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Foreign Aid, Italy and the Somali Fiasco:
May 9, 2008
Remember the warlords of Somalia and Liberia, Mohamed Farah Aidid and Charles
Taylor, who set out to liberate their respective countries of tyranny? How
genuine was their cause?
Research shows that the late Aidid might have had a more personal ulterior
motive for waging a civil war to oust the former and late dictator, Siad Barre,
whom Aidid once served. Barre's regime developed a cozy relationship with
Italian Socialist Party, whose leader, Bettino Craxi, became the Italian prime
minister in September 1985. The relationship was nurtured by the Italy-Somali
Chamber of Commerce, which brokered many of the Italian-sponsored construction
projects in Somalia in the 1980s. But kickbacks became a routine part of doing
business through the Chamber. According to Wolfgang Achtner, an Italian
journalist, "In a lawsuit filed against Craxi and Pillitteri in the spring of
1989, General Mohamed Farah Aidid, a former aide to Siad Barre, alleged that the
Socialists had promised him and another Somali official a `50-50 split' of the
10 percent commission on all deals settled through the Chamber. The two Somali
claimed they were owed billions of lira" (The Washington Post, January 24, 1993,
C3).
Miffed, Aidid set out to get even. It soon became apparent that the liberation
of Somalia and the restoration of true freedom was the least among his
priorities. After Barre was ousted in January 1991, Aidid turned his attention
to relief aid, extorting payments for taxes and protection from food relief
agencies. In 1995, the World Food Program pulled its staff out of bandit-ridden
Mogadishu. The aid agencies that were helping feed starving Somalis became the
target of warlords and roving bandits, intent on wringing more money out of
them. The United Nations exited also in 1995, ceasing its UNISOM operations and
pulling its peacekeepers out in disgust.
When relief aid as a source of revenue evaporated, Aidid turned his attention to
the lucrative banana export trade to Europe . A "banana war" erupted between
Aidid and another Somali warlord, Ali Hassan Osman, known as Atto. Merca, the
scene of the fierce fighting in 1996, is a small and ancient port about 52 miles
south of Mogadishu. Two foreign firms renovated the port, an Italian company by
name of Somali Fruit and an American company called Sombana. "The two companies
paid Aidid 20 cents for every carton they export. That comes roughly to about
$800,000 a month during the peak season from April to August. Additional levies
bring in an additional $200,000 to Aidid's coffers each month. Fighting flared
again in March, 1996, when Atto demanded that the warlord either share the
revenues from Merca or see that port closed (The African Observer, 9-22 May
1996, 12).3
Copyright © 1993 The Washington Post
January 24, 1993, Sunday, Final Edition
The Italian Connection: How Rome Helped Ruin Somalia
By Wolfgang Achtner
DATELINE: ROME
The agony of Somalia has its roots in the endemic political corruption of Italy.
Throughout the 1980s, Italian politicians and businessmen used the country, once
a colony of Italy's, as a playground for huge construction projects that either
did little to help the local population or actually disrupted and damaged Somali
society.
"Italy is definitely responsible for the tribal warfare and the genocide in
Somalia," says Francesco Rutelli, a congressman for the environmentalist Green
Party, which has played a leading role in exposing what has become a scandal in
Italy. The United States, while not deeply involved in Somalia, was well aware
of what was going on. Two U.S. ambassadors to Rome, Maxwell Rabb III and Peter
Secchia, relayed Washington's approval of Italian policy in the Horn of Africa
in the late 1980s, according to Western diplomats and Italian officials.
The reality of Italy's cynical role in Somalia is clear from documents made
available to Parliament by the Italian Foreign Ministry. They show that Italy
sponsored 114 projects in Somalia between 1981 and 1990, spending more than a
billion dollars. With few exceptions (such as a vaccination program carried out
by non-government organizations), the Italian ventures were absurd and wasteful.
Approximately $ 250 million was spent on the Garoe-Bosaso road that stretches
450 kilometers across barren desert, crossed only by nomads on foot. More than $
40 million was spent to build a brand new hospital equipped with sophisticated
machinery and operating rooms, in Corioley, south of Mogadishu. Since the
Somalis were unable to run it, the hospital was allowed to fall to pieces. The
Italian government paid about $ 95 million for a fertilizer plant in Mogadishu
that never became operational. The Italians even established a University of
Somalia -- despite the fact that 98 percent of the population is illiterate. The
Italian professors received salaries between $ 16,000 and $ 20,000 per month.
