1. THE COMPACT

2. A foundation with a new beginning of a sovereign, secure, democratic, united and federal Somalia in peace with itself and with the World.

3. Based on Core Group previous observations, the Compact will be designed to: -focus on areas of strengths and weaknesses, - simple and flexible, -selective to focus on priorities,

4. - balanced in regional priorities, - realistic measures based on challenges and easily implementable,

5. - Oriented to specific strategies to develop Peace and State-Building Goals (PSGs), - Shared and consulted with the Regions, Civil Society and Donors, - Owned and led by the Federal Government of Somalia

6. Where are we Today? Five Peace State-Building Goals Groups (PSGs) established: - 1) Political inclusivity - 2) Security - 3) Justice - 4) Economic foundations - 5) Public Finance Management (PFM), Revenue and Services.

7. All five PSGs Groups held their first meeting and agreed on criteria to develop COMPACT based on the Concept Note. Each of the five PSGs groups will identify several policy framework priorities as indicated below:

8. PSG 1 Constitutional Reforms, Enactment of Legislations, Regional outreach and International Relationship, PSG 2 Security Sector Reform, Establishment of National Security Council, Integration of Regional forces into Somali National Army, Reintegration of disengaged fighters, Establishing effective Command Control & Communication

9. PSG 3 Strengthen rule of law, democratic oversight and independent justice institutions, Improving access to justice, Building capacity and allocation of adequate resources to Justice institutions,

10. PSG 4 Sectoral: Agriculture, Livestock, Fisheries, Health and Education, Environment, Water and Energy Resources, Institutions and Capacity Building, eradication of poverty, Telecommunication reforms, Gender quality and women empowerment,

11. PSG 5 Public Finance Reform, Generation of Revenues, Monetary reforms (Local Currency),

12. - The Financing Architecture Mechanism, - Aid Effectiveness, Complementary Documents: - Two Years Economic Recovery Programme Other components will be included in the Compact, such as:

13. Our Goals: - Somali-led Somali-owned Process, - Inclusive Compact, - Strengthened Governance, - United, Federal and Democratic Somalia,

14. THE COMPACT - Deliverable commitment from the international community, - Technical and financial support driven by the country system. - Agreed risk sharing with a mechanism of mutual accountability, - Treatment as a normal resilient country,

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