Federal Republic of Somalia Systematic Country Diagnostic
To sustain its positive trajectory, Somalia needs to break out of its dual development trap, where inadequate resources and minimal trust in government are preventing the state from providing the public goods and services necessary to consolidate i...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/554051534791806400/Somalia-Systematic-Country-Diagnostic http://hdl.handle.net/10986/30416 |
| Summary: | To sustain its positive trajectory,
Somalia needs to break out of its dual development trap,
where inadequate resources and minimal trust in government
are preventing the state from providing the public goods and
services necessary to consolidate its legitimacy, while
large periodic shocks (such as drought) reverse the gains
made and endanger the welfare of the most vulnerable. To
break out of this cycle and launch itself on a durable
development trajectory, Somalia will need both improved
institutions and predictable development financing. To take
advantage of the opportunity provided by the current
relative political stability, this systematic country
diagnostic (SCD) applies a modified version of the changing
wealth of nations framework. This framework is focused on
building up sustainable national wealth rather than
maximizing short-term consumption, and is based upon an
assessment of the stocks of various forms of capital
-natural assets like land, forests, fish, and minerals;
productive assets like buildings, machinery, and
infrastructure (such as highways, ports, and electricity
generation); human assets (population, education, and
health); as well as the intangibles (such as the quality of
institutions, the vitality of the private sector, and the
functioning of the society) that govern the functioning of
the economy. In this framework, development is defined as
the process of accumulating a diversified and growing
portfolio of national wealth. Among other approaches, by
differentiating intangible capital in terms of its social,
institutional, and entrepreneurial aspects this SCD more
explicitly captures the quality and capacity of public
institutions and governance, the functioning of social
safety nets, inclusion and the strength of dispute
resolution systems, and entrepreneurship. It also makes it
possible to identify such obstacles to development as
constraints on the accumulation of capital or drivers of
capital depletion. |
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