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Ministers of finance of the Federal Government and Federal Member States will be gathering in Mogadishu tomorrow. The issue is working relationships and resource sharing. In other words, it is about fiscal Federalism. There is no policy, no guidelines and no regulations to adhere to. These finance ministers meet often in ad hoc fashion, always addressing stalemate in working relationships or complaints from ministers of Federal Member States. Federal Finance minister is always the target of these complaints. The issues often end up in political compromise and bargain with the endorsement of respective political bosses. That is a difficult socio-economic environment to operate.

The bigger picture of the issue, though, lies in incomplete constitutional framework that most leaders see no urgency to tackle with. Completing the incomplete Federal Constitution would define the powers of states and shared responsibilities. Until that happens there will be always frictions, mistrust and potential abuses by the Federal Government in Mogadishu.

Payment transfer and distribution must follow by guidelines and regulations on resources sharing approved by legislative bodies. This makes the job of finance management tools and personnel easier. Unfortunately, some officials prefer to work under the cover of darkness and closed-door deals. This is what is happening now.


As predicted, political bosses will gather in Mogadishu to iron out differences on fiscal Federalism.

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