INTERVIEW WITH DR. ALI SAID FAQI: SOMALI AMBASSADOR TO THE BENELUX AND THE EUROPEAN UNION

June 27, 2014

Editor’s Note: Besides the array of news and analysis covered on a daily basis by WardheerNews, getting to know the views and ideas of Somali diplomats, distinguished figures, erudite scholars and academicians, political doyens, and individuals and organizations having the desire to make effective changes to the beleaguered, impoverished, and war-ravaged Horn of Africa nation of Somalia has been WardheerNews’ burning desire for close to a decade. The following is an exclusive interview conducted by  our own Adan Makina covering wide-ranging and fascinating topics with Ambassador Dr. Ali Said Faqi, Somalia’s Ambassador to the Benelux and the European Union.
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WardheerNews (WDN): Ambassador Ali Said Faqi, Somalia’s new Ambassador to the EU and Belgium, first welcome to WardheerNews. You hold one of the biggest ambassadorial responsibilities for the Somali nation. Did your appointment to these two positions come to you as a surprise?

Amb. Ali Faqi, Somalia’s ambassador to Belgium and EU

Amb. Ali Said Faqi: Yes, indeed it was a complete surprise, unexpected and out of nowhere.   However, I should admit that I had interest to join politics one day in my life time, but I have never dreamed of becoming a diplomat; it was something that never crossed my mind.  Having said that, I am honored to be the Ambassador of Somalia to the Benelux and the European Union.

WDN: Could you share with us your background? 

Amb. Ali: I have a PhD in Toxicology and my research interest is on preclinical drug development with specialty on reproduction and birth defects.  Here are some of my highlights:

I am a Senior Director at a private research institute. I also hold an adjunct associate professor at Wayne State University, School of Medicine, Department of Obstetrics and Gynecology.

I am a Diplomate of American Board of Toxicology (DABT) and a Fellow of the Academy Toxicological Sciences (ATS).  Currently I am an Associate Editor of Reproductive Toxicology Journal and a member of Editorial Board of Open Access Journal of Science and Technology and a member of the Scientific Advisory Board of the Alzheimer’s Art Quilt Initiative (AAQI).  Moreover, I served on the Board of Scientific Counselors (BOSC) Computational Toxicology at the United States Environmental Protection Agency (US EPA) from September 2009 to September 2010.

I am an ad hoc scientific reviewer for several scientific journals including Regulatory Pharmacology and Toxicology, Toxicology Journal, System Biology in Reproductive Medicine, Pesticide Biochemistry and Physiology, PLoS ONE and Birth Defects Research Part B: Developmental & Reproductive Toxicology, and Drug and Chemical Toxicology. Other positions held include a past president of Michigan Society of Toxicology and a past president of Toxicologists of African origin.

I have published over 100 scientific papers and reports. I am an editor of a text book “A Comprehensive Guide to Toxicology in Preclinical Drug Development”, a book published by Elsevier in December 2012 and an author/co-author of 10 book chapters. 

WDN: What led you to be involved in politics since you have a science academic background? 

Amb Ali: Let us not forget that since early 2000 shortly after I came to the USA, I was an active member of the Somali Diaspora. I joined Pan-Somali Council for Peace and Democracy(Israaca). Here I met several brilliant Somali intellectuals who still remain as my true fiends.  In principle Israaca was a great political organization aimed at defending the noble cause of Somalia. Unfortunately, our deeply rooted mistrust and lack of experience has led to the demise of Israaca. Afterwards it is not a secret that I became a strong advocate of the plight of the people in Benadir, Lower Shebelle and Jubba. It is in my blood that I detest human right abuses. My activism has helped shape my political views and I strongly believe Somali unity is the only way forward. Therefore, politics was something I always had in my heart.

Nevertheless, I am much concerned about the current state of the Somali affairs because it is almost impossible to reverse the trend.  Besides political wrestling that has constantly paralyzed our nation, there is completely lack of capacity in all institutions. It is not that we don’t have educated people in these institutions; it is the mentality of the people that is devoid of accountability and work ethics.

