GENEVA, Aug 24 (IslamOnline & News Agencies) - The United Nations humanitarian coordinator in Somalia said Saturday, August 24, 2002, that the embattled Horn of Africa nation should not be considered a lost cause, even though it has been without effective government for the past decade, news agencies reported.

The coordinator, Mawell Gaylard, told Agence France-Presse (AFP) that there was cause for optimism, given that people were mostly tired of war, the private sector was picking up, communications were good, and money was being invested in the country by its large diasporas.

"Normal things are happening in Somalia", he said.

Gaylard said the main zones of conflict were in the Puntland region of the northeast, where two local warlords are vying for power, the capital Mogadishu, where six or seven militias were fighting, and in the southern provinces of Baidoa and Gedo.

He said the fighting for control of territory and financial gain continued to have a direct impact on the humanitarian situation.

"It [fighting] has an immediate impact on the humanitarian situation. The civilians get caught up in that. If they stay, their property is looted and destroyed. If they move, they become IDPs [internally displaced persons] and more vulnerable," he said.

Out of a population estimated at just over six million during the last census in 1990, Gaylard said some 600,000 Somalis were particularly vulnerable.

"It's not a very promising situation, with an exception in the northwest, Somaliland, that is relatively stable, relatively peaceful," he said referring to the autonomous region with a population of roughly 2.5 million.

"Despite my apocalyptic description in one or two areas, there are big areas that are quite peaceful," Gaylard said.

Despite the security problems, the UN currently maintains a staff of 60 to 80 expatriates working with some 400 local employees, he said.

In the conflict zones, it strives to ensure that relief aid gets through, and provides health, education, drinking water and micro-loans mainly for women.

It is also helping establish a certification system for cattle in the hope that Middle East nations, fearful of possible infectious diseases, will lift an embargo on Somali livestock.

"We're also looking at the system of remittances from the Diaspora in the U.S., Canada, Australia and Scandinavia," he said. "These remittances suffered a setback after September 11th on suspicion of terrorism involvement. The levels have recovered somewhat".

Before September 11 last year, remittances from Somalis abroad used to be as high as seven million dollars (euros) a year, while exports of livestock brought in a further 2.5 million dollars.

The UN is also seeking to develop the country's port, airport and road infrastructure.

He said donors so far provided 45 percent of the UN's 83 million dollar 2002 appeal for Somalia.

"Whatever we do there, we see it as an investment. If you have Somalia in the state that it is today, it's not good for the neighbors and not good for the international community," Gaylard said.

"Somalia is not a lost cause. There is plenty of what's happening in Somalia that gives you hope," Gaylard said.