The challenges at a glance

The following overview of the socio-economic challenges facing Somalia are based on selections of text taken from the Concept Paper of the Somali Joint Needs Assessment (JNA) currently being conducted under the aegis of the United Nations and World Bank. Endemic poverty Somalia is now one of the poorest countries in the world: ranked 161 out of 163 countries in 2001 according to the UNDP’s human development index. GDP per capita is estimated to have declined from US $280 in 1989 to $226 in 2002. Poverty has increased to the point where 43 percent of the population survives on less than $1 a day and 73 percent lives on less than $2 a day. Unemployment is very high (see table below). Meeting basic humanitarian needs poses huge challenges. Access to humanitarian and development assistance has been severely restricted by the lack of security in much of south and central Somalia for many years. In 2004, only about 60 percent of the humanitarian relief programme was funded. Social services and public institutions: The provision of basic social services and protection has also deteriorated, although some recent progress is noted in the north. The primary school enrolment rate has fallen to 17 percent, only about 20 percent of the population has access to safe water, and infant mortality has reached a staggering 22 percent. HIV/AIDS is also an increasing concern. Human capital and skills are at very basic levels. Women, in particular, face serious challenges as there are few reproductive health services, except for those provided by NGOs. Public institutions at the national level are virtually non-existent. The Transitional Federal Institutions (TFIs) have not yet been able to establish their authority over the country; and with the rise of the Islamic Courts movement the future authority of the TFIs is presently uncertain. At the regional level, functioning administrations exist in Somaliland and Puntland. Due to a lack of resources and capacity, these institutions tend to focus almost exclusively on a narrow range of issues such as security, education, and health. At the local level, institutions are almost absent except in Somaliland and Puntland and the larger urban areas elsewhere. Infrastructure Infrastructure services are in acute need of large-scale repair and rehabilitation. Roads, especially in south central Somalia, have deteriorated beyond the point where it is a maintenance issue. The Mogadishu port remains closed, and though others operate, they generally only accommodate modest size ships and do not have the capacity to handle large volumes of cargo. While there is an all-weather runway at seven airports, [1] other airports are gravel and are vulnerable to weather conditions. Electrical services are fragmented, unreliable and often non-existent. Similarly, household water supplies need major investment. Irrigation facilities are receiving some attention, but river management needs to be increased if it is to be restored. Environment Drought and the imposition of the livestock ban have severely affected income generation. Environmental sustainability is threatened by deforestation where charcoal is produced for export; overgrazing, large-scale illegal fishing, and toxic waste. Private investments in the manufacturing sectors have been hampered by insecurity, absence of an internationally accredited financial services network, and regulations. Consequently, the cost of doing business in Somalia is high, so private enterprises tend to focus on short-term and quick return initiatives. Khat costs Khat chewing is a serious social crisis in all areas of Somalia, destroying the family structure and siphoning off much of the family income to sustain the habit. According to estimates, more than US $200 million is spent every year on Khat imports. About 350,000 Somalis are refugees outside of the country and about five to six percent of the population has been displaced internally. Security and human rights Human rights violations are reported to be widespread and the rule of law has been very weak. The lack of the most basic rules and regulations in key areas hampers trade and investment. Insecurity has been exacerbated by violations of the international arms embargo. The lack of security has impeded economic growth and employment-creating expansion of productive sectors, and the provision of social services. Improvements in the security situation are essential to ensure that humanitarian assistance can be delivered. It remains to be seen if the current political changes, with the success of the Islamic Court militias, will result in sustained security and increased rule of law. Copy of the full JNA Concept Paper can be found at: www.somali-jna.org