Key Documents of the 2nd Istanbul International Conference on SomaliaIstanbul, Turkey, 31 May – 01 June 2012

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Jun 4th, 2012
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Key Documents of the 2nd Istanbul International Conference on Somalia

Istanbul, Turkey, 31 May – 01 June 2012

I.    Statement by the Chairperson of the AU Commission

Excellency Rt. Hon. Erdogan, Prime Minister of the Republic of Turkey,

Excellency Sheikh Sharif Sheikh Ahmed, President of the Transitional Federal Government of Somalia,

Excellencies Heads of State and Government,

Excellency Mr. Ban Ki-moon, Secretary General of the United Nations,

Excellencies Heads of Delegation,

Representatives of regional and international organizations,

Members of the Diplomatic Corps,

Distinguished Guests, Ladies and Gentlemen,

It gives me great pleasure, to have, once again, the privilege and honor of being in this great and historic city of Istanbul, the only place where the west and the east truly meet at both the geographical and civilizational levels. Istanbul is indeed a fitting place to host this all important international conference on Somalia.

Excellencies, we are gathered here at the most critical time in the Somali peace process. We are left with only a few months to the end of the Transition. But we are also gratified and fortified with the knowledge that our meeting is taking place on the heels of an epoch-making consultative meeting of the Somali Signatories of the Process for finalizing the Transition. This defining meeting, which took place from May 21 to 23, in Addis Ababa, was hosted by the African Union Commission and facilitated by the Office of the UN Special Representative for Somalia.

The outcome of the meeting in Addis Ababa, now commonly referred to as the Addis Communiqué of 23 May 2012, has made our task, here today, the easier. It helps us focus on actions that should ensure that the new Roadmap, with its very clear and achievable benchmarks and tight timelines, stays on course and on target. The new Roadmap is a product of the collective will of the Somali leadership for the greater good of the Somali people.

It is still in-line with our Istanbul Conference of 2010 stand, when then, we urged the Somali leaders and institutions to take ownership of the peace process and actively pursue the full implementation of the transitional arrangement, including critical tasks such as: (i) integration of TFG and its allied forces into a unified national security apparatus; (ii) re-establishment, training and sustenance of the Somali security sector institutions; (iii) drafting of a new Federal Constitution; and, (iv) acceleration of outreach, reconciliation and stabilization efforts;

We also reaffirmed our commitment, as international community, to supporting the Somalia Transitional Federal Institutions, civil society and the private sector towards the attainment of peace, reconciliation and prosperity after so many years of hardship and suffering.

I would like to personally thank H.E President Sheikh Shariff for acknowledging AMISOM efforts in Somalia and Troop Contributing Countries (TCCs) for their continued support and commitment.

Then and as now, the people of Somalia need concrete support. They have dared to invent their future. We cannot fail them at this, their greatest hour of need.

Are we ready to play our respective parts? That is the underlying challenge to be affirmed by this conference.

Excellencies, Ladies and Gentlemen,

It is instructive to recognize and commend Turkey’s direct support to the Somalia Transitional Federal Institutions. Turkey is providing life-saving relief assistance to the Somali people, who, we all know, have suffered one of the worst humanitarian disasters in recent history.

Allow me to loudly applaud the strong personal commitment demonstrated by Prime Minister Erdogan Secretary General Ban Ki-moon and the Foreign Minister, Professor Davutoglu,  for their tireless efforts in making Istanbul II a reality and a resounding success.

Thank you.

END

II. Opening Remarks by the UN Secretary-General

I congratulate Prime Minister Erdogan for making Somalia a priority. As he just introduced himself, he visited Mogadishu last year with his family, cabinet members and their families. It was a strong show of solidarity with the Somali people.

Turkey has an impressive track record of working with Somalis. Turkey’s diplomats are in Mogadishu. Turkey has built roads, hospitals and schools … giving hope and help.