WDN: WardheerNews has learned that the Somali diplomatic mission residency located in Brussels was in such a great mess since the main administrative building was in a dilapidated condition.  Were you able to reverse the ramshackle state of the said building in Brussels, Belgium? 

Amb. Ali: First and foremost please allow me to deeply thank the military regime of Somalia for acquiring these two buildings (the Chancery and the Ambassador’s residence) in Brussels, Belgium.  These two properties have not been taken care of for the past 23 years. This has resulted in structural damage of large proportion.  We initiated renovating the Chancery with loan money and in a few months the Embassy will have few office spaces and a meeting room.  The residence is still occupied by a Belgian family, but I expect them to move out before the end of this month. It looks like, however, the damage of the residence building is so deep that it would require demolishing the entire building and replacing it with a newer one. It is in my priority list to rehabilitate these buildings before my tenure time expires.

WDN: As the Somali ambassador to the EU, what are your main responsibilities? And do you oversee other Somali missions within the EU? 

Amb. Ali: My responsibility as an ambassador is to represent the government of Somalia in all meetings at EU, ACP, African Union, Arab league, IGAD, and in one-on-one government settings; involve in diplomacy, oversee all of the other diplomats and local staff, enhance the exposure of Somalia, defend the interest of Somalia, and help Somali citizens in need.

No, I don’t oversee other Somali missions in EU besides the ones that I am accredited to. 

WDN: The Somali nation is experiencing turbulent times. How do you see European involvement in resuscitating Somalia politically, socially, and economically?  

Amb. Ali: Europe Union is pretty much determined in helping Somalia. It is actively involved in all projects aimed at reviving Somalia, whether it is in the security sector, fighting piracy, justice reform, constitutional revision, building federal states institutions, reconciliation, economic development, food security, etc. The European taxpayers are demanding concrete results; they want to see their money well spent for the wellbeing of the people of Somalia. We need to grasp this opportunity and benefit from it.

Unfortunately, any political, social and economical progress made in Somalia is always deterred by the pandemic political crisis that has afflicted our country for almost a quarter of century. In the history of every nation that went to civil war, it’s the political will of its citizens that revived those nations; Somalia will not be an exception. No matter how much money the world donates to Somalia, nothing can be attained until we strongly stand together and collectively rehabilitate our nation.

WDN: EU and other countries pledged 2.4 B Euro for the reconstruction of Somalia through the agreement of the New Deal on Sept 16, 2013. This fund has been suspended due to allegations of corruption and lack of transparency. What can you tell us about the status of the New Deal Funds? 

Amb. Ali: The pledges have not been suspended but delayed due to lack of transparent public financial system in our country. The Somali government has committed itself to working with the World Bank to create a system of banking and financial institutions that have checks and balances. This is expected to be completed soon.

WDN: Many people believed members of the delegation from the Somali Federal government for the New Deal, led by President Hassan, were selected through corruption and nepotism and that many had no experience in government affairs. Since you were among those present at the meeting, what can you tell us about such allegations? 

Amb. Ali: I disagree with this allegation. The delegation was composed of the President’s Staff, ministers, parliamentarians, regional leaders and members of the civil society.  However, I am not surprised as negative rumors run Somalia and polarize our society and unfortunately there is nothing that can be done to contest it mainly because there is no effective journalism that can take the story and seek the real truth.  I like to share a personal experience that I witnessed with the Somali media. During the New Deal summit one of the Somali websites ran a commentary accusing me of being a traitor simply because I happened to be an Ambassador of Somalia at the time while the commentator (he/she) was opposed to the New Deal. Do I take this serious? Absolutely no, but I wish to see any accusations against public figures thoroughly investigated; sadly I don’t expect this to happen anytime soon. 

WDN: The current Somali administration is said to be run by incompetent people with AID dependency mentality. Do you believe those who are in position of power are capable of moving Somalia forward? 

Amb. Ali: Moving Somalia forward is not an easy mission, although many in the public may pretend so.  Leadership is a daunting task particularly for countries like Somalia where anarchy and impunity have dominated the lives of the people for over two decades. There is a deep mistrust in our society which then feeds to a negative perception for any leadership.  We need to understand that leaders come and go consequently the public does not need to waste time with individuals in the leadership, but they need to push pressure on the government in building strong institutions. Without strong institutions in place a president or a prime minister will not have any power to fulfill their public and political duties. As a result they will be seen as weak and incompetent.  Regrettably, this is the scenario that is currently prevailing in Somalia. I am confident that President Hassan and his PM are good people; let us give them time and space to lead the country.  

