## _cr05338 — FOREWORD (selected findings and policy directions) ## Source details **Canonical URL:** [_cr05338 — FOREWORD (selected findings and policy directions)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05338.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05338.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05338.pdf.json) --- ### Trends and determinants of poverty: key findings - Poverty incidence and thresholds - Poverty threshold: CFAF 82,672 in 2003 (CFAF 72,690 in 1998; CFAF 41,099 in 1994). - Incidence of poverty: 44.5 percent (1994); 45.3 percent (1998); 46.4 percent (2003). - Urban incidence: 10.4 percent (1994); 16.5 percent (1998); 19.9 percent (2003). - Rural incidence: 51.0 percent (1994); 51.0 percent (1998); 52.3 percent (2003). - Rural share of the poor: 96.2 percent (1994); 93.9 percent (1998); 92.2 percent (2003). - Poverty depth and severity (national) - Depth (P1): 13.9 percent (1994); 13.7 percent (1998); 15.5 percent (2003). - Severity (P2): 6.0 percent (1994); 5.9 percent (1998); 5.9 percent (2003). - Consumption and household expenditure (2003) - Average household annual expenditure: CFAF 866,381. - Monthly expenditure: CFAF 72,198. - Share devoted to food: 47.9 percent; nonfood: 52.1 percent. - Cereal products share of household food spending: 48.9 percent. - Vulnerability and dynamics - Increase in poverty between 1998 and 2003 driven primarily by transitory poverty and increased vulnerability of social groups. - Long-term poor showed relative decline while transitory/evolutional poor increased. ### Human capital, social sectors, and service coverage - Education - Gross enrollment ratio in primary school: 47.5 percent at start of 2002/2003 (42.7 percent in 2000/2001). - Net enrollment ratio (2003): 33.8 percent (33.7 percent in 1994). - Literacy rates: 18.9 percent (1994) rising to 32.25 percent (2003). - Health and mortality - Infant mortality: 105.3 per thousand (1999) → 83 per thousand (2003). - Child mortality: 127.1 per thousand (1999) → 111 per thousand (2003). - Combined infant-child mortality: 219.1 per thousand (1999) → 184 per thousand (2003). - Maternal mortality: 484 per 100,000 live births (1998). - Nutrition and food security - Minimum caloric standard shortfall: below 2,500 calories per day for population coverage. - Child stunting (under 5): 44.5 percent. - Women of childbearing age with chronic malnutrition: 13 percent. - Water, sanitation, and living conditions - Households using tubewells (all areas): 31 percent (1998) → 40.4 percent (2003). - Rural households using tubewells: 37.9 percent → 48.8 percent. - In 2003, 5.3 percent of rural households consumed water from rivers and other watercourses; another source reports 4.2 percent of rural households still consume water from rivers and streams. - Urban running water usage: 77.4 percent (2003). - Rural access within 30 minutes to health facility: 26.6 percent; urban: 74.3 percent; national: 35.3 percent. - HIV/AIDS - Estimated people living with HIV/AIDS: nearly 250,000 in 2002 (over half women). - WHO/UNAIDS sentinel estimates: 7.17 percent (1997); 6.5 percent (2001); 4.2 percent (2002); EDS 2003 seroprevalence: 1.9 percent. - EDS III (2003) reports HIV/AIDS prevalence in general population at 1.9 percent. ### Macroeconomic and growth performance: analysis and constraints - Growth and population - National economy growth averaged 5 percent per year (1991-2002). - Population growth: 2.4 percent per year. - Subperiod growth: 3.3 percent (1990-1994); 7.1 percent (1995-1999); 4.3 percent (2000-2002). - Sectoral composition and performance - Primary sector contribution to GDP: 39.5 percent (noted); tertiary: 43.4 percent (2000s references). - Manufacturing and secondary sector variable; secondary sector reported at 17.1 percent and elsewhere 18.0 percent. - Prices and fiscal stance - Inflation averaged 2.3 percent (community criterion: ≤3 percent). - Tax ratio: 10.6 percent of GDP on average (community criterion: 17 percent). - Wage bill: 44.3 percent of annual tax receipts on average (community objective: ≤35 percent). - Basic overall budget deficit (commitments basis, including grants): 3.9 percent of GDP (2000) → 4.8 percent of GDP (2002) (community criterion: 0). - External accounts and debt - Overall outstanding central government external debt: 50.4 percent of current GDP on average (within WAEMU Max 70 percent). - Current external account deficit excluding grants: 12.3 percent of GDP (2000) → 9.1 percent (2002) (community criterion: 5 percent). - ICOR and investment efficiency - ICOR fell from 8 (1994) to 5 (1995 and 1997), indicating capital productivity around 20 percent and signaling need to raise marginal efficiency of capital. ### PRSP implementation: outcomes, pillars, and institutional process - PRSP revision process - Revision duration: seven months (April–October 2003) with seven stages including 10 regional consultations (May 8–June 7, 2003) and a national conference (October 2–4, 2003). - About 3,000 participants across regional consultations; fewer than 10 percent were women. - National conference validated revised PRSP, logical framework, monitoring indicators, and regional PRS summaries. - Strategic pillars (PRSP) - Pillar 1: Accelerating broad-based growth — stable macroeconomic framework; competitiveness; support productive sectors and rural development. - Pillar 2: Promoting access to basic social services and social protection — education, health, water/sanitation, housing, social protection. - Pillar 3: Increasing employment and income-generating activities for the poor — reduce agricultural vulnerability; intensify/modernize agriculture; diversify rural incomes; support producers’ organizations; vocational training. - Pillar 4: Promoting good governance — democratic, administrative, economic, and local governance. - PRSP Priority Action Program (PAP) 2004–2006 - PAP mobilization: about CFAF 1,395 billion; 67 percent lined up. - PAP targets: 40 percent of capital expenditure to access to basic social services; 37 percent to investments sustaining economic growth; 18 percent to actions specifically targeted to the poor; 5 percent to governance reforms. - Total resources required for 2004-2006 (excluding debt service): CFAF 2,059.4 billion (21.9 percent of GDP); annual program costs: CFAF 686.5 billion. - Capital expenditure (2004–2006): CFAF 300.9 (2004); 350.8 (2005); 387.7 (2006); total CFAF 1,039.4 billion. - External financing share of capital expenditure: CFAF 561.8 billion (54.1 percent); financing with own resources: CFAF 477.6 billion (45.9 percent). - HIPC resources allocated (annual totals): 22.71 (2004); 34.1 (2005); 27.5 (2006) (CFAF billion). ### Financing, budgetary projections, and fiscal priorities (2004–2006) - GDP and growth projections - GDP at market price (CFAF billion): 2,478 (2003); 2,805 (2004); 3,123 (2005); 3,450 (2006). - GDP growth projections: 2004: 6.0 percent; 2005: 6.5 percent; 2006: 6.8 percent; average 2004-2006: 6.43 percent. - Revenue and expenditure (selected figures) - Revenue and grants (CFAF billion): 434.3 (2003); 471.7 (2004 Est.); 538.2 (2005 Proj.); 592.2 (2006 Proj.). - Tax receipts: CFAF 270.1 (2003); 321.0 (2004); 366.8 (2005); 415.0 (2006). - Tax/GDP ratio: 10.9 percent (2003); 11.4 percent (2004); 11.7 percent (2005); 12.0 percent (2006). - Current expenditure: CFAF 259.0 (2003); 307.3 (2004); 332.1 (2005); 352.5 (2006). - Capital expenditure: CFAF 224.6 (2003); 300.9 (2004); 350.8 (2005); 387.7 (2006). - Overall surplus/deficit (commitments basis, CFAF): -72.9 (2003); -133.5 (2004); -142.8 (2005); -146.1 (2006). - Budget deficit excluding grants (as percent of GDP): average projected 8.9 percent over 2004-2006 (8.3 percent in 2003). - Fiscal policy priorities - Intensify domestic resource mobilization and improve tax collection. - Control current expenditure growth and reallocate public capital expenditure toward productive and pro-poor sectors. - Increase budgetary support and harmonize procedures with donors to improve absorptive capacity. ### Policy priorities and government recommendations - Growth and competitiveness - Complete economic and structural reforms to create a business-friendly environment (performance contracts; one-stop shops reduced start-up time from 3 months to 15 days; formalities from 15 to 8). - Reduce factor costs (transport, energy, water) and improve infrastructure and logistics. - Raise marginal efficiency of capital via education, technical/vocational training, public investment effectiveness, and capital market development. - Social sectors and human capital - Make basic education compulsory and free; redefine basic education to include first cycle of secondary education; target Gross Enrollment Ratio of 70 percent by 2010. - Strengthen health services; increase prenatal care, facility births, immunization, and malaria control; consider solidarity and insurance mechanisms for the poor. - Intensify fight against HIV/AIDS; multisectoral approach; use HIPC savings to finance priority HIV/AIDS programs and ARV access. - Rural development and agriculture - Reduce vulnerability (soil fertility restoration, manure pits, irrigation, Operation SAAGA). - Intensify and modernize agriculture (improved seed, mechanization targets, extension services). - Increase and diversify rural incomes (microcredit expansion, small-scale irrigation, livestock development, agroprocessing). - Strengthen producer organizations and access to markets and finance. - Governance, decentralization, and inclusion - Promote good governance: strengthen democratic institutions, judicial reform, anti-corruption bodies (National Ethics Committee; High Authority for Combating Corruption). - Accelerate and resource decentralization; transfer responsibilities and resources to local governments; capacity building for local units. - Strengthen partnerships with donors: simplify and harmonize procedures; shift toward budgetary support while retaining project aid where appropriate. - Social protection and inclusion - Develop social protection mechanisms targeting children, families, vulnerable groups; promote solidarity funds and health microinsurance for the poorest. - Mainstream gender: adopt national gender strategy; accelerate women’s literacy and access to financial services. ### Risks identified and mitigation priorities - Capacity and absorptive risks - Insufficient national capacities (human, administrative) constrain program implementation and absorptive capacity; risk mitigations include capacity-building plans and performance contracts. - Sector-specific risks - Education: institutional compartmentalization; donor dependence for nonformal education (98 percent donor-funded); risk to primary expansion and quality. - Decentralization: risk of “local feudalism” where literacy and local governance capacity are low; mitigate via transfers linked to capacity building and subsidiarity rules. - Health: insufficient intersectoral collaboration undermining outcomes; need to coordinate education, sanitation, and health interventions. - Gender: inadequate conceptual understanding and operationalization of gender mainstreaming; need a consensual national gender policy. - Human rights: uneven stakeholder understanding; require awareness, training, communication. - External and environmental risks - Exogenous shocks: adverse weather, oil price and exchange rate shifts, regional sociopolitical crises (notably Côte d’Ivoire) affecting trade, remittances, and transport corridors. - Monitoring and evaluation risks - Prior monitoring shortcomings: low ministerial involvement, lack of legal/regulatory framework for sectoral/topic groups, compartmentalization, weak regional dimension, and unclear role of partners. - Mitigation: institutionalize new monitoring mechanism, adopt minimum list of indicators, annual CWIQ survey, strengthen ONAPAD and national statistical system. ### Monitoring, indicators, and institutional framework - New institutional mechanism for PRSP monitoring - Structure: Ministerial Steering and Monitoring Committee (chaired by Head of Government); sectoral and topic-based commissions (chaired by ministerial heads); decentralized regional units; Executive Secretariat and Technical Secretariat support. - Functions: approve implementation reports, recommend studies, propose performance contracts with civil society and private sector, align sectoral policies with PRSP. - Indicator framework and statistical program - Selection process led to 33 indicators (covering 8 broad areas) and recommendation of a study mission proposing 47 indicators (minimum list of 28 indicators and additional list of 19). - Recommended centralized annual CWIQ survey by INSD to produce the minimum list and ensure comparability and publication schedule. - Annex I sample targets (education, health, macro indicators): - Gross enrollment ratio (GER): 47.5% (2002 outcome); 52.2% (2003); 53% (2004 objective); 56% (2005 objective). - Adult literacy rate: 31.11% (2002 outcome); 32.25% (2003 projection). - Real GDP growth rate: 4.6% (2002 outcome); 7.2% (2003 projection); 6.0% (2004 objective); 6.7% (2005 objective); 6.8% (2006 objective). - Seroprevalence rate of HIV/AIDS: 4.2% (2002) and 1.9% (2003) — sentinel site. - Capacity-building priorities for monitoring - Strengthen INSD and ministerial statistical directorates; recruit and train statisticians; revitalize statistical functions; implement national statistical program and PRSP monitoring capacity-building plan. _Italic: Source: _cr05338 — FOREWORD; selected sections and annexes as provided in the supplied PDF excerpt._ ### FOREWORD ............................................................................................................... ### _cr05338 - FOREWORD ### I. Introduction - Sections and subthemes: - 1.1 ERRATIC ECONOMIC GROWTH AND THE PERSISTENCE OF POVERTY - 1.2 NEED FOR QUALITY, BROAD-BASED GROWTH - 1.3 THE PRSP, AN ITERATIVE PROCEDURE BUILT ON BROAD-BASED CONSULTATION - 1.3.1 Objectives and principles of the PRSP revision - 1.3.2 Organization of the PRSP revision process - 1.3.2.1 Regional consultations - 1.3.2.2 Meetings on the consistency of sectoral policies with the PRSP - 1.3.2.3 Stocktaking workshops - 1.3.2.4 Information sessions with technical and financial partners - 1.3.2.5 Civil society forum on rereading the Poverty Reduction Strategy Paper - 1.3.2.6 National conference on the PRSP - 1.3.2.7 Consultation with the institutions of the republic ### II. Trends and determinants of poverty - Coverage of definitions and approaches: - 2.1 DEFINITIONS OF AND APPROACHES TO POVERTY - 2.1.1 Monetary poverty - 2.1.2 Human poverty - Characteristics and dynamics: - 2.2 CHARACTERISTICS AND DYNAMICS OF POVERTY - 2.2.1 Household expenditure - 2.2.2 Poverty threshold and indices - 2.2.3 Poverty and household expenditure - 2.2.4 Perception of the status of poverty - 2.2.5 Analysis of poverty by area of residence - 2.2.6 Analysis of poverty by region - 2.2.7 Analysis of poverty by gender - 2.2.8 Analysis of poverty by socioeconomic group - Determinants: - 2.3 ANALYSIS OF THE DETERMINANTS OF POVERTY - 2.3.1 Growth, well-being, inequality, and poverty - 2.3.2 Poverty and vulnerability of households - 2.3.3 Poverty and socioeconomic characteristics - 2.3.3.1 Education and poverty - 2.3.3.2 Health and nutrition - 2.3.3.3 Safe drinking water - 2.3.3.4 Living conditions - 2.3.3.5 Employment, level of education, and poverty - 2.3.4 Other determinants - 2.3.4.1 Access of the poor to land - 2.3.4.2 Access of the poor to productive capital and financial services ### III. Performance since 2000 - Major topics: - 3.1 GENERAL OVERVIEW OF DEVELOPMENT FINANCING - 3.2 PRSP IMPLEMENTATION STATUS REPORT BY STRATEGIC PILLAR - 3.2.1 Pillar 1: Accelerating broad-based growth - 3.2.1.1 Stabilization of the macroeconomic framework - 3.2.1.2 Competitiveness of the national economy - 3.2.1.3 Transport development and support for the productive sectors - 3.2.2 Pillar 2: Promoting access to basic social services by the poor - 3.2.2.1 Developments in the education system - 3.2.2.2 The health sector - 3.2.2.3 Household access to safe drinking water - 3.2.3 Pillar 3: Increasing employment and income-generating activities for the poor - 3.2.3.1 Reducing the vulnerability of agricultural activities - 3.2.3.2 Intensifying and modernizing agriculture - 3.2.3.3 Increasing and diversifying rural incomes - 3.2.3.4 Ongoing support to farmers and the development of shared infrastructure - 3.2.3.5 Improving access - 3.2.3.6 National solidarity and the advancement of women - 3.2.3.7 Promoting employment and vocational training - 3.2.4 Pillar 4: Promoting good governance - 3.2.4.1 Democratic governance - 3.2.4.2 Improving economic governance - 3.2.4.3 Local governance ### IV. Development outlook and national priorities - Strategic outlook and sectoral priorities: - 4.1 BURKINA FASO’S DEVELOPMENT PROSPECTS AND VISION - 4.2 MEDIUM-TERM DEVELOPMENT OUTLOOK - 4.2.1 Education - 4.2.2 Health - 4.2.4 Safe drinking water - 4.2.5 Rural development - 4.2.5.1 Increase and diversify the output from agriculture, livestock, forests, wildlife, and fisheries - 4.2.5.2 Strengthen the links between producers and markets - 4.2.6 Physical environment and living environment - 4.2.7 Efforts to combat insecurity - 4.2.8 Small and medium enterprises, small and medium industries, and small mining operations - 4.2.9 Capacity-building and NICT promotion ### V. Poverty reduction strategy - Guiding principles: - 5.1 GUIDING PRINCIPLES - 5.1.1 Taking a resolutely long-term approach - 5.1.2 Promoting good governance - 5.1.3 Developing human capital - 5.1.4 Sustainable management of natural resources - 5.1.5 Gender mainstreaming - 5.1.6 Promoting employment and youth - 5.1.7 Reducing regional disparities - 5.1.8 Cultural adaptation and openness - 5.1.9 Promoting new information and communication technologies - 5.1.10 Factoring in subregional integration - 5.1.11 Promoting a new partnership with donors - Strategic pillars and subprograms: - 5.2 STRATEGIC PILLARS FOR POVERTY REDUCTION - 5.2.1 Pillar 1: Accelerating broad-based growth - 5.2.1.1 Requirements for broad-based growth - 5.2.1.2 Maintaining a stable macroeconomic environment - 5.2.1.3 Improving competitiveness and reducing factor costs - 5.2.1.4 Support for productive sectors and accelerating rural development - 5.2.2 Pillar 2: Promoting access to basic social services by the poor - 5.2.2.1 Human resources capacity building - 5.2.2.2 Promoting access to basic education services for the poor - 5.2.2.3 Promoting access for the poor to healthcare services and nutrition programs - 5.2.2.4 Fighting HIV/AIDS - 5.2.2.5 Promoting access to water for the poor - 5.2.2.6 Improving living conditions for the poor: housing - 5.2.2.7 Providing social protection for the poor - 5.2.3 Pillar 3: Equitably increasing employment and income-generating activities for the poor - 5.2.3.1 Agriculture as a source of jobs and income - 5.2.3.2 Reducing the vulnerability of agricultural activity - 5.2.3.3 More intensive and more modern farming - 5.2.3.4 Increasing and diversifying rural incomes - 5.2.3.5 Reducing the isolation of rural areas - 5.2.3.6 Support for producers’ associations - 5.2.3.7 Improving living and working conditions for rural women - 5.2.3.8 Promoting jobs and vocational training - 5.2.4 Pillar 4: Promoting good governance - 5.2.4.1 Democratic governance, including public security and the promotion of human rights - 5.2.4.2 Administrative governance - 5.2.4.3 Economic governance - 5.2.4.4 Local governance ### VI. Quantification and financing of the strategy - Macroeconomic and budgetary framework: - 6.1 MACROECONOMIC GUIDELINES FOR THE PERIOD 2004-2006 - 6.2 BUDGET GUIDELINES - 6.3 PRIORITY ACTION PROGRAM FOR 2004-2006 - 6.3.1 Principal characteristics of the Priority Action Program - 6.3.2 Financing scheme for the strategy ### VII. Risk analysis - Identified risk areas: - 7.1 RISKS FROM INADEQUATE CAPACITIES - 7.2 RISKS IN THE AREA OF EDUCATION - 7.3 RISK IN THE AREA OF DECENTRALIZATION - 7.4 RISK IN THE HEALTHCARE AREA - 7.5 RISKS IN THE GENDER AREA - 7.6 RISK IN THE AREA OF HUMAN RIGHTS ### VIII. Poverty monitoring and evaluation strategy - Monitoring framework and capacity building: - 8.1 MONITORING AND EVALUATION—THE LESSONS LEARNED - 8.1.1 A good track record - 8.1.2 Shortcomings - 8.2 INSTITUTIONALIZATION AND EFFECTIVE OPERATION OF THE NEW MECHANISM FOR MONITORING PRSP IMPLEMENTATION - 8.2.1 Some principles and responsibilities - 8.2.2 Composition of the new institutional mechanism - 8.2.3 Guiding principles for PRSP implementation - 8.2.3.1 Specific objectives of the guiding principles - 8.2.3.2 Guiding principles - 8.3 CONSOLIDATION OF MONITORING AND EVALUATION SYSTEMS - 8.3.1 Sectoral policies: frames of reference for monitoring performance - 8.3.2 Formulating and updating the poverty monitoring indicators - 8.3.2.1 Major elements in the process of formulating the indicators - 8.3.2.2 Updating the monitoring indicators - 8.3.3 Capacity building for PRSP monitoring and evaluation - 8.3.3.1 Building capacity in the statistical field - 8.3.3.2 Capacity building in the area of PRSP monitoring and evaluation - 8.4 SPECIFIC ACTIONS FOR THE PRSP REVISION - 8.4.1 Identification and conduct of specific surveys and studies - 8.4.2 Addressing the spatial dimension in monitoring poverty ### Supporting boxes, tables, figures, and maps (selected by identifier) - Boxes include: BOX 1 through BOX 14 (topics such as comparable well-being indicators, participatory process, civil society declaration, multidimensional poverty, vulnerability, determinants of poverty, MDG progress, HIV/AIDS and debt relief, policy letter for decentralized rural development, gender equality, marginal efficiency of capital, AIDS and poverty, political visions and strategies). - Tables include: TABLE 1 through TABLE 21 (examples: TABLE 1 POVERTY INDICES (%) BASED ON AREA OF RESIDENCE FROM 1994 TO 2003; TABLE 11 WAEMU CONVERGENCE CRITERIA—COMPLIANCE STATUS; TABLE 16 TRENDS IN SECTORAL GROWTH DURING THE PERIOD 2001-2006; TABLE 20 PROJECTED FINANCING ARRANGEMENTS FOR THE 2004-2006 ACTION PROGRAM). - Figures include: FIGURE 1 through FIGURE 5 (e.g., CHANGES IN POVERTY INDICES SINCE 1994; TRENDS IN THE NUMBER OF AIDS CASES AND RUNNING TOTAL FROM 1986 TO 2002). - Maps include: MAP 1 and MAP 2 (INCIDENCE OF POVERTY BY AGRO-CLIMATIC REGION IN 1994 AND 1998; INCIDENCE OF POVERTY BY ADMINISTRATIVE REGION IN 1998 AND 2003). *Content derived from the document table of contents of _cr05338 - FOREWORD.* ### ANNEX I: POVERTY MONITORING INDICATORS: HUMAN POVERTY................................................ 