Somalia Fiscal Reforms Could Create Over 54,500 Teaching Jobs, World Bank Says

GOOBJOOG NEWS|MOGADISHU: Fiscal reforms in Somalia could create more than 54,500 teaching jobs and improve employment opportunities for roughly 250,000 higher-productivity jobs, according to simulations cited by the World Bank.

The estimates, released on Monday in a statement announcing the Somalia Public Finance Review, illustrate the potential benefits of stronger revenue collection, more efficient spending and closer cooperation across government.

The simulated reforms could also raise domestic revenues by six percentage points of gross domestic product and reduce poverty to 47% by 2033, the Bank said.

“The potential gains from these reforms are substantial,” the statement said.

The projections are conditional outcomes from reform simulations, rather than jobs already created or guaranteed results.

The review, titled The Next Stage of Public Finance, identifies five priorities: strengthening domestic revenue mobilization, improving expenditure efficiency, managing fiscal and debt risks, enhancing public financial management and accountability, and advancing fiscal federalism.

The measures are intended to strengthen Somalia’s ability to finance development and deliver essential services as external assistance declines.

“The next stage is to translate these gains into stronger domestic revenues, better value from public spending, and improved services for citizens, while preserving fiscal stability in a lower-aid environment,” said Hideki Matsunaga, World Bank Group Country Manager for Somalia.

The employment projections come against a backdrop of high poverty, substantial infrastructure needs and spending on health and education that remains among the lowest in the world, according to the Bank.

Better coordination between the federal government, federal member states and local administrations is central to the proposed reforms. While the federal government collects approximately 71% of domestic revenues, state and local authorities play important roles in delivering frontline services.

“Stronger intergovernmental fiscal arrangements and better coordination across levels of government will be essential to improving equity, expanding service delivery, and strengthening state capacity across the country,” the statement said.

The Bank said Somalia’s progress in rebuilding fiscal institutions and strengthening economic governance provides a foundation for the next phase of reform.

Stronger fiscal sustainability, more efficient spending and cooperation across government could help turn that progress into sustained growth, more jobs and better services, it said.