Somalia JNASomalia JNA

PROGRESS REPORT PROGRESS REPORT PRESENTATION TO SACB, NAIROBIPRESENTATION TO SACB, NAIROBI

28 March 2006, 11.00 Hours28 March 2006, 11.00 Hours

Gerry Mc CarthyGerry Mc CarthyChief Technical Advisor,Chief Technical Advisor,

International Labour Organization, Somalia ProgrammeInternational Labour Organization, Somalia Programme

Productive Sectors & Environment (PSE) ClusterProductive Sectors & Environment (PSE) Cluster

PSE Cluster ObjectivePSE Cluster Objective

Evaluate how growth of the productive (real) Evaluate how growth of the productive (real) sectors and the sustainable judicious use of sectors and the sustainable judicious use of natural resources can contribute substantially to natural resources can contribute substantially to reconstruction, development, income generation reconstruction, development, income generation and poverty reduction in the Somali economy. and poverty reduction in the Somali economy. The PSE Cluster Report will also propose short The PSE Cluster Report will also propose short to medium term priority actions (policies, to medium term priority actions (policies, institutions and investments) to achieve these institutions and investments) to achieve these objectives. objectives.

PSE SUB-CLUSTERSPSE SUB-CLUSTERS

Agriculture (including crops, irrigation, Agriculture (including crops, irrigation, forestry, natural products, natural resource forestry, natural products, natural resource management) management)

FisheriesFisheries LivestockLivestock Private Sector DevelopmentPrivate Sector Development Financial Service DevelopmentFinancial Service Development EnvironmentEnvironment

CROSS-CUTTING ISSUES CROSS-CUTTING ISSUES COVEREDCOVERED

Peace-building, reconciliation and conflict Peace-building, reconciliation and conflict prevention.prevention.

Capacity building.Capacity building. Gender and human rights.Gender and human rights.

OTHER CLUSTERS – KEY OTHER CLUSTERS – KEY LINKAGESLINKAGES

Livelihoods – role of private sector in productive Livelihoods – role of private sector in productive livelihood development, and fit of micro and livelihood development, and fit of micro and artisanal enterprise.artisanal enterprise.

Livelihoods/HDD – promoting local ownership of Livelihoods/HDD – promoting local ownership of economic recovery and planning.economic recovery and planning.

Infrastructure – importance for economic Infrastructure – importance for economic recovery and bridging the interim employment recovery and bridging the interim employment gap.gap.

Governance – creating an enabling environment Governance – creating an enabling environment for promoting investment and encouraging for promoting investment and encouraging entrepreneurship.entrepreneurship.

EMERGING VISION for REGENERATING EMERGING VISION for REGENERATING the SOMALI ENVIRONMENTthe SOMALI ENVIRONMENT

Affordable fuel alternatives to charcoal – coal, Affordable fuel alternatives to charcoal – coal, solar, wind, biogas, kerosene, etc.solar, wind, biogas, kerosene, etc.

Enforced ban on charcoal exports.Enforced ban on charcoal exports. Community-led reforestation schemes.Community-led reforestation schemes. Enforcement capacities and improved Enforcement capacities and improved

governance reducing illegal fishing.governance reducing illegal fishing. Increased water harvesting for human and Increased water harvesting for human and

animal consumption and livelihoods.animal consumption and livelihoods. Improved rangelands carrying capacities for Improved rangelands carrying capacities for

herd expansion through better natural resource herd expansion through better natural resource management and land reform.management and land reform.

EMERGING VISION for PRODUCTIVE EMERGING VISION for PRODUCTIVE SECTORSSECTORS

Putting employment and livelihoods at the centre of Putting employment and livelihoods at the centre of strategies for productive sector growth and expansion.strategies for productive sector growth and expansion.

Reduction of single-commodity (livestock) economic Reduction of single-commodity (livestock) economic vulnerability through private sector-led diversification of vulnerability through private sector-led diversification of the economy founded on adding value to the abundance the economy founded on adding value to the abundance of natural resources.of natural resources.

Public sector role = catalyst and facilitator of private Public sector role = catalyst and facilitator of private sector-led growth and expansion (by creating an sector-led growth and expansion (by creating an enabling environment for promoting investment and enabling environment for promoting investment and encouraging entrepreneurship, and setting a decent encouraging entrepreneurship, and setting a decent work agenda).work agenda).

Steady economic growth leading to the creation of large Steady economic growth leading to the creation of large numbers of new jobs and livelihoods.numbers of new jobs and livelihoods.

