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geopolicity

in Economic Intelligence & Public Sector Management




Final Draft
Specialists

Study on Sector Functional Assessments within


Education,
Health and WASH in Somaliland














April 15 2012
UNICEF Somalia Study on Functional Assignments INCEPTION REPORT DRAFT
JPLG
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Final Report


CONTENTS:
EXECUTIVE SUMMARY ......................................................................................................................VIII
LAW 23/2002 REQUIRES URGENT REVISION ..................................................................................................... X
STRENGTHENING SECTOR AND LOCAL GOVERNMENT FINANCING ARRANGEMENTS .................................................. XI
SUCCESSES ARE SHAPING THE PACE AND DEPTH OF SERVICE DELIVERY ................................................................. XII
GENERAL FINDINGS FOR THE DECENTRALIZATION PROCESS ............................................................................... XIII
1. INTRODUCTION, SCOPE, APPROACH AND ECONOMIC CONTEXT ................................................... 2
1.1 INTRODUCTION .................................................................................................................................. 2
1.2 SCOPE & RATIONALE ........................................................................................................................... 2
1.3 APPROACH TO UNBUNDLING THE SECTORS ............................................................................................. 3
1.4 GENERAL ECONOMIC FRAMEWORK........................................................................................................ 4
1.5 SOMALILAND REVENUE TRENDS ............................................................................................................ 5
1.6 SOMALILAND EXPENDITURE TRENDS ...................................................................................................... 5
1.7 FINANCING THE NDP AND EDUCATION, HEALTH AND WASH SECTORS ........................................................ 6
1.8 IMPLICATIONS FOR UNBUNDLING ........................................................................................................ 7
2. CURRENT FRAMEWORK FOR DECENTRALZED GOVERNANCE....................................................... 11
3. EDUCATION SECTOR ASSESSMENT FINDINGS ............................................................................. 21
3.1 INTRODUCTION ................................................................................................................................ 21
3.2 EDUCATION SECTOR SERVICE DELIVERY CAPABILITIES .............................................................................. 22
3.3 MOEHS ABILITY TO DELIVERY SERVICES EFFECTIVELY.............................................................................. 50
3.4 PROPOSED UNBUNDLING APPROACH ................................................................................................. 61
3.5 REVIEW OF FUNCTIONAL ASSIGNMENTS ............................................................................................... 62
3.6 SERVICE DELIVERY MODEL DEVELOPMENT ............................................................................................ 63
3.7 EDUCATION SECTOR PROPOSED NEXT STEPS....................................................................................... 64
4. HEALTH SECTOR ASSESSMENT FINDINGS .................................................................................... 69
4.1 INTRODUCTION ................................................................................................................................ 69
4.2 HEALTH SECTOR SERVICE DELIVERY CAPABILITIES ................................................................................... 71
4.3 MOH ABILITY TO DELIVER SERVICES EFFECTIVELY ................................................................................... 93
4.4 PROPOSED UNBUNDLING APPROACH ............................................................................................... 100
4.5 REVIEW OF FUNCTIONAL ASSIGNMENTS ............................................................................................. 101
4.6 HEALTH SECTOR PROPOSED NEXT STEPS .......................................................................................... 104
5. WASH SECTOR ASSESSMENT FINDINGS..................................................................................... 110
5.1. INTRODUCTION .............................................................................................................................. 110
5.2. WASH SECTOR SERVICE DELIVERY CAPABILITIES ................................................................................. 111
5.3. MMEWR AND LOCAL GOVERNMENT DISTRICTS ABILITY TO DELIVER SERVICES EFFECTIVELY ...................... 135
5.4 REVIEW OF FUNCTIONAL ASSIGNMENTS ............................................................................................. 141
5.5 PROPOSED UNBUNDLING APPROACH ............................................................................................... 141
5.6 SERVICE DELIVERY MODEL DEVELOPMENT .......................................................................................... 142
6. RECOMMENDATIONS FOR STRENGTHENING DELIVERY ............................................................. 150
REFERENCES..................................................................................................................................... 153
ANNEX I LIST OF KEY INFORMANTS.............................................................................................. 157
ANNEX II DISTRICTS & GRADES ACCORDING TO LAW 23/2002..................................................... 160

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ANNEX III JPLG MEETING SCHEDULE: OCTOBER- NOVEMBER 2011, HARGEISA ............................ 162
ANNEX IV FOCUS GROUPS ATTENDEES ........................................................................................ 171

TABLES:
TABLE 1: SOMALILAND EMPLOYMENT STATISTICS (%) (2002) ............................................................................................. 4
TABLE 2: GOVERNMENT REVENUES (2005-2009) ............................................................................................................ 5
TABLE 3: FUNCTIONAL CLASSIFICATION OF STATE EXPENDITURE (2011)................................................................................. 6
TABLE 4: ACTUAL BUDGET SURPLUS/ DEFICIT (2005-2009) ............................................................................................... 6
TABLE 5: PROPOSED CAPITAL INVESTMENT BY SOCIAL SECTOR.............................................................................................. 7
TABLE 6: SOMALILAND NATIONAL BUDGETS BY ENTITY (2009-2011) .................................................................................. 8
TABLE 7: GROWTH AND POVERTY REDUCTION POLES (NDP 2012-2016) ........................................................................... 11
TABLE 8: SOMALILANDS REGIONS AND DISTRICTS BY GRADE ACCORDING TO LAW 23/2002 .................................................. 12
TABLE 9: SOMALILAND PRIMARY AND SECONDARY EDUCATION ENROLMENT (1995/6) .......................................................... 26
TABLE 10: PRIMARY AND SECONDARY EDUCATION ENROLMENT (2008/9).......................................................................... 27
TABLE 11: SUMMARY OF SERVICE PRODUCTION FUNCTIONS .............................................................................................. 31
TABLE 12: FINDINGS FROM HARGEISA ........................................................................................................................... 37
TABLE 13: MOE SOMALILAND CONSOLIDATED BUDGET PROFILES 2009-2011 (SL.SH)......................................................... 38
TABLE 14: FORECAST CONSOLIDATED MOE BUDGET 2012 ............................................................................................... 40
TABLE 15: INDICATIVE PRIMARY AND SECONDARY EDUCATION SECTOR BUDGET AND IMPLEMENTATION MATRIX (NDP) .............. 44
TABLE 16: SOMALILAND LEGAL/NORMATIVE INSTRUMENTS AND MOE SERVICE DELIVERY....................................................... 47
TABLE 18: KEY FIGURES ACROSS LEVELS OF HEALTHCARE .................................................................................................. 79
TABLE 19: ANTICIPATED STRUCTURAL CHANGES UNDER EPHS........................................................................................... 79
TABLE 20: SOMALILAND NATIONAL AND HEALTH BUDGETS (2009-2011)........................................................................... 83
TABLE 21: MONTHLY SALARY SCALES & INCENTIVE OR SALARY TOP-UPS ............................................................................. 83
TABLE 22: PROJECTED MTFF BUDGET CEILINGS FOR MOH (2010 2013) ........................................................................ 84
TABLE 23: AVERAGE SALARY RANGES IN SOMALILAND ...................................................................................................... 88
TABLE 24: SOMALILAND LEGAL/NORMATIVE INSTRUMENTS AND MOH SERVICE DELIVERY ...................................................... 91
TABLE 25: DEFINITION OF FUNCTIONAL ASSIGNMENT TO DIFFERENT LEVELS OF GOVERNMENT: MINISTRY OF HEALTH .................. 97
TABLE 26: POSSIBLE HEALTH PRODUCTION AND PROVISION ASSIGNMENTS FOR SOMALILAND ................................................ 102
TABLE 23: DEFINITION OF FUNCTIONAL ASSIGNMENT TO DIFFERENT LEVELS OF GOVERNMENT: WATER RESOURCES DEPARTMENT 120
TABLE 27: SOMALILAND GOVERNMENT AND MMEWR BUDGET 2009-2011................................................................ 128
TABLE 24 : LEGAL PROVISIONS - WASH ....................................................................................................................... 133
TABLE 25: RECOMMENDED SKILLS & STAFFING LEVELS FOR WATER RESOURCE DEPT STAFFING SKILLS/LEVELS.......................... 147
TABLE 26: DISTRICT ADMINISTRATION CAPACITY ASSESSMENT FRAMEWORK SUMMARY ....................................................... 152
TABLE 27: JPLG MEETING SCHEDULE ......................................................................................................................... 162
TABLE 28: EDUCATION FOCUS GROUP ATTENDEES......................................................................................................... 171
TABLE 29: HEALTH FOCUS GROUP ATTENDEES .............................................................................................................. 171
TABLE 30: WASH FOCUS GROUP ATTENDEES .............................................................................................................. 171

FIGURES:
FIGURE 1: UNBUNDLING SECTOR PRODUCTION AND PROVISION PROCESSES HEALTH SECTOR ................................................... 3
FIGURE 2: SOMALILANDS EXECUTIVE STRUCTURE (ILLUSTRATIVE) ....................................................................................... 14
FIGURE 3: MAP OF SOMALILAND................................................................................................................................... 17
FIGURE 4: SOMALILAND - MINISTRY OF EDUCATION PROPOSED ORGANIZATIONAL STRUCTURE ................................................. 25
FIGURE 5: PROPOSED ORGANIZATION OF HIGHER EDUCATION IN SOMALILAND ...................................................................... 29
FIGURE 6: STRUCTURE OF NON-FORMAL EDUCATION DEPARTMENT TO MOE, SOMALILAND .................................................... 31
FIGURE 7: FINAL STRUCTURE OF HR DEPARTMENT, MOE, SOMALILAND............................................................................... 33
FIGURE 8: DRAFT STRUCTURE OF GENDER UNIT, MOE, SOMALILAND .................................................................................. 34

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FIGURE 9: PROPOSED STRUCTURE OF DEPARTMENT OF QUALITY ASSURANCE AND STANDARDS, MOE, SOMALILAND .................... 35
FIGURE 10: PROPOSED STRUCTURE OF DEPARTMENT OF FINANCE AND ADMINISTRATION, MOE, SOMALILAND ........................... 35
FIGURE 11: PROPOSED MOE, SOMALILAND, SERVICE DELIVERY STRUCTURE ......................................................................... 36
FIGURE 13: THE WHO HEALTH SYSTEM FRAMEWORK ...................................................................................................... 69
FIGURE 14: CURRENT STRUCTURE OF SOMALILAND MOH ................................................................................................. 74
FIGURE 15: GOVERNMENT HEALTH POLICY AREAS ........................................................................................................... 77
FIGURE 16: FINANCING FLOWS IN NATIONAL HEALTH SYSTEMS .......................................................................................... 87

BOXES:
BOX 1: DISTRICT CAPACITY ASSESSMENT SAMPLE EDUCATION FINDINGS ............................................................................ 46
BOX 2: DISTRICT CAPACITY ASSESSMENT SAMPLE HEALTH FINDINGS.................................................................................. 72






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Assessment'Team'
The$ study$ team$ was$ directed$ and$ led$ by$ Dr.$ Peter$ J.$ Middlebrook$ (Managing$ Director,$ Geopolicity),$ Dr$ Frank$
Dall$(EducaBon$Consultant),$Salem$Shouhan$(WASH,$Consultant)$and$Albana$Vuji$(Geopolicity$WATSAN$Expert),$
Dr.$Kees$Rietveld$(Health$Consultant)$and$Dr.$Peter$J.$Middlebrook$(health),$Andrew$Howstan$(Senior$Project$
Manager,$ Geopolicity),$ Diana$ Stellman$ (Senior$ Researcher,$ Geopolicity)$ and$ Saeed$ Ibrahim$ Caydid$ (Assistant$
Project,$Manager,$Geopolicity).$

Acknowledgments:'
From$ the$ Government$ of$ Somaliland,$ we$ wish$ to$ thank$ Rt.$ Hon.$ Abdirahman$ M.$ Abdillahi,$ Speaker$ of$ the$
House$for$his$useful$guidance$in$relaBon$to$legislaBve$provisions$around$local$government,$H.E.$Zamzam$Aden$
the$Minister$of$EducaBon$,$H.E.$Hussein$Mohamed$the$Minister$of$Health,$H.E.$Hussein$Dualeh$the$Minister$of$
MMEWR,$Abdullahi$H.$Ige$Director$General$Ministry$of$Interior,$Eng.$Hussein$M.$Jiciir$Mayor$of$Hargeisa$and$
the$heads$of$local$governments.$

From$the$United$NaBons$we$wish$to$thank$Maureen$Njoki$(UNICEF$JPLG$Manager)$and$Sarah$Elamin$Nginja$
(UNICEF$JPLG$Coordinator)$for$their$excepBonal$guidance$and$advice,$as$well$as$Nancy$Balfour$(UNICEF$$Chief$
of$ WASH)$ and$ the$ rest$ of$ the$ WASH$ team,$ MeXe$ Nordstrand$ (UNICEF$ Chief$ of$ EducaBon),$ Lisa$ Doherty$
(UNICEF$ EducaBon)$ Marla$ Stone$ (EducaBon$ Sector$ Coordinator)$ and$ the$ rest$ of$ the$ EducaBon$ secBon$ team,$
John$ Agbor$ (UNICEF$ $ Chief$ of$ Health)$ and$ the$ health$ secBon$ team,$ Osamu$ Kunii$ (UNCIEF$ Chief$ of$ ACSD),$
Hannan$Sulieman$(UNICEF$Deputy$RepresentaBve),$Debra$Bowers$(Chief,$Planning$Monitoring$and$EvaluaBon),$
Patrick$Duong$(UNDP$JPLG$$Senior$Program$Manager),$Joanne$Morrison$(former$UNDP$JPLG$$Senior$Program$
Manager)$and$Marina$Madeo$(Health$Sector$Coordinator,$UNOPS).$

Finally$ we$ wish$ to$ thank$ the$ many$ donor$ representaBves$ who$ providing$ valuable$ comments$ and$ feedback,$
with$ a$ parBcular$ menBon$ for$ Edda$ Costarelli$ (EEASZNAIROBI)$ and$ Paul$ Smith$ (EEASZNAIROBI)$ from$ the$
European$Union$for$valuable$insights$and$contribuBons.$

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Abbreviations
ABE Accelerated Basic Education
AET African Education Trust
ANC Ante Natal Care
CEC Community Education Committee
CHW Community Health Worker
DAD Development Assistance Database
DC District Council
DG Director General
DEO District Education Office/r
DFID Department for International Development
DHB District Health Board
DHO District Health Office
DMO District Medical Officer
DVET Directorate of Vocational Education & Training
EFA Education for All
EIA Environmental Impact Assessments
EMIS Education Management Information System
EPI Expanded Program on Immunization
EPSH Essential Package of Health Services
ESSP Education Sector Strategic Plan
FGM Female Genital Mutilation
FMIS Financial Management Information System
FPE Free Primary Education
GoS Government of Somaliland
GPI Gender Parity Index
GU Gender Unit
HAVOYOCO Horn of Africa Voluntary Youth Committee
HC Health Centre
HEC Higher Education Committee
HMIS Health Management Information System
HP Health Post
HR Human Resources
HRD Human Resources Development
HRM Human Resources Management
HRMIS Human Resources Management Information System
HSS Health Systems Strengthening
HTs Head Teachers
HWA Hargeisa Water Agency
IDPs Internally Displaced Persons
INGO International Non Governmental Organization
ICDSEA Integrated Capacity of Somali Education Administrations Program
IDA International Development Association
JPLG UN Joint Program on Local Governance and Decentralized Service Delivery
LG Local Government
M&E Monitoring and Evaluation
MCH Maternal and Child Health Centre
MDG Millennium Development Goals
MMEWR Ministry of Mines, Energy and Water Resources
MoE Ministry of Education
MoEHS Ministry of Education and Higher Studies
MoF Ministry of Finance

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MoH Ministry of Health
MoI Ministry of Interior
MoLSA Ministry of Labor and Social Affairs
MTEF Medium Term Expenditure Framework
MTFF Medium Term Fiscal Framework
MoPD Ministry of Planning and Development
MoPDE Ministry of Pastoral Development and Environment
NDP National Development Plan
NER National Enrolment Ratio
NERAD National Emergency Relief and Disaster Organization
NFE Non-formal Education
NGO Non Governmental Organization
NHPC National Health Professional Council
NDS National Development Strategy
O&M Operation and Management
OECD Organization for Economic Co-operation and Development
PAR Public Administration Reform
PENHA Pastoral and Environmental Network of the Horn of Africa
PFM Public Finance Management
PHU Primary Health Unit
PPP Public Private Partnerships
PPP Purchasing Parity Price
PRA Participatory Rural Appraisal
RC Regional Council
RDP Somali Reconstruction and Development Program
REO Regional Education Office/r
RHC Referral Health Centre
RHO Regional Health Office
RHB Regional Health Board
RMO Regional Medical Officer
SBM School Based Management
SDA Somaliland Drug Authority
SDM Service Delivery Model
SEC School Education Committee
SNEA Somaliland National Education Act
SNEP Somaliland National Education Policy
SWM Solid Waste Management
TVET Technical and Vocational Education and Training
UN United Nations
UNDP United Nations Development Program
UNICEF United Nations Childrens Fund
UN-HABITAT United Nations Human Settlements Program
UNDP United Nations Development Program
UNESCO United Nations Educational, Scientific and Cultural Organization
USAID United States Agency for International Development
W&WW Water Supply and Wastewater Services
WASH Water, Sanitation and Hygiene
WATSAN Water and Sanitation
WB World Bank
WHO World Health Organization

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EXECUTIVE SUMMARY

ASSESSMENT OBJECTIVE
The objective of this assessment, according to the Terms of Reference, is to conduct a scoping and
explanatory study to help identify current service delivery practices and capacity within the existing
education, health and water sectors in Somaliland, as well as the current response to various policy
documents and frameworks adopted by the sector Ministries.

GENERAL BACKGROUND
This functional assessment of the Education, Health and Water, Sanitation and Hygiene (WASH)
sectors of Somaliland supports sector strengthening, improved service delivery and the identification
of key functional assignments at the regional and district levels, for both the sector Ministries and
Local Government. This assessment report brings together primary and secondary data from a three-
week field trip to Somaliland, which was subsequently strengthened through desk-based reviews and
three workshops, which were held in Nairobi in December 2011 and January 2012, and in Hargeisa (4
day sector validation) in March 2012. The fieldwork was conducted in close coordination with the
Government of Somaliland (GoS), and included field trips to selected regions and districts. As a result,
this assessment not only describes the existing service delivery models and practices for the
sectorsincluding the broad functional assignments of vertical sector ministries and local
governmentit also balances sub-national and central views given that the majority of regional, district
and local government structures are poorly financed and frequently unstaffed.

With the majority of production (delivery) services provided by default through local communities, the
private sector, national and international NGOs and international donors, Governments role (outside
of paying nominal salaries) is largely limited to policy making, planning, budgeting and regulatory
oversight and coordination. As the majority of sector regional and district offices are understaffed or
not staffed at all, often without infrastructure, transport and other basic necessities, sector delivery is
poorly regulated and fragmented. Clearly, unless Government (supported by donors) outlines the
preferred service delivery models for the sector, including the functional mandates in production and
provision, with functions being closely coordinated with Local Government, the weak regulatory and
compliance environment will continue.

Key to the entire narrative presented here, is an understanding of why Law No. 23/2002 (which
provides the legal basis for Local Government) has only been partially implemented, and how best to
focus investments at the local government level whilst also building core sector capacities in the
regions and districts. Further, with a view to formalizing the functional assignments of regional and
district deconcentrated sector structures, and the roles of local government, both sectoral and cross-
sectoral proposals are made. These include removing intra-governmental fiscal (revenue) transfer
imbalances, considering sector categorical grants, and understanding that unless service delivery models
are quickly agreed and provision functions strengthened, early prospects for improving sector delivery
will be thwarted.1


1
Sector categorical grants appropriate funds for a specific purpose, and frequently require the local government to provide a
small matching grant. Grants can either be made through formula or application. Block grant or broad grants are less specific
and generally preferred by local governments.

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GENERAL ORGANIZING OBSERVATIONS
Central observations around which the analysis can be understood are summarized below:
Form, Function and Finance: Whilst form should be determined by function, and function
similarly determined by policy mandate, in the absence of sufficient fiscal resources, setting
functional assignments without recourse to available resources can lead to systemic failure. As
a result, in the context of Somaliland the size of government fiscal resources are obviously
critical to determining Governments role in both provision and production. Currently, most
regional and district offices are either poorly staffed or completely unstaffed, and even though
the functional assignments have been described for different levels, in many regions and
districts there are no staff in place to take such assignments forward. Similarly, many Social
Affairs Departments in the District Councils have 1-4 staff only, yet Law 23/2002 dictates a
leading role in service delivery.

Decentralization is not a Panacea: Decentralization alone, in the absence of core central
government capacities to deliver effective policy, planning, budgeting and regulatory oversight
and enforcement can lead (as it has) to highly fragmented service arrangements and a poorly
regulated private sector. In Somaliland, services are decentralized by default and not design.
Given the weak fiscal framework, strengthening District Sector Structures is necessary.

Stronger Central Functions are Also Required to Improve Decentralized Delivery: In the context
of fragmented service delivery (there are for example at least five different curricula in the
education system), unless central provision functions (some of which can be deconcentrated to
the regional or district level) are strengthened and service delivery model standards established
and enforced, the potential benefits of decentralized delivery may be undermined by weak
oversight and monitoring.

With Government Fiscal Resources Improving, Donor Trust Funds Are Vital to Build Capacities
Now that can soon be Financed On-Budget: The Governments recently established Medium
Term Fiscal Framework (MTFF) underscores the significant progress being made in generating
revenues. Donors need to consolidate support to the sectors, perhaps discussing the use of
sector categorical grants or improve the current block grants (fiscal transfer) arrangement to the
districts, as well as piloting new sector financing models, as critical to improved delivery.

The Private Sector and Diaspora Are Key to Progress: The private sector plays a critical role in
all three sectors, and in many cases is the cornerstone of service delivery. In all cases, the
leading role of the private sector, and indeed the role of the international Diaspora, can be
better leveraged.

A Service Delivery not Decentralization Lens must Drive Sector Development: The assessment
team has not been guided by the need to push decentralization, but rather to use a service
delivery lens to determine which is the optimal balance of central-sub-national functional
assignments to maximize returns to service delivery quality and coverage, taking both vertical
sector Ministries and local government into consideration.

District and Regional Functional Assignments will Remain Largely Provisional in Nature, even
in Grade A Districts, unless sub-national transfers are increased: Planning, coordination,
regulatory oversight and compliance, nominal capital financing and support for maintenance

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costs are all that regional and district sector Ministries and Local Governments can provide,
under the current resource framework.

LAW 23/2002 REQUIRES URGENT REVISION
The constitution defines the revenue and expenditure responsibilities of Central Government, it does
not, however, define the expenditure responsibilities of the Regions and District authorities claimed by
government. Further the Law on decentralization (No. 23/2002 and the 2007 amendment) was never
costed or sufficiently financed to be effective, nor were subsidiary regulations put in place to clarify
sector service delivery mandates of local government. In the same vein, policies that guarantee
universal access to essential and basic services (primary education, health care, WASH) come at a cost,
and unless sufficient resources are provided, the policies will fail. In a weak fiscal environment efforts to
maximize efficiencies in delivery are, therefore, critical to success. Furthermore, unless the intra-
governmental fiscal transfer system (and the principles that guide it) are further developed, with
subventions made to better even out fiscal imbalances and to improve baseline services, the
implementation of Law No. 23 will continue to be limited by lack of resources. As a result, the Social
Affairs Departments to be established remain either under-staffed or without staff, limiting the role that
local government plays in sector governance.

Local government Law No. 23/2002 (including the 2007 amendment) has only been partially
implemented due to the substantial fiscal disparities between Grades A, B, C and D districts alongside
uncertainty over the sectoral assignments of the sector Ministries and local government. Grade A and
B districts have a staffing establishment from 50 to 300 staffwhich is financed through central
government fiscal transfers and local government own local revenue mobilizationand in Berbera
District (Grade A) this has led to the establishment of a small health department which coordinated its
activities with the District Health Officer. In Grade C and D Districts, where staffing can range from 8-20
staff members, lack of fiscal resources makes execution of the functional assignments ascribed under
Law No. 23/2002 unaffordable and, therefore, impossible. As a result, the level of authority exercised by
local governments depends substantially on:

The number of public services they finance;
Whether the costs of these services are in line with their revenue base (fiscal transfers, central
and local government tax and revenue sharing and non-tax incomes); and,
Whether they are free to adopt their own fiscal and expenditure policies to maintain an
acceptable fiscal balance given revenue and expenditure trade-offs.

IMPLEMENTING SECTOR POLICY & STRATEGY ENVIRONMENT
Despite constraints, the overall sector policy and strategy environment are improving. In Somaliland
there is a draft national health strategy guiding future priorities and a draft Human Resources (HR)
policy (for human resources for health). Furthermore, a National Education Policy has been in place
since 2005 and a National Education Act was approved in 2006. There is also a Somaliland Education
Sector Strategic Plan for the period 2007-2011 and an Operational Plan for 2009. The National
Development Plan (2012-2016) remains the most recent policy document. In addition, a Free Primary
Education (FPE) policy was introduced in January 2011. Additional documents approved include a
Strategic Plan for Primary Education for Disadvantaged Groups, a document outlining Strategic Issues in
Teacher Management and Development (approved in 2008), a Funding Plan for Expanded Access to
Primary Education, a Secondary Education and Technical and Vocational Training (TVET) Strategic
Document for the period 2008-2009, a Teacher Education Policy, a Teachers' Code of Conduct, and an
Accelerated Basic Education (ABE) Curriculum, Transfer Policy and Implementation Strategy. In addition,

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a Gender Policy has been drafted and a Gender Scholarship Fund is in place. Implementing these and
other policies however not only requires clarity with regards to functional mandates, it also requires
that financial resources and staff are recruited to implement sector policies, such capacities being the
major gap.
STRENGTHENING SECTOR AND LOCAL GOVERNMENT FINANCING ARRANGEMENTS
Fiscal Futures Are, However, Beginning to Balance Public and Private Delivery Systems: Since Law No.
23/2002 was enacted, government sources of revenue have increased from less than US$10 million to
more than US$50 million, and the 2011 MTFF provided by the Ministry of Finance (MoF) predicts
revenues of around US$90 million in 2013. With the revenue to GDP ratio growing from less than 3% in
2002 to more than 10% in 2013 (and with a larger economy), the Government will be able to discharge
more effectively part of its sector production functions, whilst also strengthening provision functions.
Somalilands service delivery framework has therefore been shaped by the following factors:

The provision of direct budget support (external assistance provided through the government
treasury system) is undermined by a number of factors including perceived low fiduciary
standards, the current limited engagement of the World Bank and IMF, which is often critical to
creating the fiscal space to strengthen sector governance;
The two decade long humanitarian crisis has meant that humanitarian budget lines have been
tapped by donors, with limited direct support for establishment of state provision and
production capacities and resulting in strong private sector and non-governmental support, as
well as community mobilization has so far been the backbone of service delivery; and,
Weak state coordination capacities and the need for delivery has meant that much support has
circumvented government coordination systems.

What can be done to Resolve Sector and Local Government Fiscal Constraints? Strengthening the
decentralization of decision-making authority to autonomous local government, requires greater clarity
with regard to the different functional assignments of local government and the sub-national
assignments of the core sectorseducation, health and WASH. The following measures will, therefore,
need to be considered if local government is to play a key role in shaping economic growth and poverty
reduction futures:

Improve Revenue Mobilization: A surge in local government revenue mobilization is required,
which means improving tax and non-tax collections, recording, depositing and permissible
expenditures and broadening the revenue base, yet without creating serious market distortions
that could impede growth;
Improving Harmonization and Alignment: Harmonizing and aligning external assistance (which
can support intra-governmental fiscal transfers) to support local government financing of basic
and essential services until tax reforms, improved intra-governmental fiscal transfers and other
measures such as community financing can meet expenditure needs;
Strengthen Sector Financing Arrangements to Limit Parallel Delivery Systems: The composition
of public spending needs to be carefully reviewed (for horizontal and vertical functions as well as
gaps) with a view to making expenditure plans realistic. It is, therefore, important not to
promote un-necessary or parallel structures but rather to group common functions and services
to maximize the rate of return on government spending; and,
Improving the Current Local Government Grant Formula and Consider Sector Categorical
Grants: A more conventional and transparent intra-governmental fiscal transfer system needs to
be developed (to remove vertical and horizontal imbalances), so that Grade D, C and B districts
are able to exercise powers as provided under the constitution and various laws. Clearly, as MoF

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also now proposes, the fiscal transfer allocation formula needs to be strengthened, based on
population size, basic social indicators, level of human development, revenue effort and poverty
index.

But even if Fiscal Constraints are Resolved Public Sector Staffing (Establishment) Numbers and
Capacity Need Urgent Attention: Governments seek to attract, motivate and retain quality employees
to deliver the five core functions of government: policy formulation, planning, budgeting, execution and
regulatory oversight and enforcement. The central government currently employs, according to the
annual budget of 2011, some 9,843 civil servants and some 10,365 military personnel, and with other
employees public sector staffing totals 26,795 in 2011. Some 37% of these are in education and some
18% in health. Of the four staffing grades (A (most senior), B, C, and D) about 60% do not have a
secondary education, a further 35% either have a secondary education, and about 5% are graduates.
Women make up 27% of the civil service. Some 66% of staff are frontline service providers and work in
the regions and regional offices of the central government. However, given fiscal constraints pay and
grading structures are inadequate to attract and retain trained staff, thus the President is proposing a
pay and grading restructuring in this respect. Civil Service Reform is therefore critical to build a cadre of
motivated professionals to better to deliver services.

SUCCESSES ARE SHAPING THE PACE AND DEPTH OF SERVICE DELIVERY
Despite significant constraints good stories are beginning to emerge in Somaliland that provide
optimism for progressive modernization and improved service delivery, much of which demands
stronger decentralization. These include, but are not limited to:

Significant improvements in the macro-fiscal domain which will lead to major increases in
education, health and WASH financing and potentially a strong arrangement for fiscal transfers
to local government. A budget of US$70-90 million is possible in 2012;
A National Development Strategy (2012-2016) provides a framework for focusing on sector and
cross-sector investments, and although greater activity prioritization is required, linking the
National Development Strategy (NDS) with the MTFF is an important development;
A Medium Term Fiscal Framework has been established which provides the foundation for
setting sector budget ceilings, as the basis for developing bottom-up costed expenditure
programs;
Pay and Grading Reform is likely to be considered with positive implications for attracting and
retaining core national staff, thereby strengthening provision functions;
Functional Restructuring of Education and Health Ministries, as well as draft sector policies
have been established, and public health and education services are beginning to increase;
The Essential Package of Health Services (EPHS) is being piloted and can be rolled out as the
cornerstone of the new health policy around which primary, secondary and tertiary care systems
can be strengthened;
MoF advisors are looking to open up the discussion on intra-governmental fiscal transfers and
their equity, which could progressively remove resourcing constraints for lower grade districts;
Donor trust fund mechanisms are being explored to de-projectize external support, perhaps
creating fungible resources to strengthen core sector production and provision functions; and,
Support to the Macro-Fiscal Unit in MoF, for strengthening Public Private Partnerships (PPPs)
(including World Bank Support in this area) with implications for WASH, and for strengthening

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municipal finances are important, as are donor support (EC and DFID) for strengthening
provision functions of core service Ministries.

GENERAL FINDINGS FOR THE DECENTRALIZATION PROCESS
The following general conclusions were reached in relation to the current decentralization process, all of
which impact both horizontal local government and vertical sector governance. These general
conclusions were validated by the Government of Somaliland, and will frame much of the forward
discussion:

As outlined above, Law 23/2002 needs to be revised to clarify the formal functional assignments
of local district councils in relation to health, education and WASH service provision, but such
clarification must take into consideration the fiscal imbalances across districts Graded A to D. A
national consultation process would be required to make sure that changes reflect the preferred
balance of power in relation to political, fiscal and administrative decentralization;

There is no clear champion of decentralization above the level of sector Ministries, to envision,
guide and channel efforts to improve policy coordination around improved decentralized
delivery;

There is no decentralization Policy Framework and this needs to be established to guide, shape
and sequence improved local governance, reflective of different district capacities. There are
suitable models from Uganda and Kenya which may be useful to review, in particular around
functional assignments and consolidated local government budgeting;

Education, health and WASH sector laws, acts, policies and strategies need to be explicit about
the formal relationship between the vertical sector and Local Governments (LGs), including a
clear description of functional assignments at the interface between horizontal and vertical
structures;

The current fiscal transfer mechanisms need to be reviewed to remove horizontal fiscal
imbalances and through discussion between central government (MoI, MoF, Sector Ministries)
and LGs, agree sector financing rules in support of agreed functional assignments;

Given improvements in the Medium Term Fiscal outlook, including significant increases to local
government finances, the role of the centre and LGs are changing year-on-year, in terms of their
ability to move beyond recurrent costs payments, with the state increasingly able to deliver real
services to citizens;

Core Service Delivery Models (SDMs) for the education, health and WASH sectors need to be
clearly defined to allow government and external support to be effective in fostering improved
sector delivery. This will also require the development of models to address social exclusion,
particularly for pastoral communities, and also piloting approaches such as School Based
Management (SBM) that positions schools as the primary service delivery unit, not the district
per se;

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The process of decentralized service delivery demands a clear focus at central, regional and
district levels, not just at the level of local government. As a result, future investments must
balance support for vertical sector Ministries and horizontal local governments; and,

The numbers of regions and districts still has to be formally endorsed by parliament,
undermining a clear model for decentralization and focus for decentralized local governance
within the unitary structure of Somaliland.

PRIORITIES FOR THE EDUCATION SECTOR
For Education, where private sector and donor financing (channeled substantially through Non-
Governmental Organizations (NGOs)), as well as support from Village Councils and committees
continues to dominate the sector, the focus of support must be on (I) strengthening provision functions
at central, regional and district levels, both within the sector and in local government, (ii) strengthening
oversight of production functions (public, private, Quranic and NGO-run schools), and, (iii) moving (as
fiscal resources allow) towards strengthening free provision of primary education through small block
grants to the schools (via the Ministry of Education and Higher Studies (MoEHS)) and progressively
piloting provision into nomadic communities. Ongoing functional restructuring and re-setting of
functional assignments will improve the delineation of decision-making across vertical and horizontal
delivery structures.

