Somaliland: A Land in Limbo

Somalia's economy is dominated by trade in khat, a narcotic banned in the U.S. and much of Europe.

Eye-popping, head-buzzing khat is loved by Somali men who chew the leaves for their stimulant effect. While most of war-torn Somalia's economy is moribund, khat does a bustling trade estimated at well over $50 million annually. Doctors warn, however, that the drug is not only a drain on limited Somali resources but is also destroying lives.

What began as a way for exiled Somalis to send money to relatives at home has become a company that almost single-handedly keeps the entire war-torn country afloat.

"Remittances are a lifeline to Somalis," said Abdirashid Duale, chief executive of Dahabshiil, at his Hargeisa headquarters. "They are the main income people here receive."

Dahabshiil, a family-owned money transfer company, is a household name among Somalis. It is also Somalia's economic linchpin connecting the wealthy diaspora with the impoverished homebodies.

This September in Somalia, hundreds of thousands of people are due to take part in an election. At polling stations guarded by civilian police, they will stand in orderly lines beneath a scorching sun waiting to vote for a new leader.

Much of this country continues its relentless descent into mayhem and murder. But Somaliland, a small north-western chunk, has been trying for the past 18 years to free itself of its bigger, nastier neighbour, having declared independence when Somalia's last government, a violent military autocracy, collapsed in 1991.

Until pirates showed up on the world's media radar few people would have been able to point to Somalia on a map. That all changed in April when a gang of pirates attempted to hijack a US-flagged ship with an American crew. They failed but took the ship's captain hostage.

The days-long stand off ended with the deadly sniping of three pirates by US Navy SEALS.