Table 1. Benin:
Summary and Timetable for
Macroeconomic and Structural Adjustment Measures,
1998-2001 |
|
 |
Policy Areas |
|
Strategies and Measures |
|
Timetable |
|
Technical Assistance |
|
| 1. Government finance |
|
a. Budgetary
procedures |
|
Improve budget execution and control procedures by |
|
|
|
DANIDA and France |
| |
|
- abolishing the procedure of the complementary
period;
|
|
December 1998 |
|
| |
|
- implementing the new procurement code and application
decrees; and
|
|
March 1999 |
|
World Bank |
| |
|
- preparing an action plan for improving spending
procedures.
|
|
February 1999 |
|
World Bank |
| b. Tax department |
|
Strengthen the unit in charge of the taxation of large enterprises (DGE)
by |
|
1998-99 |
|
IMF |
| |
|
- rehabilitating the taxpayer register;
|
|
November 1998 |
|
|
| |
|
- restructuring DGE and establishing a single file per
taxpayer;
|
|
January 1999 |
|
|
| |
|
- implementing a computerization plan for DGE;
and
|
|
1998-1999 |
|
|
| |
|
- rehabilitating the system to ensure on-time tax
payments.
|
|
March 1999 |
|
|
| |
|
Reorganize tax auditing. |
|
1999 |
|
|
| |
|
Unify rates for advance payment on profit taxes collected on
imports. |
|
January 1999 |
|
|
| |
|
Improve the simplified tax reporting system
(RSI).
|
|
January 1999 |
|
|
c. Customs
department |
|
Complete computerization of main custom offices, including those in
charge of petroleum products. |
|
March 1999 |
|
|
| |
|
Prepare quarterly reports comparing customs and preinspection
data. |
|
April 1999 |
|
|
| |
|
Ensure utilization by customs offices of the port of Cotonou
database. |
|
June 1999 |
|
France |
| |
|
Computerize exemption-monitoring system. |
|
January 1999 |
|
|
| |
|
Create a database on import values. |
|
December 1998 |
|
|
| |
|
Implement the West African Economic and Monetary Union
(WAEMU) common external tariff, including |
|
1998-2000 |
|
|
| |
|
- applying new import classification;
and
|
|
January 1999 |
|
|
| |
|
- implementing common external
tariff.
|
|
January 2000 |
|
|
d. Current
expenditure |
|
Gradually reduce the share of the wage bill in current
expenditure. |
|
1998-2001 |
|
|
| |
|
Increase expenditure in education and health, as recommended in the
public expenditure review.
|
|
1998-2001 |
|
|
e. Investment
expenditure |
|
Adopt and implement a three-year public investment program reflecting
government sectoral priorities. |
|
1998-2001 |
|
World Bank |
| |
|
Have Ministry of Planning prepare a quarterly report on investment
program execution and reconcile data with those from development partners. |
|
April 1999 |
|
|
| |
|
Increase execution rate to at least 70% in 1999, 80% in 2000, and 90%
in 2001. |
|
1999-2001 |
|
|
| |
|
Increase the share of domestically financed
investment.
|
|
1999-2001 |
|
|
| f. External debt |
|
Reduce external debt burden and maintain prudent debt
policy.
|
|
1998-2001 |
|
|
g. National
Retirement Fund |
|
Define a strategy for eliminating the fund's deficit. |
|
December 1998 |
|
|
| |
|
Adopt an action plan to eliminate the deficit. |
|
March 1999 |
|
|
| |
|
| 2. Monetary policy and financial
system |
|
| a. Financial sector |
|
Ensure treasury will continue recovering outstanding claims of
liquidated banks. |
|
1998-2001 |
|
|
| |
|
Strengthen savings and loan associations and
cooperatives.
|
|
1998-2001 |
|
|
b. Monetary and
credit policy |
|
Maintain a prudent credit policy; introduce and develop new
market-based instruments for conducting monetary policy. |
|
1998-2001 |
|
|
| |
|
Continue to implement a flexible interest rate policy. |
|
1998-2001 |
|
|
| |
|
Promote the development of new instruments to mobilize savings and
strengthen regional financial markets. |
|
1998-2001 |
|
|
| |
|
| 3. Structural reforms |
|
a. Institutional
reforms |
|
Adopt an action plan for implementing the devolution
policy. |
|
September 1999 |
|
DANIDA and European Union |
| |
|
Evaluate the financial position of municipalities. |
|
June 1999 |
|
|
| |
|
Establish a system for monitoring municipal budgets,
including |
|
|
|
|
| |
|
- preparation of a quarterly report on budget execution by
local authorities; and
|
|
June 1999 |
|
|
| |
|
- preparation of a quarterly report on consolidated municipal
budget execution by budget department.