"If you consider that from 1981 to 1990 Italian aid to Somalia was almost equal
to 50 percent of the country's [Somalia's] GNP and that for years Italy was the
major donor of aid to Somalia," says Rutelli, "it's easy to see what a negative
influence we had and just how great our responsibilities are."
Piero Ugolini, a Florentine agronomist who worked for the technical cooperation
unit of the Italian Embassy in Mogadishu from 1986 to 1990, says that a majority
of Italian cooperation projects were carried out without considering their
effects on the local populations. The result, he says, were increasing social
tensions that led to the civil war. In February 1988, for example, Italy donated
more than $ 4 million to set up a joint venture company that would buy cattle
and sheep from the pastoral populations. The animals were fattened and exported
to provide the Somali government with a source of hard currency. One year later,
Siad Barre sold 3,500 head of cattle to the Yemeni army, in exchange for weapons
used to fight his rivals, according to Ugolini.
"The Italian aid program was used to exploit the pastoral populations and to
support a regime that did nothing to promote internal development and was
responsible for the death of many of its own people," Ugolini says. Ugolini
points out that the Italian authorities failed to discourage the use of what he
calls "the modern equivalent of slavery" at the former "Duca degli Abruzzi" farm
in Johar. More than 3,000 people were employed every year at the farm; most of
them came from a prison located in the midst of the sugar plantation. Other
workers were "hired" after lists were drawn up during meetings between the
director of the farm, the political police, the leaders of nearby villages and
the unions. The average pay was between 500 and 700 lira per day, about 50
cents.
Behind these misbegotten projects lay old-fashioned corruption. The Italian
construction and engineering companies who were awarded lucrative contracts for
the projects provided kickbacks to the political class in Rome and local
politicians. The Italian taxpayer footed the bill. All the political parties
shared control over the aid and development projects in exactly the same way
that all jobs in the vast public and semi-public sector were divided up.
Ethiopia, another former Italian colony in the Horn of Africa, was awarded to
the Christian Democrats. The Socialist party got Somalia.
The Socialists' long affair with Siad Barre had its roots in the early 1970s,
when the future dictator had embraced socialism and vowed to carry out a
revolutionary transformation of the Somali pastoral society. At first, the
Italian Communist Party embraced Barre. Party officials, leftist intellectuals
and sympathetic businessmen all frequented Somalia. But this flirtation ended
abruptly in the first months of 1978, after Barre attempted to grab the Ogaden
region from Ethiopia. The Somali invasion ended in defeat and humiliation. Barre
broke off with Moscow and renounced "scientific Socialism."
In October 1978, the Italy-Somali Chamber of Commerce opened in Milan, the first
act of a new political alliance between the Somali Socialist Revolutionary Party
and the Italian Socialist Party. The party's new leader, Bettino Craxi, was
seeking to make the Socialists a force to be reckoned with. His brother-in-law,
Paolo Pillitteri, was the president of the Chamber. The Chamber brokered many of
the Italian-sponsored construction projects in Somalia in the 1980s.
Kickbacks became a routine part of doing business through the Chamber, according
to a lawsuit filed against Craxi and Pillitteri in the spring of 1989. Gen.
Mohamed Farah Aidid, a former aide to Siad Barre, alleged in the suit that the
Socialists had promised him and another Somali official a "50-50 split" of the
10 percent commission on all deals settled through the Chamber. The two Somalis
claimed they were owed billions of lira. A civil court in Milan dismissed the
case, ruling that it was impossible to confirm the existence of an agreement to
split the kickbacks without any written evidence. Aidid, whose name means "he
who doesn't tolerate insults," is one of the two most powerful warlords in
Somalia. Not surprisingly, he protested loudly when Italian troops returned to
Somalia last December as part of Operation Restore Hope.
