By Saif Rahman 

Somalia has been rebuilding state institutions and the economy since the end of the devastating conflict, with strong support from the international community. The protracted conflict in the country once led to a complete state collapse, with tremendous loss of human and physical capital. 

The drivers of economic fragility in Somalia are diverse and complex. Understanding the recent economic development, and the possible outcomes that might be realistic in the context of the ongoing multiple transitions is critical. Somalia is heavily reliant on external grants, which are expected to decline significantly after the HIPC (Highly Indebted Poor Countries) Completion Point (CP). External grants finance roughly half of the budget, with the World Bank providing around 82 percent of total grants in 2022. 

In a historic shift, Somalia has entered the global dashboard reporting and conversation on human development by securing a spot on the Human Development Index (HDI) for the first time since the report was first launched in 1990. This milestone marks a promising new chapter in Somalia’s journey towards sustainable growth, driven by a robust commitment to human capital development and significant international support.

Why publishing national HDI is crucial for Somalia 

Firstly, it provides a comprehensive assessment of the country's progress in key human development areas, offering valuable data and insights that can guide policymaking and resource allocation.

Secondly, it’s also coincided with the ongoing preparation for both Somalia Centennial Vision 2060 and Somalia National Transformation Plan. 

Thirdly, the report serves as a powerful advocacy tool, raising awareness about critical issues such as education, health, and income inequality.

Finally, the Human Development Report helps Somalia align its national development goals with global frameworks such as the Sustainable Development Goals (SDGs).

All these indices provide basslines and furnish policy makers with evidence- based perspectives to assess the efficiency of development policies. 

While it is oblivious that Somalia is now ranked at the bottom of the HDI, the country can only move upwards in the coming years. The country’s efforts to build a robust data system, led by the Somalia National Bureau of Statistics (SNBS) and supported by international partners like UNESCO and UNDP, promise a clearer picture of developmental progress and challenges. This foundational work is expected to yield significant advancements in the coming years.

The launched of the Somalia aimed to enrich national dialogue and strategic discussions on addressing the challenges of this transition period HDI has sparked both positive and negative reaction. By focusing on human development in areas such as health, education, and freedom of choice, Somalia is aligning itself with the fundamental principles that the United Nations Development Programme (UNDP) has championed since the release of its first global Human Development Report in 1990.

The inclusion of Somalia into report has triggered both joy and sentiments during the launching of the report in the Human Capital Forum inaugurated by the PM. A Panel discussion during the launching of the report articulated the importance of the index. That was an important message. 

The inclusion of HDI in 2024 report has stimulated open and genuine conversations in the country shaping the future development agenda with respect to human development as key pillar in human capital. Notably, to advance the human development agenda, the Prime Minister Office has established a taskforce team from SNBS, his office and other relevant line ministries, particularly ministry of Education and Planning to review the education statistics. 

The objectives of the Taskforce Team are to improve data collection, analysis, and reporting processes related to human development indicators and to enhance collaboration and coordination among key stakeholders involved in the production of the HDI report.

Along similar line, another development is in the making.  The Somalia National Bureau of Statistics has produced extensive data over the past few years, including the recent 2020 Household Survey supported by the World Bank, making 2024 an opportune time to compute the Multi-dimensional Poverty Index (MPI).