122 ### ANNEX I: POVERTY MONITORING INDICATORS: HUMAN POVERTY ### Overview and development context - Burkina Faso adopted a market economy since 1991 and implemented major economic and structural reforms with international support aimed at promoting private initiative and sustainable growth. - Average real GDP growth and population growth: - National economy growth averaged 5 percent a year (1991-2002). - Population growth registered 2.4 percent a year. - Growth variability by subperiod: - 1990-1994: growth averaged 3.3 percent a year. - 1995-1999: growth averaged 7.1 percent a year. - 2000-2002 (PRSP implementation period): growth slowed to an average of 4.3 percent a year. - Identified constraints on resilient growth: - Weakness of national capacities, in particular human capital. - Inadequacy of economic development infrastructures. - Governance problems. ### Poverty incidence and trends - Absolute poverty threshold and incidence: - Poverty threshold: CFAF 82,672 in 2003 (compared to CFAF 72,690 per person per year in 1998). - Proportion of the poor increased from 45.3 percent (1998) to 46.4 percent (2003), an increase of 1.1 percentage point. - Compared with 1994 (threshold CFAF 41,099), incidence increased overall by 2 percentage points (1994 incidence 44.5 percent). - Rural vs urban distribution: - Poverty remains predominantly rural: - Rural contribution to the poor: 92.2 percent in 2003 (96.2 percent in 1994). - Urban poverty increased substantially: - Urban incidence rose from 10.4 percent in 1994 to 19.9 percent in 2003 (practically doubled). - Poverty depth and severity: - Indicators of the seriousness of poverty (depth and severity) rose slightly, indicating the poor fell farther behind the poverty threshold. ### Methodological note on comparability (Box 1) - World Bank methodological review led to a comparable indicator of well-being using real per capita consumption at constant June 2003 prices, covering a subset of products common to the 1998 and 2003 surveys. - Coverage of the partial consumption indicator: - 2003: 84 percent of food consumption and 88 percent of total declared consumption. - 1998: 92 percent of food consumption and 93 percent of total declared consumption. - Using the comparable basis and an endogenous poverty threshold tied to the 2003 survey: - Comparable poverty index changes: numerical index declined from 54.6 percent in 1998 to 46.4 percent in 2003 (a reduction of about 8 percentage points). - Rural regions: numerical index dropped from 61.1 percent in 1998 to 52.4 percent in 2003. - Inequality (Gini index) remained unchanged at 0.444 overall; urban Gini 0.484; rural Gini 0.376. - Caveat: despite methodological adjustments, nearly half the population lacks sufficient monetary income for a minimally decent existence. ### Human capital, social sectors, and service coverage - Public spending on basic social services: - Some 16 to 19 percent of national resources and official development assistance are devoted to basic education and basic health (including reproductive health, clean drinking water, nutrition, hygiene, and sanitation). - Education indicators: - Gross enrollment ratio in primary school: - 47.5 percent at the start of the 2002/2003 school year (42.7 percent in 2000/2001). - Gross enrollment ratio of girls: 41 percent (versus 36.2 percent). - Net enrollment ratio in primary school observed in 2003: 33.8 percent (identical to 1994 level of 33.7 percent). - Literacy rates: - Increased from 18.9 percent in 1994 to 32.25 percent in 2003 (Ministry of Basic Education and Literacy Training). - Educational outcomes remain among the lowest in the subregion and mask large regional disparities. - Health and mortality: - Infant, child, and combined infant-child mortality (EDS III, 2003) showed declines from 1999 to 2003: - Infant mortality: from 105.3 per thousand (1999) to 83 per thousand (2003). - Child mortality: from 127.1 per thousand (1999) to 111 per thousand (2003). - Combined infant-child mortality: from 219.1 per thousand (1999) to 184 per thousand (2003). - Maternal mortality: 484 per 100,000 live births (1998 demographic and health survey). - HIV/AIDS: - Estimated people living with HIV/AIDS in 2002: nearly 250,000, over half women. - HIV prevalence in 15-49 age group (WHO/UNAIDS estimates): 7.17 percent in 1997; 6.5 percent in 2001; 4.2 percent in 2002. - EDS 2003 reports seroprevalence rate: 1.9 percent. - Nutrition and food security: - Coverage of nutritional requirements remains below the required standard of 2,500 calories per day. - Child and maternal malnutrition: - 44.5 percent of children 5 and under suffer from stunted growth. - 13 percent of women of childbearing age suffer from chronic malnutrition. - Food insecurity drivers: pervasive poverty, geographic dispersion of production, landlocked location, inadequate market flexibility and operation. - Water and sanitation access: - Use of tubewells as water source increased: - From 31 percent in 1998 to 40.4 percent in 2003 (all residential environments). - From 37.9 percent to 48.8 percent in rural areas. - Remaining deficits: - In 2003, 5.3 percent of rural households still consume water from rivers and other watercourses. - Urban areas: 77.4 percent of households use running water. - Gender and women's participation: - Women represent about 52 percent of the total population but are under-involved in national public life due to sociocultural impediments. - Literacy for population over age 15 in 2003: 32 percent know how to read and write in any language (majority are men). - Maternal health service coverage (1998 figures): - Childbirths attended by qualified health professionals: 32 percent. - Pregnant women receiving prenatal consultations: 58 percent. - Prevalence of contraceptive use: 10.2 percent in 1998 rising to 28 percent in 2003. - Statistics mask large disparities between urban and rural areas. ### Key findings on PRSP implementation and implications - Mixed results from three years of PRSP implementation (2000-2002), with limited attainment of major quantitative objectives due to: - Natural conditions (adverse weather). - Subregional sociopolitical crises. - Cumbersome administrative and procedural requirements hindering efficient use of financial resources. - Positive elements: - Broad support for the PRSP from public administration, private sector, civil society, and bilateral/multilateral partners. - Government commitment to achieve tangible results that benefit the poorest groups in successive PRSP stages. ### Policy priorities and recommendations (as articulated by the Government) - Complete economic and structural reform measures to create a business-friendly environment and promote private investment; implement the “performance contract” initiative with private sector stakeholders. - Intensify resource mobilization and improve resource use: - Strengthen dialogue with Technical and Financial Partners (TFPs) in line with the spirit of Rome on harmonization of procedures to broaden participation in budgetary support. - Continue improving tax collections internally. - Strengthen budgetary management and initiate a focused review of constraints and limits to economic growth to make it more intensive. - Increase focus and accelerate reforms in the social sectors: - Redefine the concept of basic education; make basic education mandatory and free. - Improve health services and strengthen the fight against HIV/AIDS. - Clarify and strengthen partnership with civil society organizations: - Introduce performance contracts with civil society organizations to align their activities with PRSP priorities and leverage their comparative advantages (literacy training, community development, health, etc.). - Resource intensification: - For 2004-2006, resources devoted to combating poverty must be intensified to achieve greater results. *Source: _cr05338 - ANNEX I: POVERTY MONITORING INDICATORS: HUMAN POVERTY* ### 1.2 NEED FOR QUALITY, BROAD-BASED GROWTH ### 1.2 NEED FOR QUALITY, BROAD-BASED GROWTH ### Development objectives and definition of "high quality growth" - Government aim since the Letter of Intent on Sustainable Human Development Policy (LIPDHD) in 1995: focus development strategy on promoting human security, increasing the effectiveness of public policies to maximize impact on major social indicators, increase the purchasing power of the poorest population groups, and offer a better framework for social betterment. - International commitments informing policy renewal: the Millennium Development Goals (MDGs) and the New Partnership for Africa’s Development (NEPAD). - "High quality growth" is defined as: - growth that is sustainable in the face of exogenous shocks and stronger because it is based on diversified sources and a broader economic base; - growth that is redistributive and concerned with environmental protection; - growth that entails the establishment of political, economic, and local good governance. - Policy implication: use relevant fiscal and sectoral policy instruments to help the Burkinabè population play a more active role in its own development and in reducing inequalities. - Equity is emphasized as a key objective because economic growth alone does not suffice to combat poverty and inequality; the context is one of prudent economic policy intended to have impact on the broadest possible population groups. ### Main constraints to balanced and sustainable growth (identified by recent government studies) - the weakness of human capital, which contributes to low labor productivity, the high unemployment level, and income inequalities; - the inadequacy of the economic development infrastructure, with its corollary the high costs of transactions and production factors, thereby hampering the emergence of a modern sector in the economy; - insufficient national capacities, which give rise to problems with governance, civic participation, and effectiveness in the conduct of development policies; - the low degree of economic openness to the outside world, thus limiting the opportunities for growth and job creation despite the efforts made as part of the stabilization and adjustment programs. ### Regional integration and official development assistance (implications for growth) - Burkina Faso seeks to leverage the West African Economic and Monetary Union (WAEMU) regional integration process to transform its landlocked status into an asset and position itself as a crossroads for subregional economies. - The Government expects regional integration to impose some economic and social costs given current scant competitiveness, but aims to work with Union partners to (i) limit these costs; and (ii) make the most of opportunities offered by a considerably broader regional market. - Burkina Faso is among the least developed countries (LLDCs) which mobilize substantial flows of official development assistance (ODA). - ODA contributes nearly 80 percent of the financing of the public investment program. - Absorptive capacities remain insufficient owing to administrative red tape and the lengthy procedures generally applied by donors when projects and programs start up. - Targeted studies indicate that such assistance has a perceptible influence on growth only within a framework characterized by "economic best practices." - Hence the importance of effective economic policies based on economic openness and macroeconomic stability, and of applying, in both spirit and letter, the reform of official development assistance. *Source: _cr05338 - 1.2 NEED FOR QUALITY, BROAD-BASED GROWTH* ### 12. The process of preparing and implementing the PRSP was deliberately participatory, based on national c ### 12. The process of preparing and implementing the PRSP was deliberately participatory, based on national c ### Objectives and principles of the PRSP revision - Four key objectives of the revision: - assessing the relevance of the PRSP objectives in light of the results attained and the new measurement of poverty incidence; - examining the suitability of broadening the range of priority sectors and readjusting the components of the strategy; - regionalizing the Poverty Reduction Strategy Paper; and - ensuring broader involvement of the private sector and civil society. - Guiding principles: - Equity: growth must be strong and high-quality growth that reduces inequalities and benefits the majority, especially the poor, involving active participation of all (the poor, men and women). - Consistency of actions: systematic promotion of actions that reinforce one another to create synergies that help reduce inequalities and poverty. - Empowerment of the poor: promote sustainable development by enhancing the capacity of all workforce members to assume responsibility for their own destiny. - Reduction of the inequalities between men and women: recognize differing impacts of poverty-producing processes and address gender inequality as a major cause of poverty. - Reduction of regional disparities: address regional disparities as a source of exacerbated poverty and limited regional participation in national development. - Participation: treat the PRSP process as social dialogue; all stakeholders must be involved to enhance decision validity. - Accounting for the concerns of youth: address idleness and unemployment of young people, which exacerbate dependence and poverty. ### Organization and timing of the PRSP revision process - Duration and stages: - The process lasted seven months, from April to October 2003, and occurred in seven stages. ### Regional consultations (1.3.2.1) - Purpose: - Take account of concerns of each of the thirteen (13) regions in the revised PRSP and provide each region with a regional strategic framework for reducing poverty. - Implementation and participation: - Ten regional consultations were organized from May 8 to June 7, 2003. - They brought together about three thousand (3,000) participants, of whom fewer than 10 percent were women; - average participation was two hundred (200) participants per consultation, except for: - Centre (grouped Centre-sud, Plateau, and Centre) with four hundred (400) participations; - Hauts Bassins (covered Cascades and Hauts Bassins) with three hundred (300) participants. - Each meeting was sponsored by a member of the Government and chaired by the high commissioner of the province hosting the administrative seat. - Outcomes: - Enhanced sense of ownership by stakeholders (notably deconcentrated administrations and community organizations) and regional strategic frameworks reflecting local realities. - Technical and financial partners monitored consultations ad hoc and acknowledged the approach created a sense of dynamism that should be maintained. ### Meetings on the consistency of sectoral policies with the PRSP (1.3.2.2) - Timing: - Held with all the heads of ministerial departments from July 1 to July 17, 2003. - Purposes and substantive outcomes: - Greater sense of ownership of the PRSP by ministerial departments; senior officials rediscovered the PRSP and compared it with sectoral policies. - Clarified the importance and role of sectoral policies as operational instruments of the PRSP; departments without sectoral policies recognized the need to develop them. - Substantive contributions identified issues not addressed in 2000 that should be incorporated: public security; jobs (in particular for youth and in the informal sector); social exclusion; the concept of “gender and development”; the environment and living standards; SMIs/SMEs; rural electrification; small-scale mining; and migration. - Need to add a matrix of performance indicators to the revised PRSP and to emphasize national capacity building. - Need for communication strategies for each policy and program to establish ongoing policy dialogue with stakeholders. ### Stocktaking workshops (1.3.2.3) - First workshop: - Held from August 4 to 17, 2003, in Bobo-Dioulasso. - Participants: all regional directors of economy and development; research and planning directors of ministries responsible for agriculture, health, basic education, territorial development and decentralization, and security; senior staff of the Technical Secretariat for the Coordination of Economic and Social Development Programs; Directorate-General of the Economy and Planning; Directorate-General of Territorial Development, Local Development, and Regional Development. - Outcomes: enhanced cohesiveness and relevance of options identified in the thirteen regional poverty reduction strategy papers; drafted summary memoranda to facilitate incorporation of regional priorities into the PRSP. - Second workshop: - Held in Ouagadougou on August 25 and 26, 2003. - Brought together about sixty participants from public administration, the University and research institutes, the private sector, and civil society organizations (SPONG, RECIF/ONG, RENLAC), some ten of whom were women. - Using a critical reading report prepared by three independent resource persons (including one woman), participants aimed to: - assess the relevance of strategic options suggested in the recast PRSP on the basis of studies and surveys conducted during revision; - finalize strategies and policies by supplementing and refining proposals from the critical reading; - assess, if possible, the relevance of the matrix of PRSP monitoring indicators. - Results of both workshops had a decisive impact on the formulation of the revised PRSP. ### Information sessions with technical and financial partners (1.3.2.4) - Purpose and outcomes: - Government organized sessions to (i) share the PRSP revision timetable and lessons learned in regional consultations; and (ii) solicit views on the institutional mechanism for monitoring PRSP implementation and the nature of monitoring indicators. - Technical and financial partners were given broad latitude to participate actively throughout the process. ### Civil society forum on rereading the PRSP (1.3.2.5) — forum held July 28 to 30, 2003 - Initiative and purpose: - Civil society organizations held a forum on their own initiative to enhance ownership of the PRSP and contribute constructively to revision and implementation. - Outcome: - At the end of the forum they unanimously adopted a declaration on the PRSP process (summarized below). Key points from the civil society forum declaration (Box 3) — Ouagadougou, July 28–30, 2003 - Context and general stance: - Poverty in Burkina Faso is mass poverty affecting the majority of the population; country ranks at the bottom by Human Development Index. - Civil society takes note of the PRSP initiative as a catalyzing force but denounces conditionality imposed by the World Bank and the IMF and asks that this conditionality be eliminated as it contradicts poverty reduction strategies. - Deplores preparation, implementation, and evaluation conditions that failed to allow broad concertation and low involvement of grassroots communities. - Education and skills: - Acknowledge need to accord priority to basic education but insist on developing skills and capacities (including science and technology expertise) so the poor can effectively emerge from poverty and Burkina Faso can compete internationally. - Role of civil society and government: - Resolve to intensify day-to-day fight against poverty and trust Government will strengthen its will to combat poverty, reflected in actions and mobilization of national resources. - Emphasize need to develop and adopt a national gender policy to ensure operational effectiveness of programs tackling discrimination. - Private sector and agricultural policy concerns: - Express doubts about strategy that makes the private sector the driving force for combating poverty; argue Government must play a fundamental role in development activities aimed at significant poverty reduction. - Voice serious concern about political choices in agriculture, notably promotion of agribusiness that may destroy best land held by small farmers and experimentation with genetically modified organisms (GMOs) in cotton production; call for caution given ecosystem precariousness and limited national technical resources. - Note dependence on seed marketed by multinational agribusiness firms and urge consideration of its consequences. - Governance, transparency, and debt: - Note legislative and institutional measures for good governance but argue many measures remain theoretical; point to unpunished economic crime and demand transparent management of Heavily Indebted Poor Countries (HIPC) Initiative funds targeted to the poor, including access to information on resources and expenditures. - Request that public debt management be of concern to all people via an independent control mechanism outside the National Assembly; demand debt cancellation given its obstructive effect on development. - Civil society capacity building and expectations: - Pledge to strengthen technical and organizational capacities to defend grassroots interests and build lobbying capacities to ensure PRSP outcomes have genuine impact on people. - While pleased by involvement in the PRSP revision, civil society insists on lasting involvement in preparation, implementation, and defense of development policies; conclude with the statement: "Looking ahead, if we don’t get more, we’re out!” - Declaration dated Done in Ouagadougou, July 30, 2003 — The Forum. ### National conference on the PRSP (1.3.2.6) - Timing and participation: - Official revision launch ceremony on April 18, 2003, followed by a national conference from October 2 to 4, 2003, involving approximately 600 participants, including Government members, central/deconcentrated/decentralized administration, private sector, civil society, producer organizations, the Children's Parliament, representatives of the thirteen administrative regions, and technical and financial partners. - Work organized in six committees: rural development and food security; economic infrastructure; social sectors; public finances and resource allocation; private sector competitiveness and promotion; and governance, institutional reforms and decentralization. - Outcomes and directives: - Conference validated the revised PRSP, its logical framework, monitoring indicators, and the document summarizing regional poverty reduction strategy papers. - Issued directives to: - eliminate the constraints on growth; - improve procedures for mobilizing and absorbing domestic and external resources; - accelerate development of social sectors (basic education, literacy training, health, safe drinking water); - speed the program for eliminating isolation between and within regions; - combat lack of security; - strengthen statistical and monitoring mechanisms of the PRSP; and - ensure greater consistency between sectoral policies and the PRSP, placing greater emphasis on the program approach. ### Consultation with institutions of the republic (1.3.2.7) - Mechanisms and outcomes: - The revised PRSP was brought before the Economic and Social Council; the Council devoted its first session of 2004 to the PRSP and its major findings were taken into account. - In implementation of Articles 101 and 112 of the Constitution, the Minister of Economy and Development submitted the new PRSP to the National Assembly; Parliament’s role is highlighted since it approves the central government budget, the instrument that makes the PRSP operational. *Source: _cr05338* ### 1.4 THE PRSP PROGRAMS AND STRATEGIC PILLARS ### 1.4 THE PRSP PROGRAMS AND STRATEGIC PILLARS ### Development priorities targeting poverty reduction - The Government sets forth the following development priorities: - reducing the social deficit; - promoting rural development and food security; - improving access by the public, particularly by the poor, to safe drinking water; - combating HIV/AIDS; - protecting the environment and improving living conditions; - developing SMIs/SMEs and small-scale mining; - strengthening public safety; and - enhancing national capacities, with particular emphasis on the promotion of new information and communications technologies. ### Growth objectives linked to poverty reduction - For incidence of poverty to be reduced significantly, economic growth must: - create the conditions for improving the living standards of the people, especially the poorest; - improve the impact and efficiency of public policies, with initial focus on the social sectors; - base actions on the rational management of natural resources; and - build upon the introduction of improved governance and better coordination of official development assistance. ### Strategic framework: programs organized around four strategic pillars - Achieving strategic objectives will revolve around programs organized across four strategic pillars with quantified priority actions identified in the Priority Action Program (PAP). - Pillar 1: Accelerating broad-based growth - Maintain a stable macroeconomic framework - Increase the competitiveness of the economy and reduce factor costs - Support the productive sectors and, in particular, speed up rural development - Pillar 2: Promoting access to basic social services and social protection by the poor - Promote access to education services by the poor - Promote access to health and nutrition services by the poor - Promote access to safe drinking water and sanitation by the poor - Improve the living conditions of the poor: housing - Guarantee social protection to the poor - Pillar 3: Increasing employment and income-generating activities for the poor in an equitable manner - Decrease the vulnerability of agricultural activity - Intensify and modernize agricultural activity - Support producers’ organizations and develop collective infrastructures - Increase and diversify the incomes of rural residents - Speed up access to isolated areas - Promote jobs for youths, and vocational training in particular - Improve the living and working conditions of rural women - Pillar 4: Promoting good governance - Promote political governance - Promote administrative governance - Promote economic governance - Promote local governance ### Definitions and approaches to poverty - Poverty is treated as a multidimensional concept with two essential dimensions: - Monetary dimension (measured by income or consumption). - Human dimension (distribution of resources, access to services, social exclusion, lack of participation). - Monetary poverty: key concepts explained - Poverty threshold (poverty line): a normative level of expenditure calculated on the basis of food and nonfood requirements. - Incidence of poverty: proportion of persons with expenditure below the poverty line. - Depth of poverty: average distance separating incomes of poor persons from the poverty line. - Severity (gravity) of poverty: measurement of the dispersion of incomes of poor persons relative to the average distance from the poverty line. - Two main measurement approaches: - Absolute or nutritional approach (caloric needs; divides population into poor and non-poor). - Relative approach (by quintile/fifth of the population; allows gradations: “poorer,” “less poor,” “non-poor”). - Human poverty: qualitative perspective - Emphasizes lack/deprivation of capacities, access to productive resources, social services (education, healthcare, safe drinking water, housing), social exclusion, and lack of participation. - Notes systemic causes related to Burkina Faso’s status as a less developed country (LDC), including effects of globalization and unequal trade (agricultural subsidies in rich countries). ### Research and surveys informing targeting and strategy - Major research efforts since 1994: - priority surveys on household living conditions conducted in 1994, 1998, and 2003; - participatory poverty assessment surveys conducted in 1998 and 2003; - socioeconomic studies related to public expenditure reviews and accessibility of essential social services (healthcare and education) conducted regularly since 2000. ### Key poverty statistics and trends (1994, 1998, 2003) - Household expenditure (2003 survey): - average level of expenditure per household: CFAF 866,381 (annual) - monthly expenditure: CFAF 72,198 - share devoted to food: 47.9 percent - share devoted to nonfood: 52.1 percent - cereal products share of household food spending: 48.9 percent - Poverty threshold and national indices (2003 survey results): - absolute poverty threshold: CFAF 82,672 per person per year - incidence of poverty (population below poverty line): 46.4 percent - change from 1994 (44.5 percent): increase of 1.9 point - change from 1998 (45.3 percent): increase of 1.1 point - depth of poverty: - 1994: 13.9 percent - 1998: 13.7 percent - 2003: 15.5 percent - severity of poverty: - 1994: 6.0 percent - 1998: 5.9 percent - 2003: 5.9 percent ### Composition of household expenditure by poverty status - Among the poor: - close to two-thirds of all spending is on food products (approximately 66.7 percent implied by “close to two-thirds” as contextually stated in text); - home-consumed production represents 51 percent of their food expenditures; - cereals account for 55 percent of poor households’ total spending on food, including 42 percent for millet and sorghum. - Among the non-poor: - food spending share: 43.3 percent - home-consumed production accounts for 17.7 percent of nonfood expenditure - rent is the largest nonfood expenditure item; non-poor allocate more to healthcare than to ceremonies (third largest item). ### Perceptions of poverty (participatory surveys 1998 and 2003) - Individual-level leading perceptions (2003) — frequency of mention (componential diagram percentages): - Food: 17 percent - Employment or income-generating activity: 14 percent - Healthcare: 14 percent - Housing: 11 percent - Education: 10 percent - Clothing: 10 percent - Transportation: 8 percent - Credit: 6 percent - Energy: 5 percent - Participation: 5 percent - Collective-level perceptions include absence of favorable natural factors, famine, epidemics, lack of public security, lack of socioeconomic infrastructure (schools, markets, clinics), isolation, and weak transportation. - Determinants of poverty differ by area: - Urban top ten (in order): unpredictable climatic conditions; weak purchasing power; old age; large family; laziness or lack of initiative; lack of good governance; physical handicap; theft; death of a spouse; chronic poverty. - Rural top ten (in order): laziness or lack of initiative; permanent failure; physical handicap; social decline; chronic poverty; weak purchasing power; social and cultural constraints; absence of NGOs or aid projects; large family; difficulty in planning. - Regional emphases: - South central: healthcare and unemployment - Eastern: lack of security - Central plateau: inaccessibility of social services - Sahel: illiteracy - Specific groups (street children, out-of-school children) emphasize lack of jobs and income-generating activities, absence of solidarity, large family size, poor origins, and intergenerational social reproduction of poverty. ### Spatial and temporal dynamics of poverty by area of residence - Poverty increased in urban areas (incidence, depth, contribution to national incidence): indices in urban areas practically doubled between 1994 and 2003. - Table of poverty indices (%) by area of residence (1994, 1998, 2003) and changes: - Incidence - Urban: 1994: 10.4 | 1998: 16.5 | 2003: 19.9 | Change 1994-1998: + 6.1 | Change 1998-2003: +3.4 - Rural: 1994: 51.0 | 1998: 51.0 | 2003: 52.3 | Change 1994-1998: 0 | Change 1998-2003: +1.3 - National: 1994: 44.5 | 1998: 45.3 | 2003: 46.4 | Change 1994-1998: + 0.8 | Change 1998-2003: +1.1 - Depth - Urban: 1994: 2.5 | 1998: 4.0 | 2003: 5.5 | Change 1994-1998: +1.5 | Change 1998-2003: +1.5 - Rural: 1994: 16.1 | 1998: 15.7 | 2003: 17.9 | Change 1994-1998: -0.4 | Change 1998-2003: +2.2 - National: 1994: 13.9 | 1998: 13.7 | 2003: 15.5 | Change 1994-1998: -0.2 | Change 1998-2003: +1.8 - Severity - Urban: 1994: 0.9 | 1998: 1.5 | 2003: 2.2 | Change 1994-1998: +0.6 | Change 1998-2003: +0.7 - Rural: 1994: 7.0 | 1998: 6.8 | 2003: 6.8 | Change 1994-1998: -0.2 | Change 1998-2003: 0 - National: 1994: 6.0 | 1998: 5.9 | 2003: 5.9 | Change 1994-1998: -0.1 | Change 1998-2003: 0 - Contribution (C0) - Urban: 1994: 3.8 | 1998: 6.1 | 2003: 7.8 | Change 1994-1998: +2.3 | Change 1998-2003: +1.7 - Rural: 1994: 96.2 | 1998: 93.9 | 2003: 92.2 | Change 1994-1998: -2.3 | Change 1998-2003: -1.7 - National: 1994: 100 | 1998: 100 | 2003: 100 - Interpretation provided in the source: - The scope of poverty underwent a slight increase after relative stabilization between 1994 and 1998. - The depth of poverty fell from 13.9 percent in 1994 to 13.7 percent in 1998, then rose to 15.5 percent in 2003. - Severity remained stable at around 5.9–6.0 percent over the period. *Source: _cr05338 - 1.4 THE PRSP PROGRAMS AND STRATEGIC PILLARS (extracted content).