Nevertheless, a number of significant challenges remain, including the means by which the Federal Government and Federal Member States can build an effective institutional framework which allows Federal Member States the ability to generate resources and provide services in a way which strengthens the bonds with the Federal Government rather than weakens them.

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We believe that all development assistance, regardless of which Federal Member State or region receives the support, should be disbursed in an appropriate and transparent manner to ensure that it benefits all communities, and that the assistance is used for development rather than other means.

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The Federal Government is concerned that singling out an individual state or region for special arrangements could have serious impact on the efforts to deepen federalism and nation-building in Somalia. Other Federal Member States have openly expressed that if the special arrangement with Somaliland continues that they will seek similar relationships with donors which could have a further fragmentary effect on donor coordination in Somalia, weaken the nascent federal arrangements and exacerbate economic imbalances.

Consequently, on behalf of the Federal Government of Somalia we do not agree with the proposal to renew the Special Arrangement for Somaliland.

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