The corrupt relationship between the Italians and Barre, which began in 1978,
flourished after 1983 when Craxi became prime minister. The Socialists flooded
Somalia with millions of dollars in aid. Siad Barre obtained arms, military
advisers and trainers for his armed forces. In September 1985, Craxi became the
first Italian prime minister to make an official visit to Somalia, and he
promised Siad Barre aid worth approximately $ 450 million over the next two
years. Barre returned the visit and twice came to Rome, where he was received
with all honors in 1986 and 1987. When Italian President Francesco Cossiga
received the Somali dictator at the presidential palace in 1987, he
congratulated Siad Barre, who had just been "re-elected" president with over 99
percent of the vote. On the Somali side, Barre's eldest son allegedly handled
all the money, 48-year-old colonel Hassan Mohammed Siad, who had an apartment in
the Hotel Raphael in Rome -- the same hotel where Craxi had his permanent
residence in the Italian capital. During these years, many members of the Barre
family (the dictator had five wives and at least 30 children) acquired property
and bank accounts in Switzerland. On the Italian side, the list of beneficiaries
reads like a who's who of major construction, engineering and communications
firms.
By the late 1980s, the Italian government had lost touch with reality in
Somalia. "We obviously had no idea of what was going on in Somalia and until the
very last moment we tried to save Siad Barre," says Francesco Rutelli. In May
1988, rising dissatisfaction with Siad Barre's regime led to rebellion in
northern Somalia. The dictator crushed the revolt by destroying three cities;
15,000 people died. Back in Rome, opposition politicians demanded an end to the
cooperation with Somalia and were rebuffed. Detailed reports of tortures and
atrocities committed by the Barre government, released by Amnesty International,
had no effect on the Italian government. Rome maintained cordial relations with
Siad Barre after the assassination of the bishop of Mogadishu, Salvatore
Colombo, in July 1989, and even after an Italian biologist was beaten to death
in the headquarters of the Somali secret services in June 1990. When members of
the opposition complained in Parliament that Italy was supporting dictatorships,
Socialist Foreign Minister Gianni De Michelis answered: "If we were to abandon
all those states run by dictators in Africa there would be no one left to
cooperate with."
Italy lost its final chance to win back some friends in Somalia when, just
before Siad Barre was forced to flee Mogadishu in January 1991, Foreign Minister
De Michelis tried to convince representatives of the rebel movements in Rome
that a new political scenario must include the former dictator.
The tragedy of Italian involvement in Somalia, according to Rutelli and others,
is that Italy was in a position thoughout the 1980s to put enormous pressure on
Siad Barre and force him to change his ways. But every time he and the Greens
called on the government to link the concession of Italian aid in Somalia to
human rights and reforms, they were rebuffed by the powerful interests around
Craxi.
Now Craxi and Pillitteri are at the center of a huge corruption scandal in
Milan. Investigating magistrates claim that the Socialist Party in Milan
orchestrated a huge web of corruption and kickbacks paid to local officials,
belonging to almost all the political parties, in exchange for lucrative public
contracts. The magistrates have asked Parliament to lift the Socialist leader's
immunity from prosecution. More than 90 politicians and businessmen, many of
them with close personal ties to Craxi, have been arrested, and a number of
major construction companies like Cogefar and Lodigiani, which carried out some
of the biggest jobs in Somalia, have also been implicated.
In Somalia, the total breakdown of civil order after Siad Barre's departure
forced humanitarian agencies to withdraw and prompted the United Nations to call
for U.S. intervention. When the U.S troops arrived via boat in the harbor of
Mogadishu, they unknowingly passed by the rotting remains of three boats that
had been paid for by an Italian government program to develop the fishing
industry. The boats had never been used.
Wolfgang Achtner is a journalist in Rome.
Return to NomadNet
Stories and People
How Western Aid Helped Destroy Somalia
By George Ayittey
Somalia is probably the most egregious example of Western patronage gone
berserk. Huge amounts of economic relief aid were dumped into Somalia,
transforming the country into the "Graveyard of Aid." But the massive inflow of
food aid in the early 1990s did much to shred the fabric of Somali society.
Droughts and famines are not new to Africa, and most traditional societies
developed indigenous methods of coping. Those methods were destroyed in Somalia,
and the country became more and more dependent on food imports...
Food aid depressed grain prices giving local farmers fewer incentives to farm.
It became easier for them to trek to the refugee centers for their food rations.
