The Perspectives of Somaliland Aid Information System

DAD Community of Practice 1DAD Community of Practice 1stst Global Conference Global Conference

October 5-9, 2009 Yerevan, Armenia

Presented By :Ahmed M. Diriye

M&E Expert

Ministry of National Planning+252-2-411-6438

ahmedmdiriye@yahoo.com

www.slministryofplanning.org

Objectives of this Presentation

Briefing the reality on the ground and surrounding environment to be taken into account

Reviewing the background of development assistance, which is crucial for establishing AIMS

1. Somaliland1. Somaliland

• When Somaliland, the home of 3.5 million persons, achieved its independence in 1960, it united with the Italian Somalia to form the Republic of Somalia.

• After the Somali Republic collapsed in 1991, Somaliland broke away, and built a new state through traditional electoral colleges consensus decision making.

• Then gradual democratization process took place by the 2001 constitutional referendum, and then municipal, presidential, and parliament elections were held in 2002, 2003, and 2005, respectively(1).

• However, Somaliland is yet to achieve international diplomatic recognition; while some of the international community is dealing with it as a sovereign state.

• The international community deals Somaliland as one of three development zones of Somalia (Somaliland, Puntland & South Central).

2. Development Status2. Development Status

Reconstruction and Development Program (RDP) as the official 5-year development plan, 2008-2012, was prepared participatory process from the UNTP, World Bank Interim Country Strategic Note, and EC and Norway Country Paper[4].

2008 Aid Figures for Somalia Development aid flows: $250m of which Somaliland received 40% Commitment to Disbursement ratio: 81% Disbursement to Spend rate: 45% Aid flows to (I)NGO’s : 47%, Aid flows to UN: 38% (Aid flows to other types of implementers 15%)

Mean size of project contract: $3m Av size of funds by UN agency: $4.3 m Av size of funds by (I)NGO: $2.6m

2. Somaliland (Continue) Following bodies were set to improve the coordination and Following bodies were set to improve the coordination and

effectivenesseffectiveness

1. A High Level 1. A High Level Aid Coordination Forum; Inter-ministerial Aid Coordination Forum; Inter-ministerial Aid Coordination (IMAC) body;Aid Coordination (IMAC) body;

2. Sectoral Working Groups2. Sectoral Working Groups

3. Planning and Statistics Unit at all public institutions3. Planning and Statistics Unit at all public institutions 4. Somaliland Statistics Working Group.4. Somaliland Statistics Working Group.

3. 3. Somaliland Aid CoordinationSomaliland Aid Coordination

However, these coordination efforts are yet to be implemented However, these coordination efforts are yet to be implemented practically, which is the major source of the practically, which is the major source of the Somaliland aid Somaliland aid fragmentation. fragmentation.

The Somaliland Aid fragmentation measured by the Herfindahl-The Somaliland Aid fragmentation measured by the Herfindahl-Hirschman Index (HHI)Hirschman Index (HHI)[5] indicated that the existing Somaliland aid indicated that the existing Somaliland aid coordination is only 4 parts out of the would-be coordinated 100 parts.coordination is only 4 parts out of the would-be coordinated 100 parts.

Three main reasons hampered the implementation of these Three main reasons hampered the implementation of these participatory development coordination agreements. participatory development coordination agreements.

3. 3. Somaliland Aid Coordination (Continue)Somaliland Aid Coordination (Continue) FirstFirst, similar, similar to its diplomatic status, the Somaliland development position is to its diplomatic status, the Somaliland development position is

distinctive; where all the international aid implementing institutions and distinctive; where all the international aid implementing institutions and some donors have offices in Hargeisa for Somaliland, and at the same time, some donors have offices in Hargeisa for Somaliland, and at the same time, their country offices for Somalia (including Somaliland) are in Nairobi, their country offices for Somalia (including Somaliland) are in Nairobi, Kenya due to the chaos political and security climate of (Southern) Somalia.Kenya due to the chaos political and security climate of (Southern) Somalia.

This means that aid implementing institutions are running their business This means that aid implementing institutions are running their business from distant office, and without practical consultation with the Somaliland from distant office, and without practical consultation with the Somaliland authorities in terms of planning and prioritization. authorities in terms of planning and prioritization.

Even, the SSS has monitored the basic donor aid flows without consultation Even, the SSS has monitored the basic donor aid flows without consultation with the Somaliland government since 2001. with the Somaliland government since 2001.

Second,Second, the minimal Somaliland contribution to its development, which is the minimal Somaliland contribution to its development, which is only $0.6only $0.6[6] out of the $35 per capita development budget in 2008, gave the out of the $35 per capita development budget in 2008, gave the development ownership to the international aid implementing institutions, development ownership to the international aid implementing institutions, and put Somaliland into a weak development ownership position, if not, as a and put Somaliland into a weak development ownership position, if not, as a mere aid receiver.mere aid receiver.

3. 3. Somaliland Aid Coordination (Continue)Somaliland Aid Coordination (Continue) Third, low institutional implementation capacity, where 54 different Third, low institutional implementation capacity, where 54 different

challenges rendering proper development implementations were listed by challenges rendering proper development implementations were listed by the international aid implementing institutions.the international aid implementing institutions.

