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Analysis of Institutional Dynamics and Their Influence on Livestock Export Trade in the Berbera Corridor of Somaliland

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ANALYSIS OF INSTITUTIONAL DYNAMICS AND THEIR INFLUENCE ON LIVESTOCK EXPORT TRADE IN THE BERBERA CORRIDOR OF SOMALILAND AHMED M. MUSA (BHR, MPA) A THESIS SUBMITTED TO THE GRADUATE SCHOOL IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN DRYLAND RESOURCE MANAGEMENT DEPARTMENT OF LAND RESOURCE MANAGEMENT AND AGRICULTURAL TECHNOLOGY FACULTY OF AGRICULTURE UNIVERSITY OF NAIROBI © 2020 DECLARATION AND APPROVAL This thesis is my original work and has not been presented for award of a degree in any other university. Ahmed Mohamed Musa Date This thesis has been submitted with our approval as the University supervisors: Dr. Oliver Vivian. Wasonga Date Department of Land Resource Management and Agricultural Technology, University of Nairobi 25/08/2020 Prof. Dr. Tobias Hagmann Date Department of Social Sciences and Business at Roskilde University, Denmark 26/08/2020 Dr. Nadhem Mtimet Date International Livestock Research Institute (ILRI), Nairobi, Kenya 26/08/2020 Dr. Oscar K. Koech Date Department of Land Resource Management and Agricultural Technology, University of Nairobi ii DEDICATION This work is dedicated to my wife Nawal Abdullahi Jama, my beloved daughter Fatima Ahmed Mohamed, my mother Hinda Jama Ahmed and my family at large for their moral support and sacrifice during my study. iii ACKNOWLEDGMENTS First, all praise belongs to the almighty Allah and his beloved prophet, Muhammad (pbuh). I would like to sincerely thank my supervisors, the task of writing this dissertation has been onerous and this work would not have been possible without the continuous support, inspiration, helpful comments and critique of my supervisors: Dr. Oliver Vivian Wasonga, Professor Tobias Hagmann, Dr. Nadhem Mtimet and Dr. Oscar Koech. I must say that I could not have better and more friendly supervisors and I have immeasurable gratitude for you always. Special mention to Tobias Hagmann and Finn Stepputat for not only funding my Ph.D. study through the Governing Economic Hubs and Flows Somali East Africa (GOVSEA) research programme but also providing support, connections and valuable comments. I am indebted to you for trusting and believing in me. With your support, I was able to fulfil my dreams of earning my doctorate degree and becoming a better researcher and scholar. I want to acknowledge Professor Jesse Njoka and his team in the African Dryland Institute for Sustainability (ADIS), university of Nairobi, for managing my scholarship funding, providing administrative support and office space whenever I needed it. I also acknowledge the staff of the Faculty of Agriculture, specially from the Department of Land Resource Management and Agricultural Technology (LARMAT) for their support throughout the study. Many thanks to the research participants who offered me their valuable time and volunteered information and their views. Despite their busy schedule, many of them allowed me to sit with them for an extended period of time, and still spared time for me during the many revisits. Through their connections, I was able to meet with other research participants whom I needed. The final acknowledgment goes to my family and friends. To my wife who has been patient during my prolonged absence and busy schedule; we were blessed with our first child during my thesis write up and you spent many sleepless nights taking care of our daughter while I concentrated on writing. I share with you all the success. Thanks to my other family members and friends who may not be mentioned individually. iv TABLE OF CONTENTS DECLARATION AND APPROVAL ...................................................................................... ii DEDICATION ......................................................................................................................... iii ACKNOWLEDGMENTS ........................................................................................................ iv TABLE OF CONTENTS ........................................................................................................... v LIST OF TABLES .................................................................................................................... ix LIST OF FIGURES ................................................................................................................... x LIST OF APPENDICES ........................................................................................................... xi ACRONYNMS AND ABBREVIATIONS ............................................................................ xii ABSTRACT ............................................................................................................................ xiv CHAPTER ONE ........................................................................................................................ 1 GENERAL INTRODUCTION .................................................................................................. 1 1.1 Background ...................................................................................................................... 1 1.2 Statement of the Problem ................................................................................................. 3 1.3 Justification of the Study ................................................................................................. 5 1.4 Overall Objective ............................................................................................................. 6 1.4.1 Specific Objectives ................................................................................................... 6 1.4.2 Research Questions ................................................................................................... 7 1.5 Conceptual Framework .................................................................................................... 7 1.6 Research Limitations ..................................................................................................... 10 CHAPTER TWO ..................................................................................................................... 11 LITERATURE REVIEW ........................................................................................................ 11 2.1 Livestock Based Economy in the Horn of Africa .......................................................... 11 2.2 State Dynamics in Somalia and their Influence on Livestock Export Trade ................. 13 2.2.1 Livestock trade under the colonial state: increased commodification and institutions (1884 to 1960). ................................................................................... 14 2.2.2 Institutions and trends in livestock trade during postcolonial state (1960-1990) ... 16 2.2.3 Livestock trade after the collapse of the state (from 1991 onwards) ...................... 22 2.3 Evolution of Institutional Theory in the Economy ........................................................ 26 2.4 Research Gaps ................................................................................................................ 28 CHAPTER THREE ................................................................................................................. 30 FROM TRUST TO OLIGOPOLY: INSTITUTIONAL CHANGE IN LIVESTOCK TRADE IN SOMALILAND AFTER 1991 ...................................................................................... 30 v Abstract ................................................................................................................................ 30 3.1 Introduction .................................................................................................................... 30 3.2 Material and Methods .................................................................................................. 34 3.2.1 Study Area .............................................................................................................. 34 3.2.2 Study Sites .............................................................................................................. 35 3.2.3 Sampling Procedure ................................................................................................ 36 3.2.4 Methods................................................................................................................... 37 3.2.5 Data Analysis .......................................................................................................... 41 3.3 Results and Discussion .................................................................................................. 41 3. 3.1 Formal or Informal? Conceptualising Institutions in Livestock Trading .............. 41 3.3.2 Pre-war Livestock Trading: Complementarity, Constraints and Criticism ............ 43 3.3.2.1 Institutional performance and trade performance (1969 to 1979) ................... 44 3.3.2.2 Post-Ogaden war period (1980 to 1990): institutional and economic crises ... 47 3.3.3 Post-war Livestock Trading: Continuity, Emergency and New Constraints .......... 48 3.3.4 Defaulting on and Sanctions of Informal Contracts ............................................... 56 3.3.5 Animal Health Regulation After War: Privatization, Competition and Monopoly 60 3.3.6 Re-emerging State Institutions and the Birth of Oligopolies .................................. 69 3.3.7 Conclusion and Recommendations ......................................................................... 74 3.3.7.1 Conclusion ......................................................................................................
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