(Extract from Introduction)BRThis report elaborates the design of a local level natural resources monitoring and evaluation (MandE) system that assesses the status of the natural resources and the impact of development interventions on the status of the natural resources and the socio-economic systems of Somalia Using both conventional and participatory approaches, methods and tools. It incorporates the following: br• Ways to involve stakeholders in the Mand E process: br• A process for identifying indicative issues to be monitored in the various production systemsbr• A process for identifying indicators of change at local level in both the biophysical and socio-economic systemsbr• Appropriate participatory approaches, took, and methods for measuring changes in the selected indicatorsbr• A data storage and analysis system that harmonises the quantitative conventional monitoring data and the qualitative participatory monitoring data: br• A mechanism through which results of the MandE feed back into and strengthen the policy formulation, planning and management processes: br• Explores the linkages with macro level MandE system br• Requirements for implementation (personnel, training) are identified. The following questions guided formulation of the system: br• What is to be monitored: why/what is the monitoring intended to achievefor whom: what approach will be used? The system is designed to monitor impact of projects on both the natural resources and people, and to meet the needs and requirements of various stakeholders involved in the Rehabilitation Projects. These include donors, project staff and local communities. The proposed system builds on monitoring and evaluation methods and tools formulated and tested by IUCN and International Development Research Centre (IDRC). The principals of participatory planning designed by Andrew Inglis (IUCN, 1997) and the FAOandrsquos Community Forestry Manual 2 (FAO, 1993).