## _cr04183

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---

### Report purpose and participatory process
- Purpose of the Progress Report:
  - highlights Mali’s macroeconomic and policy outcomes, strategies and sector-specific poverty reduction activities during 2002-03;
  - reviews the overall context in which the strategy was being implemented;
  - provides recommendations based on an assessment of strengths and weaknesses noted during implementation of the strategy.
- Preparation and consultation:
  - Draws on work of 13 thematic working groups with broad-based representation addressing implementation, monitoring and evaluation of the PRSP.
  - Notes difficulties with organization, operation, and motivation of these groups; recommends clearer direction by the PRSP Technical Secretariat and Coordination Department.
  - Consulted development partners on first draft; revised report disseminated during donors round table in March 2004.
  - Donors consider the PRSP as providing the main basis for their support for Mali; coordination occurs through a Mali-Partners Joint Committee, a Technical Committee, and a Joint Secretariat.

### Broad assessment and adjustments needed
- Overall judgment:
  - Staffs conclude first-year implementation was broadly successful and overall achievements are encouraging.
  - No fundamental changes to the poverty reduction strategy are warranted, but adjustments are needed to increase prospects of attaining 2006 objectives—particularly for: growth; devolution of sector program activities; diversification of exports; monitoring and evaluation system.
- Key shortcomings and challenges identified by staffs:
  - strengthen links between policies and budgetary resource allocations and PRSP priorities;
  - target service delivery to poorer segments identified using household survey consumption data;
  - enhance absorptive capacity of public and private sectors, particularly in rural areas;
  - strengthen monitoring and evaluation frameworks and statistical information system;
  - further develop strategy and action plan for high and sustainable pro-poor growth.

### Macroeconomic policy and structural reforms
- Growth outcomes and projections:
  - Growth over 2002-03 averaged 4.7 percent under the old national accounts methodology, and 5.1 percent under the new one.
  - PRSP goal was 6.7 percent.
  - Taking into account agreed projections for 2004-06, average growth for 2002-06 would be about 5.5 percent, about one percentage point below the initial PRSP objective.
  - Côte d’Ivoire crisis had a negative impact on growth over 2002-03; re-opening of road link to Abidjan and improved transport to other regional ports expected to support export growth.
- Inflation, external balance, fiscal performance:
  - Consumer price inflation expected to remain at 2.5 percent or less in 2004-06 (PRSP objective under 3 percent).
  - External current account deficit (excluding official transfers) expected to be comfortably below PRSP limit of 8.9 percent.
  - Overall fiscal performance better than PRSP objectives; staffs note good revenue performance despite small reduction in revenues in 2002 and 2003 due to the crisis.
  - Staffs recommend further improvements in tax administration: staff training programs, combating tax evasion and fraud, improving large taxpayers’ compliance; report on these in next progress report.
- Financial sector and monetary policy:
  - Monetary policy (conducted regionally by the West African Central Bank) focused on low inflation and CFA franc stability to the euro.
  - Financial condition of Mali’s banking system improved slightly in 2003; microfinance institutions experienced robust growth.
  - Report should have noted planned national-level reforms: completing privatization of commercial banks; reinforcing bank surveillance; improving legal and regulatory framework; promoting microfinance development with enhanced supervision; strengthening financial condition of civil service pension fund and social security agency.
- Structural vulnerabilities and reform priorities:
  - Economic base relatively narrow and vulnerable; agriculture and gold sectors significantly affect growth rate and volatility.
  - Limited scope for either sector to raise trend growth strongly and sustainably.
  - Staffs urge update of sensitivity analysis in next progress report and strategies for adverse shocks.
  - Key requirement: formulate a growth strategy and action plan and vigorously implement structural reform agenda.
  - Cotton sector reform is critically important; next report should provide fuller discussion of reform implementation and anticipated actions.
  - Next report should discuss measures to expand and diversify trade (as addressed in the Diagnostic Trade Integration Study).
- External financing and public expenditure management:
  - External financing provided significant support (grants averaging over 4 percent of GDP in 2002-03).
  - Total external financial assistance (in CFA franc terms) fell short of PRSP projections, contributing to weak implementation rate of investment programs in priority areas.
  - Authorities agreed in a Bamako seminar in August 2003 to increase proportion of grants to keep external debt manageable.
  - Next report should include evaluation of external financing outlook and implications for long-term debt sustainability.
  - Staffs encourage identification and resolution of budget execution problems within line ministries and strengthening governance in public expenditure management to international standards.