* ### 3.4 percentage points between 1998 and ### _cr05338 - 3.4 percentage points between 1998 and ### Urban and rural poverty: incidence, depth, severity, contribution - Urban incidence rose by 3.4 percentage points between 1998 and 2003, from 16.5 percent to 19.9 percent; it stood at 10.4 percent in 1994. - Urban depth of poverty: 2.5 percent in 1994, 4 percent in 1998, and 5.5 percent in 2003. - Urban severity of poverty: 0.9 percent in 1994, 1.5 percent in 1998, and 2.2 percent in 2003. - Urban contribution to national poverty incidence: 3.8 percent in 1994, 6.1 percent in 1998, and 7.8 percent in 2003. - Despite worsening urban poverty, poverty remained mostly rural: rural incidence was 52.3 percent in 2003 versus 51 percent in 1994 and 1998. - Rural depth of poverty rose from 15.7 percent in 1998 to 17.9 percent in 2003; it had declined by 0.4 percentage point in 1998 compared with 1994. - Rural areas accounted for 92.2 percent of the overall national incidence of poverty in 2003. _Source: INSD, Poverty analysis reports, 1994, 1999, and 2003._ ### Regional analysis: classification, indices, changes 1998–2003 - Regions classified into three groups by incidence relative to national level: - Group 1 (most affected): northern, south central, central plateau, Boucle du Mouhoun, east central, southwestern. - Group 2 (near national average): west central, eastern, Cascades. - Group 3 (relatively less affected): Hauts Bassins, Sahel, north central, central. - Table 2 (Poverty indices by administrative region in 2003) key values (incidence P0, contribution C0, depth P1, contribution C1, severity P2): - Hauts Bassins: 34.8 8.1 10.6 7.3 4.5 - Boucle du Mouhoun: 60.4 15.9 21.3 16.6 9.6 - Sahel: 37.2 4.6 12.6 4.7 5.8 - East: 40.9 7.5 12.3 6.7 5.3 - Southwest: 56.6 6.0 17.5 5.5 7.3 - North central: 34.0 6.0 8.2 4.3 2.8 - West central: 41.3 7.7 14.1 7.8 6.8 - Central plateau: 58.6 7.6 20.3 7.8 9.5 - North: 68.6 12.7 24.7 13.6 11.8 - East central: 55.1 9.8 19.7 10.4 9.1 - Center: 22.3 4.9 7.1 4.6 2.9 - Cascades: 39.1 3.1 14.6 3.4 7.4 - South central: 66.1 6.1 26.0 7.2 13.5 - Burkina Faso (national): 46.4 100 15.6 100 7.1 - Regions contributing most to national poverty (C0): Boucle du Mouhoun 15.9 percent, North 12.7 percent, East central 9.8 percent. Followed by Hauts Bassins 8.1 percent, West central 7.7 percent, Central plateau 7.6 percent, East 7.5 percent. - Regions contributing least to national poverty: Cascades 3.1 percent, Sahel 4.6 percent, Center 4.9 percent. - Changes in incidence 1998 to 2003 (Table 3): select values - North central: 1998 58.1, 2003 34, Change -24.1 - East: 1998 46.6, 2003 40.9, Change -5.7 - Sahel: 1998 42.2, 2003 37.2, Change -5 - West central: 1998 44.9, 2003 41.3, Change -3.6 - Hauts Bassins: 1998 33.1, 2003 34.8, Change 1.7 - East central: 1998 51.1, 2003 55.1, Change 4 - Cascades: 1998 34.8, 2003 39.1, Change 4.3 - Center: 1998 16.5, 2003 22.3, Change 5.8 - South central: 1998 58.4, 2003 66.1, Change 7.7 - North: 1998 60.9, 2003 68.6, Change 7.7 - Central plateau: 1998 49.9, 2003 58.6, Change 8.7 - Boucle du Mouhoun: 1998 49.3, 2003 60.4, Change 11.1 - Southwest: 1998 44.9, 2003 56.6, Change 11.7 - Burkina Faso (national): 1998 45.3, 2003 46.4, Change 1.1 - Regional change groupings 1998–2003: - Declined: north central (sharpest), east, Sahel, west central. - Rose by fewer than 5 percentage points: Hauts Bassins, east central, Cascades. - Rose by more than 5 percentage points: center, south central, north, central plateau, Boucle du Mouhoun, southwest. _Source: Jean-Pierre LACHAUD, "Pauvreté et inégalité au Burkina Faso: Profil et dynamique," 2003; INSD, Results of EBCVM, 2003._ ### Gender analysis: poverty indices and socioeconomic status - Poverty indices by gender in 2003: - Female: Incid. P0 47.1, Contrib. C0 52, Depth P1 15.9, Contrib. C1 52.3, Sev. P2 7.3 - Male: Incid. P0 45.7, Contrib. C0 48, Depth P1 15.3, Contrib. C1 47.7, Sev. P2 6.9 - Gender of household head: - Female-headed households: Incid. P0 36.5, Contrib. C0 4.1, Depth P1 12.7, Contrib. C1 4.3, Sev. P2 5.7 - Male-headed households: Incid. P0 46.9, Contrib. C0 95.9, Depth P1 15.8, Contrib. C1 95.7, Sev. P2 7.2 - National: Incid. P0 46.4, Contrib. C0 100, Depth P1 15.6, Contrib. C1 100, Sev. P2 7.1 - Key findings: - Incidence disparity between women and men is 1.4 percentage point in favor of men (women worse off). - Women contribute 52 percent to national incidence of poverty versus 48 percent for men. - Severity of poverty slightly higher for women (7.3 percent) than men (6.9 percent). - Households headed by men are poorer: male-headed incidence 46.9 percent versus female-headed 36.5 percent (attributed partly to larger size of male-headed households). - Education, labor, and public representation: - Women make up roughly 21 percent of the work force in general government and 5 percent in private companies of the modern sector. - Civil service 2000: 11,206 women out of 44,316 civil servants = 25.3 percent. - 2003 public leadership figures: - 4 women ministers out of 30 = 13.3 percent - 13 women deputies out of 111 = 11.7 percent - 50 women magistrates out of 200 = 25.0 percent - 4 women secretaries-general of provinces out of 45 = 8.9 percent - 5 women high commissioners out of 45 = 11.1 percent - 5 women ambassadors out of 25 = 20.0 percent - 3 women mayors out of 57 = 5.3 percent - Women's health and literacy: - Direct causes such as hemorrhages and infections account for roughly 72 percent of all cases of maternal death. - 55 percent of pregnant women are anemic. - Nationwide, 38.4 percent of pregnant women receive a prenatal consultation. - Prenatal mortality rate was 126 per thousand in 1995. - Female literacy rate: 12.9 percent; male literacy rate: 24.8 percent. - Example literacy disparity (1994): top quintile women 33.5 percent vs men 53.8 percent; lowest quintile women 3 percent vs men 10.8 percent. - Policy implication highlighted: urgent need to speed up boosting the literacy rate for women and to create financial institutions that attract savings and extend medium- and long-term loans to women. _Source: INSD, Results of EBCVM, 2003._ ### Poverty by socioeconomic group (status of household head) - Incidence of poverty by status of household head (1998 and 2003): - Public sector wage-earners: 1998 5.9, 2003 4.4 - Formal private sector wage-earners: 1998 1.1, 2003 11.3 - Informal private sector wage-earners: 1998 16.2, 2003 14.8 - Self-employed nonfarm workers: 1998 12.7, 2003 21.5 - Cash crop farming: 1998 42.4, 2003 45.5 - Food crop farming: 1998 53.4, 2003 55.5 - Family helpers and apprentices: 1998 29.3, 2003 4.5 - Unemployed: 1998 30.0, 2003 28.3 - Economically inactive: 1998 41.3, 2003 34.5 - Key observations: - Food crop farmers: incidence rose from 53.4 percent in 1998 to 55.5 percent in 2003 (increase 2.1 points). - Cash crop farmers: incidence rose from 42.4 percent in 1998 to 45.5 percent in 2003. - Formal private sector wage-earners: incidence rose from 1.1 percent in 1998 to 11.3 percent in 2003. - Self-employed nonfarm workers: incidence rose from 12.7 percent in 1998 to 21.5 percent in 2003. - Incidence declined for public sector wage-earners, informal private sector wage-earners, family helpers and apprentices, the unemployed, and the economically inactive. - Factors underlying precarious situation of food crop farmers: - lack of information on prices and new outlets; - limited marketing opportunities owing to inadequate transport infrastructure and widespread home-consumed production; - limited access to existing inputs to boost productivity; - scarcity and poverty of land suitable for cultivation; - limited access to educational, healthcare, training, and extension services. - Cash crop farmers suffer from weak supply of human capital; price liberalization, institutional restructuring, and investment policies have not yet revitalized rural areas to their benefit. _Source: Jean-Pierre LACHAUD, "Pauvreté et inégalité au Burkina Faso: Profil et dynamique," September 2003._ ### Growth, inequality, and poverty dynamics - Economic growth: - 1991–2002 average annual real growth: 5 percent. - PRSP period (2000–2002) average growth rate: 4.3 percent. - Expected growth rate to substantially improve living standards was around 7 or 8 percent (implying per capita GDP growth ~4 or 5 percent). - Inequality trends (Gini coefficient for per capita spending): - 1994: 0.560 - 1998: 0.530 - 2003: 0.506 - Reduction in disparities pertains more to rural areas than urban areas. - Urban areas showed a trend toward greater disparities (+2.8 percent) between 1994 and 2003. - Rural areas showed a decline in disparities (-3.3 percent) between 1994 and 2003. - Spending concentration: Gini coefficient value 0.46 indicates average concentration; 50 percent of the population spends less than a quarter of total spending, while less than 25 percent spends more than 50 percent. - Regional disparity changes 1998–2003: west central, south central, western, Boucle du Mouhoun, southwestern, and east central showed reductions in disparities; remaining regions showed increases. Changes cannot be directly attributed to dominant economic activity. ### Poverty and vulnerability - Trend 1998–2003: increase in poverty primarily attributable to transitory poverty. - Increase in number of transitory and evolutional poor between 1998 and 2003 exceeded increase in number of long-term poor (long-term poor in relative decline). - Conclusion: increased vulnerability of poor—and possibly non-poor—social groups, necessitating inclusion of vulnerability considerations in strategies. _Source for vulnerability and dynamic analysis: results displayed in Figure 3 and accompanying text._ *Source: INSD, Poverty analysis reports; Jean-Pierre LACHAUD, "Pauvreté et inégalité au Burkina Faso: Profil et dynamique," Results of EBCVM, 1994, 1998, 1999, 2003.* ### BOX 5: The concept of vulnerability according to the ### BOX 5: The concept of vulnerability according to the World Bank ### Concept and lived experience of vulnerability - “to be poor does not only mean having a low level of consumption, education, and healthcare.” - “As the evidence clearly shows, it also means having fear of tomorrow and worrying about a crisis that might appear at any moment, without knowing whether one has the capacity to withstand it. This sword of Damocles is the daily lot of the poor, and it is quite possible that the changes taking place today in trade flows, technology, and climate will only heighten the dangers.” - “The poor are very often among the most vulnerable elements of society, because they are most exposed to all sorts of risks.” - “Their limited income keeps them from building up savings or accumulating assets, which leaves them unprotected in the event of a crisis.” - “Economic growth helps to mitigate the potential danger, since it becomes easier to manage risks when income increases. But, whatever the circumstances, the poor are less vulnerable when they have mechanisms available to limit or lessen the risks, or to confront them.” ### Urbanization and the urgency of addressing urban poverty - “the increase in the incidence of poverty in urban areas highlights the trend toward the urbanization of poverty (see Table 1).” - “Inasmuch as one-third of the Burkinabè population will live in urban areas by 2025, there is an urgent need to address this situation and the growth in urban poverty.” - The scope and general character of poverty and impoverishment “require that steps be taken to set in place a dynamic and forward-looking mechanism of social protection against social risks and vulnerability, with the active participation of all segments of the Burkinabè population.” ### Regional dynamics: example from the north central region - North central region incidence of poverty was 48.9 percent in 1994 (versus a national average of 44.5 percent). - The region experienced an increase to 58.1 percent (versus a national average of 45.3 percent). - In 2003 the region witnessed a decline in the incidence of poverty to 34 percent (versus a national average of 46.4 percent). ### Policy implications and priorities (as expressed in the box) - Establish “a dynamic and forward-looking mechanism of social protection against social risks and vulnerability.” - Ensure such mechanisms include “the active participation of all segments of the Burkinabè population.” - Recognize that economic growth can reduce vulnerability but that protective mechanisms are necessary to make the poor “less vulnerable when they have mechanisms available to limit or lessen the risks, or to confront them.” *BOX 5: The concept of vulnerability according to the World Bank.* ### 4.2 percent. It is higher in urban areas ### _cr05338 - 4.2 percent. It is higher in urban areas ### Health service utilization and consultations - National consultation rate: 4.2 percent. - Urban consultation rate: 5.8 percent. - Rural consultation rate: 3.8 percent. - Consultation rate by sex: women 4.4 percent; men 4 percent. - Regional consultation rate range: between 6.6 percent and 2.2 percent. - Regions with higher consultation activity: - Central plateau: 6.6 percent. - Center: 6.1 percent. - East central: 5.2 percent. - Regions with low health consultation rates (examples listed with figures shown elsewhere in text): - North: 2.2 percent (health consultation rate lowest 3.7 percent noted). - South central: 2.7 percent. - East: 3.4 percent. - Boucle du Mouhoun: 3.6 percent. - Cascades: 3.6 percent. - Sahel: 3.7 percent. - Facility-type distribution of consultations (comparison 1998 vs 2003; percentages shown in Figure 4): - CSPSs: 57.5 (1998) and 48.1 (2003). - Referral facilities: 2.9 (1998) and 5.9 (2003). - Traditional healers (marabouts and pharmacopoeists): 8.8 (1998) and 15.7 (2003). - Other facility/practitioner categories shown in figure with percentages: Healer 8.8/15.7; Private doctors and pharmacists 3.4/3.4; Private nurses 1.4/4.7; Referral facilities 22.1/19.9; CSPSs 57.5/48.1; Private NGOs 2.9/5.9; Traditional birth attendants 0.2/3.2 (as depicted in Figure 4). ### Access to healthcare (travel time) - National share within 30 minutes of a healthcare facility (official standard): 35.3 percent. - Urban share within 30 minutes: 74.3 percent. - Rural share within 30 minutes: 26.6 percent. - Regions above national average (examples with figures): - Hauts Bassins: 46.6 percent. - North: 42.6 percent. - Center: 79.3 percent. - Region with particularly low access: southwestern region 5.3 percent within 30 minutes. ### Maternal health (2003) - Women receiving prenatal care (for live births in preceding year): 73.3 percent. - Proportion of women giving birth in a health facility (maternity clinic or hospital): 43 percent (returned to its 1993 level after decline to 27 percent in 1998). - Births attended by qualified personnel (doctors, nurses, midwives) over last five years: 44.2 percent (3.8 percentage points higher than 40.3 percent from the 2003 demographic and health survey). - Table 8 selected indicators (2003): - Total place of childbirth: Hospital/Maternity clinic 43.0; Other 57. - Total assistance during birth: Doctor 0.9; Nurse 10.9; Mid-wife 32.4; Total with qualified personnel 44.2; Traditional birth attendant 51.9; Other personnel 3.8. - Area of residence breakdown examples: - Rural: Hospital/Maternity clinic 35.8; Other 64.2; Doctor 0.6; Nurse 11.1; Mid-wife 25.3; Total with qualified personnel 37; Traditional birth attendant 58.8; Other 4.2. - Urban: Hospital/Maternity clinic 90.8; Other 9.1; Doctor 2.8; Nurse 9.7; Mid-wife 80.1; Total with qualified personnel 92.6; Traditional birth attendant 6.3; Other 1.1. - Regional and socioeconomic group breakdowns are presented in Table 8 with the figures conserved exactly as shown. ### Fertility and contraception - Fertility index for women aged 15–49: 6.9 percent (1993), 6.8 percent (1999), 6.2 percent (2003). - Decline in fertility index more pronounced between 1999 and 2003 due to increasing use of contraceptive methods. ### HIV/AIDS - HIV/AIDS prevalence in the general population (2003): 1.9 percent (decline of nearly 5 percentage points since 1999). - Knowledge of HIV/AIDS: - Women aged 15–64: 96 percent (2003) versus 87 percent (1998). - Men aged 15–64: 97 percent (2003) versus 96 percent (1998). - Condom use as prevention: - Women: 6.6 percent. - Men: 23.4 percent. ### Child mortality (changes 1993–2003; Table 9) - Infant and child mortality (‰): 204.5 (1993); 219 (1999); 184 (2003). - Infant mortality (‰): 107.6 (1993); 105.3 (1999); 83 (2003). - Neonatal mortality (‰): 51.3 (1993); 41 (1999); 31 (2003). - Post-neonatal mortality (‰): 56.2 (1993); 65 (1999); 51 (2003). - Note: Infant and child mortality rate and post-neonatal mortality rate rose between 1993 and 1998; other indicators declined. ### Nutrition (2003; prevalence) - Growth retardation (stunting) among children: Total 44.5 percent. - Rural: 46.8 percent. - Urban: 29.7 percent. - Regions most affected: East 59.9 percent; Central plateau 52.2 percent. - Insufficient body weight (wasting/underweight): Total 42.2 percent. - Rural: 44.5 percent. - Urban: 27.0 percent. - Regions with >50 percent affected: East and East central (figures in table: East 56.1; East central 52.2). - Prevalence of growth retardation (emaciation): 19 percent. - Gender breakdown: - Male growth retardation: 46.8 percent; insufficient body weight: 43.4 percent. - Female growth retardation: 42.3 percent; insufficient body weight: 41.0 percent. - Socioeconomic group and regional breakdowns presented in Table 10 with figures reproduced exactly in the source. ### Safe drinking water and sanitation - Households using water from tubewells: 31 percent (1998) increased to 40.4 percent (2003). - Hygiene and sanitation situation described as worrisome in both rural and urban areas, increasing risks of mortality and morbidity from waterborne diseases associated with unhealthy water and habitat. *Source: INSD, Report analyzing the results of EBCVM 2003* ### 4.2 percent of rural households still consume water from rivers and streams. ### _cr05338 - 4.2 percent of rural households still consume water from rivers and streams. ### Safe drinking water: access, trends, and regional gaps - 4.2 percent of rural households still consume water from rivers and streams. - Roughly 90 percent of households drew water from dug wells, tubewells, or public taps in both 1998 and 2003. - Trends between 1998 and 2003: - Use of taps increased moderately in urban areas. - Use of tubewells grew somewhat in rural areas relative to other safe sources. - These trends reflect an improvement in the quality of safe drinking water available to households. - Regional scarcity of safe drinking water remains acute in: - Boucle du Mouhoun (33.7 percent) - the west (54.6 percent) - the southwest (59.6 percent) - Policy and implementation effects: - National policy “Safe drinking water for all in 2000” contributed to favorable results. - Example: southwest reduced reliance on rivers from 68 percent in 1994 to 25.4 percent in 2003. - Caveat: 2003 data were collected during the dry season and do not rule out that rivers/streams were little used because they had dried up. ### Living conditions and household amenities - Housing quality components analyzed: walls, floor, roof, wastewater disposal, toilet type, electricity presence, cooking energy. - Urban–rural divide is described as enormous for this human development indicator. - Electricity access: - Rural areas: fewer than 1 percent of households had access to electricity in 1994; barely 1.1 percent in 2003. - Urban areas: dwellings served by electricity increased from 29 percent in 1994 to 34 percent in 1998 and 45.7 percent in 2003. - Kerosene lamp usage in cities: 69 percent in 1994 and 51.8 percent in 2003. - Urban households in the lowest standard-of-living quintiles made no substantial progress in electric supply between 1994 and 2003. ### Employment, education, and poverty linkages - Labor market participation rates (persons ages 15–60) in 2003: - Rural: 87.3 percent - Urban: 64.8 percent - Men: 87.8 percent - Women: 77.7 percent - Determinants of participation: - Education: supply of work highly sensitive to education in rural areas; in urban areas sensitivity concentrated among young people. - Standard of living: labor supply rate is 71.5 percent for poor households and 60.1 percent for rich households; result indicates low productivity of work by the poor and presence of secondary members affecting labor supply. - Gender and employment: - Poor women typically engaged in farm work or self-employed nonfarm work in the informal sector. - Households managed by such women have experienced deterioration in standard of living. - Labor market structure organized around three productive systems: - Agricultural sector - Rural (essentially agricultural) and urban (essentially non-agricultural) informal sector - Essentially urban modern sector (formal public and private wage-earners) - Policy implication highlighted: focusing economic policy on non-vulnerable employment and more effective labor market participation can help reduce poverty medium/long term. ### Access to assets, finance, and implications for poverty reduction - Access to land: - Agrarian and Land Tenure Reorganization (RAF) provisions have been revisited multiple times; implementation remains limited. - Distribution and ownership of land (including issuance of title deeds) majorly impact production, incomes, and living conditions of poor rural households. - Land functions as principal asset and potential collateral for credit. - Access to productive capital and financial services: - Authorities introduced instruments: support fund for employment promotion, support fund for the informal sector, support fund for women’s income-generating activities, and support project for promoting small and medium enterprise. - Additional initiatives by cooperation agencies (examples cited) complement these funds. - Funds have financed projects and created jobs but remain limited relative to needs. - Financial intermediation has barely touched the poorest areas; absence of banks and scarcity of microcredit organizations limit savings accumulation and access to credit. - Recommendation: increase supply of microfinancing and diversify essential activities to improve living conditions and build capacities. - Structural constraints to poverty reduction: - Poverty primarily attributable to: - an uncompetitive economy growing at a modest rate that cannot generate sufficient income and employment nor sufficient Government resources to provide basic socioeconomic services; - low literacy rate and educational level, leading to limited healthcare access and higher AIDS risk. - Despite economic growth of more than 5 percent in recent years, monetary poverty has stayed basically the same; rural poverty declined slightly while urban poverty increased substantially. - Poverty distribution: - Rural areas accounted for more than 92 percent of the poor in 2003, 94 percent in 1998, and 96 percent in 1994. - Policy priorities: reduce rural poverty via growth in rural incomes, diversification of income sources, improved access to physical assets (land, equipment, financial resources) and human assets (education, skills, healthcare, nutrition), and increased returns on these assets. ### Urbanization of poverty: drivers and responses - Identified drivers of urbanization of poverty: - Heightened tensions over the urban labor market related to migratory flows of low-education, low-skill populations. - Increasingly precarious urban working conditions in terms of incomes and protection. - Scope of female unemployment reflecting difficulties in access to the labor market and capital for women in large cities. - Response emphasis: - Support for growth should translate into greater access to production factors (land, credit, technologies, information) and greater investment in infrastructure. - Priority for the poverty reduction strategy: improve access to basic social services such as water, healthcare, and education, which differ markedly between rural and urban areas. ### PRSP financing and public expenditure (2000–2002) - Total financing injected into the economy (excluding debt) for 2000-2002: CFAF 1,306.6 billion. - Expenditure dynamics: - Current expenditure expanded by 9.9 percent a year. - Capital expenditure expanded by 1 percent a year. - External financing (excluding HIPC resources) for 2000-2002: CFAF 496.8 billion. - Shortfall relative to PRSP estimates: CFAF 41 billion. - Budgetary support totaled CFAF 159.1 billion, narrowing the gap. - Implementation rate for externally financed projects: 71 percent (reflecting low absorptive capacity). - Functional allocation of financing to priority ministries (shares of financing mobilized): - Basic education: 12.94 percent - Infrastructure: 11.63 percent - Agriculture, water, and fisheries: 10.78 percent - Health: 9.9 percent - Shared interministerial expenditure: - Accounted for 8.56 percent of total public expenditure over 2000-2002. - Posted an average annual growth rate of 18.7 percent. - HIPC Initiative implementation: - Amounts mobilized: CFAF 54.3 billion - Percent expended: 64 percent ### Macroeconomic context and growth performance (2000–2002) - Exogenous shocks affecting the economy: rise of the dollar and the price of oil, adverse climatic conditions, decline in repatriated savings, return en masse of Burkinabè nationals previously residing abroad. - Real GDP growth averaged 4.3 percent over the period 2000-2002. - Population growth: 2.4 percent. - GDP structure shift: tertiary sector contributed 43.4 percent, followed by the primary sector. *Source: _cr05338 - 4.2 percent of rural households still consume water from rivers and streams.