2. DAD Community of Practice 1 st Global Conference The Perspectives of Somaliland Aid Information System DAD Community of Practice 1 st 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 ahmedmdiriye@yahoo.com

3. 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

4. 1. 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).

5. 2. 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].[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. 6 m

6. 2. Somaliland (Continue) Following bodies were set to improve the coordination and effectiveness Following bodies were set to improve the coordination and effectiveness 1. A High Level Aid Coordination Forum; Inter- ministerial Aid Coordination (IMAC) body; 1. A High Level Aid Coordination Forum; Inter- ministerial Aid Coordination (IMAC) body; 2. Sectoral Working Groups 2. Sectoral Working Groups 3. Planning and Statistics Unit at all public institutions 3. Planning and Statistics Unit at all public institutions 4. Somaliland Statistics Working Group. 4. Somaliland Statistics Working Group.

7. 3. Somaliland Aid Coordination However, these coordination efforts are yet to be implemented practically, which is the major source of the Somaliland aid fragmentation. However, these coordination efforts are yet to be implemented practically, which is the major source of the Somaliland aid fragmentation. The Somaliland Aid fragmentation measured by the Herfindahl- Hirschman Index (HHI)[5] indicated that the existing Somaliland aid coordination is only 4 parts out of the would-be coordinated 100 parts. The Somaliland Aid fragmentation measured by the Herfindahl- Hirschman Index (HHI)[5] indicated that the existing Somaliland aid coordination is only 4 parts out of the would-be coordinated 100 parts.[5] Three main reasons hampered the implementation of these participatory development coordination agreements. Three main reasons hampered the implementation of these participatory development coordination agreements.

8. 3. Somaliland Aid Coordination (Continue) First, similar to its diplomatic status, the Somaliland development position is distinctive; where all the international aid implementing institutions and some donors have offices in Hargeisa for Somaliland, and at the same time, their country offices for Somalia (including Somaliland) are in Nairobi, Kenya due to the chaos political and security climate of (Southern) Somalia. First, similar to its diplomatic status, the Somaliland development position is distinctive; where all the international aid implementing institutions and some donors have offices in Hargeisa for Somaliland, and at the same time, their country offices for Somalia (including Somaliland) are in Nairobi, Kenya due to the chaos political and security climate of (Southern) Somalia. This means that aid implementing institutions are running their business from distant office, and without practical consultation with the Somaliland authorities in terms of planning and prioritization. This means that aid implementing institutions are running their business from distant office, and without practical consultation with the Somaliland authorities in terms of planning and prioritization. Even, the SSS has monitored the basic donor aid flows without consultation with the Somaliland government since 2001. Even, the SSS has monitored the basic donor aid flows without consultation with the Somaliland government since 2001. Second, the minimal Somaliland contribution to its development, which is only $0.6[6] out of the $35 per capita development budget in 2008, gave the development ownership to the international aid implementing institutions, and put Somaliland into a weak development ownership position, if not, as a mere aid receiver. Second, the minimal Somaliland contribution to its development, which is only $0.6[6] out of the $35 per capita development budget in 2008, gave the development ownership to the international aid implementing institutions, and put Somaliland into a weak development ownership position, if not, as a mere aid receiver.[6]

9. 3. Somaliland Aid Coordination (Continue) Third, low institutional implementation capacity, where 54 different challenges rendering proper development implementations were listed by the international aid implementing institutions. Third, low institutional implementation capacity, where 54 different challenges rendering proper development implementations were listed by the international aid implementing institutions. In addition, about half of the Planning and Statistical Units (PSU) that serve as the focal planning, monitoring and evaluation unit have office; and Somaliland public institutions study showed that their monitoring and evaluation capacity scored as low as only 25%, and 49% in development planning capacity. In addition, about half of the Planning and Statistical Units (PSU) that serve as the focal planning, monitoring and evaluation unit have office; and Somaliland public institutions study showed that their monitoring and evaluation capacity scored as low as only 25%, and 49% in development planning capacity. This reality on the ground situation turned the development decision making, from demand driven to supply driven, including identifying priorities and setting program theory of change (causal-and-effect relationship). This reality on the ground situation turned the development decision making, from demand driven to supply driven, including identifying priorities and setting program theory of change (causal-and-effect relationship). Beneficiary on the guest chair

10. 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.

11. 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 SectorsLocal preference RankAid Allocation Rank Livestock17 Water24 Education31 Aid became like a cloud, which no one has a say: “when, where, and how much to rain”

12. Solutions As of Today The Ministry of Planning with assistance of UNDP established Macroeconomic Management Office (MEMO); which has the mandate to establish Aid Management Information System. The Ministry of Planning with assistance of UNDP established Macroeconomic Management Office (MEMO); which has the mandate to establish Aid Management Information System. Similarly, the Ministry of Finance has plan to launch a comprehensive Public Finance Management Reform, including consultative and transparent budget process, and consequently align the budget with the development plans as well as accountable financial management. Similarly, the Ministry of Finance has plan to launch a comprehensive Public Finance Management Reform, including consultative and transparent budget process, and consequently align the budget with 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.

13. Aid Data In Excel and SPSS Format 300 Projects 40 Governmental Institutions 60 International Aid Implementation Institutions

15. Perspectives 1. Joint Monitoring and Evaluation Body 2. Aid Coordination Structure 3. Annual National Development Congress 4. Somaliland/Somalia Aid Management Information System (SAMIS)

16. Recommendations for SAIMS 1. Establish DEVELOPMENT (Instead of only for aid) Information Management System suitable for post-conflict countries. Specifically, when controlled by different (and possibly disputed) political powers, i.e. Somaliland and Somalia. 1. Establish DEVELOPMENT (Instead of only for aid) Information Management System suitable for post-conflict countries. Specifically, when controlled by different (and possibly disputed) political powers, i.e. Somaliland and Somalia. 2. Setting experience-exchange platform for the fragile states (and possibly those experienced natural disasters) 2. Setting experience-exchange platform for the fragile states (and possibly those experienced natural disasters) 3. Strength the on-going M&E and Coordination Systems 3. Strength the on-going M&E and Coordination Systems 4. Foster customer-tailored information sharing capacity building through establishing/strengthening Development resources Information Center equipped with Library and Call Center 4. Foster customer-tailored information sharing capacity building through establishing/strengthening Development resources Information Center equipped with Library and Call Center

17. ENFORCING RECOMMENDATIONS Before SAIMS is established, participatory aid (and other development) decision making process enforcing mechanisms are required. As brain storming, code of conduct is plausible, including institutional and staff credit system. Before SAIMS is established, participatory aid (and other development) decision making process enforcing mechanisms are required. As brain storming, code of conduct is plausible, including institutional and staff credit system. Donors could use that credit report for aid and development fund supplying decision making Donors could use that credit report for aid and development fund supplying decision making

18. Dhamaad (End) Dhamaad (End) Mahadsanid (Thank You)