Eighth Workshop for the Ministry of Interior and Federal Affairs

Max Planck Foundation organises a workshop on fiscal federalism for staff at the Ministry of Interior and Federal Affairs in Somalia

The Max Planck Foundation organised a workshop on 14 March 2016 for the Somali Ministry of Interior and Federal Affairs (MoIFA) on fiscal federalism. The workshop is part of a series of knowledge building training and was attended by 26 participants who work at the Ministry on questions directly or indirectly related to the federalisation process in Somalia.

By way of comparative examples, participants learned how federal systems have developed different design options for the distribution of fiscal powers and competences. Key issues included the allocation of revenue raising and expenditure responsibilities between the different levels of government, and mechanisms for revenue sharing between the federal level and the constituent units. Under the guidance of the Max Planck Foundation’s Technical Legal Advisors, the workshop provided participants with an insight into comparative experience with a focus on how fiscal federalism arrangements impact intergovernmental relations and cooperation.

Fiscal federalism is a particularly salient topic for Somalia as the nascent federal structures and institutions will only become fully effective and operational if supported by a viable fiscal framework. The MoIFA is supporting the development of the necessary framework in consultation with the Federal Government and the emerging Federal Member States. Moreover, with the formation process of Federal Member States coming to an end, the negotiation of intergovernmental fiscal structures is expected to become a priority in the federalisation process and will require the Ministry’s attention.