The Missing Role Of The Legislative Body: On The Management Of The Economy And Containing Inflation. By:Mohammed Dahir Ahmed

The legislative body of any nation on the planet performs an essential role in the life of a nation. It performs four major functions:

1. Making of new laws, changing existing laws and repealing laws which are no longer needed.
2. Representing and articulating the views and concerns of the citizens in major decision making processes.
3. Overseeing the activities of the executive so that the government is accountable to the people.
4. As an oversight body it identifies problems and policy challenges that needs attention.

Somaliland house of representative has an undeniable role on the two main economy policy tools namely monetary policy and Fiscal policy.

As far as monetary policy is concerned the House of representatives have an essential role in controlling the supply of money. The central bank can not print new notes without the prior approval of the House according to article 54^th   sub article three of the national constitution of the Republic of Somaliland.

On the other hand, the House has an important role in Fiscal policy according to article 55^th of the constitution:

1. The House of Representatives may debate and amend the Budget, and approve it by a resolution of the House.
2. If the new Budget is not approved before the start of the new financial year, the old Budget shall continue to be in force until such time the new one is approved.
3. The House of Representatives shall approve any expenditure which was not included in the Budget.
4. The procedures for the preparation of the general Budget and the financial year shall be determined by law.
5. The budgets and the annual accounts of the state organs, agencies, companies and other partly owned entities of the state and their presentation to the House of Representatives shall be determined by law.

Thus, the House of representatives has failed in his role in economic affairs and containing inflation. Specifically it has failed  its role in national monetary policy and Fiscal policy tools.

Similarly, On the other hand, the House led by Mr.Abdirahman Irro in the last 12 years failed to follow up the acts passed by the house as far as their implementation is concerned. A case in point is the central bank act passed by the house late 2012, which plainly stipulates the powers of the central bank, its board of directors, regulation of exchange bureaus, setting up of monetary policy mechanisms. Implementation of this act would have helped us to get a solution for the conundrums of exchange fluctuations and inflation hikes. All in all, none of the acts passed by this house has been implemented and no one has followed up why it has not being implemented.

BY:Mohammed Dahir Ahmed

Hargeisa,Somaliland