Concept Note Somalia Country Programme

Transcription

1 Concept Note Somalia Country Programme 1. Introduction The strategic questions to guide the discussion at the Danida Programme Committee meeting: Question 1: Somalia is one of the poorest and most fragile countries in the world. Is the complementarity and match between the two suggested programmes under the country programme governance and inclusive economic growth the right one from a state building and a poverty reduction perspective? And is this approach complimentary with the regional programme Whole of Government Stabilisation Programme for the Wider Horn of Africa and the humanitarian frame? Question 2: The fragile state Somalia is characterised by a development context and a security situation that differ from area to area and is in a state of constant flux. The Danish support will address all parts of Somalia but approximately 50 pct. of the funds will go to Somaliland because of opportunities for achieving long-term development and consolidate programmes. With this approach it is possible to use lessons learned from Somaliland and link them to efforts unfolding in the rest of Somalia. Is this a feasible approach and does the concept note properly reflect this approach? Question 3: In addition to the support to Somaliland, the country programme will increase support to activities in other parts of Somalia to support state building and follow up on the priorities of the Somali New Deal Compact. There are major risks in this regard both political, security and financial. Does the concept note present a sufficient risk management set-up? Summary of Conclusions Regarding the Envisaged Support The Danish engagement with Somalia is guided by the Danish Policy Paper ( ), with the vision to support the people and the Government of Somalia in building a stable society capable of enhancing peace, security, social and economic development. Three strategic areas support this vision: i) state building based on inclusive politics, ii) security and the rule of law and, iii) poverty reduction, economic growth and improved livelihoods. The Policy Paper reflects the Somali New Deal Compact ( ) including the Somaliland Special Arrangement 1, a document outlining Somalia s key priorities within five Peace and State Building Goals (PSGs), PSG 1: Inclusive Politics, PSG 2: Security, PSG 3: Justice, PSG 4: Economic Foundations and PSG 5: Revenue and Services. The Policy Paper will be implemented through a holistic and complementary approach combining three programme interventions, each referring to the PSGs of the Somali Compact: 1 Somaliland claimed independence from Somalia in 1991 and has operated as a de facto nation state without formal recognition by the international community. 1

2 The Country Programme mainly addresses PSG 1, 4 and 5, the Stabilisation Programme mainly addresses PSG 1, 2 and 3, and the Danish Humanitarian Assistance addresses primarily PSG 4 and 5. The Somalia Country Programme will be designed around two thematic programme interventions derived from the strategic objective of the Policy Paper; Governance and Inclusive Economic Growth. The Governance Programme will contribute to strengthen legitimate and democratic institutions to enable delivery of key services to the people of Somalia, which will contribute to a secure, stable and democratic state. The Inclusive Economic Growth Programme will contribute to reducing poverty, creating employment and increasing resilience, which include support to investments and value chains as well as development of economic strategies. Both thematic programmes will have a particularly focus on gender equality and inclusion of youth.. The country programme is expected to have a total budget frame of DKK 450 million. 2. Conclusions from Preparatory Analysis Country Context Somalia is one of the world s most fragile and poorest countries. The country is emerging from more than 20 years of conflict and humanitarian disasters with some regions showing gradual progress towards stability and democratic governance. Although faced with major challenges, the endorsement of the Somali Compact in September 2013 is a clear sign of the new partnership and engagement between the Federal Government of Somalia, the people of Somalia and the international community. The long absence of a central government has led to fragmentation and a lack of capacity in public institutions to deliver services a lack of accountability and legitimacy to mediate relations between civilian groups and between citizens and the state, making citizens vulnerable to violence and corruption. The Transitional Federal Government failed to provide even minimal delivery services, due to very limited access to most areas in South Central Somalia as a result of Al Shabaab s presence. The development and humanitarian indicators for Somalia are among the lowest in the world: 73 pct. of Somalis live on under US $2 per year and life expectancy is around 48 years. Conditions for women in Somalia are among the most difficult in the world.gender-based violence and discrimination against women are widespread, gender inequality is alarmingly high and the child and maternal mortality rates continue to be amongst the highest in the world. More than 70 pct. of the population is under the age of 30 years and lack viable education and employment opportunities 2. 2 Somalia Human Development Report 2012, UNDP 2