WDN: Al-Shabab still controls large parts of Southern Somalia such as the coastal town of Brava which serves as their main strategic base and headquarters. Why can’t the government with the support of AMISOM re-take such an important city?   

Amb. Ali: Experience has shown that military solution is not always the right remedy because securing peace and delivering public services is not the task of the military.  That is why I believe in the liberation plan of the Al-shabab controlled territories the government should include the immediate installation of a strong civil administration with a strong police force that should tackle the vacuum left by the defeat of Al-shabab. The government should also seek public support and funding to aid the transition to peace prior to launching a military campaign.

WDN: How do you perceive Somali political participation, acculturation or assimilation into European culture? 

Amb. Ali: Somalia and Europe have different history, social and political culture; however, there is a lot to learn from Europe. The European Union is an economic and political union of 28 European countries. The EU has enhanced the social, cultural, economical and political integration of European countries.  Europeans may share borders, but have different languages, cultures and traditions. Somalia with a homogenous population share the same language and religion and yet the acceptance and tolerance among its citizens is not something to be desired. In that regard Somalia can learn a lot from the European integration process.  

WDN: Do you have any estimate figure of the number of Somalis in the EU and Belgium in particular?

Amb. Ali: I don’t have an estimate number of Somali migrants in EU, but they may exceed or equal a quarter of a million. In Belgium the estimate is about 2,000 people.

WDN: What were you able to accomplish for the duration you have been Somali ambassador to the EU and Belgium respectively?

Amb. Ali: I don’t know if I can say I have accomplished a lot during my short time in the office, but I have a clear objective which I would like to push hard. As someone who is representing Somalia at this critical period of its history, I have no space for failure. I am committed to changing the Somali image and perception by exhibiting integrity, accountability and strong work ethics. 

WDN: How is your relationship with the Somali Diaspora in the EU? 

Amb. Ali: I am towards building a good relationship with the Somali Diaspora in Belgium and the Netherlands. I have an open policy and my door is open to all, and I have nothing to hide. I like my fellow countrymen and women to conduct themselves kindly and be law abiding citizens in the countries they reside as they need to understand the consequences bad behavior will have for the image of Somalia.  

WDN: Thanks for taking the time to share your views and ideas. 

Amb. Ali: My pleasure.

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Analytical Paper

Introduction

In recent times, states in modern democracies have been having hard times grappling with the loss of revenues mainly because of limitations placed on them by the federal government or because of the loss of sales taxes as a result of the proliferation of internet business.  Since the last two decades, business over the internet has been skyrocketing such that it has become easier for buyers to conduct business at the convenience of their homes while saving millions of dollars of sales tax. This modern business venture has had adverse repercussions on the smooth running of state administrations whose revenues have been dwindling slowly over the years. Besides property taxes, sales taxes play an important role in the administration of state governments.

Ideal State Taxing System

Finding an ideal economic system for a state confounded by loss of revenue resulting from dwindling internet sales and federal government limitations can be a daunting task for a novice economist struggling with economic terminologies and financial understanding. Beginning with the era of Adam Smith, the man regarded by many economics as the father of capitalism and modern economics, economists have been struggling to find ideal government or state taxation system. The manner of taxation applied by states in the United States reveal differing economic foundations.

Human search for material affluence and political independence is what has been accelerating states’ pursuance of economic stability and encompassing tranquility since the foundations of economics first evolved and democracy became a global phenomenon worthy of embracing. While many would come with convincing and differing ideal state taxing system, in essence, there is no ideal state tax system that is currently unanimously agreed upon by global economists. The best a state can do is to have a grasp of taxes that obstruct growth and investment. Taxes on consumption, value-added taxes, and property taxes such those on immovable property have been found to be the least harmful to growth and investment while taxation on franchise and corporate taxation, taxes on business transactions, taxes on personal income and gross receipts have the hallmarks of having tremendous positive impact on growth and investment.