There are numerous sector priorities that will need to be undertaken within the coming years, critical to
strengthening the education sector and clarifying vertical and horizontal functional assignments. The
following priority activities reflect the results of the validation workshops:

The overall policy and strategy framework is well developed, and guidelines exist in support of
school management, although the adoption of a formal approach to School Based Management
would allow a cohesive framework for service delivery to emerge around which pilot clusters
could be supported to build a common approach across what remains a rather fragmented
system;

Following the announcement by the MoE to provide free primary education for all, which
reflects improved sector resourcing, there still remains uncertainty regarding how to manage
the interface between the sector, LGs and community financing and a consolidated budgeting
approach appears justified. General functional assignments are proposed for Regional
Education Officers (REOs), District Education Officers (DEOs) and Local Governments, to form
the basis for national consultation;

The need for Regional Education Offices (REOs), District Education Offices (DEOs) and District
Councils (DCs) to hold consultative discussions, and also for assignments to be made explicit in
the education law and a revised Law 23/2002 is clear. Moreover, given current resource
limitations, it would be useful to discuss the possible co-location of DEO and district
administration support to the sector, to be placed within the Social Affairs Department perhaps
as a common services department;

While sector costing is urgently required, such an approach must be mapped to the national
budget formulation process, and ideally the ongoing costing exercise would be undertaken as a
top-down medium term fiscal framework and bottom-up sector expenditure framework,
covering wage, non-wage, operations and maintenance and capital investment costs;

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There is a need to urgently identify the different Service Delivery Models (SDM) for primary and
secondary education, covering urban, rural settings and pastoral settings. For School Based
Management (SBM), by way of an example, such an approach brings existing legislation,
regulations and management practices into a national standard and guideline, around which
schools emerge as the primary unit of delivery. Such an approach needs to be developed,
piloted through clusters and then scaled up to maximize cohesion around a common set of
educational standards;

The financial contributions of local governments need to be formalized as a budget percentage
rule (perhaps around 5%), around which functional assignments would be developed reflective
of the resources available for different districts; and,

There is a need to remove the horizontal fiscal imbalances whilst perhaps considering options
for sector categorical grants to the DCs. Further work would be required to develop such a pilot
and this should be done in support of consolidated local government budgeting.

PRIORITIES FOR THE HEALTH SECTOR
For Health, which is dominated by a largely unregulated private provision, but where the Government
and WHO/UNICEF supported Essential Package of Health Services is emerging as the cornerstone of
public health provision, the focus of support must simply be on financing the EPHS and improving
regulatory capacities. This implies a strong focus on removing the financing constraints to expansion
and eventually turning the essential package into a more comprehensive basic package over time.
The roles of local governments and village communities would, therefore, focus on mobilizing finances,
preventive health measures and education and training. The draft Health policy is clear in its
commitment to decentralized delivery given the focus on primary care in the first instance. Ongoing
functional restructuring of the Ministry of Health (MoH) will have implications for service delivery
mandates, and the roles of local government and sub-national sector entities in delivery.

In the validation workshop H.E the Minister of Health agreed that the 2011 National Health
Policy needs to be clear on the role of Local Government from a functional assignment point of
view, and that local governments should adopt a percentage rule for support the health sector.
A collaborative discussion therefore needs to take place between the Ministry of Health (MoH),
Ministry of Interior (MoI) and Local Governments to agree functional assignments and how best
to consolidate central and local government finances. A set of guide functional assignments are
outlined here to assist government in such deliberation;

In relation to health service provision, Law 23/2002 needs to be revised to remove ambiguities
in relation to health functional assignments, with clear functions being allocated between the
sector and LG based on a cost-sharing arrangement; to be formalized in due course. Grade A
districts have built up Social Service Directorates and Berbera has established a small health
department, and increases in local government revenues in recent years now requires for the
formalization of health care financing between the two entities;

Local Government appear committed to determining the cost basis for LG support to the sector,
with a number of heads of LG hinting at a 5-6% budget rule for the sector. Such a move could be
supported by reciprocity from Central Government and pooled financing approaches developed,
to include financial flows from the District Development Fund;

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It seems logical to move progressively towards a functional (policy and program based) health
budget around which donors can provide and coordinate support;

Rolling out of the Essential Package of Health Services (EPHS), the district model, is perhaps the
main priority for the sector, and target districts (including in Sahil and Togdheer regions) for
Phase I roll out would need to be agreed, alongside drives to improve regulatory oversight of the
private sector, which remains the backbone of the current service delivery arrangement;

Successful piloting will require that selected districts have the minimum capacities (fiscal and
human resourcing) to sustain their involvement in delivery, implying an initial focus on Grade A
districts, where fiscal resources support such an outcome. However, given the need to extend
service delivery out into Grade B, C and D districts, pilots will need to be carefully developed
reflective of the lower capacities at the this level of LG. Ideally, fiscal imbalances will be
progressively removed and consolidated LG budgeting developed, to widen the resource base,
including linkages with the district development fund; and,

It seems logical to consider piloting sector categorical grants for health care provision. The aim
would be to review the main funding channels (central government, local government, donor
trusts funds, the District Development Fund) and to see how targeted health sector grants from
donor trusts funds can be used to support strengthening of district level provision.


PRIORITIES FOR THE WASH SECTOR
For WASH, where public sector delivery of water, sanitation and hygiene is virtually non-existent and
the current model of delivery might best be described as a poorly regulated public-private partnership,
the role of local governments in direct service delivery regulation, especially price regulation, and
oversight of Water and Sanitation (WATSAN) and Hygiene services is going to be critical. The current
service model, particularly for water supply services, excludes many groups, is largely urban focused, is
poorly regulated (pricing/quality) and does not provide the incentive framework necessary for the
private sector to expand the service footprint ever outwards. The extension of water supply (and later,
wastewater) networked service coverage at the current prices is prohibitive to the majority of the
population, unless a fairer balance between price and service is established. A public sector operator at
the local government level is best placed to address this urgent issue appropriately. In addition, given
that WATSAN is generally a highly devolved sector, a focus on bottom-up and top-down accountability,
financing, pricing and regulatory strengthening and enforcement are going to be key to improve the
level of service delivery and sector performance by developing a local government enterprise model
that addresses these constraints. For hygiene, an integrated approach is required.

The validation workshop made clear that there is an urgent need for the Ministry of Mines, Energy &
Water Resources (MMEWR) and Ministry of Interior (MoI) to agree how local governments can best
engage with the sector, in a formal way. In relation to hygiene, there is similarly a need to strengthen
the promotion of hygiene management practices as a major investment in preventive care. This
important political discussion needs to be shaped around agreeing shared service delivery models, the
importance of separating regulatory oversight and implementation functions and the need to
strengthen existing Public Private Partnerships (PPPs) through various measures. Such a discussion will
also need to reflect that many Grade A districts provide increasing levels of support to the sector, that
consolidated local government budgeting could be deployed to increase clarity in relation to
expenditure assignments and that PPP contract law needs strengthening in particular in relation to lease

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and/or concession provision and management of assets. The following issues were discussed in the
validation workshop and are therefore proposed as next steps:

The central Ministry is substantially under-financed, with negative impacts on WASH provision.
Increasing the sector allocation through the budget process would focus on building the core policy,
strategy and regulatory oversight capacities of the Ministry, including its ability to engage in
contract management;

It is important to identify the preferred Service Delivery Models for Water Supply Public Private
Partnerships (PPPs), differentiating between urban and rural areas, while also agreeing these
models within government and key donors financing the sector, so that both on and off-budget
funding are coordinated around the same generic SDM approach. This would bring new standards
of sector governance, accountability and transparency. A number of models are proposed;

There is a need to actively consider the separation of regulatory oversight and service delivery
functions, in the interests of sector accountability, both in relation to general service provision and
PPP arrangements;

The existing contract arrangements for PPPs need to be clear on whether lease or concession
arrangements are being proposed, as well as responsibilities for asset ownership and management,
given the need to strengthen network management and expansion. Moreover, it is important to
undertaking cross-project comparators to set pricing and determine economic viability, and to be
clear on the role of central authorities and Local Government, around the preferred service delivery
models;

If future WASH related investments should be underpinned by Social Cost Benefit Analysis, not just
calculation of financial rates of return, and as a result different service delivery models can be
entertained. This approach is important because water is not just an economic good but also a
public good and essential service. Equally, undertaking ability-to-pay surveys around both urban
and rural delivery models will provide a foundation where the recovery of operational costs at least
can be achieved;

There is no reason why PPP engagement models can not be piloted for Solid Waste Management
(SWM). These are likely to be profitable in Grade A Districts, which would remove a major source of
ill health from local jurisdictions;

In developing pilots, it is vitally important, particularly in urban delivery where LGs should play a
significant role, that pilots are calibrated to reflect the different fiscal and human resource
capabilities of different districts. While there is justification for an initial focus on Grade A and
perhaps B districts, pilots and SDMs will also need to be developed for more rural and isolated
districts classified as Grades C and D; and,

The Government needs to improve aid management for the sector, thereby leverage external
funding for new projects and building better delivery standards, maximizing the impact of
investments on long term service extension.

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-1-
Introduction, Scope, Approach
& Economic Context

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1. INTRODUCTION, SCOPE, APPROACH AND ECONOMIC CONTEXT

1.1 INTRODUCTION
1. This report presents the assessment findings of the Study on Sector Functional Assignments within
the Education, WASH and Health Sectors in Somaliland. The assessment has been financed by the UN
Joint Program on Local Governance and Decentralized Services Delivery (JPLG) and implemented by
UNICEF as part of its role in the JPLG. The assessment aims to provide a critical input into rethinking
(unbundling) the education, health and water and sanitation sectors, in support of the newly established
Somaliland National Development Plan (NDP). As outlined in the NDP decentralization and public
participation are crucial to mobilizing the regions and civil societies (NDP, Pg. 24), and local government
and decentralization are therefore deemed critical to meeting public sector action areas that will reduce
poverty. Further, the Guideline for the Sector Technical Working Groups in Decentralization and Local
Government, state that the main objective to strengthen decentralized delivery is to promote: (i) the
institutions of a strong, legitimate and stable state; (ii) opportunities for local democratic participation
by all citizens; and, (iii) more effective, efficient and equitable public service delivery for the social and
economic development of the country.

2. This assessment comes at a time when the NDP has just been released and JPLG is taking stock of
decentralized delivery options, in support of improved service delivery. It also comes almost a decade
after the passing of Law No. 23 on Regions and District Self Administration; a law that was revised in
2007. The mandates of vertical sector Ministries and local government (districts) in service delivery was
never made fully explicit, and as such, despite gains, there is considerable space to identify improved
service delivery models and to recast functional assignments around such an approach. Furthermore,
given that very explicit focus on decentralized delivery in the NDP and various pieces of legislation, the
timing of this work is hugely relevant to ongoing policy discussions within government and the
international community. In addition to Law 23, the NDP is clear in its intent to foster more meaningful
decentralization of core services, and to overcome the constraints encountered by JPLG:

The NDP places local government and decentralization as one of the main poverty reduction actors
(ibid Pg. 24);
Government is committed to implementing a coherent approach to decentralizing the delivery of
public services by bringing public institutions closer to the people and encouraging their
participation in the decision making process. (ibid Pg. 29);
A cogently delineated system is required in which ministries, departments, and Government
agencies can collaborate with regional and district municipalities has yet to be devised (ibid Pg.
194);
Promoting decentralization, transparency, accountability and inclusivity in the management of
public affairs (Ibid Pg. 196) is critical; and,
In the context of JPLG, deciding on which service delivery model to choose before functional
assignments are set is a pre-condition for orderly unbundling.

1.2 SCOPE & RATIONALE
3. The scope of work is largely shaped by the Sector Guidelines developed by the JPLGwhich provide
the main tool of analysisaround which the orderly unbundling of the sectors can be forwarded
based on hard field-based evidence. It also takes into consideration the newly launched NDP. The
rationale for the work reflects a decade of support for decentralized delivery, with marginal returns to
improved local governance due to structural constraints, and a strong commitment of government

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supported by JPLG to create clarity over roles and mandates of sector Ministries and Local Government,
around the preferred service delivery model.

1.3 APPROACH TO UNBUNDLING THE SECTORS


4. In order to unbundle the education, health and water and sanitation sectors, in an effective
manner, it is necessary to identify the preferred service delivery model and then to allocate the five
core state functions (and sub-functions) identified below across the different sector and local
government institutions. Such an approach is required in Somaliland because Somaliland Regions and
Districts Self Administration Law No. 23/2002 is not explicit as to which functions and sub-functions
within sector Ministries can be effectively delivered by regional and district administrations. The failure
to unbundle the sectors has limited the impact of Law No. 23. Such an approach is however of vital
importance given that district administrations have been granted fiscal assignments, the revenues from
which need to be carefully prioritized with central Ministry budgets. Figure 1 provides an illustrative
example of unbundling the production and provision (management) functions and sub-functions for
the health sector; as an example.

Figure 1: Unbundling Sector Production and Provision Processes Health Sector


5. In conducting the sector unbundling exercise in support of meeting NDP and decentralized service
delivery objectives, it is necessary to frame the exercise within the institutional and fiscal realty of
each sector. Furthermore, it is necessary to consider whether sub-functions are as they occur in reality
in Somaliland or whether they would ideally occur as in standard international practice; unless they are
the same. In this regard, general concerns with regards decentralizing core delivery functions include:

Agreement on the service delivery model to be promoted for each sector;
The need to set functional assignments within fiscal limits;
That production functions are more often than not financed off-budget;
That provision functions often require strengthening at the center not just the periphery; and
That serious fiscal and human resource constraints undermine third-tier delivery.

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1.4 GENERAL ECONOMIC FRAMEWORK
6. The Government of Somaliland has undoubtedly made significant gains in recent years on the
economic front, as evidenced by the 2012-2016 National Development Plan, which lays out clear
priorities for the deepening economic transition, and the creation of an enabling environment for
private business. Understanding the overall macro-fiscal framework is of critical importance to this
assessment, given the need to promote viable sector models that can drive service delivery, within a
medium fiscal framework to guarantee sustainability. As the size of the national budget has increased
significantly between 2005 and 2011, this provides a degree of comfort that proposed pilots to
strengthen sector decentralization could eventually be supported through government recurrent
financing. Moreover, with the government launching a public finance management reform program,
supported by donors who according to the MoF have increased external assistance to Somaliland in
recent years, and with a major drive expected in revenue mobilization, according to the MoF Fiscal
Framework government aims to increase the state budget from US$50 million to US$90 million over the
short term. In 2003 the state budget was US$16 million. (MoF, 2011, MTFF)

7. There are no reliable figures for GDP growth (nominal or real), the structure of the economy, and no
reliable time series data on revenues, inflation or remittances, which are assumed to be around
US$400 million a year.2 GDP for Somalia is assumed to be between US$1.6 billion (Word Bank, 2002)
and US$5.896 billion (CIA Factbook). According to the World Bank report (2002), Somalilands income
per capita is higher than that of Somalia due to peace and political stability achieved which has enabled
high rates of growth. The NDP states that assuming an average nominal per capita income US$300, and
US$600 at Purchasing Parity Price (PPP), and a population of 3.5 million, Somalilands GDP would be
about US$1.05 billion in nominal prices and US$2.10 billion in PPP terms. The structure of the economy
remains unknown, but is assumed that agriculture (including livestock) makes up 65%, services a further
25% and industry 10% of the GDP. Remittances are critical to paying for imports and doubtless for
private sector contributions to education, health and water and sanitation.

Table 1: Somaliland Employment Statistics (%) (2002)

Population by labor force (%)


Economic status Urban Rural and Nomadic Total
Economically active 53.6 56.7 56.4
Not in the labor force 46.4 43.3 43.6
Economically active population by employment status (%)
Employment status Urban Rural and nomadic Total
Employed 38.5 59.3 52.6
Unemployed 61.5 40.7 47.4
Total labor force 100 100 100
Employment by major sectors (%)
Sector Urban Rural and nomadic Total
Agriculture 25.1 80.1 66.9
Industry 25.5 7.8 12.0
Services 49.4 12.1 21.1
Total 100 100 100
Source: World Bank (2002)

2
Studies on remittances in Hargeisa, and Burro indicate that remittances constitute nearly 40% of the income of urban
households, and account for roughly 14% of average rural consumption (Gundel 2002). Somaliland, in terms of per capita
remittance received ($105), and contribution to gross domestic product (GDP) (20%), ranks fourth among remittance
dependent economies after Tonga (38.6%), Lesotho (28.7%) and Jordan (23%) (Dr. Saad Shire 2005).

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1.5 SOMALILAND REVENUE TRENDS
8. MoF has recently established a MTFF around which a top-down fiscal envelope has been translated
into setting sectoral budget ceilings. To achieve such a rapid expansion in revenues, Government does
not intend to increase the tax rate but rather to focus on broadening the tax net and focusing on
efficiency and anti-corruption measures. Given that local governments generate their own revenues,
the revenue growth will have significant implications for local governments capacity to support
expenditure programs in education, health and water and sanitation. Assigning clear service delivery
functions to District Councils will assist in removing horizontal imbalances. Table 2 below shows the
revenue trend for Central Government from 2005 to 2009, showing significant year-on-year progress.
Domestic revenues have grown significantly over the years. In 2006, they were about SL. Sh. 68 billion
(US$11.8 million), by 2008 they reached Sl. Sh 262 billion (US$45.6 million) (See Table 2). Customs
duties accounting for nearly 50% of total revenue constitute the largest source of income for the
Somaliland government. These are followed by sales taxes, which contribute up to 16% of total revenues
in 2011. Unlike most of the other countries, income and corporation taxes account for less than 10% of
the governments income. Somaliland currently has an old fashioned tax system based on turnover and
numerous presumptive (fixed) taxes on smaller traders. Over 93% of total tax revenues are collected by
the Central Government, with districts so far accounting for the remaining 7%.3

Table 2: Government Revenues (2005-2009) 4

Year Actual Revenue (Million)


Sl. Sh US$
2005 164,417.2 28.6
2006 175,288.6 30.5
2007 209,665.8 36.5
2008 233,103.9 40.6
2009 261,993.7 45.6

1.6 SOMALILAND EXPENDITURE TRENDS
9. Current budget appropriations for 2011 predominantly cover wage and non-wage recurrent costs,
with on-budget operations and maintenance and capital spending undermines by limited fiscal
resources and the size of government relative to resources. According to government, total budgetary
expenditurein nominal termsjumped from Sl. Sh 146,557 million (US$25.5 million) in 2005 to Sl. Sh
258,496 (US$ 45 million) in 2009; an increase of 76.5% over five years (See Table 4). Security dominates
public expenditure accounting for 49.67% of the total in the 2011 budget (see Table 3). According to the
MoF Medium Term Fiscal Framework, social services and production sectors were allocated 12.36% and
3.17% of the budget respectively; which are low relative to security and governance spending. However,
with substantial off-budget flows provided by donor and NGOS, actual expenditures are clearly under-
reported. International cooperation partners also support agriculture and the livestock sector, and
provide support for public administration strengthening and Public Finance Management (PFM) reforms.

3
According to the Minister of Finance Mohamed Hashi Elmi, key challenges in raising revenues include: (i) lack of capacity in the
tax administration system as well as among taxpayers lack of compliance amongst tax payers; (ii) the need for a tax law and tax
administration reform and development oriented system of taxation; (iii) the dominance of pastoral and the informal sector in
the economy, which are essentially un-taxable; and, (iv) widely perceived corruption in the tax administration. Clearly, success
in revenue mobilizationremoving these constraintsis critical to resourcing basic and essential services and so the focus on
JPLG support needs to be integrated with greater transparency with regards local government revenue mobilization.
4
Sources of tax revenue are as follows for 2011 (i) tax on international trade and transactions (46.38%) (ii) sales tax (16.08%)
(ii) income and corporation tax (9.36%) (iii) other taxes (leases and royalties) (8.07%) (iv) income from licenses and services
(7.12%) (v) income from sales of goods and services (4.48%) and (vi) other income (3.26%).

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Table 3: Functional Classification of State Expenditure (2011)

Description %
Staff expenses (salaries & bonuses) 56.71
Operational cost (admin expenses) 19.53
Equipment 17.21
Maintenance 3.68
Fixed assets (including new buildings) 1.99
General support 0.89
Total 100

10. Table 4 below provides actual government expenditures over the same period (2005-2009) as
Table 2, which provides government revenues (showing around about a 10% increase year-on-year).
So far government has taken a prudent approach to fiscal management with actual expenditures
generally lower than revenues; with 2008 being the notable example, with government running a fiscal
deficit of US$2.5 million as shown in Table 4.

Table 4: Actual Budget Surplus/ Deficit (2005-2009)

Actual Revenue Actual Expenditure Budget Surplus/deficit


(Million) (Million) (Million)
Sl. Sh US$ Sl. Sh US$ Sl. Sh US$
2005 164,417.2 28.6 146,557.6 25.5 17,859.6 3.1
2006 175,288.6 30.5 162,682.2 28.3 12,606.5 2.2
2007 209,665.8 36.5 198,647.4 34.6 11,018.5 1.9
2008 233,103.9 40.6 247,711.2 43.1 (14,607.3) (2.5)
2009 261,993.7 45.6 258,496.2 45.0 3,497.5 0.6

1.7 FINANCING THE NDP AND EDUCATION, HEALTH AND WASH SECTORS
11. Within this economic context, and with local government revenues assumed to be under-reported,
any sector based work that pilots new service delivery models and sets new functional assignments
will need to have recourse to fiscal reality. As J. Brian Atwood, Chair of the Organization for Economic
Co-operation and Development (OECD) DAC recently stated "The real risk for investment in developing
countries is in the arbitrary behavior that flows from weak institutions and systems... Reducing these
risks is the principle job of development cooperation." What is clear is that Somaliland has established
prudent fiscal management as the cornerstone of the NDP, alongside a central drive to maximize
revenue mobilization to drive core services.

12. The NDP provides a medium term framework for achieving long term development goalsas
embodied in Somaliland Vision 2030and also the Millennium Development Goals (MDGs), around
which the three core sectors assessed here are critical to the entire growth agenda. The NDP is
organized around (i) economic (ii) infra-structure (iii) governance (iv) social and (v) environmental pillars,
and according to the NDP, requires capital investment needs totaling US$924.37 million over the plan
period (See Table 5). Financing this plan within the current fiscal framework and with limited fiscal
space for policy adjustment will not be easy. As a result, to achieve macroeconomic and fiscal stability
whilst supporting the NDP, government proposes to pursue the following strategic enablers:

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Achieving macroeconomic stability through sound fiscal and monetary policies built on public
finance discipline and timely monetary policy decision-making;
Reforming tax collection and administration and balancing government finances;
Broadening and deepening the tax base to increase revenue. Government should account for at
least 10% of GDP to meet its social service obligations and finance the NDP;
Rendering public expenditure more transparent and reflective of government priorities; and,
Achieving a growth rate that is sufficient to support the objectives outlined in NDP, identify the
sectors that will drive the growth process; and the implementation of appropriate public policy
measures that are necessary to ensure this drive.

Table 5: Proposed Capital Investment by Social Sector


Social US$ millions % Total Capital Spend


Health 117.49 55.22
Aids commission 15.84 7.45
Primary and secondary education 26.46 12.44
Higher education 11.28 5.30
Labor 4.09 1.92
Social affairs 4.37 2.05
Youth and sports 27.85 13.09
Religious affairs 5.37 2.52
Total 212.75 100

13. Overcoming structural fiscal constraints (as stated within the 2012-2016 NDP) will require a
complex set of measures to be adopted; certainly if the capital investment targets presented in the
NDP (see Table 6 above) are to be financed. Amongst these constraintsand with relevance to
decentralizationthe government seeks to address the following core crosscutting issues that constrain
education, health and WASH spending:

Inability to mobilize more domestic revenues;
Limited external assistance to finance development and recurrent budgets;
Lack of a development budget, weak tax administration and a narrow tax base;
Inadequate salaries to attract and retain qualified staff and lack of a skilled workforce; and,
Lack of reliable data for policy making and planning purposes.

1.8 IMPLICATIONS FOR UNBUNDLING


14. Government must reform within the framework of the resources available to it. Clearly, there is
significant potential to broaden the tax net to drive services, and JPLGs contribution to un-locking
district finances and supporting pro-poor expenditure policies will be critical to this endeavor. Yet, as
clearly outlined in the NDP, The development of effective administrative and governance structures
that respond to and meet the needs of the people is one of the most critical national priorities, and
therefore decentralization and public participation are therefore crucial. Further, the NDP states that
the importance of a legislative reform agenda cannot be overstated as vital to the nations ability to
establish a society based on the rule of law, foster domestic and foreign investment, and protect the
rights and interests of the citizenry and private enterprises. Appropriate policies for each sector will be
drawn up in the next five years to restore and nurture public confidence in government and its ability to
manage public finances. Unbundling the sectors, based on the logical decentralization approach for
each sector, is therefore critical for legislative reform and strengthening to take place, for efficient
resource utilization and for improving local government revenues collection to delivery basic and
essential services. Table 7 below provides the sector splits for sector agencies.

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Table 6: Somaliland National Budgets by Entity (2009-2011)
2009 Actual 2010 Actual 2011 Appropriated Expenditure
Ministries/Agencies Expenditure Budget Expenditure Budget Budget
Sl. Sh US$ Sl. Sh US$ Sl. Sh US$

Ministry of Parliamentary Affairs 211,745,920 36,845 314,327,966 54,694 633,258,023 110,189


National Tender Board 281,824,000 49,038 426,660,816 74,241 732,938,431 127,534
Communication Aides 286,464,717 49,846 379,488,642 66,032 654,751,624 113,929
National Demining Agency 296,563,200 51,603 480,119,672 83,543 479,133,730 83,371
NDC Agency 328,895,794 57,229 590,046,650 102,670 635,864,751 110,643
NERAD 347,375,200 60,445 501,603,272 87,281 521,894,072 90,812
Director General of Labor 417,871,360 72,711 460,991,291 80,214 - -
Ministry of Labor & Social Affairs 452,261,200 78,695 651,231,992 113,317 1,863,023,298 324,173
Ministry of Industry & Energy 486,603,200 84,671 660,502,400 114,930 - -
Ministry of Rehabilitation 618,282,720 107,584 911,575,954 158,618 - -
Ministry of Endowment & Religious Affairs 686,548,080 119,462 893,742,585 155,515 2,602,576,800 452,858
Civil Service Commission 695,307,822 120,986 907,223,322 157,860 4,553,600,085 792,344
Attorney General 746,555,600 129,904 854,051,200 148,608 1,376,195,200 239,463
Supreme Court 835,491,200 145,379 1,114,391,200 193,908 1,191,980,080 207,409
Ministry of Post & Telecommunication 875,356,975 152,315 3,336,099,200 580,494 4,230,964,600 736,204
Ministry of Youth & Sports 882,916,960 153,631 1,320,256,960 229,730 2,286,586,192 397,875
Ministry of Mining, Energy & Water Resources 923,855,593 160,754 1,512,814,108 263,235 1,767,482,416 307,549
Ministry of Culture & Tourism 929,902,160 161,807 1,116,587,031 194,290 - -
Ministry of Commerce 1,042,354,348 181,374 1,688,550,948 293,814 4,211,323,475 732,786
Ministry of Justice & Judiciary 1,128,889,600 196,431 679,875,200 118,301 912,579,259 158,792
Vice-President's Office 1,151,200,000 200,313 1,151,200,000 200,313 585,000,000 101,792
Ministry of Planning & Development 1,215,482,397 211,499 1,778,123,200 309,400 1,702,966,400 296,323
Ministry of Livestock, Rural Development & Environment 1,261,585,600 219,521 1,598,651,044 278,171 4,555,210,428 792,624
Ministry of Agriculture 1,292,746,748 224,943 1,637,448,296 284,922 3,074,602,813 534,993
Ministry of Rural Development & Environment 1,336,931,496 232,631 1,601,551,296 278,676 - -
Magistrate of Account 1,356,494,400 236,035 1,758,966,400 306,067 1,487,178,880 258,775
Somaliland National TV 1,645,384,368 286,303 6,369,283,577 1,108,280 8,873,433,056 1,544,011
Ministry of Civil Aviation 1,652,351,514 287,515 2,213,083,152 385,085 2,917,731,881 507,697
Ministry of Fishing & Marine Resources 1,740,130,498 302,789 1,444,065,118 251,273 2,903,721,822 505,259

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Ministry of Public Works 1,836,084,600 319,486 2,381,765,000 414,436 1,971,384,180 343,028
Coastal Guards 2,154,801,657 374,944 2,161,379,387 376,088 6,403,093,217 1,114,163
Ministry of Information 2,469,718,000 429,740 2,829,318,000 492,312 7,671,675,200 1,334,901
President's Office 2,600,419,200 452,483 2,600,419,200 452,483 819,000,000 142,509
Local Court 3,461,680,200 602,346 4,243,360,800 738,361 5,250,228,560 913,560
House of Representatives 5,474,752,100 952,628 6,555,058,600 1,140,605 14,449,890,400 2,514,336
House of Elders 5,802,776,400 1,009,705 6,088,620,400 1,059,443 15,614,266,400 2,716,942
Ministry of Foreign Affairs & International Cooperation 5,837,295,040 1,015,712 4,597,004,640 799,896 6,734,909,088 1,171,900
Ministry of Health & Labor 7,231,589,760 1,258,324 8,783,810,960 1,528,417 16,344,798,558 2,844,058
National Election Commission 8,598,461,800 1,496,165 16,224,441,793 2,823,115 1,542,833,005 268,459
Ministry of Defense 11,840,770,177 2,060,339 12,346,564,127 2,148,349 23,437,079,570 4,078,142
Ministry of Interior 11,873,946,666 2,066,112 12,527,303,067 2,179,799 15,645,287,145 2,722,340
Ministry of Education and Higher Studies 12,849,460,173 2,235,855 13,857,632,140 2,411,281 35,569,692,024 6,189,263
Custodial Corps 15,101,232,551 2,627,672 17,366,838,836 3,021,896 28,928,928,370 5,033,744
Ministry of Presidency 16,280,804,280 2,832,922 11,777,255,563 2,049,288 36,927,624,324 6,425,548
Ministry of Finance 16,456,799,428 2,863,546 18,153,248,520 3,158,735 42,611,931,120 7,414,639
National Police Army 29,916,428,394 5,205,573 33,622,078,053 5,850,370 66,527,778,363 11,576,088
National Army 80,275,711,636 13,968,281 87,580,662,108 15,239,370 133,672,365,037 23,259,503
Good Governance & Anti-Corruption Commission 0 1,276,428,400 222,103
Quality Control Commission 0 1,523,912,000 265,167
Immigration Office 3,053,688,406 531,353 2,598,135,846 452,086
WFP 0 331,925,600 57,756
IOT Commission 0 404,164,800 70,326
Presidential Guards 4,324,324,812 752,449 7,390,013,962 1,285,891
Somaliland Diaspora Agency 0 509,876,600 88,720
National Registration Party Commission - - - - - -
Hargeisa Electricity Agency - - - - - -
Law Reform Commission - - 306,784,800 53,382 346,828,800 60,350
National Humanitarian Commission - - 235,240,000 40,933 238,129,360 41,435
Fact Finding Massacre Commission - - 289,800,000 50,426 439,145,000 76,413
TOTAL 265,190,104,732 46,144,093 310,259,111,704 53,986,273 529,935,322,245 92,210,775
Source: Ministry of Finance, 2011 and Geopolicity Staff Adjustments.

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-2-
Current Framework for
Decentralized Governance

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2. CURRENT FRAMEWORK FOR DECENTRALZED GOVERNANCE
15. The 2012-2016 NDP places decentralized delivery at the center of education, health and water and
sanitation delivery. The plan states that the development of effective administrative and governance
structures that respond to and meet the needs of the people is one of the most critical national priorities.
Decentralization and public participation are crucial to mobilizing the regions and civil societies. As
highlighted in Table 7 below, education, health and water and sanitation are placed centrally within
what are referred to as the Poverty Reduction Poles, alongside social protection and housing and
shelter. Moreover, the plan is explicit on the need to strengthen the current approach to reform, as
quoted below:

The limited capacity of public institutions is a major obstacle that stands in the way of implementing
the national development plan and the realization of Vision 2030. The national capacity in terms of the
effectiveness of institutions, and the quality of human resources available is low and must be
addressed strategically. The strategy must aim at building the capacity of central government
institutions, local governments, private sector enterprises and community organizations. There have
been many capacity building projects supported by international organizations over the years.
Unfortunately, these have been fragmented, ineffective and often non-aligned with national
development priorities. (NDP, Pg. 23)

16. Whilst there is a strong agenda promoting decentralized government, neither the NDP or Law No.
23/2002which formally regulates the regional Executive Committees and Development Councilsis
clear on which functions should be decentralized within the sector or to local government. This is why
unbundling of the sectors is the vital step towards clarifying functional assignments. The challenge
facing this process therefore, is not only agreeing the functional assignments of vertical sector and
horizontal structures, but also being clear on which service delivery model(s) best serves the sector. This
has not been done. For example, with the EPHS established as the cornerstone of the primary health
care system, and where the four levels of delivery have already been established as production
functions, any process of decentralization must strengthen implementation of this policy, rather than
creating parallel assignments between the sector units and local government. This requires absolute
clarity on the assignments of the vertical sector and local governments to be established. In the case of
education service provision, which is already decentralized by default not design, however, a strong role
for local government could be envisaged as long as it is coordinated with sector mandates. In the case
of WASH, where provision is through PPP and community delivery models, there is even greater
evidence to suggest a service delivery model that local government would be central to.

Table 7: Growth and Poverty Reduction Poles (NDP 2012-2016)


Economic Growth Poles:- Sectors that will drive the Poverty Reduction Poles: -Public sector action areas
growth process that will reduce poverty
Macroeconomic policies/fiscal framework Rural development
Infrastructure Local government/decentralization
Agriculture, Livestock and Fisheries Social services
Industry and Tourism Health
Financial Services Education
Trade and services Water and sanitation
Mining and minerals Social protection
Private sector Housing and shelter
Employment
Food security, and
Disaster Risk Management.

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17. With a population of under 3.5 million, the main driver of decentralization is the need to promote
national solidarity, to encourage community participation, to meet the needs of pastoral communities
that fall outside the service delivery foot print of state, whilst also re-enforcing bottom up
accountability. The Ministry of Planning states that the Republic of Somaliland has a population of
around 3.85 million, and an area of 137,600 km2, of which nearly 55% of the population are nomadic.
The annual population growth rate is around 3.14%, with an average birth rate of 4.46%, implying
increased population pressure for basic and essential services. Life expectancy at birth is approximately
49 years. Population density is sparse, and public infrastructure limits the delivery of services. Table 8
below provides the names of regions and districts by graded category, showing the regions and districts
claimed by Government. Districts are graded based on production, economy, total population, land area
etc. The ability of each region and district to reach self-sufficiency is considered at the regional level, as
set out in Article 112 of the Constitution.

Table 8: Somalilands Regions and Districts by Grade According to Law 23/2002

Regions No. of Districts Grade A Grade B Grade C Grade D


Maroodijeeh (Hargeisa) 9 2 0 2 5
Togdheer 6 1 2 0 3
Sanaag 10 1 1 4 4
Awdal 5 1 1 2 1
Sool 6 1 0 3 2
Sahil 5 1 0 1 3
Total 41 7 4 12 18
Source: Somaliland Regions and Districts Self-Administration Law No. 23/2002

18. The Joint Program for Local Governance (JPLG) and Decentralized Service Delivery was designed to
support the execution of the Somaliland Reconstruction and Development Program (RDP) (2008-2012),
with the aim of achieving decentralized service delivery. Established on strong public sector
management principles and practices, JPLG therefore adopted a comprehensive approach to rendering
local governments as credible basic service providers, and strengthening civic awareness and
participation in decision making. By comprehensive, it is understood that (i) administrative
management (functional restructuring and capacity development), (ii) civil service management (staffing
establishment, recruitment and training by functional assignments), and (iii) public finance management
(fiscal and expenditure management across the budget formulation and execution cycle) practices
therefore need to be reviewed at both the level of local government and the sectors, around which the
orderly unbundling of the sectors can be designed.