3 2.3 million Somalis remain highly vulnerable to external shocks and are at risk of sliding back into food security crisis. The drought in affected more than 4 million people, 1.1 million people are internally displaced and more than 1 million Somali refugees reside in neighbouring countries, roughly half a million in Kenya 3. However, the population has shown a remarkable resilience to cope with the situation by maintaining family-based social safety nets, and clan coping mechanisms.. With improved levels of security the Somali people will be able to experience, through a combination of national and international efforts, improvement in their livelihood. The coming years are crucial for the Federal Government of Somalia for re-establishing the trust of its people and for shaping a secure, peaceful and democratic society. Stabilisation, economic and social development in Somalia is vital for a more stable Horn of Africa, which affects Europe including Denmark. Despite the recent AMISOM military operation expanding the liberated areas in Somalia, the security situation is still fragile and marked by al-shabaab s control over significant parts of Somalia and ability to carry out serious and frequent terror attacks within and outside of Somalia. This as well as inter-clan disputes and conflicts between the regions continue to have significant impact on the ability of the international society to implement development programmes in Somalia. Denmark s Engagement in Somalia Denmark's support to Somalia will take into account the different geographic realities and be basedon the following strategic principles: 1) Broad based approach including political dialogue, active diplomacy, development support, security and stabilisation efforts and humanitarian assistance; 2) Adaptive to the situation on the ground and; 3) Walking on two legs, i.e. striking the necessary balance between support to the federal government and the regions. Beyond the Danida Programme Office in Somaliland the possibilities for increasing Denmark s physical presence in Somalia remains limited and well affects how far Denmark can stretch particularly its bilateral engagement. Bearing this in mind, Denmark will seek to strike a realistic balance between our bilateral and multilateral engagement and to a large extent channel funds through multilateral partners. The overall Danish engagement for as described in the Somalia Policy Paper will be addressed through three different funding frames: 3 UNHCR Kenya monthly updates 3

4 1) Somalia Country Programme managed by the Embassy in Nairobi through the bilateral country frame. 2) Humanitarian assistance administered through partnership agreements with Danish and international organisations managed by the Department for Humanitarian Action, Civil Society and Personnel Assistance (HCP) in close cooperation with the Embassy in Nairobi. 3) Stabilisation efforts within the regional Whole of Government Stabilisation Programme for the Wider Horn of Africa from the Peace and Stabilisation Fund and managed jointly by the Ministry of Foreign Affairs and Ministry of Defence in close cooperation with the Embassies in Nairobi and Addis Ababa. Additionally, the Danish-Somali diaspora is supported through two funding modalities, one administrated by CISU (Civil Society in Development) and the Diaspora Programme administered by Danish Refugee Council, both funded by the Danish Ministry of Foreign Affairs 4. The following figure (page 5) shows the Danish indicative support to Somalia for the period and illustrates how the different programmes/frames are linked to the strategic focus areas of the Somalia Policy as well as the PSGs of the Somali Compact. The support to Somalia under the Danish humanitarian assistance will continue via annual partnership agreements with Danish NGO s and international organisations financed by HCP. The Embassy will engage in the strategic dialogue and remain closely involved in monitoring. In addition, more long-term humanitarian durable solutions will be addressed with a focus on resilience, and re-integration of internally displaced persons, particularly under the Inclusive Economic Growth programme. This will be explored further during the formulation of this programme. The cooperation with the Danish Somalia Diaspora will be further strengthened by use of existing funding modalities. This will include reinforcing links to development in Somalia with specific focus on available funding modalities, such as the support to civil society via the elections, reconciliation and democratic processes supported through Interpeace and the support to the World Bank Private Sector Development and Re-engagement Programme. 4 By the Department for Humanitarian Action, Civil Society and Personnel Assistance (HCP). 4

5 Vision: supporting the people of Somalia to create a stable Somalia that can take care of its own security in a national and regional context in order to further economic and social development. Strategic focus Security and rule of law (PSG 2&3) State building based on inclusive politics (PSG 1) Poverty reduction, economic growth and better livelihood (PSG 4&5) Cross Cutting Interventions/ Thematic Programmes Programmes/ frames Development engagements/ partners Activities (What outputs needs to be produced) Whole of Government Stabilisation Programme for the Wider Horn of Africa ( ) Security on the ground and sea Justice/Rule of law Indictavie: EASF, AMISON, UNODC, UN Multi Partner Trust Fund (Rule of Law), Stability Fund, Serendi a.o. Indicative: Security institutions, AMISON, anti-piracy, legal institutions, access to justice, stability etc. UN Multipartner Trust Fund (JPLG, Gender, UNICEF) Somalia Country Programme ( ) Governance Programme Somaliland Development Fund Interpeace Democratic election, legitimate institutions that are able to deliver 5 services and gender equality Inclusive Economic Growth WB Multipart -ner Trust Fund (SomPre p) Terra Nuova Somalia Resilience Programme Creating employment, economic strategy, regulatory frame, value chains and increased resilience Humanitarian frame (annual engagements) Frame agreements with Danish NGOs (Save the Children, Danish Refugees Council, Danish Church Aid, Danish Red Agreements with international organisations (UNHCR, RMU, CHF etc.) Indicative: Durale solution, reintegration, improved livelihood, emergency assistance, risk mitigation etc. Danish Somalia Diaspora (CISU, DRC Diaspora Programme, poss. others)