### Progress in priority sectors

Institutional development, governance, and participation
- Achievements:
  - Institutional Development Program and Action Plan prepared for public sector capacity building.
  - Progress in devolution/decentralization: adoption of decrees transferring competencies in health, education and water supply to local governments; strengthening capacities of key personnel; operationalisation of technical and financial arrangements for local government structures.
  - Sectoral ministries increased regional presence to assist local authorities.
- Staffs’ recommendations and gaps:
  - Continue transfers of competencies and resources from central to local governments; revise ongoing health and education sector projects to ensure coherence with devolution law.
  - Expand analysis of judiciary rehabilitation and anti-corruption measures to:
    - highlight how recruitment and training affect judiciary quality;
    - review impact of recent reforms in financial audit departments;
    - assess whether controls are more systematic and effective.
  - Report could have indicated that the Accounts Section of the Supreme Court transmitted draft laws of execution based on audited accounts for 1997-2001.
  - Next progress report should discuss measures to address corruption, progress on World Bank corruption report recommendations requested by former President, and the role of the General Auditor’s Office.

Sustainable human development and access to basic social services
- Health sector:
  - Report notes significant improvements in health system coverage and medical referral process.
  - A medium-term expenditure framework (MTEF) adopted to plan, manage and monitor health sector programs with greater focus on poorest areas.
  - Paradoxes and persistent weaknesses:
    - Little correlation between increasing number of community health centers (CSCOM) and their usage by population.
    - High child mortality, infant mortality rate, and maternal mortality rates; vaccination rates and maternal deliveries assisted by health attendants virtually stagnant.
    - Large regional disparities in prenatal consultations and deliveries assisted by health personnel.
  - Resource and absorptive capacity issues:
    - Share of health in national recurrent budget: 10.5 percent in 2002 versus 10.7 percent targeted.
    - Low disbursement rates: about 27 percent for IDA-financed components of the sector in the first four-year implementation period.
  - Staffs recommend a second-year sector assessment focusing on quality of service delivery, availability of essential drugs, accessibility and affordability, social and cultural barriers, and regional differences; improve functioning of CSCOMs; address human resource needs and link health student pipeline to nurse shortages; fully integrate MTEF into Ministry of Health operations; next report should summarize sector assessment and implementation progress.
- Education and literacy:
  - Achievements:
    - Targets for gross enrollment rates at primary school level and for gross enrollment of girls achieved and exceeded: 64.3 percent and 53.7 percent, respectively.
    - Budget allocations to education increased.
    - HIPC resources contributed to classroom construction: 2467 built in 2001-02.
    - Teacher recruitment: 1,854 contractual teachers recruited and trained in 2002; 2,450 students-teachers recruited for 2002-03 school year.
  - Remaining challenges:
    - Quality of education remains poor despite accelerated investment program and improvements in student-teacher ratios.
    - Wide regional disparities in access persist; absence of regional breakdowns for other sector indicators hinders targeted measures for poorest areas and groups.
    - Insufficient classrooms and teaching personnel in teacher training colleges contribute to failure to meet objective of recruiting and training 2,500 teachers a year.

### Key recommendations for the next progress report
- Provide clearer direction and improved functioning of the 13 thematic working groups at national and regional levels.
- Report on corrective measures: specify actions to address identified weaknesses and provide information on implementation status of those measures.
- Deepen poverty analysis using the 2001 household survey data and incorporate poverty and social impact analysis (PSIA) of cotton sector reforms.
- Prioritize policies and programs and formulate budget scenarios under alternative growth patterns.
- Further develop governance and anti-corruption action plans and report progress.
- Strengthen links between PRSP priorities and budget allocations; improve budget execution in social ministries.
- Update sensitivity analysis for economic risks and present strategies to address adverse shocks.
- Formulate and implement a growth strategy and action plan; provide fuller discussion of cotton sector reforms and trade diversification measures.
- Evaluate external financing outlook and implications for long-term debt sustainability; increase share of grants in external financing as appropriate.
- Expand sector assessments (health and education) with regional breakdowns and integrate sector MTEFs into the national MTEF.

