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A State is Born: Transport Infrastructure and Democracy in Somaliland

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  • Azam, Jean-Paul

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.

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Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 668.

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Date of creation: Sep 2010
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Handle: RePEc:ide:wpaper:24310

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  1. Jean-Paul Azam, 2006. "The Paradox of Power Reconsidered: A Theory of Political Regimes in Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(1), pages 26-58, March.
  2. Azam, Jean-Paul & Mesnard, Alice, 2003. " Civil War and the Social Contract," Public Choice, Springer, vol. 115(3-4), pages 455-75, June.
  3. Barro, Robert J., 1974. "Are Government Bonds Net Wealth?," Scholarly Articles 3451399, Harvard University Department of Economics.
  4. Nicholas Eubank, 2010. "Peace-Building without External Assistance: Lessons from Somaliland," Working Papers 198, Center for Global Development.
  5. Ndulu,Benno J. & O'Connell,Stephen A. & Bates,Robert H. & Collier,Paul & Soludo,Chukwuma C., 2009. "The Political Economy of Economic Growth in Africa, 1960–2000," Cambridge Books, Cambridge University Press, number 9780521127752.
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