Thursday, January 12, 2012

We have a current observable case of income redistribution that promotes significant economic growth. Why don't we try this???

One persons idea of an income redistribution plan is another persons idea of piracy.  A new study suggests that some areas of Somalia are prospering because of the additonal "income" generated by the spending of ill-gotten ransom gains. How do you say Keynesian Multiplier in Somali?

 Below are a some excerpts from a BBC article and below that are the satellite photos from the actual report (HERE)

Somali piracy 'boosts Puntland economy'

""New research suggests piracy has led to widespread economic development in some parts of Somalia....

""Analysis of daytime satellite image showed that Garowe almost doubled in area between 2002 and 2009, with significant housing, industrial and commercial developments...""

""Many houses were newly built or repaired between those dates and a much larger number have vehicles parked outside.""

""The report concludes that significant amounts of ransom money are spent in the regional centres, with the benefits being shared out between a large number of people due to the clan structures in place...""

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