19. In delivering the sector unbundling exercise for Somaliland, functional assessments are presented
here for the education, health and nutrition and water and sanitation sectors, therefore providing the
basis around which the execution of Somaliland Regions and Districts Self Administration Law No.
23/2002 can be substantially strengthened. As a result, the functional assessment of core service
delivery sectors in Somaliland covers the following general areas: (i) describing the current (generalized)
service delivery model for each sector by functional mandate (ii) describing the current legal framework
for decentralized delivery and sector management (iii) describing existing institutional structures and
service delivery arrangements (iv) outlining existing public administration management approaches at
the sector and cross-sectoral level (v) identifying government responses to the execution of Law No. 23
(vi) identifying core resource and capacity gaps that impeded decentralized service delivery; and, (vii)
proposing a set of sector and cross-sector based pilots for execution in 2012 through service agreements
between the central and local governments for agreed assigned delegated functions. In this regard, this

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report makes explicit that whilst certain sectors are more amenable to decentralization to local
government (WASH), and others (health) are not.

20. Critical to this unbundling exercise is describing the current machinery of government, and the
constitutional and legislative provisions around which unbundling must be shaped. The machinery of
government is described by the Constitution of the Republic of Somaliland as are legislated
responsibilities for the three tiers of government. According to Articles 112 of the Constitutionwhich
together with Articles 110-111 define the local government system and principle of decentralization of
Somalilandthe administration of community services, such health, education (up to
elementary/intermediate school level), and water are the responsibility of the regions and districts in so
far as they are able to fulfill these functions. The problem is that they lack the capacities to meet
legislated assignments and there is confusion over the roles of top-down central Ministries and
horizontal local government. Furthermore, various laws (such as public finance laws) build on the
Constitution in respect of the formal decentralization of core state delivery functions to sub-national
administration, as well as building regions and districts self-sufficiency in the provision of key services:

The Somaliland Constitution: Article 109 of the Constitution of the Republic of Somaliland provides
the architecture of state and framework for local administration, based on the principle of self-
governance. The Constitution provides three tiers of government, namely the state government and
regional (6) and district (41) administrations, but the Constitution also outlines bottom-up
accountability structures, which include districts councils and village committees:
Article 15 sets out state responsibilities for education, and the prioritization of the universal access
to primary education, especially at regional and district levels;
Article 17 sets out state responsibility for health care;
Article 109 sets out the structure of the state;
Article 110 sets out the administration of the regions and districts;
Article 111 sets out the organization of regional and District Councils and defines the power and
responsibilities of the Chairman of regional and District Councils; and,
Article 112 sets out the principles of de-centralization of administrative powers and responsibility
for service provision.
Executive Structure: The executive branch is established under the President, Vice-President and a
Council of Ministers. Law No. 23 provides power to the Ministry of Interior (MoI) to supervise local
authorities but responsibility for service delivery in the three target sectors include the (i) MoEHS,
(ii) MoH, and (iii) Ministry of Mining Energy and Water Resources (MMEWR). The Ministries of
Finance and Ministry of Planning also provide critical inputs to the sectors, as shown in Figure 2
below.
Regions and Districts Self Administration Law No. 23: There are a number of laws that promote
decentralized service delivery in Somaliland although it is Law No. 23/2002 which formally regulates
the regional Executive Committees and Development Councils. These are presided over by a
Regional Chairperson, Deputy Chairman and an Executive Secretary, constituting the decentralized
pillars of the executive branch. Under Law No. 23 provision of key servicessuch as education,
health and WASHare the duty of Local District Councils. The law further establishes the
relationship between the Committees and Councils and the state government in particular the
Ministry of the Interior, which is responsible for supervising and strengthening local governments.
Annex 2 provides the regional and district names by grade.
Sector Policies: The sectors have well-developed national education and health policies (2011), and
there is also an excellent Decentralization Policy Framework (2008) for the MoEHS. The sector

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policies are all strongly focused on decentralized delivery but they are not always clear in the
relationship between sector Ministries and local government.

Figure 2: Somalilands Executive Structure (Illustrative) 5

Source: Based on Authors (Illustrative) Functional Structure



21. This unbundling exercise is relevant precisely because (i) sector Ministries (ii) the MoI (iii) Ministry
of Planning and Development (MoPD) and MoF (iv) and Regional Executive Committees and District
Councils all have legal responsibility for decentralized delivery, yet functional mandates remain
uncertain. A general characterization of the current governance framework for Somaliland, relevant to
this assessment, therefore includes:

Somaliland is a self declared autonomous state;
Constitutional and legislative provisions in support of decentralized service delivery need to
unbundled at the sector level;
The three sectors under assessment all have very different service delivery models, which shape the
functional assignments of vertical sector agencies and local government;
Even though strong revenue mobilization is enabling the foundation for an empirical state,
restructuring functional assignments must reflect fiscal realities; and,
Efforts to decentralize are widely perceived to have had limited effect, warranting caution in
prescribing a given approach.


5
This organizational structure is drawn from http://www.somalilandlaw.com/administrative_law.html

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22. The Somaliland Local Government Induction Module For Councilors And Technical Staff,
established in 2009, provides a clear description of the functional mandates of regional and district
Councils and Administration, and Village Councils, based on Law. 23/2002. It is stated that the Regional
and District Councils are part of Central Government, and that the District Technical Committees are
represented by the Secretary of the Local Council (Executive Secretary) and Heads of government sector
agencies at the district level. In terms of coordination, it is further stated that the Regional Governor
with the support of District Mayor is responsible for coordinating the activities of the government
agencies at the district level; to include oversight of policy discharge, planning, budgeting, financing and
reporting. Broad functional assignments are prescribed as follows:

Regional Councils: The Regional Council consists of the Regional Governor; Deputy Regional
Governor; the Executive Secretary of the Region (as the Secretary); the Mayors of the Districts in
the Region (as Members); and the Heads of Government Departments in the Region. Roles and
Responsibilities of the Regional Councils are:

To reach decisions about the political, economic, administrative, security and development
matters which concern the region;
To review the budgets of the Districts in the region;
To strengthen the peace and assure security;
To review the administrative and political resolutions of the Districts in the region;
To mediate in any disputes between the Districts or between the communities of the
Region; and,
To form sub-committees to which the Council can delegate specific duties.

District Councils: District Councils have self-administration powers and can levy and collect taxes,
provide services and lead district development planning. District Councils are formed through
competitive elections contested by the political parties in the Local Council elections. The District
Mayor chairs the District Council and the secretary of the District Council is the Executive Secretary.
In relation to the three sectors under assessment, the District Councils have full powers to perform
a wide range of functions and to offer a wide range of services within their areas of jurisdiction;
these are:

Promotion of economic growth and development including initiation and implementation
of development programs and projects at the local level;
Promotion and care of the social welfare, such as education, health, water, electricity,
sanitation, etc.;
Care and welfare for the environment, forestation, and animals and economic
infrastructure in collaboration with relevant sector ministries;
Generation, mobilization and allocation including accounting for the use of public resources
Inspection of new buildings, and those that are being renovated or require demolition in
collaboration with the Ministry of Public Works and Housing;
Provision and maintenance of public infrastructure e.g. construction, improvement and
care of roads inside the towns of the district in collaboration with the Ministry of Public
Works and Housing;
Promotion of participatory planning and community participation in local decision making;
Establishment of sub-committees as required.

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Village Councils: The Village Council does not have self-administration powers and therefore cannot
levy taxes nor have their own functions. Rather, the Village Councils are an extended arm of the
district and carry out certain functions on behalf of the district administration. The members of the
Village Councils are not to exceed seven members and are proposed by the local District Mayor in
consultation with the business people, elders and intellectuals of the village, and are approved by
the Local District Council. It is stated that ensuring representation at different levels is critical
condition for effective Village Council. The Village Council is allocated the following general
functional assignments, relevant to this study:

To spearhead and coordinate activities aimed at improving the welfare and development of
the community such as health, education, water, electricity and hygiene, etc;
To encourage citizens to participate in decision making processes at the district level,
thereby ensuring the District Council is accountable to its citizens; and,
To improve the relationship and trust between the district authority and citizens by
improving the transparency in public administration and efficiency in public expenditure.

23. The Central Government employsaccording to the annual budget 20119,843 civil servants.
37% are in Education and 18% in Health. Finance is the next largest ministry with 6%. There are four
grades, A (most senior), B, C, and D. About 60% do not have a secondary education, a further 35% either
have a secondary education, and about 5% are graduates. Women make up 27% of the civil service;
there are 110 directors. 66% of staff are frontline service providers and work-in the regions and regional
offices of the central government. There is about 3,500 staff in local government, almost 900 of which
work for the Municipality of Hargeisa and 305 for the Municipality of Berbera. There are about 4,773
police, 1,026 custodial corps, 326 coast guards and 10,365 military forces. In total there are 16,952
uniformed civil servants and 9, 843 non-uniformed civil servants, leading to a grand total of 26,795
uniformed and non-uniformed civil servants. (Source, MoF MTFF)

24. A map of Somaliland is provided below, showing the regions and contested areas.

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Figure 3: Map of Somaliland

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-3-
Education Sector
Assessment Findings

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QUICK SUMMARY OF EDUCATION SECTOR FINDINGS
In Somaliland, a National Education Policy has been in place since 2005 and a National Education Act
was approved in 2006. There is also a Somaliland Education Sector Strategic Plan for the period 2007-
2011 and an Operational Plan for 2009. The National Development Plan (2012-2016) remains the most
recent policy document. In addition, a Free Primary Education (FPE) policy was introduced in January
2011. Additional documents approved include: a Strategic Plan for Primary Education for Disadvantaged
Groups, a document outlining Strategic Issues in Teacher Management and Development (approved in
2008) a Funding Plan for Expanded Access to Primary Education, a Secondary Education and Technical
and Vocational Training (TVET) Strategic Document for the period 2008-2009, a Teacher Education
Policy, a Teachers' Code of Conduct, and an Accelerated Basic Education (ABE) Curriculum, Transfer
Policy and Implementation Strategy. In addition, a Gender Policy has been drafted and a Gender
Scholarship Fund is in place.

The 2005 National Education Policy and 2007-2011 Sector Plan do not explicitly stipulate the division of
roles and responsibilities between the central, regional and local government layers, and they do not
appear to reference Law 23/2002.
Further, although Law 23/2002 (The Republic Of Somaliland Regions And Districts Law) stipulated that
under Article 32 that the District Council shall establish a Social Affairs Sub-Committee, responsible for
for health, water, cleansing, education, sport, arts and literature and under Article 112 (I) it is
similarly stated that the administration of community services, such health, education up to
elementary/intermediate school level shall be the responsibility of the regions and districts in so far as
they are able to do so. Unfortunately most Grade B, C and D districts have insufficient resources to
fulfill this broad mandate, with a dedicated staff of only 1-2 in most cases; none in others.

In 2009 actual spending in education was US$2,235,855 in 2010 it was US$2,411,281 and in 2011 it
increased almost three fold to US$6,189,263. As a result beyond payment of basic wages and teachers
stipends government performs few actual production functions but this may soon change. Where
provision functions, which include policy formulation, planning, budgeting and regulatory oversight
and enforcement are performed, lack of REO and DEO staff, facilities and transport undermine
governments ability to set and enforce sector governance standards in the districts. With a lot of
external funding and involvement of the private sector (Diaspora) and local communities, service
delivery is decentralized by default and not design, but also badly fragmented with few common
standards and multiple curricula. There is also a wide difference in salary structures and top-ups
between state and non-state schools.
Although perhaps only the first 6 regions have achieved the minimum requirement for regional
management (including premises), the newly nominated 7 regions lack basic resources to conduct their
work and similarly District Education Officers are not always staffed. However, based on the results of
the field assessment, the following functional assignments are provided by REO and DEOs, where they
exist. A survey of sub-national staff and their minimum needs also needs to be undertaken.

The REOs, based on the results of fieldwork, currently have the following functional assignments:
Representing the MoEHS in all relevant regional decision making meetings;
Member of their respective Regional Governor's Council and other relevant Regional Committees;
Supervision and oversight of all educational activities in their respective regions;
Support the planning of education needs at the regional level;
Manage the distribution of public funds and stipends and oversight of funds collected and used by
CECs/SECs (School Education Committees);
Supervising MoEHS programs and projects with assistance from their staff and the DEOs;
Ensuring that national examinations are properly organized and conducted in schools and centers;
Coordinating examination supervision with the National Education Council Directors, in their
respective MoEHSs;
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Accountable for the delivery of educational services, assisted by Regional Inspectors/support staff.
Responsible for mediating conflicts, and dealing with issues related to discipline within their own
jurisdiction, including down to the school level, if necessary;
Representing the Minister unless the issue is political, in which case it is passed to the MoEHS; and,
Responsible teachers management and deployed in their respective regions.

The DEOs, based on the results of fieldwork, currently have the following functional assignments:
Responsible for the functioning of schools, teachers and head teachers under their purview;
Representing the REO at the District Education Committee and District Council levels;
Coordinating with the Social Affairs Sub-Committee to support district education needs planning;
Providing technical and other support to schools in their districts, working closely with Head
Teachers;
Mediating between teachers and the community and work in close collaboration with Head
Teachers (HTs) to make sure that SECs are up and functioning;
Assisting the REO in the distribution of stipends (if requested by the REO to do so) and other MoEHS
payments to teachers and HTs at the school level;
They are the MoEHSs and REOs first line of support in dealing with school level discipline and other
problems;
Representing REO and MoEHS interests at the District Council level, reporting back to the REO
district level education needs and problems;
Responsible for disseminating information to the district level of changes in rules and other changes
in practices pertaining to the delivery of educational services at the local level.
Keeping REOs well informed about the educational situation in their own districts.

The Proposed Functional Assignments in Education for the District Council, implemented by the Social
Affairs Sub-Committee, are as follows:
Revenue and expenditure assignments to finance education investments in coordination with
MoEHS policy/planning guidelines;
Participated in Bottom-Up District Education Planning;
Approving the District Education Plans and Annual Budget Estimates;
Supports the DEO and REOs in bottom-up planning district education needs;
Oversight of school construction standards, location and combined services based on central
guidelines and standards;
Interacts and motivates communities.

There are other assignments that could be outlined, but this would depend on the service delivery
model being supported, and these need to be defined. However, with the majority of funding for the
sector being off-budget (as addressed within the remits of the ongoing ESP work) the main thrust of
Government effort must be on setting policy, planning, budgeting and regulatory oversight and
enforcement guidelines and building its staffing capacity with the aim of increasing compliance of
stakeholders towards a less fragmented service delivery model.

Given the high degree of fragmentation, a standard Service Delivery Model needs to be identified (for
example involving School Based Management) for primary and secondary education, to lead the charge
setting school standards and governance practices to increase conformity.

Using new survey data, it will be essential to link school development plans with district plans, around
which standard measures (student/teacher ratios, catchment areas, costs) can be executed;

While support has been provided by UNICEF, IPs and under the ESP, large parts of Somaliland (nomadic
areas) are uncovered by the current delivery system; and,

Costing will be critical to increasing budget allocations and demonstrating to government the need to
better govern off-budget contributions.
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3.

EDUCATION SECTOR ASSESSMENT FINDINGS 6
3.1. INTRODUCTION
25. This section presents the results of the education sector unbundling exercise, established through
in-depth analysis conducted over a 19 day period of field work at central, regional, district and
school/Village Council levels, which included interviews with a total of 61 key informants. Whilst all
key policy and strategy documents were made available, the assessment was impeded by lack of data
(i.e. on staffing, staff positions filled in the regions, on teacher numbers and sector spending including
off-budget flows) in general. The assessmentbased on the observations and constraints outlined in
this sectiondescribes the functions and sub-functions of the formal state education system, which
require substantial re-organization despite the excellent MoE Decentralization Policy Framework
(2008) which outlined the following important policy documents to guide implementation at the
decentralized levels:

Standards for teacher competence;


Standards for the management of the teaching force (including remuneration);
National curricula and learning standards for education and training;
National textbook production and distribution standards;
National enrolment targets;
National infrastructure and equipment standards;
National school effectiveness standards;
National education information standards; and,
Powers and duties in the education system.

26. This Policy Framework for the Decentralization of Education is largely based on the Somaliland
National Education Policy (SNEP), the draft Somaliland National Education Act (SNEA) and intensive
discussions with education stakeholders. (MoE, DPF 2008). An Operational Plan for 2009 was also
developed to support the process of decentralization. This decentralization policy sets out the
framework for the definition of powers and responsibilities of the various structures responsible for the
implementation of the Education Sector Strategic Plan (ESSP), including the MoEHS, regional and district
offices and stakeholders at all levels. A cornerstone of MoEHSs strategy has therefore been to
guarantee that core educational resources (human, material and financial) are distributed
geographically on an effective, efficient and equitable basis. The policy framework states that (i)
effectiveness requires attention to the appropriateness of training, building and materials development
programs (ii) efficiency requires that programs are delivered on time and at the lowest possible cost and
(iii) that equity requires that we spend more per capita on disadvantaged students, because their
education costs more as a result of factors such as remoteness, population mobility and prior
educational disadvantage.

27. Despite the strong work already conducted, undertaking an unbundling of the education sector is
however made complex by numerous factors, including the current structure of the service delivery
model which includes significant non-state financial flows which are critical to delivery. Currently,
most sector production functions are already highly decentralized and there appears to be good
argument to therefore strengthen sector provision functions (management of policy, planning,

6
The central government employsaccording to the annual budget 20119,843 civil servants. 37% are in Education and 18%
in Health. Finance is the next largest ministry with 6%. There are four grades, A (most senior), B, C, and D. About 60% do not
have a secondary education, a further 35% either have a secondary education, and about 5% are graduates. Women make up
27% of the civil service; there are 110 directors. 66% of staff are frontline service providers and work-in the regions and regional
offices of the central government. There is about 3,500 staff in local government, almost 900 of which work for the Municipality
of Hargeisa and 305 for the Municipality of Berbera. (Source, MoF MTFF)
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budgeting, execution and regulatory oversight and monitoring) at central, regional and district levels.
This has implications for the findings, pilots and shared services models to be proposed. This review is
therefore shaped by the following broad issues and observations:

Lack of Data: Apart from the Primary School Census (Sept 2011) and other research initiatives, data
and information on the sector is not readily available, and often not produced at all, which impacts
the depth and often quality of analysis;
Legislative Issues: There are numerous pieces of legislation which show a significant political
commitment to improve decentralized delivery, yet there appears to be problems in turning this
commitment into practice, due to capacity, fiscal and coordination constraints;
Already Decentralized Education Production Functions: With large off-budget flows and strong
private sector financing from the Diaspora, as well strong Village Council community in education
service delivery, the current service delivery model is already highly decentralized in many ways.
Strengthening provision functions at all levels of administration is therefore required, although in
many areas, government has made considerable improvements in recent years; and,
Sector vis a vis local government production and provision mandates: Unbundling service delivery
assignments requires clarity as to whether decentralization is being considered within the MoEHS or
to the District Councils and Village Councils.

28. The data and conclusions presented in this report are the product of field-based research carried
out over a period of just under three weeks. Illustrative of this fieldwork, a comprehensive field trip
conducted in Gabiley, a small rural town West of Hargeisa, where key interviews where held with those
responsible for the delivery and supervision of education services including (i) schools, (ii) regional
offices, (iii) the Mayors Office, (iv) national and international NGOs, (v) JPLG UN partner agencies, (vi)
four supporting ministries, (vii) a university and (viii) a technical vocational training center. These
interviews served not only to provide a broad and clear picture of the reality on the ground, but also to
verify information previously gathered at the ministry level and from preparatory deskwork. Further
facilitating understanding of both state and non-state contributions to education, a focus group
composed of School Education Council members was held with the assistance from Pastoralist &
Environmental Network in the Horn of Africa (PENHA); a Hargeisa-based UK NGO responsible for
pastoralist environmental and education programs. This and other field visits, supported by the recently
conducted District Capacity Assessments, provides a clear understanding of the current service delivery
model and where functional assignments should be cast, and strengthened, across the three tier
structure of state and into the private sector and communities.

3.2 EDUCATION SECTOR SERVICE DELIVERY CAPABILITIES


3.2.1 MAIN ACTORS
29. The organizational chart provided in Figure 4 below attempts to represent the structure of the
MoEHS, given continual structural reforms under the leadership of the incumbent Minister to improve
the functional alignment with policy, production and provision functions. This is not intended to be an
administrative diagram but rather a diagram that describes the core sub-functions of the sector around
which analysis of productive and provider assignments can be understood. Current attempts to
rationalize the management and governance structures of the MoEHS are countered by poor or absent
pension provisions, deeming retirement for seasoned senior managers an unviable option.7 The
promotional bottleneck created by an aging leadership (over 50% of the MoEHS directorates and
sections are led by personnel with more than 30 years of public service experience), the absence of
pension incentives, and low salaries act as a disincentive for the recruitment of qualified young

7
For reasons relating to the civil war of 1991, and the instability that followed, Somalias public service pension fund was
commandeered by the military, leaving public employees in all three territories unable to afford to retire.
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graduates into Somalilands public services. This situation is further compounded by a lack of university
students choosing to pursue training or careers in education disciplines.

30. In this context, the incumbent Minister is committed to undertaking vigorous internal reforms, and
has taken steps towards establishing mandatory work hours for staff at all levels, and implementing a
professional code of ethics with an emphasis on providing quality services to the public. These efforts
are laudable. Furthermore, with help from the new MoEHS Human Resources Department, established
with support through the Integrated Capacity for Somali Education Administrations (ICDSEA) program,
the current Minister has begun a re-organization process including the introduction of a comprehensive
filing system for all staff. To aid this re-organization process, Private Education and Higher Education
directorates have been instituted. Of remaining concern, however, are non-functioning key
departments, including inspectorate, financial management, formal education and educational statistics
functions. Plans exist for their upgrade and, if necessary, replacement of existing non-performing staff.

31. The MoEHS is not alone in the sector, with other executive structures playing a key role in the
sector including:

The Ministry of the Interior: MoI is responsible for providing legal and monitoring oversight for
services delivered at the regional and district levels;
The Ministry of Planning and Development: MoPD is responsible for approving and monitoring the
implementation of national and sectoral plans, on a quarterly and annual basis;
The Ministry of Finance: MoF is responsible for approving and monitoring the education sector
budget and expenditures, setting budget ceilings, agreeing recurrent and capital costs splits and
releasing quarterly advances to finance the agreed appropriations bill;
The Ministry of Labor and Social Affairs: MoLSA, in coordinating with the MoEHS, supports youth
development, training and employment, and monitoring gender equity in the allocation of jobs;
The Ministry Religion and Endowments: Which has joint responsibility and oversight for the
establishment and licensing of Quranic Schools (Madrasahs).

32. Regional, District and Village Councils: The Regional, District and Village Councils are the key
delivery structures for the state education system, with all councils being considered structures of
government. Of the six regions and 41 districts, there are hundreds of Village Councils, which play a
critical role in meeting access, quality and equity goals.

33. International Cooperation Partners: Major donors, UN agencies and NGOs actively supporting
MoEHS service development and delivery activities include: UNICEF, USAID, EU and the African
Education Trust (AET), Mercy Corps, CfBT, Save the Children, the Norwegian Refugee Council, ADRA,
SYFN, and a plethora of local NGOs. Donors remain the primary financiers of both production and
provision functions.

34. Private Sector: The National Development Plan rightly sees the private sector as the engine and
driver of growth, as it constitutes 90% of GDP and the Diaspora provides around US$400 million a year,
of which a large percentage goes to education. Quranic schools are also critical to the sector and these
are all funded through private flows. The private sector is also critical to building school-based
infrastructure.

35. Parents, Teachers and Children: Needless to say parents, teachers and children are at the very
center of the education system, providing the day-to-day interface for delivery and the being the main
structure responsible for security bottom up accountability. The extent to which parents, teachers and
children are central to school based management however depends heavily on how the school is both
financed and governed.

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36. Figure 4 below provides the proposed organizational structure of the MoEHS, around which the
main functional (decision-making) units can be identified. Whilst this is not the current structure, it is
the structure the Minister is working towards.

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Figure 4: Somaliland - Ministry of Education and Higher Studies Proposed Organizational Structure

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3.2.2 SUB-SECTORS8
37. The MoEHS organizational structure proposed by the new Minister and advisory team is presented
in Figure 4 above, showing education being split into formal and informal education. The formal
educational system of Somaliland comprises eight years of primary education (four years of lower
primary and four years of upper primary) and four years of secondary education. University education
normally takes four years to complete. Thus, it is a 4-4-4 system. The Somaliland MoEHS also recognizes
non-mainstream adult and vocational education provided mostly by the private and not for profit
sectors (NGOs) as integral parts of the education system. Currently the Somali language is the official
medium of instruction for primary schools (1-8). English is introduced as a subject from Grade 2 and is
the medium of instruction for secondary education (9-12). Arabic is taught as a language subject from
1st to the 12th grade. There are also many private schools where Arabic is main medium of instruction.
(NDP, 2012). Based on the structure of the education system, the following functional classification for
the sub-sectors can be presented:

Primary (Basic Education) Education (627 schools): Eight years of education, including school
feeding programs at primary school level and coordination and regulation of private schools
Secondary Education (68 Schools): Four years of secondary education, around the core state
curricula and other curricula adopted for Quranic schools for example;
Non-Formal Education: Adult basic education, alternative education, TVET; and,
Higher Education: The first university (Amoud University) was launched in 1998 but by 2011 there
were 16 higher education establishments registered with the MoEHS, with a total student
population of about 15,000. There is at least one university in each region.

38. Primary Education: Primary education is Somalilands largest education sub-sector, serving the basic
education needs of 170,930 children, across six regions. Increased demand for primary
schoolingespecially after the in-coming government administrations announcement that primary
education will now be provided free of charge for all Somaliland childrenhas put excessive pressure on
already inadequate service delivery systems. Until 1991 there were just 46 primary schools in
Somaliland. Since then, education has expanded quickly with the number of primary schools rising in the
academic year 1995-6 to 159, though with total enrolments of just 8,667 students. Furthermore,
according to the Somaliland NDP (2012-2016) gender ratios at primary level are also of concern, with
the Gender Parity Index (GPI) recording only 0.4 for primary education and 0.2 for secondary schools.
This translates to a ratio of just four girls for every six boys in primary schools, and just two girls for
every eight boys in secondary schools. (NDP, Pg. 242). The contrast between enrolment figures from
1995/96 (See Table 9) and 2008/09 (See Table 10) shows the considerable improvement over this
period.

Table 9: Somaliland Primary and Secondary Education Enrolment (1995/6)

Education Level Schools Enrolment Gender Parity Teachers


Male Female Total Index=Female/male
Primary 159 6,170 2,497 8,667 0.4 933
Secondary 3 278 51 329 0.2 29
Source: Somaliland NDP (2012-2016)

39. Primary and Secondary Education enrolment numbers changed dramatically in subsequent years
following the academic year 2005-2006, and by the year 2008-9, there were 627 primary schools and
68 secondary schools in Somaliland. Primary school enrolment rose sharply to 170,930, while secondary

8
This section draws on the 2012-2016 NDP.
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school enrolment rose to 20,460 (see Table 10 below). Improvements were also made in terms of
gender equality, with the GPI rising to 0.6 in primary and 0.4 in secondary schools.

Table 10: Primary and Secondary Education Enrolment (2008/9)

Education Level Schools Enrolment Gender Parity Teachers


Male Female Total Index= Female/male
Primary 627 108,322 62,608 170,930 0.6 4,969
Secondary 68 14,843 5,646 20,460 0.4 546
Source: Somaliland NDP - 2011 numbers

40. Current Enrolment bottlenecks in Primary Education: The Net Enrolment Ratio (NER) referring to
the percentage of primary school-age children (6-13 years of age in the case of Somaliland) enrolled at
primary schools, demonstrated an enrolment increase between 1999 and 2006 from 23% to 40%. This
trend represents an average annual enrolment increase of 2.4%. Using the 1999 NER of 23% as a
baseline, and the average annual increase as the rate of change, a trend analysis over this period,
yielded a NER of only 49%, in 2010. These figures indicate that approximately 443,000 primary school-
age children were not attending school at the time. As a result, NDP analysts conclude that Somaliland
lagged behind the expected 2010 NER of 75% required to achieve the MDG target of 100% by 2015. The
NDP is very clear on the major constraints to the education sector, which is a positive sign.

41. Low Primary Enrolment levels: The principal reasons for low primary enrolments is insufficient
number of schools and the inability of the current educational service to reach nomadic communities,
constituting an unknown but substantial, but under-served segment of the population. There is,
therefore, an urgent need to find creative and innovative ways of bringing quality educational services
to Somalilands pastoralist majority by introducing tried and proven approaches such as mobile schools
and boarding schools, which have boosted nomad school attendance elsewhere. In some urban and
peri-urban areas, distances between home and school, along with educational costs provide further
barriers to enrolment.

42. Secondary Education: Secondary education is the fastest growing educational sub-sector in
Somaliland as a consequence of record enrolments at primary level. While increased enrolment is a
positive development, stress created by over-enrolment evident at the secondary schools visited in
Gabiley and Hargeisa is indicative of a region-wide problem. In the schools visited, insufficient space, a
shortage of trained teachers, inadequate resources, and poor water and sanitary services demonstrated
a need for an urgent response and effective solutions on behalf of MoEHS planning and facilities
departments in Hargeisa. Information shared by the African Education Trust (AET), from their database,
revealed important secondary school trends and numbers:

In 2010, there were a total of 84 secondary schools in Somaliland of which 57 were public, and 27
private;
During the same period, a total of 26,107 students were enrolled, of which 18,177 were male and
7,925 female;
The period 2010-2011 saw a dramatic increase in demand for secondary education, but a less
significant increase in the number of schools;
In 2011, there have been 86 secondary schools registered, of which 57 are public, and 31 are private
schools;
Also in 2011, a total of 31,072 students were enrolled, and 9,507 were female, while 21,656 were
male; during the same period, there have been 679 secondary classrooms, hosting a total of 607
classes taught by 1,112 teachers;
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Again during this period, 628 public and 306 private school teachers have been registered as
qualified, while 132 public and 45 private school teachers, deemed unqualified; and,
While secondary school enrolments have increased dramatically, there are still high dropout and
attrition rates for female students throughout the system.

43. The Need for Capacity Building: The number of primary schools has increased dramatically over the
years, but it is still well short of the numbers required. Similarly, the number of secondary schools
needed to meet the recent growing demand for secondary school places, has not been met. Both trends
are major causes for concern among senior education officials. Because of resource constraints, the
MoEHS is incapable of meeting the rising demand for education. There is strong commitment to the
development of education by international organizations, but this is still insufficient to fill the existing
gap. The shortfall is not only in quantity but also in quality, and rapid expansion of school facilities has
not been matched by qualitative improvement in education. The MoEHS is now faced with the task of
reforming the education sector and raising standards by: (i) training teachers, (ii) providing better
textbooks, (iii) improving classroom environment (iv) developing a curriculum consistent with the needs
of the local economy and (v) decentralizing clear functional assignments within the sector and the
regional, district and Village Council system.

44. Aside from a shortage of funds, further capacity building is required in terms of (i) general
management, (ii) strategic planning, (iii) supervision, (iv) curriculum design and development, (v)
leadership and (vi) financial management. There is an urgent need for an efficient organizational
structure capable of recruiting and keeping well-trained teachers, quality management and appropriate
curricula. The quality of education in both private and public schools depends on improvement in
teachers skills and remuneration, alongside capital investment in infrastructures and operations and
maintenance. In terms of local government, in the absence of sufficient block grants provided to district
administration, local sources of revenue remain insufficient to provide considerable financing to the
sector. Finally, according to the 2012-2016 NDP, the main challenges facing the formal education sector
are manifested in the need to improve:

Net enrolment ratio in primary education;
Proportion of pupils completing primary education;
Literacy rates;
Ratio of girls to boys attending primary and secondary schools;
Classrooms and other facilities, for both primary and secondary levels;
Special education provisions;
Vocational and adult education facilities;
Qualified teachers at both the primary and secondary levels;
Teacher remuneration for all levels;
Specialized teacher training institutions;
Management, planning, supervision, and curriculum development capacity; and,
Financial resources for all levels of education, but more especially to meet the cost of the new free
primary education provision.

45. Higher and Tertiary Education: Growth in tertiary education has been equally significant. The first
university, Amoud University, was launched in 1998, and by 2011, the number of higher education
institutions registered with the MoEHS has reached 19, with a total student population of about 15,000.
Today, each of the original six regions has at least one university and several colleges, or institutes of
higher education. Of the 19 registered universities, 10 are public and grant receiving, whilst nine are

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private self-supporting institutions. (NDP, 2012-2016). The proposed structure of the Ministry of Higher
Education, which has still to be established, has been provided by the Minister of Education and is
presented in Figure 5 below.

Figure 5: Proposed Organization of Higher Education in Somaliland




















46. The Non-Formal Education (NFE) sub-sector: The NFE sub-sector is comprehensive, varied and
encompasses some of the most creative and innovative practices currently being applied to the
education sector in Somaliland. The NFE Sector Office in the MoEHS is headed by an experienced Senior
Director and supported by a Deputy and Office Administrative Assistant. The non-formal sector has
oversight over six separate, but frequently overlapping, educational activity areas:

Technical and Vocational Training: This important area encompasses numerous private sector
centers and NGO initiatives aimed at unemployed and out-of-school youth, rural communities and
marginalized populations including Somalilands nomadic communities. Some TVET centers
combine a variety of skills training with adult literacy and formal education classes, providing
second-chance learning environments for young adults who failed to complete their primary and
secondary education. TVET training centers are frequently donor-supported and run by
international or local NGOs. Two leading providers of this service are Candlelight (CLHE) and the
Horn of Africa Voluntary Youth Committee (HAVOYOCO) who provide a variety of vocational
educational services.9 Other significant support has been provided by SC (EU-funded).

Decentralized Education Policy Framework: There are a number of laws that promote
decentralized service delivery although it is Law No. 23/2002 formally regulates the regional, district
and Village Councils in Somaliland. The powers and functions of the District Councils have been
provided above. The law also defines the roles and responsibilities (services to be delivered) by the
Local Councils, and the other stakeholders in the local administration system. It also establishes the
relationship between the District Councils and the state government in particular the MoI, which is
responsible for supervising and strengthening local government. Community and special education

9
Such education services include, for example: (i) training of teachers, (ii) peace education, (iii) environmental education, (iv)
training in carpentry, plumbing, electrical services, electronics, tailoring, secretarial and computer skills, motor mechanics, food
preparation, (v) distance education by radio, (vi) adult literacy classes, (vii) the rehabilitation education and training of street
children, and (viii) other humanitarian services aimed at poor and marginalized groups.
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services are mainly delivered by NGOs and funded by donors. Community development activities
include, for example, work with nomadic and displaced communities in (i) livestock keeping, (ii) bee
keeping, and (iii) learning agricultural practices and techniques for conserving water and caring for
the environment. PENHA is exemplary in that it combines training and education to marginalized
rural communities in conservation, environmental stewardship, livestock keeping, farming and
other appropriate agricultural practices with a high degree of success. Special education provision,
which is still only nascent in Somaliland, requires substantial financial and technical support with
few centers currently run and supported by donors and international NGOs such as Handicap
International;

Media and Communications: Media and Communications are currently being promoted through
NGOs such as AET in the form of distance education by radio, with financial and technical support
from the BBC and DFID. Social mobilization strategies are also frequently supported by UN agencies
such as UNICEF and UNIFEM, and use local media outlets including radio, television and the local
press to promote social messages and raise public awareness on pertinent issues including Female
Genital Mutilation (FGM);

Accelerated Alternative Basic Education: Strategies in this respect are being developed to reach
out-of-school youth and school dropouts with equivalency programs that can help them catch up
and, if possible, re-integrate into formal education, either at the primary or early secondary levels.
These strategies receive significant support from donors and some UN agencies. AET for its part has
pioneered this approach successfully with financial support from UNICEF;

Family Life Education: Aimed mainly at girls, young women and men, Family Life Education
teaches life skills, child rearing, primary health care and other essential family supporting skills and
knowledge. This training is often combined with literacy, or other formal education courses. A
number of local NGOs such as CLHE and HAVOYOCO use this approach to change existing behaviors
and promote family health care and better child nurturing practices; and,

Adult and Youth Education: Strongly promoted by the MoEHS, donors and NGOs in a variety of
ways, Adult Youth Education is often linked to numeracy and literacy classes which are integrated
into a broad range of skills training approaches.