### Education, quality, and decentralization (staff recommendation)
- Recommendation: pay greater attention in the coming months to measures aimed at improving quality, decentralization of education management, and cross sector thematic issues.
- Implementation timing: measures should be implemented quickly so as to ensure an impact by the start of the next school year.
- Reporting: the next progress report should discuss the implementation status of these measures.

### Development of basic infrastructure and support to productive sectors
- Government actions: measures were taken to improve the economic environment, including adjustments in institutional arrangements and structural measures benefiting roads, airports, and rail infrastructures.
- Private sector role: private sector approaches in these and other infrastructure sub-sectors are yielding substantial gains, though in some cases progress is not as rapid as desired.
- Power sector:
  - Coverage of electric power distribution has been steadily increasing in 2001 (9.3 percent) and 2002 (12 percent), including coverage by the private electricity supplier.
  - Significant gains are yet to be seen in rural areas.
- Telecommunications sector:
  - Despite the introduction of competition, telephone density remains below international norms and phone penetration in rural areas remains weak.
  - Steady progress toward privatization of the state company in the next year will be important for improving telecommunication indicators.
- Staffs’ encouragement: continue the pursuit of, and where possible accelerate, private sector approaches to infrastructure development and maintenance.

### Rural development, productive sectors, and agricultural support
- Observations:
  - Poverty in Mali remains largely rural; a majority of the population derives its income from agriculture.
  - Staffs would have liked more comprehensive coverage of support services to productive sectors, particularly rural areas.
  - Objectives and results in key sub sectors—cotton, irrigation, and agriculture services—deserve more in-depth assessment.
- Irrigation target:
  - Further discussion of the mechanisms needed to develop 50,000 hectares between 2003 and 2007 would have been useful.
  - The next progress report should more fully discuss measures aimed at rural development, including implementation of the cotton sector reform program.

### Statistical information and monitoring for the rural sector
- Recommendation: improve the statistical information base for the rural sector.
- Specific statistical data requested:
  - Number of hectares developed in the 50,000 hectare program.
  - Estimated 2003/04 harvest for rice and cotton.
  - Statistics on dry cereal production, noting dry cereals are consumed by 80 percent of Mali’s population, to monitor food self-sufficiency.
  - Statistics on livestock production, forestry, and the production of fruits and vegetables, given their significant impact on the livelihood of the poor.

### Monitoring implementation of the Poverty Reduction Strategy (PRSP)
- Data and analysis:
  - The PRSP was elaborated using information on access to basic social services because the monetary component of the household survey (Enquête malienne pour l’évaluation de la pauvreté, EMEP) was not yet finalized.
  - Full EMEP survey data became available in November 2003 and augment the information base for analyzing poverty determinants.
- Priority recommendation: give high priority during the second year of implementation to undertaking poverty analysis using the full EMEP data to refine the PRSP and action plan.
- PRSP augmentation:
  - Subsequently, the PRSP should be augmented with policies to address two key objectives:
    - (i) targeting increases in access to basic social services to the poorest segments of the population, and
    - (ii) enhancing their income-earning prospects.
  - The next progress report should include the updated poverty strategy.
- Monitoring progress:
  - Some progress made in monitoring implementation, including establishment of quantitative indicators for priority sectors.
  - The Report highlights prospects of reaching the MDGs given current trends.
  - Institutional framework for preparing the Report has been defined; strong participation of line ministries is welcomed.

### Improving the M&E system and institutional functioning
- Key shortcomings: Report is frank about difficulties with the PRSP’s institutional framework for monitoring and evaluation (M&E).
- Two recommended actions to improve M&E:
  - streamline the number of institutions with M&E responsibilities and clarify their roles; and
  - assess internal dysfunctions in each institution and take corrective measures.
- Additional recommendations:
  - Revitalize the PRSP thematic groups and improve the functioning of the department in charge of poverty analysis.
  - Strengthen the national statistical system and performance-based management mechanisms within the government to enable gradual implementation of more integrated methods, tools and indicators.
- Adaptive management:
  - Authorities should draw on lessons from the first year to adjust priorities or revise targets for subsequent years.
  - The poverty reduction target for 2006 remains linked to very ambitious economic growth projections, although growth in the first year was much less than targeted.
  - Staffs recommend further work to identify policies and measures to help Mali achieve the desired level of GDP growth and to better understand mechanisms linking growth and poverty outcomes.
  - The next progress report should include updated PRSP targets.

