DRAFT Decentralization of Government Institutions 1 DRAFT ONLY Consolidation and Decentralization of Government Institutions DRAFT Decentralization of Government Institutions 2 Academy for Peace and Development Hargeysa, Somaliland July 2002 DRAFT Decentralization of Government Institutions 3 Principal Researcher: Cabdirahman Jimcaale Working Group Members: Aamina Maxamuud Warsame Cabdillaahi Ibraahim Habane Cabdillaahi Sheekh Hassan Muuse Jaamac Maxamad Aadan Muuse Jibril Maxamad Baaruud Cali Kinsi Xuseen Qoqdhan Saciid Cabdillaahi Yasir Cali Xaaji Cabdi Ducaale Xuseen Xaaji Cabdi Camir Jibril Cali Salaad Axmad Cabdillaahi Nadiif Maxamad Jaamac Colow Maxamed Cabdi Dhinbil (Deceased) Axmad Askar (Deceased) DRAFT Decentralization of Government Institutions 4 Table of Contents 1 Introduction................................................................................................................6 2 Governance in the Modern History of Somaliland...................................................9 Pre-Colonial Somali Society ......................................................................................................9 The Colonial Administration and Indirect Rule.....................................................................9 Resistance to Colonial Rule.....................................................................................................10 The Nationalist Struggle for Independence 1940 -1960 .....................................................11 Independence and Union, 1960-1969....................................................................................12 The Military Regime .................................................................................................................14 Insurgency and civil war...........................................................................................................17 The SNM....................................................................................................................................18 The SNM Interim Government..............................................................................................18 The Boorame Peace and Reconciliation Conference, January-May 1993.........................21 The Cigaal Administration, May 1993 to February 1997....................................................23 The Hargeysa Peace and Reconciliation Conference, October 1996-February 1997.....25 The Constitution and the Legalization of Political Parties .................................................27 3 Political Representation in the Post-War Period: ”The Beel System” ................... 31 State Organization in Somaliland ...........................................................................................31 The Executive............................................................................................................................32 The House of Guurti.................................................................................................................34 The House of Representatives................................................................................................37 The Shir-Gudoon......................................................................................................................39 Representation in the Beel System: The Nomination Process...........................................41 Power Sharing and Equity .......................................................................................................43 The Beel and Multi-party Systems Compared ......................................................................46 4 Decentralization....................................................................................................... 48 Definition...................................................................................................................................49 Legal framework........................................................................................................................49 Why decentralization? Public attitudes towards change......................................................51 Existing arrangements..............................................................................................................52 Roles and responsibilities.........................................................................................................53 De facto centralization of administration..............................................................................55 Implementing Decentralization ..............................................................................................56 Political Parties ..........................................................................................................................57 5 Revenue Collection and Distribution ...................................................................... 60 The history of taxation.............................................................................................................60 Rebuilding the taxation system 1991-2000............................................................................62 DRAFT Decentralization of Government Institutions 5 Central government and financial administration................................................................63 Local government and financial administration ...................................................................67 The capacity of the institutions administering taxation.......................................................70 Issues in revenue collection.....................................................................................................72 Equity..........................................................................................................................................75 6 Conclusions and Recommendations....................................................................... 77 Representation...........................................................................................................................77 Decentralization ........................................................................................................................77 Revenues ....................................................................................................................................79 Bibliography ................................................................................................................ 81 Annex 1: The 1999 and 2000 Somaliland Budgets Compared ...............................................83 Annex 2: Workshop Participants ................................................................................................85 DRAFT Decentralization of Government Institutions 6 1 Introduction In 1991 the people of the north-west regions of Somalia declared the formation of the independent Republic of Somaliland, whose territory comprises that of the former British Somaliland Protectorate. After a decade of civil war the people of Somaliland set about rebuilding the political, social and economic institutions of government. The process of political rebuilding has been difficult and not without violence. The formation of Somaliland provided an opportunity to break with the corrupt and unrepresentative type of governments that Somalis had endured in the past, and to craft a system that is more participatory and responsive to the needs and aspirations of people. After a decade of independence, the extent to which this has been achieved in Somaliland is hotly debated. During more than one year of Participatory Action Research (PAR) by WSP and the Academy for Peace and Development (APD), Somalilanders from all walks of life identified governance as a key issue requiring greater in-depth study. The WSP National Project Group Meeting therefore chose ‘governance’1 as an issue for further in-depth research. A Working Group was formed to take this forward, comprising people from different sections of the population in Hargeysa, Somaliland’s political and commercial centre. After lengthy discussions the Working Group, under the title, ‘The Consolidation of Basic Government Institutions at the Central and Local Levels’, divided the research into three themes: • Political representation • Decentralization of administration • Taxation and equity The main phase of research began in June 2000. It engaged ordinary people in debates on these themes through three participatory workshops in different regions and districts of Somaliland. Baki town, in Baki district in Awdal region, was chosen as the venue for the workshop on decentralization of government, due to its rural location, the fact that the government had no presence and because the place had seen no development for the last 40 years. The workshop, held in June 2000, examined the legal framework for decentralization, assessed the existing arrangements and the challenges and opportunities of decentralization. The Somaliland Transitional National Charter adopted in 1993 and the 1997 provisional constitution mandated the government to decentralize the system of government. A suitable environment and opportunity for decentralization prevails. There is peace and public 1 UNDP definition: Governance can be seen asis the exercise of economic, political and administrative authority to manage a country’s affairs at all levels, it comprises the mechanisms, processes iinstitutions through which citizens and groups articulate their interests, exercise their legal right, meet