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SOMALIA-CPF-08312018.Pdf A Document of The World Bank Group FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 124734-SO INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY Public Disclosure Authorized COUNTRY PARTNERSHIP FRAMEWORK FOR THE FEDERAL REPUBLIC OF SOMALIA FOR THE PERIOD FY19 – 22 August 29, 2018 Public Disclosure Authorized Country Management Unit, AFCE1 Africa Region The International Finance Corporation The Multilateral Investment Guarantee Agency Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. 1 The date of the last Interim Strategy Note was November 11, 2013 CURRENCY EQUIVALENTS (Currency Unit: Somali Shilling (SSH)) (US$1.00 = SSH 24,418 as of July 31, 2018) FISCAL YEAR January 1 – December 31 LIST OF ABBREVIATIONS AF Additional Financing FMS Federal Member States AfDB African Development Bank FIDEP Financial Institutions Development AMISOM African Union Mission in Somalia Project AML/CFT Anti-Money Laundering/Combating GBV Gender-Based Violence the Financing of Terrorism GBVIMS Gender-Based Violence Information AS Al Shabaab Management System BER Bid Evaluation Report GDP Gross Domestic Product CASA Conflict Affected States (IFC) GPSA Global Partnership for Social CBS Central Bank of Somalia Accountability CIP Capacity Injection Project GRM Grievance Redress Mechanism CLR Completion and Learning Review HDP Humanitarian Development Peace CPPR Country Portfolio Performance HH Household Review HIPC Highly Indebted Poor Country CPI Country Poverty Index HLPF High Level Partnership Forum CRW Crisis Response Window ICRGBV Inclusive Community Resilience and DA Designated Account GBV Pilot DBS Doing Business Survey ICT Information and Communication DfID Department for International Technology Development ID Identification DINA Drought Impact Needs Assessment IDA International Development Association DLI Disbursement Linked Indicators IDP Internally Displaced Person EAFS External Assistance Fiduciary Section IFC International Finance Corporation EAPP East Africa Power Pool IFI International Financial Institutions EU European Union IGAD Inter-Governmental Authority on FAO Food and Agriculture Organization Development FCV Fragility Conflict and Violence IMF International Monetary Fund FGC Financial Governance Committee I-PRSP Interim-Poverty Reduction Strategy FGM/C Female Genital Mutilation/Cutting Paper FGS Federal Government of Somalia ISA International Standards on Auditing FM Financial Management ISN Interim Strategy Note K4R Knowledge For Results SCD Systematic Country Diagnostic MA Monitoring Agent SCORE Somalia Core Economic Institutions and MAF Mutual Accountability Framework Opportunities Program MDA Ministries, Departments and SDRF Somalia Development and Agencies Reconstruction Facility MDB Multilateral Development Bank SEA Sexual Exploitation and Abuse 2 MDP Mandatory Direct Payment SEAP Somalia Energy Access Project MDRI Multilateral Debt Relief Initiative SEDRP Somalia Emergency Drought Response MICS Multiple Indicator Cluster Survey Project MIGA Multilateral Investment Guarantee SFMIS Somalia Financial Management Agency Information System MPI Multidimensional Poverty Index SGBV Sexual Gender-Based Violence MPF Multi Partner Fund SICRP Somalia Investment Climate Reform MTB Money Transfer Businesses Project MTO Money Transfer Operations SIM Subscriber Identification Module MW Megawatts SlSh Somaliland Shilling NCA National Communications Authority SJPER Security and Justice Public Expenditure NDP National Development Plan Review NGO Non-governmental Organization SMART Specific Measurable Attainable Realistic NPS New Partnership for Somalia and Timely ODA Official Development Assistance SME Small and Medium Enterprises PAC Pre-Arrears Clearance SMP Staff Monitored Program PACG Pre-Arrears Clearance Grant SS Security Specialist PER Public Expenditure Review STEP Systematic Tracking of Exchanges in PFM Public Finance Management Procurement PIU Project Implementation Unit SOPTAP Somalia Petroleum Technical PLR Performance Learning Review Assistance Project PPIAF Public Private Infrastructure SURP Somalia Urban Review Project Advisory Facility SWALIM Somalia Water and Land Information PPD Public Private Dialogue Management PPP Public Private Partnerships UK United Kingdom PPP Purchasing Power Parity UN United Nations PSW Private Sector Window UNDP United Nations Development Program PV Photovoltaics UNFPA United Nations Population Fund RCRF Recurrent Cost and Reform UNICEF United Nations Children’s Fund Financing US United States RF Results Framework VSLA Village Savings and Loan Association RRA Risk and Resilience Framework WALP Water for Agro-Pastoral Livelihoods RRF Risk and Resilience Framework WASH Water Sanitation and Hygiene SCALED- Somalia Capacity Enhancement WBG World Bank Group UP Livelihoods and Entrepreneurship WHO World Health Organization Digital Uplift Program IBRD IFC MIGA Vice President: Hafez Ghanem Sergio Pimenta Keiko Honda Director: Bella Bird Cheikh Oumar Seydi Merli Baroudi Task Team Leaders: Hugh Riddell Adamou Labara Moritz Nebe Puteri Watson Michel Botzung Gero Verheyen Zahia Lolila 3 TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 6 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA .......................................................... 8 A. Natural, geographic and regional context ............................................................................................. 8 B. Political, security and justice issues ....................................................................................................... 9 C. Economic context ................................................................................................................................ 12 D. Private sector and the business environment..................................................................................... 15 E. Poverty, vulnerability and human development ................................................................................. 16 F. Development challenges and opportunities ........................................................................................ 22 III. WORLD BANK GROUP COUNTRY PARTNERSHIP FRAMEWORK ....................................... 25 A. Government Program: The National Development Plan .................................................................... 25 B. Stakeholder Consultations ................................................................................................................... 26 C. Overview of the WBG Country Partnership Framework FY19-22 ....................................................... 26 CPF Focus Area 1: Strengthening Institutions to Deliver Services ........................................................... 28 CPF Focus Area 2: Restoring Economic Resilience and Opportunities .................................................... 34 IV. IMPLEMENTING THE COUNTRY PARTNERSHIP FRAMEWORK ......................................... 38 A. Lessons from the implementation of the portfolio ............................................................................. 38 B. Financing the CPF ................................................................................................................................. 39 C. Partnerships and Donor Coordination ................................................................................................. 42 D. Managing CPF Operations ................................................................................................................... 44 V. MANAGING RISKS TO THE CPF....................................................................................... 46 TABLE OF FIGURES Figure 1: 1980 – Today: Drought, Shocks and the Political Cycle .................................................................. 9 Figure 2: From Conflict Towards Stability (1991-2021) ............................................................................... 10 Figure 3: Real GDP Growth (%), 2014-2017 ................................................................................................. 13 Figure 4: Per Capita GDP (US$), 2016 .......................................................................................................... 13 Figure 5: FGS Revenue and Grants ($m) ...................................................................................................... 14 Figure 6: Share in Domestic Revenue (%) .................................................................................................... 14 Figure 7: Federal Member State Revenue Collection ($ million) ................................................................ 14 Figure 8: Doing Business Rankings 2017...................................................................................................... 16 Figure 9: Somalia’s Dual Development Trap ............................................................................................... 22 Figure 10: CPF Framework ........................................................................................................................... 28 Figure 11: Interdependencies in financial sector programming ................................................................. 39 4 Figure 12: Share of on-treasury ODA in Somalia ........................................................................................
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