There are four principles that are tied to taxation. The first one is neutrality which entails avoiding penalizing individuals and businesses on the basis of their income such that the taxpayer is deprived of the right to luxury. The second one is visibility which denotes to mean government transparency so that taxpayers have the visibility of government operations in terms of how taxation is administered. Obscuring the nature of tax deductions by the government would be unconstitutional as the citizen has the right to know government tax management and operations. The third one is fairness which means people should pay taxes with fairness with the poor and rich each paying according to their means. The fourth principle is simplicity which simply means an accurate measurement of income which should be easy to administer.

The City of New York generates revenue from four sources: Personal income tax, property tax, corporate tax, and general sales tax (Edgerton, Haughwout, & Rosen, 2004). When states find it impossible to handle dwindling resources and economic downturn, the best its administrators can do is to devise plans and techniques such as imposing austerity measures on expenditure and other revenue generating procedures such as raising taxes on properties, elevating general tax, and income tax to overcome the downward economic slide. Because it will be futile for a state to embark on taxing loyal citizens without making formal arrangements with the public through consultations, navigating other avenues would produce significant results.

Attracting business conglomerations and charging reasonable fees would be an important step in securing the necessary revenue needed for the upkeep of city operations. Cutting state expenditure through budgetary cuts could save states struggling with withering economies. The misuse of funds by state officials and mushrooming of shadowy programs often lead to financial discrepancies that may be harmful to state financial resources. Raising other taxes other than sales tax could be beneficial for any state since revenue generated from taxes can be applied to social programs and other public goods and services that demand immediate resuscitation.

A thorough auditing of all state income from taxation will have to be thoroughly scrutinized and document in government ledgers. Having a means and ways committee and employing an appropriation committee could be an added advantage since it will be helpful for the state to overcome the horrors of misappropriation of funds. The execution of a state’s budget can be positively maintained if preventive controls are enforced, when therapeutic or diagnostic process is executed, and feedback controls such as making corrections to the budget through the performance of constant budget preparations and reviews (Mikesell, 2011). Executing a dynamic tax collection system and employing well experienced taxmen to manage the tax system will undoubtedly enhance economic growth and help deter embezzlement.

Penalizing tax evaders sends a clear signal to the rest of society that may be tempted to swindle the state of its hard-earned revenues. According to Hyman (2011), when people appear to change behavior with the intention of avoiding tax liability they are engaging in tax avoidance while tax evasion is mainly not complying with existing tax laws and failing to pay due taxes. Internet sales have been skyrocketing in recent years and with the death of Marketplace Fairness Act followed by other bipartisan support may bring in new regulatory measures to boost internet sales tax collection by states.

The Market Fairness Act which is expected to be resuscitated as soon as legislation is passed will allow states to collect internet sales tax from web-based business transactions. Fear of impeding interstate commerce has been the cause of the 1967 and 1992 U.S. Supreme Court Decisions that shielded state sales tax collection (Klein, 2013). What has become known as e-commerce in the U.S. has transformed into a gigantic business a force to reckon with and a venture that has the power to penetrate any region. The consumer should be responsible for the payment internet sales to the state. Many U.S. states are reporting billions of dollars loss of sales tax to the internet and there is little chance these lost monies will be recovered from consumers and internet businesses as long the Supreme Court ruling remains defunct. Despite being dead for over a decade, internet sales tax legislation is expected to be revived soon.

States have many ways of garnering alternative taxes. One example is the lottery tax which could be helpful for states to cover unconventional expenses in the absence of the sales tax. Lottery taxation, according to Oana (2006), is gaining ground in countries such as Romania where there is a plan to tax lottery companies a 10% levy for financing social assistance programs. Even Casino owners are also not exempt from this venture imposed by the government of Romania. Alternative state taxation, according to Mikesell (2011), in case of economic strangulation, include state lotteries and liquor stores that are government-owned utilities and often fall under fiscal monopoly.

