http://www.nytimes.com/2014/12/14/world/after-barren-years-in-somalia-signs-of-growth-in-bananas.html?hp&action=click&pgtype=Homepage&module=photo-spot-region®ion=top-news&WT.nav=top-news&_r=0
Somalia's banana industry is growing again. The industry ran into trouble when the country broke out into civil war in in 1991. The civil war caused the Somali government to collapse. Bananas then became used as a source of currency in what became known as "the banana wars". The banana trade took a huge hit, but it has just started to recover. One of the reasons for the recent recovery is that Somalia is becoming a more stable country as it has recently elected a new president and adopted a new constitution. Also, farmers are increasing security so that they are able to conduct their business. The return of the banana industry is great news for the Somali economy. In 1990, the Somali banana trade was worth $96 million. The trades return is good for all of Somalia. There is also the fact that Somali bananas are said to be the best in the world.
The rise of the banana trade will hopefully be able to boost the Somali economy so that it can recover and maybe become even larger than it was before the country went into turmoil. Currently Dole and other large banana companies are hesitant in investing in Somalia because their are still concerns about stability, but Dole has invested their in the past. Perhaps Somalia will become more stable allowing for outside investment. But for now, the Somali banana trade is growing, which is a good sign for the future of Somalia.
Who knew bananas could have such a large impact on the overall well-being of a country. It is hard to imagine a world where bananas are so valuable they become the backup source of currency. As a huge part of their economy, an improved banana trade will hopefully help with their current attempt at stabilization. If their bananas have earned the reputation as some of the best in the world, once other countries trust their stabilization status, demand for their bananas should be very high. They can then increase prices and receive even more revenue into the country.
ReplyDeleteThe issue Somalia had with bananas reminds me of recent issues oil reliant countries have been having. The low oil prices have very negatively affected these oil reliant countries, similarly to how the bananas affected Somalia. It is alarming how quickly an economy can take a turn for the worst when many of their markets rely on a single good.
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