### Conclusions and key policy recommendations
- Overall assessment:
  - The Report provides a balanced and frank assessment of Mali’s progress toward PRSP objectives and of shortcomings revealed or accentuated during the first year of implementation.
- Positive developments:
  - Improvement in macroeconomic performance in 2003: inflation falling, fiscal and current account positions strengthening, and growth picking up—although remaining below the objective of 6.7 percent.
  - Progress relative to the three principal axes of the PRSP.
  - Measures implemented to strengthen institutions and governance, support devolution and decentralization, improve public expenditure management, and rehabilitate the judicial system.
  - Improved access to health, education, and other social services, despite regional disparities and quality deficiencies.
  - Gains in infrastructure development with private sector participation, including extension of electric power distribution and institutional reforms to support rail, road, and airport development.
- Remaining challenges and priority actions:
  - Carry out poverty analysis with the new household data to fine tune the monitoring and evaluation system and help prioritize public policy actions.
  - Deepen analysis of sources of growth and their distributional implications to assist prioritization and mainstreaming of the poverty reduction strategy with sectoral programs.
  - Improve integration of the PRSP with sectoral ministry budgets and policies, and with the overall budgetary process.
  - Strengthen implementation of the decentralization program to ensure concrete gains in service delivery and improved governance.

### Executive assessment and staff recommendation
- Staffs’ view: the country’s efforts toward implementation of the strategy provide sufficient evidence for its continuing commitment to poverty reduction.
- Recommendation: the strategy continues to provide a sound basis for Bank and Fund concessional assistance.
- Final recommendation: the staffs recommend that the respective Executive Directors of the IMF and World Bank reach the same conclusion.

*Source: IMF staff summary of Mali’s first annual PRSP Progress Report / _cr04183 - 20. The staffs recommend that the government pay greater attention in the coming months*

### 1.      Mali’s first annual Poverty Reduction Strategy Paper (PRSP) Progress Report presents a

### Mali’s first annual Poverty Reduction Strategy Paper (PRSP) Progress Report — Summary and Assessment

### Report purpose and participatory process
- Purpose of the Progress Report:
  - highlights Mali’s macroeconomic and policy outcomes, strategies and sector-specific poverty reduction activities during 2002-03;
  - reviews the overall context in which the strategy was being implemented;
  - provides recommendations based on an assessment of strengths and weaknesses noted during implementation of the strategy.
- Preparation and consultation:
  - Draws on work of 13 thematic working groups with broad-based representation addressing implementation, monitoring and evaluation of the PRSP.
  - Notes difficulties with organization, operation, and motivation of these groups; recommends clearer direction by the PRSP Technical Secretariat and Coordination Department.
  - Consulted development partners on first draft; revised report disseminated during donors round table in March 2004.
  - Donors consider the PRSP as providing the main basis for their support for Mali; coordination occurs through a Mali-Partners Joint Committee, a Technical Committee, and a Joint Secretariat.

### Broad assessment and adjustments needed
- Staffs conclude first-year implementation was broadly successful and overall achievements are encouraging.
- No fundamental changes to the poverty reduction strategy are warranted, but adjustments are needed to increase prospects of attaining 2006 objectives—particularly for:
  - growth;
  - devolution of sector program activities;
  - diversification of exports;
  - monitoring and evaluation system.
- Key shortcomings and challenges identified by staffs:
  - strengthen links between policies and budgetary resource allocations and PRSP priorities;
  - target service delivery to poorer segments identified using household survey consumption data;
  - enhance absorptive capacity of public and private sectors, particularly in rural areas;
  - strengthen monitoring and evaluation frameworks and statistical information system;
  - further develop strategy and action plan for high and sustainable pro-poor growth.