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Figure 6: Structure of Non-Formal Education Department to MoEHS, Somaliland
















3.2.3 SERVICE PRODUCTION PROCEDURES
47. According to the MoEHS structure proposed above, service provision is to be concentrated in four
departments and one unit. The four departments, which are being assembled with the help of five
Diaspora technical advisers selected and contracted through the ICDSEA program (funded by the EU and
UNICEF), will carry out the following key MoEHS functions:

Policy and Planning, including Education Management Information System (EMIS);
Human Resource Management and Organizational Development;
Standards-based Quality Assurance, including Examinations and Inspection/Supervision;
Financial Management and Planning; and,
Gender Equity.

48. All five new service production (See Table 11 below) and oversight entities have begun to
implement plans of action approved by the new Minister and her Director General. Attached to each
division are two national trainees selected from qualified local university graduates (most with at least
two years teaching experience).

Table 11: Summary of Service Production Functions

Functions Description
Policy, Planning and Setting up and training staff to run EMIS, which will be used to collect and process
Statistics data as a base for evidence-based policy making;
Drafting policy documents and coordinating development of the Education Sector
Plan 2012-2016;
Advising the Minster on aspects of the Education Act (pending enactment);
Reviewing donor-created documents of significance to MoEHS planning and
implementation process.
Human Resources and Creating a viable Human Resources policy;
Staff Development Necessary rules and guidelines to improve MoEHS staff performance, discipline,
recruitment protocols, and staff training requirements;
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Table 11: Summary of Service Production Functions

Diaspora Adviser currently responsible for activating this aspect of MoEHS


administrative services;
Re-allocation of existing staff to new positions and to bring in new recruits.
Quality Assurance, Responsible for oversight of curriculum development;
Examinations and School supervision and inspection;
Inspection/Supervision General oversight of standards in both the primary and secondary sub-sectors;
Examination Section and Printing Press responsible for printing internal
documents (examination papers, graduation certificates, staff guidelines,
textbooks, Ministerial directives and policy papers etc.)
Administration and Still being developed. Future activities will include:
Financial Management Introduction of computerized accounting and financial management systems;
Train Finance department staff;
Upgrading and modernization of the MoEHS archives and warehouse and
procurement systems
Gender Awareness and Raising awareness of lack of access and participation in education for girls;
Oversight Promote gender mainstreaming within the MoEHS and in all education policy and
planning documents and processes;
Managing the Accelerated Female Participation in Education fund to disburse
scholarships to girls from disadvantaged backgrounds at all levels.

49. Policy and Planning Department: Work carried out in this department includes setting up and
training staff to run a working EMIS, which will be used to collect and process data as a base for
evidence-based policy making. The EMIS in Somaliland is partially funded and supported by UNICEF, the
NRC and the EU. The Policy and Planning directorate is responsible for drafting policy documents,
advising the minster on aspects of the Education Act (pending enactment) and reviewing donor created
documents of significance to MoEHS planning and implementation process.

50. The Department of Human Resources and Staff Development: Once established, this department
will be responsible for creating a viable HR policy and the necessary rules and guidelines to improve
MoEHS staff performance, discipline, recruitment protocols, and staff training requirements. Two
trainees have been allocated to the Diaspora Adviser, who is currently responsible for activating this
important aspect of MoEHS administrative services. The incumbent Minister regards this aspect of the
MoEHS service production as top priority, given the need to re-allocate existing staff to new positions
and to attract new recruits.

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Figure 7: Final Structure of HR Department, MoEHS, Somaliland


















51. The Gender Unit (GU): Established within the MoE in 2007, the GU has the key function of raising
awareness of lack of access and participation in education for girls, and to promote gender
mainstreaming within the MoEHS. In the last four years the unit has received financial support from
INGO agencies such as AET and UNICEF to carry out its functions. As Part of the ICDSEA program, a
situational analysis of the GU has been carried out. The Gender SITAN took two months to complete,
and reviewed key policy documents, assessed the capacity of the unit, laid out critical findings of the
analysis, and set out recommendations and strategic plans of action necessary to improve the
effectiveness of the GU. To carry out a comprehensive assessment of the GU all staff members of the
unit were interviewed and completed questionnaires regarding their roles, competencies, and overall
assessment of the units needs. Significant progress has already been made toward the implementation
of the units first action plan. UNICEF has also supported the Gender Unit to recruit and train regional
gender focal points for each region in Somaliland.

52. Since the installation of the current Minister, gender is being viewed as an important crosscutting
element affecting the overall effectiveness of the MoEHS. Major partner agencies and donors such as
the EU and UNICEF provided data and resources to better assess the impact of gender on the
achievement of Education For All (EFA) and MDG educational goals in Somaliland. The proposed
structure for the GU is provided in Figure 8 below.

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Figure 8: Draft Structure of Gender Unit, MoEHS, Somaliland





















53. The Department of Quality Assurance and Standards: This department is responsible for oversight
of curriculum development, school supervision and inspection, as well as for the general oversight of
standards in both the primary and secondary sub-sectors. Further re-organization will be needed to
achieve a level of efficiency needed to make this division more effective. An experienced, but aging
cadre of senior staff, and a shortage of qualified and trained staff able to replace them, are major
obstacles. Paralleled to the Quality Assurance directorate, there is a MoEHS Examination Section and
Printing Press, which are responsible for printing numerous internal documents such as examination
papers, graduation certificates, staff guidelines, textbooks, Ministerial directives and policy papers. The
Office of the Chief Inspector have revealed that while each team member (nine inspectors) has a
designated geographical area of responsibility and an annual work plan, none are able to perform their
responsibilities effectively due to lack of transportation, allocation of per diems, or travel incentives as
was the case in the past. As a result, school visits in remote destinations are rare, with the focus being
on schools in the Hargeisa area, or within easy reach from the city. The roles of the DEOs in quality
assurance and standards needs further development, both because not all DEO offices are functional
and because oversight functions not only require standards to be put in place, but also fiscal resources
made available for routine monitoring.

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Figure 9: Proposed Structure of Department of Quality Assurance and Standards, MoEHS,
Somaliland



















54. The Department of Finances and Administration: This department is still being developed given the
recent appointment of the Director of Finances. With the help of a Diaspora Technical Advisor recruited
through ICDSEA, a vigorous re-organization of the department has commenced. Two trainees with
financial training have been recruited, to introduce new accounting and financial management systems
and to train department staff. An upgrading and modernization of the MoEHS archives and warehouse
and procurement systems is also an urgent priority. None of these are online procedures at present.

Figure 10: Proposed Structure of Department of Finance and Administration, MoEHS, Somaliland

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3.2.4 SERVICE DELIVERY PROCEDURES AT REGIONAL, DISTRICT AND COMMUNITY LEVELS
55. The education service delivery model in Somaliland is still very much a work in progress, with
functional restructuring / reorganization of the Ministry ongoing. Assigning functional assignments
when the functional structure is changing is complex; but also an opportunity. As a result, a suggested
MoEHS service delivery diagram is provided in Figure 11 below, yet remains to be finalized by the
Ministry. Following the changes within the Somaliland government following the 2011 elections, an
ambitious reform agenda is proposed to address the need to transfer authority and action away from
the central ministry and towards regional and district offices, where the locus of ministry services should
be. The diagram below emphasizes the need to restore the role of District Councils (intended under the
Constitution, re-emphasized in the National Education Act, and yet to be passed by Parliament). The
Minster further intends to give greater responsibility to the Community Education Committees (CASs are
a critical part of the evolving service delivery model), which in many districts have become merely
nominal entities and need to be empowered to take on a stronger role in the maintenance and
improvement of schools. The proposed mandates of the District Councils in relation to service delivery
are prescribed under the decentralization law, and have not (apparently) been defined otherwise.

Figure 11: Proposed MoEHS, Somaliland, Service Delivery Structure






















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Table 12: Findings from Hargeisa

During the Primary Schools CEC Focus Group meeting held in Hargeisa, parents drew attention to the
recent MoEHS policy directive, which declared free education for primary-age children in Somaliland.
Free Education for All

CECs were instructed to stop raising funds for school maintenance, as this responsibility had been
transferred to the government. However, information gathered from the Focus Group discussion and
other sources indicate that the government has not yet budgeted for such funding. Furthermore, while
welcoming the MoEHS decision to provide free primary education for all, concerns have been expressed
that the small amount released by the government for support to local schools would be insufficient. A
reduction in parental contributions is likely to further compound the hardship on schools, some of which
are already overcrowded, poorly maintained and lacking in basic essentials. Concerns regarding the
future of primary education raised in Gabiley are again indicative of concerns across Somaliland.
MoEHS Regional Office in Gabiley has further highlighted decentralization of education services as
Decentralization

another pressing issue in the sector. Inadequate premises in terms of size, equipment (including lack of
of Education
Services

telephones and computers) and transportation means (the remaining and only functioning vehicle is
used sparingly because due to lack of gasoline allowance) limits the operational capacity of the REO. For
instance, regional school visits are limited due to lack of transportation, per diem or travel incentives for
inspectors and supervisory staff. It has been suggested by the MoEHS Director of Panning in Hargeisa
that only 4 out of the 6 REOs are operative, due to insufficient basic services and/or qualified staff.

3.2.5 BUDGET: EXTERNAL AND INTERNAL SOURCES OF FUNDING AND ORIGIN
56. The Somaliland MoEHS budget and financial management information shared below was provided
by the Finance Department of the MoEHS, through the incumbent Financial Management Adviser
under the EU supported ICDSEA program. The comparative data for the 2009-2011 integrated national
education budgets was obtained from the Ministry of Finance showing plans for a considerable increase
in sector spending. To put this in focus, Somaliland is planning a budget of US$12 million for education
in 2012.

57. The Consolidated budget for MoEHS for Financial Year 2012 is estimated at US$12,676,507, though
as parliament has yet to pass the appropriations bill, this remains a needs based planning figure. In
2009 actual spending in education was US$2,235,855 in 2010 it was US$2,411,281 and in 2011 it
increased almost three fold to US$6,189,263. There is no doubt that Government is committed to
stridently supporting the expansion of education services. A significant percentage of the proposed
2012 budget is projected to cover personnel costs at 67.38% (an improvement from the current budget
allocation of 90% for personnel costs) and school expenses at 23.76%. The school expenses included in
the budget are the bare minimum with an allocation of US$250 per month per school to meet office
stationary and costs for routine maintenance (no budgetary allocation at present). Budget for water is
especially high due to the fact that water for feeding centers is delivered in tankers that are highly
priced as compared to other sources of water. Capital costs are generally investments in office
equipment, computers and printers, which are necessary for efficient delivery of services.

58. Out of the US$8,541,590 budgeted for personnel costs, US$4,884,590 is provided by the
government. In 2011, another US$919,200 was paid for by DANIDA through SC/UK. Therefore, actual
personnel costs are US$5,803,790, which is 68% of total personnel costs, leaving a balance of 32% for
unpaid staff, which totals 2,969 from various categories of staff. The recurrent to capital and O&M splits
are fairly standard for the sector. Even though this has yet to be passed by parliament, and some
adjustments to the downside are likely, the levels of financing for the sector begin to make universal
access to primary education a fundable reality.

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Table 13: MoEHS Somaliland Consolidated Budget Profiles 2009-2011 (SL.SH)

Sub Head Description Budget 2009 Budget 2010 Budget 2011


1.1.0 Personnel Costs - - -
2.0.0.0 Continuity management costs - - ---
1.1.1 Permanent staff salaries 10,961,978,800 11,746,908,400 31,824,552,000
1.1.2 Temporary staff salaries - - -
1.1.3 House and title bonus 93,600,000 105,000,000 116,000,000
1.1.4 Eid bonus - - -
1.1.5 Special bonus 18,000,000 18,000,000 18,000,000
1.1.6 Pension bonus - - --
1.1.7 Balance 6,408,000 9,518,400 -
2.1.2.3 Staff Insurance - - -
SUB TOTAL 11,079,986,800 11,880,026,800 31,958,952,000
1.2.0 Daily service costs
1.2.1 Travelling allowance 33,516,000 33,516,000 23,461,200
1.2.2 In country travel costs - - --
1.2.3 Out country travel costs - - --
1.2.4 Communication costs 33,664,940 71,894,940 23,461,200
1.2.5 Vehicle, offices &houses rent costs - - -
1.2.6 Trainings & exams costs 111,720,000 111,720,000 78,204,000
1.2.7 Invitation and events costs 14,896,000 50,000,000 35,000,000
1.2.9 Petty cash 7,448,000 10,000,000 7,000,000
1.2.17 Water and electricity costs 22,344,000 75,000.000 52,500,000
1.2.32 General assistance service (Gabiley, Arabsiyo, Berbera) 720,000,000
1.2.34 Office decorations costs - 10,000,000 7,000,000
1.2.37 Staff promotions & award costs - 10,000,000 7,000,000
1.2.40 Medical &health costs 15.106,033 50,000,000 50,000,000
1.2. Programs service costs 37,240,000 37,240,000 26,068,000
SUB TOTAL 995,934,937 459,370,940 286,559,658
1.3.0 Service equipment costs
1.3.1 Purchase of cloths &suits costs - - -
1.3.2 Fuel and oil costs 340,000,000 720,000,000 504,000,000
1.3.3 Purchase office stationery costs 29,792,000 40,000,000 28,000,000
1.3.4 Purchase of books and news letter costs 14,896,000 14,896,000 10,427,200
1.3.5 Purchase food & other supplies 260,000,000 260,000,000 445,714,286
1.3.6 Drug costs - - -

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SUB TOTAL 644,688,000 1,084,896,000 1,023,141,486
1.4.0 Fixed asset service costs -
1.4.1 Office and houses equipment -
1.4.2 Vehicle and machines -
1.4.3 Water and electricity equipment 2,234,400 2,234,400 1,564,080
1.4.4 Communication equipment 3,724,000 3,000,000 2,100,000
SUB TOTAL 5,958,400 5,234,400 3,664,080
1.4.6 Maintenance and reconstruction of buildings
1.4.7 Maintenance of vehicle and machines 44,688,000 126,000,000 88,200,000
1.4.8 Maintenance of offices, houses and stores 3,724,000 3,724,000 2,606,800
1.4.9 Maintenance of schools 37,240,000 3,240,000 80.500,000
1.4.10 Maintenance of school furniture 37,240,000 37,240,000 26,068,000
SUB TOTAL 122,892,000 204,204,000 197,374,800
2.6.3.0 Another state departments assistance costs
2.6.3.1 Universities and higher education department support costs - 1,050,000,000 2,100,000,000
SUB TOTAL - 1,050,000,000 35,569,692,024
GRAND TOTAL 12,849,460,173 13,583,732,140 35,569,692,024

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Table 14: Forecast Consolidated MoEHS Budget 2012

Description Awdal M/Jeex Sahil Togdheer Sanaag Sool Central TOTAL %


SL.SH US$ SL.SH US$ SL.SH US$ SL.SH US$ SL.SH US$ SL.SH US$ SL.SH US$ SL.SH US$
000,000 000 000,000 000 000,000 000 000,000 000 000,000 000 000,000 000 000,000 000 000,000 000
Staff Costs 1,432,963 249 2,551,306 444 793,838 138 1,456,762 253 1,101,811 192 948,710 165 247,200 43 8,541,590 1,486 67.38
%
Stationery 11,951 2 17,488 3 26,020 4.5 23,636 4.1 10,496 1.8 8,697 1.5 285,264 50 383,551 67 3.03%
Vehicles 17,350 3 21,798 3.7 32,280 5.6 47,975 8.3 28,896 5 11,380 2 169,328 29 329,007 57 2.60%
Maintenance &
Fuel
School 407,400 71 598,200 104 282,000 49 685,800 119 648,000 113 390,600 68 _ _ 3,012,000 524 23.76
Expenses %
Water & 51,000 9 104,112 18 8,640 1.5 24,240 4.2 22,704 4 8,208 1.4 7,920 1.3 226,824 39 1.79%
Plumbing
Maintenance
Electricity & 4,080 0.7 3,312 0.6 2,820 0.5 3,600 0.6 1,560 0.2 1,320 0.2 17,160 3 33,852 5.9 0.27%
Electrical
Maintenance
Communication 9,600 1.7 13,800 2.4 2,880 0.5 8,640 1.5 7,800 1.4 6,600 6,600 1.1 55,920 9.7 0.44%
RECURRENT 1,934,344 337 3,310,016 576 1,148,478 200 2,259,653 393 1,821,267 317 1,375,515 239 733,472 128 12,582,745 2,189
COSTS
CAPITAL COSTS 18,230 3.1 5,800 1 7,150 1.2 11,610 2 7,930 1.4 4,680 0.8 38,362 6.7 93,762 16.3 0.74%
GRAND TOTAL 1,952,574 339 3,315,816 577 1,155,628 201 1,829,187 318 1,829,197 318 1,380,195 240 771,834 134 12,676,507 2,205 100%
PERCENTAGE 15.40% 26.16% 9.12% 17.92% 14.43% 10.89% 6.09% 100%

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59. MoEHS Financial Management Systems: MoEHS maintains a single entry-based manual accounting
system with oversight and control residing with the office of the Somaliland Accountant General. The
accounting system is Vote Book-based for the monitoring of payments and expenditures. This is
supported by a warrant system that allows for cash transfers. Computerization of the Finance
Department was finalized at the end of 2011 through ICDSEA with all staff trained. Further efforts to
improve and sustain a fully automated will need to be supported as government financing of education
makes MoEHS one of the largest spending units. In 2011 budget allocations to the MoEHS are mainly
staff and teacher salaries, and other emoluments, which make up about 90% of the budget. However, as
budget allocations increase, the proportion expended on salaries and other expenditures is expected to
decline and public procurement of capital investments is expected to increase as grants to schools to
cover day-to-day operational costs. The impact of central government covering school overhead costs
even if its only US$250 a monthwill have a large impact of loyalty and conformity.

60. Presently, MoEHS does not have its own revenue source, and depends on appropriations from the
government through the MoF. Typically, support from development partners comes in the form of
project implementation funding (largely capital investments and technical assistance). While these
development partner initiatives do address critical needs in the system, they are essentially pre-
packaged interventions linked to specific sources of funding. The Ministry hopes that development
partners will be willing to channel funds through the Ministry when there is a credible and reliable
financial management system in place to assure the efficient and transparent use of resources.
Developing an automated system would however be critical to laying the ground for the future, and vital
to timely reporting to aid policy development.

61. The need to implement an automated system has now become more urgent because with the
introduction of free primary education, there will be a need for the Ministry to handle external funds
to bridge the resulting financial gap. Preparatory work has already begun in the creation of an
Education Trust Fund (which could be used to pilot service delivery models and functional assignments)
that is expected to attract funding from government, private sector, the Diaspora community and other
donor sources and so trust funds are likely to play a key role in financing the sector for some time to
come. Key elements of the financial management system include:

Government Appropriations: The Government continues to allocate more funds to the Education
sector and has increased the allocation to US$6,189,263 in 2011. The Ministry withdraws the funds
from the Exchequer through the use of warrants. All receipts by MoEHS are recorded in the vote
book on a single entry basis. Largely, the Ministry receives no physical cash; rather the vote book is
a documentation of movement of cash from MoF for the purpose of paying emoluments and
suppliers of goods;
External Funding: Past studies have observed that there are about 19 international institutions that
are supporting the education sector in Somaliland. In addition, there are another 11 local NGOs that
are working in the sector. Most of the development partners are implementing projects directly at
the grassroots and are not channeling any money through the Ministry. However, UNICEF and SC-
UK are providing support to the Ministrythough this support is not on-budget. Concerns over
fiduciary management standards and lack of automated systems can only be resolved through a
committed to core ICT developments in the Ministry, which link across the three tiers of state; and,
Payroll: The current MoEHS budgetary allocation is largely funding salary costs at approximately
90% of the budget leaving very little for operating costs both at the Central and Regional offices.
The payroll for staff is prepared by the accountants at regional and central office on A3 paper
detailing the name of the person, gross salary, tax, other deductions and net salary. The payroll

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report is then utilized to prepare a warrant to request funds. Once the warrant is received funds are
released to the Regional Education Officers (REOs) and the Director of Administration and Finance
(with regard to the central office). Staff members sign off against their names on receipt of the
salary and the warrants are entered in the vote book. SC-UK, which pays some of the teachers and
deposits salaries directly to their bank accounts eliminating the need to handle large sums of
money, and thereby minimizing incidences of fraud and misappropriation. Efforts to introduce such
a system for other Ministry staff are yet to be explored; and,
Expenditure and Assets Systems: Currently the only major duties of the Finance Department are
preparation of vouchers, expenditure and wages, filing documents, and entering the warrant
requests into the vote book. The department does not maintain any assets register and neither is it
able to quantify the Ministry liabilities at any given time.

3.2.6 STAFFING DETAILS AND TECHNICAL SKILLS NEEDS
62. Informant interviews have helped identify key staffing data, as well as capacity needs and
priorities. The comprehensive National Development Plan lists and costs national education priorities,
which have been summarized in the matrix below (see Table 15). It should be noted that this is a needs
based assessment and not the formal appropriations arrangement. Moreover, it highlights the need for
donors to increase support around the NDP in return for strengthening education sector governance.

63. The Ministry faces a number of considerable constraints, which impede the successful execution of
both production and provision functions. These include (i) poor quality of educational provision; (ii) an
unresponsive school curriculum; (iii) absence of standards and controls; (iv) inadequate management
and planning capacity; (v) a weak financial base; and (vi) the existence of numerous and poorly
coordinated educational provisions, which all hinder the functionality and relevance of service delivery
and impede the effective attainment of national education goals and objectives. During the teams visit
the following key deficiencies and institutional bottlenecks were observed:

Currently, limited information is available about individual MoEHS staff in terms of contracts,
service records, qualifications, experience and training needs. It is, therefore, difficult to set apart
non-employees from employees;
The MoEHS organizational structure requires clearer definition and restructuring into more
manageable directorates and functional departments;
There is an urgent need to train MoEHS staff to carry out their daily management and
administrative functions more efficiently and effectively. Addressing motivational factors would be
critical in this regard;
Some MoEHS staff are unable to retire due to lack of pension provisions, thus inhibiting the
development of a young and skilled staff;
For reasons related to lack of communications and/or motivation, implementation of policies that
have been adopted to improve the ministrys ability to deliver services to beneficiariesespecially
in remote rural and nomadic communitiesis slow;
The MoEHSs inability to compensate staff and teachers is a serious impediment toward the delivery
of timely and effective services. This is especially so at the regional, district and school levels; and
Lack of work ethic and discipline at the ministerial level, weak capacity building, poor levels of
education amongst some staff, are just a few key concerns that can not be easily remedied without
significant capacity building.

3.2.7 SHORT AND LONG TERM CAPACITY BUILDING NEEDS
64. Short and long term capacity building needs of the MoEHS, Somaliland, include:
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Building the overall capacity of MoEHS especially in the management and human resources
development areas, many areas of which are already being supported by ICDSEA;
Develop professional procedures for the in-service training and the hiring of more teachers;
Provide resources and support for the building of new schools, and expand existing ones;
Improve and expand Special Needs Education;
Develop well-managed and supervised mobile and boarding school facilities for pastoralist groups;
Build and man a professional curriculum development center;
Improve language, science and IT teaching and learning in primary and secondary schools;
Improving access, quality, and gender equity in primary and secondary education;
Improve access to secondary and higher education through a more effective investment in
appropriate infrastructure;
Enhance the relevance and quality of education by developing improved curricula, better teaching
and quality assurance procedures at the school level;
Raise the standard of higher education and introduce an accreditation system, which establishes
minimum international standards;
Expand vocational training for youth and adults through both public and private sector
participation;
Initiate programs that target adult literacy and provide non-formal education and skills training for
out-of-school children, especially nomadic children; and,
Upgrade the MoEHSs management capacity by well-targeted in-service training and better
recruitment and promotion procedures.

65. Key longer-term training and capacity building priority is the provision of professional training for
a still to be recruited young staff. Also crucial, is the introduction of incentives to encourage this young
staff to remain in the Ministry. Particular efforts should be made to:

Identify and recruit from among the best Somaliland graduates, especially those willing to travel
abroad to obtain degrees, which will enable them to fill curriculum development functions. Whilst
training staff aboard would require significant funding, this is probably the only way one can bring
national counterparts quickly up to the international technical standards required. Beneficiaries
should be required to sign agreements that would guarantee that they return to the Ministry to
carry out their functions and not use their newly acquired degrees to leave the country for work
elsewhere; and,
Bond those selected for scholarships abroad to continue working for the MoEHS for at least 3-5
years upon their return.

66. Table 15 below provides an indicative summary of MoEHS stated capacity development priorities
and costs over the medium term. These almost exclusively focus on production and not provision
functions, but support for improving sector provision in policy, planning, budgeting and regulatory
oversight and standards enforcement is critical; and will need to be a main focus on external support.

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Table 15: Indicative Primary and Secondary Education Sector Budget and Implementation Matrix (NDP)

Goal To Improve relevance and quality of Education in Somaliland


To build up the capacity of MoEHS, at all levels.
To provide training and professional skills of teachers and administrators.
Strategic Objective

To review the curriculum of both primary and secondary education and build a Curriculum Development Center.
To construct new schools, extend and rehabilitate of the existing.
To construct two Teachers Training Institutes (one in the West and one in the East).
To improve and expend girls and womens education to the district level.
To improve and expand Special Need Education and education for pastoralist groups.
To construct additional offices at the central and regional and district levels of the MoEHS.
No Programs Objectives Project output/ Source of Funds Implementer Required Budget (US$ Millions)
outcomes 2012 2013 2014 2015 2016 Total
1 Capacity building for To provide training, Training provided, EU MoEHS 0.58 0.58 0.58 - - -
Ministry of Education furniture and office equipment,
and Higher Studies equipment and server furniture and server
(MoEHS). for IT development. supplied.
2 Construction of 800 classes to be Completion of the Donors and MoEHS 1.2 - - - - 1.73
additional classes constructed within the Construct of those Somaliland
within the existing existing schools, to classes. Government
schools is a top priority prepare learning space
and immediate need, for the great increase
to answer Free Primary of the enrolment,
Education policy expected in August
announced by the 2011.
Government.
3 Training the new 800 To Improve their Improved them Donors and MoEHS 0.2 0.2 0.2 0.2 0.2 1.2
teachers, we were academic and academically and Somaliland
expecting to join Professional skills. professionally. Government
teaching staff on
August 2011.
4 Construction of 100 To give learning space 100 New primary Donors and MoEHS 2.00 2.00 2.00 2.00 2.00 10.00
new primary schools. for incoming school schools Somaliland

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children. constructed. Government
5 Construction of 50 To give space to 50 new schools 1.00 1.00 1.00 1.00 1.00 5.00
secondary schools. students from primary constructed.
schools.
6 Construction of 10 To give vocational skills 10 vocational 0.8 0.8 0.8 0.8 0.8 4.00
technical schools. to secondary schools. schools.
7 Construction of 15 new To expand and improve 15 new family life Donors and MoEHS 0.06 0.06 0.06 0.06 0.06 0.30
family life education womens Education. education centers Somaliland
centers. constructed. Government
8 Construction of 5 new To improve and expand 5 new special need Donors and MoEHS 0.04 0.04 0.04 - - 0.12
centers for Special special need education. education centers Somaliland
Need Education. constructed. Government
9 Construction of 10 To build boarding 10 boarding Donors and MoEHS 0.5 0.5 0.5 0.5 0.5 2.50
boarding schools in schools in nomadic and intermediate and Somaliland
nomadic and remote remote coastal areas to secondary schools Government
coastal areas. allow children constructed in
complete their nomadic and
education and reduce remote coastal
dropouts. areas.
10 Construction of 12 To provide enough 12 administrative Donors and MoEHS 0.05 0.05 - - - 0.10
offices within the space for the offices constructed Somaliland
MoE/HE departments. within the MoE/HE. Government
11 Construction of 5 To strengthen the 15 REOs and DEOs Donors and MoEHS 0.08 0.08 0.080 0.08 0.08 0.40
Regional Education regions education built or refurbished. Somaliland
Offices (REOs.) Offices administration. Government
and 10 District
Education Offices
(DEOs) Offices.
12 Construction of To expand the National The National
Donors and MoEHS 0.05 0.05 - - - 0.10
curriculum Curriculum center. Curriculum center Somaliland
Development Center. expanded. Government
Total Primary and Secondary Education Development Budget 6.56 5.36 5.26 4.64 4.64 26.46
Source: NDP, 2012-2016

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3.2.8 KEY LEGAL AND NORMATIVE INSTRUMENTS AND THEIR SIGNIFICANCE FOR SERVICE DELIVERY
67. The Somali constitution, which was ratified and enacted in 2001, was comprehensive, visionary
and provided the basis for all the subsequent educational, gender, human rights and local government
legislation listed in this section of the report. Table 16 provides the relevant articles, which outline the
basis for much of the educational policies, which followed, culminating with the most recent
Comprehensive National Development Plan (2012-2016), which was shared with the team by our
respective ministries just as we arrived in Somaliland.

Box 1: District Capacity Assessment Sample Education Findings

The district capacity assessments conducted by JPLG provide a rich understanding of the current functional
assignments of the district administration offices in practice. This box merely provides a sense of current
administrative provision or production support roles, by district, which have different grade and fiscal potential,
which doubtless reflect their capacities to financed production and provision assignments:

Hargeisa District (Grade A District): According to the information given to the district team, the administration
has 323 active staff members in 13 departments; there is no department of Education. Although the Local Council
has full powers to perform the promotion and care of social welfare, such as education, they do not work on
basic education at all.

Odweyne District (Grade B District): The district administration has 19 active staff members in three
departments: Land, Finance and Administration, and Revenue, as well as directly under the Executive Secretary.
For education, they do not take a lead role in providing this, as the MoEHS carries it out. They do provide support
to the schools on an ad hoc basis with electricity and sanitation. The MoEHS is represented in Odweyne and
meets with the district authorities weekly, but they usually only communicate on security issues. The assessment
also states that there are some areas where there is no expertise within the district such as town planning,
engineering, health, and education; all of these are identified in the department breakdown below.

Berbera District (Grade A District): The district administration has 275 active staff members in 11 departments:
Transport, Land, Social Affairs, Audit, Finance and Administration, Revenue, Personnel, Health, Planning, ID, and
Central Archive as well as the Executive Secretary, thus making the total number of offices analyzed 12. The local
government is responsible for the promotion and care of the social welfare, such as education, health, water,
electricity, sanitation, etc. The social affairs department is responsible for define the responsibilities of the
municipality on education and ensure that there is the necessary expertise available. The District Authorities
contribute to the salaries for teachers for secondary schools and through an arrangement with a private
electricity company, provide free electricity to the district schools.

Burao District (Grade A District): The district administration has 203 active staff members in five departments:
Public Works, Social Affairs, Internal Audit, Finance and Administration, and Revenue, as well as directly under
the Executive Secretary, thus making the total number of offices analyzed six. The municipality provides land for
any education facilities needed, and also pays for three orphans to go to school on a regular basis and another
seven on an ad hoc basis. In addition 5% of the budget of the municipality goes to the university.

Sources: JPLG Supported District Capacity Assessments (2011)


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Table 16: Somaliland Legal/Normative Instruments and MoEHS Service Delivery

Legal Instrument Details Significance for Service Delivery


Somaliland The Somali constitution, which was ratified and Articles 15 and 16 are central tenets of Somalilands educational policy, and are reflected
Constitution, May 31st, enacted in 2001, was comprehensive, visionary and in most of the subsequent legislation, including the newly drafted, but still to be enacted
2001 provided the basis for all the subsequent educational, Somaliland National Education Act.
gender, human rights and local government legislation Article 36 provides the main justification for the need to place gender equity at center
listed in this section of the report stage of the current MoEHS restructuring exercise.
Articles 109-112 provide a clear and strong justification for decentralizing public services,
especially education, to the local government and community levels. However, little is said
in the Constitution about the locus of responsibility for financing public service delivery
and maintenance. In short, ample and sound legislation abounds, but if poor management,
low levels of financial support and inexperienced and untrained legislative capacity persist,
then these factors may be ultimately responsible for the poor implementation and
ineffective application of existing laws and policies.
Somaliland Regions and The Regions and Districts Law (Law No: 23 of 2002) Article 112 concerns the De-centralization of Administrative Powers and states that the
Districts Law (Law No: defines the six Regions, which are the Hargeisa administration of community services including education up to elementary/intermediate
23 of 2002) Region, the Togdheer Region, the Awdal region, the school level, shall be the responsibility of the regions and districts in so far as they are able
Sanaag Region, the Sool Region and the Sahil Region. to do so.
(Note CFWR: the six regions, which are practically Article 11 states that the ability to reach self-sufficiency shall be considered at the regional
coterminous with the six 1960 Principal Districts.) level (as set out in Article 112 of the Constitution) while Articles 12 and 13 covers Regional
Councils outlining their responsibilities and ability to set up sub-committees.
According to Article 32, the Local District Council shall have a number of sub-committees
including a Social Affairs Sub-committee responsible for health, water, cleansing,
education, sport, arts and literature.
The Somaliland The NEP clearly outlines gender-mainstreaming The education policy states that its aims to increase the recruitment of more female
National Education strategies for education, and indicates that one of its teachers strengthen representation of women in schools and appoint more women in
Plan (NEP), 2008-2011 main priorities is achieving equality in educational leadership positions. The MoEHS has outlined every crucial gender mainstreaming
access for all females and girls, within the national strategy, which will improve gender equity in education; however where this policy falls
education system. short is the implementation of these key points.
The MoEHS has not effectively implemented any of these gender-mainstreaming strategies
within the institution, and at present has not displayed concrete evidence that this will
take place in the short term. This may now become a key action point for MoEHS now that
the new Minister of Education has begun to carry out structural and managerial reforms.
However, this assessment posits that it may only be fully implemented if partner agencies
like UNICEF, ILO, UNDP, UNFPA and donors, continue to promote this as a priority
Draft Somaliland The Somaliland National Education Act was drafted in For a variety of difficult to comprehend political reasons, the Act does not seem to be
National Education Act 2009, and is still awaiting Parliamentary approval. The making the progress, which had been expected in the MoEHS. Perhaps, with the recent
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(SNEA) Somaliland National Education Act, which was change in leadership at the Ministry, the political bottlenecks that have impeded progress
drafted, reviewed and revised on numerous occasions under previous administrations may now be successfully overcome.
since its first inception in 2007, has still to be finalized
and approved by Parliament.
Somaliland Non- The Somaliland NGO Law, was enacted into Law on This act is of special importance to the MoEHS in that many important service delivery
Governmental February the 2, 2010, and clearly stipulates the need activities to both urban and rural marginalized communities are still NGO managed and
Organizations Law (Law to regulate non-government organizational activities, driven. Responsibility for registration and oversight of NGOs has been granted to the
No. 43/2010), signed both national and international, in line with other Ministry of Planning.
into law by Presidential provisions of the Somaliland Constitution.
decree No 82/112010)
The National Education The 2011 National Education Trust Fund Policy According to the policy: (i) the MoEHS and Higher Studies recognizes the need for funds to
Trust Fund Policy, 2011 contains
significant provision with regard to funding of be raised, kept and expended for the Education, in Somaliland; (ii) money raised for the
the education sector. Trust Fund by organizations, individuals from within the country and beyond shall be held
in a bank; (iii) such funds must be held in trust, and revenues and expenditures must be
accounted for in a manner consistent with recognized generally accepted accounting
practices and accounting laws of the country; (iv) these funds are usually held separately
from the Government budget accounts; (v) the Ministry is responsible for approving all
fund raising conducted in the name of the Primary Education of Somaliland and for
ensuring that trust funds are managed in a fashion consistent with the requirements of this
policy; (vi) specific procedures for acceptable methods for raising money in or for Primary
Education in Somaliland; for the safekeeping of money so raised, and for the recording all
transactions involving such money are described in the administrative procedures of this
policy. There is some doubt as to whether the recently drafted but yet to be promulgated
NET Law will be enough to raise the resources needed to fulfill the recent electoral
promise to provide free primary education for all Somalis, beginning in 2012.
The Medium Term Recently, the Fiscal Policy and Reform Management The framework identifies the education sector as one of the priority areas for GoS
Fiscal Framework for Unit, MoF has prepared a Medium Term Fiscal investment. Budgetary provisions have been made in the 2012 budget year and beyond to
Somaliland (MTFF), Framework (MTFF) for Somaliland 2010-2013. The allow for the provision of free primary education for all and to increase enrolments for
2010 MTFF makes an optimistic and impressive projection both boys and girls while also improving the quality of education. The budgetary provisions
of achieving revenue to GDP ratio of 13% by 2012. also provide for the hiring of 500 additional teachers each year and an additional
This translates into a cumulative absolute growth of investment portfolio of US$7 Million for the budget year 2012 over and above the current
an estimated 140% for the period 2010 to 2012. An spending.
array of revenue mobilization measures has been put
in place including widening the tax base and reigning
on telecommunication and other large companies that
have previously evaded tax among others. However,
questions abound on the governments ability to raise
the projected revenues.