* ### 39.5 percent and the secondary sector at 17.1 percent. This growth was coupled with a firm ### _cr05338 - 39.5 percent and the secondary sector at 17.1 percent. This growth was coupled with a firm ### Macroeconomic performance and prices - Growth composition: primary sector at 39.5 percent and the secondary sector at 17.1 percent. - Inflation: prices rose on average by 2.3 percent, in line with the community criterion (no higher than 3 percent). ### Fiscal revenues and budget balance - Tax ratio: "10.6 percent of GDP on average" versus the community criterion "17 percent". - Revenue structure: preponderance of export and import taxation over domestic taxation; attributed to narrow tax base and collection-related difficulties. - Budgetary savings: declined from "CFAF 40.4 billion in 2000" to "CFAF 22.4 billion in 2002". - Current expenditure growth: annual rate of "12.1 percent". - Current revenue growth: annual rate of "6.8 percent". - Self-financed investment to tax receipts: maintained at a level "some 13 points higher than the community criterion, which is a minimum of 20 percent." - Wage bill: "44.3 percent of annual tax receipts on average" against the community objective of "35 percent maximum". - Basic overall budget deficit (commitments basis, including grants): deteriorated from "3.9 percent of GDP in 2000" to "4.8 percent of GDP in 2002", or "more than four points above the zero-deficit community criterion." ### Debt and external accounts - Overall outstanding balance of central government external debt: "50.4 percent of current GDP on average" (noted as constraining from the sustainability standpoint). - Rate of indebtedness: in line with community target "Max 70 percent". - Debt service arrears: no payments arrears on the debt, in keeping with the community criterion. - Current external account deficit (excluding grants): dropped from "12.3 percent of GDP in 2000" to "9.1 percent in 2002". - Community criterion for current external deficit: "5 percent" (current level noted as close to double that criterion). ### WAEMU convergence criteria—compliance status (selected figures as reported) - Ratio of budget balance on a commitments basis, including grants, to nominal GDP (%): "2000 -1.6", "2001 -2.7", "2002 -3.7" (Standard: Min 0). - Average annual inflation rate (CPI) (%): "2000 -0.3", "2001 4.9", "2002 2.3" (Standard: Max 3). - Ratio of total outstanding debt to nominal GDP (%): "2000 54.8", "2001 50.1", "2002 46.3" (Standard: Max 70). - Nonaccumulation of domestic or external payments arrears: "0 0 0 0". - Ratio of wage bill to tax revenue (%): "2000 43.8", "2001 46.3", "2002 42.7" (Standard: Max 35). - Ratio of self-financed investment to tax revenue (%): "2000 26.3", "2001 35.3", "2002 37.4" (Standard: Min 20). - Ratio of current external deficit (excluding grants) to nominal GDP (%): "2000 15.0", "2001 13.3", "2002 11.8" (Standard: Max 5). - Tax ratio (%): "2000 11.0", "2001 10.2", "2002 10.6" (Standard: Min 17). - Source for table: "CID-TOFE, IAP." ### Competitiveness of the national economy - Market liberalization: continued opening of hydrocarbons distribution market to new entrants and new retail outlets. - Regulatory changes: revision of legal and regulatory provisions for the national commission on competition and consumption; continuation of gradual dismantling of protection to industrial units. - Privatization program: ongoing, but no evaluation yet available to confirm effects on job market or private investment. - Business formalities: one-stop shops reduced processing time to start businesses from "3 months to 15 days" and reduced number of formalities from "15 to 8". - Private sector support: creation of the House of Business and a framework for regular dialogue with private operators. - Factor costs: significant improvements in telecommunications; energy (electricity) and water costs continue to undermine competitiveness. - SME/SMI finance: financing mechanisms established including support fund for income-generating activities for women; microenterprise support project; informal sector support project; employment promotion fund; interbank guarantee fund (created in 2003). Emergence of hire purchase arrangements and contributions from decentralized financial system. ### Transport development and support for productive sectors (2000–2002) - Road works: asphalt-paving "411 kilometers of new roads", rehabilitating "261 kilometers", and routine maintenance on "more than 760 kilometers". - Other transport modes: air transport weakened by demise of "Air Afrique"; rail transport operations slowed and were suspended following the sociopolitical crisis in Côte d’Ivoire. - Road network usage: overuse since the Ivorian crisis accelerating wear and tear; Government needs to pursue maintenance efforts. ### Pillar 2 — Promoting access to basic social services by the poor: Education - PDDEB target: increase gross primary school enrollment ratio from "40.3 percent in 1999 to 70 percent by 2010"; girls from "36 percent to 65 percent". - Nonformal basic education enrollment: doubled from "1,100 in 2001" to "2,062 in 2002"; girls' share rose from "38 percent to 58.2 percent". - Infrastructure durability: limited permanent construction; in the 20 least-educated provinces only "19 percent of the infrastructure is permanent". - One-year enrollment figures reported in Box 8: gross enrollment ratio (GER) increased from "42.7 percent (36.2 percent for girls)" to "45.8 percent (about 38 percent for girls)"—an annual increase of "one percentage point". Projection: at that rate it will take "20 years to reach the PDDEB target (GER of 70 percent)" and even longer for the MDGs. ### Pillar 2 — MDGs and social indicators (selected outcomes) - Preschool enrollment: doubled from "0.72 percent in 2000 to 1.44 percent in 2002". - Reduction in school fees: "near 10 percent reduction in school fees between 2000 and 2001". - Poverty: incidence rose from "44.5 percent in 1994 to 46.4 percent in 2003" (a "2 percentage point increase"). - Malnutrition: population with shortfalls in minimum caloric intake dropped from "31 percent in 1990 to 24 percent in 1999"; underweight children rose from "27 percent in 1990 to 30 percent in 1998 and 42.2 percent in 2003". - Universal primary education projections: GER "30 percent in 1990 and 52.3 percent in 2004"; even if national target of 70 percent by 2010 met, GER would be around "86 percent in 2015" and universal primary education may not be achieved until "2020". - Adult literacy (ages 15-24): "18.4 percent in 1998 and 32 percent in 2003"; current pace "up 2.7 percentage points annually" could reach national target "40 percent by 2010"; projected literacy "about 60 percent in 2015" if trends continue. ### Pillar 2 — Gender, health, and disease control - Gender parity in primary education: girl-boy ratio moved from "0.62 in 1990 to 0.74 in 2000 and 0.76 in 2003"; projection: ratio "0.78 in 2005" and parity might require "another 22 years (or until 2025)". - Gender parity in secondary education: girl-boy ratio moved from "0.52% in 1990 to 0.62% in 2000 and 0.81 in 2003"; estimated to require "almost nine years (or until 2012)" to achieve target. - Under-five mortality: mortality improved from "105.3 per thousand in 1998 to 83 per thousand" (reduction of "22 points"); target cited "at least 38.2 per thousand by 2015". - Maternal mortality: declined from "566 deaths per 100,000 live births in 1993 to 484 deaths in 1998" (decline of "about 14.5 percent in five years"); projected 2015 level "283 deaths per 100,000 live births" and MDG target for Burkina Faso "142 deaths per 100,000 live births". - Contraceptive prevalence rates: urban "17 percent in 1993 to approximately 28 percent in 2003"; rural "1.5 percent in 1993 to around 5 percent in 2003". National 2000 targets (not met): urban "32 percent" and rural "9 percent". - HIV/AIDS: EDS III indicated HIV prevalence "around 1.9 percent" as against "4.2 percent in 2002" (noted in text). ### Health sector service delivery (2000–2002) - Human resources and facilities: recruitment/deployment of staff in rural areas ("some 3,000 staff"); "82 physicians were trained in essential surgery between 2000 and 2002 and deployed in 21 health districts". - Immunization coverage improvements between 2000 and 2002: - BCG: "80 percent to 90.35 percent" - DTCP3: "57 percent to 69.1 percent" - Measles: "59 percent to 64 percent" - Yellow fever: "56 percent to 61.3 percent" - Use of health units (new visits per person per year in first tier centers): rose from "0.21 percent in 2000 to 0.25 percent in 2002". - Policy emphasis: need to define and implement solidarity mechanisms to provide access to and finance healthcare; continue infrastructure and staff increases and skills upgrading; HIV/AIDS a major development concern. *Source: CID-TOFE, IAP.* ### 6.5 percent in 2001. If the current trend continues, despite ### _cr05338 - 6.5 percent in 2001. If the current trend continues, despite ### HIV/AIDS prevalence and trends - Prevalence reduced to 4.2 percent in 2002 as against 6.5 percent at end-2001 and 7.17 percent in 1997, according to data collected from sentinel sites (using the WHO/UNAIDS method). - The demographic and health survey (EDS III) indicates improvement, with the 2003 rate of seroprevalence estimated (value not completed in source excerpt). - Current population growth rate: 2.37 percent annually. - Projection/assessment: If the current trend continues, and given awareness raising efforts and outreach at all levels, Burkina Faso would move from the stabilization phase of the pandemic and settle into the final phase, during which there is a more noticeable ebbing of the pandemic. ### Malaria and child mortality - Malaria is endemic in Burkina Faso and is the primary cause of under-five infant mortality. - In 2000, malaria-induced mortality was 292 deaths per 100,000. ### Tuberculosis and other communicable diseases - About 2,500 cases of tuberculosis were detected in 2001, with 1,600 cases of positive cultures (64 percent). - Dracunculosis (Guinea worm) cases declined from 1,956 in 2000 to 1,031 in 2001, a rate of decline of 47.3 percent. - Deadly diseases such as meningitis, measles, and cholera persist. ### Environmental sustainability and institutional programs - Authorities have mainstreamed sustainable development principles in national policies and have specific programs by subsector, including: - national land management program - forestry program - national program for combating desertification - integrated water management program - national climate change early warning - national biological diversity action plan - Adopted frameworks: - national sustainable development strategy - decentralized rural development policy letter - Purpose: Serve as frames of reference and frameworks for harmonizing different programs aimed at achieving sustainable development. *Source: Excerpt from PDF content unit _cr05338 - 6.5 percent in 2001. If the current trend continues, despite* ### 1.9 percent. ### _cr05338 - 1.9 percent. ### HIV/AIDS prevalence, trends, and socioeconomic impact - Burkina Faso posted a decline in the prevalence rate, estimated at 1.9 percent in 2003 as against 4.2 percent in 2002, 6.5 percent in 2001 and 7.17 percent in 1997. - Number of AIDS cases grew exponentially from the first cases in 1986 to reach some 20,000 in 2002 (Figure 5: 1986–2002; running total and new cases). - UNAIDS 2002 estimates: number of orphaned children at 350,000 and number of children infected with HIV/AIDS at over 2,000. - Proportion of households with AIDS orphans estimated at 42 percent in rural areas and over 45 percent in urban centers (study on orphans, 2001). - Economic and social consequences: - Reduced farm labor and weaker manpower on farms. - Lower household financial resources and dwindling remittances (remittances from migrants averaged CFAF 40 billion to CFAF 45 billion annually from 1990 to 1999). - Impacts on workforce incomes, household well-being, and production structure. - Factors contributing to the stabilizing trend in HIV prevalence: - Numerous information, education, and communication campaigns promoting behavior changes. - Voluntary, confidential testing campaigns with more youth testing. - Improvement in treatment of the sick with ARVs, with emphasis on opportunistic infections. - Promotion of preventive means: condoms, abstinence, and faithfulness. - Treatment of sexually transmitted infections in all healthcare facilities. - Guarantee of safe transfusions in hospitals and other healthcare facilities. - High-profile launch of the national mother-to-child HIV transmission prevention program. - Sentinel site HIV prevalence in pregnant women (Table 12 — values preserved as in source): - Bobo-Dioulasso: 7.58 8.45.76.25.76.2 1.6 - Ouagadougou: 6.74 87.76.34.84.7 4.4 - Ouahigouya: 6.5 765.14.2 1.2 - Gaoua: 46.045.45.94.6 3.8 - Tenkodogo: 4.33.782.82.22.3 1.1 - (Table note: data refer to the Hauts Bassins, northern, southwestern, and east-central regions, with the exception of Ouagadougou.) ### Household access to safe drinking water - Coverage rate reached 73 percent in 2002. - Urban accessibility: 26 percent for private homes and 52 percent for public standpipes and water supplies. - In 1998, 42 percent of households drew water from protected wells and tubewells, compared with 41 percent in 1994. - Between 1998 and 2003: - Share of households using tubewells grew by 31.2 percent. - Households drinking water from rivers reduced by -56.7 percent. - If current trends continue, it will be possible to provide safe drinking water needs for over 73 percent of the population by 2015. - Major works yielded 2,588 water points, but 20 percent of the tubewells are not functional. - Priority actions: better coordination to reduce regional disparities and improve sustainable management of investments. ### Social sector main issues to address - Efficient use of resources in the social sectors. - Improvement of the quality of the education system. - Development of a coordinated literacy program. - Improvement in the quality of healthcare services and greater use of health units. - Improvement in safe drinking water supply. - Strengthening of the institutional coordination structure and the financing mechanism for the social sectors. ### Pillar 3: Increasing employment and income-generating activities for the poor (rural focus) - Strategic objectives: - Reducing the vulnerability of the agricultural sector. - Intensifying and modernizing agricultural activity. - Increasing and diversifying rural incomes. - Providing consistent support to producers and ensuring collective infrastructure is put in place. - Speeding reduction of isolation of remote areas. - Increasing national solidarity and advancement of women. - Promoting employment and vocational training. - Reducing vulnerability of agricultural activities: - “Operation Manure Pit”: 52,000 pits dug in 2002 and 196,000 in 2003. - Agricultural water works developed; cloud seeding under "Operation SAAGA". - Small-scale village irrigation experimentation begun. - 49 percent of farmers are women. - Animal productivity initiatives: upgrading grazing areas, veterinary stations, water points, delimiting pasturelands, cutting cattle paths, intensifying fight against common diseases. - Need to enforce legal and regulatory provisions on agrarian and land tenure and law orienting use of pasturelands. - Intensifying and modernizing agriculture: - Initiatives reached many farmers (40.4 percent women), providing improved seed varieties (rice, niébé, corn, sorghum, and groundnuts), threshing and hulling equipment, and pumping equipment (foot pumps). - Major investments in the cotton sector distributed more than CFAF 180 billion to cotton farmers. - Sustainable intensification depends on creating conditions for secure land tenure. - Increasing and diversifying rural incomes: - About CFAF 7 billion in microcredits distributed over 2000-2002. - Financing distribution by sector (preserved as in source): agricultural sector (4.61 percent); crafts sector (1.77 percent), stockraising (38.77 percent), processing (22.68 percent), commerce (31.86 percent). - Support extended to fruits and vegetables, poultry farming, fish farming, forestry, and wildlife/game farming. - Jobs created enabled distribution of CFAF 6 billion in income among communities. - Need to continue efforts to increase poor people's access to credit and integrate decentralized financial systems into the modern financial system. - Ongoing support to farmers and shared infrastructure: - Formation of umbrella organizations since 2000; Faso Farmer’s Confederation established in 2002. - 30,515 grassroots farmers’ organizations recognized under Law No. 14/99/AN of April 15, 1999 were extant in 2002; 6 umbrella organizations legally recognized. - Funds disbursed: CFAF 394.8 million at village level and CFAF 516.9 million at provincial level. - Improving access (transport, electrification, energy): - Construction of 800 kilometers of rural roads (target was 300 kilometers). - Technical studies on 818 kilometers of roads conducted. - Rural electrification: nine secondary centers electrified in 2000; 125 departmental population centers benefiting from renewable energy sources (solar panels) since 2000-2001. - Public lighting and installations at prefectures, schools, CSPSs, state technical services, markets, youth centers. - Towns of Pô and Léo linked to the Northern Ghana power grid. - Need to define and implement an action plan with relevant monitoring indicators. - National solidarity and advancement of women: - National solidarity fund set up for disadvantaged groups and emergency situations. - Initiatives targeting women in 20 most disadvantaged provinces: construction and rehabilitation of shelters, purchase of mills, shea nut presses, cereal hulling machines, motor pumps, sewing machines, wheelbarrows, carts, etc., improving economic and social situation. - Need for strategies to reduce social inequalities and a consensus-based strategy to mainstream gender in policies and programs. - Promoting employment and vocational training: - Evaluation and vocational training centers rehabilitated, increased intake, improved pedagogical and training capacity. - Strengthening financing structures (FAPE, FASI) to improve access to financing for micro and small enterprise promoters. - Employment and vocational training observatory established; operational register of occupational trades and jobs being developed. - Need to strengthen national vocational training mechanism, increase intake capacity, align training with economic realities, and facilitate access to credit for many promoters. ### Pillar 4: Promoting good governance - National good governance plan adopted in 1998 serves as frame of reference; implementation since 2000 has: - Strengthened democracy and rule of law. - Promoted transparency in budget management. - Democratic governance: - Regular multiparty elections at legislative and municipal levels. - Strengthening democratic culture via ongoing dialogue among political and social stakeholders. - Press freedom forum opened under new information code and communication for development policy. - National day of pardon organized; over 300 persons compensated in 2002 and about CFAF 1.5 billion paid out to victims of political violence. - Ministry for human rights established in 2002 and a program of action completed. - Justice sector reform: Supreme Court recast into four autonomous higher jurisdictions (Council of State, Audit Office, Court of Cassation, Constitutional Council); new status for magistrates adopted. - Constraints: low number of lower jurisdictions and capacity shortfalls hamper judiciary efficiency; access to justice remains a priority. - Improving economic governance: - “Burkina 2025” long-term vision study initiated. - Sharpened budgetary programming and management tools; consolidated integrated expenditure circuit; integrated revenue circuit being developed. - Use of Medium-Term Expenditure Framework to reflect PRSP priorities in the Budget Law. - Public expenditure reviews in education, health, infrastructure, and rural development led to more substantial budget allocations and improved budget implementation rates. - Draft settlement laws for fiscal years 1995–2002 submitted to the Chamber of Accounts, upgraded to an autonomous Audit Office in July 2002. - Efforts to deconcentrate budget implementation, revise government procurement procedures to enhance transparency. - Introduction of merit-based evaluation system, programming tools for administrative units (mission statements, performance-based contracts, activity schedules, management indicators, activity reports), new by-laws for contractual staff, production of job descriptions. - Establishment of human resources departments and deployment of SIGASPE on the Government’s shared administrative network (RESINA). - Anti-corruption: National Ethics Committee established in 2001 and the High Authority for Combating Corruption in 2002; emergence of a national civil society network to combat corruption. - Local governance: - Creation of 13 administrative regions completes decentralization institutional architecture. - Decentralization hampered by failure to transfer authority and resources to local government level. - Renewal of teams in 49 municipalities; proportion of women elected increased from 12 percent to 21 percent between 1995 and 2000. - Decentralization currently affects 18 percent of the population and covers only 20 percent of the country. - Capacity shortfalls on political, administrative, organizational, and resource fronts hamper citizen participation. - Tardiness in implementation of comprehensive administration reform slows sectoral ministries (education and health) awaiting legal framework for regionalization of human resource management. - Priority objectives: extend decentralization to rural areas and define legislative framework governing rural communes. *Source: _cr05338 - 1.9 percent.