FISCAL FEDERALISM

Ministers of finance of the Federal Government and Federal Member States will be gathering in Mogadishu tomorrow. The issue is working relationships and resource sharing. In other words, it is about fiscal Federalism. There is no policy, no guidelines and no regulations to adhere to. These finance ministers meet often in ad hoc fashion, always addressing stalemate in working relationships or complaints from ministers of Federal Member States. Federal Finance minister is always the target of these complaints. The issues often end up in political compromise and bargain with the endorsement of respective political bosses. That is a difficult socio-economic environment to operate.

The bigger picture of the issue, though, lies in incomplete constitutional framework that most leaders see no urgency to tackle with. Completing the incomplete Federal Constitution would define the powers of states and shared responsibilities. Until that happens there will be always frictions, mistrust and potential abuses by the Federal Government in Mogadishu.

Payment transfer and distribution must follow by guidelines and regulations on resources sharing approved by legislative bodies. This makes the job of finance management tools and personnel easier. Unfortunately, some officials prefer to work under the cover of darkness and closed-door deals. This is what is happening now.

Postscript

As predicted, political bosses will gather in Mogadishu to iron out differences on fiscal Federalism.

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WDM EDITORIAL

EYL COUNCIL FORMALLY ESTABLISHED

Congratulations are due to the residents of Eyl District of Puntland, Somalia, on completing and concluding local council election. President Said Abdullahi Deni did a commendable job in seeing through First Phase of democratic exercise of one person one vote in three Puntland districts. We strongly urge the President and Puntland Government to implement the rest of local elections still outstanding in most districts. President Deni is on the verge of leaving behind a democratic legacy in Somalia that none of his predecessors in recent memory was able to achieve.

To the critics of the election process with regards to potential irregularities, no democratic election is perfect anywhere in the world. What the current administration of Puntland has been doing in holding some district elections is the right step forward to a democratic Somalia. We urge all residents of Puntland to close ranks and support the President’s election efforts.

The newly elected Eyl Council Chairman, the mayor, Faisal Khalif Wacays