|
|
June 1999 |
|
|
| |
|
Strengthen the judicial system by: |
|
1999-2001 |
|
World Bank |
| |
|
- providing supplementary training for
judges;
|
|
1999-2001 |
|
|
| |
|
- preparing a plan for recruiting judges;
and
|
|
1999 |
|
|
| |
|
- reforming clerks' offices and auxiliary
functions.
|
|
1999 |
|
|
| |
|
Adopt a law for harmonizing finance laws in the
WAEMU. |
|
1999 |
|
|
| |
|
Adopt new regional regulations on public accounting. |
|
1999 |
|
|
| |
|
Adopt the new regional accounting standards for public
sector. |
|
1999 |
|
|
| |
|
With respect to governance, |
|
|
|
|
| |
|
- implement action plan of the anti-corruption agency
(Cellule de Moralisation de la Vie Publique);
|
|
1999-2000 |
|
World Bank |
| |
|
- convert the auditing department of the Supreme Court into
an auditing court;
|
|
1999 |
|
|
| |
|
- have treasury and budget departments to prepare annual
budget execution reports;
|
|
2000 |
|
|
| |
|
- strengthen administrative capacity of treasury and budget
departments;
|
|
1999 |
|
France |
| |
|
- submit annually a law certifying budget execution (loi de
règlement);
|
|
2001 |
|
|
| |
|
- rehabilitate the general inspectorate of finance
(IGF);
|
|
1998-2000 |
|
|
| |
|
- effectively implement recommendations of IGF's audit
reports; and
|
|
1998-2000 |
|
|
| |
|
- organize a regional seminar on good practices in public
sector financial management.
|
|
March 1999 |
|
|
| b. Civil service reform |
|
Establish a new promotion and compensation system for civil service
by |
|
|
|
World Bank and UNDP |
| |
|
- adopting a revised wage scale, nonwage benefits, and a
performance assessment mechanism;
|
|
March 1999 |
|
|
| |
|
- adopting related legislation;
|
|
March 1999 |
|
|
| |
|
- experimenting with the new system in selected
ministries;
|
|
September 1999 |
|
|
| |
|
- implementing the new performance-based promotion and
compensation system; and
|
|
January 2000 |
|
|
| |
|
- granting performance-based salary
increases.
|
|
2001 |
|
|
| |
|
Create a single civil service database by |
|
|
|
World Bank and UNDP |
| |
|
- selecting a software package for the Ministry of Civil
Service;
|
|
December 1998 |
|
|
| |
|
- verifying the accuracy of April 1997 census
data;
|
|
March 1999 |
|
|
| |
|
- updating the database and prepare a semiannual report on
civil service employment;
|
|
June 1999 |
|
|
| |
|
- installing and testing the new computer system at the
Ministry of Civil Service; and
|
|
June 1999 |
|
|
| |
|
- merging payroll department and Ministry of Civil Service
databases.
|
|
August 1999 |
|
|
c. Public enterprise
reform |
|
Liberalize the petroleum sector by |
|
|
|
|
| |
|
- selecting a bidder to take over 55% of capital of the public
oil company (SONACOP);
|
|
December 1998 |
|
|
| |
|
- completing the sale of 55% of SONACOP's
capital;
|
|
March 1999 |
|
|
| |
|
- adopting a policy liberalizing petroleum product prices;
and
|
|
June 1999 |
|
|
| |
|
- implementing the new pricing
policy.
|
|
July 1999 |
|
|
| |
|
Adopt a strategy and an action plan for government's divestiture from
the textile sector (COTEB and SITEX). |
|
December 1998 |
|
|
| |
|
Privatize the management of the Hôtel Croix du Sud
by |
|
|
|
|
| |
|
- selecting a bidder for concession; and
|
|
December 1998 |
|
|
| |
|
|
|
March 1999 |
|
|
| |
|
Privatize management of the two enterprises (SCO and SSS) jointly
owned with Nigeria. |
|
December 1998 |
|
|
| |
|
Finance liquidation gap of SONAR (public insurance
enterprise).