6 Lessons Learnt The Country Programme will build on Danish experience since the 1990s and on the recommendations from three recent reviews 5 of the current Danish assistance to Somalia (stabilisation, development and humanitarian interventions). The main recommendation from the three reviews was creating better synergies between the Danish contributions to peace, stability and development in Somalia, which the Country Programme will ensure through a holistic approach and alignment with the Somali Compact. Furthermore, the risk of international focus being shifted towards supporting the federal structures underlines the importance of maintaining a focus on Somaliland to avoid losing the positive momentum. A recommendation to continue previous engagements to build and further expand the already positive results in Somaliland toother geographical regions in Somalia, security permitting. The review of the current country programme recommended continued support to the following areas: 1) Somaliland Development Fund with sustained pressure to delivering results and increasing capacity for public investment, 2) UN Joint Programme for Local Governance aimed at district delivery, 3) elections and reconciliation processes through Interpeace, 4) gender equality and women s empowerment with the aim to improve integration in all Danish activities (including Rule of Law), 5) support to the livestock sector and vocational education through Terra Nuova and 6) support to the World Bank Private Sector Development and Reengagement Programme. At the time of the review the Go-2-School Initiative implemented by UNICEF 6 was at an early stage. Results so far are positive and education remains a high priority for Danish development cooperation in fragile states. Lastly it was recommended to continue the Danida Programme Office in Hargeisa with the advisor position that heads the office and the advisor position in the Ministry of Planning. The review of the humanitarian efforts recommended maintaining different approaches for assistance acknowledging the context and in particular the differences between Somaliland, Puntland and South Central Somalia. Humanitarian interventions should focus on new areas of displacement, interventions in the disputed regions as well as adequate disaster response, and to a lesser extent on Somaliland due to the development agenda getting increasing importance. When possible, some ongoing humanitarian interventions, including support for long-term internal displaced people, community driven recovery and development, as well as support to livelihoods should over time be shifted to partners with an enhanced development profile based on partnership and capacity building. In addition, it was recommended that the new Country Programme does not include a humanitarian component as such, but the Embassy will continue active involvement in strategic decisions and monitoring humanitarian assistance. 5 Whole of Government Stabilisation Programme for the Wider Horn of Africa (November 2013), Somalia Country Programme (December 2013) and Improved Living Conditions (component 3 of the current Somalia Programme) (April 2014). 6 Denmark finalised its agreement with UNICEF in September 2013 with a 2-year duration until September

7 To support the coordination and strategic decision-making and enhance synergies it is recommended to establish a Task-Force for humanitarian and civil society engagement in Somalia 7 running parallel to the Country Programme. A similar Task-Force for the future stabilisation engagement has been proposed 8. Context and Justification of the Proposed Thematic Programmes As outlined in the Policy Paper state building based on inclusive politics is a priority for the Federal Government of Somalia and the Government of Somaliland. This includes support to a secure, stable and democratic state and clarification of the relations between the Federal Government and the emerging administrations. There is a need to build up democratic and legitimate institutions and an efficient public sector, which is able to deliver basic services and establish the citizen s trust in the Government. The last multi-party election throughout Somalia was held in 1969 and it constitutes a key milestone under PSG 1 to undertake credible elections in An electoral cycle approach including legislation around the election, laws for political parties, voter registration and civic voter education needs to be re-established, almost from scratch. Parliament and presidential elections in Somaliland are planned for 2015 and a reform of the electoral system is underway to address the current lack of representation of women and excluded groups. In November 2012 Somaliland successfully completed local elections in 21 out of the 23 municipalities. It was the fifth successful election since the first local election in , but it still remains a challenge to establish effective institutions around the electoral cycle. The electoral challenges will be addressed under the Governance Programme of the Country Programme, involving civil society, community-level activities and appropriate partners.. Legitimate and democratic governance based on public ownership will contribute to increased service delivery, which is key to ensure state legitimacy and provide the peace dividend to foster stability, both at central and local level. This supports PSG 5 (Revenue and Services). Both the Federal Government of Somalia and the Government of Somaliland emphasise the critical role of supporting the economic sector for creating growth and employment, particularly focussing on youth.. Priorities include enhancing the productivity and value chains in high priority sectors, i.e. livestock and fisheries, as well as investments in infrastructure and social sectors. Support to the productive sectors contributes to economic growth, employment, creates resilience and reduc poverty, which will be the focus for the Inclusive Economic Growth Programme in alignment with PSG 4 (Economic Foundation). 7 Consisting of the Embassy, Danida Programme Office, Hargeisa and the Department for Humanitarian Action, Civil Society and Personnel Assistance. 8 Consisting of the embassies in Nairobi and Addis Ababa, Stabilisation and Security Policy, the Africa Department as well as the Ministry of Defence local election in municipalities, 2003 presidential election, 2005 parliamentary election, 2010 presidential election. 7