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The Proposed New The main aim of the proposed revenue mobilization Somalilands average income from this source was only 2.6%, during the last decade. If
National Revenue plan is to improve tax administration and collection so public services like education health and water are to be adequately supported over the
Mobilization Plan, 2010 as to ultimately improve the ratio of tax revenue to long term, simplifying and lowering current tax rates and enforcing existing laws must
GDP from the current 5% to 13% in just three years by immediately address weaknesses in domestic indirect taxation and income taxation.
at the same time reducing tax rates. The revenue plan
assumes that tax rates be harmonized and reduced to
encourage compliance, and that the tax base be
broadened by limiting exemptions and enforcing
existing laws. The revenue administration is supposed
to achieve the stated objective for the first three years
of implementation.
The Somaliland The NDP addresses structural and institutional Since 1991, the country has taken great strides in the development of education. Yet
National Development challenges in order to achieve the public, social and literacy and primary enrolment rates are very low. The plan aims at expanding and raising
Plan (NDP) 2012-2016 economic transformations required to attain the the quality of education by: (i) building the institutional capacity of the Ministry, (ii)
(Revised and approved prosperity we aspire to. The NDP aims at creating an developing appropriate education policies, (iii) initiating teacher training programs, (iv)
in November, 2011) enabling environment that is conducive to expanding capacity by building more classrooms and schools, (v) building boarding schools
employment generation especially among the youth, in rural areas, (vi) increasing primary and secondary school enrolment rates, (vii) revising
human resource development, technological and upgrading school curriculum, (viii) establishing commission for higher education, (ix)
advancement, effective and efficient governance, Introducing accreditation and quality control systems for higher education, (x) expanding
increasing competitiveness and rising income levels. womens education, (xi) Increasing the number TVETs, and (xii) providing policy guidelines
This requires higher and sustained Government for privately-run TVET centers.
investment in infrastructure, institutional capacity
building, legal and policy reforms. The development
approach of this NDP intertwines economic growth,
social development and environmental sustainability.

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3.3 MOEHS ABILITY TO DELIVERY SERVICES EFFECTIVELY
3.3.1 SERVICE PROVISION AT REGIONAL, DISTRICT AND COMMUNITY LEVELS
68. The intensive assessment of Somalilands MoEHS service delivery systems lead to the following
observations with regards institutional capacities, with implications for the orderly decentralization of
both production and where logical, provision functions. Clearly, the functional assignments of the
existing system of education need to be better clearly defined. The 2008 policy framework matrix on
decentralization needs to be revisited given that strengthening local government and community council
systems in support of national education goals is critical to future gains.

Medium Term Fiscal Policy on Education: According to the draft MTFF, the Government of
Somaliland is committed to make the primary education free for all and the MoEHS had also
projected a need for additional 1,500 teachers that need to be accounted for in annual budget 2011
and costs, Sl. Sh. 12.5 billion, and additional 500 teachers per year in 2012 and 2013 respectively,
which will cost Sl. Sh. 6.3 billion, and Sl. Sh. 9.4 billion, respectively. Based on the demand of the
community and investment in human capital in achieving MDG goals and EFA targets, the
government plans to hire an additional 2500 teachers between 2011 and 2013, which will cost
around US$4.7 million for the three years. The number has been requested by the MoEHS as part
of their activities to achieving universal primary enrolment by 2020; and free primary education will
be provided by the Government of the day for our children starting from fiscal year 2011. The total
number of students exempted from payment of school fees and the amount of money involved
should be shown in the annual budget of 2011.
The need to replace the MoEHS ageing leadership corps: As noted above, the MoEHS is undergoing
a profound leadership and structural change from within and is not currently in a position to deal
with the many issues raised in this assessment, especially with respect to the delivery of quality
education services outside of Somalilands main urban centers. There is a need to bring new
professionals in to the Ministry, and in certain cases find retirement options for elderly staff. At the
center of this conundrum is the absence of a functioning pension scheme as an incentive to
encourage long service members of staff to retire. Options for voluntary separation packages could
be considered, and whilst costly these could pay for themselves in efficiency gains over the medium
term.
Sources of Funding: The lack of a reliable source of funding continues to be a major obstacle in
providing effective, quality educational services, and the provision of universal access to primary
education; through recent revenue mobilization gains have gone a long way to reduce the needs-
realty gap. Lack of resources is especially so with regard to less well-endowed poorer rural and
nomadic communities throughout Somaliland, which remain badly under-served by the current
system.
Regional Offices: At the Regional level, the challenge is to put into operation the many regional
offices which are now understaffed and under-resourced in order to insure an active and effective
administrative and supervisory presence closer to the locus of teaching and learning. The
recruitment and training of better qualified regional staff, the revitalization and construction of
better equipped regional offices, and the provision of adequate transport and operational budgets,
would help to improve the MoEHSs impact in all six regions. In addition, a closer working
relationship between REOs and the Regional and District Councils would better integrate MoEHS
functions and interests with regional and local community interests and needs. Within a framework
of limited resources make sure there is no duplication in role and clear functional assignments is
vital.
Primary Education Free for All: The recent decision to make primary education free for all children
risks undermining the Community Education Committees and Village Councils willingness to
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provide for their schools. Information gathered from informant interviews indicates that CECS were
also requested by the government to stop funding schools, and there is a fear that this move has
not been accompanied by increased availability of Government budget or resources to fill the gap.
Indeed, the CEC is not convinced that the Government of Somaliland (GoS) has the budget, or
resources, needed to support both teachers salaries and to provide the other services needed to
keep primary schools functioning. A preferred approach would not be to reduce existing CEC
financing but rather to develop a cost-sharing model between the MoEHS and CECs. This requires a
clear assessment of what level of financial support MoEHS can afford to provide on a sustainable
basis to all schools, and also whether an off-set arrangement is needed where schools are being
privately financed or managed by NGOs.
District Offices and Administration: As stated in the NDP, the role of district MoEHS structures and
District Councils and municipalities in education delivery have still to be carefully considered. The
NDP states that: decentralization has yet to take root within the socio-political context of
Somaliland. Although some programs, including the UN Joint Program on Local Governance and
Decentralized Service Delivery (JPLG), have invested a lot of effort and time in improving local
governance decentralization, they have not entirely succeeded due to structural constraints. A
cogently delineated system in which ministries, departments, and Government agencies can
collaborate with regional and district municipalities has yet to be devised.
Community: There is clearly a need to strengthen community based structures of delivery
including CECsgiven their critical role in mobilizing financial support, asserting bottom-up
accountability and expanding services into communities where the government has yet to delivery
services effectively. Critical here is identifying which functions are best suited at the community
level, and how these are coordinated with.

69. The NDP is clear as to which are the major challenges facing the sector as a whole, and the
following list of strategic priorities, provision and production functions need to be carefully
considered; given their implications for shaping functional assignments. It is stated that during the
plan period (2012-2016), the MoEHS will:

Upgrade policies, rules and legal framework;
Develop institutional capacity;
Initiate teacher training college programs;
Introduce a new school inspection program that is holistic, i.e. covers all aspects of school and
student achievements;
Design structured and continuous professional development courses for practicing teachers;
Provide incentives such as feeding centers to increase access and tackle retention problems;
Increase primary and secondary school enrolment rates;
Strengthen the human resource capacity of the TVET Department at MoEHS Headquarters;
Divide the TVET Department into two units - one for technical training and the other for vocational
teacher training, and provide adequate staff to both units;
Strengthen Government-owned TVET institutions and provide policy guidelines for privately run
TVET centers;
Strengthen the capacity of the NFE Department at both the MoEHS headquarters and the regional
level;
Integrate life skills and health education into formal and non-formal education curriculum;
Initiate gender-mainstreaming policies at all levels of education and training. This could include:
Girls education awareness campaign, advocacy, and legislation at Government level;
Creation of an enabling learning environment in schools;

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Professional development courses for practicing teachers relating to the promotion of the girls
education;
Affirmative action/scholarships for girls;
Recruitments of more female teachers and more training programs for those who are already
working;
Strengthen the oversight authority of the MoEHS over private schools, colleges, and universities
through the exercise of its accreditation powers; and,
Strengthen research and development.

70. Proposed institutional and policy reforms to be undertaken in the course of the NDPcritical to this
exerciseare proposed to include:
Transforming the management and planning of education;
Improving the quality and relevance of national curriculum;
Raising standards in primary and secondary education;
Striking the right balance between general and vocational education;
Regulating private education;
Establishing free primary education;
Strengthening non formal education;
Ensuring quality, relevance and access in tertiary education; and,
Achieving MDGs.

3.3.2 THE UN, INTERNATIONAL DONORS AND NGOS
71. The following United Nations agencies play a key role in providing support to the MoEHS in
Somaliland:

UNICEF: Teacher training, curriculum development, textbook production, EMIS training and
support, adult literacy and non-formal education, teaching methodology, institutional capacity
development, girls education, CEC training, provision of learning and teaching materials, school
rehabilitation and construction including WASH in schools, and IDP education;
UNOPS: Actively involved in some school construction, technical and vocational education center
development and some MoEHS facilities construction;
UNESCO: Advice and support in the writing and preparation of textbooks;
ILO: Training and capacity building at the local government level;
UNHCR: Involved in providing social and educational services to Internally Displaced Persons (IDPs)
and other groups of refugees transiting through Somaliland on the way to refugee camps in Kenya
and Ethiopia; and,
UN-HABITAT: Contributed toward school reconstruction and the provision of water services in some
areas.

72. The main multilateral and bilateral donors providing financial and technical support to education
in Somaliland include USAID the EC, NORAD-Norway, SIDA-Sweden, DFID-UK, DANIDA-Denmark, and
CIDA-Canada, the Arab Emirates and Saudi Arabia. The majority of aid received from donors is still
channeled through international and national non-government entities by way of well-defined short-
term projects or programs. Efforts to increase on-budget support over the short-term are unlikely to be
effective but the ongoing assessment of possible trust fund arrangements by DANIDA could provide a
significant tool to aligning external support into a less project driven approach.

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73. The leading NGOs, which are a critical part of the service delivery model, include: International:
The NRC, CARE International, Save the Children International, AET, ADRA, Mercy Corps, CFBT-UK, Islamic
Relief, Handicap International, OXFAM, Concern Worldwide, PENHA, and others. National: CLHE,
HAVAYOCO, Somalia Youth Federation Network, Child Aid Somalia, Mudan Youth Umbrella.

3.3.3 CURRENT CAPACITY TO DELIVER THE SERVICES REQUIRED
74. There are a number of major obstacles preventing substantial reform and change within the
MoEHS in Somaliland, in relation to decentralization, including:

Ongoing functional restructuring of new departments means that many of the core structures
proposed to play a key role in delivery have yet to be established;
Fiscal constraints limit service delivery coverage, expansion and quality;
Salaries and employee motivation exacerbated by disciplinary and productivity issues;
Training, especially in the use of computers, and the application of effective administrative and
modern management practices and leadership skills;
Transport and per diems acting as a disincentive for supervisionmonitoring and assessment of
progress in primary and secondary schools;
Lack of office space and ICT equipment to fulfill basic functions;
Systems for monitoring and evaluating the impact of MoEHS policy changes on the learning and
teaching environments, in schools, colleges and universities; and,
Implementation and oversight of policies and laws pertinent to the implementation of quality
educational services for all Somaliland citizens, but especially those pertaining to women, minorities
and the pastoralist majority.

3.3.4 FINANCIAL AND INSTITUTIONAL GAPS, HINDERING SERVICE DELIVERY
75. An assessment of the MoEHS financial management procedures recently carried out through
ICDSEA revealed a number of logical targets for PFM reforms, many of which impact the limits of
decentralization. Undertaking PFM reforms (to meet allocative and operational efficiency and fiscal
sustainability objectives) for the sector will take time, and considerable capital and human resources. In
particular moving towards an automated Financial Management Information System (FMIS) will costs
millions of dollars, but if structured around a policy based sector budget tracking progress in execution
will be a major gain to the sector. Other issues raised through ICDSEA assessments include:

The Ministry is not using a consolidated, or integrated, financial information tracking system;
financial data is still stored in manual form. It is not possible to rapidly establish the MoEHSs total
payments and revenues, or track stored assets. The use of manual systems may be correct, but
these systems are not fully integrated, and operate as stand-alone manual documents;
The Ministry does not maintain a general ledger accounting system. A single entry accounting
system is installed that is not in conformity with a general ledger system, which uses a double-entry
system. The lack of a general ledger system means that any information necessary for management
of the MoEHS must be extracted from various sub-systems. At present, the MoEHS prepares no
financial statements and this has led the Accountant General to set up a parallel vote book to assist
in the preparation of the financial statements;
There is a lack of documented financial management and internal control guidelines;
The present internal control environment has significant weaknesses and is incapable of achieving
comprehensiveness, validity, and accurate assessments and valuations; and,
The Ministry lacks an Internal Audit function. The role of Internal Audit is to monitor the systems
that financial functions manage. Modern thinking posits that an internal audit must be independent
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of the finance component with a direct reporting link to the Director General, thus preserving
accountability and neutrality.
3.3.5 GENDER & HUMAN RIGHTS
76. Gender, now plays an increasingly critical role in defining the MoEHS recruitment and promotion
policies. A functioning GU has been established with oversight for gender issues throughout the MoEHS,
and beyond. The Units role is to address gender equity and equality issues within Somalilands
education institutions. In an on-going gender assessment, attempts will be made to identify gender
strengths, weaknesses, opportunities and threats and recommend optimal ways for improving the
effectiveness of gender awareness activities at both the centralized and decentralized levels within the
ministry. The GUs work has begun to focus on the following priorities:

To clarify the current mandate and functions of the GU;
To identify Gender Mainstreaming strategies in the current national education plan, and other
policy instruments;
To strengthen the current staff capacity of the GU, to meet the objectives of the national education
plan;
To determine the facilities and equipment needed for the GU;
To identify previous training received by the Unit staff over the past three years; and,
To identify the technical gaps, and resource needs of the GU.

77. The issue of Human Rights was pivotal in the drafting of the Somaliland Constitution. Policy
documents, parliamentary legislation and other documents reviewed. However, work currently being
carried out by the curriculum development unit at the Ministry, gives priority to the inclusion of human
rights issues in the new curriculum, and places a stronger emphasis on life skills learning, especially at
the primary level.

78. The issue of insecurity was seldom mentioned in the context of discussions, which took place in any
of the five ministries visited. Where the topic did arise, it was raised indirectly during the Teams first
visit to the Ministry of the Interior and assurance was provided that the security situation in Somaliland
was under control, however the team followed UN security protocols and travel with an armed police
escort when visiting locations outside of Hargeisa.

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Table 17: Definition of Functional Assignment by Sub-Function: Somaliland Ministry of Education and Higher Studies

Future
Present Implementation Modality Future Implementation Modality Implementation
Timeframe
Justification
De- De-
1 2-5 10
Sub-sector Functions Central concentrat Delegated Devolved Central concentr Delegated Devolved
yr yrs yrs
ed ated
Regional Give Give more Develop X Cant proceed without first
oversight & priority to responsibility to procedure to completing the development of a
Implementation Finalizing both the REOs and involve standardized national primary
with assistance Curricula DEOs for teachers & curriculum. The CD process should
from subject for the monitoring and heads in the ideally involve communities and LGs
Design & specialists at primary supervising implementati through the participation of CECS
center level to the primary education on of and DCs.
Central quality services. curriculum
Curriculum Develop of a coherent MoEHS. Hold both levels changes at
Development national curriculum. more accountable the school
to Lags through level. Make

DCs. this process
more
transparent
by involving
the LGs
through their
DCs.
Complete the Strengthen Strengthen Re-build Rebuild DEO X All levels of education in SL have still

development of Regional supervision REO capacity and to develop and implement national
national standards. oversight by to better capacity to train standards. Quality assurance is a
training REO coordinate provide common missing element.
Primary
Education Standards staff & better
Implement profession District
setting Officer and
standards al Regional
oversight Head
Teachers to
monitor
standards
Reform the Rebuild capacity Carry out Strengthen Give District X
inspectorate and to allow key Regional Officers and
retrain staff to better Regional staff to Coordinatio Inspectora School
carry out decentralized better carry out n & te and link inspectors There is an urgent need to reform
functions oversight & oversight accountabi the training and restructure the whole
implementation functions lity of and support inspectorate and supervisory service
at the regional more decentraliz required to of the MoEHS in line with the JPLG
Inspection requirements to transfer education
levels professiona ed carry out
lly. functions their service delivery to the LG level.
to the functions.
MoEHSs
reformed
oversight
units.

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Table 17: Definition of Functional Assignment by Sub-Function: Somaliland Ministry of Education and Higher Studies

Setting & Marking of Oversight Give joint X Need to improve and consolidate
national exams are responsibilities responsibility to existing gains & train cadre of
already carried out at need to be the REOs and mentors and markers
the MoEHS level delegated to the DEOs for
REOs once these organizing and
are rebuilt and managing the
re-activated. examination
process at the
Examinations. school level. Re-
train staff where
necessary.


Use the work already Work with REOs Finalize X There is an urgent need to
carried out by AET as to insure new national harmonize quality and content of
the basis for curriculum is guidelines secondary teaching in all schools in
Secondary Curriculum completing the applied and and train line with the proposed national sec.
national curriculum. compliant with teachers to Curriculum
Education Development the new implement
standards. them with
TA from
the REOs
RE-train REOs Oversee X The implementation on one
and DEOs in the and secondary curriculum with agreed
application of supervise standards should help to raise the
the national the level of secondary teaching and
Standards
standards implement learning nationally
Insure that sec. ation of
Setting curriculum conforms standards
in all public
with national standards
at all levels of and private
implementation. schools
Re-train the existing Provide Oversee X There is an urgent need to rebuild
cadre of inspection and inspectors with the quality and strengthen the central, regional
recruit younger better- computers, and and district inspectorate, and to
qualified staff to office facilities, frequency make them more accountable to
revitalize the service. transport and of school the LGs at the local level.
per-diems to inspection
carry out their services by
Inspection
functions more increasing
effectively at the
the involvemen
decentralized t of
level. Regional
and District

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Table 17: Definition of Functional Assignment by Sub-Function: Somaliland Ministry of Education and Higher Studies

Councils in
this
process.
There is a need to The X School exams at this level are being
strengthen the strengtheni implemented, set and marked.
monitoring and ng of the However, better trained exam
implementation of the national monitors and mentors would
new examination exam improve the quality of this service.
guidelines commissio
n though a
better
Examinations
trained
cadre of
exam
mentors
and
markers is
a needed
first step.
There is a need to A national ECE A decision
develop a national ECE commission still needs to
Curriculum meeting should be be taken at
international formed to guide The the national X There is a need is to establish some
standards. and advise this national level national ECE centers or schools on a
process. curriculum whether ECE pilot basis in order to develop
and national standards and content.
should be a
guidelines private Working with any existing private
should sector sector ECE or Kindergarten centers
Curriculum incorporate service, or if is advised to learn from their
a clear set this should experiences.
of
Development be a publicly
standards provided
and service. The

requireme decision will
nts for determine
implement what the
ation. government
s role will
Early
ultimately
Childhood
be.
Education
Establish national Implement Insure Standards should be incorporated
standards and develop standards via standards into the new curriculum from the
Standard guidelines during ECE inspectors are start and supervised via REOs and
curriculum recruited and implement DEOs held accountable through
development and trained for work ed through Regional and District Councils.
Setting testing phases. out of the REOs Regional Especially if the ECE services remain
X
and DEOs and District in the private sector.
Councils.
A new cadre of ECE inspectors will
need to be recruited and trained as
Inspection a priority, especially if the ECE
Recruit and train a Encourage Select and

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Table 17: Definition of Functional Assignment by Sub-Function: Somaliland Ministry of Education and Higher Studies

cadre of ECE inspectors frequent school train cadre service remains in the private
to lead the oversight inspections and of ECE sector. Inspectors will be expected
procedures for ECE mentoring while inspectors to work closely with Regional
from the MoEHS HQs. also providing and Councils (RCs) and DCs at the LG
Inspection TA to teachers supervisors level.
and Head
Teachers.

X
Develop M&E Apply M&E Establish Monitoring and evaluation of ECE
protocols for ECE through ECE services if they remain in the private

inspectors with centers/ domain, will be channeled through
the help of ECE schools in RCs And DCs to give the LGs more
Teachers and pupils. school heads, pilot areas ownership of these essentially local

RCs and DCs and use services.
these to
develop a
national X
Monitoring & curriculum

and

Evaluating national
standards.


Establish and Implement Delegate The HE directorate has only recently
implement a National standards supervision been set up so after an needs
HE Council/ through and assessment there will be a need to
Commission and HEC oversight establish a HEC to work on
implement agreed functions to standards
Standards standards universities X
Setting through the
HEC, which
will
represent all
registered HE

institutions.
Create an inspectorate Devolve all The HE directorate in the MoEHS
for HE & work with HE me will have a key role in oversight for
HEC to maintain functions HE quality and standards but should
and work with HEC to insure
responsibili implementation at the local and
Supervision High quality & national ties to HEC institutional levels. HEC will have to
standards standing evolve a modus operandi for

committee working at the LG level.
s.

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Table 17: Definition of Functional Assignment by Sub-Function: Somaliland Ministry of Education and Higher Studies

Devolve all The HE directorate in the MoEHS


HE me will have a key role in oversight for
functions HE quality and standards but should
Higher and X work with HEC to insure
Education Supervision responsibili implementation at the local and
ties to HEC institutional levels. HEC will have to
standing evolve a modus operandi for
committee working at the LG level.
s.
Work with HEC to Establish With the HECs lead the MoEHS
insure the monitoring HE directorate will have final oversight
and implementation of committee for maintaining high HE standards
fair and high quality in HEC to
Examinations university exams oversee HE
exams

X
Decide if DVET should Implement If DVETs The many different private sector
remain in private curriculum remain TVET curricula will need to be
sector hands and with help from privately run harmonized to insure quality and
Develop a common college local services relevance to national manpower
Curriculum national curriculum instruction, a they will needs. Harmonization will be an
new need to be MoEHS function but
Development inspectorate held implementation and supervision
service and the accountable would devolve to the RC and DC
RCs and DCs to the LG X levels.
level through
RCs and DCs.
Set national standards Oversee Standards` will be defined via
during the DVET standard external assistance and using
harmonization process. implementatio international criteria. They will be
TVET n through monitored via the inspectorate
Standard newly working with the LGs.
established X
inspectorate
Setting
working in
close
coordination
with the LGs
Develop a flexible Maintain joint Certification still needs to move
certification system, oversight of away from academic exams to skills
that can be applied testing through specific aptitude testing that will
Examinations &
equitably across MoEHS with need to be monitored from the
certification
different DVET services colleges, the MoEHS in close coordination with
inspectorate X LGs.
and LGs.
Design a national Produce CD The current NFE service is
curriculum by and fragmented and lacks accountability
Curriculum harmonizing the many guidelines because it is mainly financed and
Development NGO curricula into one which will X delivered by NGOs free of MoEHS

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Table 17: Definition of Functional Assignment by Sub-Function: Somaliland Ministry of Education and Higher Studies

national curriculum. be supervision. Here LGs can play a role


Quranic education implement through their DCs . This would make
which in SL is under the ed with NFE local services more responsive
purview of the Ministry oversight X to local needs, provided they apply
Curriculum
of Religion and from ROEs, national standards.
Development
Donation will need to DEOS
be brought under the through LG
MoEHSs national RCs and
reform umbrella DCs.
Set standards based on Oversee The development of a national
international criteria the curriculum will incorporate clearly
and a unified national application defined standards and insure that
curriculum. Quranic of new NGOs and local NFE service
schools are still poorly standards providers adhere to national
Standard supervised and have a and standards. Quranic schools have

variety of curricula and curriculum tended to follow a Saudi Arabian
Setting different standards. through curriculum which is a condition for
DEOs with sponsorship.
oversight
from LGs
NFE & X
through
DCs.
Quranic Train and establish a Train cadre NFE lack an adequate number of
cadre of inspectors for of NFE trained NFE supervisors Those
NFE and Quranic inspectors performing this function are
Education Supervision & education. to work voluntary and do not receive
with DEOs compensation. Under the new
Oversight. under the provision NFE services would be
supervision accountable at the LG level to the
of DCs. DCs and supervised by the DEOs.
X
Link NFE accreditation Monitor NFE Certification needs to be
to entry into formal and adjust brought in line with the new
system at either the NFE standards that are being
primary or secondary examinatio incorporated into the primary and
levels. This would be ns in line secondary curricula. Supervision of
harmonized with the with the this process will be carried out by

implementation of the national LGs with TA offered by the REOs and
new national NFE changes DEOs.
Examination & curriculum. being
certification carried out
in formal

education
curricula
and X
standards

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3.4 PROPOSED UNBUNDLING APPROACH
79. The proposed approach to unbundling the sector must build on the current reform framework
being pioneered by ICDSEA, the NDP and commitment to improving decentralized delivery in line with
government policy. Given that Law No. 23/2002 was not explicit in allocating functional assignments
within services between the sectors and local government, with both the sector and local government
given full authority with regards education service delivery, the main focus of unbundling is to remove
uncertainty and to set assignments where they should properly be located. In the case of education
service delivery in Somaliland, it must also address why the MoE Decentralization Policy Framework
proposed in 2008 was not executed. As a result, and based on the analysis provided above, the
assessment team proposes the following approach to unbundling the education sector in Somaliland:

To develop functional assignments based on the proposednot existingorganizational structure
of the MoE, given that the new structure does not reflect a change in education per se but rather
just a better functional structure. Moreover, given that Law 23/2002 was not explicit on the
relationship between local government and the REO and DEO staff, and given the reality that not all
REOs, and DEOs are operation and staffed, functional assignments may need to be adapted on a
district-by-district basis until fiscal and staffing imbalances are addressed.

District level assignments need to differentiate between which Grade district is the unit of delivery,
with Grade A and B districts far more capable of financing education assignments than Grade C and
Grade D districts. The basis of the district grading however needs to be revisited and demographic
information would be required to develop administrative units that are viable administrative
entities.

Significant increases in sector financing by government lends weight to arguments to strengthen
both REOs and DEOs in particular, whilst also clarifying the exact roles and functions of District
Administration and the CECs in delivery (which are proposed below);

Given the strong presence of NGOs and private sector delivery mechanisms, a key focus must be on
strengthening sector regulations and state education curricula, as well as the regulatory compliance
functions;

Given the requirement to continue harnessing sector resources, district administration and the CECs
will need to continue playing a role in mobilizing financial resources to compliment new financing
from the center;

Decentralizing the gender oversight and compliance function to the district level in relation to CECs
is of critical importance;

Strong integration with both health and WASH activities is warranted to guarantee that schools
have access to the core services. Schools must therefore also been seen as a focal unit of health and
hygiene;

Formalizing an approach to schools based management (including school management guidelines
for Boards, PTAs etc) would considerably strengthen conformity to education standards and
processes; and,

All proposed assignments must have recourse to fiscal realities, with external support for new
structures envisaged within a MTEF. Piloting sector specific grants to the DCs from donor trust
funds could be explored.

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3.5 REVIEW OF FUNCTIONAL ASSIGNMENTS
80. The analysis provided in Table 17 above, which was carefully discussed across the MoEHS, and in
the field, highlights the complexity of deconcentrating functions from the center when the central
Ministry, and REO and DEO offices are substantially under-staffed or not staffed at all. However, based
on the results of the field assessment and the unbundling approach outlined out lined under 3.4 above,
the following functional assignments should be provided by REOs and DEOs; where they exist. A survey
of sub-national staff and their minimum needs also needs to be undertaken to ensure that the minimum
REO and DEO structure is in place to perform existing mandates, as shown below:

The REOs, based on the results of fieldwork, currently have the following functional assignments:
Representing the MoEHS in all relevant regional decision making meetings;
Member of their respective Regional Governor's Council and other relevant Regional
Committees;
Supervision and oversight of all educational activities in their respective regions;
Support the planning of education needs at the regional level;
Manage the distribution of public funds and stipends and oversight of funds collected and used
by CECs/ SECs;
Supervising MoEHS programs and projects with assistance from their staff and the DEOs;
Ensuring that national examinations are properly organized and conducted in schools and
centers; Coordinating examination supervision with the National Education Council Directors,
in their respective MoEHSs;
Accountable for the delivery of educational services, assisted by Regional Inspectors/support
staff;
Responsible for mediating conflicts, and dealing with issues related to discipline within their
own jurisdiction, including down to the school level, if necessary; and,
Representing the Minister unless the issue is political, in which case it is passed to the MoEHS.

The DEOs, based on the results of fieldwork, currently have the following functional assignments:
Responsible for the functioning of schools, teachers and head teachers under their purview;
Representing the REO at the District Education Committee and District Council levels;
Coordinating with the Social Affairs Sub-Committee to support district education needs
planning;
Providing technical and other support to schools in their districts, working closely with Head
Teachers;
Mediating between teachers and the community and work in close collaboration with HTs to
make sure that SECs are up and functioning;
Assisting the REO in the distribution of stipends (if requested by the REO to do so) and other
MoEHS payments to teachers and HTs at the school level;
They are the MoEHSs and REOs first line of support in dealing with school level discipline and
other problems;
Representing REO and MoEHS interests at the District Council level, reporting back to the REO
district level education needs and problems;
Responsible for disseminating information to the district level of changes in rules and other
changes in practices pertaining to the delivery of educational services at the local level; and,
Keeping REOs well informed about the educational situation in their own districts.

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81. Further, given that the District Councils, and where established their Social Affairs Sub-Committees
have a formal mandate for education production and provision, based on discussion in the field, we
propose Law 23/2002 be re-written to include the following minimum assignments for DC. To make
this work however, horizontal fiscal imbalances will need to be overcome and sector categorical grants
could be provided to the DCs to meet such provision requirements.

Revenue and expenditure assignments to finance education investments in coordination with
MoEHS policy/planning guidelines;
Participated in Bottom-Up District Education Planning;
Approving the District Education Plans and Annual Budget Estimates;
Supports the DEO and REOs in bottom-up planning district education needs;
Oversight of school construction standards, location and combined services based on central
guidelines and standards; and,
Interacts and motivates communities.

ADJUSTMENTS TO PROVISION AND PRODUCTION FUNCTIONS
82. Law No. 23/2002 needs to be revised to include a proposed set of functional assignments that
clarifies the roles of CECs and District and regional offices in delivery for the basic and essential
service sectors. Consideration also needs to be given to strengthening the existing Social Affairs
Departments in Local Government to be financed through intra-governmental transfers, forming the
basis of a common services agreement. The current law legislates the establishment of autonomous
local government but implies that District Councils and their administration maintain a monopoly on
education production and provision roles. Clearly, and orderly separation of functional assignments
between the sector Ministry and local government is needed and, where they have common functions,
coordination mandates need to be clearly defined.

83. As stated elsewhere in the document, and made clear within the NDP, the new NGO Act needs to
be implemented, with a strong focus on regional and district level oversight. The NGO Act was passed
by the Parliament (Law No. 43/2010) and signed into a Presidential decree No 82/112010 in November
2010. The Act has been established to: (i) encourage NGOs to fully and appropriately participate in the
development of the country (ii) ensure that NGOs are legally constituted (iii) regulate the activities of
NGOs so that they are aligned with the countrys national priorities and development plan (iv) build the
capacity of community based organizations; and (v) ensure accountability and transparency. Clarity with
regards how the new Act applies to the education sector needs to be further developed, and applied. It
also needs to be noted that concerns have been raised about the new NGO Act, which will have to be
revised to clarify regional and district NGO oversight and coordination mandates.

84. Similarly, given the need to promote evidence-based policy, there is an urgent need to strengthen
the management of information within the sector, ideally through the formulation of a national
Statistics Act and Statistical Master Plan. Clearly, in addition to MDG related reporting, and to any
medium term results framework for the education sector, there is a need to focus on the informational
needs of the sector, including FMIS and Human Resources Management Information System (HRMIS)
systems.

3.6 SERVICE DELIVERY MODEL DEVELOPMENT
85. Somaliland, like most other education sectors is developed around pre-school, primary, secondary
and tertiary education, although the education budget is not established around such a framework.
However, and of great significance to the sector, given that the majority of production services are by
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default highly decentralized, poorly coordinated and fragmented, there is a need for Government,
Donors and the Private Sector to agree on a number of service delivery models where standards and
practices can be set, to increase conformity to preferred sector governance standards. The three main
actors for all service delivery models are (i) citizens (ii) the state and (iii) service providers, all of whom
can be supported by donors. Any model must deliver sector governance standards, encourage
accountability, transparency and value for money to increase coverage.

