A State is Born: Transport Infrastructure and Democracy in Somaliland

Jean-Paul Azam ()

No 668, IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse

Abstract: Somaliland has recently developed an unexpected democracy after seceding from chaos-ridden Somalia, while turning its port of Berbera into a success story, competing successfully with the long established ones in the Horn of Africa. A simple game-theoretic model is used to explain why the home-grown democratic institutions that developed in Somaliland are a key factor in making Berbera a credible outlet for the external trade of neighboring landlocked Ethiopia. The model shows that redistributing some of the resources from this trade is a key condition for sustaining this efficient political equilibrium.

Date: 2010-09
New Economics Papers: this item is included in nep-afr and nep-pol
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Citations: View citations in EconPapers (5)

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Working Paper: A State is Born: Transport Infrastructure and Democracy in Somaliland (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ide:wpaper:24310

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