Somalia's Finance Minister on Economic Development, IMF F&D
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Bibliographic details
- Published: March 1, 2020
Context and background
- Interview with Somalia’s Finance Minister Abdirahman Dualeh Beileh, edited for length and clarity.
- Publication: F&D Magazine, "Rebuilding Somalia", March 2020.
- Somalia experienced "no recognized government for 20 years" and a "total lack of institutions" prior to 2012.
- Turning point identified as 2012 when "the first government was elected in a manner that resembled normalcy."
Governance and institutional rebuilding
- Major governance challenges described: "total suspension of law and order," reliance on clans and elders, loss of records and institutional memory.
- Progress noted: establishment of a functioning government, agreement on bills to govern finances, taxes, and customs; some laws "have already been harmonized" with ongoing work supported by the IMF and international community.
- Security remains a concern: "There are still some security problems, some terrorist elements in Somalia," but "by and large, we have rules that guide our economy nationwide."
- Political-economic objective articulated: "one nation, one economy, and one budget" as a common agenda.
Debt and access to external finance
- Total estimated debt: $5.3 billion.
- Constraint described: lack of access to international financial institutions and concessionary/grant resources while in arrears.
- Strategy: prioritize clearing arrears through the Heavily Indebted Poor Countries Initiative to regain access to grant resources from the IMF, the World Bank, the AfDB, and other institutions.
- Intended use of reaccessed resources: rebuilding the country to "generate more jobs."
Labor market and demographics
- Demographic statistic: "young people making up 70 percent of the population."
- Policy priority: create job opportunities for youth; internal resource mobilization so "the government’s budget must be funded by internal resources" within five years.
Diaspora and remittances
- Diaspora described as "a blessing" contributing businesses, skills, and remittances to Mogadishu and Somalia broadly.
- Quantified impact on household food security during crisis: "I would say 80 to 90 percent of Somali families were fed during our period of difficulty thanks to the diaspora community."
Vision and near-term scenario (five-year outlook)
- Ambition: "If the current trajectory holds, we can be a middle-income country."
- Target conditions in five years:
- A self-sufficient government "not asking for handouts."
- Government budget funded by internal resources.
- Continued need for investment due to "infrastructure has been totally destroyed."
Role of culture in development
- Cultural resilience: "when we lost everything else, the culture and the letters remained."
- Cultural expression (poetry and songwriting) presented as a unifying force and a means of articulating national identity and emotions during recovery.
Source: Somalia's Finance Minister on Economic Development, IMF F&D (F&D Magazine, March 2020).
Content in this bundle
- إعادة بناء الصومال
- Reconstruir Somalia ● Finanzas y Desarrollo ● Marzo de 2020
- Une Somalie en reconstruction — Entretien avec Abdirahman Dualeh Beileh
- Somalia’s Finance Minister on Economic Development – IMF F&D
- 重建索马里 - 前 沿 - 金融与发展 - 国际货币基金组织季刊 -2020年3月号·第57卷·第1期