|
|
1998-2000 |
|
|
d. Private sector
development |
|
Prepare a new regional investment code in cooperation with the other
WAEMU member countries. |
|
1999-2000 |
|
World Bank, UNDP, USAID |
| |
|
Make institutions financing micro enterprises and small and
medium-sized enterprises autonomous and financially viable. |
|
1999-2001 |
|
|
| |
|
Strengthen organizations in charge of facilitating communications
between the government and the private sector. |
|
1999-2001 |
|
UNDP, Germany |
| |
|
Promote vocational training. |
|
1999-2001 |
|
|
| |
|
Remove the administrative and regulatory obstacles to export
development.
|
|
1999-2001 |
|
|
| e. Agriculture |
|
Prepare a multiyear budget, including current and investment
expenditure. |
|
1999 |
|
World Bank, DANIDA, UNDPs |
| Cotton |
|
For the crop year 1998/99, sale of seed cotton by SONAPRA to private
ginning companies through an auction system, with the support of development
partners. |
|
December 1998-March 1999 |
|
World Bank, France, and Switzer- land |
| |
|
Strengthen producers' organizations. |
|
1998-2000 |
|
France |
| |
|
Establish a trade association consisting of producers, ginning
enterprises, and banks. |
|
1999 |
|
|
| |
|
Eliminate SONAPRA's monopsony on the purchase of seed
cotton. |
|
2000-2001 |
|
|
| Environment |
|
Promulgate legislation on the environment and adopt related
decrees. |
|
1998-1999 |
|
UNDP |
| |
|
Implement the sectoral strategy governing public investment in urban
areas. |
|
1998-1999 |
|
World Bank |
| Forestry |
|
Finalize the program for restructuring forestry
institutions. |
|
1999 |
|
World Bank |
| |
|
Privatize the commercial and industrial activities of ONAB (the
National Timber Office).
|
|
June 1999 |
|
|
f. Transportation and
port infrastructure |
|
Connect all public operators involved in port activities to the
computerized port management system (PORTWARE) and encourage its
utilization. |
|
January 1999 |
|
|
| |
|
Strengthen the port management's and impose performance objectives
on port operations. |
|
February 1999 |
|
|
| |
|
Prepare a financial recovery plan for the port of
Cotonou. |
|
December 1998 |
|
|
| |
|
Include annual allocation for maintenance in the port's
budget. |
|
1999-2001 |
|
|
| |
|
Restructure the National Council of Benin Shipping Agents
(CNCB). |
|
1999 |
|
|
| Road
transportation |
|
Diversify the sources of financing for the Road Fund. |
|
1998-2001 |
|
|
| |
|
Encourage the participation of small and medium-sized enterprises in
road works by improving contracting procedures. |
|
1998-2001 |
|
|
| |
|
Transform the department of equipment and public works into a
semipublic enterprise by |
|
1998-2000 |
|
World Bank |
| |
|
- adopting an action plan; and
|
|
March 1999 |
|
|
| |
|
- implementing the action plan.
|
|
September 1999 |
|
|
| |
|
Implement the strategy for rural roads and mobilize financing for the
road fund. |
|
1998-2000 |
|
World Bank, France, and UNDP |
| |
|
Implement an action plan in coordination with transport enterprises and
other users in order to reduce roadblocks. |
|
1999 |
|
France |
| |
|
Improve traffic safety. |
|
1999 |
|
World Bank |
| OCBN
(railways) |
|
Restructure OCBN, focusing on its competitive activities, settling
arrears, and dismantling the transport sharing-arrangement.