86. Given that the state (MoEHS) is unable to finance large elements of the educational system, it is
likely that most students are not enrolled in public schools operated by civil servants. Rather, schools
are community, NGO or private sector owned, meaning that a service delivery model must be focused
on provision and not production functions until fiscal resources allow production to be financed.

87. Whilst this work was not intended to identify service delivery models, given the high degree of
fragmentation, it seems desirable to promote a SBM system as the core model for primary and
secondary education, around which school governance guidelines are set and enforced. Such an
approach formalized decentralized delivery around a common set of standards and practices that can be
enforced by REO, DEO and EC Social Affairs Committee staff. Donors too, who are often financing NGOs,
will be able to build SBM standards into all their contracts to enforce standards, and discussion with the
Diaspora for private schools could also be discussed in this light. For tertiary education, private sector
service delivery models appear the most logical with government setting broad curricula and
examination standards and procedures only.

3.7 EDUCATION SECTOR PROPOSED NEXT STEPS
88. There are numerous priorities that fall out of this study that will need to be undertaken within the
coming 2-5 years, critical to strengthening the education sector. However, in terms of concrete next
steps it is suggested that the following activities are considered by government and donors:

The overall policy and strategy framework is well developed, and guidelines exist in support of
school management, although the adoption of a formal approach to School Based Management
would allow a cohesive framework for service delivery to emerge around which pilot clusters could
be supported to build a common approach across what remains a rather fragmented system;

Following the announcement by the MoE to provide free primary education for all, which reflects
improved sector resourcing, there still remains uncertainty regarding how to manage the interface
between the sector, LGs and community financing and a consolidated budgeting approach appears
justified. General functional assignments are proposed for Regional Education Officers (REOs),
District Education Officers (DEOs) and Local Governments, to form the basis for national
consultation;

The need for Regional Education Offices (REOs), District Education Offices (DEOs) and District
Councils (DCs) to hold consultative discussions, and also for assignments to be made explicit in the
education law and a revised Law 23/2002 is clear. Moreover, given current resource limitations, it
would be useful to discuss the possible co-location of DEO and district administration support to
the sector, to be placed within the Social Affairs Department perhaps as a common services
department;

While sector costing is urgently required, such an approach must be mapped to the national budget
formulation process, and ideally the ongoing costing exercise would be undertaken as a top-down
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medium term fiscal framework and bottom-up sector expenditure framework, covering wage, non-
wage, operations and maintenance and capital investment costs;

There is a need to urgently identify the different Service Delivery Models (SDM) for primary and
secondary education, covering urban, rural settings and pastoral settings. For School Based
Management (SBM), by way of an example, such an approach brings existing legislation, regulations
and management practices into a national standard and guideline, around which schools emerge as
the primary unit of delivery. Such an approach needs to be developed, piloted through clusters and
then scale up to maximize cohesion around a common set of educational standards;

The financial contributions of local governments need to be formalized as a budget percentage
rule (perhaps around 5%), around which functional assignments would be developed reflective of
the resources available for different districts;

There is a need to remove the horizontal fiscal imbalances whilst perhaps considering options for
sector categorical grants to the DCs. Further work would be required to develop such a pilot and
this should be done in support of consolidated local government budgeting;

Undertake a full sector costing (on budget and off-budget flows) to determine current education
sector financing with a view to identifying how best to de-projectize the sector;

Discuss the proposed functional assignments for REO, DEO and DCs with government, strengthen
as required, and build these into the Education Law and revised Law 23/2002; and,

Agree the preferred SBM (school government/management, PTA, head teacher, curricula, pay,
services, exam procedures etc.) model for primary and secondary education, making sure that all
new schools adopt these practices and existing schools are brought in line through cluster financing
mechanisms.


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- 4
Health Sector
Assessment Findings

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QUICK SUMMARY OF HEALTH SECTOR FINDINGS

1. The Health sector in Somaliland has made significant progress on the policy and strategy front,
and the draft 2011 National Health Policy, which is clear in its commitment to decentralization,
once enacted will provide further support for a more cohesive system. The law is not however
clear on the role of District Councils, and this needs to be addressed. However, with the sector
dominated by non-state actors including the private sector, NGOs and external donors, MoH's
role will need to remain heavily focused on provision and not production roles, with the aim of
increasing compliance to mandatory policy and practices.

2. There are currently four service delivery models: (i) the vertical MoH model with limited
provision and production capabilities (ii) the four-tier EPHS system which provides primary care
as part of the wider system (iii) the District Council assignments which are poorly defined in Law
23/2002; and (iv) private sector and non governmental organization provision. Given that
government has limited to no control over the majority of financing (which is either private or
contracted by donors directly), with most services de facto contracted out, a key focus of future
investments must be on improving compliance around a set of agreed health care standards.

3. Health care services are therefore highly decentralized by default and not design, and existing
service delivery models can best be characterized by a strong (largely un-regulated) private
sector, with substantial NGO and donor financing all of which is off-budget. The coordination of
MoH and the District Councils provision and production functions remain poorly developed, and
general functional assignments are outlined in this section around which formal discussion
between the sector Ministry and local governments forge create greater clarity.

4. The newly established National Development Plan (NDP) advocates substantial increases in
public provision, placing health as the lead sector. Budgetary allocations however will need to
be proposed by the executive and agreed to by parliament and strengthening sector financing
requires the entire sector (not just the EPHS) to be costed, as the basis for justifying increased
sector spending.

5. The EPHSwhilst still to be rolled outlays the foundation for the primary health systems and
desperately needs to be rolled out into new regions. For this to happen the four layer referral
system, which is highly decentralized by design, and policy, planning, sector costing and
regulatory oversight functions need to be established, and staffed;

6. In terms of the District Councils, which are graded A to D reflective of population levels and
other variables, the roles of the DC in health care are outlined in Law 23/2002, but not generally
provided in practice. Most DC Social Affairs Departments have between 3-6 staff and although a
Health Department has been established in Hargeisa, other districts do not have such capacities;

7. The investment focus for the sector must be on removing financing constraints, costing the
sector, rolling out the EPHS and building central policy, planning, budgeting and regulatory
oversight and enforcement capacities. Secondary and tertiary health care needs are also
essential, as are meeting health needs in pastoral areas, where adaptive service delivery models
will need to be developed;

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8. With such limited public sector financing for the sector, and with the EPHS providing a strong
framework for primary delivery, though even this needs to be rolled out into new regions, the
key role of the MoH should be in directing policy, undertaking sector planning (which involves
regional and district structures), in budgeting and regulatory oversight and enforcement.
Despite significant gains and Governments commitment to place health at the top of the NDS
priority list, a number of other high priority steps need to be undertaken. These include:

Costing the entire sector (on and off-budget flows) including the core wage and non-
wage recurrent, O&M and capital costs, outside of those already costed by the EPHS,
and identify sources of financing;

Establish and cost a service delivery baseline and set budget ceilings for 3-5 years baaed
on a medium term expenditure framework;

Agree with Government and all key donors the preferred Service Delivery Models for
health care delivery, given the central role on non-state providers, and then focus on
building this system, based around the EPHS;

Move towards a functional (program based) budget for the Health Sector around which
donors can provide and coordinate support;

Establish a set of standards and accreditation framework for the private sector
(pharmacies) as well as best institutional options for regulatory enforcement;

Consider piloting sector categorical grants for health care provision to support existing
intra-governmental fiscal transfers; and,

Through national consultation workshops between the central Ministry and Local
Government agree local government mandates for the sector, by different district
grades, to be incorporated into revised Law 23/2002.



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4. HEALTH SECTOR ASSESSMENT FINDINGS

4.1 INTRODUCTION
89. This section provides evidence through an on-the-ground assessment in support of the unbundling
of the health sector, and is the product of 21 days at the center, regional, district and local level
alongside interviews with over 42 key informants representing both the public (MoH, MoF, UNICEF,
EU, UNESCO, UNP) and private service delivery stream, as well as key international stakeholders. The
analysis and proposed approach builds on the existing system, the draft 2011 National Health Policy
which is clear in its commitment to decentralization, the 2012-2016 NDP and Somaliland EPHS, draft
Human Resource Policy and Health Professionals Commission Law (Law No. 19/2001) among other key
documents including legislation on decentralization and local government.

90. The health sector is one of the core services provided by government, NGOs and the private sector,
and has strong connectivity with WASH and education sectors. Strong investmentfrom a low base
by government and the international community has had a significant impact on core health indicators.
According to the NDP, the child mortality rate in Somalilandwhich was 275 per 1,000 in 1990 dropped
to 188 in 1999 and then to 166 in 2006measured against global standards shows a very steep
decrease. These figures could not be verified. These remarkable achievements could be attributed to
many factors, including an improved nutrition status and heightened public awareness of the benefits of
child vaccination. Infant mortality rate, which is the number of deaths per 1000 cohort of live born babies
before the first birthday, also decreased from 152 in 1990 to 113 in 1999 and down to 73 in 2006 in
Somaliland. If this trend continuous, then the MDG target for 2015 is most likely to be achieved. This
assessment, within a context of improving health provision and standards, seeks to identify the
preferred service delivery model and to identify functional assignments across the multi-stakeholder
framework.10 Such a system will also need to be built around the WHO Health System Framework,
shown in Figure 13 below. This framework outlines the system building block and the overall goals and
outcomes of health service delivery; public and private.

Figure 13: The WHO Health System Framework














10
A recent paper on The Impact of Decentralization on Health Care Programs in Less Developed Countries states that the
basic argument for decentralization in the health care sector is that local organizations are in the best position to respond to
users needs. The logic is that by making the delivery of health services part of local administrators responsibilities, they are
allowed greater flexibility, efficiency, and accountability in resource use. (Wheeler, 2011)

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91. The degree with which the orderly unbundling of health service assignments can be driven by the
concept of decentralization must be heavily informed by an understanding of local government
capacities and fiscal resources. On one side there are risks of pushing for decentralized delivery when
the minimum capacities of the delivery systems are still under-developed. On the other side, given that
the public system will take many years to provide comprehensive primary, secondary and tertiary care,
there are strong arguments for decentralizing certain assignments to strengthen bottom-up oversight
and coordination capacities to the point where services are actually delivered. The draft 2011 National
Health Policy is clear in its commitment to decentralization, and in proposing functional assignments for
key structures. Further, with many production functions already highly decentralized (private sector
delivery being classified as decentralized delivery) a focus on strengthening sector provision functions
(management of policy, planning, budgeting, execution and regulatory oversight and monitoring) at the
central, regional and district levels appears justified. The draft National Health Policy describes the
following major challenges to the Health System in Somaliland:

Health providers describe difficult and demoralizing working conditions;
Huge gaps in staffing of frontline health facilities make reliable, quality services virtually
unattainable. Some clinics stand empty while others are overcrowded;
MoH and Agencies are having difficulty in managing the rapid decentralization of health services
and donor-driven programs;
Shortages of equipment, consumable supplies and some essential drugs undermine facility
functioning, damage reputations, inflate out-of-pocket costs to patients and fuel a spiral of distrust
and alienation;
Exit from the public sector into an unregulated private sector;
High cost, formal and informal, but disproportionately borne by the poor; and,
Users routinely complain of abusive and humiliating treatment by health providers.11

92. Given the focus on the existing Law, but with a focus on the proposed (draft) 2011 National Health
Policy which makes clear its commitment to decentralization, the following strategic observations are
therefore madewith implications for the decentralization of functional assignments:

Based on Articles 109, 110 and 112 of the 2001 Constitution governments decentralization of
Ministry functions commenced in 2005, however as the existing health policy does not reflect this
approach, a new Health Policy is being drafted to support a more definitive approach;
To consolidate and deepen the ongoing decentralization process, MoH developed the EPHS which
as designed, can only be implemented in a decentralized system of governance;
The current functional structure of MoH and the decision-making structures across the four tiers of
health care delivery (Primary Health Unit (PHU), Health Center (HC), Referral Health Center (RHC),
Hospital and community health structures) requires further development;
In the draft 2011 Health Policy it is stated that decentralization will be gradual so that momentum
can be sustained; and,


11
Current data, albeit limited, suggests that premature mortality rate the death rate in the 045 age group is significantly
high in Somaliland. Male mortality exceeds that of females in all age groups. Maternal, neonatal, infant and child mortality are
equally high. Maternal mortality is 1200 per 100,000 live births and life expectancy is 52. Infant mortality is 90 per 1000 live
births. Under-five mortality is 145 per 1000 live births. Full immunization levels are at 5%. However, sectoral data is limited and
a census needs to be carried out in order to identify healthcare needs and dictate adequate service delivery procedures at all
levels of healthcare provision.

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Health sector financing for 2011whilst doubling over 2010 allocationsis only 3% of total
government spending, significantly below regional spending which range from 10-15% of national
expenditures.

4.2 HEALTH SECTOR SERVICE DELIVERY CAPABILITIES
4.2.1 MAIN ACTORS
93. The health systems in Somaliland is composed of state and non-state actors, operating across all
three tiers of state, although due to budgetary constraints state service delivery remains a relatively
small function of delivery, with the sector dominated by non-state delivery agents. The main actors of
the current health care system are therefore split between state and non-state providers. The four tier
state delivery systems is constructed as follows:

State Actors:
A Central MoH;
Regional Health Office (RHO) headed by a Regional Medical Officer (RMO), with a proposal to
establish a Regional Health Board (RHB);12
A District Health Office (DHO) (mostly to be established) headed by a District Medical Officer (DMO)
alongside a District Health Board (DHB);13
The proposed health policy seeks to establish two state-owned enterprises National Health
Professional Council (NHPC) and Somaliland Drug Authority (SDA); and,
Elected District Councils and their administration, although according to the District Assessments,
whilst district administration has legislative responsibilities for health care provision, in reality there
is no health department or personnel and the sector Ministry therefore delivers health services.

Non-state actors:
The Private sector;
Non-governmental organizations; and,
International donors and UN Agencies.

94. The functional structure of how the main actors work together within the overall public and
private health systems can be described as very much under-developed; albeit steadily improving.
Public health structures are still being established and will take many years to finance and build core
capacities, and until a new health law is passed, the functional assignments of the overall systems do not
adequately reflect the needs of a decentralized system. As such, NGOs remain largely uncoordinated
and unregulated, risking that models of best practice are not replicated across the wider system and
poorly delivery is not punished either. The private sector (largely pharmacies) are almost completely un-
regulated as are drug supplies. RHOs, RHBs, DHOs and DHBs are not operating effectively and even
where they do, they lack the necessary resources to fulfill their core functions. Still, establishing a
District-based Health System in the context of the EPHS provides for a number of entry points for
improved governance, around which the key actors need designated functions assignments. Key
functional structures for the sector are summarized below:


12
The draft Health Policy states that the RMO shall be a public health medical doctor, appointed by MoH and reports to the
DG. The RMO shall have line functions with the various Directorates of the MoH. The RMO shall have authority to hire and fire
in the region, and make necessary transfers as deemed fit.
13
The DHO shall be a public health medical doctor or senior health professional with public health training.

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Ministry of Health: The MoH in Hargeisa, composed of Minister, one Deputy Minister (charged with
policy formulation, advocacy and external relations), a Directorate General and six Directorates
(Planning, Human Resource Development, Finance and Administration, Health Services, Public
Health and Communicable Diseases Control) has linkages to sub-national units. There is
approximately 2,040 staff in the Central Ministry, 100 qualified active Physicians (public and private)
and nearly 100 registered midwives (public and private). A National Health Professional Council
operates parallel to the MoH, whilst a National Drug Licensing Authority is also under development;

Regional Health Structures: RHBs (in each region), who represent the community and oversee the
regional public health system, are headed by a Regional Health Director/Officer (one per region),
appointed by the DG of MoH reporting directly to the Director General and whose functions mirror
the six functions of the MoH (see Figure 14 below).

Health Posts: According to MoH, the Health Post (HP) is the closest facility to the community. It
serves a population of about 300 households, which means a population of about 2,000. HPs
staffed by an unsalaried Community Health Worker (CHW), provides basic care only to the
community. The CHW is paid by the community; quite often in kind. Referral is rather difficult
because of the distances between HP and the Maternal and Child Health Center (MCH).

Health Facilities: According to MoH, in 2011, there are approximately 287 public health facilities
throughout the country. There are 15 hospitals; 87 MCH; and 165 HPs. Many of the Primary Health
Care facilities are not functioning to their maximum capacity. The health workers work fewer hours
than expected. As a result of this and other reasons, the community has lost confidence in these
health workers and do not attend the health facilities. Other facilities include private clinics,
consulting rooms, hospitals (general and specialized), pharmacies, retail drug vendors and
laboratories (mostly private).

Box 2: District Capacity Assessment Sample Health Findings
The district capacity assessments conducted by JPLG provide a rich understanding of the current functional
assignments of the district administration offices in practice. This box merely provides a sense of current
administrative provision or production support roles, by district, which have different grade and fiscal potential,
for doubtless reflect their capacities to financed production and provision assignments:

Hargeisa District (Grade A District): According to the information given to the district team, the administration
has 323 active staff members in 13 departments; although there is no department of health. The Mayor stated
there is no decentralization within this service. They used to support MCH through providing funds for guards
and water but they no longer provide this support. The MoH is responsible for dealing with the MCH. They are
also sponsoring 20 students to take a public health diploma so the level of skill in this subject within the
municipality will increase. They also work with MoH, UNICEF, and WHO on this. It is stated that the table of night
shifts of pharmacies and MCH, fire fighting, electricity, water and petrol stations at settlement and district levels
is prepared by the Local Government. The municipality does not do this as the Mayor stated that this is done by
the MoH.

Odweyne District (Grade B District): The district administration has 19 active staff members in three
departments: Land, Finance and Administration, and Revenue, as well as directly under the Executive Secretary,
thus making the total number of offices analyzed four. For health, they have improved the fences around the
MCH; however, the responsibility for these centers and the other health facilities is with the MoH. The MoH is
represented in the district, along with four other Ministries. All the representatives and the district authorities
meet every Thursday but they usually communicate only about security issues. The representatives deal with
service delivery by themselves. The table of night shifts of pharmacies and MCH is the de jure responsibility of the

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Box 2: District Capacity Assessment Sample Health Findings
Social Affairs Department, and is therefore prepared by Local Government. This function is however done by the
business community; since most of the population know each other, then if there is a problem they are able to
assist each other. The district general works and land department also designs and maintain District Council
buildings, roads, recreational sites, stadiums, schools, MCH etc. The assessment also states that there are some
areas where there is no expertise within the district such as town planning, engineering, health, and education;
all of these are identified in the department breakdown below.

Berbera District (Grade A District): The district administration has 275 active staff members in eleven
departments: Transport, Land, Social Affairs, Audit, Finance and Administration, Revenue, Personnel, Health,
Planning, ID, and Central Archive as well as the Executive Secretary, thus making the total number of offices
analyzed twelve. The existence of a health department is rare in Somaliland at the district level. The local
government is responsible for the promotion and care of the social welfare, such as education, health, water,
electricity, sanitation, etc. The social affairs department is responsible for defining the responsibilities of the
municipality on health and education and ensure that there is the necessary expertise available. They pay for the
cleaners at the hospital. The table of night shifts of pharmacies and health centers, fire fighting, electricity, water
and petrol stations at settlement and district levels is prepared by the Local Government. The municipality does
not do this as the Mayor stated that everyone knows the pharmacists so if there is a problem they go to their
houses.

Burao District (Grade A District): Total number of staff not citied. The district provides financial support for the
district hospitals and financial support for the MHz. In total 5% of municipal finances are provided to support
hospital operations and maintenance and the municipality provides incentives to MCH guards; according to the
capacity assessment. Actual health service delivery is under the MoH, with primary services being provided free
at the point of service.

Sources: JPLG Supported District Capacity Assessments (2011)

95. The MoH was established to be the caretaker of health and well being of the people of
Somaliland. (MoH, 2011) In order to perform these duties, MoH currently has six departments as
follows (i) Planning and Policy (ii) Health Services (iii) Public Health (iv) Communicable Disease Control
(v) Human Resource Development and (vi) Finance and Administration. Figure 14 below provides the
current departmental structure of the MoH based on this original vision, which show a clear focus on
Provision Functions not delivery per se. Current functions of MoH are provided below:

Policy formulation;
Strategic planning;
Resource mobilization;
External relations (donor coordination);
Legislation;
Financing and budgeting;
Inter-sectoral collaboration; and.
Performance audit of the health services in the region (to supervise and monitor the performance
of the Health Board).

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Figure 14: Current Structure of Somaliland MoH


























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96. The new MoH Policyif implementedwould however change the functional structure of the
MoH from six to four directorates; which makes ascribing functional assignments complex. Should
assignment be based on the old structure which is based around provision and not production functions,
or should it be based in the new (un-approved) structure which includes production functions also?
Based on the core functions of MoH, the new law proposes the following new structure of the
Ministry: In addition to the Executive offices there will be four directorates (some divided into divisions)
headed by the Director General:

Directorate of Policy, Planning & Strategic Information
Planning
Policy
Coordination
Health Management Information System (HMIS)
Monitoring and Evaluation (M&E)
Research
Public Relations
Medical Infrastructure and Equipment

Directorate of Health Services

Division of Infectious Disease Control and Surveillance
HIV/AID
Malaria
TB/Leprosy
Surveillance
Emergency Preparedness
Environmental Health

Division of Mother and Child Health
Reproductive health
Safe motherhood
Child Health
Expanded Program on Immunization (EPI)
Nutrition
Health Communication

Division of Hospital Management
Quality Assurance and Private Sector
Hospital Care
Drugs, Vaccines and consumables
Mental Health
Disabilities
Nursing and Midwifery
Laboratory Network
Oral Health

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Directorate of Finance &Administration
Budget
Accounts
Procurement
General Administration
Personnel Management
Procurement and Logistics

Directorate of Human Resources Management
Human Resource Management (HRM)
Planning and Monitoring
Training and Capacity Development
Continuous Professional Development
Post graduate Training Department

Three additional offices will be created namely -
Office of internal Audit who will report to the Minister.
There are two Parastatal organizations that will be created namely (i) NHPC and (ii) the SDA. They
will report to the Minister.

4.2.2 SUB-SECTORS
97. The health sector of Somaliland, is presently in transition from a predominantly private and NGO
service delivery model to one where public health services are increasingly part of the overall
approach; with the EPHS as the model around which such gains are being leveraged. The set up of the
MoH has been primarily service-delivery oriented, but DFID-financed interventions are anticipated to
strengthen provision functions also, including (i) planning, (ii) coordination of international
interventions, (iii) database of assistance, (iv) HMIS, (v) M&E, (vi) health financing, (vii) human resources
development, and (viii) drugs licensing, testing and quality control (a Diaspora pharmacist is to be
financed by MoH). The MoH has already decentralized some of its functions to lower levels, particularly
management of secondary care, MCHs and primary care HPs. In essence, the health system of
Somaliland might be seen as comprises the following sub sectors:

Subsector 1: Public healthcare which includes (i) MCH (reproductive healthcare and nutrition) (ii)
Primary and Secondary Health Care (free by law, yet charges are applied to certain tertiary
services); and, (iii) Hospital Services;

Subsector 2: Private healthcare the private sector is largely unregulated, whilst legislation is being
developed for the licensing and accreditation of health professionals in the private sector and the
establishment of National Health Professional Council; and,

Subsector 3: Pharmaceuticals - The pharmaceutical sector is also unregulated, with the MoH
monitoring quality control of imported drugs with wholesalers; the establishment of a drug quality
control laboratory and a National Pharmaceutical Drug Licensing Authority is in process.

98. The DFID-sponsored EPHS initiative (implemented by Health Unlimited), adopted by Somaliland
health authorities in 2009, serves as a framework for health sector development based on 10 priority
health interventions. The EPHS consists of the following (i) four levels of service provision (ii) ten health

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programs and (iii) six management components and is being implemented through PHUs (community),
HCs, and local and regional hospitals, with overarching support for nutrition. Interventions in view of
improving service provision have included training of health workers, rebuilding and/or improving
health clinics, family planning, ante-natal care and safe delivery, caring for newborns, vaccinations,
prevention and treatment of pneumonia, diarrhea, malaria, TB and AIDS, as well as screening for and
treating malnutrition. Providing the interventions requires support to the six components of the WHO
Health Systems Strengthening (HSS) model. In addition, UNICEF supplies of kits and vaccines to
compensate for lacking resources, among other support. However, persisting financial limitations,
inadequate material base (infrastructure and equipment), as well as limited staff numbers and capacity
halt the ability of the public health system to provide services, paralleled with a relatively stronger
private sector.

99. The MoH has clearly struggled to fulfill the requirements of the current National Health Policy for
reasons largely relating to lack of fiscal and human resources. The functional structure of the Ministry
is currently in transition, and a new National Health Policy is clear in the role of district level delivery
systems for the entire system. The draft policy vision is for all the citizens of Somaliland to attain the
highest quality health and social wellbeing that is affordable, accessible and equitably distributed
throughout the country and delivered through the District based health system. The draft mission is
even more explicit about the approach to be adopted, which may have implications for sub-functions.
The stated mission is to create an enabling environment for the provision of socially acceptable,
affordable, accessible, equitably distributed minimum package of quality health care that responds to
the need of the community, addressing the vulnerable and marginalized population and delivered in a
sustainable way through a district health service system within Somaliland (MoH Draft 2011 National
Health Policy). Under the draft health policy, the functions outlined in Figure 15 below would form
policy framework, around which new sub-functions would be provided.

Figure 15: Government Health Policy Areas

Policy Formulafon &
Strategic Planning

Performance Audit of
Health Services in the
Region (Supervise Resource
and Monitor the Mobilizafon
Health Board)


Inter-sectoral External Relafons
Collaborafon (Donor Coordinafon)



Financing and
Legislafon
Budgefng

Source: Draft National Health Policy 2011

100. As it is at a stage of redefining is functions and service delivery model, the MoH of Somaliland is
faced with two scenarios going forward: (i) revert to its former, pre-independence service delivery

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model, maintaining its role as a service provider; or (ii) adopt a new role, as a steward of the entire
health system. Stewardship involves setting policies, planning, standards and service delivery models as
well as regulatory oversight and compliance, but not necessarily delivery of production assignments. The
latter involves partly contracting out service delivery, whilst overseeing the health services delivery of
the private sector, and focusing on areas such as: health policy, planning, budgeting coordination,
licensing and accreditation of health workers, training and qualification of staff, oversight and
coordination of international assistance, needs assessment and assertion of minimum standards,
development of health financing policies (which will eventually lead not only to a sustainable health
system, but also one in which essential services are available to the most vulnerable), ascertain of drugs
availability and quality of health care provision.

4.2.3 SERVICE PRODUCTION PROCEDURES
101. The service production procedures in Somaliland reflect the normal primary, secondary and
tertiary split for the sector, although given lack of fiscal resources, most production functions to date
are not delivered by the public sector, but by the private sector and non-governmental organizations.
As previously stated, given weak fiscal resources and the high burden of disease, the government
embraced the EPHSproviding a harmonized and integrated approach to health service deliveryand
this approach is gradually being rolled out, with all partners supporting the MoH complying with the
EPHS implementation framework, guidelines and geographical priorities of government. With
government also deploying its own resources, the EPHS provides a comprehensive (systems wide)
approach to dealing with the essential health care needs. The EPHS is currently operating a four-level
system structured as follows, according to the draft National Health Policy:

Primary Health Unit: This is the first level of contact that the community has with the formal health
sector. The Community Health Committees will oversee the functions of the PHU;
Health Center: This is the first level referral and is the key unit where all the core programs are
carried out. They will be open 24 hours, seven days a week;
Referral Health Center: This is the apex center at the district level and will gradually be upgraded up
to the level of a district hospital; and,
Hospital: These are regional and/or national (specialist) hospitals.

102. The EPHS is laying the foundation for public service provision, and is pioneering (i) four levels of
service provision (ii) ten health programs and (iii) six central management components across the
entire health system. EPHS pilots are currently being rolled out in the Berbera regional hospital, Sahil
region (Health Unlimited through DFID), the Burao hospital, Togdheer region (MSF Belgium) and the
Ceerigaabo hospital, Sanaag region (MSF Netherlands). Because of the weakness of public sector
delivery systems at the district level, there are referral health centers, with management and
supervision functions being provided at the regional level. So far, the priority is on enabling the regional
health system, and in future phases of health systems development a district management structure
could then be created; with options outlined for such an approach. The EPHS demands a full
complement of health system management inputs and logistics capacities to be developed, including
finance, human resource management and development, EPHS coordination, development and
supervision, community participation, health systems support components and HMIS.

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Table 18: Key Figures Across Levels of Healthcare

Description Number
Qualified, active Physicians (public & private) 100
Registered Midwives (public & private) 100
Hospitals 15
Mother-Child Healthcare Centers 87
Health Posts 165
Total 467

103. The EPHS provides a more balanced approach to public healthcare, and now constitutes the
official national package for implementation at primary care level. The current structural components
(or levels) of the health system are to be renamed, and their functions changed (see Table 19).

Table 19: Anticipated Structural Changes under EPHS

Present EPHS
Health Post (HP) Primary Health Unit (PHU)
Maternal and Child Health Centre (MCH) Health Center (HC)
District Hospital Referral Health Center (RHC)
Regional Hospital Hospital (H)

104. Rolling out the EPHS therefore has institutional implications and the current functional structures
of the health system is being restructured around the new policy framework, along with the functional
mandates of regional and to a lesser extent district vertical and horizontal structure. The EPHS
component of the wider health system requires three functional groups for its delivery: (i) Health facility
staff (direct facility management) (ii) a regional health office (supervision and quality of care) and (iii)
community health committee (oversight, ownership and support). Functional mandates, based on
existing regional pilots, are provided below and developed in greater detail subsequently:

Primary Health Unit: The PHU is staffed by at least one trained CHW supported by an elected,
representative Community Health Committee that participates in responses to the common causes
of ill health affecting the community. The functional assignment of the PHU is on prevention of
disease and promotion of health through nutrition education, health-seeking behavior, vaccination,
mosquito nets and improvements in water and sanitation. No fees are charged at the PHU.

Health Center: The HC is the key unit of the essential package, at which all core programs are carried
out. It is the first level at which obstetric services are provided, including Ante Natal Care (ANC) and
facility-based deliveries with qualified midwives. Minimum staffing consists of a qualified midwife,
qualified nurse, qualified auxiliary nurse and a community midwife. As well as maternity beds there
are a minimum of six beds for 24-hour observation of sick patients. The HC is to be staffed with a
Primary Health Officer and a Community Health Committee is to be involved in management and
local fund raising. Core programs 1-6 are to be applied at the HC level.14 The six core programs
include:


14
HCs provide outreach support services, serving as a referral point for several HPsthe primary level of public healthcare
and cover a population of approximately 5,000 people. The MCHs receive support from international agencies in the form of
drug kits, vaccines, fridges, and nutritional supplements (UNICEF). While these additional resources are much needed, lack of
harmonization and coordination between donors, international agencies and recipients undermines the effectiveness of this
support.

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1 Maternal, reproductive and neonatal health;15
2 Child health;
3 Communicable disease surveillance and control, including WATSAN promotion;
4 First aid and care of critically ill and injured;
5 Treatment of common illness; and
6 HIV, STIs and TB.

Referral Health Center: The RHC and district hospitals carry out all core programs outlined above
and additional programs (7-10) for treating people with mental illness, chronic disease and dental
and eye disease via outreach visits by specialists from the regional level. They carry out
comprehensive emergency obstetric and newborn care, with the capacity for carrying out caesarean
sections and safe blood transfusions. The surgical facilities also allow tubal ligations to be carried
out, as well as IUDs and implants to be fitted. They have at least eight bed maternity wards and an
inpatient facility for at least 20 patients. Staff includes at least two midwives, two qualified nurses
and a health/clinical officer. The RHCs will have a Primary Health Officer (nurse) for EPI and
nutrition, and a laboratory technician. RHCs also have fridges and freezers, acting as EPI depots. In
addition to the six core programs provided by the HC, the RHC also provided core programs 7-10:

7 Management of chronic and other diseases; care of elderly and palliative care;
8 Mental health and mental disability;
9 Dental health; and,
10 Eye health

Hospital: The hospital ensures 24-hour quality inpatient referral health care, with qualified nurses,
midwives and doctors permanently in the hospital. Core and additional programs are expanded in
hospital departments, each often run by specialist medical and nursing practitioners who may also
conduct outreach clinics to RHCs. Management is the task of a hospital administrator (MBA level)
overseen by the hospital director and the RHO. Health Boards are responsible for mobilizing funds
from the community, business enterprises, the Diaspora and other sources. MoH and municipal
authorities also proposed to contribute to hospital fixed and variable costs. Regional EPI depots
ensure regular vaccine supplies to the districts and a regional medical store is sited separate from
the hospital, and eventually the EPI depot would be at the same location.16

105. MoH is already struggling to meet both provision and production oversight functions covered by
non-state actors, but with fiscal resource committed to the sector increasing, the roll out of donor
support EPHS will soon provide a framework for public health provision. However, despite such a clear
policy focus government lacks resources, including human resource, physical infrastructure and

15
MCH centers visited by the team in Hargeisa were overwhelmingly attended by women, and few or no healthcare centers
existed for follow-up or referral. This situation in Hargeisa presents a fairly representative picture of the MCH scene across
Somaliland. MCH, comprised of obstetric, gynaecologic, neonatal and paediatric consultations, and typically staffed by a
qualified nurse, midwife, auxiliary nurses and community midwives, is the first professionally staffed port of call of the health
system, and by definition, serves only specific sectors of society and needs. With this secondary level of healthcare catering
specifically to mothers and children, those falling outside of these categories, including men and the elderly, are left with no
choice but to travel to regional hospitals for medical attention. This presents a dire situation, particularly given the levels of
chronic and non-communicable diseases in Somalia including, for instance, chronic bronchitis, hypertension, asthma and
diabetes.
16
In terms of public health care facilities, there are regional hospitals in each of the six regions, as well as seven TB hospitals
and four TB centers. Several of these regional hospitals are supported by international organizations as they carry out much-
needed construction and renovation work, procure drugs and medical equipment, train the local staff, and move towards
significantly increasing the salaries of health staff.

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equipment and drugs, as well as financial resources to support expedited roll out. In addition to limited
fiscal resources to finance free access to primary and secondary care, inadequate compensation and low
staff morale impact standards of work.

106. While the Constitution provides for free healthcare for all, in practice, this is currently
unaffordable and large groups of people either pay directly or go without service. The new Health
Policy, developed with technical assistance financed by DFID, stipulates that while the first and the
second level of health care will remain free, the third levelthe hospital levelwill increasingly
introduce cost recovery measures. In addition, the draft law also states that financing will be actively
sought from international donors, the Diaspora, regional and district communities, and specific taxes.
Currently however, as reflected in survey results, less than 15% of the rural population is able to use the
public system for regular complaints. The current public system lacks qualified staff, facilities and
financial resources. Furthermore, due to staffing and salary levels public health facilities are often left
un-staffed after midday as medical professionals only survive through their private practices. Private
practices are therefore essential in maintaining quality staff within the overall health care system.