The young, armed with AK-47s, saw an opportunity. Relief supplies could be
looted. One Somali, Abdirahman Osman Raghe, complained bitterly, "We would talk
about how food aid destroyed our systems. For many years we weren't dependent on
food aid. We had droughts before."
Somalia had had a well-developed credit system. Nomads would come to urban
centers during times of need in order to borrow money, which would then be
repaid during good times. Such credit systems, indigenous to Somalia, were
largely destroyed by massive aid sent by Western nations...
Piero Ugolini, a Florentine agronomist who worked for the technical unit of the
Italian Embassy in Mogadishu from 1986 to 1990, revealed that most of Italian
cooperation projects were carried out without considering their effects on the
Somali population. "Italian aid programs [were] used to exploit the pastoral
populations and to support a regime that did nothing to promote internal
development and was responsible for the death of many of its people," he said.
Italian construction and engineering companies that were given lucrative
contracts for projects in Somalia provided kickbacks to politicians in Rome and
Mogadishu...
Somali president Siad Barre used this aid to purchase arms and military advisors
for his armed forces, which declared war against their own people. Northern
Somalia , a hotbed of opposition to Barre's tyrannical rule, was bombed on
several occasions, even with napalm. Barre's eldest son, Colonel Hassan Mohammed
Barre, who handled aid money, acquired property and bank accounts in
Switzerland...
When the Somalia crisis erupted in 1991, a swarm of foreign non-governmental
organizations descended on the country. Why so many? According to U.S. AID
official Michael Maren, "There was money available from donors, so they came.
The Somali government loved it as well. More NGOs meant more headquarters in
Mogadishu. Most of the major landlords in the city were relatives of the
president [Barre] or other high government officials."
Very quickly the aims of the humanitarian mission became perverted. Each group
or organization involved in the relief efforts saw in the famine/war crisis an
opportunity to advance its own sectarian agenda. Refugee aid became such an
important source of foreign exchange that the Somali government grossly inflated
the number of refugees. According to US AID official Maren:
The million and half refugees who were allegedly in Somalia didn't exist. The
Somali Government liked to say 1.5 million. Journalists liked to say 1.5
million. It looked good and added a weightiness to their stories. Several pres
reports even took the liberty of pushing the figure up to 2 million. My own
rough estimates from the time spent in the camps made me suspect that even
400,000 was generous.
Nor was the Somali government interested in resettling or solving the refugee
crisis, as that would eliminate its source of foreign currency... In addition,
relief aid provided Somali soldiers with a means to supplement their income.
A large part of donor funds often goes to feed a hungry bureaucracy. Aggressive
lobbying campaigns often are launched to provide justification for the
continuation of food relief aid...
How much of the food actually reaches the needy? In the case of Save the
Children, in 1994 less than 50 percent of the total of sponsors' dollars
actually went in grants to field programs. Of that amount, about half was given
in grants to other organizations, which also had their own salaries and
expenses, to actually implement relief programs.
Even then, not all the programs on the ground were defensible. Michael Maren,
the US official, provides examples of such "idiotic projects":
Oxfam was teaching refugees to grow onions and cabbages and peppers in the
refugee camp. The two Oxfam agriculturalists discussed their dilemma nightly:
The idea behind their project was to make refugees more self-sufficient. But if
the refugees were going to return to their nomadic way of life, these skills
wouldn't be very useful. And if they were going to settle down and become
farmers, they'd need to know a lot more about agriculture than how to grow just
a few cash crops. The Oxfam team drank their whiskey every night and wondered
aloud why they were doing what they were doing that day."
Because of Africa's social system of extended families, there is no such thing
as an orphan. A child without parents can always find an aunt, cousin or some
distant relative to serve as a guardian. Yet Maren points to "a Canadian group
[that] arrived one day looking for orphans. They checked into the local office
of the [Somali] National Refugee Commission and were given permission to collect
whatever orphans they found. Thirty or forty children were gathered together and
loaded onto a truck and carted off to an orphanage in Mogadishu, while their
clan elders protested."
The
Summary Of The Project And Bilateral Aid To Somalia From 1985-1990
_______________________________________________________________________________
Excerpted from Africa in Chaos by George Ayittey of the Free Africa Foundation .
George Ayittey is a professor of economics at American University and president
of the Free Africa Foundation.
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