|
|
1999 |
|
|
| g. Mining and
energy |
| Mining |
|
Conduct a mining sector assessment. |
|
June 2000 |
|
|
| |
|
Formulate a development strategy for the mining
sector. |
|
December 2000 |
|
|
| |
|
Revise the mining code to bring it into line with international
standards. |
|
1999-2000 |
|
|
| |
|
Create a property register. |
|
1999 |
|
|
| |
|
Establish a geological information management
system. |
|
1999 |
|
|
| Energy |
|
Reform the water and power sectors, and disengage the public sector
from these activities by |
|
|
|
|
| |
|
- launching studies on the reform strategy and the modalities
of the government's disengagement from the management of the power and water company
(SBEE);
|
|
January 1999 |
|
World Bank and France |
| |
|
- adopting reform strategy;
|
|
July 1999 |
|
|
| |
|
- implementing the reform strategy for the water and power
sectors; and
|
|
1999-2001 |
|
|
| |
|
- adopting and implementing the strategy for government
withdrawal from SBEE management.
|
|
December 1999 |
|
|
h. Postal and telecom-
munications services |
|
Adopt a strategy for liberalizing the telecommunications sector and
restructuring the postal service. |
|
February 1999 |
|
France |
| |
|
Issue new licenses for cellular services, contingent upon adoption of the
liberalization strategy for the telecommunications sector. |
|
1999 |
|
|
| |
|
Adopt plan for separating postal and financial services from
telecommunications. |
|
June 1999 |
|
|
| |
|
Adopt an action plan for restructuring postal and financial
services. |
|
July 1999 |
|
|
| |
|
Adopt draft laws on telecommunications and postal and financial
services. |
|
July 1999 |
|
|
| |
|
Create separate entities for postal and financial services, and
telecommunications. |
|
October 1999 |
|
|
| |
|
Open the capital of the telecommunications entity to private
investors.
|
|
December 1999 |
|
|
i. Health and
family planning |
|
Finalize the three-year development plan. |
|
December 1998 |
|
|
| |
|
Complete feasibility studies on health districts by establishing 29
additional health districts. |
|
December 1999 1999-2001 |
|
|
| |
|
Disseminate management tools and manual of
procedures. |
|
June 1999 |
|
|
| |
|
Increase the annual budget allocations and credit consumption as a
share of total expenditure. |
|
1999-2001 |
|
|
| |
|
Strengthen institutional capacity of the department in charge of
women's issues and prepare an action plan for promoting women's role in economic
development. |
|
1999-2001 |
|
World Bank, UNDP, and UNICEF |
| |
|
Adopt, disseminate, and implement the family
code.
|
|
1999-2001 |
|
|
| j. Education |
|
Prepare an inventory of school infrastructure at primary and secondary
levels. |
|
1999 |
|
|
| |
|
Carry out studies on double-shift and multigrade
systems. |
|
March 1999 |
|
|
| |
|
Strengthen education of girls by |
|
|
|
|
| |
|
- preparing an inventory of innovative initiatives to promote
girls' participation; and
|
|
April 1999 |
|
|
| |
|
- preparing an action plan to increase girls' enrollment in
education.
|
|
June 1999 |
|
|
| |
|
Prepare and adopt development plan for teaching schools (ENIs),
including by |
|
March 1999 |
|
|
| |
|
- implementing the development plan for
ENIs;
|
|
1999-2000 |
|
|
| |
|
- pursuing training program for ENIs
instructors.
|
|
1998-2001 |
|
|
| |
|
Evaluate the system of competitive examinations. |
|
March 1999 |
|
|
| |
|
Strengthen domestic capacity for producing and evaluating
textbooks. |
|
1999-2001 |
|
|
| |
|
Reform higher education by |
|
1998-2001 |
|
|
| |
|
- organizing the national seminar on the audit of the
University of Benin (UNB);
|
|
December 1998 |
|
|
| |
|
- adopting a reform program;
|
|
December 1999 |
|
|
| |
|
- implementing the reform
program.
|
|
2000-2001 |
|
|
| |
|
Prepare and implement a program for redeploying and training
administrative staff, including by |
|
1999-2001 |
|
|
| |
|
- introducing a computerized human resource management
system.
|
|
June 1999 |
|
|
| |
|
Strengthen technical and vocational education, in line with demand
from the labor market, including by |
|
1999-2001 |
|
|
| |
|
- evaluating technical and vocational education
programs.