4.2.3 SERVICE PROVISION PROCEDURES
107. Policy and strategy development has improved substantially in recent years, with a clear policy
framework developed around which recasting functional assignments will be possible. DFID, WHO and
UNICEF have been central to such development. Policy and strategy development is very much a joint
partnership between the government and international donors, and although there are strategic gaps,
the gaps are being closed year-on-year with improved support. As already stated, the draft National
Health Policy is under development, and is aimed at:

Increased utilization of quality health services especially by people in the underserved area, by
improved access to quality and responsive health services;
Strengthened governance and management in health sector;
Improved institutional mechanisms for community participation and systems for accountability;
and,
Strengthened financial management systems.

108. Recent support by UNDP is focusing on local government financing and preparation for the
development of a Medium Term Expenditure Framework for the core sectors. An MTFF has already
been established and recommendations made by MoF to foster a better form of fiscal decentralization
that removes both horizontal and vertical fiscal imbalances. Within the proposed MTFF, conducting
bottom-up costing the health sector, including the EPHS, is now possible. However, given that
government financing is only a small part of total sector financing, sector costing will need to report
historical (actual) and future (projected) spending on and off budget. In terms of process however, once
the budget call circular is released, the planning and administration and finance departments collect
costs proposals from the regions and districts and then submit a consolidated request to MoF. Currently,
because the sector has not been fully costed, compelling evidence of the need to radically increase
sector allocations through the budget process have still to be made.

4.2.4 OTHER SERVICE DELIVERY OBSERVATIONS
109. The private sector comprises of pharmacies clinics, laboratories and traditional healers. In
addition to the healthcare provided by the four public sector levels, Somaliland has a private sector of
pharmacies, clinics, laboratories and traditional healers. The services provided by the private sector

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compensate, to a limited extent, for the fact that Somalilands public secondary health care system is
heavily weighted towards obstetrics, gynecology and pediatrics, while chronic diseases, non-infectious
diseases are under-served.

110. It is nearly impossible for an adult male to get secondary care in the public sector. Gender bias
resulting from the dominance of mother and child healthcare centers at the secondary level of public
healthcare provision accounts in part, for the apparent preferenceparticularly amongst menfor the
private pharmacy as a first port of call for medical complaints. Only those suffering from persisting
complaints visit the regional hospital. One explanation offered for this unequal provision of healthcare
across different sectors of society in Somaliland is that the current situation is a supply driven reflection
of the mandates of financing organizations, rather than a demand driven reflection of the needs of the
health customer. There is no quick and easy solution to this problem, other than increasing national
spending on health or using donor trust funds to finance health care delivery.

111. Drugs are provided by UNICEF and other partners, not MoH, and packaged as drug kits. Kitsthe
selection and distribution of which is not based on a national essential drug list or treatment
protocolsare stored in the central medical store and distributed monthly and quarterly to the regions
and districts. Drugs distribution to the peripheral level is not based on needs and utilization rate is based
on availability and affordability (separate fees for drugs are applied at hospitals). Field observations
have suggested that HPs and MCHs and Private pharmacies have sufficient amount of drugs. However,
expired drugs were found at several instances, whilst a survey with several pharmacies has
demonstrated a high proportion of counterfeit drugs. A revolving drug supply system is claimed to be
operational in the Hargeisa Group hospital.

112. A national drug licensing authority is under development. At MoH, a Diaspora pharmacist is
reportedly developing treatment protocols. It is advisable that the private pharmacists should be
integrated into the Human Resources for Health development. Practitioners need training in a rational
drug use, with emphasis on diagnosis, prescription and patient compliance. Pharmaceutical
storekeepers need training in utilization rate projection and store keeping.

113. Human Resource Management Information System: A health database is to be introduced,
paralleled with progress under the HMIS. However the HMIS is still limited due to:

Lack of national developed priority health indicators;
Different data collection systems proliferated by vertical programs and supporting agencies;
Poor quality of data generated at service delivery providers level mostly contributed by low skill
level, low staff morale and lack of data use at collection level; (iv) inadequate use of available data
by MoH at all levels;
Lack of proper integration with other systems of data collection in place (e.g. Disease Surveillance
system);
Lack of other critical sources of complementary information such as population and census data at
regional and lower levels, periodic Demographic and Health Survey data, and research data;
Lack of updated MoH policy and strategic framework to guide development of M&E and HMIS
policies; and,
Lack of policy and regulatory framework to include private sector in providing periodic service
statistics.17

17
Draft National Health Policy 2011

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4.2.5 BUDGET: EXTERNAL AND INTERNAL SOURCES OF FUNDING AND POINTS OF ORIGIN
114. There has been a steady increase in budget allocation for the health sector between 2006 and
2011 which is influencing the national policy to aspire to more than provision functions, particularly
around the EPHS. In 2009, the government allocated some 2.72% (US$687,008.55 / 7,213,589,760 Sl.
Sh) to the health sector, which is significantly below the 5-7% average allocation to health in many East
African countries. In 2010 this figure was a higher percentage (2.83% - US$836,553.42 / 8,783,810,960
Sl. Sh) of the overall National budget of US$29,548,486.83 / 310,259,111,704 Sl. Sh). In 2011 the
appropriation was higher again (3.08% - US$1556647.48 / 16,344,798,559 Sl. Sh) of a total budget.
Despite the steady increase in government spending in the health sector, the current health budget is
still well short of the 15% of the national budget targeted by 2015, pursuant to the Abuja declaration of
2001. The sector is therefore badly under financed which negatively impacts public delivery capabilities.

Table 20: Somaliland National and Health Budgets (2009-2011)

Total 2009 2010 2011


Budget Sl. Sh US$ Sl. Sh US$ Sl. Sh US$
Annual 265,190,104,732 25,256,200.45 310,259,111,704 29,548,486.83 529,935,322,245 50,470,030

Health 7,213,589,760 687,008.55 8,783,810,960 836,553.42 16,344,798,559 1,556,647


Health
2.72 2.83 3.08
(%/total)
Source: Ministry of Finance, Somaliland

115. The staffing establishment paid through state payroll (2040 MoH staff) accounts for
approximately 76% of the 2011 annual budget for health. Operational costs (drugs, medical supplies,
printing, food) have decreased from 40% to 7% between 2009 and 2011. Service cost has been stable at
2.85% in 2009 and 3.23% in 2011. Public service costs (travel allowance, office, vehicles, Hargeisa
hospital costs, Hargeisa nurse training institute, and water and electricity), has decreased from 26% in
2009 to 8.29% in 2011. In the course of the past two years funding for operational and service costs has
been provided from alternative sourcessuch as the expatriate Somali Community and International
Assistanceallowing the MoH to invest the reminder of the annual budget (50% - US$782,290) on
human resource development, which is critical to the sector.

Table 21: Monthly Salary Scales & Incentive or Salary Top-Ups

MoH Health Health MoH COOPI MOPH MSF


Awdal Unlimited Unlimited Boroma and Hospital Hosp Hospital
Grade

Grade

Grade

Region Sahil Region Maroodi Jeex Awdal (US$ Boroma Burao Burao
Salary EPHS/DFID EC lot 3 scale p.c.m.) Incentive Salary Incentive
(US$ (US$ p.c.m.) (US$ (US$ p.c.m.)
p.c.m.) p.c.m.)
A 129 605 500 129 630 A 66 7 1034
B 105 410 250 105 265 B 54 6 463
B 105 230 250 105 258 B 54 5 359
C 54 210 170 81 125 B 54 4 292
C 54 155 150 81 125 B 54 3 246
C 54 145 150 47 115 C 42 3 202
D 47 70 80 47 115 C 42 1 170
D 25 50 80 25 115 D 25 1 187

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Grade A (Physician, Director), Grade B (Administrator, Matron, Midwife, Nurse in charge, Physiotherapist, Lab technician, X Ray
technician), Grade C (Lab technician, X Ray Technician, Auxiliary nurse, Lab assistant, auxiliary midwife, driver, store keeper,
cook), Grade D (Cleaner, guard)

116. Table 21 demonstrates exiting MoH staff salary incentives/top-ups and grade based on three key
organizations supporting the health care system in Somaliland. According to the MTFF however,
government is looking to conduct a pay a grading review to decompress salaries across grades to attract
and retain staff. Health Unlimited supports four MCHs and two HPs and provides incentives for 43 A, 14
B, 17 C and 20 D grade staff in the Awdal region. COOPI support is focused in Boroma and the
Annalena TB hospital in terms of 10 A, 38 B, 38 C and 35 D grade incentives. MSF Belgium supports
71 staff members of the Burao hospital in Toghdeer. The total of salary top-ups provided by these
organizations in just three sites (Health United and COOPI are active in other sites as well) exceeds half
of the annual budget for health in Somaliland. Moreover this calculation excludes the additional support
in terms of drugs supply, medical equipment, refurbishing, repairs, and travel and human resource
development also undertaken by these organizations.

117. The budget figures provided above exclude off-budget support, which remains substantial. Off-
budget support is provided by provided by Merlin, Handicap International, Hope, PSI, Concern, Medair,
Mercy Corps, Zam Zam Foundation, Islamic Relief and the Red Cross family working through the Somali
Red Crescent society. They also exclude financial support provided by donors such as DFID, the EC,
UNICEF, WHO and World Vision for example. A conservative estimation would suggest that at least
half of the work force in the health sector of Somaliland receives a salary top-up (4 to 20 times the
salary) by one of these organizations. This suggests that international assistance in significantly greater
than GoS financing, implying and urgent need to increase harmonization and alignment of external
assistance around clearly defined service delivery models. 18

118. According to the MTFF, the following budget ceilings are projected for MoH from 2010-2013,
although these projections are based on significant improvements in revenue to GDP mobilization in
the years ahead, including broadening of the tax base and limited deficit financing.

Table 22: Projected MTFF Budget Ceilings for MoH (2010 2013)
2010 US$ 2011 US$ 2012 US$ 2013 Sl. US$
Sl. Sh Sl. Sh l. Sh Sh
(000) (000) (000) (000)
Employee 5,875,686 1,022,391 12,492,196 2,173,690 21,643,015 3,765,967 32,464,522 5,648,951
Compensation
Goods and 2,908,124 506,024 3,852,601 670,367 5,008,382 871,477 6,510,896 1,132,920
Services
Development 36,000,000 6,264,137 36,000,000 6,264,137
budget
HIV Commission 379,488 66,032 654,751 113,929 879,864 153,099 1,202,195 209,168
Employee 153,829 26,766 362,572 63,089 543,859 94,633 815,788 141,950
Compensation
Goods and 225,659 39,265 292,178 50,840 336,005 58,466 386,406 67,236
Services
Total 8,783,810 1,528,416 16,344,798 2,844,057 62,651,397 10,901,582 74,975,419 13,046,010



18
In particular the penetration of UNICEF blanket distributions of Nutty Butta, vaccines, fridges and medicine kits is impressive.
It reaches every visited health post in Somaliland and is identified in every field assessment.

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119. Given the need to massively increase financing for the sector, and to sustain service provision, the
EPHS is being financed through five discrete sources: (i) donor financing (via contracts with
implementing agencies); (ii) contributions from the regular budget of the central MoH; (iii) contributions
from municipal or district authorities; (iv) community health and (v) user fees (at hospital level only, and
only for specific services). During both phases I and II of EPHS implementation, donor financing will
therefore comprise the majority of funding for the public sector health services (see table below), but
with an increasing percentage from the other sources, namely national government, local government
and community. Health financing traditionally involves the basic functions of collecting revenue, pooling
resources, and purchasing goods and services (WHO, 2000) and in the case of Somaliland, given large off
budget flows, using trust funds to create fungible resources will be critical to the long term success of
harmonized and aligned delivery system. Moreover, because the financing of production functions
involves complex interactions among a range of players in the health sector, there is an urgent need to
review sector-financing arrangements across these five sources, with a focus on improving the
alignment and harmonization of external support within national health programs.

120. Proposals for strengthening health care financing need to be derived from normative public
finance and aid management approaches as they have been developed in countries in transition, with
a strong focus on linking top-down fiscal (revenues) planning with bottom-up expenditure costing
as has been done under the EPHS. According to the draft national health policy, financial, as well as
human, resources are inadequate, and Somaliland depends almost entirely on external sources for the
health sector. However, as no full sector costing has been undertaken, no aggregate health figures exist.
In April 2011 African heads of States and Heads of Government committed their countries to allocate at
least 15% of the national budget to health by the year 2015. The Somaliland administration currently
allocates 2.5% to 3.0% of Somalilands national budget to the health sector. This mostly goes to pay
salaries and basic maintenance. The proposed measures to be adopted in Somalilandwhich must be
central to the next phase of development for the health system therefore include:

Increase State Financing of the Health System: The MoH had also projected a need for additional
350 health workers per year from 2012 to 2013 and this will also add around Sl. Sh13.1 billion for
the three years. Government aims to provide both a basic and essential package of hospital services
in both urban and rural areas and full immunization coverage in all districts. It also aims to reduce
infant and maternal mortality rates and improve prevention and treatment for infectious diseases.
To facilitate this development the Government is looking to raise and provide a development
budgetin the form of grant or loansof US$6 million for the annual budget in 2012, and US$6
million for the annual budget in 2013 respectively;

Health Financing Policy Development: Somaliland urgently needs a comprehensive health sector
financing policybuilding on the EPHS approachto drive finance service delivery, and to enable
the EPHS to be sustained as the major driver of health care provision over the medium term.
Costing the sector within the propose MTFF is also critical, to lock in budgetary resources and
increase sector financing which is so critical to raising heath standards and meeting the MDGs.
Support for improving fiscal decentralization is also critical to making sure that Class A to Class D
districts are provided fiscal resources to meet their legislated obligations, which include supporting
community mobilization and financing;

Strengthening district allocations from the divisible fiscal pool, perhaps also piloting sector
categorical grants, that remove vertical and horizontal fiscal imbalances. Currently the fiscal
transfer grant program has a number of inadequacies, as evidenced by the variation in district staff.
Some Class A districts have an establishment of 250-300 staff whereas Class C and D districts have

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less than 20 staff; insufficient to meet obligations as legislated for under the decentralization law of
2002. The current fiscal transfer formula needs to be strengthened to remove horizontal
imbalances. Donor trusts funds could also be used to support sector categorical grants to District
Councils in support of health care provision, around designated functional assignments;

Undertake an Assessment of District Administration Finances: As extending the EPHS down to the
district level is a medium term objective, it is vital to get a sense of long term revenue mobilization
capacities at this level of government, as understanding fiscal flows will be vital to establishing a
sustainable health care system. In the long term, sector specific categorical grants could be
considered for the District Councils to undertake specific functional assignments;

Undertake Sector Wide Top-Down and Bottom-Up Costing: With the MTFF established, around
which medium term budget ceilings are set, it is time to undertake a comprehensive bottom-up
sector costing to support a sector MTEF and to lock in resources for health to meet state vision in
this sector;

Cost Sharing: The proposed National Health Policy proposes the adoption of cost-sharing. The
policy states that (i) provision of free health services to all mothers and children at the primary
health care level will be provided (ii) that delivery at the hospital will attract a charge which will be
determined after a thorough assessment has been made of all the health facilities and (iii) that
schemes shall be developed to exempt the vulnerable and marginalized indigents. These will be
defined in the context of Somaliland at the community level.

Trust Fund Management: The opportunities soon to arise under the Somaliland Donor Fund
Consultation Process being financed by DANIDA in coordination with DFID should be seized. It is
critical to establish a dedicated trust fund for financing the health sector, with the aim of pooling
fungible resources around which the EPHS in particular can be rolled out. The proposed service
model, with NGOs playing a critical role in substituting public sector delivery capacities, and given
the need for the roll out of the EPHS not to be constrained by fragmented support, such an
arrangement seems critical.

Health Insurance Schemes: For many income groupsand given the limited footprint of free state
servicesthe affordability of health services is frequently beyond the purchasing power of both
formal and informal employees, leading to significant impacts on both personal and social health
fronts. There is an urgent need to consider viable community health insurance schemes, for
community members who need services that are not provided through free provision. Figure 16
below outlines the various health financing channels that Somaliland should consider, and such a
framework could be usefully piloted at the district level.

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Figure 16: Financing Flows in National Health Systems

Source: Schieber and Maeda (1997)



4.2.6 STAFFING DETAILS AND TECHNICAL SKILLS NEEDS
121. There are some 2040 personnel (18% of the government workforce) working in MoH; skill levels
are however low at all levels and grades.19 Whilst there are two medical schools in Somaliland, two
midwifery schools and five nursing schools, the overall skill-set of professional cadre within the sector
requires considerable further development. Although medical colleges have been certified these schools
have not been accredited and their graduates are not yet registered in accordance with Law no 19 of
2001. This situation is, however, in transition, as the current program of Human Resource Development
for Health of THET (DFID) progresses.20


19
Pursuant to the Draft National Health Plan (2011), Somaliland continues to be in short supply of qualified health
professionals. Currently there are two medical schools, five Nursing Schools and two Schools of Midwifery. The total enrolment
is rather low for the demand in the country. Perhaps an area where the country needs to invest in would be in production of
medical teachers (as they are also in short supply) - a determining factor for the size of student enrolment. Except for the
medical colleges, these training schools have not been accredited as the NHPC has just been set up. The graduates have not
been registered either, although Law No 19 of 2001, stipulates that all medical graduates (medical, dental, nursing, midwifery,
etc.) will be registered by a commission. This commission (NHPC) has just recently been set up.
20
At present, there is an urgent need for more physicians to cover the ground level of the MoH, the private sector, local
nongovernmental organizations and international organizations. Furthermore, training of MoH staff is necessary, as is the
improvement of quality of health care delivery by both the public and private sector.

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122. The sector remains under-staffed with many core health care officials and workers forced into
other income sources, which detracts substantially from the service provision. The Diaspora is well
trained and a powerful force of support. However, returns from the Diaspora to support further system
development are unlikely unless motivated by donor related remuneration packages. Human resources
are the center of the entire delivery system and whilst they are at their weakest at the district level;
both central and regional structures need to benefit from a workforce development strategy, and civil
service reform to lay out a career path for health professionals and better terms of services, as can be
provided. However, whilst the proposed pay and grading review may decompress salaries bringing
them in line with the private sector, it risks further undermining O&M and capital cost financing.

123. Preferably public sector salaries would be derived through labor market surveys around which
comparator wages would be established; and these are linked to the pay and grading structure of
government. Such structures also allow for career progression, which is critical to providing an incentive
framework for improved delivery. The assessment team undertook a short (unrepresentative) market
survey in October 2011, which indicated that a commercial fixer or a mid-level UN local staff member
receives a higher salary than the Minister of Health of Somaliland; while a mid-level local NGO staff
earns below that level, but still significantly more than a Deputy Minister of Health (Table 22).

Table 23: Average Salary Ranges in Somaliland

Salary Type Average (US$/year)


Mid-level commercial 38000
Mid-level UN local 20,000
Mid-level NGO local 10,200

124. There is no standardized Career Development Plan in the health system and criteria are not yet in
place, although they are currently being discussed and planned. The distribution of health workers is
uneven and favoring larger urban areas, where the opportunity for supplementation of their salary with
a private practice makes staffing more feasible. Generally, health workers work short hours in the public
sector in order to supplement their low public sector wages with their private sector supplements.
Guidelines for hiring, retaining, promoting and firing staff have yet to be clearly established Non-
monetary community incentives towards retention of health workers in rural areas are necessary, and
often includes housing, assistance

4.2.7 SHORT AND LONG TERM CAPACITY BUILDING NEEDS
125. According to the Draft National Health Policy of 2011, and the 2011 NDP, the challenges currently
facing the health system of Somaliland are largely structural and systemic in nature. Furthermore,
many of the constraints affect all budget entities, not just the MoH, and these include lack of financial,
human and capital resources to provide public health and oversight of private provision. Key constraints
affecting the sector include, but are not limited to:

Health providers describe difficult and demoralizing working conditions;
Huge gaps in staffing of frontline health facilities make reliable, quality services virtually
unattainable. Some clinics stand empty while others are overcrowded;
MoH and Agencies are having difficulty in managing the rapid decentralization of health services
and donor-driven programs;

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Shortages of equipment, consumable supplies and some essential drugs undermine facility
functioning, damage reputations, inflate out-of-pocket costs to patients and fuel a spiral of distrust
and alienation;
Exit from the public sector into an unregulated private sector;
Catastrophic cost, formal and informal, but disproportionately borne by the poor; and,
Users routinely complain of abusive and humiliating treatment by health providers

126. In order to ensure the feasibility of further health sector decentralization, it is necessary to
strengthen Somalilands local governance structures in view of improving their stewardship functions.
This short capacity assessment is structured around the following six management and support
components:

Change Management and Coordination: Leading-change management and coordination skills are
particularly required in Somaliland given the drive to restructure the current Ministry and pioneer
EPHS as a cornerstone of public delivery. Attracting and retaining leadership staff is critical to long-
term development, which implies establishing a career-based system that meets the income needs
of qualified professionals. Given the focus on change-management, a communication strategy will
be essential to guide the forward process.

Health Finance Capacities: Health financing skills are scarce, as are policy based budget
management skills. Core PFM capacities need to be built, as do fiscal decentralization arrangements
that improve cost-sharing and cost recovery agreements. Recommendations on improving health
financing for the sector as a whole (see the Budget and Finance Section above) also need to be
considered, and given the level of off-budget transfers to the sector, improved aid management is a
core strategic enabler for the new health policy;

Human resource management and development: HRM skills have been steadily improving but
there is obviously substantial headroom for future improvement. Performance management,
contracting and attendance are key issues that require improvement. In addition, the academic
qualifications of staff are low when compared to requirements, requiring a long-term workforce
strategy for the sector to be adopted, alongside change to the tertiary education system to deliver
qualified young professionals into this critical sector. Options for modest laterally entry programs
could also be considered, as could scholarships and dedicated in-service training courses in core
skills to key leadership and management staff. The accreditation and licensing of workers in the
health system is also a major gap which needs to be addressedin accordance with Law no. 19 of
2001and standards need to be set and minimal skill levels introduced across the three tiers of
state. Health education coordination functions are absent and hence core curricula need to be
developed for the training of midwives, nurses and laboratory assistants, alongside strengthening
the educational institutions. Per-service and in-service training plans are being developed for the
EPHS. The THET / DFID program of technical assistance to the Human Resources for Health
Development, which, initiated in 2011 is getting targets highlighted issues.

EPHS coordination, development and supervision: EPHS pilots are currently being rolled out in the
Sahil, Togdheer and Sanaag regions. The current model of support being provided to distinct clinics
should be phased out of in favor of a more integrated, regional, health system oriented approach, in
which each region has one supporting organization, responsible not only for the HPs, MCHs and
hospitals, but also for the regional and district MoH staff. Training, drugs and medical equipment

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supply, capacity building, rehabilitation and construction of health centers, mobility and vehicle
support and incentives should form part of the essential package of support.

Community participation: Models for community participationparticularly around the
Community Health Committeeswhich must include strong links to the education and water and
sanitation sectors, are being evolved through the existing system and the EPHS. The community
committees and community health worker are intended to provide oversight, ownership and
support functions. Community health works need further support to fulfill their many functions,
which include responsibility for surveillance of epidemic disease and recordation of their activities
at this first level of the HMIS. In addition, as there is no School Health function in MoH, links with
supporting sanitary education need development. Building capacities across communities through
participation to exercise access rights and contribute to financing are vital.

Health systems support components: Health systems support components are designed to
maximize efficiency throughout the health care system, ensuring that sufficient resources are
available for actual service delivery. Major capacity areas to be improved cover: (i) International
Development Association (IDA) coordination, monitoring and evaluation capacity at central and also
at regional levels (where it is currently lacking), including licensing and accreditation of international
assistance and health workers and the establishment of complete database of international
assistance; (ii) health planning, including improvement of the quality of raw demographic data and
information on health care delivery needs (via census) and rationalization of MoH information
streams, data collection, reporting and accounting of health care interventions; (iii) health-
financing, including financing for non-communicable diseases (none at present); (iv) improving
accessibility of healthcare through the development of sustainable and local solutions for equitable
financing of health care and, (iv) strengthening the stewardship (MoH oversight) in the
pharmaceutical sector, including, especially via the development of drug-testing laboratory and a
licensing structure.

Management information system: The functioning of the HMIS system is critical to an effective and
well-managed human resource system. Under the EPHS this utilizes a simple, efficient and accurate
HMIS with standardized tools and protocols. These include (i) a core indicator set and (ii)
standardized HRM management tools; fit for the purpose. Clearly, the development of core training
modules to support HRM management could best be delivered through Training Department, and
the Human Resource Unit under the administration and finance department.

4.2.8 KEY LEGAL AND NORMATIVE INSTRUMENTS AND THEIR SIGNIFICANCE FOR SERVICE DELIVERY
127. A number key documents exist that are pertinent to the health sector in Somaliland, each of
which is outlined in Table 24 below in terms of provisions relevant to the this study. It needs to be
noted however that other key documents including the government MTFF, plans for civil service reform,
budget management support and support to strengthen municipal finances also impact the sector.

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Table 24: Somaliland Legal/Normative Instruments and MoH Service Delivery

Legal Instrument Details Significance for Service Delivery


Somaliland Regions and The Regions and Districts Law (Law The MoH has also decentralized some of its functions to the Regions. Hence, in accordance with Law 23 of 2002, there
Districts Law (Law No: 23 No: 23 of 2002) defines the six are six regions namely: Awdal, Maroodi Jeex, Sahil, Sanaag, Sour and Toghdeer. The Regional Health Director is
of 2002) Regions of Somaliland and stipulates appointed by the DG of MoH. Some of these regions have a type of Tax collection system and are able to generate
their own revenue, provide some municipal services and also contribute to social programs. Under the Draft National
responsibilities are regional level.
Health Policy 2011 (see below) the Government, through its MoH, will follow the decentralization approach of the
government of Somaliland based on Law no. 23. There will be six Regions and 22 districts. MoH will build on this
political framework and form its District Health System.
Somaliland Constitution, The Somali constitution, which was Pursuant to Article 112 of the Somaliland Constitution the administration of health services is decentralized to the
May 31st, 2001 ratified and enacted in 2001, was regions and districts defined by the Regions and Districts Law in so far as they are capable of it. Decentralization of free
comprehensive, visionary and public health service delivery without discussion of the way these services will be delivered is built into the system. In
health this means that hypothetically, a RMO, who is appointed by the DG of MoH, should head every region. The
provided the basis for all the
organizational requirements of the Regional Medical office are similar to that of the MoH structure. A regional office
subsequent educational, gender,
typically has Public Health, Medical Services, Planning and Administration, and Pharmaceutical and Logistics
human rights and local government departments or more often functions to the regional medical officer.
legislation listed in this section of the
report According to Article 17 of the constitution the state shall have the duty to meet the countrys needs for equipment to
combat communicable diseases, the provision of free medicine, and the care of the public welfare. With other words
Somaliland constitutional commits itself to a system of public health service delivery and not a system in which the MoH
functions of steward of the health system, moreover the state commits itself to the delivery of free medicine. This has
important consequences for the financial situation of the state, which boxes itself herewith in a corner of donor
dependency and public service delivery, which might not be the most cost efficient form of health services delivery.
Health Professionals This Law sets up a Commission, Stipulates that all medical graduates (medical, dental, nursing, midwifery, etc.) are to be registered by a commission.
Commission Law (Law which registers medical The registration may be temporary, full or specialist. The Commission is a national one, with representation from the
No. 19/2001) professionals. various professions, but it has also has regional committees. This commission (NHPC) has just recently been set up.
Registration of medical professionals is essential for ensuring the quality of health service provision and allows for
human resource planning in view of further decentralization of service delivery.
Draft National Health The purpose of the policy is to create The Draft Policy outlines MoH key priority areas in improving the health sector as follows: (i) Governance; (ii) Quality of
Policy (2003) an enabling environment for the Services; (iii) Provision of Drugs; (iv) Health Financing; (v) HR; and (vi) Partnership. In view of decentralization of service
provision of socially acceptable, delivery, the policy outlines the following strategy. First, decentralization will be gradual so that the momentum can be
sustained. Government, through its MoH, will follow the decentralization approach of the government of Somaliland
affordable, accessible, equitably
based on Law no. 23 of 2002. There will be six Regions and 22 districts. MoH will build on this political framework and
distributed minimum package of
form its District Health System. Second, MoH shall decentralize to regions and health districts the translation of the
quality health care that responds to policies, strategies and guidelines into action plans (annual action plans and budgeting), routine management of service
the need of the community, delivery points and supportive supervision. Third, for the day-to-day administration of the regions health care, the MoH
addressing the vulnerable and shall establish a RHO headed by a RMO. The RMO shall be a public health medical doctor, appointed by MoH and
marginalized population and reports to the DG. The RMO shall have line functions with the various Directorates of the MoH. The RMO shall have
delivered in a sustainable way authority to hire and fire in the region, and make necessary transfers as deemed fit. Fourth, The Regional Health Board
through a district health service (an informal body created at the regional level) will serve a supportive role, serving as the eyes of the community and
system within Somaliland. representing its interests. The membership will be selected locally and ratified by the Hon. Minister of Health. Fifth, in

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like manner, a DHO will be established by the MoH for the day-to-day administration of the districts health care and
shall be headed by a DHO. The DHO shall be a public health medical doctor or senior health professional with public
health training and appointed by the MoH. Sixth, similar to the RHB, a DHB shall be established, members selected
locally and ratified by the Hon. Minister. Finally, regulation of health profession is to be strengthened. Government has
the mandate to protect the health of the people by regulating the health industry through registration of medical
graduates, accreditation of health training institutions, licensing of public and private sector health facilities and
ensuring compliance with medical ethics. For the MoH, this will be done through the National Health Professional
Council (NHPC), which is an autonomous regulatory body. The 2001 Constitution provides for the establishment of the
NHPC under Law No 19 of 2001. Membership of the NHPC Board will be nominated by the various Medical and Allied
Medical Associations and ratified by the Hon. Minister of Health. For the day-to-day administration of the NHPC, the
Hon. Minister of Health shall appoint an Executive Director who shall be a senior and experienced medical doctor.
Essential Package of Phase I of the EPHS services in The EPHS has major implication for addressing horizontal and vertical delivery imbalances whilst building on existing
Health Services Somaliland seeks to transform the public and private arrangements, with a strong community focus that will lead to a fundamental shift in the organization
way essential health services are and management of delivery. The four-tier system works well for the center-regional-district structure of state, and
once functional assignments have been clearly established, local governments role in supporting a bottom up approach
provided. Not only does the EPHS
to delivery is vital. The main implications for this assessment include:
define (i) four levels of service
A clearly defined, objective financing and coordination model that delivers essential services, within existing
provision (ii) ten health programs and systems, with a clear financing model for roll out;
(iii) six core management Four levels of service for the public system support around which limited state financing resources can be
components, in providing such an aligned, to maximize impact across the ten program areas;
approach it seeks to kick-start Development of six essential management and support functions that will build capacities across the entire
current public provision functions delivery system.
around a clearly defined four tier
delivery structure (PHU, HC, RHC and
H) which provides the foundation for
consolidation of the existing system,
and a close relationship with NGOs
and community groups and the
private sector.
Somaliland Non- The Somaliland NGO Law, was According to the NGO law an International NGO is required to inform and coordinate its activities with the Government
Governmental enacted into Law on February the 2, of Somaliland, informing it of its financial situation, seeking affirmation for its proposed intervention and allowing the
Organizations Law (Law 2010, and clearly stipulates the need government of Somaliland vetting of the staff. The Government of Somaliland, therefore, reserves the right to
information and primacy of all activities on its soil. This law requires the MoH to set up a coordination cell and start
No. 43/2010), signed to regulate non-government
coordinating the health activities on a Hargeisa level (currently in process). A Development Assistance Database (DAD)
into law by Presidential organizational activities, both
has been developed by the Ministry of Planning and distributed to INGOs to complete. Furthermore, at central level, a
decree No 82/112010) national and international, in line quarterly national health and nutrition coordination meeting takes place and brings NGOs to dialogue with MoH on
with other provisions of the activities completed and those planned for the next quarters.
Somaliland Constitution.

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4.3 MOH ABILITY TO DELIVER SERVICES EFFECTIVELY

4.3.1 VERTICAL, HORIZONTAL AND OTHER SERVICE DELIVERY ARRANGEMENTS
128. Service provision occurs at all four levels, and includes both state and non-state actors, increasing
the need for better coordination and resource management. The sector used to be heavily fragmented
but with the adoption of the EPHS as the cornerstone of the new health system, both vertical and
horizontal delivery structures, mandates and functional assignments are very much clearer. However,
even though the service delivery arrangements for the system are improving, the sector remains heavily
under-financed and both NGO and private activities remain poorly regulated.

129. The organization of the sector itself, across the four layers of delivery, is well defined and easy to
understand. What is lacking is the capacity at all levels to identify a clear vision for the sector, to costs
the service delivery models to be deployed and to roll out the EPHS into all regions, and to build the core
provision capacities to support sector modernization and to better regulate non-state actors. The
ongoing re-organization around new functional mandates also puts the sector in a state of flux, and
fiscal constraints at the level of local government limit the implementation of decentralization laws.
Moreover, the proposed new functional structure for the Ministry shows a progressive move beyond
provision to production functional assignments, providing the foundation for public health care delivery.
Where the proposed organizational structure for the MoH appears weak is in the following areas:

Regulatory standards, oversight and enforcement of private health care delivery systems;
Aid coordination and NGO quality and practice compliance monitoring;
Clarity on the role of vertical sector and local governments in health care management;
Service delivery agreements between the sector and local government;
Innovation for health financing and health insurance schemes for non-state employees; and,
Functions for leading-change management.

130. Outside of primary health care provision there are vertical health programs, financed by the
international community that by and large circumvent central government; and these programs are
channeled through regional and district structures. There is also substantial investment by non-
government organizations that maintain health clinics and other facilities, most of which are managed
independently from the state system. Finally, there are substantial private sector delivery capabilities,
largely providing pharmaceutical services, which are the backbone of the current delivery system.

131. Tracking health sector financing arrangements over the course of the past decade yields
significant insights into de facto health policy in practice (See Figure 17 below). According to research
undertaken, over the course of the past decade (20002009) the majority of funding (21%) was
allocated to emergency programs, with the rest distributed between TB, HIV, malaria (15%), primary
health care (14%), nutrition (13%), the polio program (12%) and health system strengthening activities
(10%). The overall funding reflects donors preference towards vertical rather than horizontal programs
and to stemming what are clearly high priority health related concerns. Whilst these are
understandable given the need to meet the demands on the ground and the lack of state delivery
systems, and also reflect humanitarian budget lines which are often easier to tap, it is clear that as the
capacity of the government increases, and its role matures, the nature of external assistance will need
to change in line with the emerging approach.

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132. Since the beginning of Somalilands independence, as can be seen from the macro-fiscal analysis
provided at the beginning of the report, government finances have changed dramatically. The draft
MTFF provided by the MoF, which needs to be financed, shows a considerable planned increase in state
health sector financing, which would begin to balance the sector across public and private spheres. To
date however, the current mode of operation of the central MoH has necessarily been heavily shaped by
external financing and the complex coordination arrangements that emanate out of Kenya where the
international community is based. Given the weak fiscal dispensation, relations between the central
(sector) and regional, district and village structures of delivery have been undermined by lack of
financial flows from the center, which have also undermined loyalty to the dictates of central
government.