* ### 4.1 BURKINA FASO’S DEVELOPMENT PROSPECTS AND VISION ### 4.1 BURKINA FASO’S DEVELOPMENT PROSPECTS AND VISION ### Long-term vision and human security - In 1995 the Government set a vision focused on sustainable human development and human security, giving every Burkinabè access to: - economic security, linked to access to education, vocational training, and gainful employment; - health security, linked to less expensive access to both preventive and curative medical care; - food security, linked to access to basic foods, including safe drinking water; - environmental security, linked to the conservation of a healthy environment; - individual and political security, linked to development of the positive principles of sound public management, namely the primacy of law, accountability and participation, effectiveness and transparency. ### Policy guidelines embedded in the letter of intent - Pursuit of maximum impact from public spending on the principal social sectors; - Promotion of fairness and equality of opportunity between different social brackets and genders with no restrictions on public and civil liberties; - Environmental protection; - Human resources and employment development; - Participation by members of civil society (particularly NGOs and associations) in the development, execution, monitoring, and evaluation of development policies and programs; - Transparent public resource management procedures and tools. ### Broad government goals (national poverty reduction strategy) - Strengthen actions aimed at reducing the state of poverty and vulnerability of populations and the various disparities; - Pursue good macroeconomic policies to achieve strong, sustainable, and more evenly distributed growth; - Speed up and strengthen the decentralization process and actions designed to modernize government; - Successfully integrate the country into the globalization and regionalization process. ### Forward-looking planning: “Burkina 2025” - Since 1999 the Government has fostered debate on “Burkina 2025” to encourage social dialogue on major development issues and clarify a generational vision. - Conclusions emphasize promoting human security by attacking poverty from a structural perspective; three key elements require special attention: - the requirements of good governance; - the foundations of cultural integration and openness; - the platform of factors and stakeholders. ### Governance and integration priorities - Emphasize self-reliance on Burkinabè values combined with good governance that is visionary and ambitious. - Make the fight against corruption a catalyst for inclusion and governance tools. - Eliminate prejudices against the informal sector and tourism because of their major role in poverty reduction. - Treat regional integration as an action-based variable to enhance participation in globalization. ### Medium-term quantitative objectives (Government targets) - Increase per capita gross domestic product by at least 4 percent per year beginning in 2004; - Reduce the current incidence of poverty to less than 35 percent by 2015; - Increase life expectancy to at least 60 by 2015. --- ### 4.2 MEDIUM-TERM DEVELOPMENT OUTLOOK ### Education (4.2.1) - Education is central to human resource development and poverty reduction. - Overall policy for developing the educational system through 2010 is based on four principles: - expand basic education to include the first cycle of secondary education; - increase the coverage of basic education while improving its quality; - ensure balanced development of the educational system in order to meet the needs of the economy with respect to both quantity and quality; - develop a specific and consistent program to provide broad opportunities for effective literacy training to adults in general and women in particular. - Government option: quantitative and qualitative development of basic education and literacy training, with attention to balance, population aspirations, and economic requirements in globalization and regionalization. ### Education objectives for the coming years - Increase, at a reasonable cost, the gross enrollment ratio in primary school to 70 percent by 2010, especially for children and girls in rural areas, and improve the quality and effectiveness of the system; - Develop and diversify literacy training activities and approaches so as to raise the literacy rate to 40 percent by 2010, especially for women and inhabitants of underprivileged areas; - Improve the availability and supervision of preschool education as a framework for early learning and preparation for primary school; - Improve the quality of learning and teaching so as to reduce the waste associated with high numbers of school year repeaters and drop-outs; - Build the management capacity of schools, inspectorates, and regions, as well as MEBA’s steering capacity, commensurate with the very rapid growth in the volume of activities generated by decentralization and deconcentration. ### Implementation emphasis - Strengthen the Ten-Year Plan for Basic Education Development (PDDEB); - Strengthen nonformal educational outreach through a “just do it” approach and by building up the national fund for literacy training and nonformal education. ### Table 13 — Harmonization of indicators from the PRSP and the various phases of the PDDEB (as reported) - Calendar and school years/Objectives — INDICATOR — 2001 2002 2003 2004 2005 / 2001 - 2002 2002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006 - Budget indicators - Share of budget earmarked for MEBA (%) 10.55 10.59 11.23 20.03 14.46 - Share of budget earmarked for MEBA from the Government’s own resources (%) 11 11.19 14.46 15.15 16 - Gross admission ratio (GAR) (%) 39 45.74 64 9 54 - GAR for girls 33 37 41 46 52 - GAR for 20 priority provinces 28 32 37 42 48 - GAR for girls in 20 priority provinces 23 27 33 39 46 - Ratio of school year repeaters by subcycle (%) - *CP (preparatory) 13 11 9 7 6 - *CE (elementary) 17 14 12 10 8 - *CM (middle) 19 16 14 12 10 - Gross enrollment ratio (GER) (%) 42.7 47.5 52.2 53 56 - GER for girls 36.2 38 42 47 50 - GER for 20 priority provinces 28 31 34 38 42 - GER for girls in 20 priority provinces 23 26 30 34 39 - Book/student ratio - * Math 0.5 0.6 0.7 0.8 1 - * Reading 0.6 0.7 0.8 0.9 1 - Source: DEP/MEBA, 2003. ### Other types of education (4.2.1.2) - Develop and implement a cohesive program for other types of education with special emphasis on learning the trades, science and technology, technical and vocational education. --- ### 4.2.2 Health - National health strategy since 1995 focuses on health security with less expensive access to preventive and curative care. - Core principles: - a primary healthcare policy with an emphasis on prevention; - a system of healthcare cofinancing between government and grassroots communities; - real decentralization of healthcare facilities to guarantee participation of populations and accountability of local authorities; - an incentive system to encourage the private sector to create healthcare facilities and pharmacies. - Strategy rooted in the Bamako initiative: strengthen primary healthcare, autonomous management of healthcare facilities by health center management committees, availability of generic essential drugs, and cost recovery. - Implementation difficulties: weak community participation in management; low household financial capacity for health; technical limitations of healthcare facilities. - National health policy paper adopted in 2000; national health sector development plan covering 2001–2010 adopted in July 2001 and updated in 2003. ### Intermediate objectives of the health sector plan - Expand national healthcare coverage; - Improve the quality and increase the use of healthcare services; - Intensify the fight against transmittable and nontransmittable diseases; - Reduce HIV/AIDS transmission through an appropriate strategy; - Develop human resources in the health field; - Improve the people’s financial access to healthcare services; - Increase health sector financing; - Build the institutional capacities of the Ministry of Health. ### Identified strategies to achieve objectives - Conduct forward-looking studies to identify and analyze determinants of healthcare demand and develop a healthcare demand model to redefine strategies and improve rates of visits to healthcare facilities; - Pay special attention to vulnerable groups and redirect resources (funds, staff, and supplies) to poorest areas and most underprivileged and vulnerable populations; - Ensure the minimum package of activities is available at all healthcare facilities and make health districts operational so the poor have access to basic healthcare; - Improve health services via quantitative and qualitative increase in staffing, boost staff motivation, improved supervision, better staff-patient communication, improvements in reception and waiting times, and better availability of drugs; - Consider insurance systems to cover the poor through general taxation, mandatory contributions to health insurance, or voluntary initiatives, and by subsidizing the poorest. --- ### 4.2.3 HIV/AIDS control - Strategic Framework for HIV/AIDS Control 2001-2005 (adopted May 2001) favors a multisectoral approach and sets four main goals: - (i) intensify efforts to prevent the transmission of sexually transmitted diseases and HIV; - (ii) step up surveillance of the epidemic; - (iii) improve the quality of overall support for infected and affected individuals; - (iv) broaden the response and promote national and international partnership and multisectoral coordination. - Importance of mainstreaming HIV/AIDS into PRSPs and national poverty reduction efforts. - For HIPC-eligible countries, debt relief offers potential for significant increases in public financing of HIV/AIDS programs through earmarking of funds; Burkina Faso is among countries that have begun to use this opportunity. - Debt relief could generate several hundred million dollars annually for AIDS in Africa if governments allocate a significant share of expected debt relief “savings” to AIDS. --- ### 4.2.4 Safe drinking water - Government adopted water policy in 1998; action plan for integrated water management adopted in 2003 with new approaches, objectives, and specific actions. - Three components by community size and capacity: - (i) safe drinking water supply in urban centers; - (ii) safe drinking water supply in semi-urban centers; - (iii) safe drinking water supply in rural areas. ### Table 14 — Objectives for the provision of safe drinking water (selected indicators and reported values) - 1 - Reduction of disparities between provinces with respect to safe drinking water supply through an increase in the rate of coverage - Number of provinces (NP) < 50% 42 0 - 50% < NP < 75% 10 8 0 - 75% < NP < 85% 10 10 10 - 85% < NP < 90% 10 14 15 - 90% < NP 11 11 20 - 2 – Expansion of facilities in secondary centers (2,000 to 10,000 inhabitants) 40 40 40 - 3 – Rate of breakdown of human powered pumps (%) 20 18 15 - 4 – Access to safe drinking water (creation of new water points) 1,000 1,000 1,000 --- ### 4.2.5 Rural development - In 2003 the Government adopted a national strategy for rural development through 2015 based on lessons from sustainable growth in agriculture and livestock and decentralization principles. - Vision: a rural world that is less poor and enjoys sustainable food security through: - increased output from agriculture, livestock, fisheries, forests, and wildlife as a result of improved productivity; - increased incomes as a result of greater integration into the market economy and the diversification of economic activities in rural areas; - modernization of family farms; - regional diversification and specialization of production; - sustainable management of natural resources and ecosystems. - Overall objective: ensure sustainable growth of the rural sector to contribute to poverty reduction, greater food security, and advancement of sustainable development. *Source: 4.1 BURKINA FASO’S DEVELOPMENT PROSPECTS AND VISION* ### BOX 10: Policy Letter for Decentralized ### BOX 10: Policy Letter for Decentralized Rural Development ### Specific objectives - increase the output from agriculture, forests, livestock, and wildlife over the coming years; - contribute to growth in the income of farmers and livestock raisers so as to improve their standard of living and reduce the incidence of poverty in rural areas through the diversification of activities; - strengthen the link between producers and markets; - create favorable conditions to make a balanced and adequate diet available and accessible to populations; cover standard caloric intake requirements (2,500 calories/day) and increase the consumption of animal protein (from the current level of 9.3 kg per person per year to 21 kg per person per year); - strengthen and bring into widespread use the sustainable management of natural resources by rural communities; - improve the economic and social status of women and youth in rural areas; - build the capacities of rural populations and develop their accountability as development stakeholders. ### Context and institutional vision - In 2002, the Government of Burkina Faso adopted a policy letter for decentralized rural development (LPDRD) as a unifying framework for programs and projects targeting grassroots rural communities to improve resource efficiency and national coverage for poverty reduction. - The LPDRD crystallizes a vision for the rural world in the year 2010 within a multisectoral framework and emphasizes harmonization, coordination, and monitoring and evaluation at the national level. - Core principles: - (i) Rural populations have full responsibility for local development through decentralized communities in partnership with Government and agencies. - (ii) Rural populations enjoy efficient access to social services (healthcare, education, safe drinking water, etc.) and basic infrastructure. - (iii) Technical agencies refocus on formulation and monitoring of sector policies, compliance, and formative public investments. - (iv) Private operators, NGOs, and associations provide services on a contractual basis. - (v) Rural incomes increase and food security improves. ### Strategic goals - increase and diversify the output from agriculture, livestock, forests, wildlife, and fisheries; - strengthen the link between producers and markets; - increase and diversify sources of income; - improve safe drinking water supply and sanitation; - ensure sustainable management of natural resources; - build the capacities of stakeholders and create a favorable institutional framework; - promote a gender-based approach to improve the economic and social status of women and youth in rural areas. ### 4.2.5.1 Increase and diversify output (agriculture, livestock, forests, wildlife, fisheries) - Agriculture: current farming techniques exacerbate natural-constraint effects and rarely adapt to domestic and external market changes (except cotton and some export crops such as green beans). Growth, diversification, and intensification require qualitative transformations in production systems, stakeholder behavior, and the socioeconomic environment. - Priority actions: - support and advice for producers, along with research and development; - agricultural water supply; - development of agricultural water systems, prioritizing lowland development to intensify small-scale irrigation; - development of growth industries; - development of agroprocessing and marketing of agricultural products; - development of agricultural mechanization; - better and more secure access to land; - integrated management of soil fertility; - better conditions for access to credit from banks and microfinance institutions. - Livestock: use stockraising to reduce food insecurity and boost incomes. - Main interventions: - improved resource management and development of pastoral areas; - improved feed and water; - improved animal productivity; - improved animal health; - improved competitiveness and access to animal product markets; - support for livestock farmer organizations. - Forest and wildlife: emphasis on fuelwood industry development, non-woody forest products, reducing land burned by bush fires, increasing wildlife populations, developing an information system for forests and wildlife data, and conserving biodiversity. - Fisheries: domestic fish production is highly insufficient, increasing imports and contributing to the trade imbalance. By 2015 the goal is to: - increase fish production and catch on a sustainable basis; - develop aquaculture and diversify fish production. ### 4.2.5.2 Strengthen links between producers and markets - Address upstream and downstream constraints (preserving, processing, marketing). - Priority actions: - improved access to producing areas; - development of infrastructure for bringing products to market; - product processing to preserve products and increase added value (cotton, fruits and vegetables, sesame, shea kernels, milk, meat, woody products, etc.); - development of an effective information system on markets; - development of communications infrastructure; - improved competitiveness of export products; - development of industrial or semi-industrial units to increase added value; - capacity-building and improved services in product processing and quality control; - development of commercial products according to comparative advantages. ### 4.2.5.3 Increase and diversify sources of income - Requirements: improved access to credit, monetization of rural activities, improved competitiveness of cash crops and commercial products, promotion of income-generating activities and self-employment. - Improved access to microcredit: - Develop a rural microfinance development strategy with terms and procedures tailored to rural activities (rural handicrafts, production/preserving/processing/marketing of agricultural and livestock products, export of forest and fish products). - Continue creating conditions for geographic expansion of decentralized financial systems and organizational capacity-building via refinancing and guarantee fund mechanisms at financial institutions. - Special attention to food producers as the poorest and most vulnerable group. - Accelerated monetization: - Strengthen small-scale village irrigation to increase food security and create rural employment during the dry season. - Steer producers toward new, more lucrative activities: (i) livestock fattening; (ii) mini-dairies, usually managed by women; (iii) leather and hide handicrafts; (iv) small animal breeding; (v) fish farming and aquaculture; (vi) small logging operations; (vii) wildlife development. - Competitiveness of commercial products: - Encourage diversification of export products and export potential; improve competitiveness of growth industries (cotton, oil-producing plants, fruits and vegetables, leathers and hides, tourism based on hunting, etc.). - Income-generating activities and self-employment: - Implement a private initiative support program to promote agroprocessing, small animal breeding, off-season crops, handicrafts, and small trade. - Emphasize fisheries, non-woody forest products, and development of utilitarian local species. - Fisheries subsector contribution depends on support for production, processing/consumption, and marketing of fishery and aquaculture products. ### 4.2.5.4 Ensure sustainable management of natural resources - Rising pressure on land, water, forest, wildlife, and fishery resources due to population growth and migration increases conflicts over resource use. - Priority actions by resource type: - Land resources management: - promote production systems guaranteeing durability and sustainability of ecosystems via careful intensification; - strengthen security of land tenure; - restore soil fertility; - promote widespread use of erosion controls (CES/AGF and DRS); - improve rangeland and water point management; - build sector capacities. - Water resources management: - define rights, responsibilities, and roles of stakeholders for integrated water resources management; - set up a water resources information system for monitoring resources, uses, demand, and water-related risks; - develop procedures to implement laws and regulations on water use for actors involved; - promote research and development to improve understanding of the water cycle and uses; - develop human resources to fill roles in water management; - carry out informational, educational, awareness-raising, and advocacy actions; - set up an institutional framework adapted to integrated water resources management; - implement the national strategy for sustainable development of irrigated agriculture; - implement actions to protect watersheds and river/stream banks. - Forest, wildlife, and fishery resources management: - promote sustainable forest development by integrating forestry into rural development, rebuilding and managing forest resources on community lands, and regionalizing and decentralizing forest planning; - manage seed production areas and pursue genetic improvements in forest species; - promote environmental assessments and environmental education; - protect classified forests to maintain ecological processes and provide goods and services; - build accountability among riverside populations for ecosystem management; - promote actions to protect and restore aquatic ecosystems; - rigorously enforce laws and improve governance of forest, wildlife, and fishery resources. ### 4.2.5.5 Capacity-building and institutional framework - Key stakeholder groups: government agencies; professional organizations and private operators; local and grassroots communities; technical and financial partners. Priority capacity-building for government agencies and professional organizations. - 4.2.5.5.1 Build capacities of government agencies: - Capacity deficits in management and strategic planning stem from inadequate professional capacities and work resources. - Capacity-building must be holistic: institutional changes, professional behaviors, logistics, motivation, not only training. - New Information and Communications Technologies (NICT) should be harnessed for development management. - Priority actions: - improve staffing by resuming or continuing civil service hiring for ministries involved in rural development; - improve institutional arrangements; - build technical and operational capacities of government agencies; - provide government agencies with access to NICT. - 4.2.5.5.2 Build capacities of professional organizations: - Reforms refocus Government role and require producer organizations to assume accountability and new requirements. - Capacity-building areas: - structuring and institutional development of professional organizations; - vocational training; - functional literacy. - Structuring and institutional development: - Support emergence and structuring of producer organizations created under Law 014/AN/99 based on voluntary membership and cooperative principles (democratic control, economic participation of members, autonomy, independence, nondiscrimination). - Regional chambers of agriculture established in all regions represent the agricultural profession; they are consular public entities managed by elected producers and can assume functions of general interest (training, information, technology transfers). - Government support based on activity plans adopted by producer organizations; provide training, experience-sharing trips, material/human/financial support; rely on associations, NGOs, and training centers as service structures. - Vocational training: - Essential for productivity, technology transfer, and adapting to globalization; current training centers cannot meet diverse needs. - Government developing a new vocational training approach to train greater numbers of youth in various specializations. - Functional literacy: - Illiteracy is pronounced in rural areas; development of basic education and functional literacy is key. - The Ten-Year Plan for Basic Education Development calls for accelerated action in disadvantaged areas. - 4.2.5.5.3 Build capacities of private operators: - Private operators need vocational training to improve productivity, adjust to competition, encourage private investment, and attract foreign capital. - Develop and implement a program to support private initiative in agroprocessing, small animal breeding, off-season crops, and rural services. - 4.2.5.5.4 Create a favorable institutional framework: - Government to improve tax-related, institutional, legislative, and regulatory environment to enable rural stakeholders to play their roles. - Government provides public goods and services in research, outreach, controls, and regulations; institutional support to farmer organizations and local communities via training. - Adopt an agriculture and livestock investment code that accounts for investment return to encourage private investment and facilitate private takeovers of services (equipment/input supply, veterinary services, product processing and marketing). - New terms and conditions give private operators access to agricultural water systems; continue contract-based links with private operators while retaining steering, monitoring, evaluation, and oversight roles. ### 4.2.5.6 Promote a gender-based approach (women and youth) - 2003 Burkinabè survey of household living conditions findings: - Women contribute more than men to the overall incidence of poverty at the national level: 52 percent of women versus 48 percent of men. - Severity of poverty: women 7.3 percent versus men 6.9 percent. - Literacy rate for women: 12.9 percent; men: 24 percent. - Socioeconomic and sociocultural impediments limit women’s access to inputs (land, equipment, credit). - Youth face social dependence and difficult access to production factors, resulting in rural exodus. - Policy: give special attention to improving living conditions of women and youth as part of the poverty reduction strategy; adopt