State- and Peace-Building Grant Database
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Grant Profile:
Project Title: Watching Brief: Macroeconomic Data Collection and Analysis
PCF/LICUS/SPF: PCF Status: Closed
File Number: 175 Region: AFR
Sector: Multisector Country: Somalia
FY approved: 2002 Grant Theme : Financial and private sector development
Keyword(s): Social/conflict analysis;Watching brief Approved Amount: $515,000.00
Related Documents   175 - Somalia - Watching Brief-Macroeconomic Data Collection and Analysis - Socioeconomic Survey.pdf
  UNDP Somalia LICUS Socio-economic and Macro-economic Data Collection Monitoring and Analysis 1005-2006 Final Report.pdf
Grant Recipient:

UNDP
Grant Purpose:

The overall objective of the project was to assess and study the socio-economic conditions and the
macro-economic situation in different parts of Somalia to be coordinated from Mogadishu (Benadir
and other regions directly administered by the transitional national government), Baidoa/Belet
Weyne (Bay, Bakool and Hiran), Hargeisa (Northwest Somalia/Somaliland) and Garowe
(Northeast Somalia/Puntland) from a national perspective, with a view to establishing a baseline
socio-economic database and reconstructing the macro-economic statistics, and building the long-term capacity of the Somali Transitional national Government (TNG) and the regional administrations to collect, compile and analyse such statistics.

The specific objectives of the project included:

(1) To make an overall assessment of the socio-economic conditions/needs in various parts
of Somalia with special emphasis on vulnerable groups and to review the macroeconomic
situation identifying the internal and external factors affecting the growth of Somali
economy.

(2) To assess the impact of civic disorder and natural disasters on the provision of social
services, the current and potential demand for such services and to evaluate the current
provision of these services by the government/regional administrations, aid agencies,
international and domestic NGOs and local communities.

(3) To establish and maintain a database containing basic socio-economic and
macroeconomic data to improve the delivery and accessibility of social services, to aid
the economic management, to monitor the socio-economic changes and to provide a
basis for reengagement by the World Bank and other development partners when
conditions permit.

(4) To build the capacity of TNG and regional administrations to collect, compile and analyse
basic socio-economic data and macro-economic statistics.

(5) To prepare an action plan for improving the delivery of social services in consultation
with the stakeholders and develop indicators to monitor the socio-economic situation
over time.

(6) To assess the role of the private sector in the current economic context and to identify
measures that the government will need to take to stimulate private sector growth.
Grant Activities:

The project was carried out in two phases.

Activities under Phase I included:

(1) A quick assessment on the socio-economic situation highlighting the demand,
supply and quality of social services and focussing on vulnerable groups/segments.

(2) Macro-economic situation analysis and assessment of the dimensions of
the formal and informal economies.

(3) Identification of indicators to monitor the socio-economic situation, in particular the level and
extent of poverty, and the macro-economic situation.

(4) Review of the existing data, identification of data needs and gaps, and design of a sampling framework to collect data for the project areas.

(5) Development of survey questionnaires, validating and finalising the questionnaires through filed tests / pilot surveys, and development of a work plan to conduct the necessary field surveys and studies in phase II, to collect and compile basic socio-economic data and macro-economic statistics.


Activities under Phase II included:

(1) Implementation of field surveys and studies, processing, analysis and compilation of
data.

(2) Measurement and validation of indicators to be monitored.

(3) Implementation of a system for collection, compilation and analysis of socio-economic and macroeconomic data.

(4) Building local capacity by involving Somali counterparts in the collection, compilation
and analysis of data, to facilitate transfer of know-how and expertise.

(5) Development of papers for major sectors (education, health, drinking water, sanitation and
roads) detailing:
(i) availability, accessibility and quality of social services;
(ii) cataloguing of service providers (governmentlaid agencies/NGOs/CBOs etc);
(iii) needs and gaps in these services.

(6) Development of a road map for provision of basic social services (keeping as the main goal
maintaining balance across geographical area and quality) and a plan of action for
the government/regional administrations together with their development partners, to
implement the plan of action.

(7) Facilitating discussion on the road-map involving all stake-holders (Government/regional administration, aid agencies, NGOs, CBOs as well as the civil society)

(8) Analysis of the internal and external factors affecting the growth of the Somali economy
and development of an economic policy matrix aimed at recovery and growth.

(9) SWOT analysis of the private sector and operationalization of a roundtable involving the
governments/regional administrations, private sector and civil society.
Lessons Learned:

The Macro-economic Analysis and Dialogue grant aimed at strengthening local capacity for data collection and poverty mapping in Somalia. More specifically, the project supported the Somali administrators and existing municipalities to consolidate administrative statistics of the socio-economic conditions and the macro-economic situation in different parts of Somalia from various sources.

The project supported statistical capacity and institution building efforts in the areas of macro-economic and poverty related data collection and analysis in Somaliland, Puntland and South-Central Somalia. The overall objective of these efforts is to generate a set of data that will enhance the local and national administrations in making evidence based development planning decisions, and build the statistical capacity within the ministries of planning, line ministries, and municipalities. It is expected that the data analysis will provide important insights in the process of developing a poverty reduction strategy involving key stakeholders, which can assist in informing and guiding donor aid.

The collection and compilation of poverty data was represented by a rural and urban settlement census documenting Global Position System codes of all urban centers and rural and nomadic settlements, water sources, health facilities, educational facilities, and poverty-related indicators. The purpose of the census was to obtain an updated macro-economic and socio-economic database, as well as understand the root causes of income and human poverty and vulnerability in various regions of Somalia. Socio-economic data was also compiled by service providers and staff within their respective departments and units of statistics. Municipalities were provided with technical support in compiling and publishing statistical abstracts on the types of businesses existing and public goods and services provided within the municipality. In addition, senior staff of the Ministry of Planning of Somaliland and Puntland administrations and the Transitional National Government were supported to participate in trainings, to improve the scope, contents, quality and timely availability of statistics. Technical support was also provided to the Ministries of Planning in formulating annual work plans for statistical data collection, indicating priority activities, and providing technical support for their implementation.

One of the most important lessons learned from the project included the notion that building public-private partnerships by encouraging collaboration between universities and national administrative departments is a cost-effective option to enhance the capacity of the administrations, while concurrently providing practical experience to university staff and students. Another lesson included the perception that the regular publication of administrative statistics contributes to increased transparency and accountability of the participating administrations and municipalities, and provides authorities with a baseline for monitoring development, which promote good governance practices. In addition, the grant demonstrated that, by developing and refining census methodologies and data verification during the poverty mapping census, the project has the potential to prove useful under similar circumstances in other countries. At last, the project proved that regular consultation among stakeholders, such as the regular meetings between the three different administrations in Somalia, is a useful mechanism for overcoming political differences and bridging communication gaps.