Assessing the Impact of Policies in Developing Countries Using Social Accounting Matrices (SAM): The Case of Somalia 2025

This study explored Somalia’s economic structure and public policy landscape through the lens of the Social Accounting Matrix (SAM) framework, with the objective of positioning SAM as a viable tool for future evidence-based policy analysis. Drawing exclusively on secondary data, the study examined available information on government revenue and expenditure, macroeconomic performance, household welfare, labor market dynamics, and vulnerability indicators. Data sources included national reports such as the Somalia Integrated Household Budget Survey, Labour Force Survey, GDP Statistical Release, and the Financial Governance Report, among others. The analysis revealed critical trends including heavy reliance on external grants, limited capital investment, persistently high unemployment, and widespread household vulnerability. While existing indicators provided useful benchmarks, the study found that Somalia’s data systems remain fragmented and inadequate for constructing a complete SAM. The study concludes by recommending the establishment of a national think tank or coordination platform to spearhead SAM development, emphasizing the need for long-term investment in harmonized data systems and national accounts capacity. This paper serves as an early academic contribution to the institutionalization of SAM-based policy modeling in Somalia. Keywords: Developing Countries, Social Accounting Matrices (SAM) & Somalia