### Macroeconomic policy and structural reforms
- Growth outcomes and projections:
  - Growth over 2002-03 averaged 4.7 percent under the old national accounts methodology, and 5.1 percent under the new one.
  - PRSP goal was 6.7 percent.
  - Taking into account agreed projections for 2004-06, average growth for 2002-06 would be about 5.5 percent, about one percentage point below the initial PRSP objective.
  - Côte d’Ivoire crisis had a negative impact on growth over 2002-03; re-opening of road link to Abidjan and improved transport to other regional ports expected to support export growth.
- Inflation, external balance, fiscal performance:
  - Consumer price inflation expected to remain at 2.5 percent or less in 2004-06 (PRSP objective under 3 percent).
  - External current account deficit (excluding official transfers) expected to be comfortably below PRSP limit of 8.9 percent.
  - Overall fiscal performance better than PRSP objectives; staffs note good revenue performance despite small reduction in revenues in 2002 and 2003 due to the crisis.
  - Staffs recommend further improvements in tax administration: staff training programs, combating tax evasion and fraud, improving large taxpayers’ compliance; report on these in next progress report.
- Financial sector and monetary policy:
  - Monetary policy (conducted regionally by the West African Central Bank) focused on low inflation and CFA franc stability to the euro.
  - Financial condition of Mali’s banking system improved slightly in 2003; microfinance institutions experienced robust growth.
  - Report should have noted planned national-level reforms: completing privatization of commercial banks; reinforcing bank surveillance; improving legal and regulatory framework; promoting microfinance development with enhanced supervision; strengthening financial condition of civil service pension fund and social security agency.
- Structural vulnerabilities and reform priorities:
  - Economic base relatively narrow and vulnerable; agriculture and gold sectors significantly affect growth rate and volatility.
  - Limited scope for either sector to raise trend growth strongly and sustainably.
  - Staffs urge update of sensitivity analysis in next progress report and strategies for adverse shocks.
  - Key requirement: formulate a growth strategy and action plan and vigorously implement structural reform agenda.
  - Cotton sector reform is critically important; next report should provide fuller discussion of reform implementation and anticipated actions.
  - Next report should discuss measures to expand and diversify trade (as addressed in the Diagnostic Trade Integration Study).
- External financing and public expenditure management:
  - External financing provided significant support (grants averaging over 4 percent of GDP in 2002-03).
  - Total external financial assistance (in CFA franc terms) fell short of PRSP projections, contributing to weak implementation rate of investment programs in priority areas.
  - Authorities agreed in a Bamako seminar in August 2003 to increase proportion of grants to keep external debt manageable.
  - Next report should include evaluation of external financing outlook and implications for long-term debt sustainability.
  - Staffs encourage identification and resolution of budget execution problems within line ministries and strengthening governance in public expenditure management to international standards.

### Progress in priority sectors

Institutional development, governance, and participation
- Achievements:
  - Institutional Development Program and Action Plan prepared for public sector capacity building.
  - Progress in devolution/decentralization: adoption of decrees transferring competencies in health, education and water supply to local governments; strengthening capacities of key personnel; operationalisation of technical and financial arrangements for local government structures.
  - Sectoral ministries increased regional presence to assist local authorities.
- Staffs’ recommendations and gaps:
  - Continue transfers of competencies and resources from central to local governments; revise ongoing health and education sector projects to ensure coherence with devolution law.
  - Expand analysis of judiciary rehabilitation and anti-corruption measures to:
    - highlight how recruitment and training affect judiciary quality;
    - review impact of recent reforms in financial audit departments;
    - assess whether controls are more systematic and effective.
  - Report could have indicated that the Accounts Section of the Supreme Court transmitted draft laws of execution based on audited accounts for 1997-2001.
  - Next progress report should discuss measures to address corruption, progress on World Bank corruption report recommendations requested by former President, and the role of the General Auditor’s Office.

