somliland’s Fully fledged Private Enterprise Imitate the Features of the American Fruit Company, and be able to Reduce the Government to a mere Banana Republic?

In Latin American countries, the United Fruit Company (UFCO), a USA owned Private Corporation runs the biggest export trade in agricultural production primarily, in the production of bananas which is a preferred dietary consumption in the United States, the history of growing bananas in the Central Latin American countries dates back to 1870, Mr. Keith was the man who pioneered this successful business. He even married the daughter of Costa Rican President to advance his business empire. His efforts paid off and eventually earned the title of “The Uncrowned King of Central America”.

This multinational company has been considered the quintessential representative of American imperialism in Central America. Not only did the Company enjoy enormous privileges in that region but also counted on authoritarian governments in dealing with labor unrest and other unlawful activities. Today, UFCO is among the world’s four largest food producers, and it has strong political connections in some Central Latin American countries notably: Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama. For example, in Guatemala under Dictator Jorge Ubico, the United Fruit Company gained control of 42% of Guatemala’s “arable land”.

In 1951, Jacobo Arbenz was elected as the 25th President of Guatemala; he was a strict nationalist who wanted to restore the plundered land to his peasants. The CIA labeled him to be a communist, and he finally resigned from office for a fear of his safety. The United States with the support of CIA frequently used to carry out “covert operations” in which they either murder or remove power from any President who dares to resist the interest of their business empire.

The disdainful term of “Banana Republic” is often referred to those nations, though some people could possibly misunderstand the true meaning of this word; It is true that these nations produce the tropical fruit of bananas, however, the exact meaning of banana republic is ‘a political term” meaning: “A weak, and politically unstable nation with an economy dependent upon the exportation of a limited resource product e.g. bananas, minerals”. The UFCO reduced these nations to a mere banana republic which has no other choices but to be dictated.

Over the past decades, Somaliland Private Enterprise was running at a faster rate, the major line of business in our country is more or less a single component of business namely: “Service Business” whether they are involved with the money transfers, telecommunications or air transport.
 These local private enterprises accumulated a lot of fortune in the form of profits
 They often get tax breaks from the government, or pays lesser than their actual profits.
 They do not encounter much tougher policies of economic regulations which are supposed to be imposed by the government
 They rarely make a local reinvestment from the proceeds of their marginal profits instead; they create a capital flight.
 Any free market economy which failed to operate within the framework of government regulations consequently distorts the entire system of any economy and creates haves and have-nots

It is a true fact that these local entrepreneurs have advanced the delivery of essential services, and created the retention of job markets, however, still much has to be reconsider.

Abdulqadir Omer Jama



The views expressed in this article are the author’s own and do not necessarily reflect Horndiplomat editorial policy.

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