At the time of the 2010 Istanbul Conference, Somalia was one of the world’s most intractable crises. That meeting was a turning point. By last December, conditions improved enough for me to make the first visit by a Secretary-General in nearly two decades.

This February, at the London Conference chaired by Prime Minister David Cameron, I shared my vision for a productive and peaceful Somalia. I’d like to commend and thank the British Government for their leadership which led to the second Somalia conference in Istanbul. I called for steps to improve security … advance the political process … and boost assistance for recovery, reconstruction and development. Today we carry this vision forward.

My message to this Conference and the world is this: Commit to long-term assistance for Somalia. Somalis have moved to complete the Roadmap for Ending the Transition. Somali leaders have confirmed that the transition will end on August 20th.

Right now, elders from Somali clans are meeting in Mogadishu to select the Constituent Assembly. Its members – men and women – will adopt a new interim Constitution and select a new Parliament. The provisional Constitution will be an historic starting point.

I congratulate Somali leaders for bringing their country so far. I especially applaud their ground-breaking commitment to ensure that women hold 30 per cent of all seats in the new institutions.

The end of the transition marks the beginning of a new phase in the political process … a new phase of inclusive dialogue where all Somali voices should be heard.

The Constitution will have to be finalized based on the full spectrum of views. It must reflect international human rights standards. It should be put to a referendum open to all Somalis. And all Somalis, regardless of gender, clan or political affiliation, should be able to take part in elections.

Let me emphasize again as the Secretary-General of the United Nations the importance of applying the decision for 30 per cent inclusion of women in bodies to be established to end the transition and to be enshrined in the constitution to be adopted. In the transition toward a better future of Somalia it is crucially important to ensure that women’s rightful place be established in their society.

I pay tribute to the Somalis who are building this new future. They have the UN’s full support. Alongside these important steps, we are aware of the challenges.

Last month, the Ministry for Constitutional Affairs and Reconciliation organized a conference devoted to freedom of expression. The Somali President rightly committed to ending impunity for violence against journalists.

Just one week later, radio broadcaster Mr Ahmed Addow Anshuur was shot to death – the sixth journalist to be killed in Somalia in just five months. The enemies of peace want to silence brave Somalis who fight for truth. We cannot let this happen.

Journalists must be able to work without fear. I welcome the continued commitment of Somali leaders and urge them to keep human rights at the centre of the political process. I call on the authorities to investigate such crimes, especially targeted assassinations, and to hold the perpetrators accountable.

The Transitional Federal Government and its successor will have to earn the population’s trust and quickly start delivering the security and basic services that Somalis expect and deserve.

This is especially true for areas recovered from Al Shabaab terrorists. We urgently need assistance to avoid any power vacuums that warlords might exploit. This is more than a question of “quick wins.” Somalia needs to develop its economy over the long-term. The international community is united. The United Nations will lead in helping to achieve peace, stability and prosperity.

Our Political Office in Mogadishu, UNPOS, led by Special Representative Mahiga, is relocating more staff inside the country. I commend the leadership of Special Representative Mahiga and his staff for their hard work and I encourage other partners who are present here today to join us there.

I pay tribute to the extraordinary sacrifices of the African Union, AMISOM and troop-contributing countries. I offer condolences to the families of fallen soldiers. They braved danger so that Somalia could enjoy peace.

At the same time, we have to recognize that international forces are never a long-term solution.

Somalia needs its own strong and trustworthy security and justice institutions to consolidate progress, secure borders and protect people.

Somalia also needs to build its capacity to uphold the rule of law, and address the pervasive culture of impunity. This will also help tackle piracy and promote stability across the entire sub-region. That is why the United Nations will support the Afrıcan Union’s work to identify specific requirements for Somali security forces operating alongside AMISOM. Success in building the security sector and rule of law now and in the future demands far greater engagement from both the Somalis and the international community. I urge donors to contribute to this critical effort.

