UNDP helping rebuild economic structures

The UN Development Programme (UNDP) Somalia office has signed a new project aimed at assisting Somali authorities to rebuild macro-economic structures and institutions after years of civil strife and economic crisis. According to a news release issued on Friday, UNDP Somalia's Country Director Andrea Tamagnini said the project was important and had far-reaching consequences for economic development in Somalia. "Most people think countries in special circumstances like Somalia only require humanitarian aid, but development projects like this one can play a major role in setting the basis for longer-term economic and social recovery, thereby reducing the need for some humanitarian interventions in the future," Tamagnini said. The project will support economic management initiatives by establishing systems to legitimise financial remittance services, gathering statistics and indicators to formulate economic policy, and conducting household surveys for planning purposes. Somalia is currently facing a severe economic crisis, brought about by a series of external shocks and internal weaknesses. These include a 15 month-old import ban by Gulf states on Somali livestock, a downturn in remittances from abroad after the closure of a major money transfer company, and natural calamities such as floods and drought. The impact has been aggravated inside Somalia by the lack of formal banking and financial services, and the absence of economic legislation, regulatory frameworks and institutions to enforce standards.