Country Report Somalia May 2011

The Somaliland Republic: Attacks underline the fragility of Somaliland's stability

In April an unknown assailant threw a grenade into a marketplace in the regional capital, Hargeisa, wounding 20 people. Although the authorities blamed a man with mental illness for the attack-thereby implying that it was a one-off with no political or sectarian motivation-the incident was a stark reminder of how fragile the peace in Somaliland can be. Similarly, in November 2010, the government blamed a family dispute for a grenade attack in the capital. Although these incidents do appear to have been apolitical and have not been claimed by any of the belligerents in Somalia's civil war, there have been politically motivated attacks. These include the murders of development workers and a suicide bombing in 2008, which targeted the Ethiopian consulate and offices of the UN Development Programme and resulted in 25 deaths.

Somaliland has long been a beacon of social and political stability in an otherwise war-torn country. However, concerns persist that Somaliland might become a target for groups such as the biggest Islamist insurgent group, al-Shabab, not only because of its aspirations to independence, but also for the government's ties to Ethiopia and the West. The risk of Somaliland becoming a target for jihadi and Somali nationalist groups will rise as Western donors engage more with the local administration.

Nonetheless, given the breakaway region's dependence on aid, the government clearly thinks this is a risk worth taking. For example, in February the UK government announced that aid to Somalia would triple from £26m (US$42m) in fiscal year 2010/11 (April-March) to £80m in 2013/14, of which around 40% would be allocated to Somaliland. Recent US policy shifts also indicate that it intends to boost its support for Somaliland. Similarly, in March delegations from both France and Denmark visited Hargeisa to discuss aid and co-operation with the region. Although increasing foreign aid is obviously welcomed by the regional authorities, there is a risk that, unless handled sensitively, it could upset the balance of power between a weak regional administration and local clan leaders. Also, donors will need to be mindful of the government's ability to manage extra aid flows, as well as the ability of the local economy to absorb it effectively.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
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