Case III: HESPI interventions in State Capacity Building in Somalia

Concrete Results of HESPI Institutional Capacity Building in IGAD Countries



Case III

HESPI interventions in State Capacity Building in Somalia

The prolonged conflict in Somalia destroyed the state capacity in the country. HESPI support aimed at building the state capacity in Somalia started in 2006 at a time of rebuilding PFM and financial sector operations were at ground zero. The Institute commenced its intervention at the beginning of the Transitional Federal Governments which faced daunting challenges in public sector operations. HESPI planned to deliver several strategic and technical support elements to improve the institutional weaknesses.

The Institute started its support by conducting skill development for the budget formulation and planning units through intensive technical training, secondments and twining arrangements with neighboring countries which enabled them to develop and operationalise a system of budget formulation and execution. A Somalia high level official during a feedback meeting said, “had it not been for HESPI’s support, Somalia wouldn’t have its own budget prepared at all.”

HESPI extended its support first in reviewing and updating of various laws for enactment and enforcement, which included updating the PFM Act, the Central Bank Act, the Financial Institutions legislation, and assisted with the drafting of the Federal Audit bill; and the procurement and concessions bill. These efforts contributed to the effectiveness of the financial integrity in Somalia by way of creating credible budget formulation, functioning PFM systems and procedures, and ownership of budget formulation and execution.

The Institute also trained officials from the office of the Auditor General and from the Budget and Finance committees of the legislature on the role of external scrutiny in transparency of accountability among the executive and the various spending units of the government and support was also provided to the officials of the Central Bank, and the Development and Reconstruction Bank of Somalia to assist in the recovery of the financial system.

HESPI also conducted a consultative meeting on “Rebuilding Viable State and Effective Institutions in Somalia” in mid-2013.  This meeting brought together about 60 high level representatives of the Somali leadership, civil society, bilateral agencies and multilateral institutions, independent professionals and academicians along with international experts on post-conflict reconstruction. The event was followed by a seminar on fiscal and constitutional Federalism in Somalia conducted in collaboration with the IGAD Secretariat, which brought together about 150 among the leadership, senior officials and diaspora to discuss and debate state reconstruction.

HESPI also conducted leadership and good governance seminar for the leadership which enlightened them on leadership and governance issues especially in post-conflict recovery. These events fostered intensive dialogue that promoted the exchange of ideas and new thinking among policy makers and the country’s development partners on socio-economic policy options and strategies. The events also contributed to the assessment of Somalia’s post-conflict priority needs and supported the federal governments of Somalia in the post-conflict endeavors to plan, formulate and implement coherent programs for rebuilding a viable state and effective institutions.

HESPI’s feedback from the current Federal Government of Somalia indicated that the recommendations made at these events contributed to the enhancement of the formulation of improved policies and helped in the process of enhancing the capacity of the PFM institutions, which are currently taking root.  A joint government and donor process is now being put in place to further enhance financial integrity.