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Reading: Equitable Federalism in Somalia: Federal Transfers Must Include All Member States
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PAN AFRICAN VISIONS > Blog > Africa > SOMALIA > Equitable Federalism in Somalia: Federal Transfers Must Include All Member States
EditorialFeaturedpoliticsSOMALIA

Equitable Federalism in Somalia: Federal Transfers Must Include All Member States

Last updated: May 3, 2026 5:21 pm
Pan African Visions
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This map highlights Somalia’s North-Eastern state, a region characterized by rugged mountains and arid plains. Its most densely populated territory lies along the Gulf of Aden coast and the nugaal basin , where the majority of residents concentrate in key urban centers like Laasanod , Laskoray , and Buhodle .
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By Dr Abdijalil Hassan*

Federal transfer payments exist to equalize opportunity, not to reward allies or punish political rivals. Yet the new $35 million World Bank-backed Bulsho project has done precisely the opposite. While Galmudug, Hirshabelle, Southwest, Jubaland, Puntland, and “Somaliland” each receive $6 million, Northeast State receives nothing.

This is not a bureaucratic slip. It is a fundamental failure of federal fiduciary responsibility.

Recognition Means Eligibility, No Exceptions

When international funds are provided in the name of all of Somalia, the Federal Government has a legal and moral duty to distribute them fairly among all Federal Member States. The fact that a state is newly established changes nothing.

Northeast State met every constitutional requirement for state-building. Following a 53-day reconciliation and election process overseen directly by the Ministry of Interior, Villa Somalia formally recognized the state. Recognition confers eligibility. Eligibility mandates inclusion.

The Contradiction of “Social Cohesion”

The project’s very name Bulsho, meaning “community” or “social cohesion” makes the exclusion even more indefensible. Northeast State encompasses major population centers: Laascaanood (its capital), Laasqoray (its commercial hub), plus Buuhoodle, Badhan, Taleh, Dhahar, Xudun, and vast stretches of Sool, Sanaag, and Togdheer.

You cannot build cohesion by selectively investing. You cannot strengthen resilience while leaving the most fragile institutions deliberately unfunded.

The Erosion of Impartial Governance

Civil servants are bound by a duty of impartiality. When public officials amplify narratives that delegitimize a recognized Federal Member State or actively argue against its access to development funds, they do three things:

1. Erode public trust in government institutions
2. Politicize the civil service beyond acceptable bounds
3. Create a dangerous perception that federal resources are political rewards, not instruments of national need

The Double Standard: Non-Members Funded While a Member Is Excluded

The Bulsho framework includes entities that are not Federal Member States under Somalia’s Provisional Constitution. Yet it excludes Northeast State, which is a recognized member.

If fiscal capacity, service delivery gaps, and population need are the legitimate criteria for equalization transfers, then Northeast State should be at the front of the line, not absent from the list entirely. Denying funds to Northeast while channeling them to others is a clear case of unequal treatment. This practice must end. Immediately.

The Path Forward: Short-Term and Medium-Term Action

In the Short Term;

The Federal Government must request an amendment to the approved project and commit a specific allocation for Northeast State. The World Bank has established procedures for restructuring projects of this nature. Use them.

In the Medium Term;

Somalia needs a transparent, harmonized framework for managing international donor funds.
The formula must be:

· Agreed with all Federal Member States , not unilateral imposition.
· Based on objective criteria: population, fiscal capacity, service delivery gaps, and conflict impact
· Applied consistently, no region funded or defunded by discretion alone

A Matter of Principle, Not Convenience

Transfer mechanisms exist to ensure every Federal Member State can meet minimum standards of governance and service delivery. They are not political instruments. They are not optional.

Northeast State is not “too new” to be funded. It is too important to be ignored.

If Villa Somalia is genuinely committed to an inclusive federation, then investment must follow recognition. Every Somali citizen regardless of where they live deserves access to schools, clinics, clean water, and functioning institutions. Anything less damages national unity and erodes confidence in the federal system itself.

The Federal Government must act now:

1. Amend Bulsho and include Northeast State.
2. Publish the equalization formula for all future donor programs.

This is not optional. It is the right thing to do legally, politically, and morally.

* Dr Abdijalil Hassan ( Medical Doctor and Activist For Horn African neglected Communities)

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