a socioeconomic approach that accounts for returns from women’s economic activities. - Rationale: women contribute more than men to creation of national wealth, particularly in rural areas; improving their working conditions will impact output. ### 4.2.6 Physical and living environment (2004–2006 priorities) - Burkina Faso aligned with Millennium Development Goals and Johannesburg Earth Summit commitments. - Recognize strong link between poverty and natural resource degradation (desertification); require multisectoral action to guarantee basic prospects for: - water suitable for consumption and conducive to food security; - a sustainable supply of energy; - good health from responsible use of natural resources; - sound agriculture in a viable rural context; - guaranteed biodiversity and protection of essential ecosystems. - Priority actions for 2004-2006: - intensify the fight against desertification by fine-tuning local development programs based on experiments and studies; - improve living environment of urban and rural populations via an action plan for sanitation and landscape improvements, with special attention to rural concerns (agricultural pollution, mining and industrial pollution). - Rural electrification: - Strengthen rural electrification programs and develop solutions (e.g., solar energy, multifunctional platforms) to make electric power more accessible and secure installations. - Sanitation: - Three quarters of all households have no latrine; the majority are rural households. - Absence of public sanitation systems in large cities; only Ouagadougou and Bobo-Dioulasso have strategic wastewater/excreta disposal plans and waste management/rainwater removal actions underway. - National sanitation strategy aims to safeguard natural and human environment so each citizen enjoys clean water, air, and public spaces; environmental protection policy promotes sanitation, prevents degradation, and protects living species and property. - Sanitation objectives: - involve authorities closely in planning to ensure continuity, capacity-building, and ownership based on real community demand; - incorporate shared management responsibility among government, private sector, NGOs, and local communities; - make sanitation an essential component of development programs emphasizing community initiatives. - Sanitation requirements breakdown: (i) rainwater; (ii) wastewater and excreta; (iii) household garbage and solid waste. ### 4.2.7 Efforts to combat insecurity (national plan 2004–2008) - Institutional measures taken: creation of a ministerial department for security; establishment of high authority on weapon imports/uses and national commission to fight proliferation of light weapons (January and April 2001); May 2003 law on internal security; national plan to combat insecurity covering 2004–2008. - Plan’s three major objectives: - increase national security coverage by lowering number of inhabitants per security officer from 2,000 to 1,000; - improve organizational capacities of security forces; - organize citizens’ participation in managing their security. - Measures: - Set up squads of constables in rural communes, police stations in urban communes and at border posts; set up firefighter brigades. - Recruitment plan: recruit 8,400 security officers with the following breakdown: 5,000 police officers, 3,000 constables, and 400 firefighters. - Construct and rehabilitate infrastructure housing security services. - Improve operational capacities by acquiring mobility and transmission means, providing adequate equipment, and maintaining units. - Encourage citizen participation through consultation frameworks on security issues. ### 4.2.8 SMEs, small industries, and small mining operations - Government support for private sector promotion with emphasis on small and medium enterprises/industries (SME/SMI) as providers of employment and income. - Planned national program for SME/SMI development focusing on: - financing via an SME/SMI support fund; - equipment; - supervision and training of operators. - Mining sector: - Institutional, legislative, and regulatory framework updated (mining policy January 1997; mining investment code updated in 2003). - Mining primarily extracts gold; gold is the country’s third leading export after cotton and livestock products. - Traditional mining employs more than 200,000 persons at at least 200 sites. - Recent annual contribution of traditional mining to gold production: roughly 15 metric tons per year, valued at CFAF 50 billion. - Income derived directly from traditional mining activity: CFAF 3 billion per year. - For 1991-2001 decade: - contribution to provincial budgets from gold washing taxes: approximately CFAF 500 million; - Public Treasury collections: roughly CFAF 450 million from mining royalties and CFAF 1,350 million from business profits taxes. - Traditional mining faces technical, financial, and legal difficulties and has damaging environmental and public health effects. - Government measures for the sector: (i) better organize traditional mining operations; (ii) secure gold washing sites; (iii) improve outreach to gold washers; (iv) provide logistical and technical support to improve productivity; (v) restore the environment. ### 4.2.9 Capacity-building and NICT promotion - PRSP implementation exposed weak performance in management and line agencies due to insufficient ownership, professional capacities, and equipment. - Capacity-building must be holistic, integrating institutional dimensions, training, professional behaviors, logistics, and motivation. - Center for Economic and Social Policy Analysis (CAPES), supported by the Foundation for Capacity-Building, has begun a diagnostic study on national capacity status and should contribute to: - identification of fields where government agency capacities are critical to the poverty reduction strategy; - establishment of a critical mass of national professional staff for economic management; - development of a national plan of action in capacity-building. - NICT strategy objectives: - elimination of the country’s overall isolation; - stronger administrative governance; - sustainable human resources development; - creation of new resources and new jobs; - enhancement of the country’s influence. *Source: BOX 10: Policy Letter for Decentralized Rural Development (excerpt).* ### 5.1 GUIDING PRINCIPLES ### 5.1 GUIDING PRINCIPLES ### Overriding principles - The Government’s overall strategy for poverty reduction in Burkina Faso is based on eleven closely linked overriding principles: - Taking a resolutely long-term approach - Promoting good governance - Developing human capital - Sustainable management of natural resources - Gender mainstreaming - Promoting employment and youth - Cultural adaptation and openness - Promoting new information and communication technologies - Reducing regional disparities - Factoring in the subregional dimension - Promoting a new partnership with donors ### 5.1.1 Taking a resolutely long-term approach - Findings: - Poverty is described as a mass phenomenon requiring long-range planning. - Long-term approach provides a logical framework for sequencing short-term, medium-term and long-term poverty reduction policies and programs. - Policy emphasis: - Government must have a clear vision of future direction and effective leadership. - Improve governance practices to support sustained poverty reduction. ### 5.1.2 Promoting good governance - Findings: - Democracy, good governance, and socioeconomic development are dialectically related. - Burkina Faso has supported initiatives including the African Peer Review Mechanism and the Durban Declaration on good governance. - Recent progress: introduction of a multiparty system, adoption of a liberal constitution, establishment of democratic institutions, regular elections, new laws and regulations, creation of an Audit Office. - Policy recommendations: - Continue measures to strengthen the culture of democracy. - Focus government efforts where it has comparative advantages while respecting the subsidiarity principle. - Government intervention guided by remedying market failures and striving for social equity. - Establish a “strategist government” able to anticipate and perform regulatory and redistributive functions. ### 5.1.3 Developing human capital - Findings: - Burkina Faso’s average of 0.5 years of education is identified as very low. - One additional year of schooling can lead to a gain of 3 or 4 percentage points in gross national product. - Policy recommendations: - Prioritize both quantity and quality of human capital development. ### 5.1.4 Sustainable management of natural resources - Findings: - Population growth and poverty place great pressure on natural resources, often the main asset of the poor. - Excessive use undermines sustainability of development actions. - Policy approach: - Reconcile short-term needs with sustainable management of available resources. ### 5.1.5 Gender mainstreaming - Findings: - Women, equally with men, are vectors for disseminating economic and social welfare. - Gender mainstreaming requires assessing implications for women and men of any planned action in all areas and levels. - Policy recommendations: - Develop a consensual national strategy for equitable gender outcomes. - Ensure gender concerns are integral to design, implementation, monitoring, and evaluation of policies and programs. - Source cited in text: - Agreed conclusions on mainstreaming the gender perspective, ECOSOC, 1997. ### 5.1.6 Promoting employment and youth - Findings: - Labor factor is massively underemployed in urban and rural areas; large proportion living below the poverty line. - Unemployment and underemployment contribute to social decline, crime, and growing insecurity. - More than 55 percent of the population in Burkina Faso is young. - Policy recommendations: - Make employment an explicit policy objective centered on labor-intensive growth. - Integrate youth into all development policies across sectors. - Recognize youth as assets for innovation, entrepreneurship, and ICT adoption. - Address vulnerabilities: unemployment, underemployment, sexually transmitted infections and HIV/AIDS, crime, drugs, prostitution. ### 5.1.7 Reducing regional disparities - Findings: - Regions have unequal development levels in income and access to basic social services (education, healthcare, safe drinking water). - Disparities contribute to rural flight and migration. - Policy recommendations: - Support actions to keep young people in the countryside and build local development capacities. - Factor regional and urban dimensions into resource allocation. - Guide allocation by national development plan, regional plans, and the regional investment programming law currently being drafted. ### 5.1.8 Cultural adaptation and openness - Findings: - Limited success of past development strategies attributed to lack of attention to cultural values and historical lessons. - Burkina Faso is a mosaic of some sixty cultures. - Policy approach: - Promote conscious ownership of culture and traditions to socialize community members with their own values. - Channel cultural diversity into trade and cultural contacts and endogenous development. ### 5.1.9 Promoting new information and communication technologies - Findings: - New ICTs provide tools for political, administrative, economic, and local governance by increasing openness and reducing distances and time. - Policy stance: - Promote ICTs as supplements to poverty reduction strategies; recognize they complement but do not replace basic services (e.g., “E-mail cannot replace vaccines, and satellites cannot provide safe drinking water”). ### 5.1.10 Factoring in subregional integration - Findings: - Subregional integration in WAEMU and ECOWAS offers development benefits but entails risks and social costs for the poorest groups. - Truly free movement of people and goods is a prerequisite for promoting trade and investment within the Community. - Policy recommendations: - Strengthen accompanying regional solidarity measures to ensure cohesiveness and synergy between national and regional poverty reduction policies. ### 5.1.11 Promoting a new partnership with donors - Findings: - Success relies on a new partnership based on regular and open policy dialogue. - Policy framework: - Government defines development strategy and evaluation framework; technical and financial partners support implementation. - Donors give Government freedom in choice of policy instruments and pace/order of reforms after agreeing general objectives. - Improve coordination through effective application of the program approach and gradual shift from project aid to budgetary support. - Effective national leadership is essential. *Source: _cr05338 - 5.1 GUIDING PRINCIPLES* ### BOX 12: Marginal efficiency of capital ### BOX 12: Marginal efficiency of capital ### Marginal efficiency of capital — findings and implications - ICOR fell from 8 in 1994 to 5 in 1995 and 1997, indicating capital productivity stands at about 20 percent. - The ICOR level is described as typical of an uncompetitive environment that offers few incentives and is unattractive for private investment. - Burkina Faso receives large amounts of assistance to finance its public investment program, covering more than 70 percent of the investment each year on average. - Policy implication: entrepreneurs will invest only if the marginal efficiency of capital exceeds the rate of interest; if it is lower, there is no incentive to invest and the economy may tip into recession. ### Definition and decision rule - Marginal efficiency of capital: the expected return on a capital asset — income the user of capital expects to derive from sale of output during the useful life of the asset, net of current production costs. - Practically: the ratio between the present value of all expected returns and the present value of all planned expenditure. - Investment decision: entrepreneurs have an incentive to invest if marginal efficiency of capital > rate of interest (cost of borrowed capital). ### Recommended reforms to raise capital productivity and encourage investment - Step up structural reforms to increase capital productivity and encourage foreign investment. - Government plans to undertake inquiries, with partner support, to introduce measures enhancing the impact of assistance on economic growth. - Specific reform and action priorities: - Increase gross primary school enrollment ratios and literacy rates to boost overall productivity. - Develop technical teaching and vocational training. - Improve effectiveness of public investment by implementing conclusions of the study on reform of the Public Investment Program. - Speed up development of the capital market. ### Reducing factor costs (5.2.1.3.2) - Factor costs are fairly high; transport, water, and energy costs are the highest in the subregion. - Government reforms to lower costs: - Market liberalization. - Reduce unit labor costs by cutting social welfare contributions paid by employers in the modern sector. - Privatize existing structures to facilitate entry of new operators and injection of resources and technology. - Build Government capacity to regulate utility markets. - Additional measures: - Apply conclusions of the study on macroeconomic implications of business taxes on aggregate supply. - Facilitate completion of the competitiveness support and business development project (privatization, public service reform, business development). - Set up Burkina Faso Entrepreneurs Center. - Reduce administrative formalities for establishing new businesses from 8 to 4. - Continue regulation of recently liberalized sectors: energy and telecommunications. - Draw up comprehensive integrated strategy for national infrastructure and communication development plan (process started; stakeholders involved). ### Transaction costs and business climate (5.2.1.3.3) - Non-quantifiable transaction costs: delays in applications, bribes, inefficiency of justice system delaying dispute settlement — these implicit costs can discourage investment. - Government reforms and actions: - Entry into force of law on comprehensive reform of public administration; motivate staff of National Inspectorate General, General Finance Inspectorate, and technical inspectorates. - Strengthen courts to accelerate enforcement of judgments and enhance credibility. - Implement laws and regulations governing decentralization; train local elected officials. - Strengthen civil society’s role as counterweight to political power and support civil society initiatives to combat corruption. ### Support for productive sectors and rural development (5.2.1.4) - Government aims for average growth of 7 percent per year starting in 2004, based on increased public and private investment from official assistance and foreign/domestic private direct investment. - Agriculture: - Accounts for 35 percent of GDP on average; employs and provides income for some 80 percent of the population. - Accounts for more than 60 percent of export earnings and an average of 30 to 35 percent of spending under the public investment program. - Short-term growth drivers: more dynamic export crops (cotton, fruit and vegetables), manufacturing exports (food processing, leather, cotton spinning), mining (especially gold), trade, tourism, remittances. - Strategy emphasizes nontradables (staple grain crops) alongside export crops for poverty reduction: rural households devote 45 percent of increases in income to nontradable agricultural products and 22 percent to local nonagricultural products. - Grain production: average production surplus of 400,000 metric tons in a year with normal weather; production trend since 1984-86 showing a growth rate of some 5 percent per year. - Rural development strategy to 2015 priorities: intensify/diversify crops, livestock, fishing, forestry; strengthen food security information system; promote nutritional and environmental education; promote income-generating activities; revise food crisis alert and prevention system. ### Agricultural productivity and small farmer support - Government actions to ease constraints on total factor productivity: - Facilitate small farmers’ access to animal-drawn farm equipment and fertilizers via agricultural credit policy. - Shift to more mechanized and intensive agriculture relying on water management and irrigation. - Support for professional agricultural sector: - Create legal conditions for agricultural producers’ organizations (OPAs). - Make regional chambers of agriculture operational. - Train OPA members in literacy, management, and rural trades. - Create attractive climate for private initiative in infrastructure, local development, supplies, production, marketing. - Consolidate marketing system for agricultural inputs and products. - Implement regulatory framework promoting contract farming. ### Cereal grains (5.2.1.4.1.1) - Objectives: substantially increase return on assets and equity in grain production to contribute to food security and poverty reduction. - Strategy: enhance performance via favorable business environment, improved organization, more intense cropping, village land management, water management, improved storage/processing, logistical improvements, better marketing. ### Cotton (5.2.1.4.1.2) — performance, importance, constraints, and actions - Production increased from 406,000 metric tons in 2002/2003 to 480,604 tons in 2003/2004; 80 percent of fiber now classified in the top category. - Number of cotton growers estimated at 200,000 in 2002; growers derive 60 percent of farming income from cotton. - Cotton accounts for 60 to 70 percent of export proceeds in value terms. - Cotton sector contributed some CFAF 4 billion per year on average over the past three years. - Infrastructure: ten ginning plants with capacity in excess of 250,000 metric tons. - Strengths listed (verbatim): - Large areas of land suitable for cotton growing, especially in the new growing areas in the southwest, south, and east - Farmers’ increasing skills in cotton growing techniques - Well organized producers with cotton growers’ associations and unions - The improved performance of SOFITEX and the increase in its operating capacity with regard to collection (transport) and rapid payments to growers - Improvements to various services, including technical extension through the work of cotton correspondents - Consolidation of the cotton sector’s financial position (settlement of debt) - Substantial support from research units working on high-yield varieties - A determination to support the cotton sector at the highest level of government - Clear comparative advantage and strong earnings for growers - Positive externalities, such as increased grain production owing to the after-effects of the fertilizers used and of tilling work. - Constraints listed (verbatim): - Inadequate consideration given to the sustainable use of cotton growing land - Vulnerability of cotton plants to parasites, which requires strict adherence to the plant health treatment calendar - Rising input and equipment costs - Inadequate rural road network, especially in the new cotton growing areas in the south, east, and southwest. - Sector objectives and production strategy: - Maintain/amplify production growth while protecting against soil depletion and land degradation and preserving comparative advantages. - Production focus: increase cropping intensity via actions including improving growers’ technical skills; making inputs more available and improving quality; sharing advantages and risks more equitably; improving pest control; rebuilding confidence between partners. - Government option: enable growers to hold up to 30 percent stake in SOFITEX; interprofessional cotton agreement gives growers greater management voice. - Measures to enhance competitiveness: rationalize transport logistics at SOFITEX; establish two new companies in east and center. - Planned actions to reinforce ongoing initiatives (verbatim highlights): - Intensify production in traditional areas (west) and new areas (east, southeast, southwest). - Mechanize cultivation: current proportion of farmers using mechanized cultivation equipment is 37 percent, versus 68 percent in Mali. This proportion should reach at 75 percent, or even 100 percent by 2015. Special measures for motorized mechanized cultivation on larger farms. - Train growers in new technologies and farm management; avoid cotton monoculture. - Establish quality control system for inputs (seed, fertilizer, pesticides). - Increase ginning capacities; optimize seed cotton collection rounds; create incentives for new spinning plants; support research into new technologies; phase in interprofessional agreement giving growers a greater say. ### Fruits and vegetables (5.2.1.4.1.3) - Comparative advantages for export to coastal countries and Europe. - Dominant fruit products: mangoes, citrus fruit, bananas. - 2001/2002 crop year production: 80,000 metric tons of mangoes, 75,000 metric tons of citrus fruit, and 10,000 metric tons of bananas. - Vegetable production: six crops account for 92 percent of total production (tomatoes, onions, cabbage, eggplant, green beans, potatoes). - 2001/2002 crop year production: 17,715 metric tons of tomatoes, 33,500 metric tons of onions, 23,150 metric tons of cabbage, 7,000 metric tons of eggplant, 2,300 metric tons of green beans, and 1,400 metric tons of potatoes. - Challenges: seasonal concentration causing gluts and price drops; lack of support/advisory services hindering variety introduction and even production spread; privatization of Flex Faso removed adaptation of fruit-tree techniques; inadequate technical/logistical capacities leading to poor condition on arrival to markets. - Advantages: - Many storage dams with estimated potential for more than 500,000 hectares of irrigated land. - Favorable growing and weather conditions. - Strong domestic expertise in fruit and vegetable production. - Operational objectives: - Increase quantity and quality of production. - Build capacities of industry players. - Improve product processing to increase value added. - Improve marketing, freight, and airport services; ramp up rail and road marketing channels. - Operational strategy areas: more intensive cropping and technology transfer; trade promotion; strengthening companies and professional skills. - Implementation actions include adapting production techniques at testing centers and establishing specialized support and advisory services. ### Oilseeds (5.2.1.4.1.4) — targets and priorities - Current oilseeds: groundnuts, sesame, shea nuts, cashews, soybeans. - Medium-term production plan targets: - 60,000 metric tons of sesame - 100,000 metric tons of shea nuts - 450,000 metric tons of groundnuts - 10,000 metric tons of HPS groundnuts - 10,000 metric tons of cashews - Priorities: - Increase productivity and improve quality (focus on groundnut and sesame; improve shea nut quality via National Shea Nut Project results). - Improve processing of cultivated oilseeds and shea butter (standard finished product quality, packaging, equipment support). - Reinvigorate oilseed marketing (improve commercial quality, set up shea butter plant, control trade channels, improve organization). - Capacity building via special training programs. - Establish effective quality control and standardization system. - External opportunity: EU directive allowing up to 5 percent of vegetable fats other than cocoa in chocolate opens prospects for shea nut exports (verbatim as in source). ### Livestock (5.2.1.4.1.5) — importance, performance, objectives - Livestock accounts for slightly more than 10 percent of the country’s export earnings and is a major rural income source. - Policy timeline: policy paper adopted in 1997; livestock action plan and investment program in October 2000; grazing