9 Feb 2012 : Column 509
House of Commons
Thursday 9 February 2012
2.25 pm
Alun
Michael (Cardiff South and Penarth) (Lab/Co-op):
My second point is that I know that the Minister has
already welcomed one initiative, namely the establishment of the Somaliland
Development Corporation. It is being established because of the lack of
recognition that makes involvement in international trade and business
difficult. It will be launched on 22 February, the day before the conference,
which Ministers will host. The point of the corporation is to facilitate
international investment in Somaliland and economic
interaction for the benefit of the Somaliland people. As an unrecognised state,
it is isolated. Despite its extraordinary achievements in stability and democracy,
international donors cannot deal directly with its Government, and foreign
investors face uncertainty about whether contracts—the basis of secure
business—can be enforced. The point of the corporation is to establish an
entity to circumvent that problem. Indeed, I hope that it might lead the
Foreign Office, through our trade arrangements, to be able to underpin some of
the potential for business development and trade with Somaliland, which is
difficult at present.
The
development corporation will deal with donors such as Governments, aid agencies
and international financial institutions; individuals, including enhancing the
contribution that is made by many members of the Somaliland diaspora, as the
Foreign Secretary rightly said; philanthropists and foundations; and foreign
companies that wish to invest for profit. The founding directors are
co-operating with the Crown Agents on the provision of banking services, and
the intention is to develop a business plan with aims and objectives in the
short, medium and longer term that will be available on the corporation’s
website. The plan would be influenced by the development priorities of the
Somaliland Government, the decisions of the two boards and the Somaliland
development corporation trust. The launch on 22 February will show the
confidence of the Somaliland Government in engaging with business and economic
development as well as being a participant at the table at the conference.
I greatly
applaud the Foreign Secretary for initiating the conference. By acknowledging
that Somaliland’s participation is a positive way of coming into the
international community, I hope that the UK Government’s lead in these matters
will be acknowledged in return.
I hope that
the Minister will cover some of these points in his response. I return to my
initial point and congratulate the Foreign Secretary, the Secretary of State
for International Development and the Minister not just on this initiative but
on their personal commitment to making it work. I hope they achieve success.
Tony Baldry
(Banbury) (Con):
The example of Somaliland has demonstrated that, when
left to themselves, Somalis can form a viable nation state.”
I am
therefore delighted that President Silanyo is coming to the London conference.
It is excellent that UK initiatives are being taken by the voluntary and other sectors to set up a Somaliland development
corporation, so that we here can give Somaliland whatever help we can with
investment and job creation.
Alun
Michael: The hon. Gentleman is making a very good point. Of course, economic
development is also important for long-term stability. Does he agree that we
must find mechanisms to allow investment in Somaliland in the absence of
recognition, in order to make sure that what is a successful self-governing
area—or independent country, if that is one’s view—is not penalised? The people
of Somaliland should not be penalised in respect of economic development.
Martin
Horwood: The right hon. Gentleman makes an extremely important point, one I was
going to address in due course. He has highlighted the importance of the
establishment of the Somaliland Development Corporation, and I certainly
welcome that.
I also
particularly welcome one of the four priorities DFID has identified for its
development programme. It says that it will “boost wealth creation through supporting investment
climate reform, skills development and job creation.”
It is
essential that we help young Somalis to prosper. In some respects, promoting
economic development may seem like a hopeless task, but we must seize all
opportunities to help to increase prosperity.
It may seem even more hopeless to talk about the
prospects for tourism, but a former diplomat has told me that Somaliland is a
relatively peaceful and prosperous country that is safe for visitors and
apparently has beautiful beaches. If it was recognised and had the status of a
separate country, and then began, as it were, to build its brand separately
from Somalia and the areas still affected by war and conflict, Somaliland could
become quite a positive economic development story, and tourism could be a key
sector. We must seek out opportunities to help Somaliland to develop. It is
absolutely right that 40% of DFID’s development aid is focused on Somaliland
and that we are taking steps such as establishing the Somaliland Development
Corporation, because that example of prosperity and stability could send a very
powerful message in the region.
Mr
Bellingham
This is an important conference for President Silanyo.
He has been invited to take part. We feel strongly that this is a conference to
which the Somalilanders can contribute. They can tell the rest of Somalia what
they have done to build stability, what has worked in their free and fair
elections, and why they are a good development partner for the UK. His decision
is a brave one and the right one.
My hon.
Friend the Member for Banbury asked me whether Somaliland’s position will be
enhanced by attending. I believe that it will. President Silanyo will have a
chance to speak. He will talk not about independence for Somaliland, but about
what Somaliland can do to enhance the peace process in Somalia and about what
is happening on his doorstep. By coming on to the international stage, he will
meet a large number of international statesmen and Heads of State. He will be
able to explain to them what he has done that has worked in Somaliland and why
it has been so successful. I take on board what my hon. Friend said about the
Somaliland development corporation and the role of the private sector.
