The Horn Economic and Social Policy Institute (HESPI)

About HESPI

The Horn Economic and Social Policy Institute (HESPI) is an independent, non-profit think tank and consultancy firm established in 2006 for the member countries of the Horn of Africa in particular and developing countries at large. HESPI provides high quality economic and social policy analysis and research on issues of interest to the sub-region. The Institute undertakes commissioned studies, policy, analysis and research for the public and private sectors in areas of regional or country specific interest, and provides institutional and human resource capacity building. HESPI assists with the formulation and implementation of sound economic and social policies, promotes high-quality policy research and analysis, and provides advisory service to facilitate broad-based and sustainable economic growth.

Vision Statement: To be regional institute of excellence and point of reference in socio-economic research, policy studies, reforms advocacy, and institutional capacity building.

Mission Statement : To contribute to the achievement of regional and national development goals in the IGAD sub-region by conducting objective economic and social research on issues pertinent to development of the region improving policy formulation and implementation for broad based economic growth and poverty reduction, enhancing institutional capacity for sound management, and promoting regional integration, stability and conflict prevention.

Target Beneficiaries: HESPI’s work targets policy makers at regional and national levels, development partners, and the non-state actor such as Civil Society Organizations (CSOs), the private sector and citizens of the IGAD sub-region and developing countries.

Core Values: HESPI will adhere to the following values:

• Dedication to excellence in research and policy analysis.
• Honestly and integrity
• Accountability and transparency.
• Diversity and equality
• Objectivity and independence of action

   a. Activities and Programs

The Economic Research Program

The main thrust of the work program of HESPI is policy research and analysis on development economic issues that are important in formulation of effective reforms. The core policy reforms include macroeconomic policy, public finance management, the role of institutions and good governance in development the role of domestic and international private investment in economic growth and poverty reduction, and the effective use of local finances and development assistance.

The Social Research Program

There are many challenges posed by current circumstances of the IGAD member countries in the social sector. Consequently, there is a need to stimulate sustainable investments in social service and to enhance cost effect development programs. The analytical work of the institute focuses on the strengthening of social services, in particular education and health.

Productive Sector services

The fact that over two-thirds of the population of almost all the countries of the sub-region is rural and depends exclusively on agriculture for its consumption and income generation means that measures to address the problems of poverty and food insecurity must mainly be found within the agricultural sector, including crops, livestock, fisheries, forestry and the conservation and management of water resource and broad environmental sustainability, as well development of competitive industries and services sector.

Regional Integration: Regional integration is a central objective of the IGAD member countries as a principal element in the pursuit of economic and social development. HESPI’s research and analysis gives prominence to the benefits of economic and social integration. The studies provide a basis for defining possible interventions to identify appropriate policies for economic and social integration, assist with the legal and regulatory framework that promotes integration. HESPI aims to provide broad understanding of the benefits of policy collaboration and harmonization in the sub-region.

Private Sector Development: The growth and development of the Horn of Africa countries requires viable and vibrant private sector. The formation of an optimal relationship between the state and the private sector could be better informed through more comprehensive research on the role of the state in a market-based economy. HESPI’s research and analysis address issues on role of the state in economic markets’ and the implications of regulations on economic management. The national and regional authorities need to recognize the key contribution of the private sector in the economic sphere as well as its potentially important role in the provision of social goods and services. 

Post-Conflict Issues: A key ingredient of the incidence of conflict in many developing countries has been inadequate economic and political governance, as well as high incidence of poverty and struggle over limited resources. The performance in the sub-region in the past several decades manifests the toll taken by various conflicts, in terms of destruction of economic and social infrastructure, as well as development opportunities foregone. HESI undertakes studies on the impact of intra- and inter-State conflict on national and regional developments, and the economic derivers of conflict as well as measures to resolve and avoid the recurrence of conflict.