Another way for government to generate revenue is through user charges that benefit specific individuals as they are voluntarily purchased from the state. Also, user fees through the sale of licenses help states generate revenue. States can generate revenue from charging the public for the multifarious services it provides or allows to operate. This includes fees charged for operating massage parlors, motor vehicle operation, and hunting licenses. Such licenses have expiration dates thereafter making business operations illegal until the license is renewed and fees paid fully. There are restrictions often placed on local governments by states depending on how much revenue they can generate on their own. State corporate licenses generated a staggering $10 billion in 2008 (Mikesell, 2011). States enjoy significant financial incentives generated from the sale of vehicle. In that same year, according to Mikesell (2011), states generated $49 billion from the sale of general sale of licenses.

User charges, according to Mikesell (2011), have four advantages that include allowing users to demand or register for public service, dramatically improving financing equity for select services, improvement of operating efficiency, and finally, user charges can make dramatic improvement cost-and-price signals for the private market. User charges allow consumers to demand efficiency and equity. However, there are limitations to user charges since non-payers are excludable for the services provided through the user charge. Beneficiaries are not allowed to pay for user charges if the service provided has welfare elements in it. The revenue collected from user charges may be questionable if the charges are substantially beyond the reach of the disadvantaged. Public resentment of exorbitant charges may be cause for alarm and lead to political involvement.

The operation of liquor stores is somehow a different method of monopoly and is evident in seventeen states. It is a distinct monopoly because the liquor sold by these states is distilled in state owned stores. Many states benefit from the proliferation of gambling enterprises. According to Mikesell (2011), as of 2007, total gross revenue from gambling had a gross total of $92.2 billion. Despite the possible moral and social concerns the industry may have on society and despite being a politically vulnerable enterprise, states generation of revenue to the tune of billions of dollars from gambling enterprises must not be taken lightly.

With state collection of casino revenue retarded by private management decision making, in general, casinos businesses are the cause of market downfalls such as the famous horse and greyhound racetracks that have been running empty in modern times. Government-operated off-track betting have been generous to state coffers in the past though there have been substantial drop in universal revenue collection in recent times due to the failure of the enterprise to spread to all corners of the nation. Currently, this formal betting enterprise is restricted to the northeast quadrant only and there is the need to have it spread all over and make it encompassing in the future (Mikesell, 2011).

States have the power to lease large tracts of land for many years and generate income from the holding of a property through leases. Leasing property to the public brings a sense of interdependence and mutual relationships that last for long periods of time as longs as the lessee and the leaser agree on certain formalities. In some instances, leases could last as long as ninety-nine years. Leasing has been a significant business venture and a form of contacting where the follow of revenue is continuous for certain duration. Leases come in various forms as they could be developed properties, warehouses, hangars, cultivable farms, and among other things, industrial machinery and permanent structures that the lessee could use for a business of choice.

Conclusion

States continue to loss unconfirmed billions of dollars through internet sales and taking away sales tax would place a heavy burden on the operation of state administrations. Because there is no agreed upon ideal system of taxation, the best opinion would be to devise ways to keep the current sales tax formality in place and further introduce legislation that would allow states to collect internet taxation. Placing further burden on states would jeopardize their efficient delivery of public goods and services.

References

Edgerton, J., Haughwout, A.F. & Rosen, R. (2004). Revenue implications of New York City’s tax system. Current Issues in Economics and Finance, 10(4). Retrieved from http://www.newyorkfed.org/research/current_issues/

Hyman, DN. (2011). Public finance: A contemporary application of theory to policy (10^th ed.). Mason, OH: South-Western, Cengage Learning.

Klein, K.E. (2013). Internet retailer vs. retailer in internet sales tax push. Retrieved from http://www.businessweek.com/articles/2013-01-10/its-retailer-vs-dot-retailer-in-internet-sales-tax-push

Mikesell, J.L. (2011). Fiscal administration: Analysis and applications for the public sector (8^th ed). Boston, MA: Wadsworth Cengage Learning.

Oana, D. (2006). Lottery again must pay 10 percent social assistance tax. Knight Ridder Tribune Business News, Retrieved from http://ezp.waldenulibrary.org/login?url=http://search.proquest.com.ezp.waldenulibrary.org/docview/465493733?accountid=14872