|
|
December 1999 |
|
|
k. Poverty alleviation
and promotion of
employment |
|
Promote local initiatives for community development
by |
|
|
|
World Bank, UNDP, |
| |
|
- establishing community development units
(UDCs);
|
|
1999-2001 |
|
UNICEF, DANIDA, |
| |
|
- establishing 100 pilot community development units;
and
|
|
1999 |
|
and Germany |
| |
|
- evaluating the pilot units.
|
|
December 1999 |
|
|
| |
|
Promote employment by |
|
|
|
World Bank and France |
| |
|
- providing assistance for the establishment of
microenterprises and the implementation of micro projects;
|
|
1999-2001 |
|
|
| |
|
- providing assistance for developing skills of unemployed
young people; and
|
|
1999-2001 |
|
|
| |
|
- pursuing labor-intensive public work
programs.
|
|
1999-2001 |
|
|
| |
|
Strengthen capacity for analyzing, formulating, and monitoring social
policies. |
|
1999-2001 |
|
|
| |
|
Implement the United Nations initiative on the allocation of 20 percent
of government expenditure and foreign assistance to social sectors ("20/20"
initiative). |
|
1999-2001 |
|
|
|
| Table 2. Benin:
Economic Indicators, 1995-2001 |
|
|
|
|
Est. |
Est. |
Program
|
|
|
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
|
|
|
(Annual changes in percent, unless otherwise indicated) |
|
National income |
|
|
|
|
|
|
|
|
GDP at current prices |
20.7 |
12.7 |
10.6 |
9.6 |
8.5 |
7.5 |
7.7 |
|
GDP at constant prices |
4.6 |
5.6 |
5.6 |
4.4 |
5.7 |
5.6 |
5.9 |
|
GDP deflator |
15.4 |
6.7 |
4.7 |
5.1 |
2.6 |
1.7 |
1.7 |
|
Consumer price index (average) |
14.9 |
4.7 |
3.8 |
5.6 |
3.0 |
3.0 |
2.5 |
|
Consumer price index (end of period) |
3.1 |
6.7 |
2.4 |
3.7 |
2.8 |
3.0 |
2.5 |
|
|
|
|
|
|
|
|
|
|
Central government finance |
|
|
|
|
|
|
|
|
Revenue |
40.2 |
15.3 |
5.8 |
14.9 |
8.8 |
9.6 |
10.5 |
|
Expenditure and net lending |
34.9 |
-0.7 |
6.4 |
-4.7 |
19.6 |
11.4 |
8.7 |
|
|
|
|
|
|
|
|
|
|
Money and credit |
|
|
|
|
|
|
|
| Net domestic assets 1 |
6.5 |
-0.2 |
2.9 |
-0.4 |
0.6 |
... |
... |
| Domestic credit 1 |
6.7 |
1.8 |
1.7 |
2.5 |
0.6 |
... |
... |
|
Net claims on central government 1 |
5.0 |
-6.6 |
-0.6 |
-3.9 |
-1.9 |
... |
... |
|
Credit to the nongovernment sector |
8.9 |
48.0 |
10.1 |
29.3 |
9.7 |
... |
... |
|
Broad money |
16.3 |
11.3 |
16.9 |
8.0 |
9.2 |
... |
... |
|
Velocity (GDP relative to average M2) |
4.3 |
4.2 |
4.1 |
4.0 |
4.0 |
... |
... |
|
|
|
|
|
|
|
|
|
|
External sector (in terms of CFA francs) |
|
|
|
|
|
|
|
|
Exports, f.o.b., excluding reexports |
21.1 |
15.3 |
6.7 |
4.2 |
4.4 |
11.6 |
8.9 |
|
Imports, f.o.b., excluding reexports |
40.6 |
1.0 |
10.5 |
3.9 |
6.5 |
7.7 |
6.9 |
|
Export volume , excluding reexports |
2.8 |
23.6 |
7.1 |
1.5 |
4.2 |
5.0 |
5.8 |
|
Import volume, excluding reexports |
46.3 |
-0.9 |
9.5 |
6.3 |
5.7 |
5.9 |
5.9 |
|
Terms of trade |
22.5 |
-8.5 |
