Somalia Country Economic Memorandum : Towards an Inclusive Jobs Agenda
Somalia has a triple challenge of low levels of labor force participation, low productivity, and high levels of poverty. Economic growth in Somalia has been low, subject to shocks; and thus, insufficient for job creation. Shocks to the economy have...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/474611625138312966/Somalia-Country-Economic-Memorandum-Towards-an-Inclusive-Jobs-Agenda http://hdl.handle.net/10986/35943 |
| Summary: | Somalia has a triple challenge of low
levels of labor force participation, low productivity, and
high levels of poverty. Economic growth in Somalia has been
low, subject to shocks; and thus, insufficient for job
creation. Shocks to the economy have contributed to forced
displacement, a dominance of jobs outside of agriculture,
and rapid urbanization. The Somali economy is largely driven
by consumption and supported by external financial flows. In
Somalia’s state-building context, enhancing political
stability and developing a social contract is fundamental
for growth. The objective of the Somalia Country Economic
Memorandum (CEM) is to inform the economic policy dialogue
and broader debate in Somalia regarding the types of reforms
required to stimulate growth and job creation. The Somalia
CEM applies and adapts the Jobs and Economic Transformation
(JET) Framework. The JET framework has two pillars, one
which considers job-creating private investments, and the
second that concerns building the capabilities of workers.
In the Somali context, efforts have been made to incorporate
a gender and inclusion lens, given the particularly low
levels of female labor force participation. The report has
two special focus chapters on trade and integration and
entrepreneurship, due to their importance to growth and jobs
in the Somali economy. However, a detailed value chain
analysis goes beyond the scope of this report. The report
utilizes available quantitative data, primary research
conducted for the study, and builds on earlier work. The
report considers both the structure of today’s economy and
the source of jobs, as well as potential future drivers of growth. |
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