133. International Service Provision: International support for the health sector in Somaliland is hugely
critical to meeting national and international MDG targets. In addition to advisory support, the
international community also runs vertical programs, accounting for 40% of overall ODA. 21% of funding
for horizontal programs is allocated for emergency programs, with only 10% devoted for strengthening
the health system (at regional/district rather than central levels). DFIDs supportwhich also leads the
THET program of Human Resources Development (HRD)rightly focuses in the EPHS and provides for
maternal, reproductive and neonatal health (including safe delivery, family planning and FGM) and child
health. Actions to improve the provision of services include training of staff, improving health clinics,
providing family planning, ante natal care and safe delivery, caring for newborns, giving vaccinations,
preventing and treating pneumonia, diarrhea, malaria, TB and AIDS, as well as screening for and treating
malnutrition. Providing the interventions requires support to the six components of the WHO HSS
model.

134. Vertical Program: The Polio eradication program is sponsored by several international donors, and
is jointly coordinated and implemented by WHO and UNICEF. Expanded Program on Immunization:
Funding for EPI has been stable from 2009 onwards. A sharp increase in immunizations between 2008
and 2009 is noted due to the implementation of child health days campaigns across Somalia by UNICEF
and WHO in partnership with local authorities and NGOs. The child health days package includes
immunizing every under-five child against measles, polio, diphtheria, whooping cough and tetanus, in
addition to provision of Vitamin A, ORS and Aqua tab Water Purification Tablets and nutritional
screening for referral of malnourished children to feeding programs. Women of childbearing age are
immunized against neonatal tetanus. Reproductive Health: Overall investment in reproductive health
remains low given very high mortality (1,400 per 100,000 women), high total fertility rate (6.4%), low
institutional deliveries (9%), and low prevalence of modern contraceptives (1%) (UNICEF 2010). Funding
seems insufficient to target the enormous challenges in the reproductive health area.

135. Nutrition programs: Malnutrition is a major public health problem in Somalia, affecting hundreds
of thousands of children and severely undermining future productivity, long-term economic
development, and poverty reduction in the country. Malnutrition rates in Somalia rank among the
highest in the world and call for a significant response, as funds allocated over the past decade (13% of
total aid financing to Somalia) do not seem to have produced tangible results.

136. Emergency programs: Emergencies programs accounted for 21% of all financing in between 2000-
2009, thus being the number one category to be financed in the health sector. Many activities in the
sector are conducted in emergency mode to confront the consequences of either natural or man-made
disasters. Droughts, floods, conflict and mass displacements have been the norm in the past decade.

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137. Horizontal Programs: The category horizontal programs bundles financing for hospitals, primary
health care and health system strengthening. Health system strengthening is a code provided by
numerous agencies (e.g. EU, ECHO, DFID, Italian Cooperation and the GFATM) to support an array of
issues including infrastructure, human resources, equipment, treatment protocols and manuals, as well
as training and development. Financing for horizontal programs increased four fold from 2000 to 2009
(source World Bank). This increase in absolute terms, however, did not translate in an increase in
relative weight versus other programs within the annual overall aid envelope. Financing for horizontal
programs actually decreased from 37% in 2000 to 33% in 2009). 21

138. Local Government Support for Health: Weak local revenue mobilization, particularly for Grade C
and D Districts have meant that mandated devolved to local government following law 23/2002 simply
could not be financed. Where the revenue base of districts has been better, district administration staff
include an establishment of up to 300 people or more, and in the case of Berbera District (Grade A
District), it has established a Health Department as it had the finances to be able to support such a
structure. Where districts have only 20-30 staff, such functional structures exist on paper only. The only
way to strengthen the existing fiscal transfer arrangements from central government to local
government, and assess options for establishing sector categorical grants.

4.3.3 CURRENT CAPACITY TO DELIVER THE SERVICES REQUIRED
139. The MoH in Somaliland is currently not functionally strong enough to cover the needs of the
health sector. Nevertheless, progress has been made in the establishment of the health system with the
development of a legal basis for licensing and accreditation of health workers, by prioritization of
development of curriculum and functional profiles in view of HRD, as well as the initiation of discussion
on national health policy, facilitated by THET.

140. The functional capacities of state structures are slowly evolving and considerable effort will be
required over the course of the next decade to build policy, planning, budgeting, and oversight and
coordination capacities. Priority actions likely include agreeing on the core service delivery models,
costing the sector, increasing budget allocations, creating standards for private delivery and
strengthening enforcement capacities. In many areas core functions are either absent or preformed in a
piecemeal way, and this includes health financing, coordination and registration of International Non
Governmental Organizations (INGOs), licensing, accreditation, drug quality control, health legislation,
human resources planning, health planning and health education. A number of major shifts are required
to allow MoH to fulfill its mandated functions, and these include:

Providing greater support for strengthening leadership, management and coordination capacities,
including short and focused study tours to visit regional country approaches, in Rwanda and
Ethiopia, in-service training etc.;
Shift the coordination center from Kenya to Somalilandsequentiallyas capacities are built and
on-budget sector financing is increased;
Leverage the gains being made in formalizing the sector through the EPHS into other regions,
building on lessons learned in Phase I, with a focus on strengthening regional, district and
community functional capacities;


21
In the past decade, 47% of all financing for horizontal programs went to primary health care, with 33% to hospital care and
20% to hospitals. A breakdown of expenditure in horizontal programming shows that the largest proportion was spent on
salaries (34%), followed by supplies and equipment (23%), operating costs (20%), training and capacity building (19%), and a
smaller portion to guidelines and workshops (3%). Only 1% was allocated to Infrastructure.
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Progressively formalize the EPHS service delivery model, bringing NGOs into key regional and
district level roles, as a vehicle to benefit from the different comparative advantages of the actors;
Find a way, by developing essential service clusters, grouping health, education and water and
sanitation support programs, within a strong community based approach;
Strike an acceptable balance between curative and preventive care;
Progressively move towards a health systems approach, to balance vertical programming;
International organizations such as UNICEF, WHO, UNFPA, the EC, the World Bank, and USAID will
need to have a stronger footprint on the ground to support the deepening of the current approach;
and,
Other capacity building support measures include (i) work shadowing (ii) on the job training linked
to specific job functions and deliverables (iii) expanding opportunities for distance learning which
have been a strong source of professional upgrading (iv) running modular capacity building in the
form of a series of practical workshops in Somaliland and (v) in-country technical support to work
with and support senior management teams in carrying out their duties (Mentoring).

4.3.4 GENDER, HUMAN RIGHTS, INSECURITY AND DROUGHT IMPACT ON SERVICE DELIVERY
141. Security: Growing insecurity has reduced the footprint of many NGOs and has limited service
delivery. Somaliland appears relatively stable and secure, which offers opportunities for improving the
provision of health services even in contested territories, such as Sanaag and Sool. Thus, remaining
practices of remote management of programming and lack of coordination between stakeholders, due
to security considerations, are unjustifiable and new approaches should be sought to allow for exploiting
opportunities for straightening the health system in Somaliland.

142. Gender: In terms of balanced public sector staffing, field observations indicate that in Somaliland
female personnel staffs both traditional lower (midwives, auxiliary midwives and traditional birth
attendants) and senior roles (physicians in charge, hospital directors and even Vice-Minister). This offers
opportunities for further gender mainstreaming in the health sector. However, international assistance
programming should be cautious in applying a gender bias, as is the case with UN secondary health care
support, which currently under-serves male population.

4.3.4 SUMMARY TABLE OF EXISTING AND PROPOSED FUNCTIONAL ASSIGNMENTS FOR HEALTH
143. Table 25 below provides the results of this assessment in terms of sub-sector production and
service functions, and present and future implementation modalities, and their justification.

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Table 25: Definition of Functional Assignment to Different Levels of Government: Ministry of Health

Present Implementation Modality Future Implementation Modality Future Justificati


Implementa on
tion
Timeframe
(Years)
Sub-sector Functions Central De- Delegated Devolved Central De- Delegated Devolved 1 2- 10
concentrated concentrated 5
Service Health Coordination Not done Not done Not done Not done Coordination Stronger X Technical
Production Planning international international regional M&E Assistance
assistance assistance pending:
Planning and Not done Not done Not done Not done Health Stronger X DFID
policy system regional M&E interventio
Developmen planning n planned
t
Monitoring Present but Not done Not done Not done Oversight & Stronger
& evaluation not functional Integration regional M&E
HMIS Synthesis Synthesis Synthesis Synthesis
regional district regional district
reporting reporting reporting reporting
Human Licensing & Starting up Not done Not done No centralized Standards Stronger X Technical
resources Accreditatio accreditation setting, regional M&E Assistance
development n through licensing and THET / DFID
- Curriculum National accreditation
Development Health
& Training professional
council
Health Health Not done Not done Not done Not done Health Stronger X Technical
Financing financing financing regional Assistance
strategy strategy Coordinative needed.
developmen developed role, M&E DFID
t. planned
Pharmaceutic Drugs Not done Not done Not done Not done Central drug Stronger X Pharmacist
s licensing and testing regional M&E needed in
testing facility MoH
(Pending
from
Diaspora)

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Table 25: Definition of Functional Assignment to Different Levels of Government: Ministry of Health

National Starting up Not done Not done Not done National Coordination X See above
Drug Drug at local level
Licensing Licensing information
Authority Authority of central
level

Health Primary Some training Regions fully Standards Regions fully X One region
Services Health Care autonomous setting autonomous. one partner
M&E,
stronger
oversight and
licensing
MCH Little control I Central Local X
or information standards implementati
setting on
Hospital No control or Central Local X
Services information standards implementati
setting on

Administratio Accountancy Centrally Regions get Oversight More local X


n & Finance and managed pay roll data discretion
administrati from the
on center
through
Dahabshiil
Logistics Not done Note done Not done Not done See above. More local X
Logistics discretion
should live in
its own unit
Regional Regional Little Little Data More local X Should be
Health coordination functional functional synthesis in discretion. supported
cooperation Better by the Local
with HMIS. streamlined Partner as a
Regional coordination matter of
Health policy
Officers
should
continue to
report to DG

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Table 25: Definition of Functional Assignment to Different Levels of Government: Ministry of Health

Communicabl TB Control Barely M &E, Implementation Coordination More X


e diseases Training through local oversight
control implementer. from
Barely Hargeisa
coordination
Malaria Barely M &E, Implementation Coordination. More
control / Training through local M&E oversight
Vector implementation. from
control Hargeisa
Public Health Immunizatio Some training, Managed Coordination, Local
n Some through Targets management.
Vaccination oversight, international setting
some partners.
coordination
Sanitation Little Coordination, Local
functional Targets management.
setting
Social Little Coordination, Local
Medicine functional Targets management.
setting
Emergency Little Central policy Local
Preparednes functional & management.
s contingency
planning
support
Source: UN Guideline on Decentralization to Local Government (January, 2010)

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4.4 PROPOSED UNBUNDLING APPROACH
144. The proposed approach to unbundling the sector is heavily influenced by the EPHS four level
functional structure, the draft National Health Policy and shifting balanced from provision to
production functions (see the review of assignments discussed with MoH above and in section 4.6
below). According to the draft national health policy, the focus of future investment includes the
formulation, updating and dissemination of laws, regulations and design of enforcement mechanisms
related to the following:

The development and management of the national health system (National Health Act);
A strong focus on decentralized service deliverywithin the framework of the EPHSgiven the
central focus of PHs as the primary point of contact, and their linkage with HCs, RHCs and hospitals;
plus sector specific categorical grants;
The registration, manufacture, importation, storage, sale, distribution and dispensing of
pharmaceuticals, vaccines, health equipment and appliances, and other medical supplies;
The control of public advertising with negative impact on health and health care, e.g. Smoking;
Stigmatization and denial due to ill-health or incapacity; and,
Law enforcing the National Health Policy and other relevant provisions.

145. Whilst the EPHS is a central focus of the new Health Policy, and given that this policy has
assigned functional mandates across the four layers of delivery, any sector unbundling must be in line
with this approach to a large extent. In other areas, where coordination of international cooperation
partners and NGOs is required, as well as where oversight and enforcement of the private sector
requires considerable strengthening, the location of provision functions must be clearly defined. In this
regard regional offices play a critical role. Furthermore, given that lack of fiscal resources are limiting
the expansion of the existing system, that there are five key sources of financing for the current model,
any unbundling of the sector must breath seek to maximize the mobilization of financial resources at the
district level in particular. Key strategic observations with implications for unbundling are as follows:

The new draft Health Policy and ongoing functional restructuring of MoH provides significant
opportunities for clarifying functional assignments within new structures, across the three tiers
of government and the four layers of the existing health services;
Given that the EPHS largely defines the functional assignments across the entire health system,
starting with district level primary care and an upstream referral system, and the proposed
functional structure of the MoH, the main role of local government is likely to be best focused
on financing, bottom-up oversight, enforcement and coordination functions only;
Any system must be built from the bottom-up and top-down, building from PHUs, to the HCs,
the referral health centers and to hospitals;
Given the primary role played by the private sector, as the de facto back-bone of the current
system, yet the risks of poorly regulated health practices, regulatory oversight and compliance
capacities need to be urgently established;
Given the weak financial and human resources in Grade C and D districts in particular, any
unbundling needs to anticipate the weak capacity in certain district and investments therefore
need to be calibrated accordingly;
The particular focus on how to deliver services to the socially excluded must be central to the
health policy; alongside commitment to clustering health, education and water and sanitation
services to maximize monopolies of collective provision;
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Health financing, improved budget formulation and execution capacities and aid management
must be forged from the center to the regions;
Building the six management functions of the EPHS is a priority, but this needs to be
supplemented by investment in leadership, management and coordination training of senior
cadre within the current system;
Costing the sector, setting services delivery baselines by coverage and catchment populations,
as well as establishing sector financing arrangements to make external resource fungible to the
priorities established within the 2011-2015 Health Strategic Framework is vital to support the
harmonization and alignment of international support, whilst encouraging greater government
ownership and responsibility. The proposed trust fund for Somaliland would present such an
opportunity; and,
Developing viable pilots to meet the health needs of nomadic communities who are ipso facto
excluded from state, NGO and private sector outreach.

146. In unbundling the production and provision functions, greater clarity regarding the functional
assignments of central, regional, district and community levels has become clear, as has the reasons
that local governments are often unable to meet the functions as outlined in Law No. 23/2002.
Moreover, given that the EPHS has already been established around (i) four levels of service provision
(ii) ten health programs and (iii) six management components, and given that the main functional
assignments in support of this cornerstone policy have already been clearly defined, then the proposed
unbundling of functions must build on this framework whilst also strengthening policy, planning,
budgeting/financing, regulatory and oversight capacities at the center and regional levels. Given the
ongoing functional restructuring, a leading-change management framework is also needed, that builds
senior leadership capacities in the public sector, around the new service delivery model.

4.6 REVIEW OF FUNCTIONAL ASSIGNMENTS
147. Table 25 above reviews the functional assignments for the MoH based on discussion with MoH
Staff. Clearly, there are four functional systems to be considered:

The vertical MoH provision and limited production assignments;
The four-tier EPHS system which provides primary care as part of the wider system;
The District Council assignments which are poorly defined in Law 23/2002; and,
The private sector.

148. Table 25 below provides a summary of proposed functional assignments across the current
service delivery framework for these four categories, building on the emerging system and practices,
which could be further developed and reflected in the draft National Health Policy. This allocation of
proposed functions, builds on the results of Table 26 above, as the basis for creating clarity of mandate.
This framework would need to be discussed and further disaggregated by core service delivery
stakeholders, once service delivery models have been established.

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Table 26: Possible Health Production and Provision Assignments for Somaliland
Types of Decision-Making Upstream Functions Downstream Function

Sector Provision (Management)


Policy Making - Drafts national health policy, - Contributor / Evidence /
guideline, directives and relevant Information sharing
standards
- Established state health policy goals,
vision and objectives
- Drafts new Health Act
- Uphold international treaties and
conventions
- Establish mandates of RHO, DHO
Planning - Formulates Strategic Health Plan - Regional supervisory team
- Establishes service delivery baseline implements national health policy;
- Undertakes Sector Costing - RHO, DHO and CHCs provides inputs
- Established medium term results and into national planning
expenditure framework - Municipalities Integrate local health
- Move from contemporary facility plans into District Development
levels to EPHS facility structures Plans;
- Vertical and horizontal programs - Plans district health facility priorities;
- EPHS sequencing - Physical infrastructure needs
- Address social exclusion in planning assessment
Budgeting & Health Financing - Formulate state budget - Plans and approves the district
- Set recurrent, O&M and capital health budget
budget requirements; - Sets staffing needs, within budget
- Comply with statutory budgetary limits
and fiduciary management - Allocates municipal resource,
requirements including municipal and district
- Develop cost-recovery and health contributions to the EPHS
financing regulations - Support community health fund
- MTFF/MTEF development establishment;
- Off-budget harmonization and - Oversight of NGO activities;
alignment - Taxation of private health care
- Physical infrastructure needs providers/services
- Ensure donor financing
Execution/Procurement/HMIS - Regulatory Oversight; - RHO staff provide policy, planning,
- Budgetary and payroll compliance financial, supervisory, personnel and
- Procurement of goods, works and technical support services for all
services health facilities in a region. RHO
- Health workers pay, Maintenance maintains a Regional Medical Stores
and Supervision (RMS)
- HMIS maintenance - DHO
- Drug management - Community participation
- Coordination
Health Research/Reporting - Establish service delivery baseline - Weekly communicable disease and
- Surveys of service coverage and surveillance reporting;
catchment populations
- Undertake medical diagnostic
studies
Regulatory - Development and enforcement of - Day-to-day standards enforcement
Oversight/Supervision state educational standards, norms, and monitoring of health facilities
practices and principles. and service standards
Sector Production Functions
Primary Health Units - Sets standards and operating - Support promotional, preventive and
procedures and principles; curative activities;
- Location of PHUs based on - Prevention of disease and promotion

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Table 26: Possible Health Production and Provision Assignments for Somaliland
Types of Decision-Making Upstream Functions Downstream Function

demographic and other variables; of health through nutrition


- Financing arrangements; education, health-seeking behavior,
- Drugs and equipment supply vaccination, mosquito nets and
- Staff pre-service and in-service improvements in water and
training sanitation.
- Work with Community Health
Workers and Community Health
Promoters
- Community Health Committee
establishment
- Core Programs 1-6
Health Center - Sets standards and operating - The health center is the key unit of
procedures and principles; the essential package, at which all
- Location of PHUs based on core programs are carried out. It is
demographic and other variables; the first level at which obstetric
- Financing arrangements; services are provided, including ANC
- Drugs and equipment supply and facility-based deliveries with
- Staff pre-service and in-service qualified midwives;
training - Core programs one to six are all
applied in their entirety at the health
center, except for a few
interventions that only take place at
referral health center level.
Referral Health Center - Sets standards and operating - Referral Health Centers and district
procedures and principles; hospitals carry out all core programs
- Location of PHUs based on one to six and add additional
demographic and other variables; programs seven to 10 for treating
- Financing arrangements; people with mental illness, chronic
- Drugs and equipment supply disease and dental and eye disease
- Staff pre-service and in-service via outreach visits by specialists from
training the regional level.
- Maintenance of physical facilities - The Regional Health Office is
responsible for supervision of HCs
and RHCs.
Hospital - Sets standards and operating - The hospital ensures 24-hour quality
procedures and principles; inpatient referral health care, with
- Location of hospitals; qualified nurses, midwives and
- Financing arrangements; doctors permanently in the hospital
- Drugs and equipment supply
- Staff pre-service and in-service
training
- Maintenance of physical facilities
Human resources - Promote recruitment and retention - Oversight of staff management
development of professional staff; - Staff recruitment and management
- Classification and clarification of the - Conduct local training
workforce structure and size - Dismissal and complaints
- Pay and grading - HRIS reporting
- Terms of service
- Career management and succession
planning
- Pre and in-service training
- Establish training curriculum for
RHO, DHO and CHW
Health Financing - Health financing policy and - Local and community financing
arrangements; - Revenue mobilization
- Fiduciary risk management and - Fiduciary risk management
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Table 26: Possible Health Production and Provision Assignments for Somaliland
Types of Decision-Making Upstream Functions Downstream Function

framework
Pharmaceutics - Policy and regulatory standards; - Regulatory oversight and standards
- Accreditation and certification; enforcement
- Import licenses - School supply
- Standards enforcement
Regional Health Coordination - Coordination of regional hospitals - Coordination of community health
Unit - Coordination of district health services
services
Public Health - Promotes public health system - Promotes public health system
- Sets state public health policies and - Sets state public health policies and
plans plans
Gender - Sets standards against gender - Combat gender based violence
discrimination and gender based - Application of gender based
violence recruitment policies
- Balanced work force - HRIS reporting
Private Sector - Sets rules and regulations - Oversight
- Taxation - Regulation
- Oversight, compliance and - Standards enforcement
complaints
- Legal action
Aid Management - Aid management and coordination - Coordinated district level and
system development community based NGOs

ADDITIONAL ADJUSTMENTS TO PROVISION AND PRODUCTIONS FUNCTIONS
149. In addition to the proposed investments to strengthen the provision functions of central and
regional structures, this study identifies a number of additional adjustments required to strengthening
health systems around the core functions. These include, but are not limited to:

Need for significant percentile increases in health sector spending towards to 8-10% range;
A donor trust fund must be established to defragment and de-projectize donor support to the
sector;
Need to undertake a full costing of the health sector, within the new MTFF produced by MoF,
around which sector financing and expenditure plans be established and the EPHS progressively
rolled out;
Need to urgently cost the EPHS roll out to all regions, as a means to increase state financing and
ring-fence external donor support;
Whilst identifying a lead donor for the health sector may be difficult, it was achieved in Afghanistan
(the assessment team led the original aid management framework in Afghanistan with lead donors
determined by level of financial support). Options should be explored with the MoF;
Screening of national and international NGOs in regions not covered by the EPHS, with a view to
laying the foundation for future roll out; and,
Consideration be given for graduating EPHS health kits, over time, to include non-essential items.
4.6 HEALTH SECTOR PROPOSED NEXT STEPS
150. With such limited public sector financing for the sector, and with the EPHS providing a strong
framework for primary delivery, through even this needs to be rolled out in to new regions, the key
role of the MoH should be in directing policy, undertaking sector planning (which involves regional

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and district structures), in budgeting and regulatory oversight and enforcement. Despite significant
gains and Governments commitment to place health at the top of the NDS priority list, a number of
other high priority steps need to be undertaken over the course of the next 2-5 years. These include:

The 2001 National Health Policy needs to be clear (which it is not) as to the roles of the MoH and
local governments;

In the validation workshop H.E the Minister of Health agreed that the 2011 National Health Policy
needs to be clear on the role of Local Government from a functional assignment point of view, and
that local governments should adopt a percentage rule for support the health sector. A
collaborative discussion therefore needs to take place between the Ministry of Health (MoH),
Ministry of Interior (MoI) and Local Governments to agree functional assignments and how best to
consolidate central and local government finances. A set of guide functional assignments are
outlined here to assist government in such deliberation;

In relation to health service provision, Law 23/2002 needs to be revised to remove ambiguities in
relation to health functional assignments, with clear functions being allocated between the sector
and LG based on a cost-sharing arrangement; to be formalized in due course. Grade A districts have
built up Social Service Directorates and Berbera has established a small health department, and
increases in local government revenues in recent years no calls for the formalization of health care
financing between the two entities;

Local Governments appear committed to determining the cost basis for LG support to the sector,
with a number of heads of LG hinting at a 5-6% budget rule for the sector. Such a move could be
supported by reciprocity from central government and pooled financing approaches developed, to
include financial flows from the District Development Fund;

It seems logical to move progressively towards a functional (policy and program based) health
budget around which donors can provide and coordinate support;

Rolling out of the Essential Package of Health Services (EPHS), the district model, is perhaps the
main priority for the sector, and target districts (including in Sahil and Togdheer regions) for Phase I
roll out would need to be agreed, alongside drives to improve regulatory oversight of the private
sector, which remains the backbone of the current service delivery arrangement;

Successful piloting will require that selected districts have the minimum capacities (fiscal and
human resourcing) to sustain their involvement in delivery, implying an initial focus on Grade A
districts, where fiscal resources support such an outcome. However, given the need to extend
service delivery out into Grade B, C and D districts, pilots will need to be carefully developed
reflective of the lower capacities at the this level of LG. Ideally, fiscal imbalances will be
progressively removed and consolidated LG budgeting developed, to widen the resource base,
including linkages with the district development fund;

It seems logical to consider piloting sector categorical grants for health care provision. The aim
would be to review the main funding channels (central government, local government, donor trusts
funds, the District Development Fund) and to see how targeted health sector grants from donor
trusts funds can be used to support strengthening of district level provision;

Establish and cost a service delivery baseline and set budget ceilings for 3-5 years based on a MTEF
including wage and non-wage recurrent costs, operations and maintenance and capital

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investments, but to include non-MoH resources made available through local government
consolidated budgeting; and,

Establish a set of standards and accreditation framework for the private sector (pharmacies) as well
as best institutional options for regulatory enforcement.

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-5-
WASH Sector
Assessment Findings

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QUICK SUMMARY OF WASH SECTOR FINDINGS



1. The WASH sector in this report is addressed by looking separately at each of its components, i.e.
water supply, wastewater management, solid waste management all distinct sectors, and hygiene
as a cross-cutting function.

2. The line ministry for WASH is mainly the Ministry of Mines, Energy and Water Resources
(MMEWR), which covers all service production functions as conferred by the National Water Law,
which are practically all regulatory functions-but developed for water supply only. MoH is also co-
responsible for hygiene, as are the DCs. A National Water Policy and Strategy (2004), are also in
place, quite modern and advanced in their vision, stipulating that the policy and regulatory
rolesi.e. service production functions- are located at the center (MMEWR) while service delivery
functions should be carried out by local government. This supports Law No. 23 (2002), which assigns
such roles to the local governments, in spite of ambiguities in its language.

3. There is no policy, strategy or regulatory framework for Solid Waste Management. Similarly, there
are no MMEWR-based programs to conduct Hygiene-related activities, which largely fall within the
promotion of hygiene among the population. In practice therefore, the service production functions
are poorly materialized, as the regulatory framework for water is not complete (e.g. in relation to
pricing), not developed for wastewater and also not developed for solid waste management.
Oversight functions are largely omitted, to start with water quality compliance and service
standards. The reasons relate mainly to lack of staff, lack of qualified staff, and lack of financial
support and material base. In addition, the Government does not provide for capital investment,
which is covered by donors, and in part by the private sector (in water supply only).

4. Service production functions in water supply are performed by the private sector and the public
sector but heavily dominated by the private sector. Large parts of Somaliland (nomadic areas) are
uncovered by the current delivery system.

5. There is no service delivery role in wastewater, which is basic, with on-site or off-site facilities,
provided individually by households, no networked systems in place and no treatment. Solid waste
management is carried out in a highly rudimentary way, only in some parts of the larger cities, by
the local government district and in few cases by private operators. Hygiene activities are also
carried out by local government but are limited by revenues. Below follows the description of roles
for each level of government and the private sector.

6. Central Government (MMEWR)
By law, is responsible for service production functions policy, strategy, regulatory framework
and oversight.
Provides for contracting out service delivery and thus coordinates with so-called Water Agencies,
which are private or public-private companies engaged in service delivery for water supply only.
In practice, engages in service delivery (again, only water supply) through extensions of the
Water Resource Department into regions. The service provided is very basic, consisting on
emergency repairs only. Incompatible with the regulatory role and highly ineffective. These
departmental extensions are expected to assume also a regulatory oversight role.
7. Regional Government Role
There is virtually no role for the regional government in service delivery in WASH. Except that the
MMEWR departments are deemed administratively responsible to the regional governors,
though their work is totally related and reflects back their center at MMEWR.

8. Local Government Role in WASH as identified in the course of fieldwork
Law No. 23 requires engagement on service provision for WASH.
In reality, local governments at the district level have no role in service delivery in water supply
and lack staff and equipment to carry on such services at any rate.

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Have no role in contracting out with the private sector, neither in monitoring.
They provide some basic service for Solid Waste Management.
Hygiene promotion activities, while being under their remit, are carried out without proper
planning and generally omit addressing the IDP and nomadic population.

9. Village-Community Bodies
Water Committees are entirely voluntary structures, in charge, by the community (not the law)
to administer water supply facilities.
In practice, they only can intervene in emergency cases, mainly serving as conduit of complaints
from the community to NGOs/INGOs for assistance.
While Village Councils are partaking in District Council meetings, their role is simply to transmit
complaints regarding public services, including WASH.

10. Private Sector Participation in Service Delivery
Engaged through the MMEWR, the so-called Water Agencies operate the water supply network
systems on the basis of a hybrid contract between lease and concession, that creates serious
ambiguities, especially regarding asset ownership.
They invest part of their revenues to build infrastructure, as per contract. However, they lack
rigorous financial control by the Government.
Serve mainly urban areas (estimated 40% of urban population). Level of service is substantially
better compared to the service provision of alternatives mentioned above.
Operates in absence of proper regulation and virtually no monitoring. Prices charged are
abnormally high, but accepted by MMEWR. Another concern is the usage of water resources (all
are either deep or shallow wells, or Berkhads), leading to depletion of resources.
There is no provision for wastewater services.
Very weak evidence of private sector participation in Solid Waste Management. When existing, is
very marginal and concerns collection services only, in selected parts of cities.

11. The Proposed Functional Assignments in WASH for the MMEWR and the DCs are as follows:
MMEWR should only engage with service production function. Needs to strengthen substantial
all capacities related to regulation, to start with revising the PPP contracts. The current service
delivery function, as it exists now should be demoted.
DC should be involved in water supply, through providing O&M to (i) village systems and, (ii) un-
served urban areas, as new infrastructure is built in such areas (mainly by donors).
The role of the water committees would be reduced to supervision of service agreements (with
district departments/public company) and assisting with cash collection, as maybe needed.
In addition, as applicable, and as needed, district government should provide for WASH services
by contracting out private operators, and fulfilling all the oversight roles implied by such action.
District governments need to upgrade thoroughly their service delivery capacities, with WATSAN
being organized in a mid term through public enterprises owned by the district.
District governments need to upgrade their role in Solid Waste Management and Hygiene
promotion, in line with the powers conferred by the organic Law No. 23.
Participate in bottom-up district WASH planning.

12. There are other assignments that could be outlined, but this would depend on the service delivery
model being supported (PPP, community, public provision), and these need to be defined. However,
the main thrust of Government must be on setting WASH policy, planning, budgeting and regulatory
oversight and enforcement of guidelines and building core staffing capacity to have oversight of PPP
and other sector delivery activities.

13. Costing will be critical to increasing budget allocations and demonstrating to government the need
to better govern off-budget contributions.

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5. WASH SECTOR ASSESSMENT FINDINGS

5.1. INTRODUCTION
151. The WASH sector research on Somaliland is mainly informed by evidence from the field,
and a number of legal and policy documents produced by the Somaliland authorities, as well
as the extensive analytical work done by JPLG in support of the decentralization and other
research. The research benefited particularly from insights obtained in the course of over three
weeks of intensive fieldwork in the course of which were conducted more than 35 interviews
and meetings, one focus group, field visits and visits and documentation research. Interviews
and meetings were held with UNICEF both in Nairobi and Hargeisa. Among other, the research
benefited from meetings with Minister of Mining Energy & Water Resources, Director General of
Ministry of Planning, Director General of Ministry of Mining Energy & Water Resources, Director
of Water Resources of Ministry of Mining Energy & Water Resources, Head of Water Resources
sub sectors, Regional coordinators, Vice Chairman of Hargeisa Water Agency, Mayors of
Hargeisa and Gabiley, INGOs, NGOs. Also meetings and consultations were held with nomadic
populations and local communities.

152. In line with good practice, the WASH sector is best structured and managed if a simple,
yet fundamental prerogative is observed: Clear division of production functions policy and
regulation from service delivery. It is therefore straightforward to apply such assessment
criteria to an unbundling exercise and that was done in the case of the review and
recommendations set forth in this report for WASH Somaliland, taking note, of course, of the
specific country conditions.

153. The evidence and analysis reveal that while the legal framework in Somaliland does
provide for political, administrative and fiscal decentralization, the reality is that only the
political aspect has been effectively addressed in the main, the provision of basic services,
among which water and sanitation, is still done through the centralized line ministry, or
provided through NGO or private sector initiatives.22 After the collapse of the central
government, privatization of municipal services occurred mostly without governmental
regulation, resulting in inequitable pricing and spatial monopolies in the provision of urban
services. Even after the establishment of the regulatory framework, which finally occurred early
in 2011 with the passing of the National Water Act, where are enshrined nearly all the
regulatory powers, the implementation is slow and difficult.

154. Service production functions located at the Ministry of Mines, Energy & Water Resources
(MMEWR), while service provision functions are dominated by Public Private Partnerships
(PPP) (in water supply and less in Solid waste), district local governments (solid waste only)
and much less by MMEWR departments and the communities, through water committees (for
rural water supply). It is a widespread opinion that the performance of private companies, on a
relative scale, exceeds by far that of the public sector, yet it is important to note that because of
the high risk level, and the weak regulatory oversight, private operators are looking for quick
return on investment and tend to minimize investments. This results in high tariffs and poor
quality for the service delivery in an absolute scale. While there is broad latitude for the public
sector to improve services, central and local authorities could help to improve the level of

22
Article 112, paragraph 1 of the Constitution and Article 11 of Law No. 23

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service and the coverage rate by creating a safer environment for business, and at the same
time by enforcing the regulatory framework and improving the terms of contracting out to
remove or correct the public-private interest bias. These measures, if taken in a concerted way
would secure investments and encourage private operators to look at longer-term prospects.

155. The pre-dominant constrains that impede adequate service delivery in WASH include: (i)
the accentuated incapability of the government fiscal policies to ensure a revenue stream for
public services funding, which leads to the absence of any reasonable degree of effectiveness
and sustainability in service delivery operations and capital investment funding (which is
virtually non-existent), (ii) lack of implementation of the existing legal framework due to very
scarce state capacity, limited public sector staffing and fiscal constraints, (iii) a highly
concentrated regulatory mechanism, practically with one ministry in charge of all, leading to
weak coordination among other natural stakeholders and deficiencies in specific sector
knowledge as a result of this, (iv) the chronic weakness of all levels of public administration
structures, in large part caused by the scarcity of human capacity at the central and local level.

156. In addition, the socio-economic setting in Somaliland with the accentuated poverty and
unsettled population with nomadic tribes and IDPs that comprise a sizeable portion of the
population affect negatively a situation, which is already difficult. As a result of all the above,
the role of the state in these essential services, especially water supply is very weak, leading to
social bias and poor water resource management, which is critical in Somaliland. The present
situation calls for a new vision where the role of the central and especially local governments is
re-cast with a view to gain control over a strategic resource and sector and find ways to use to
the public benefit the large capacities of the private sector.

5.2. WASH SECTOR SERVICE DELIVERY CAPABILITIES
5.2.1 OVERVIEW OF WASH SUB-SECTORS
The WASH sector comprises three sub-sectors, which are quite distinct from each other and
one crosscutting set of activities.23


23
Water and Sanitation and Hygiene: From the Collins English dictionary Complete & Unabridged Edition 2009,
sanitation is defined as the study and use of practical meas