Abdifatah Ahmed Ali and Aaron L. Mukhingo / Elixir Fin. Mgmt. 99 (2016) 42775-42784 42775 1. Introduction Economic growth and political stability are deeply interconnected (UNDP, Human Development Report , 2010) on one hand, the uncertainty associated with an unstable political environment may reduce investment and the pace of economic development. On the other hand, poor economic performance may lead to government collapse and political unrest. However, political stability can be achieved through oppression or through having a political party in place that does not have to compete to be re-elected. In these cases, political stability is a double edged sword. While the peaceful environment that political stability may offer is a desideratum, it could easily become a breeding ground for cronyism with impunity. Such is the dilemma that many countries with a fragile political order have to face (Husein, 2014.) In Global. One of the ways in which economic growth and political stability are related is in the area of investment. No company or individual, whether local or international, will feel comfortable making any kind of capital investment in any country where the political climate is characterized by upheavals and a lot of uncertainty. This is because such a risky investment would go against the main aim of making profits since there would be a marked lack of guarantee as to the safety of the investments. When local businessmen refrain from making any significant investment in their economies, such a situation will affect the economy as a whole. Foreign direct investment also plays an important role in the development of an economy. This shows a link between economic growth and stability because a country with a low rating in terms of stability will not be a source of attraction for ARTICLE INFO Article history: Received: 3 September 2016; Received in revised form: 30 September 2016; Accepted: 4 October 2016; Keywords Quality Education, Teacher Education and Training System. Factors Influencing on Economic Development of Somalia Abdifatah Ahmed Ali and Aaron L. Mukhongo Jomo Kenyatta University of Agriculture and Technology, P.O Box 81310-80100 Mombasa. ABSTRACT Somalia is a country that has experienced excessive amounts of political instability during the past decade. Somalia, like most other countries in Africa, was colonized by European nations during the late 1800s (Roth, Somalia a country in turmoil , 2004). According to United nation Development Program (UNDP), the prolonged fighting in Somalia led to massive loss of property, lives and destruction of the society (UNDP 2008). Political instability contributed to massive suffering and poverty in Somalia, there has been massive unemployment and migration of people from the country. The study guided by the following objectives, to find out whether quality education affects economic development of Somalia, to ascertain how the gross domestic product affects economic development of Somalia, to determine the extent to which investments affects economic development. This study was descriptive in nature and it will utilize cross- sectional data collected through a standard questionnaire. This study will be conducted in Mogadishu City, the capital of Somalia. The target populations of this study will be114348 residents of Hodan District (UNFPA, 2014). In order to provide valid estimates, 384 respondents will be selected with Simple random sampling and only those present at that time will be chosen. The findings it shows that quality education plays a significant role in the economic development of the country. The study showed that a large percentage of the respondents in Somalia agree that it through offering quality education to the people of Somalia that productivity of the country will improve and economic development. The correlation analysis between the independent variable indicated strong relationship between the independent variables. This indicates that the independent variables were significant enough to impact the dependent variable. There is a strong relation between higher GDP and good quality education indicated by 57.8 percent. The relationship between Higher GDP and Savings is the only way we can increase economic growth indicated by 51.9 was significant enough to influence the dependent variable. The government of Somalia should strive for education quality improvement through renovating the teacher education and training system, improving teachers' quality and teacher status, reform and adaptation of curriculum at all levels The study established that savings and investment is the only way a country can increase economic growth, for any country to achieve economic growth there must be significant savings first.Investment means an increase in capital spending, e.g. buying new machines, building bigger factories and education. For example, investing in skills and education can increase labor productivity. Investment in new technology and capital can increase the productive capacity of the economy. © 2016 Elixir All rights reserved. Elixir Fin. Mgmt. 99 (2016) 42775-42784 Finance Management Available online at www.elixirpublishers.com (Elixir International Journal)