In the face of terrorism, piracy and drought, Somalia needs solidarity. Somalia has a private sector that can help rebuild the country.  Somalia’s women and youth, if given the opportunity, can transform the nation. But partners have to step up and do their part. We need a comprehensive investment plan that involves all actors. I ask you to consider how to contribute long-term, predictable support for Somalia.

I congratulate Somalia for embracing the Busan “New Deal” on fragile and conflict-affected States put forward last November at the Fourth High-Level Forum on Aid Effectiveness, which was held in Busan, Korea. This will help focus on five key ingredients for stability: legitimate politics, justice, security, economic foundations and revenues and services.

I urge the TFG and its successor to forge a new, more effective and accountable framework for development.  The aim must be to build resilience and break the cycle of emergencies.

International cooperation is essential. Nations are working together to stop piracy in the Gulf of Aden. AMISOM proves the value of cooperation between the UN, the AU and Member States. The World Bank is engaged.  Here in this room we have partners who can join forces to make a major difference for Somalia’s future.

Today I ask all of you to make this happen – in memory of those Somalis who have died, and in service to those who deserve to live in peace and prosperity for generations to come.

Thank you for your leadership and commitment.

END

III.    Conclusions of the First Day of the Conference – 31 May 2012

General Conclusions

The Conference emphasized the importance of encouraging inclusive and equitable growth to reduce poverty in Somalia, including through the promotion of inclusive business practices. It was acknowledged that without stability, security, capable authorities and the rule of law, economic growth and large scale investment would be significantly constrained.

Participants agreed on the importance of planned and prioritised public sector institutional capacity development at all levels to provide institutional oversight as well as to establish and implement a regulatory framework, including appropriate standards for civil works. Alongside this, the Conference recommended the establishment of private-private partnerships to strengthen the capacity of the local contracting industry to participate in tenders and deliver on contracts.

It was reiterated that large scale, multi-year, predictable financing was urgently needed, both for infrastructure projects and to enhance the resilience of Somali communities. It was agreed to explore the role and design of an investment guarantee fund in Somalia without any delay.   The Conference agreed on the importance of determining a number of priority infrastructure projects for which in-depth feasibility assessments should be undertaken.

Resilience Conclusions

Recognizing the urgent need to enhance resilience of Somali households and communities, the Conference agreed on the need for sequenced, multi-year and sectoral investments that are specific to each geographic reality within Somalia. Such investments will create productive opportunities and expand basic social services. Job opportunities for men, women and youth represent essential employment instruments in this regard.

The Conference confirmed the importance of timely, predictable and transparent safety nets that would protect vulnerable households as well as enable them to take advantage of new opportunities and access social services while enhancing their capacity to respond and adapt to shocks and hazards.  The Conference acknowledged that good governance supports the resilience outcomes, and highlighted the need for Somali communities to be at the centre of this process, in order to create stability. Several partners are aligning their current engagement in Somalia and others are encouraged to do so.

The Conference recognized the importance of a household and community approach towards resilience and strongly encouraged the international community and Somalis to support it. Success will depend on international assistance evolving to medium – longer term strategic investments in Somalia, with less reliance on short term ad hoc response. The partners on community resilience support the realignment of their respective programmes and the monitoring on a regular basis of the implementation of the resilience strategy.

Water Conclusions

The Conference recognized that local private sector initiatives have made significant progress in improving water systems in towns and in some rural areas. This entrepreneurship is a driving force in water system development locally, despite on-going conflict and the constraints of post-conflict reconstruction. There is therefore clearly both a need and a case for investing in water infrastructure in Somalia. Through partnership, outside investment can capitalise on the capacity of the local private sector and widely established localised management models.

The Conference also recognized that a common strategy for the development of the sector should focus on investment in systems and people, with systems investment in hardware, software, and regulatory frameworks, and in people in vocational, management, and governance capacity.

It should follow three core principles:

Management and service delivery are decentralised to the extent possible and make use of innovative technologies.

