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Somalia, from 1991-2006, is cited by some as a real-world example of a stateless society and legal system. From the fall of Siad Barre's government in January of 1991 until the capture of Mogadishu by the Islamic Courts Union in June of 2006, Somalia had no significant centralized government, with large areas of the country ruled by such unrecognized mini-states as Somaliland, Puntland, and Southwestern Somalia. The remaining areas, including the capital Mogadishu, were divided into smaller territories ruled by competing warlords. In many areas there were and still are no formal regulations or licensing requirements for businesses and individuals.

Contents 1 Context 2 See also 3 External links 4 Notes

Somalia, already one of the poorest countries in the world, has become even poorer as a result of civil war.^{[citation needed]} However, some gains were made; according to the CIA Factbook during the early 2000's, "despite the seeming anarchy, Somalia's service sector has managed to survive and grow. Mogadishu's main market offers a variety of goods from food to the newest electronic gadgets. Hotels continue to operate, and militias provide security." However, Somalia at the time had one of the highest child mortality rates in the world with 10% of children dying at birth and 25% of those surviving birth dying before age five.

The international aid group, Medecins Sans Frontieres (Doctors Without Borders) stated that the level of daily violence during its anarchic period was "catastrophic." A statistic from 2000 indicated that only 21% of the population had access to safe drinking water at that time. Additionally, "adult literacy is estimated to have declined from the already low level of 24% in 1989 to 17.1% in 2001."(WB study). A more recent 2003 study reported that the literacy rate was 19% (WB study). Some believe the impact on human development in Somalia of governmental collapse and ensuing civil war was profound, pointing to the break down of political institutions, the destruction of social and economic infrastructure and massive internal and external migrations.^[1]

Others though point to evidence of areas where the private sector adapted to the situation. A 2004 World Bank study of the Somalian economy concluded that "it may be easier than is commonly thought for basic systems of finance and some infrastructure services to function where government is extremely weak or absent."^[2] Journalist Kevin Sites, after a trip to anarchic Somalia, reported: "Somalia, though brutally poor, is a kind of libertarian's dream. Free enterprise flourishes, and vigorous commercial competition is the only form of regulation. Somalia has some of the best telecommunications in Africa, with a handful of companies ready to wire home or office and provide crystal-clear service, including international long distance, for about $10 a month." Abdullahi Mohammed Hussein of Telecom Somalia stated that "the government post and telecoms company used to have a monopoly but after the regime was toppled, we were free to set up our own business." (according to a BBC report).

However, the World Bank reports only about 1.5% of the population has a telephone. One of the poorest countries in the world in 1991, Somalia remains a very poor country, yet wealth distribution appears to be more uniform than in other African countries. When extreme poverty (percentage of individuals living on less than PPP$1 a day) was last measured in 1998, Somalia fared better than wealthier West African and neighboring countries.^[2]

An essential element of anarcho-capitalist theory is that private businesses (rather than tax-funded institutions), should protect individual liberty and property. Some claim that 1991-2006 Somalia was severely lacking in such options and therefore that it fell short of being a true example of an anarcho-capitalist environment. Though some urban areas such as Mogadishu had private police forces,^[3] crime was higher in other areas according to some news reports.^[4]

Much of the legal system, and most of the educational institutions and social services, fell under the control of religious institutions, which often received significant funding and support from international Islamic charities. In 2005, these clerical organizations united to form the Islamic Courts Union, after the secular warlords began to challenge the sharia based judicial institutions. In June 2006, after the Second Battle of Mogadishu, the ICU gained control of Mogadishu and its surrounding districts. The ICU was later overthrown by the Ethiopian military with the support of the United Nations, African Union, and the United States government. After the ICU forces were chased from Mogadishu, the leaders of the Transitional Federal Parliament entered Somalia declaring themselves the rightful governors of Somalia. As of late February 2007, there was still widespread opposition within Somalia to the new government, and the government's leaders and their allies were still attempting to suppress a strong insurgency.

• Anarcho-capitalism

• Anarchy and Invention: How Does Somalia's Private Sector Cope Without Government? Something resembling rudimentary anarcho-capitalism is developing organically in Somalia

1. ^ World Bank Advisory Committee for Somalia Country Re-Engagement Note (pdf) (2003), retrieved 4 November 2005
2. ^ ^{a b} Nenova, Tatiana and Harford, Tim (2004) Anarchy and Invention (PDF) Public Policy Journal Note Number 280, Retrieved 12 August 2005
3. ^ Return to Somalia
4. ^ Ayn Rand Comes to Somalia