8 During the analysis and preparation of the Country Policy and the identification and selection of thematic engagements, the five DAC quality criteria for development cooperation funds: relevance, effectiveness, efficiency, impact and sustainability have been applied consistently. The thematic programmes are highly relevant and have been selected for maximum impact and contribution to the overall programme objectives in synergy with the stabilisation and humanitarian interventions. Implementation of modalities includes significant multidonor/multi partner trust-fund involvements ensuring increased efficiency and institutional sustainability, as well as contributions to a leaner portfolio with relative few development engagements. This concept note is based on a theory of change that will be further expanded in development of the programme document. Finally, the country programme will apply a human rights based approach including non-discrimination, participation and inclusion, transparency and accountability with special focus on transformative gender inclusion and equality thought-out the country programme and its thematic activities. 3. Thematic Programme Objectives and Summaries The Somalia Country Programme is in compliance with the national priorities set out by the Somali Compact, and aligned to the PSGs. It is aligned to Denmark s strategy for development cooperation The Right to a Better Life, the Somalia Policy Paper as well as support from other donors. Besides focussing on a human rights based approach, gender equality and green growth as prescribed by the Danida guidelines, the programme will pay attention to the crosscutting areas of: anti-corruption, youth inclusion and resilience, and re-integration of internally displaced persons. In line with the New Deal principles the Country Programme will support the state building process with the Federal Government in the driver s seat but will also support regional developments. As a new way of working with the Federal Government the programme will to a large extent make use of the newly established UN Multi Partner Trust Fund (UN MPTF) and the World Bank Multi Partner Trust Fund (WB MPTF). Previous positive engagements with the World Bank and UN agencies will be expanded to other geographical regions within these funds, as well as support to international NGOs. Based on lessons learned there will be a continued focus on the long term development in Somaliland including support to the Somaliland Development Fund. It is anticipated that the increase in funds will be allocated to the multi partner trust funds in line with the priorities of the Federal Government. Governance Programme The Governance Program me will support the state building process and economic and social development with the objective to strengthen the development of legitimate and democratic governance structures and institutions based on citizen s trust, ownership, rights, transparency and accountability to enable 8

9 delivery of sustained governance and key services to the people of Somalia. The Governance Programme is aligned to the PSG 1 (Inclusive Politics) and PSG 5 (Revenue and Services). The Governance Programme will increase focus on the priorities of the Federal Government by supporting institution building and service delivery as well as continue to support the regional developments, particularly in Somaliland and increasingly also Puntland, building democratic sustainable institutions at central, regional and local level and provide public services.. The governance programme will hence through the UN Multi Partner Trust Fund support the UNICEF Go-2-School-Initiative in re-building the education sector in seven districts in South Central and possibly expand even further as the security situation allows. Funding to the Joint Programme for Local Governance will continue efforts to strengthen intuitions at district level in delivering services throughout Somalia. UNDP Gender will further advance the existing activities under UN projects (including Rule of Law) and gender transformative action (e.g. quota for government political institutions) and gender based violence in all areas of Somalia, including support to Somali Women s NGOs. The overall aim of the support to Interpeace is to contribute to a process leading to peaceful and transparent presidential and parliamentary elections in 2015 in Somaliland and support the national election process planned for 2016 by the Federal Government, including support to institutionalising election commission(s), voter registration and civic education. A specific result will be the implementation of the first biometric voter registry in Somaliland. In addition, the programme will support local peace building and conflict resolution efforts through local civil society partners as Puntland Development Research Centre, Academy for Peace and Development, Centre for Humanitarian Dialogue and other organisations.. This support will be complemented by core funding to the UN Multi Partner Trust Fund, which is expected to support the electoral and constitutional process as well as other UN Programmes and civil society organisations. The support to Interpeace and the UN Multi Partner Trust Fund will enhance the voice and engagement of CSOs in implementing and monitoring the Somali Compact. The Somaliland Development Fund designed by Danida and DFID as part of the previous country programme has become the Government of Somaliland s preferred vehicle for receiving development funds. So far six projects have been identified by the Somaliland National Planning Commission and approved by the Joint Steering Committee. The projects include improvement of urban water supply, road maintenance, agricultural development, livestock holding grounds, reforestation and construction of government offices. As such the Somaliland Development Fund will also underpin economic development Support to the Somaliland Development Fund will continue and expand to building capacity within 9