   b. Intuitional Capacity Building in IGAD Countries

HESPI promotes a broader and more informed dialogue on key issues including institutional building activities pertinent to   specific nations or the sub-region by acting as a center for open discussion of fundamental institutional issues. Also HESPI contributes to capacity building through interactions in conference and seminars as well as tailor-made training in collaboration with partner institutions

Capacity Building for Financial Integrity in Somalia and South Sudan

The fragile states of the IGAD sub region have experienced prolonged insecurity and conflict that adversely affected institutional capacity in these countries. Thus depriving the countries of financial transparency and accountability in order to increase state legitimacy and trust between citizens and the state in these post conflict situations, HESPI, in 2012, started prioritizing the financial sector by focusing on improving the Public Finance Management (PFM) and ensuring financial integrity. In the process, HESPI realized that developing laws and tools were not enough in such contexts, but creating capacities to enforce them was critically important. Hence, training was conducted for more than 330 government officials (28%female) from financial integrity institutions (Ministries of economic planning and finance; the offices of auditor generals, and central banks). Generally, the cumulative support HESPI delivered on PFM helped the countries to develop strengthened legal framework and institutional structure, which are essential first steps in sound budget planning and execution. HESPI has received positive feedback from a range of participants that attended its PFM workshops.

 Role of Leadership in Ensuring Accountability in Fragile State

HESPI initiated several institution building interventions for senior official of fragile states on Public Finance Management (PFM). Members of the senior leadership from relevant committees of Parliaments as well as other senior officials attended several skill and knowledge transfer seminar and other capacity building events. A number of deficiencies and capacity gaps were identified in all core areas of PFM following such assessments, useful recommendations were developed which aimed at alleviating capacity constraints and improving PFM, fiscal discipline and good governance. Important issues in rebuilding post-conflict nations were addressed, including the role of leadership in PFM, state reconstruction and financial governance. HESPI also organized a seminar for Economic and Public Accounts Committees of the national legislatures of Somalia and South Sudan. Despite the insecurity and precarious situations of the post-conflict countries, HESPI’s interventions have moved the capacities of their PFM institutions to higher levels and created better sense of accountability.

Interventions in State Capacity Building in Somalia

The prolonged conflict in Somalia had destroyed the country’s state capacity. As a result, HESPI’s support in tackling the issue started in 2006 when rebuilding PFM and financial sector operations were non-existent. The institute commenced its intervention at the beginning of the Transitional Federal Government and delivered several strategic and technical support programs to improve institutional weaknesses. It extended its support initially by reviewing and updating various laws for enactment and enforcement. HESPI also conducted a consultative meeting on “Rebuilding Viable State and Effective Institutions in Somalia” in mid-2013 consisting of about 60 high level representatives. The event was followed by a seminar on fiscal and constitutional Federalism conducted in collaboration with the IGAD Secretariat, which brought together about 150 members of senior leadership and diaspora, similarly, it led a leadership and good governance seminar, which enlightened participants on post-conflict recovery issues. HESPI’s recommendations enhanced policies and the capacity of PFM institutions. A joint government and donor process is now being put in place to further improve financial integrity.

Support for Cooperative Federalism in Somalia

As part of its institutional capacity building, HESPI initiated dialogue in fiscal and other aspects of federalism among the Somali stakeholder. It played a pivotal role in initiating, guiding and creating a Somalia Federalism Network (SFN) to foster a decentralized governance system.

HESPI assisted stakeholders in understanding the prevailing state building context by conducting focused regional scope studies on the foundational basis of federal governance, fiscal federalism and decentralization. The institute also organized events to bring together diverse groups of Somalis to seek viable options on federal governance. In the process, HESPI led a series of events in Ethiopia, Djibouti and Uganda to initiate and nurture the federalism discourse to maturity. As a result of these event, cooperation and dialogue among regional states and the Federal government of Somalia were enhanced, negative perceptions began to change, constituents were empowered and more contentious issues were understood and articulated. 

