Policy initiatives and privatization project

The Government of Somalia"s (GSDR) Ministry of National Planning (MNP) will implement the project. Consultants will help the MNP identify, in collaboration with USAID/S and other donors, major macroeconomic policy issues requiring detailed analysis and to conduct 6-10 analytical studies of these issues. Workshops, seminars, and conferences will be held to discuss and disseminate the conclusions and policy recommendations stemming from these studies. The studies themselves are expected to provide the needed analytical base permitting the GSDR to implement specific reforms - e.g., civil service, tax, and budget allocation reforms - to which it is already committed and to enable it to explore other issues already identified as critical, such as migrant workers and remittances, banking and interest rates, export diversification, and the divestiture of parastatals. Tours will be arranged to allow GSDR officials and private sector entrepreneurs observe and study institutional arrangements, laws, and operating procedures used by other countries in dealing with macroeconomic problems. Consultants will also be provided to help the GSDR and private sector entrepreneurs address the particular constraints facing privatization (i.e., the transfer of the management of a business or industry from the public to the private sector) in Somalia, develop approaches to overcome these constraints, and make recommendations for appropriate GSDR action to place greater reliance on the private sector in providing goods and services to the economy. Finally, the project will provide technical and financial support to select industries and businesses which are to be privatized. Amendment of 8/25/86 extends project from 3/87 to 9/90 at increased funding. Activities will focus on GSDR policy reform, taxation, and fiscal issues. (PD-AAU-177)