planning law passed November 2002. - Current productivity indicators: - Average carcass weights: 110 kg for cattle, 9 kg for sheep, and 8 kg for goats. - Average milk yield: 110 liters per 180-day lactation and per cow. - Observations: low productivity due to extensive grazing; live cattle exports have declined steadily since 1995 despite higher prices in Côte d’Ivoire and Ghana. - Government objectives to stimulate livestock development (verbatim highlights): - Increase productivity via genetics, feeding, healthcare, and rational herd management. - Achieve substantial growth by adapting to agricultural/ecological areas and appropriate production systems. - Improve and control quality and wholesomeness of animal products sold on markets. - Develop mixed farming and promote professional skills, particularly for women. - Implementation strategy focuses on: - Building a dairy industry to reduce imports and create jobs. - Promoting grazing areas through village land management with stakeholder involvement. - Increasing productivity via intensified feeding, genetic selection, and animal health. - Supporting skills development, improving market access through renovated livestock markets and refrigerated slaughterhouses. - Creating jobs and raising incomes via dairy product processing and small ruminant fattening. - Adapting support functions via capacity building and gradual Government withdrawal from productive sectors. - Continuing liberalization of export leather and hide sector. - Nine major programs cover these strategic areas (listed verbatim in source). ### Mining (5.2.1.4.2) — potential, projects, and government actions - Outlook 2004–2006 promising; mining code and regulatory framework revised to attract investors while protecting environment. - Promotion through mining promotion forums (“PROMIN”). - Table (projects and quantities as provided): - HIGH RIVER GOLD — Tarpako (gold) — Namentenga — 35 metric tons of gold metal — 250 jobs - SEMAFO — Mana (gold) — Mouhoun Balé — 25 metric tons of gold over more than 7 years of operation - ETRUSCAN (Managem) — Youga (gold) — Boulgou — 20 metric tons of gold over 5 years of operation — 290 jobs - OREZONE INC — Essakane (gold) — Oudalan — 22 metric tons of gold — 235 jobs - CLUFF MINING — Kalsaka (gold) — Yatenga — 8.178 metric tons of gold — 150 jobs - Total gold — 120 metric tons of gold - METOREX — Perkoa (zinc) — Sanguié — 6 million metric tons with 18 percent zinc — 300 jobs - Source: MMCE/DGMGC. - Government promotion actions: - Make geological maps and geophysical data covering 135,000 square kilometers available. - Set up a national earth sciences and environmental information system. - Review mining code and implementing provisions within subregional integration context. - Implement a new tax system for mining. - Artisanal mining actions: - Set up artisanal ore crushing and grinding plants. - Disseminate artisanal mining equipment. - Awareness training to reduce health, environmental, and safety hazards. ### Industry (5.2.1.4.3) — liberalization and private sector development - Reforms aimed to liberalize national economy and improve business climate. - Actions include bringing national laws into line with Organization for the Harmonization of Business Law in Africa, reducing application processing times, simplifying administrative formalities, setting up national competition and consumption commission and a competitiveness committee. - Corporate income tax rate cut from 45 percent to 35 percent; tax rate review launched to lower and simplify taxes further. - Privatization progress: preliminary program privatized 26 enterprises and liquidated 12 others; further privatizations planned (four more enterprises proposed). - Constraints: public enterprise sector accounts for some 20,000 jobs but is inadequately capitalized; private sector lacks international contacts, experience, and modern management methods. - Private sector development policy (July 2002) action areas: - Improve climate for private investment (upgrade legislation, standards, regulations; reform court system). - Continue privatization of public enterprises (telecommunications, IT, energy, water). - Strengthen private sector support institutions and business capacities (strengthen “trade point”; operationalize Burkina Faso Entrepreneurs’ Center; improve training). - Strengthen private sector’s role via periodic consultations and reinvigoration of Competitiveness Committee; set objectives in contract between Government and private sector. - Promote SMEs/SMIs and help operators identify niche markets for development and export. ### Trade (5.2.1.4.4) - Domestic policy: market liberalization, expand rural road network, rural electricity, rural telephone service, market information system, promote SMEs/SMIs — to support trade and agricultural production and balanced regional development. - Regional policy: develop logistics to export transport and related services; create inland container depots (dry ports); Bobo-Dioulasso road freight terminal cornerstone laid on July 16, 2004. - Promote tourism-related exports (hotels, restaurants, moneychangers, travel agencies). - International policy: continue advocacy for fairer trade given export composition (mainly agricultural); cotton highlighted as key to poverty reduction. ### Tourism (5.2.1.4.5) - Tourism contributes about CFAF 20 billion to the economy each year. - Government strategy: - Enhance synergies between culture and tourism (National Museum, traditional villages, monuments, historical sites). - Develop ecological heritage: create hunting grounds, build tourist camps, specialized tours (Pama and Arly reserves; Nahouri reserve). - Support and advise business operators; promote consultations between stakeholders; set up international tourism structure; promote access to credit. - Improve air service by seeking new charter companies and promoting “sea-to-Sahel” tours combining visits to Burkina Faso with Benin, Côte d’Ivoire, Togo, or Ghana. - Constraints: cost of transport, lack of charter flights, scarcity of accommodations. ### Remittances (5.2.1.4.6) - Historically important for balance of payments. - Government policy: focus on increasing emigrants’ incomes rather than number of emigrants to reinvigorate remittances; channel emigrants to high-income labor markets. - Planned actions: - Restructure High Council for Burkinabè Citizens Abroad: reduce Government role to increase flexibility; sign contracts setting objectives for placing workers in high-paid labor markets; encourage emigrant trade associations and economic linkages. - Provide education to at least the secondary level and job skills training in growth areas, such as information technology. - Long-term strategy based on expanding exports of goods rather than exporting human resources; requires improving human resources, reducing infrastructure costs, and opening the economy. ### Human resources capacity building (5.2.2.1) - Progress mixed across social sectors. - Education indicator: at start of the 2003/2004 school year, the gross enrollment ratio was up sharply to 52.25 percent, according to Ministry of Basic Education and Literacy (MEBA) statistics. - Health indicators: "The HIV/AIDS seroprevalence rate declined from 6.5 percent at end-2001 to" (text as provided in source; continuation not supplied). *Source: BOX 12: Marginal efficiency of capital — extracted from the provided IMF source content.* ### 4.2 percent in 2002 and 1.9 percent in 2003, but the situation with regard to HIV/AIDS, and ### _cr05338 - 4.2 percent in 2002 and 1.9 percent in 2003, but the situation with regard to HIV/AIDS, and ### Human development challenges and overview - Mortality and disease context: "4.2 percent in 2002 and 1.9 percent in 2003, but the situation with regard to HIV/AIDS, and all the different endemic and epidemic diseases, is still a cause for concern." - Progress noted: "Substantial progress has been made in the supply of safe drinking water, but the situation still needs to be improved, particularly in urban areas." - Identified social priorities to attain faster, broad-based growth and improve quality of life: (i) education, (ii) health, (iii) nutrition, (iv) HIV/AIDS, (v) safe drinking water, sanitation, and pollution, (vi) housing, and (vii) social protection. ### Education — strategy, targets, and key measures - Four principles guiding education system development up until 2010: - Extending basic education to include the first cycle of secondary education - Increasing the coverage of basic education while improving its quality - Balanced development of the education system so that it meets the needs of the economy in terms of quantity and quality - Developing a targeted, cohesive program providing adults, and women in particular, with the opportunity to obtain high quality literacy training - Education policy measures: - Reorganize and redefine basic education to encompass the first cycle of secondary education to consolidate attainment and promote autonomous learning. - By the end of 2004, submit a draft law on education programming that broadens the concept of basic education and makes it compulsory and free; the programming law will incorporate faster development of literacy training. - Launch a general discussion with local officials and social partners on the incentive system for teachers. - In the next ten years, ensure primary school teachers are hired at the local level on similar terms to community teachers in satellite schools; pay will vary between 3.5 and 5 times per capita GDP, depending on seniority. - Resulting average cost per teacher target: about 4.7 times the country’s per capita GDP in 2010, instead of 6.8 times in 2002. - Recruit some 29,000 teachers by 2010, representing a doubling of the current number of teachers. - Education programming law will contribute to effective implementation of local hiring of teachers. - Strengthen steering, management, supervision, evaluation, and monitoring skills to implement restructuring. - Practical actions for poorest and most vulnerable: - Continue integrated education approach combining formal and nonformal education to stimulate demand and make schools community-oriented. - Build more schools and teachers’ housing, especially in rural areas. - Systematically build latrines at all new schools. - Systematically provide water points (tubewells or large diameter wells) at schools. - Expand and intensify promotion of school canteens; invest, equip, and organize parents’ associations to make canteens self-managing. - Implement economic projects aimed at women to back up their training. - Authorize flexible school schedules, especially in rural areas. - Exempt annual tuition fees for parents of girls attending schools in the twenty provinces with the lowest enrollment ratios. - Continue policy of distributing free textbooks. - Draft regulations to make school compulsory and free by 2006. - Efficiency and effectiveness targets: - Increase proportion of pupils at CP1 level who reach CM2 from 60 percent to 75 percent by 2010. - Reduce proportion of pupils repeating primary grades from 18 percent to 10 percent. - Consider similar measures for secondary schools. - Monitoring and research: - Set up or stimulate a research and action, monitoring and evaluation structure to work on experimental teaching programs and impact, with technical and human resources built up. ### Literacy training - Rationale: Literacy is critical to poverty reduction, especially in rural areas where poverty and lack of capacities are most severe. - Ten-year plan actions for poorest areas: - Implement economic projects aimed at women to apply knowledge learned in literacy training centers. - Establish permanent literacy and training centers, along with nonformal basic education centers. - Incorporate literacy and training into services for health, education, credit, agricultural extension, etc. - Promote and develop post-literacy activities by producing and disseminating appropriate documents. - Continue and encourage private literacy initiatives by local or national groups and literacy through the Fund for Nonformal Education. - Effective implementation of the “faire-faire” approach. - Strengthen the National Fund for Nonformal Literacy Training. ### Higher education - Priority on basic education is intended to enhance equity and effectiveness and to increase the pool of potential applicants for higher education. - Parallel development at higher levels is not excluded. - Emphasis on continuous improvements in human resources to stimulate creativity and competitiveness and to create synergy across education levels to optimize performance, quality, and return on investment. ### Health sector priorities, access, and measures - Government actions following 2000 review: apply sustainable solutions identified in the National Health Development Plan for 2001–2010; improve access to healthcare services and essential drugs for the poor; implement a plan to combat major diseases. - Three specific poverty-reduction objectives in health: - (i) Improving health indicators by targeting services for the poor - (ii) Limiting healthcare costs for households - (iii) Involving users and the poorest communities in health decision-making - Priority actions for the poorest: - Implement disease-fighting program providing a healthcare package corresponding to priority programs: (i) Expanded Immunization Program (PEV), (ii) dracontiasis (Guinea worm) eradication, (iii) leprosy eradication, (iv) reproductive health promotion, (v) fighting cancer, (vi) child health promotion (through comprehensive action to fight childhood disease and malnutrition), (vii) fighting tuberculosis, (viii) fighting sexually transmitted infections, HIV/AIDS, and malaria, (ix) covering the cost of antiretroviral drugs. - Continue epidemiological monitoring. - Standardize infrastructures and provide suitable equipment to make healthcare facilities accessible to isolated groups. - Optimize human resources in rural areas by: (i) establishing a human resources development policy for better rural service, (ii) developing regional systems for hiring, contracting, and compensation for rural health officers, (iii) ensuring presence of physicians trained in basic surgery in districts without access to regional hospitals and presence of surgeons and gynecologists in districts with access to regional hospitals. - Continue microplanning and monitoring in health and social promotion centers using key objectives (immunization, childhood disease care, fighting malaria, STIs and HIV/AIDS, reproductive health, micronutrients) and consolidate monitoring at local, regional and national level. - Continue the fight against STIs and HIV/AIDS by: (i) building diagnosis and treatment capacities for AIDS patients’ opportunistic infections in local healthcare facilities, (ii) developing testing and advisory services at every level of the health system, (iii) developing alternatives to hospitalization. - Promote a contractual approach for promotional, preventive, and curative activities. - Access to basic care measures for poorest groups: - Make basic drugs, vaccines, and supplies available from health and social promotion centers. - Increase availability of resources for rapid HIV testing at district hospitals. - Increase the number of outpatient care centers. - Continue to allocate budget resources for health districts and establish a system for distributing these resources to district healthcare facilities. - Step up measures to reduce user prices for preventive care (immunization, prenatal consultations, childbirth, mosquito netting treatment) and for children up to age five through flexible pricing and subsidies. - Continue to provide free care for tuberculosis, dracontiasis, and leprosy. - Develop local solidarity systems by creating a legal framework for healthcare funds and other forms of healthcare cost sharing. - Promote traditional medicine and remedies as a subsector of private medical care. - User and community involvement: - Increase skills of management committees (COGES) in microplanning and monitoring priority activities. - Promote greater representation for women and young people on management committees. - Develop community-based strategies for protein-calorie malnutrition, testing, monitoring and eradication of endemic diseases such as dracontiasis, tuberculosis, and leprosy. - Clearly define procedures for using resources generated by cost recovery at the health district level. ### Nutrition programs - Planned introductions: - Nutritional monitoring programs - Mapping food insecurity and vulnerability - Nutrition education - Reinforcing and restructuring specialized centers ### Fighting HIV/AIDS — priorities and programs (2004–2006) - Priorities for 2004-2006: - Strengthen the multisector, decentralized, and participatory approach to combating HIV/AIDS - Promote voluntary and anonymous testing - Strengthen medical care of people living with HIV/AIDS (PLWHA) - Improve overall social and economic care of people infected or affected by HIV/AIDS - Incorporate the fight against HIV/AIDS into all development projects and programs - Implementation actions to improve affordability and geographic availability of treatments: - Request to the Global Fund to Fight AIDS, Tuberculosis, and Malaria for antiretroviral drug subsidies and extension of the Prevention of Mother-to-Child Transmission program - The ESTHER project for partnerships between hospitals - The World Bank initiative for access to antiretroviral drugs - The WHO/OPEC initiative - Actions by other partners, including NGOs, associations, and private sector entities - Capacity building emphasis: - Build technical capacities and skills of players, with particular emphasis on patient care capacity through healthcare facilities and involvement of associations with medical personnel. - Community and decentralization actions: - Involve traditional and religious leaders to reduce social and cultural prejudices and foster changes in community standards and values leading to behavior change. - Speed up decentralization by setting up Village AIDS Committees to cover a maximum number of villages and stimulate village microprojects to fight AIDS. *Italic: Content derived from the provided IMF PDF chapter/section text.* ### 7.8 percent and 33.6 percent respectively, with a relative preponderance of HIV1. According to UNAIDS, ### _cr05338 - 7.8 percent and 33.6 percent respectively, with a relative preponderance of HIV1. According to UNAIDS, ### HIV/AIDS: prevalence, socioeconomic impact, and national response - Epidemiological findings and prevalence - Burkina Faso had 370,000 people living with HIV/AIDS in 1997. - Seroprevalence ratio in 1997: 7.17 percent (second most affected country in West Africa). - Seroprevalence ratio estimated at 6.5 percent at the end of 2001. - Relative preponderance of HIV1. - Age groups most affected: adults aged 29 to 49; girls and young women aged 13 to 24 have infection rates 5 to 8 times higher than boys and young men in the same age range. - Socioeconomic impacts and cost estimates - A 1994 World Bank study by L. Brenzel concluded total cost of HIV/AIDS at $8.5 million per year for a seroprevalence ratio of 3 percent. - AIDS caused a 5-year decline in life expectancy at birth, wiping out one-fifth of progress made since 1950. - Potential fiscal pressure: could result in a 33-to-43-percent increase in Government spending on health. - Twofold and threefold increases in death rates for workers, managers, and public-service and private sector employees, with consequences for higher labor costs and reduced quality/quantity of services. - FAO studies (1997): 20 percent of rural families reduced the size of their farms or abandoned them because of AIDS, increasing food insecurity and poverty. - Policy and institutional response history - 1987: Government recognized first AIDS cases and set up a technical committee (supported by WHO/GPA and UNAIDS). - Phase 1 (1987 to 1995): development of a national program and implementation of three short- and medium-term action plans. - Phase 2 (1996 to 1998): Government increased commitment and launched a population and AIDS project (PPLS) with IDA funding. - 1998: Strategic planning process with UNAIDS support developed a strategic framework for 2001 to 2005; adopted by Government in May 2001. - Strategic framework: national policy document calling for a multisectoral approach to fighting HIV/AIDS and STIs; sets out four intervention areas and priority action areas. - Coordination, stakeholders, and implementation mechanisms - Coordinating bodies: ministerial AIDS committees; AIDS committees in businesses and large firms; decentralized AIDS committees at provincial, departmental, and municipal level; village AIDS committees; municipal sector AIDS committees. - Stakeholder involvement: community networks and coordinating groups of associations and NGOs; traditional and religious organizations. - Implementation requirement: development of sector action plans based on situation analysis and operational responses. ### Promoting access to water for the poor - Targets and infrastructure goals - Increase supply of safe drinking water by creating 3,000 modern water points, primarily tubewells, to be created at a pace of some 1,000 per year. - Rehabilitate another 500 existing water points. - Provide secondary towns with simplified drinking water supply systems. - Principles and institutional reforms - Involve users in infrastructure building and management. - Correct regional disparities with regard to safe drinking water. - Government plan defines new approaches in three areas: - (i) Urban drinking water supplies - Enforcement of water supply quality standards. - Systematic treatment, before distribution, of surface water intended for drinking. - Short-term: build administrative and financial capacity of the company responsible for distribution. - Longer term: improve productivity with cost-effectiveness for equipment and management. - Maintain performance contracts between Government and public company. - Consider livestock needs on urban outskirts. - (ii) Semi-urban and secondary towns - Create an attractive environment for private sector operators to manage facilities. - Establish performance contracts for each private operator managing public drinking water supply. - Promote rural electricity supplies and use of solar electricity generating equipment. - Study technological options for stable, sustainable supplies and low operating costs; combine solutions to meet supply needs. - Continue standalone water sources or simplified systems for secondary towns. - (iii) Rural areas - Meet drinking water needs more fully; prioritize renovation and improvement of existing sources. - Harmonize users’ contribution for initial investment; aim for users to cover pump maintenance and replacement. - Promote solar electricity and local manufacture of certain pump parts. - Encourage interconnections between neighboring areas via simple systems when viable; develop large-capacity structures. - Involve users at every stage of facility planning and building. ### Improving living conditions and housing for the poor - Urbanization and housing challenge - Urban population share rose from 3.8 percent in 1950 to 16.5 percent in 2000. - Main housing policy thrusts: - Development planning and control in urban centers. - Harmonious development and management of urban areas. - Establish system for low-cost and public housing. - Draft and enforce urban planning and housing regulations. - Promote local construction materials. - Set up a specialized housing institution. - Planned institutional and regulatory actions - Reduce regional and social inequalities to enhance equity. - Improve living conditions for the poor and enhance land tenure security. - Actions include drafting an urban planning and construction code; establishing blueprints for urban development in provincial and departmental capitals that have attained a certain degree of development; establishing a housing bank; drafting and implementing an urban sanitation plan and promoting a sanitation culture. ### Providing social protection for the poor - Strategic priority areas due to social exclusion exacerbated by HIV/AIDS and massive returns of citizens from abroad: - Strengthen action to fight all forms of social exclusion. - Reinvigorate actions to promote solidarity. - Substantially increase incomes of the poorest. - Promote health microinsurance for the poorest and indigent population groups. - Five priority areas subdivided into strategic areas: - (i) Protecting and promoting children and adolescents: comprehensive early childhood development; promoting children’s rights; protecting children at risk. - (ii) Protecting and promoting families: socioeconomic promotion of families; promoting family rights. - (iii) Promoting solidarity and protection of specific groups: strengthen solidarity systems; protection and socioeconomic promotion of specific groups; develop systems for integration of displaced persons. - (iv) Developing staff skills and institutional capacity building: initial and continuing staff training; establishing infrastructures and facilities; adopting legislation and regulations to set standards. - (v) Creating healthcare microinsurance: promotion campaigns; establishing a database; establishing a support unit. - Implementation approach: cohesive plans and programs developed through consultative and participatory processes. ### Pillar 3: Equitably increasing employment and income-generating activities for the poor — agriculture and rural development - Role of agriculture - Agriculture is the leading source of jobs; faster agricultural growth produces: - Structural effect: increased government revenues from cash crop export earnings and reduced food