Policy paper 01
Beyond capacity building
Rethinking aid, institutions and the Somali state
Governance, institutions and political economy
Somalia’s institutional reconstruction has produced real results. Debt relief at the HIPC Completion Point in December 2023 reduced external debt from 64 per cent of GDP to under six per cent, and domestic revenue reform has continued since. The question is no longer whether international assistance has helped rebuild the state.
A ministry can hold trained staff, systems and policies without exercising meaningful authority. The harder transition is from institutions that international assistance helps to operate towards institutions whose authority, financing and legitimacy are rooted in Somali society.
Every externally financed programme should answer one additional question: what institutional relationship will exist after this programme that did not exist before it?
