November 2, 2022
Policy options for agreeing a model for fiscal federalism
Somalia first formally adopted a federal model in 2004 with the establishment of the Transitional Federal Government. Since then, federalism has been deepened and clarified with the adoption of the Provisional Federal Constitution in 2012 and the subsequent formation of the country’s Federal Member States (FMS).
However, important parts of Somalia’s federal model remain undefined, including agreement on a model for fiscal federalism. This is a critical pillar of the federal architecture, as it ultimately defines the level of autonomy Federal Member States will have in relation to the Federal Government of Somalis (FGS). This makes the fiscal federalism model a contentious issue, with FMS seeking to maximize their autonomy and the FGS seeking to assert greater control.
The Somali Dialogue Platform and Kulan Consulting recently published a policy paper outlining options for fiscal arrangements within Somalia’s federal model. In this episode, Hodan Osman, a co-author of the policy paper, and Mahad Wasuge discuss the options for agreeing on a fiscal arrangement and the political processes necessary to address this contentious issue.