10 government institutions, including anti-corruption measurements to maximize its impact on democratic governance, equality, participation and sustainable development. The experience gained from the current support to the interim Somalia Financing Mechanism, which supports minor projects prioritised by the Federal Government of Somalia, will be used in the support to the multi donor trust funds. The role of the diaspora within both the Governance and Inclusive Growth Programme will be explored, also on the basis of experience and lesson learned from other donors. The Somali diaspora (including the Danish Somali diaspora) play a central role in private sector development, which has been evident under the current support to the World Bank s matching grant facility, which focus on attracting the Somalia diaspora. Inclusive Economic Growth Programme The Inclusive Economic Growth Programme will support the state building process and economic and social development with the objective to reduce poverty through support to selected value chains and investments in the productive sectors in synergy with development of an economic strategy and a regulatory framework for private sector growth meeting and leading the bottom-up resilience by creating employment. The inclusive economic growth is aligned with the PSG 4 (Economic Foundations). The Inclusive Economic Growth Programme will increase focus on the priorities of the Federal Government and maintain focus on the regional developments with the necessary legal framework for private sector development. The aim is to improve the investment climate, encourage the inclusion of women and youth in economic development through a.o. increased focus on vocational training: This will lead to increased economic output, employment and income generation leading to poverty reduction and increased resilience. The World Bank Multi Partner Trust Fund will focus on the economic sector and employment opportunities. The initiatives will mainly be implemented through the World Bank Private Sector Development and Re-engagement Programme. Furthermore funding will be provided in support of the Federal Government s Economic Recovery Plan as investment possibilities are presented. Support will be inspired by the UNDP Gender Unit research report The Role of Women in the Private Sector in Somalia financed by Danida. The programme will continue to build on the previous engagements within the all important livestock sector through the highly specialised international NGO Terra Nuova.This will include vocational education of veterinarians, research in improving livestock quality, upscale and diversification of livestock products for export.. Support will further be provided to veterinary control institutions The support to the sector will increase employment both among 10

11 women and youth, improve income generation, enhance technology development in a key sector and provide needed foreign exchange. With the aim to integrate a resilience approach and in support of reintegration of internally displaced persons the programme will support activities under the NGO Consortium for Somalia Resilience Programme 10 (SomRep). The engagement within this area will rest on the findings of the planned review of the Horn of Africa on Productive Capacities and Resilience in November Programme Management Structures and Technical Assistance The Embassy of Denmark in Nairobi will have overall responsibility for the Somalia Country Programme. As suggested the Programme will include 6 development engagements to multi donor basket funds and international NGOs. To enhance monitoring of programmes, dialogue with partners and the policy dialogue with the government(s), particularly in Somaliland the Danida Programme Office in Somaliland and the advisor to the Ministry of National Planning of Development will continue. To support implementation and monitoring of the programme in other areas of Somalia the formulation should look into opportunities for additional advisor(s) in other locations e.g. within partner organisations. Relevant studies including on possibilities for strengthening of CSO s will be conducted when and if required in support of the country programme and its interventions. 4. Preliminary Results Framework and Monitoring Mechanisms Indicators for the Country Programme will to the extent possible be derived from the Somali Compact. In some cases indicators will also be derived from partner organisations. The results framework will be developed with specific objectives and indicators for the interventions of the Country Programme and Danida funded activities. It will be a priority during the formulation to align the results to the Somali Compact and partners result framework, while at the same time adhere to the Danida Aid Management Guidelines. In the formulation it is necessary to apply a flexible approach due to the complex Somalia context and security situation, meaning that funds can be re-allocated to other parts and activities in Somalia if necessary. Denmark will align its monitoring process with the review processes defined in the Somali Compact. 5. Preliminary Assessment of Risk Development assistance in Somalia involves high political, security and financial risks. The government capacity is modest and the political process is unstable. Corruption is widespread in all layers of society and the security situation is volatile. Implementation of the Somali 10 Support to SomRep is currently included in the ongoing regional Danida programme for the Horn of Africa on Productive Capacities and Resilience is running from

12 Compact will require dialogue, building of trust, patience, time and risk willingness. The risk profile is high and in the worst case scenario risks can increase dramatically with negative impact on activities. A flexible programming approach is key and interventions need to be constantly monitored and analysed to ensure that the 'Do No Harm' principle is followed. The Danida Risk Management Tool constitutes the basis of the risk assessment that will be further developed during the formulation phase. Contextual risk: Somalia is a fragile state with political instability, high insecurity and open conflict. The Federal Government has very limited legitimacy throughout Somalia and it continues to be a challenge to make progress on building the federal structure and reach out to the regions.poverty and climate change strongly affect the environment through charcoal burning, overgrazing, floods or drought. These factors can affect the programme. To mitigate and possibly lower risks Denmark supports AMISOM through the stabilisation efforts and within this programme continue to assist the political dialogue and capacity building across regions. Enhanced transparency, accountability and resilience at national and local level will improve civil society s trust and public participation in political processes and development efforts Institutional and programmatic risk: Somalia is one of the most corrupt countries and there are major fiduciary and financial risks. Institutional capacity in government and civil society organisations is weak. Access to South Central remains limited and continues to be a challenge for monitoring of activities/on the ground because of armed conflicts and hence lack of security. The newly established multi donor trust funds will bring relatively large funding into a resource constrained environment, and may exacerbate federal-regional-clan tensions around power. The majority of the Danish support will be channeled through multilateral partners, which contribute to mitigate fiduciary risks, improve monitoring and oversight, as the fund managers will have more resources than bilateral donors and presence on the ground. Partners within the programme are known to be effective and management agents will be applied where the fiduciary risk is high. The engagement emphasises dialogue, inclusion, transparency and ownership to limit the sustainability risk. 6. Indicative Budget Within each thematic programme 10 million DKK will be allocated as unallocated funds to be used to support of objectives and thematic programmes within the programme. This will allow for flexibility within each of the thematic programmes as well as for the overall programme. 12

