Telecommunication Companies and Socio-Economic Development in Puntland State of Somalia: Case Study- Golis Telecommunication Company

TABLE OF CONTENTS

DECLARATION .............................................................................................................. i

APPROVAL .................................................................................................................... ii

DEDICATION ............................................................................................................... iii

ACKNOWLEDGEMENT ............................................................................................... iv

TABLE OF CONTENTS ................................................................................................ v

LIST OF TABLES AND FIGURES ............................................................................. viii

LIST OF ACRONYMS .................................................................................................. ix

ABSTRACT ......................................................... ~ .......................................................... x

CHAPTER ONE:INTRODUCTION ........................................................................ I 1. 0 Introduction .................................................................................................. I

1.1 Background of the study ........................................................................... 1

1.2 Statement of the Problem .......................................................................... 3

1.3 Purpose of the Study ................................................................................... 4

1.4 Specific objectives ........................................................................................ 4

1.5 Research question ....................................................................................... 4

1.6 Scope of the Study ...................................................................................... 4

1.7 Significance of the study ............................................................................. 5

CHAPTER TWO: LITERATURE REVIEW ............................................................ 6 2.0 Introduction ....................................................................................................... 6

2.1 Theoretical Framework .................................................................................... 6

2.1.1 Adam Smith's Theory of Social Economic Development ........................... 6

2.1.2 David Ricardo's theory of Economic Development.. ................................... 9

2.1.3 Keynesian Theory of Social Economic Development ......................... l2

2.3 Revie of Related Literature ......................................................................... 15

2.4 Telecommunication and improvement of standard of living ................ IS

2.5 Telecommunication companies and employment creation ..................... 19

2. 6 Telecommunication on Health and Education .......................................... 20

v

CHAPTER THREE: METHODOlOGY ................................................................. 23 3.0 Introduction ................................................................................................ 23

3.1 Research design ......................................................................................... 23

3.2 Research area ............................................................................................. 23

3.3 Research population .................................................................................. 23

3.4 Sample and Sampling Technique ............................................................ 24

3.5 Data Collection Methods ........................................................................... 25

3.5.1 Documentary review ................................................................................. 25

3.5.2 Questionnaires ............................................................................................ 25

3.5.3 Interviews ................................................................................................... 26

3.7 Data Analysis .............................................................................................. 26

3.8 Limitations of the Study ............................................................................ 27

3. 9 Ethical Consideration ................................................................................. 27

CHAPTER FOUR: DISCUSSIONS OF THE FINDINGS ................................ 29

4.0 Introduction ................................................................................................ 29

4.1 Demographic Distribution of the Respondents ...................................... 29

4.1.1 Distribution ofthe Respondents by Gender ........................................... 29

4.1.2 Distribution of the Respondents by Years of Linkage .......................... 30

4.1.3 Educational Level of the Respondents .................................................... 31

4.2 Telecommunication in Improving Standard of Living ........................... 32

4.3 The Role Telecommunication in Creating Job Opportunities .............. 37

4.4 Telecommunication in Improving Health and Education .................... .40

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATION ..... 43 5.0 Introduction ................................................................................................ 43

5.1 Summary of the Findings .......................................................................... 43

5.1.1 Telecommunication in Improving Standard of Living ........................... 43

5.1.2 The Role of Telecommunication in Creating Employment... ............... .44

5.1.3 Telecommunication in Improving Health and Education ..................... 44

5.2 Conclusion ................................................................................................... 45

VI

5.2.1 Telecommunication in Improving Standard of Living .......................... .45

5.2.2 Telecommunication Companies in the Creation of Jobs ..................... .45

5.2.3 Telecommunication in Improving Health and Education .................... .45

5.3 Recommendations ..................................................................................... 46

5.4 Recommendations for Future Research ................................................. 47

REFERENCES ............................................................................................................. 48

APPENDICES .............................................................................................................. 50

APPENDIX A: Questionnaire for Employees .......................................................... 50

APPENDIX B: Questionnaire for Clients ................................................................. 54

APPENDIX D: Interview Guide for Departmental Heads .................................... 59

ABSTRACT

The study on the "Telecommunication Companies and Socio-Economic Development" was carried out in Punta land State of Somalia, with specific aims of; examining the role of telecommunication company; in improving people's standard of living; creation of employment and in improvement of health and education. A review of related literature was carried out on already existing information on the specific aims of this study as a way of comprehending the problem and enriching and supplementing the study findings. This was through quantitative and qualitative research designs under which questionnaires and interviews were administered to a sample of 100 respondents who were both randomly and purposively selected. It was established that, the telecommunication company has improved people's standards of living through; improving business performances, cementing relationships, promoting research, improving market opportunities, creation of awareness among others. The Telecommunication company has also created jobs by; recruiting on merit, building capacities of the young people, direct and indirect job creation and developing ICT. While in the health and education sectors, the company has paved way for; Corporate social responsibility; enabled on-line courses; provided scholarships construction of schools and health centers, among others. The study concluded that, although the company has created employment avenues, it should avoid duplication of roles and focus on economically sustaining jobs and by playing a corporate social responsibility role, companies should take initiative to raise awareness on shortfalls of the systems and develop a policy of crime detection. The study recommends; opening more lines for telecommunication for wider outreach; inclusive programmes; develop an implementation base linked to local problems; demonstrate transform procedures for the education and health sectors among others.