-1.3 |
5.0 |
-0.5 |
4.5 |
2.1 |
|
Nominal effective exchange rate (- deprec.) |
10.4 |
2.5 |
-2.6 |
... |
... |
... |
... |
|
Real effective exchange rate (- deprec.) |
14.5 |
1 |
0.6 |
... |
... |
... |
... |
|
|
|
|
|
|
|
|
|
|
|
(In percent of GDP, unless otherwise indicated) |
|
|
|
|
|
|
|
|
|
|
Basic ratios |
|
|
|
|
|
|
|
|
Gross investment |
19.6 |
17.1 |
18.5 |
16.4 |
17.9 |
18.7 |
19.3 |
|
Government investment |
7.8 |
6.4 |
6.7 |
4.7 |
6.2 |
6.7 |
7.0 |
|
Private sector investment |
11.8 |
10.7 |
11.8 |
11.7 |
11.6 |
12.0 |
12.3 |
|
Gross domestic saving |
10.2 |
8.8 |
10.1 |
8.7 |
10.4 |
11.4 |
12.4 |
|
Government saving |
3.1 |
3.6 |
4.0 |
4.9 |
4.7 |
4.9 |
5.3 |
|
Private saving |
7.2 |
5.2 |
6.1 |
3.8 |
5.7 |
6.6 |
7.1 |
|
Gross national saving 2 |
13.2 |
12.6 |
13.3 |
11.5 |
13.5 |
14.2 |
14.8 |
|
|
|
|
|
|
|
|
|
|
Central government finance |
|
|
|
|
|
|
|
|
Revenue |
14.9 |
15.2 |
14.6 |
15.3 |
15.3 |
15.6 |
16.0 |
|
Expenditure and net lending |
22.1 |
19.5 |
18.8 |
16.3 |
18.0 |
18.6 |
18.8 |
|
Primary balance 3 |
-4.5 |
-1.9 |
-2.5 |
0.3 |
-1.4 |
-1.8 |
-1.7 |
|
Overall fiscal deficit (payment order basis) 4 |
-7.3 |
-4.3 |
-4.2 |
-1.0 |
-2.7 |
-3.0 |
-2.8 |
|
Overall fiscal deficit (cash basis) 4 |
-8.9 |
-6.0 |
-5.4 |
-5.7 |
-3.3 |
-3.2 |
-2.8 |
|
Debt service (after debt relief) 5 |
29.9 |
20.7 |
18.4 |
18.9 |
18.1 |
18.5 |
16.2 |
|
|
|
|
|
|
|
|
|
|
External sector |
|
|
|
|
|
|
|
|
Current account balance (- deficit) 2 |
-6.4 |
-4.5 |
-5.2 |
-4.9 |
-4.4 |
-4.5 |
-4.5 |
|
Overall balance of payments (- deficit) |
-2.9 |
1.1 |
0.1 |
1.1 |
1.4 |
0.9 |
1.2 |
|
Debt-service ratio (before debt relief) 6 |
16.4 |
15.3 |
13.3 |
12.1 |
11.7 |
12.2 |
10.9 |
|
Debt-service ratio (after debt relief) 6 |
8.2 |
12.4 |
13.3 |
11.8 |
11.7 |
12.2 |
10.9 |
|
Net present value of debt-to-exports ratio |
|
|
|
|
|
|
|
|
(after debt relief) 6 |
... |
193.0 |
176.2 |
150.8 |
141.9 |
128.9 |
117.9 |
|
Debt-to-GDP ratio (after debt relief) |
82.0 |
70.1 |
64.4 |
58.5 |
54.1 |
50.8 |
47.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominal GDP (in billions of CFA francs) |
1,002.9 |
1,130.5 |
1,249.8 |
1,370.1 |
1,486.4 |
1,597.5 |
1,721.2 |
|
CFA francs per U.S. dollar (period average) |
499.1 |
511.6 |
583.7 |
... |
... |
... |
... |
|
Population (midyear, in millions) |
5.5 |
5.6 |
5.8 |
6.0 |
6.1 |
6.3 |
6.5 |
|
|
|
Sources: Beninese authorities; and staff estimates and projections. |
|
|
|
|
|
|
|
|
|
|
1
In percent of broad money at the beginning of the period. |
|
2
Including current official grants but excluding project grants. |
|
3
Total revenue minus all expenditure excluding interest and net lending. |
|
4
Before all official grants. |
|
5
In percent of fiscal revenue. |
|
6
In percent of current-year exports of goods and services, and including IMF debt. |