13 1. GOVERNANCE Dev. engag. DKK Democracy (elections) and peace building Interpeace 45 Somaliland Development Fund Fund Manager 45 UN Multi Partner Trust Fund (incl. UNDP Gender, JPLG and UNICEF Go-2-School) UN Somalia 120 Unallocated 10 Sub-total ECONOMIC GROWTH Dev. engag. DKK World Bank Multi Partner Trust Fund (incl. World Bank SomPrep) Somalia 100 Livestock quality and export Terra Nuova 50 Somalia Resilience Programme ( ) SomRep 40 Unallocated 10 Sub-total 200 TA Reviews, studies, TA and public diplomacy 10 Danida Programme Office(s)/ Advisors 20 Sub-total 30 TOTAL DKK

14 Annex I. Process Action Plan Dates Time line Country policy paper Country programme Documentation December January 2014 Drafting synopsis for the Country policy paper DONE 4 February 2014 Embassy Somalia Local Programme Committee DONE 6 February Local inspiration seminar in NBO DONE 11 February Deadline for sending draft to programme Committee secretariat DONE February 2014 March Public consultations of the synopsis for Country policy paper min. three weeks prior to presentation to the Danida Programme Committee DONE The Country programme budget is inserted into the proposal for the Finance Act hearing will be sent out by UGS (normally in February/March) DONE Planning of design and formulation. Process Action Plan DONE Draft synopsis for the Country policy paper Draft synopsis Draft synopsis Draft synopsis Synopsis for the Country policy paper Competence development for all PO staff at the Embassy (Kenya & Somalia) Workshop conducted by flying squad from KVA/MFA DONE 7 March 2014 Presentation of synopsis for the Country policy paper to the Danida Programme Committee DONE Synopsis incl. Annexes: process action plan, cover page with strategic questions. Presentation at meeting of résumé of responses from public consultation and proposal of how/whether these responses will be incorporated. 12 March 2014 (and ongoing) Discussion of the synopsis and 3 strategic focus areas with FGS (also ongoing) Draft synopsis without annexes 14

15 Dates Time line Country policy paper Country programme Documentation 17 March 2014 Presentation of synopsis to the Ministers DONE Analysis started Edited synopsis. Resume of responses during public consultation and proposal of how/whether these responses will be incorporated. 1 April 2014 Deadline: send edited synopsis to KVA (Mette Brink) DONE Early April 2014 Drafting concept note and annexes DONE Make contract with consultant (TANA) to develop concept note annexes. DONE 16 April 2014 Ensure the concept note for Somalia Country Programme is on the agenda for the Programme Committee ( 19.06) April-May 2014 April Translation of synopsis into Danish 28 April 2014 Presentation of the synopsis to the Council for Development Policy DONE 7 May 2014 Presentation of the synopsis to the Parliamentary Foreign Affairs Committee (URU) DONE 25 April Discussion paper on country concept note to the team 30 April Team discussion on the country concept paper DONE 1 May 2014 Drafting Policy Paper Somalia (15 pages) Policy: edited Synopsis Policy: Edited synopsis Programme: Draft concept note incl. annexes Policy: same as above, (but translated to Danish) only revised if major changes Policy: Draft policy paper 8 May 2014 Develop ToR for the Country Programme and publish restricted tender DONE Programme: Draft concept note and annexes ToR for developing Country Programme, annexes and development engagement documents 15

16 Dates Time line Country policy paper Country programme Documentation 9 May 15 May Hearing relevant offices (draft appendixes) DONE 22 May 2014 Forward concept note to KVA. Public consultation of concept note for Somalia Country Programme. 12 June 2014 Presentation of draft policy paper Somalia to the MFA senior management (Koncernledelsesforum) 19 June 2014 Meeting in Danida Programme Committee June 2014 Finalising Policy Paper Somalia Mid June 2014 end September 2014 Early September Medio September 2014 Ultimo September 2014 Ultimo September 2014 Presentation to stakeholders in Somalia e.g. in connection with visit FINAL draft Country policy paper for approval by the Ministers The Council for Development Policy and the Parliamentary Foreign Affairs Committee receives Country policy paper for orientation Lay out and publishing to be coordinated with PDK Development of Country Programme Document and development engagement documents Draft country concept paper Draft Concept Note Country Paper Draft Policy Paper Somalia Programme: Concept note and annexes Policy: FINAL draft Policy Paper Somalia Programme: draft country programme document (25 pages plus annexes) and development engagement documents FINAL draft Policy Paper Somalia Policy: Final draft Policy: Final Country policy paper Programme Document including all development engagements finalised Final Country policy paper Ultimo September 2014 ToR for appraisal forwarded to TAS. Programming: ToR 16