In addition, about half of the Planning and Statistical Units (PSU) that serve In addition, about half of the Planning and Statistical Units (PSU) that serve as the focal planning, monitoring and evaluation unit have office; and as the focal planning, monitoring and evaluation unit have office; and Somaliland public institutions study showed that their monitoring and Somaliland public institutions study showed that their monitoring and evaluation capacity scored as low as only 25%, and 49% in development evaluation capacity scored as low as only 25%, and 49% in development planning capacity.planning capacity.

This reality on the ground situation turned the development decision This reality on the ground situation turned the development decision making, from making, from demand drivendemand driven to to supply drivensupply driven, including identifying , including identifying priorities and setting program theory of change (priorities and setting program theory of change (causal-and-effect causal-and-effect relationship).relationship).

Beneficiary on the guest chair

Beneficiary on the guest chair

4. Practical Repercussions:A. Irrelevant Appropriation of the Meagre Resources : He who lacks the facts of an issue might disfigure it’… Somali proverb

In the definition of the public sector budgeting, which is allocating resources in consistent with the community needs for given fiscal period- the term of “community needs” denotes that the priority must be given to the development areas that will generate the greatest net benefits - in accordance with local community’s preferences and valuation. The Somaliland aid allocation is the contrary.

Knowing that the RDP development vision is deepening peace and poverty reduction, and that 56% of the Somaliland population main source of income is from livestock, allocating only 7.9% out of $120 million development aid budget is good indicator of irrelevant allocation, and early warning of the potential diminutive aid effectiveness.

Irrelevant appropriation of the meagre resource As peace and security development allocation irrelevance indicator, 65% of

population rely on community elders in peace and security.

Further, 2/3 of the cases reached at the prosecution offices withdrawn their cases to civil adjudication. On the contrary, less than 2% of the security and rule of law (ROLS) development aid was allocated to the traditional system peace making.

TABLE 1: DEVELOPMENT PRIORITIZATION RANKING IN 2008

Sectors Local preference Rank Aid Allocation RankLivestock 1 7Water 2 4Education 3 1

Aid became like a cloud, which no one has a say: “when, where, and how much to rain”

Aid became like a cloud, which no one has a say: “when, where, and how much to rain”

Solutions As of Today The Ministry of Planning with assistance of UNDP established The Ministry of Planning with assistance of UNDP established

Macroeconomic Management Office (MEMO); which has the mandate Macroeconomic Management Office (MEMO); which has the mandate to establish Aid Management Information System.to establish Aid Management Information System.

Similarly, the Ministry of Finance has plan to launch a comprehensive Similarly, the Ministry of Finance has plan to launch a comprehensive Public Finance Management Reform, including consultative and Public Finance Management Reform, including consultative and transparent budget process, and consequently align the budget with transparent budget process, and consequently align the budget with the development plans as well as accountable financial management.the development plans as well as accountable financial management.

Somaliland Ministry of Planning exercised Mapping of the Partner Programs in 2007; and Tracked Aid Flow to produce Aid Effectiveness and Management Report in February, 2009.

Aid Data In Excel and SPSS Format

300 Projects 40 Governmental Institutions 60 International Aid Implementation Institutions

Perspectives

1. Joint Monitoring and Evaluation Body

2. Aid Coordination Structure

3. Annual National Development Congress

4. Somaliland/Somalia Aid Management Information System (SAMIS)

Recommendations for SAIMSRecommendations for SAIMS

1. Establish DEVELOPMENT (Instead of only for aid) Information 1. Establish DEVELOPMENT (Instead of only for aid) Information Management System suitable for post-conflict countries. Specifically, Management System suitable for post-conflict countries. Specifically, when controlled by different (and possibly disputed) political powers, when controlled by different (and possibly disputed) political powers, i.e. Somaliland and Somalia.i.e. Somaliland and Somalia.

2. Setting experience-exchange platform for the fragile states (and 2. Setting experience-exchange platform for the fragile states (and possibly those experienced natural disasters)possibly those experienced natural disasters)

3. Strength the on-going M&E and Coordination Systems3. Strength the on-going M&E and Coordination Systems

4. Foster customer-tailored information sharing capacity building 4. Foster customer-tailored information sharing capacity building through establishing/strengthening Development resources through establishing/strengthening Development resources Information Center equipped with Library and Call Center Information Center equipped with Library and Call Center

ENFORCING RECOMMENDATIONSENFORCING RECOMMENDATIONS

Before SAIMS is established, participatory aid (and other Before SAIMS is established, participatory aid (and other development) decision making process enforcing mechanisms development) decision making process enforcing mechanisms are required. As brain storming, code of conduct is plausible, are required. As brain storming, code of conduct is plausible, including institutional and staff credit system.including institutional and staff credit system.

Donors could use that credit report for aid and development Donors could use that credit report for aid and development fund supplying decision makingfund supplying decision making

DhamaadDhamaad (End) (End)

Mahadsanid (Thank You)Mahadsanid (Thank You)