Investment in any infrastructure must include investment in human resources, and sustainable operation and maintenance capacity. Through regulation, public needs and private sector interests should be balanced allowing for the development of a pricing strategy for sustainable cost recovery.

All development in the sector must take place under a common strategic framework that is enacted through government-led sector coordination and within a multi-threat risk management framework.

The Conference further recommended that targeting and sequencing of water development initiatives should be based on needs and take into account existing inequities in water access.

Roads Conclusions

The Conference noted that Somalia’s road network is barely adequate to meet the transport needs of the economy. It also acknowledged that its condition had deteriorated sharply due to low investment and maintenance. It was agreed that Somalia had very limited capacity and an under-defined institutional and legal framework–though some routine maintenance work had been successfully completed.

The Conference further noted that future action should be categorized as short term or medium term as follows:  In the short term (two years), the focus should be to undertake a comprehensive road inventory and, on that basis, formulate a road transportation masterplan for the next five to ten years.

At the same time, the Conference affirmed the critical importance of developing institutional capacity in the sector by defining an institutional framework; training sector staff and supplementing them with international expertise (including where possible from the Somali diaspora); and developing guidelines for sector-specific procurement, tendering and contract administration.

Over the medium-term (three to five years), larger-scale reconstruction would involve selecting projects to be implemented, based on technical and economic feasibility studies and identifying potential anchor financing (including possibly multi-year donor trust funds).  The Conference also stressed that nationally-owned road contractors should be involved to the greatest extent possible.  Priority road rehabilitation and construction projects should be realized as soon as is feasible in order to meet the road accessibility needs of the Somali people.

Energy Conclusions

The people of Somalia have suffered from a lack of access to reliable and efficient energy and call upon the United Nations and other international organizations to take measures to mitigate energy poverty on an urgent basis.

The Conference agreed that access to reliable sources of energy is critical for improving social indicators and triggering economic development in Somalia. It welcomed the offer by the Republic of Turkey to field a technical mission to undertake a detailed assessment to identify gaps and prioritise investments in the energy sector in Somalia.

Participants concluded that Energy Sector Investment Plans needed to be developed at the national level to ensure that initiatives deal comprehensively with the energy challenge.  It was noted that tripartite partnerships between the governmental institutions, the private sector and development partners needed to be nurtured. The Government of Turkey in collaboration with Somali government institutions and the United Nations agreed to support the development of institutional structures in the field of energy and natural resources.

The Conference took note of the need to initiate vocational trainings and university level studies in order to develop a trained work force that is able to respond to the changes in the energy sector and is well positioned to set up related businesses. Participants endorsed the proposals by the Republic of Turkey to offer training in the energy sector in Somalia.

END

IV.    Final Declaration of the 2nd Istanbul International Conference on Somalia – 01 June 2012

The Second Istanbul Conference on Somalia, under the theme “Preparing Somalia’s Future: Goals for 2015,” took place on 31st May and 1st June 2012. Maintaining the multi-dimensional and multi-layered approach of the first Istanbul Conference in 2010 on Somalia, it was attended by high level representatives from 57 countries and 11 international and regional organizations, as well as by the TFG leadership, the regional administrations, and representatives from wide-ranging segments of Somali society, including youth, women, business community, elders, religious leaders and the Diaspora.

Introduction

2. The Conference reaffirmed its respect for the sovereignty, territorial integrity, political independence and unity of Somalia. It agreed that for genuine peace to take hold in Somalia, Somali people should seek dialogue, reconciliation and political cooperation including in establishing inclusive, accountable and legitimate governance. The Conference is grateful for the wide-scale and strong Somali participation, including women, in this Conference, and the powerful and meaningful messages they have pronounced.

3. The Conference noted that at this critical period in Somalia’s history, the security, political, social and economic achievements of the past year have given Somalis and the international community a renewed hope for the future. Somalia has made considerable progress towards achieving stability, security and reconciliation: this opportunity should not be missed. The Conference emphasized that August 2012 is the beginning of a new phase of peace-building, in which all Somalis would contribute to peace and have their voices heard.

