State building and state legitimacy in the states emerging from fragility are inseparable from the notion of social contract. Social contract is a dynamic agreement between the state and society, delineating mutual roles and responsibilities that are continuously renegotiated based on changing capacities and expectations. It is also understood as an implicit agreement where the state provides security and public goods in exchange for citizens' compliance and support. This concept serves as a framework for understanding how states gain legitimacy, maintain social order, and deliver public goods such as justice, security, and development - supporting an understanding local context and the need for tailored approaches to strengthening the social contract in different contexts. While this volume examines the dynamics of building Somalia's social contract, it does not delve into the nature of the bargaining interfaces but rather explores the outcomes of the social contract, including the state's capacity for revenue mobilization and service delivery through its multiple administrative units. Importantly, it provides information on how the alignment of expectations between the state and society and outcomes has evolved over the past few years.
Authors
- Disclosure Date
- 2024/11/13
- Disclosure Status
- Disclosed
- Doc Name
- Toward Building Somalia's Social Contract : State Affordability, Revenue Mobilization, and Service Delivery in a Nascent Federal State
- Originating Unit
- IEG Public Sector 1 (IEGCG)
- Pages
- 105
- Product Line
- Advisory Services & Analytics
- Published in
- United States of America
- Rel Proj ID
- SO-Somalia : Enhancing Governance Dialogue -- P171974
- TF No/Name
- TF0B1070-Somalia: Enhancing Governance Dialogue,TF0B7943-Somalia DGRA
- Unit Owning
- EFI-AFR1-GOV-FM & PS-1 (EAEG1)
- Version Type
- Revised
- Volume No
- 1
Files
Table of Contents
- SOCIAL CONTRACT 1
- TABLE 2
- List of Tables 4
- List of Figures 5
- List of Boxes 6
- Acknowledgments 6
- Authors 7
- Acronyms 8
- Overview 9
- Achieving state affordability 10
- Enhancing domestic revenue 11
- Delivering services in a nascent federal state 12
- Toward a model for an affordable Somali state 15
- Somalias state delivery capacity Current context 15
- Fiscal trends 17
- Medium- and long-term financing challenges 21
- Role and size of the state versus affordability Policy questions and 22
- State affordability Medium- and long-term scenarios for service delivery 23
- Conclusions and recommendations 29
- References 33
- Domestic revenue forecasting in the context of fragility 34
- Taxation in focus 34
- Revenue outlook for Somalia Current revenue performance and 35
- Enhanced domestic revenue generation Ongoing reform opportunities and technical constraints 40
- Model forecasting of domestic revenue in Somalia 46
- Projected revenue-to-GDP ratio to reach 4.5 percent in 2030 46
- Reaching for a 4.5 percent revenue-to-GDP ratio and beyond in 2030 Conclusions and policy recommendations 48
- Proposed policy recommendations 48
- References 49
- Annex 2.1. 50
- Base case and high case percentage of GDP 50
- Improving income tax compliance in Somalia Private sector and 51
- Survey methodologies 53
- References 68
- Somalias fiscal decentralization Making the case for local government participation in state building 69
- Overview of fiscal federalism in Somalia 70
- Service delivery trust and revenue sources for local 72
- Conclusions and recommendations 81
- References 83
- Delivering on the social contract in Somalia Lessons learned from state building 84
- Understanding the social contract in Somalia 84
- Leveraging modes of governance for service delivery toward a social contract 87
- Administrative institutions and federalism Bringing the power of decision-making downward 89
- Recommendations Lessons learned and a way forward 93
- References 96
- Annex 5.1. 97
- Methodological Annex - Delivering on the social contract in Somalia 97
