The current direct implementation funding model, where donors channeled the aid through the international implementing institutions with the minimal consultation of the Somaliland government, which turned the development to supply-driven rather than demand driven. The minimal contribution of Somaliland to its development by only 6.7% of its budget, which equivalent to only 3.6% of the total 2009 development budget turned Somaliland to remain just as mere aid receiver, as if it is in humanitarian status. Consequently, irrelevant prioritization, duplicity, gap, and increase of delivery cost are inevitable as approved by the following case study examples.

Somaliland development planning, funding, implementation, monitoring and evaluation are in unique situation as that of its diplomatic status, which created both opportunities and challenges. The Reconstruction and Development Program (RDP) prepared through participatory planning process by all stakeholders is the current five-year development plan of 2008-2012. The RDP is the product of the combination of the World Bank Interim Strategic Note, United Nations Transitional Plan (UNTP) for 2008-2010, and the EC and Norway Country Strategic Paper; and integrated with the local development inputs.