4. The Conference highlighted that primary responsibility for establishing a political solution in the country lies with Somalis. The role of the international community is to support Somalis to provide leadership and ownership in rebuilding a functioning state and local governments that can provide security, ensure the rule of law and respect for human rights, provide basic social services and create an enabling environment that allows for economic opportunity for all its citizens.

5. It reconfirmed the importance of the London Conference that constituted a milestone in gathering the international momentum on Somalia, and pledged to ensure a continued coherent and cooperative international approach.

Political

6. The Conference reiterated that the transitional period will come to an end in August 2012 in accordance with the Kampala Accord, the Roadmap, the Garowe I and II Principles, the Galkayo Agreement and re-affirmed commitment made by the Signatories to the Roadmap through the Addis Ababa Communiqué. It called for the timely implementation of these decisions and delivery of pledged funds. The Conference commended the convening of the Traditional Elders in Mogadishu who are carrying out their task of selecting the members of the Constituent Assembly and the new Parliament. It welcomed their efforts to ensure that women meaningfully participate in the process and constitute 30% of the Constituent Assembly and the new Parliament and the role of women is enshrined in the constitution.

7. The Conference welcomed the intention that the Constituent Assembly adopts the provisional constitution of Somalia. It highlighted the importance of Somali ownership of the constitution through a public debate and future adoption through a referendum. The Conference also commended the ongoing public consultations and civic education process in order to allow the Somali people to have their voices heard and participate in the political process. The Conference urged the Roadmap signatories to expand this effort to include newly recovered areas.

8. The Conference expressed the firm expectation that the selection process of the leaner and more representative Federal Parliament is completed in a fair and transparent way without any hindrance and that the elections for the positions of Speaker (and Deputies), and President by the new Parliament are carried out smoothly by 20 August 2012.

9. The Participants reiterated their firmness in not allowing internal and external actors or groups to disrupt the smooth implementation of the end of the Transition. In this context, they commended the joint AU-IGAD-UN letter of May 2012 to such potential actors in Somalia. They agreed to consider appropriate follow-up action against those judged to be blocking progress in the political process.

10. The Conference reiterated the crucial need for the international community to support dialogue that Somaliland and the TFG have agreed to pursue.

11. The Participants looked forward to the beginning of a new political dispensation, with a new Parliament and Government, and emphasized the importance of those institutions coming to fruition through a more representative, transparent and legitimate process.

12. In keeping with the London Communiqué, the Conference reiterated that respect for human rights must be at the heart of the peace process. It welcomed the Memorandum of Understanding signed between the Transitional Federal Government and the United Nations on 11 May 2012, and called on the Somali authorities to follow through with their commitment to uphold human rights and the rule of law, and put an end to the culture of violence and impunity, and bring about accountability. The Conference called for all parties to commit themselves to transitional justice mechanisms in the Post-Transition period.

13. The Conference emphasized that in the post-Transition period, the new political dispensation in Somalia must begin with a new program aimed at re-establishing of state and local institutions and administrative structures, based on and complementary to the current Roadmap including the newly recovered areas.

14. The Conference noted need to adjust international support to the political structures in Somalia and called on the UN to review the shape of its future engagement in Somalia.

Security and Justice

15. The Conference agreed on the need to revitalize funding arrangements. The Conference took note of the proposal for the establishment of a new “Rebuilding and Restructuring Fund for the Somali Security Sector” initiated by Turkey to offer additional support to the Somali security forces.

16. The Conference recognized the need for the international community to continue to support the re-establishment of a professional, inclusive, disciplined and well-equipped security apparatus, including the Somali national army, police, navy, coastguard and intelligence agencies, as well as mechanisms to ensure civilian oversight of the security sector. The Conference emphasized the urgency to approve and implement the National Security and Stabilization Plan and the need to bring all Somali forces under a unified command. In this context, it recognized the significant contributions that the EU, including through the EU Training Mission, the US and Italy are providing in support of the Somali security sector institutions. The Conference encouraged broader support to these institutions.