17 Dates Time line Country policy paper Country programme Documentation Early October November 2014 All draft documentation for Country Programme forwarded to TAS Appraisal Field Mission by TAS Draft country program document incl. development engagement documents and associated partner documentation Appraisal de-briefing note December 8 January 2015 February 2015 March 2015 March 2015 April 2015 April 2015 May 2015 May 2015 After the Danida External Grant Committee meeting After the minister s approval After Minister s approval After agreement(s) are signed Appraisal process finalized Revise Country Programme (After Appraisal) Country Programme Document with appropriation cover sheet forwarded to KVA Presentation to Danida External Grant Committee The minister approves the Country programme If direct legal basis for the commitment is not in place at Finance act: Presentation to the parliamentary Finance Committee Signing of legally bindning agreements (commitments) with partner(s) Book commitment in MFA s financial systems within budgeted quarter. Draft appraisal report submitted to Embassy for comments. Appraisal Report, recommendations summary Rev. Country Programme Country programme document, annexed and development engagement documents Resumé from Danida External Grant Committee Document for Finance Committee (Aktstykke) Government-togovernment agreement(s) and/or other legally binding agreements 17

18 Annex II. Assessment according to the 5 budget principles Assessment according to the five budget support principles 1. Assessment according to the five criteria at country level When preparing a country programme, there has to be an updated assessment of the five budget support criteria at country level. This would normally be a copy (update if necessary) of the assessment made when preparing the Country Policy Paper. The assessment can be copied if it was carried out within the past two years and if no major changes have occurred. If the latest version is older than that, or non-existent, an updated or new assessment should be prepared. The Guidelines for Development Contracts [LINK] include checklists and other useful information. There are no particular requirements regarding form or comprehensiveness, but each criterion has to be explicitly addressed. Hence, a joint analysis that covers all criteria can be used. The only separate thing that has to be added would then be the Danish Mission s conclusions. The five criteria to be assessed at country level: Criterion 1. Fundamental values Fundamental values, encompassing a minimum respect for human rights, pluralistic democracy and rule of law, including independence of the judiciary. Comments With the Federal Government, Somalia has a Government with a higher degree of legitimacy than in the last 10 years, but still remains to hold national elections planned for Somaliland though has a long track record of central and local democratic elections. Elders in Puntland have appointed a new president and government which took power in Rule of law remains weak across the country but in particular in South Central Somalia. Human rights abuses and forced displacement remain a challenge though with some political improvements in the last months, which remains to be implemented in practice. The Federal Government has launched a Justice Sector Reform Strategy as part of the Somalia Compact, which will improve the justice system and ensure proper independence of the judiciary once implemented. Full funding of the strategy is still required. 2. Solid national policies and plans for Somalia remains one of the poorest countries 18

19 poverty reduction, good governance and sustainable development. Solid public policies to achieve poverty reduction, good governance and sustainable development, including assessment of relevance, progress and political will as well as public sector capacity to implement policy and reforms. Policy framework for monitoring progress of public policies should also be assessed. The partnership between the development partners and the receiving country and experiences from cooperation up to date. in the world with huge gaps between the wealthy and the poor. At the moment no area of Somalia has an explicit poverty reduction strategy with measurable outputs in indicators. Economic politics are to a large extent driven by governments elite belief that a prospering private sector will reduce poverty, a view that by many is considered inadequate. With the Somali Compact , the Federal Government of Somalia has outlined key poverty reduction goals and reform processes for the next three years. World Bank is in the process of developing a Poverty Reduction Strategy Paper for Somalia. The Compact builds on the New Deal principles and has been endorsed by the development partners as the primary development planning tool for Somalia. The overall monitoring of the implementation will rest with the National Planning Commission and the High-Level Aid Coordination Forum. 3. Stable macro-economic framework. Main macroeconomic aggregates identified including potential sources of instability; macroeconomic and fiscal policies are in place and the quality of these, vulnerability to external shocks and efforts to strengthen macroeconomic resilience; efforts to strengthen domestic revenue mobilisation. The Compact is still to be supported by a more thorough indicator system and detailed monitoring framework, which is currently being developed joint by the Government and the development partners. The framework will be developed at national as well as sector level. Specific indicators and framework linked to the Compact will be developed for Somaliland. Somalia is marred by high levels of poverty, fragility and instability as a consequence of internal conflict, lack of economic activities and volume, as well as the presence of competing authorities of different parts of Somalia. As a consequence, the Federal Government is only in control of parts of the country. Recurrent droughts compounded by conflict 19