HESPI Annual Conference on IGAD Economies

HESPI has created an annual conference that provide an avenue for dialogue on economic and social research findings between policy makers and researchers in the IGAD region. Since 2014, these annual economic conferences have been instrumental in informing participants on sound policy reforms based on empirical research findings. The institute has so far successfully completed four annual flagship conferences on IGAD economies. They have drawn interest from key stakeholders and representatives from research institutions, IGAD member governments, the IGAD Secretariat and UNECA. Feedback sharing, IGAD member states benefit from policy recommendations, which have influenced multiple sectors in the region.

Policy Forums on Topical Issues

The institute has been organizing topical policy forums on sectors such as infrastructure, finance, energy, security and capacity building. The informal feedback from participating researchers and policymakers showed that knowledge sharing and dissemination policy measures had impact on IGAD member states. Dialogue based on research study findings and policy recommendations inform and influence policy makers. These forums have been hosted at the UNECA conference Hall and other venues in Addis Ababa, Ethiopia in the presence of senior policy makers of the Federal Democratic republic of Ethiopia, and representatives of a wide cross section of civil society. Also, representatives from UN agencies and diplomatic missions are usually invited and have participated. 

   c. Governance and Management

International Advisory Panel: HESPI has an international Advisory Panel, which comprises a prestigious group of experts from the sub-region and abroad who have a strong commitment and passion for economic and social development of the Horn of Africa and other low income countries. The current Advisory Panel comprises of eight members.

Board of Directors: HESPI’s Board of Directors of 10 members exercises oversight over the strategies, policies, operations, and finances of the institute. The board of Directors is currently chaired by Amb. Peter Robleh (PhD). The board of Directors meets at least two times a year and the Executive Committee meets more frequently as necessary.

Management Team: The Management team comprises Dr. Ali Issa the Managing director, Mr. Daniel Fantaye the programs manager, Dr. Haile Kebret the research director, Dr. Fredu Nega senior research fellow and Ms. Hiwot Gezahegn the accounts and finance manager.

How we work: The institute conduct its work though its own staff and a network of research Associates. HESPI advocates and promotes the formulation and implementation of sound economic and social policies through high-quality research and policy analysis, and providing advisory services to facilitate broad-based economic growth and poverty reduction. HESPI also conducts commissioned studies and institutional capacity building, to assist with better management of social and broad-based sustainable economic growth.

Our Partner: Institutions with financial and/or technical association with the institute

• African Capacity Building Foundation; Harare, Zimbabwe
• African Development Bank; Abidjan, Ivory Coast
• African Economic Research Consortium; Nairobi, Kenya
• Global Development Network (GDN); Washington DC, USA
• World Bank; Washington Dc, USA

HESPI partner with formal MoUs signed

• African Economic Research Consortium (AERC) December 2016; Nairobi, Kenya
• Kenya Institute for Public Policy Research and Analysis (KIPPRA) December 2016; Nairobi, Kenya
• ASAL Group, September 2015; Mogadishu, Somalia
• Intergovernmental Authority on Development (IGAD) Secretarial, May 2015; Djibouti
• Ebony Center for Strategic Studies, March 2015; Juba, South Sudan
• The institute of Policy analysis and Research (IPAR) October 2014; Kigali, Rwanda
• The United Nations Economic Commission for Africa (UNECA) November 2013; Addis Ababa Ethiopia
• The African Development and Economic Consultants Lld. March 2009; Nairobi, Kenya
• Uganda Management Institute, February 2009; Kampala, Uganda

Partner with cooperation arrangements in place

• Republic of Djibouti
• Federal Democratic Republic of Ethiopia
• Intergovernmental Authority on development (IGAD) Office of the Facilitator for Somalia Peace and National Reconciliation

OUR SOCIAL MEDIA

Website : www.hespi.org

LinkedIn : https://www.linkedin.com/company/hespi/

Twitter : @HESPIOFFICIAL

Facebook: https://www.facebook.com/hespiofficial?mibextid=LQQJ4d