Urgently needed reforms to the security sector stalled and the Somali national army, the largest of the country’s security institutions, remains fragmented, while the Islamist insurgency against the Federal Government of Somalia continues.

More positively, the political and economic reform process initiated by Ethiopia’s new prime minister, its rapprochement with Eritrea, the liberalization of Ethiopia’s economy and the promotion of regional integration provide enormous economic opportunities for Somalia.

The government has failed to consolidate nascent federal structures, as the status of the federal member states and the tasks and responsibilities of the federal and central institutions were not clarified.

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