Sustainable human development and access to basic social services
- Health sector:
  - Report notes significant improvements in health system coverage and medical referral process.
  - A medium-term expenditure framework (MTEF) adopted to plan, manage and monitor health sector programs with greater focus on poorest areas.
  - Paradoxes and persistent weaknesses:
    - Little correlation between increasing number of community health centers (CSCOM) and their usage by population.
    - High child mortality, infant mortality rate, and maternal mortality rates; vaccination rates and maternal deliveries assisted by health attendants virtually stagnant.
    - Large regional disparities in prenatal consultations and deliveries assisted by health personnel.
  - Resource and absorptive capacity issues:
    - Share of health in national recurrent budget: 10.5 percent in 2002 versus 10.7 percent targeted.
    - Low disbursement rates: about 27 percent for IDA-financed components of the sector in the first four-year implementation period.
  - Staffs recommend a second-year sector assessment focusing on quality of service delivery, availability of essential drugs, accessibility and affordability, social and cultural barriers, and regional differences; improve functioning of CSCOMs; address human resource needs and link health student pipeline to nurse shortages; fully integrate MTEF into Ministry of Health operations; next report should summarize sector assessment and implementation progress.
- Education and literacy:
  - Achievements:
    - Targets for gross enrollment rates at primary school level and for gross enrollment of girls achieved and exceeded: 64.3 percent and 53.7 percent, respectively.
    - Budget allocations to education increased.
    - HIPC resources contributed to classroom construction: 2467 built in 2001-02.
    - Teacher recruitment: 1,854 contractual teachers recruited and trained in 2002; 2,450 students-teachers recruited for 2002-03 school year.
  - Remaining challenges:
    - Quality of education remains poor despite accelerated investment program and improvements in student-teacher ratios.
    - Wide regional disparities in access persist; absence of regional breakdowns for other sector indicators hinders targeted measures for poorest areas and groups.
    - Insufficient classrooms and teaching personnel in teacher training colleges contribute to failure to meet objective of recruiting and training 2,500 teachers a year.

### Key recommendations for the next progress report
- Provide clearer direction and improved functioning of the 13 thematic working groups at national and regional levels.
- Report on corrective measures: specify actions to address identified weaknesses and provide information on implementation status of those measures.
- Deepen poverty analysis using the 2001 household survey data and incorporate poverty and social impact analysis (PSIA) of cotton sector reforms.
- Prioritize policies and programs and formulate budget scenarios under alternative growth patterns.
- Further develop governance and anti-corruption action plans and report progress.
- Strengthen links between PRSP priorities and budget allocations; improve budget execution in social ministries.
- Update sensitivity analysis for economic risks and present strategies to address adverse shocks.
- Formulate and implement a growth strategy and action plan; provide fuller discussion of cotton sector reforms and trade diversification measures.
- Evaluate external financing outlook and implications for long-term debt sustainability; increase share of grants in external financing as appropriate.
- Expand sector assessments (health and education) with regional breakdowns and integrate sector MTEFs into the national MTEF.

*Source: IMF staff summary of Mali’s first annual PRSP Progress Report*

### 20.      The staffs recommend that the government pay greater attention in the coming months

### 20.      The staffs recommend that the government pay greater attention in the coming months

### Education, quality, and decentralization
- Recommendation: pay greater attention in the coming months to measures aimed at improving quality, decentralization of education management, and cross sector thematic issues.
- Implementation timing: measures should be implemented quickly so as to ensure an impact by the start of the next school year.
- Reporting: the next progress report should discuss the implementation status of these measures.

### Development of basic infrastructure and support to productive sectors
- Government actions: measures were taken to improve the economic environment, including adjustments in institutional arrangements and structural measures benefiting roads, airports, and rail infrastructures.
- Private sector role: private sector approaches in these and other infrastructure sub-sectors are yielding substantial gains, though in some cases progress is not as rapid as desired.
- Power sector:
  - Coverage of electric power distribution has been steadily increasing in 2001 (9.3 percent) and 2002 (12 percent), including coverage by the private electricity supplier.
  - Significant gains are yet to be seen in rural areas.
- Telecommunications sector:
  - Despite the introduction of competition, telephone density remains below international norms and phone penetration in rural areas remains weak.
  - Steady progress toward privatization of the state company in the next year will be important for improving telecommunication indicators.
- Staffs’ encouragement: continue the pursuit of, and where possible accelerate, private sector approaches to infrastructure development and maintenance.

### Rural development, productive sectors, and agricultural support
- Observations:
  - Poverty in Mali remains largely rural; a majority of the population derives its income from agriculture.
  - Staffs would have liked more comprehensive coverage of support services to productive sectors, particularly rural areas.
  - Objectives and results in key sub sectors—cotton, irrigation, and agriculture services—deserve more in-depth assessment.
- Irrigation target:
  - Further discussion of the mechanisms needed to develop 50,000 hectares between 2003 and 2007 would have been useful.
  - The next progress report should more fully discuss measures aimed at rural development, including implementation of the cotton sector reform program.