17. The Conference commended the ongoing support of the international community for AMISOM, particularly by the United Nations, the European Union, IGAD member-states and the US and other bilateral partners. The Conference called on new donors to provide financial support to AMISOM troops including salaries, entitlements, reimbursement of contingent-owned equipment (COE), and enabling assets.

18. The Conference praised the efforts of the African Union through AMISOM and particularly those of Uganda and Burundi who have made troop contributions to AMISOM, and looking forward to the completion of troop deployments from Djibouti, Sierra Leone and Kenya. Today AMISOM, alongside its Somali Security Force allies is the main military instrument in ensuring security and stability in Somalia. We emphasized that the TFG and AMISOM have to be strongly supported by the international community at this critical juncture to meet objectives.

19. The Conference agreed that insecurity in Somalia, including sustained inter clan conflict, persistent violence, illegal charcoal trading, misappropriation of funds, piracy, kidnapping, terrorism and human rights abuses and violations, is exacerbated by the crisis emanating from the deficiency of the state structures and institutions in large parts of the country. It condemned all acts of violence against civilians, including journalists, and humanitarian workers in violation of international humanitarian law and human rights law.

20. The Conference reiterated its commitment to coordinate its efforts in support to the security and justice sectors through a re-invigorated Joint Security Committee and its technical working groups and looked forward to discussing proposals in this regard.

21. The Conference reiterated the need for effective rule of law institutions. The Conference stressed the importance of a broad consultative process in developing a plan to strengthen justice and correctional institutions and called for the establishment of a task force consisting of the TFG and international partners.

22. The Conference rejected all forms of terrorism, violations of human rights and violent extremism which endanger the lives of the Somali people, as well as regional and international peace. The Somali population has suffered a great deal at the hands of violent extremists and participants agreed to work together to help build capacity to confront the root causes of terrorism, tackle terrorism in the region, and disrupt their travel to and from Somalia. It agreed to work with the Global Counter-Terrorism Forum and other international and regional bodies to deliver this important work.

23. It condemned the use of child soldiers and sexual violence by the combatant sides. The Conference also deplored the recent attacks against journalists. Those who are responsible must be held to account. The Conference called on all Somalis to renounce unlawful acts of violence, to operate within a constitutional framework and to support the ongoing political process. Those who refuse to do so, and instead engage in or support violence and crime, should be dissuaded, isolated, or otherwise prevented from derailing the Roadmap and the process of Somali reconciliation and state-building. The Conference resolved to develop further a programme to support those who renounce violence.

24. The Conference reiterated that the problem of piracy off the coast of Somalia requires a comprehensive approach on land as well as at sea that addresses the root causes of the phenomenon and combines development, capacity-building, rule of law, deterrence and prosecution on the basis of UNSC Resolution 2020 (2011) and full compliance of international law. It called for the reinforcement of Somali-owned judicial capacities. The Conference looks forward to discussing the issue of piracy in depth and at length during the UAE’s Second High Level Piracy Conference “A Regional Response to Maritime Piracy: Enhancing Public Private Partnership and strengthening global engagement to be held in Dubai on 27-28 June 2012 and the International Piracy Conference to be held in Perth, Australia on 15-17 July, 2012. The Conference further supports the ongoing work of the Contact Group on Piracy off the Coast of Somalia, including its forthcoming 12th Plenary Meeting to be held in New York on 25 July 2012.

Local stability

25. The Conference recognized that the Somali leaders with the support of the international community face a huge challenge in ensuring a stable and secure environment in the recovered areas as soon as possible. A power vacuum must not be allowed to develop in those areas.