PSE WORK INPUTS TO DATEPSE WORK INPUTS TO DATE

Mini-retreat, November 2005Mini-retreat, November 2005 JNA Retreat, November 2005.JNA Retreat, November 2005. Field Mission (Somaliland, Puntland & Middle Shabelle) Field Mission (Somaliland, Puntland & Middle Shabelle)

Jan-Feb 2006.Jan-Feb 2006. Hargeisa Zonal Workshop & Business Forum, January Hargeisa Zonal Workshop & Business Forum, January

2006.2006. Open Forum Progress Briefing & Feedback, Nairobi, Open Forum Progress Briefing & Feedback, Nairobi,

February 2006.February 2006. Sub-cluster report submissions, March 2006.Sub-cluster report submissions, March 2006. Cluster Report, March 2006 (in-progress including Cluster Report, March 2006 (in-progress including

summaries of needs questionnaires responses from summaries of needs questionnaires responses from Somalia) – separate reports for Somaliland, Puntland & Somalia) – separate reports for Somaliland, Puntland & South-Central SomaliaSouth-Central Somalia

CLUSTER BACKGROUND & CLUSTER BACKGROUND & PROGRESS INFORMATION PROGRESS INFORMATION

AVAILABLEAVAILABLE

Baseline information from IFC/World Bank Baseline information from IFC/World Bank Somali Private Sector Study & Somali Private Sector Study & Recommendations, October 2005Recommendations, October 2005

Notes from PSE Cluster Friends Meeting Notes from PSE Cluster Friends Meeting at World Bank, 10.2.2006at World Bank, 10.2.2006

Productive Sectors Field Mission Report Productive Sectors Field Mission Report 11.2.200611.2.2006

ENVIRONMENT - FINDINGSENVIRONMENT - FINDINGS

Marine environment and fish resources, forests, rangelands, wildlife and Marine environment and fish resources, forests, rangelands, wildlife and water are all under varying degrees of stress depending on location and water are all under varying degrees of stress depending on location and degree of exploitation. degree of exploitation.

Wildlife which still existed in 1990 have now disappeared.Wildlife which still existed in 1990 have now disappeared. Somali fisheries resources are under serious threat if the current rate of Somali fisheries resources are under serious threat if the current rate of

exploitation continuesexploitation continues The few remaining forests in southern zones are being rapidly depleted as The few remaining forests in southern zones are being rapidly depleted as

a result of intensive charcoal production that, we understand, is still being a result of intensive charcoal production that, we understand, is still being exported despite the official ban on exports: a similar situation is said to exported despite the official ban on exports: a similar situation is said to exist in northern areas, but because of the widespread destruction of exist in northern areas, but because of the widespread destruction of acacia forests already in these areas already, the scale is less but of acacia forests already in these areas already, the scale is less but of course still serious at the margin.course still serious at the margin.

The productivity of the rangelands in central and northern regions in terms The productivity of the rangelands in central and northern regions in terms of marketable animals produced, has been substantially reduced because of marketable animals produced, has been substantially reduced because of the four year drought that started in 2000, the cutting of nitrogen of the four year drought that started in 2000, the cutting of nitrogen producing acacias for charcoal production, overgrazing in some areas and producing acacias for charcoal production, overgrazing in some areas and in many places massive soil erosion. in many places massive soil erosion.

FISHING SECTOR – ENVIRONMENT FISHING SECTOR – ENVIRONMENT ACTIONS UNDER CONSIDERATIONACTIONS UNDER CONSIDERATION

Capacity building for aggressive coastal monitoring of Capacity building for aggressive coastal monitoring of fishing licenses for trawlers and enforcement of fishing licenses for trawlers and enforcement of compliance with license conditions such as size of fish compliance with license conditions such as size of fish caught and months when trawling is not permittedcaught and months when trawling is not permitted

Reduction in the number of foreign licenses, and Reduction in the number of foreign licenses, and enforcement of fishing regulations for artisanal enforcement of fishing regulations for artisanal fishermen.fishermen.

Establishing immediately a force to eliminate illegal Establishing immediately a force to eliminate illegal fishing and destructive techniques by foreign or national fishing and destructive techniques by foreign or national boats and large ships in the marine resources around boats and large ships in the marine resources around Somalia’s coastSomalia’s coast

Review of the assessments of the evidence of toxic Review of the assessments of the evidence of toxic wastes offshore and assessments of areas not yet wastes offshore and assessments of areas not yet covered.covered.