### Statistical information and monitoring for the rural sector
- Recommendation: improve the statistical information base for the rural sector.
- Specific statistical data requested:
  - Number of hectares developed in the 50,000 hectare program.
  - Estimated 2003/04 harvest for rice and cotton.
  - Statistics on dry cereal production, noting dry cereals are consumed by 80 percent of Mali’s population, to monitor food self-sufficiency.
  - Statistics on livestock production, forestry, and the production of fruits and vegetables, given their significant impact on the livelihood of the poor.

### Monitoring implementation of the Poverty Reduction Strategy (PRSP)
- Data and analysis:
  - The PRSP was elaborated using information on access to basic social services because the monetary component of the household survey (Enquête malienne pour l’évaluation de la pauvreté, EMEP) was not yet finalized.
  - Full EMEP survey data became available in November 2003 and augment the information base for analyzing poverty determinants.
- Priority recommendation: give high priority during the second year of implementation to undertaking poverty analysis using the full EMEP data to refine the PRSP and action plan.
- PRSP augmentation:
  - Subsequently, the PRSP should be augmented with policies to address two key objectives:
    - (i) targeting increases in access to basic social services to the poorest segments of the population, and
    - (ii) enhancing their income-earning prospects.
  - The next progress report should include the updated poverty strategy.
- Monitoring progress:
  - Some progress made in monitoring implementation, including establishment of quantitative indicators for priority sectors.
  - The Report highlights prospects of reaching the MDGs given current trends.
  - Institutional framework for preparing the Report has been defined; strong participation of line ministries is welcomed.

### Improving the M&E system and institutional functioning
- Key shortcomings: Report is frank about difficulties with the PRSP’s institutional framework for monitoring and evaluation (M&E).
- Two recommended actions to improve M&E:
  - streamline the number of institutions with M&E responsibilities and clarify their roles; and
  - assess internal dysfunctions in each institution and take corrective measures.
- Additional recommendations:
  - Revitalize the PRSP thematic groups and improve the functioning of the department in charge of poverty analysis.
  - Strengthen the national statistical system and performance-based management mechanisms within the government to enable gradual implementation of more integrated methods, tools and indicators.
- Adaptive management:
  - Authorities should draw on lessons from the first year to adjust priorities or revise targets for subsequent years.
  - The poverty reduction target for 2006 remains linked to very ambitious economic growth projections, although growth in the first year was much less than targeted.
  - Staffs recommend further work to identify policies and measures to help Mali achieve the desired level of GDP growth and to better understand mechanisms linking growth and poverty outcomes.
  - The next progress report should include updated PRSP targets.

### Conclusions and key policy recommendations
- Overall assessment:
  - The Report provides a balanced and frank assessment of Mali’s progress toward PRSP objectives and of shortcomings revealed or accentuated during the first year of implementation.
- Positive developments:
  - Improvement in macroeconomic performance in 2003: inflation falling, fiscal and current account positions strengthening, and growth picking up—although remaining below the objective of 6.7 percent.
  - Progress relative to the three principal axes of the PRSP.
  - Measures implemented to strengthen institutions and governance, support devolution and decentralization, improve public expenditure management, and rehabilitate the judicial system.
  - Improved access to health, education, and other social services, despite regional disparities and quality deficiencies.
  - Gains in infrastructure development with private sector participation, including extension of electric power distribution and institutional reforms to support rail, road, and airport development.
- Remaining challenges and priority actions:
  - Carry out poverty analysis with the new household data to fine tune the monitoring and evaluation system and help prioritize public policy actions.
  - Deepen analysis of sources of growth and their distributional implications to assist prioritization and mainstreaming of the poverty reduction strategy with sectoral programs.
  - Improve integration of the PRSP with sectoral ministry budgets and policies, and with the overall budgetary process.
  - Strengthen implementation of the decentralization program to ensure concrete gains in service delivery and improved governance.

### Executive assessment and staff recommendation
- Staffs’ view: the country’s efforts toward implementation of the strategy provide sufficient evidence for its continuing commitment to poverty reduction.
- Recommendation: the strategy continues to provide a sound basis for Bank and Fund concessional assistance.
- Final recommendation: the staffs recommend that the respective Executive Directors of the IMF and World Bank reach the same conclusion.

*Source: _cr04183 - 20.      The staffs recommend that the government pay greater attention in the coming months*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04183.pdf_