A State is Born: Transport Infrastructure and Democracy in Somaliland
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 of creation:||Sep 2010|
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- Azam, Jean-Paul, 2003.
"The Paradox of Power Reconsidered: A Theory of Political Regimes in Africa,"
IDEI Working Papers
233, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2005.
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- Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
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