RANGELANDS – ACTIONS UNDER CONSIDERATION RANGELANDS – ACTIONS UNDER CONSIDERATION TO IMPROVE NATURAL RESOURCES & LAND TO IMPROVE NATURAL RESOURCES & LAND

MANAGEMENTMANAGEMENT

Improved capacity to enforce the monitoring of license Improved capacity to enforce the monitoring of license conditions for the production of charcoal and penalties conditions for the production of charcoal and penalties for the removal of anything but dead wood from the for the removal of anything but dead wood from the rangelands.rangelands.

Plan and organize community reforestation programs.Plan and organize community reforestation programs. Eliminate cultivation in rangeland areas.Eliminate cultivation in rangeland areas. Establish controls on grazing intensity and water Establish controls on grazing intensity and water

availability for livestock during the annual seasons to availability for livestock during the annual seasons to better manage the use of pasture resources and foster better manage the use of pasture resources and foster regeneration of trees.regeneration of trees.

Review of future land policy and grazing rights in the Review of future land policy and grazing rights in the rangelands to address the increasing number of land rangelands to address the increasing number of land enclosures on common rangelands that benefit a few enclosures on common rangelands that benefit a few herders but penalize many. herders but penalize many.

FORESTRY – ENVIRONMENT & SECTOR FORESTRY – ENVIRONMENT & SECTOR DEVELOPMENT ACTIONS UNDER DEVELOPMENT ACTIONS UNDER

CONSIDERATIONCONSIDERATION

ENVIRONMENT:ENVIRONMENT: Capacity building for monitoring the issue of charcoal Capacity building for monitoring the issue of charcoal

production licenses.production licenses. Enforcing charcoal production license conditions and a Enforcing charcoal production license conditions and a

complete ban on charcoal exports.complete ban on charcoal exports.SECTOR DEVELOPMENT:SECTOR DEVELOPMENT: Kerosene at subsidized prices (short-term).Kerosene at subsidized prices (short-term). Alternative energy technology.Alternative energy technology. Development of coal production and distribution as the Development of coal production and distribution as the

logical bulk substitute to charcoal.logical bulk substitute to charcoal. Enterprise- and community-led reforestation schemes Enterprise- and community-led reforestation schemes

focusing on fast-growing multi-purpose indigenous focusing on fast-growing multi-purpose indigenous species.species.

FISHING – SECTOR DEVELOPMENT FISHING – SECTOR DEVELOPMENT ACTIONS UNDER CONSIDERATIONACTIONS UNDER CONSIDERATION

Strengthening the public sector capacity to implement Strengthening the public sector capacity to implement and enforce public fisheries policies in Somalia’s and enforce public fisheries policies in Somalia’s territorial watersterritorial waters

Construction of a moderate number of publicly financed Construction of a moderate number of publicly financed jetties and lighthouses on the coast under community jetties and lighthouses on the coast under community management to support artisanal fishermen and management to support artisanal fishermen and encourage growth of private sector based decentralized encourage growth of private sector based decentralized ice production and fish processing around the coast.ice production and fish processing around the coast.

Substantially improve domestic retail marketing Substantially improve domestic retail marketing arrangements for fish in cities and townsarrangements for fish in cities and towns

Encouragement to the private sector to revive existing Encouragement to the private sector to revive existing but non-functional Somali fish processing plants.but non-functional Somali fish processing plants.

Develop simple container handling facilities in the Develop simple container handling facilities in the Bosasso port.Bosasso port.

LIVESTOCK - SECTOR DEVELOPMENT LIVESTOCK - SECTOR DEVELOPMENT ACTIONS UNDER CONSIDERATIONACTIONS UNDER CONSIDERATION

Generating capacity to improve support services Generating capacity to improve support services through a partnership of government and private through a partnership of government and private enterprises to improve the productivity of herds enterprises to improve the productivity of herds and flocks.and flocks.

Enhance marketing facilities for animals being Enhance marketing facilities for animals being exported (holding grounds, veterinary inspection exported (holding grounds, veterinary inspection and certification).and certification).

Long term production improvement through Long term production improvement through introduction of new and improved cross breeds introduction of new and improved cross breeds and promotion of zero grazing/quality fodder and promotion of zero grazing/quality fodder production.production.