26. We took note of the work undertaken by the TFG and local governance structures to promote stabilization and reconciliation in the newly recovered regions in Somalia. We welcomed the establishment of the National Policy for Reconciliation and Stabilization in these areas and noted the need for continued political cooperation, through a transparent and inclusive process that facilitates the development of effective governance and stability. The Conference further takes note of the TFG national reconciliation and stabilization plan for the newly recovered areas and urges regional and international partners, including AU, IGAD and the UN to support this comprehensive plan.

27. The Conference called upon the international community to consider further ways and means of stabilizing and securing emerging areas of stability and sustaining these through governance programs. The Stability Fund established at the London Conference shall serve this purpose and thus should be supported.

Economic Development and Recovery

28. The Conference recognized the continued fragility of the humanitarian situation. With international support in the summer of 2011, Somalia was able to overcome the famine and avoid further exacerbation of the humanitarian crisis. However, more than 2.5 million Somalis remain in crisis and the risk of a further deterioration persists. The Conference called for immediate, unhindered access to all populations in need, respecting agreed humanitarian principles.

29. The Conference recognized the primary role of the Somali authorities as well as the important role of the international community in assisting Somalis in strengthening resilience. The Conference welcomed the Partnership Forum’s efforts to build consensus on preventive and preemptive policies in this regard, and pledged to continue the dialogue.

30. The Conference underlined the importance of finding durable solutions for refugees and internally displaced persons (IDPs). It stressed in particular that protection of civilians in accordance with international humanitarian and refugee law must be maintained at all times by all parties.

31. The Conference recognized the need for a new phase in the approach to Somalia’s economic recovery.

32. The Conference underscored its belief that without special and equal emphasis on the reconstruction area, work in other spheres would be incomplete. Starting to rebuild Somalia’s infrastructure in Mogadishu and other areas will contribute to Somalis’ confidence in their future and constitute an incentive and encouragement for all segments of Somalia to reconcile.

33. Following the outcomes of the working groups on the first Istanbul Conference on Somalia, participants took note of the discussion of the four Partnership Forums on 31 May, attended by participants from Government, international organizations, donors, civil society and the private sector. It stressed that large-scale multi-year predictable financing was urgently needed both for infrastructure projects and to enhance the resilience of Somali communities. The Conference recognized the importance of harnessing the skills and capacity of the private sector and the Somali diaspora (Please see Annex 1.)

34. The Conference noted the importance of creating the right investment climate and agreed that offering conditional investment guarantees will provide a strong incentive for economic development with equity.

35. The Conference emphasized the importance of encouraging equitable growth to reduce poverty and deprivation in Somalia including through the promotion of inclusive business practices and service provision. Participants agreed on the need for capacity building in the public and private sectors. It was noted that institutional development was needed to ensure government can establish a socially responsible and business-friendly regulatory environment. They recognized the importance of diversification of energy sources, improvements in the quality and scope of the transport infrastructure in a way that supports economic development and investment in urban water supply, rural water supply, water resource management and water governance.

36. The Conference resolved to continue the discussion through further public-private dialogue, supported by the United Nations as well as the Istanbul International Centre for Private Sector in Development.

37. The Conference welcomed ongoing negotiations to establish a mutual accountability regime built around the proposed Joint Financial Management Board (JFMB). It urged the early conclusion of the negotiations establishing the JFMB and noted that the international community remains committed to helping Somalia better regulate its finances and development assistance.

38. The Conference welcomes the establishment of a multi-donor Trust Fund for post-Transition financing.

Conclusion

39. The Conference expected the ICG to be held in Rome on 2-3 July to take stock of the progress made here in Istanbul and give the final impetus to the very last part of the Transition.

40. The Conference commended the UN, the African Union, the IGAD, the EAC, the EU, the OIC and League of Arab States, and other bilateral partners for their relentless efforts in stabilizing Somalia. It welcomed the relocation of UNPOS and encouraged the UN to continue to relocate staff inside Somalia. Donors are encouraged to support this. The Conference also encouraged other organizations and countries to increase their presence in Somalia.

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