History of Somalia (1991–2006)

Between the fall of Siad Barre's government in January 1991 and the establishment of the Transitional National Government in 2006 (succeeded by the Transitional Federal Government), there was no central government in Somalia. His government's fall sparked Somalia's history by the reasons above. The Transitional Federal Government, formed in 2004, was recognized as the central government of Somalia. Before December 2006, the TFG controlled only the town of Baidoa, the sixth largest city. The intervention of Ethiopian government forces following the rise of the Islamic Courts Union, culminating in the latter's defeat in the Battle of Baidoa, allowed the TFG to expand its control under the protection of Ethiopian troops. The TFG was at the time not able to effectively collect taxes, had no notable finances or real power base, although this is disputed by anarchists and anarcho capitalists, who contend it is not anarchy, but merely chaos, perhaps resulting from unequal distribution of power and meddling by neighbors and developed nations like the United States. The Somali experience since the collapse of the state, and especially the failure of international intervention, has offered a clear challenge to elements of conventional economic, political and social order theory and the very premises under which Western diplomacy and development agencies operate,

The international aid group Médecins Sans Frontières stated that the level of daily violence during this period was "catastrophic". While the homicide rate was significantly higher than in the US or in Europe, it was actually lower than in most of the African countries. A statistic from 2000 indicated that only 21% of the population had access to safe drinking water at that time, and Somalia 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. A more recent 2003 study reported that the literacy rate was 19%. In 2005, Somalia ranked in the top 50 percent in six of our 13 measures, and ranked near the bottom in only three: infant mortality, immunization rates, and access to improved water sources. This compares favorably with circumstances in 1990, when Somalia last had a government and was ranked in the bottom 50 percent for all seven of the measures for which we had that year's data: death rate, infant mortality, life expectancy, main telephone lines, tuberculosis, and immunization for measles and DTP." The libertarian think tank the Mises Institute also repeatedly praised Somalia, as has the Libertarian think tank the Cato Institute. Prior to the fall of the Somali government in the early 1990s, Somalia's life expectancy was approximately equal to neighboring Ethiopia. As of 2014, after a quarter of a century of minimal government, life expectancy in Somalia was 9 years behind Ethiopia. However, both of them improved drastically.

In the absence of functioning governmental institutions and regulations, they were supplanted by the private sector and clan law. Commentators identify evidence of areas where the private sector adapted to the stateless environment. A 2004 World Bank study of the Somali 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." The New York Times referred to post state Mogadishu as "the ultimate example of deregulation," Installation time for a land line was just three days, while in neighboring Kenya waiting lists were many years long. and in 2007 mobile phone penetration rates in Somalia were amongst the lowest in Africa. The Economist argued the lack of telecommunication regulation in Somalia represented "a vivid illustration of the way in which governments can often be more of a hindrance than a help" to private entrepreneurs. 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", though he also commented that he would be "interested in paying taxes" if an incoming government improved the security situation.

Since 1991 Somalia has lacked a functioning central electricity grid, but private entrepreneurs have offered electricity generation on a localised basis, typically offering a choice of daytime, evening or 24 hour electricity. Gaalkacyo, a desert town in central Somalia, was provided with streetlights by local entrepreneur Abdirizak Osman, who expanded his enterprises from telecommunications to power generators, not only lighting the town but also supplying free electricity to the local hospital. Mohammed Yassin Olad, owner of Daallo Airlines, stated that the absence of government has led to both difficulties and benefits, and commented that "corruption is not a problem, because there is no government We build the airports and we service the airports and we only fly when we are sure it's safe". Bosaso in relatively stable autonomous Puntland emerged as a regional hub and major port. A small fishing village prior to the fall of the state, Bosaso developed a lucrative import/export trade of U. S. $15 million per year out of its port during the 1990s. The population grew in eight years from 5,000 to 150,000, sustained by public services provided on a competitive basis by private enterprise, and court systems, schools and a university founded by the local community. For centuries, the Somali community, as opposed to the state, has been in charge of Islamic education in all aspects, providing financial and administrative support. ); in cases where there are state supported public schools, private schools are often coveted for their academic excellence, outperforming their public competitors in academic achievement tests. Nevertheless, this level of primary enrollment was approaching pre war levels, with secondary school enrollment also showing an increase since 1998. In the autonomous northwestern Somaliland region, the Somaliland shilling is used as currency. It hasn't been recognized as legal tender by the international community, and has no official exchange rate. It is regulated by the Bank of Somaliland, the enclave's central bank. Although the separatist authorities in Somaliland attempted to bar usage of the Somali shilling, Somalia's official currency remained the preferred means of exchange for many peoples in the region.

[[File:Bakaara Market. jpg|thumb|left|Bakaara Market in the heart of Mogadishu. In the absence of government regulation, Somali marketplaces have thrived. However, the CIA Factbook maintains that gains were made during the early 2000s; "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 and khat to the newest electronic gadgets. Hotels continue to operate, and militias provide security." This was cited by experts as a factor in the resurgence of Islamic militias in the country, prompting the latter to engage in pre emptive strikes which routed the rebel leaders and led to the seizure of Ford by the ICU. court.

The Transitional Federal Government was internationally recognized as the government of Somalia until August 2012, when it was replaced by the Federal Government of Somalia. It was established in 2004 as a successor to the now defunct Transitional National Government, and currently occupies Somalia's seat in the United Nations. The TFG is allied with the Islamic Courts Union and the Alliance for the Re liberation of Somalia, and is backed by the United States, the United Nations and the African Union. Its forces are fighting to quell the ongoing insurgency in Somalia and are attempting to gain control of the southern half of the country, as the northern regions are both autonomous and comparatively stable. As a truce, in March 2009, Somalia's newly established coalition government announced that it would implement Shari'a as the nation's official judicial system.