CROPS - SECTOR DEVELOPMENT CROPS - SECTOR DEVELOPMENT ACTIONS UNDER CONSIDERATIONACTIONS UNDER CONSIDERATION

Improving the productive capacity of agriculture in the South which Improving the productive capacity of agriculture in the South which will include: (a) strategic improvements in infrastructure such as will include: (a) strategic improvements in infrastructure such as levies to eliminate riverine flooding; (b) rehabilitation of irrigation levies to eliminate riverine flooding; (b) rehabilitation of irrigation structures; (c) re-establishment of support services including micro-structures; (c) re-establishment of support services including micro-credit; and, (d) resolution of land policy and land rights in irrigated credit; and, (d) resolution of land policy and land rights in irrigated and rain-fed farming areas.and rain-fed farming areas.

In the North actions recommended will probably focus on the role of In the North actions recommended will probably focus on the role of the public sector in monitoring and evaluating the use of fragile the public sector in monitoring and evaluating the use of fragile resources used for agricultural production under irrigation in river resources used for agricultural production under irrigation in river valleys, as well as crop and livestock production under unique valleys, as well as crop and livestock production under unique conditions such as in oasis development.conditions such as in oasis development.

Since strong incentives will be crucial for the sustained success of Since strong incentives will be crucial for the sustained success of the crop sub-sectors, professional and cost-effective public sector the crop sub-sectors, professional and cost-effective public sector capacity will need to be built to ensure that: (a) policies encourage capacity will need to be built to ensure that: (a) policies encourage and support the growth of the private sector; (b) core support and support the growth of the private sector; (b) core support services such as relevant and applied research are in place; and (c) services such as relevant and applied research are in place; and (c) there are highly qualified advisory services available to translate there are highly qualified advisory services available to translate research results into practical applications for private sector research results into practical applications for private sector extension agents extension agents

FINANCIAL SERVICES FINANCIAL SERVICES DEVELOPMENTDEVELOPMENT

Fiscal policy and legal and regulatory Fiscal policy and legal and regulatory environment including central bank.environment including central bank.

Remittances standards.Remittances standards. Promoting private sector investment in banking Promoting private sector investment in banking

services.services. Remittances – harnessing a proportion into Remittances – harnessing a proportion into

productive enterprise capital.productive enterprise capital. Financial services and microfinance for MSMEs Financial services and microfinance for MSMEs

and producers.and producers. Insurance services (LoCs).Insurance services (LoCs).

PRIVATE SECTOR DEVELOPMENTPRIVATE SECTOR DEVELOPMENT

Lots of constraints but also lots of opportunities (see Lots of constraints but also lots of opportunities (see IFC/WB report).IFC/WB report).

Most focus on SME growth and expansion for job creation Most focus on SME growth and expansion for job creation impact.impact.

Special micro enterprise emphasis on gender and youth Special micro enterprise emphasis on gender and youth entrepreneurship.entrepreneurship.

Investment in full/part subsidized responsive technical Investment in full/part subsidized responsive technical assistance inputs focusing on market-led product and assistance inputs focusing on market-led product and service development.service development.

Gradual BDS and development.Gradual BDS and development. Association building and fair trade.Association building and fair trade. Initial TVET development founded on enterprise-based Initial TVET development founded on enterprise-based

growth, community-based training, life skills training, growth, community-based training, life skills training, support for traditional apprenticeship schemes and support for traditional apprenticeship schemes and development of competency-based training programmes.development of competency-based training programmes.

Enabling environment creation through public-private Enabling environment creation through public-private technical partnerships.technical partnerships.

MAKING THINGS HAPPENMAKING THINGS HAPPEN Expand existing initiatives (SLSS and EC agri-tenders).Expand existing initiatives (SLSS and EC agri-tenders). UNCT Draft Strategic Programme Framework for UNCT Draft Strategic Programme Framework for

Employment and Livelihoods – EEL umbrella.Employment and Livelihoods – EEL umbrella. JNA Recovery Programme.JNA Recovery Programme. Commonsense responsive projects with clear exit strategies Commonsense responsive projects with clear exit strategies

that also promote social dialogue and local ownership, and that also promote social dialogue and local ownership, and human rights through fair trade/pro-poor growth.human rights through fair trade/pro-poor growth.

Build on successful replicable models (Somalia and Build on successful replicable models (Somalia and elsewhere).elsewhere).

Focus on market-led opportunities.Focus on market-led opportunities. Don’t be afraid to experiment.Don’t be afraid to experiment. Bridging the employment gap.Bridging the employment gap. Human rights and fair trade.Human rights and fair trade. Portfolio of implementing organizations, agencies, Portfolio of implementing organizations, agencies,

contractors and local partners with clear comparative contractors and local partners with clear comparative technical advantages.technical advantages.