20 influence the macro-economic situation with fluctuating domestic production and eventually fluctuating revenues for the Government. Livestock continues as the primary item of export commodity and foreign exchange earner. Remittance sent to all part of Somalia constitutes an important economic factor, which to some extend is still unknown in its operations and volume. 4. Public financial management Expert appraisal of quality and capacity in public finance management, including credibility of the budget, anticorruption measures, comprehensiveness and transparency, policy-based budgeting, predictability and control in budget execution, accounting, recording and reporting and external scrutiny and audit. Macroeconomic resilience and revenue generation is sought strengthened through a new reform programme, which is currently being implemented. Revenues have increased, but remain a limited an unstable income. Furthermore, revenue generated by regional authorities is outside the control of the Government. The Federal Government has taken over a financial management system, which in the past, according to the World Bank, was used by the Government executive branch to their own benefit. The Federal Government is in the processes of addressing this misuse of funds and non-transparent and unaccountable public administration through a PFM reform process. Focus on the reform include financial management as well as revenue generation. A recent (March 2014) minor survey indicates that internal budget control and auditing processes are improving. However, the Autumn 2013 disclosure of misuse of Central Bank funds shows that reforms are still to have the needed effect. At the same time Somalia continues to rank at the bottom of the Corruption Perception Index. The existing parallel financial management systems and revenue generation in Somaliland and Puntland means that the PFM situation differs across the country. The situation in Somaliland is better due to higher degrees of stability and continued 20

21 5. Transparency and oversight of the budget Disclosure of all relevant fiscal information in a timely and systematic manner. Scrutiny by parliament, auditors, local authorities, civil society organisations and media. financial management reforms over the last 10 years not least in the municipalities, which all have publicly advertised budgets approved by central government, and where accountability and transparency continues to rise not least because of UN support and a willingness from the local governments. This has enabled a continued increase in government revenues and improved but yet incomplete financial management systems, which however allows e.g. partial UN use for local government fund transfer, and increasing use of Government systems in the Somaliland Development Fund. No government contribution to the Somaliland Development Fund is included. The mini-budget 2012 and the 2013 budget, were the first budgets to be approved legally by parliament in Somalia in more than 10 years. Parliament is the most representative in the same period, though national elections are still to take place. Parliament has a financial committee overseeing the budget. The budget is publicly available. Local governments in Somalia (except Somaliland) are still to hold local elections and oversight of the local level budget is not formalised. Media and civil society have improved access to financial management and budgetary information, though media is still targeted and its rights violated. In Somaliland and Puntland, the budget is approved by an elected parliament in Somaliland and an appointed Parliament in Puntland in accordance with the respective constitutions. Local governments are elected in Somaliland. In Puntland, where selected councils and mayors have been in power for more than 10 years, local government election was cancelled in July In both places UN is together with the municipalities 21

22 The Danish Mission s conclusion is it assessed to be feasible to provide budget support and if not which major obstacles have been identified. strengthening inclusive planning and development of Municipal Development Frameworks which provides an important asset for local governance, planning and transparency. These key activities are most successful in Somaliland while Puntland still lacks many developments to take place in order to advance local governance. Somalia is still too fragile and the fiduciary risks too great to engage in general budget support and thus for Denmark to sign a development contract with the Federal Government. However improved financial management does increasingly allow for use of government systems with external scrutiny through e.g. the use of financial management agents. 2. Assessment according to relevant criteria at sector/thematic level is not relevant as no sector budget support is proposed. 22

23 Annex III. HRBA/Gender Screening Note Tool for Human Rights Based Approach (HRBA) and Gender Equality Screening Purpose: The HRBA and Gender Screening Note complement the HRBA Guidance Note and the upcoming Gender Equality Strategy and the Gender Equality Toolbox. The purpose of the note is to facilitate and strengthen the application of the Human Rights Based Approach and mainstreaming of gender equality programming related to Danish development cooperation. It can be used as an inspirational checklist by all staff. The information in the note should be based on the analysis undertaken as part of the preparation of the Country policy paper and should draw on major Human Rights and gender equality analysis relevant for the country such as UPR-processes, reports and documents from OHCHR, EU HR Strategy, CEDAW-reporting as well as relevant analysis prepared by other major donors. The Screening Note should be attached to the (country) programme concept note, and the questions raised below should be reflected in the (country) programme document. Appraisal of country programmes will include a specific focus on HRBA and Gender Equality. Basic info Title Country/ region Budget in DKK mio. Starting date and duration Somalia Country Programme Somalia DKK 450 Million Human Rights Based Approach Assess whether a Human Rights (HR) Based Approach has been applied in the programme: Human Rights Assessment and Standards Issues: yes no Explain: Have major HR analysis relevant for the country been consulted (UPR, OHCHR, EU HR Strategy, other relevant donor documents) X The key UN and EU documents have been consulted. These illustrate substantial human rights challenges across Somalia. The programme is in line with the Somalia compact which includes five peacebuilding and statebuilding goals which applies human rights standards and adheres to international humanitarian law i.e. ensuring equal access to justice, combatting the recruitment of child 23