Public Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedAbbreviationsAcknowledgementsExecutive Summary1. Introduction2. Recent Developments Political and Social Context Economic and Governance Developments Poverty and Social Outcomes Spatial Variations in Poverty Human Capital and Poverty Shocks and Poverty Jobs, Incomes and Poverty Welfare Trends since the First SCD3. Binding Constraints and Opportunities in the Attainment of High-Level Outcomes High-Level Outcome 1: Improved Security, Participation, and Access to Justice Political Stability, Participation, and Constitutional Review Security Architecture and Transition Justice High-Level Outcome 2: Improved Access to and Quality of Services through Better Stable Macroeconomic Conditions and Fiscal Sustainability Strengthening the Institutional Framework for Social and Economic Expenditures Transparency and Accountability in the Petroleum Sector Public Debt Management in a post-HIPC context High-Level Outcome 3: Improved Household Resilience to Shocks Improve Water Security Upgrade and Diversify Natural Resource Sectors in a Climate-smart Manner Urbanization and Disaster Risk Management High-Level Outcome 4: Improved Human Capital Outcomes Developing the Foundation for Education Strengthening Health Systemsivviix12247891112141516161717181819202021212223242425Table of contentsii Social Protection for Human Capital High-Level Outcome 5: Enhanced Private Sector for Better Jobs Improve Access to Finance and Strengthen Financial Integrity Enhance Access to Shared Infrastructure Develop Trade and Regional Integration Improve the Business Environment and Conditions for Entrepreneurship Strengthening Opportunities for Women in the Private Sector4. Summary of Policy PrioritiesReferencesAnnexesAnnex 1: New Knowledge Generated by the World Bank Group and Remaining Knowledge GapsAnnex 2: ConsultationsAnnex 3: Clan Dynamics in SomaliaAnnex 4: Somalia: Selected Economic and Financial Indicators, 2019-2025 (as a percentage of GDP unless indicated otherwise)Annex 5: Household Socioeconomic Indicators, 2017-2022Annex 6: Benchmarking Somalia’s Development Outcomes with Peer CountriesFiguresFigure 1: Economic growth in SomaliaFigure 2: Poverty IndicatorsFigure 3: Gini Coefficients across Selected CountriesFigure 4: Poverty Rates and Human Development OutcomesFigure 5: Poverty and LiteracyFigure 6: Population PyramidFigure 7: Poverty Incidence by Household SizeFigure 8: Average Monthly Temperature Profiles in Somalia, 1961-2020Figure 9: Labor Market Situation, 2022Figure 10: Summary of Priorities and HLOs2727272829303132374042434445465789101010111236iiiACFTA African Continental Free Trade AreaACLED Armed Conflict Location & Event Data ProjectAMISOM African Union Mission in SomaliaAML/CFT Anti-Money Laundering/Countering the Financing of TerrorismANC Antenatal CareATMIS African Union Transition Mission in SomaliaCBS Central Bank of SomaliaCOM...