imports. - Direct effect: immediate increase in rural producers’ average incomes via multiplier effects. - Indirect effect: positive externalities—development of nonagricultural activities and new nonfarm jobs. - Given poverty profile: 92.1 percent of total poverty occurring in rural areas. - Food crop farmers are the poorest: 3 out of 4 poor are food crop farmers. - Seven strategic goals for agricultural programs - (i) Reducing vulnerability of agricultural activity. - (ii) More intensive and more modern farming. - (iii) Raising and diversifying rural incomes. - (iv) Reducing isolation of rural areas. - (v) Supporting producer associations and collective infrastructures. - (vi) Improving living and working conditions for rural women. - (vii) Promoting jobs and vocational training. - Reducing vulnerability of agricultural activity - Soil fertility management - Restore, conserve, manage land and water resources; restore soil fertility and protect/renovate ground cover. - Actions: mixed farming; spread organic manure via expanding “manure pit” operations; use agricultural inputs and water/soil conservation technologies. - Zaï technique, stone cordons, organic manure shown to have positive impact on agricultural productivity. - Fight brush fires; encourage planting/reforestation (“One Village, One Forest” and “One Department, One Forest”). - Promoting rural water systems - Rainfall trend: diminished steadily over last forty years; lowering of water table; evaporation and increased need for water. - Irrigation actions: - Renovate and maintain existing irrigation systems (dams, weirs, bunds); develop plains. - Develop small irrigated areas from tubewells for women and youth groups. - Empower stakeholders: appropriate pricing and fee collection on irrigated land. - Develop bottomlands and small surface water systems for off-season crops. - Use labor-intensive approaches in building water systems. - Operation “Saaga”: Government should set aside resources to master cloud-seeding technology, expand coverage, and ensure program longevity while ensuring sustainable environmental management. - Stock watering systems: build wells and reservoirs for livestock; empower local authorities in management; rely on surface water collection pending water table improvements; minimize environmental impact per PAN/LCD. - Land access and tenure security - Pressure on land increasing due to population growth, migration, and livestock herding. - Legal framework includes Agrarian and Land Tenure Reorganization and codes for Environment, Forestry, Mining, Water, and Livestock Planning Law. - Persistent access gaps for poor groups, especially women. - Government actions: - Draft and adopt implementing legislation for Agrarian and Land Tenure Reorganization (RAF). - Develop communications strategy to publicize RAF and regulatory instruments. - Implement measures to promote access to land for women. - Develop operational strategy to enhance rural land tenure security using pilot project experience (National Village Land Management Program, Ganzourgou Rural Land Plan, Rural Land Registry Project). - More intensive and modern farming - Agricultural research and extension - Develop technology packages tailored to crops and socioeconomic conditions; emphasize extension and dissemination. - Crop production: find improved, high-yield varieties suited to conditions; promote seeds with short growing periods. - Increase value of output via dissemination of processing techniques that preserve quality. - Livestock production - Nearly 87 percent of animal feed currently provided by natural fodder. - Encourage cattle feed production to support genetic improvement, fattening and breeding near urban outskirts. - Extend artificial insemination and genetic improvement technologies to the poorest breeders. - Forestry and fisheries - Emphasize improved, fast-growing, high-yield shea tree varieties. - Continue fish stocking and develop local fish production; fight fish diseases. - Access to agricultural equipment and inputs - Current statistics: proportion of farms with plows and draft animals is under 27 percent; absolute farming technology adoption rate stands at 52 percent. - Use of equipment shown to increase agricultural productivity and reduce poverty by about 10 percent. - Measures: - Improve use of mineral amendments (Burkina phosphate combined with sulfuric acid (Perkoa zinc), dolomite) and organic manure from urban and agro-industrial waste. - Make production and transport equipment (plows, carts, processing machines) more affordable. - Distribute post-harvest machines (threshers, huskers). - Make low-cost preservation and processing technologies available. - Facilitate women’s access to machinery and inputs. - Increasing and diversifying rural incomes - Improving access to credit - Community credit penetration goal: extend decentralized financial systems from current penetration rates of 10 to 15 percent; build operational capacities via refinancing systems and guarantee funds. - Special attention to financing needs and technology for food crop farmers (poorest and most vulnerable). - Extending money-based economy and market access - Encourage production for local/urban markets, small-scale livestock and off-season crops, and export crops for subregion (grain, vegetables, fruit). - Strengthen Small-Scale Village Irrigation Program to improve food security and create dry-season rural jobs. - Encourage remunerative activities: livestock fattening; minidairies (mostly run by women); leather and hide crafts; fish farming; small-scale forestry. - Competitiveness of cash crops - Encourage competitiveness improvements in cotton, oilseed, fruit and vegetable, and leather and hide sectors to support modernization financing needs. - Promoting income-generating activities and self-employment - Identify and implement community public-interest projects: labor-intensive public works (rural roads, agricultural facilities, housing, sanitation). - Support private sector initiatives in agro-industry, small-scale livestock, off-season crops, urban small-scale services, arts and crafts. - Promote savings and loan systems meeting needs of vulnerable groups. - Implement support systems for new jobs for unskilled workers and unemployed school-leavers, especially in urban areas. - Reducing isolation of rural areas: infrastructure for market integration - Rural road program - Emphasize labor-intensive construction to create temporary jobs and stem rural flight. - Promote intermediate transport means: handcarts, animal-drawn carts, bicycles, donkeys. - Strategic pillars: central-local government synergy; population involvement for maintenance culture; cost sharing between central government, local governments, and users. - Rural electrification program - Rural electrification promotes processing, preservation, water pumping, irrigation, health and education services, and local governance. - Strategies: - Adopt low-cost solutions with potential for future expansion and possible grid connection; promote renewable energy in sparsely populated areas. - Maintain regional balance in supply selection; prioritize administrative centers. - Encourage private sector, NGO, and local government involvement under fair competition (including tax terms). - Establish specialized institutions to finance and supervise the electricity sector; make Electrification Fund operational; adapt financial products (banks, Decentralized Financing System) to sector needs. - Rural telephone service - Extend telephone service to departmental seats and major towns with support of Universal Service Access Fund. - Develop community telecommunications centers as universal service access points and gateways to new information and communications technologies. - Expansion is critical to reduce distances and enhance security by enabling rapid contact with security forces. - Support for producers’ associations - Emergence of independent umbrella organizations following Government withdrawal from productive sectors. - Existing network: 30,515 grassroots farmers’ organizations and seven nationwide federations. - Need for supervisory support and capacity building to become effective partners in sector actions. - Improving living and working conditions for rural women - Key measures: - Capacity building through education, literacy programs, and training for modern farming techniques and microenterprise management. - Reduce women’s workload to free time for productive activities. - Market support for activities (shea nuts, néré, market gardening). - Promote women entrepreneurs and small processing plants with suitable low-cost technologies. - Increase women’s access to land and encourage applications for irrigation development and irrigated land. - Capacity building for women’s financing structures to increase credit volumes. - Facilitate acquisition of intermediate transport (bicycles, carts). - Increase women’s involvement in decision-making bodies of trade associations and local development through Village Land Management Committees. - Promoting jobs and vocational training - Address restricted access to employment for youth and women; existing initiatives include Employment Promotion Support Fund and Informal Sector Support Fund. - Government investments: renovation of vocational assessment and training centers to train youth in automobile repair, electricity, metalwork, masonry, and leatherwork. - 2001 strategy paper on jobs and vocational training: (i) establish favorable climate for job creation; (ii) develop vocational training and apprenticeships; (iii) strengthen operational capacities of promoting bodies. - Collaboration required with employer and labor organizations and support from the National Vocational Training Support Fund. *Source: IMF country report content provided in the supplied PDF excerpt.* ### BOX 14: Political visions and strategies ### BOX 14: Political visions and strategies ### Overview - National long-term outlook "Burkina 2025" and the National Ethics Committee report (2003) and the Burkinabè survey of household living conditions (July 2003) underpin the emphasis on good governance. - Government introduced a National Good Governance Plan for the period 2004-2008 to consolidate systems, principles, and practices of good governance, improve public service spirit, and use national resources effectively to foster broad-based social development. - Government action focuses on four governance areas: (i) democratic governance (including public security and promotion of human rights), (ii) administrative governance, (iii) economic governance, and (iv) local governance. ### Democratic governance (including public security and promotion of human rights) - Citizens’ vision for central government role: provide education, healthcare, defense, uphold citizens’ rights and interests, act as supervisor and arbitrator, ensure transparency in public affairs. - Citizens’ vision for 2025: a democracy enjoying political stability, peace, and social harmony. - General government and decentralization: citizens propose four strategic areas for successful decentralization: - Proper use of local and national resources: proposed primarily by citizens in the west, center-west and center. - Consultations between local and central partners for greater awareness and empowerment: proposed primarily by citizens in the north, center-west and center. - Strategy to build basic infrastructures in villages and to step up decentralization: proposed primarily by citizens in the center-north, Boucle du Mouhoun, and center‑east. - Establishing a modern republican government: proposed primarily by citizens in the north and center‑west, and by the majority of experts surveyed. - Justice aspirations: citizens want a justice system that is credible, equitable, independent, transparent, competent, and accessible to all. Major citizen proposals: - Fight corruption and enforce compliance with professional codes of conduct (majority). - Improve physical and financial access, judges’ working conditions, and provide civic education (to a lesser extent). - Experts propose eliminating politics from the justice system. - Defense and security aspiration: guarantee of internal and external security, with a politically neutral army serving peace and justice. - Government priorities to ensure continuity and stability of the democratic process started in 1991: - Respect for human dignity and basic human rights via a plan of action covering the period 2002-2006 with six priorities: (i) human rights education, (ii) strengthening the legal framework for human rights, (iii) adapting national laws to international treaties and agreements, (iv) promoting/protecting/consolidating civil and political rights, (v) promoting/protecting/consolidating economic, social, and cultural rights, (vi) promoting and protecting rights of special groups (women, children, the disabled, other vulnerable or poor groups). A strategy to operationalize these priorities was defined in conjunction with all partners in July 2003. - Strengthening the justice system with reforms to ensure independence and effectiveness; remaining problems noted. - Institutional constraints and justice system statistics: - Only 300 judges for a population of 12 million. - Only eleven high courts of the planned 45 are currently operational. - Only 100 of the 350 planned departmental courts are currently operational. - Justice access issues: fees beyond means of some population segments; many defendants unaware of their rights; shortages of funds, equipment, technology, and information; insufficient use of information and communications technologies. - National Justice System Reform Plan of Action objectives: - (i) Strengthening institutions participating in the justice system. - (ii) Providing greater access to the justice system. - (iii) Making the justice system more effective. - PADEG (Program to Support Consolidation of the Democratic Process, the Rule of Law, and Good Governance) supports education/documentation, a legal database, court and prison infrastructure, communications and logistics. - Further planned actions: - Strengthen capacities of the Constitutional Council and legal safeguards for its members. - Create a court of arbitration. - Continue efforts to open more courts throughout the country. - Set up a family law court. - Attenuate complexity of the law by drafting a code of established law, compiling case law reports, distributing brochures/guides in lay terms, translating important legislation into national languages, and disseminating law through all appropriate channels including a legal website with periodic updates. - Public security initiatives: - Plan to fight insecurity adopted in October 2001 with short-, medium-, and long-term implementation to increase mobility and intervention capacities of security forces and expand security presence in rural and urban areas. - High authority for control of arms imports and usage established in January 2001. - National commission to fight proliferation of light weapons established in April 2001. ### Administrative governance - Reforms constrained by: - Lack of implementing instruments for general government reform legislation. - Inadequate human resources management and lack of human resources management planning. - Lack of integrity among many civil servants. - Inadequate motivation and lack of compliance with merit-based promotion principles. - Lack of rigor in developing and using new management tools (activity programs, assignment letters, performance-based contracts, management indicators, procedural manuals, activity reports). - Priorities for implementing comprehensive general government reform: - Standard-setting and rule-making to enhance relevance and cohesiveness of central government reform and reorganization. - Information, awareness-raising, education, and training to support stakeholder buy-in. - Actions to improve service quality and instill a genuine public service culture. - Actions to enhance integrity of public servants via codes of conduct and ethics, capacity building for inspection bodies, and fighting corruption, fraud, and abuse. ### Economic governance - Emphasis on measuring the governance system by its ability to manage material and human resources sustainably and to anticipate the future, given widespread poverty and shortages. - Government emphasis areas: - Build general government capacities to formulate action programs based on government policies. - Build capacities of other powers (legislative, judiciary), civil society, and interest groups to monitor, supervise, and assess government policies. - Strengthen fiscal management through: - (i) strengthening capacities of structures responsible for fiscal management, - (ii) improving legal framework for fiscal management and enforcement, - (iii) improving quality and transparency of the Budget Law, - (iv) strengthening monitoring of budget execution and compliance with end-of-year requirements, - (v) extending fiscal decentralization, - (vi) improving management of specific spending items, - (vii) improving quality and sustainability of the computerization process in ministries responsible for economy and finance, - (viii) strengthening budget management control. - Instill culture of results measurement and assessment based on National Statistics and Demography Institute and National Observatory of Poverty and Sustainable Human Development to monitor PRSP implementation. - Private sector priorities: - Develop more aggressive export undertakings producing textiles, meat, leather and hides, and agricultural and livestock products. - Enhance private sector contribution in services: hotels, tourism, international conferences, arts and crafts. - Capacity building for businesses via the Chamber of Commerce, Industry, and Crafts and the Entrepreneurs Center to provide training and involve private operators in discussions and trade talks. - Donor coordination priorities: - Align assistance from donors with PRSP priorities. - Synchronize budget timetable with disbursements of development assistance to reduce budget uncertainties and enhance financial planning. - Simplify monitoring and progress reports using joint analyses to harmonize approaches to reforms, assistance procedures, and progress indicators. - Combating corruption measures taken: - Reviewed laws and regulations on government procurement in 2002 and 2003. - Strengthened objectives and working resources of inspection bodies: National Inspectorate General, General Finance Inspectorate, and technical inspectorates of ministries. - High Authority coordinating the fight against corruption to set out an action program to develop partnership initiatives with civil society and private sector organizations. - Government acknowledges civil society’s role in monitoring corruption, financial crime, and tax evasion and will encourage and back civil society initiatives. ### Local governance - Decentralization history and turning point: - Decentralization started in 1993. - Creation of 13 administrative regions (also decentralized territorial government units) in 2001 marked a major turning point. - Problems revealed by urban municipality experience: - Inadequate local capacities for strategic planning, consensus building, operational management, and regional planning. - Uncertainty about availability of resources and decentralized authorities’ effective control over them; decentralized units’ inability to raise sufficient resources exacerbated by widespread poverty and weak purchasing power. - Laws, regulations, and some centralized practices still prevent local governments from full partnership in national development. - Decentralized capacities and structures too weak to support the decentralization process. - Local government bodies and structures not yet completely open to participation by civil society and the private sector. - Policy responses: - Transfer of powers and resources and local capacity building policies are intended to eliminate most constraints; division of powers, ways, and means being set out in policy laws and regulations on decentralization. - Provisions under consideration: - (i) Subsidiarity principle: central government intervenes only if task cannot be performed satisfactorily at lower level. - (ii) Clustering in authority blocs of responsibilities to be transferred. - (iii) Simultaneous transfers of responsibilities and resources. - (iv) Possibility of temporary or permanent transfers of staff handling transferred powers, and transfers of buildings and equipment. - (v) An arbitration commission to assess responsibilities and resources to be transferred. - (vi) Compliance by local governments with national defense obligations. - Government will ensure decentralized units’ viability through capacity building and maintaining optimum sizes for each category of government unit in terms of population, resources, and other factors. - 2003 actions: - Government drafted a strategy paper for implementing decentralization with goals: (i) speeding up decentralization, (ii) mobilizing adequate resources, (iii) capacity building, (iv) coordination of stakeholders. - Eight strategic areas identified: - (i) Completing the institutional framework - (ii) Completing deconcentration in keeping with the central government’s new role - (iii) Transferring responsibilities and resources - (iv) Financing decentralization - (v) Capacity building for stakeholders - (vi) Long-term decentralization planning - (vii) Consultations and coordination - (viii) Information, communication, and social mobilization ### Key macroeconomic figures (contextual closing paragraph) - After GDP expanded in real terms by 6.8 percent in 2001 and 4.6 percent in 2002, economic growth in 2003 came to 8.0 percent. - Relative contribution of sectors to GDP at market price: tertiary sector 41.3 percent, primary sector 40.7 percent. _Source: Long-term national study “Burkina 2025,” Surveys of national aspirations (from the general summary); IMF country report text provided._ ### 18.0 percent for the secondary sector. ### _cr05338 - 18.0 percent for the secondary sector. ### Poverty status and strategic implications - The status of poverty in 2003 confirms the necessity for the Government and all its partners to continue efforts to consolidate the foundations for stronger economic growth centering on job creation and poverty reduction. - Success hinges on adoption of a competitive strategy for the national economy and refocusing economic policies toward better targeted actions to guarantee a better impact on beneficiary populations. ### Overall growth outlook (2004-2006) - GDP growth is projected to follow the same trend as before, i.e. an average growth rate of 6.4 percent per year. - Growth will be driven mainly by the tertiary and secondary sectors, while the primary sector will continue to buttress economic growth during 2004-2006. - GDP growth rates: - 2004: 6.0 percent - 2005: 6.5 percent - 2006: 6.8 percent - Average annual rate (2004-2006): 6.43 percent ### Primary sector projections - Cereal production assumptions: favorable rainfall conditions, continuation of Operation Saaga, anticipated effects of small-scale village irrigation projects. - Average rate of growth in cereal output: at least 5 percent during 2004-2006. - Cotton: - Growth rate from 2005 onward: 6.6 percent - Projected output for 2004: 600,000 metric tons - Producer prices: stabilize at around CFAF 174 per kilogram - Drawback: CFAF 10 per kilogram in 2004; CFAF 25 per kilogram in 2005 - Area planted in cotton: increase by 6.6 percent over the entire period (attributed to two new cotton companies: Société Cotonnière du Gourma and Faso Coton) - Other food products growth assumptions: - Cowpeas and voandzou: 4.5 percent - Yams: 2.2 percent - Sweet potatoes: 4.9 percent - Cassava: 5.0 percent - Livestock output projections: - Cattle: 4.8 percent - Small ruminants: 3.1 percent ### Secondary sector projections - Projected growth in added value: 4.1 percent in 2004. - By subsector: - Manufacturing industries: 8 percent (attributable to manufacturing performance) - Construction and public works: 6.3 percent in 2004; projected growth in added value of construction and public works: 7.3 percent in 2005 and 11.3 percent in 2006. - Drivers: expansion of modern construction and public works due in part to activities of the ZACA project and road asphalting projects beginning in early 2004 and continuing through 2005 and 2006. - Government policy: develop mining potential through private capital; incentives instituted in 2003; expected opening of industrial mines (Youga, Taparko, and Kalsaka projects) during 2004-2006. ### Tertiary sector projections - Average growth rate over the period: 6.9 percent. - Sectoral drivers: - Expansion of services in telecommunications and road transport due to implementation of the second phase of the sectoral transport program (PST2) and revitalization of interurban transport. - Promotional activities in culture, the arts, and tourism: charter flight service, development of tourist sites, opening access roads, construction of lodging units. - Projected growth rates: - 2005: 6.6 percent - 2006: 7.8 percent ### Sectoral growth and contributions (selected figures from Tables) - Table 15: Trends in sectoral growth during 2001-2006 (selected entries) - Primary sector: 2001 15.0; 2002 2.4; 2003 10.8; 2004 5.2; 2005 4.2; 2006 4.5 - Secondary sector: 2001 0.4; 2002 14.1; 2003 10.4; 2004 4.1; 2005 7.0; 2006 10.1 - Manufacturing (row entries across years visible in table): 11.4 3.9 7.5 9.7 (table formatting preserved as in source) - Construction and public works: -0.5 8.3 7.4 4.6 4.6 12.2 - Tertiary sector: 2001 2.4; 2002 3.7; 2003 5.5; 2004 3.8; 2005 7.7; 2006 7.5 - GDP at market price: 2001 6.8; 2002 4.6; 2003 8.0; 2004 6.0; 2005 6.5; 2006 6.8 - Table 16: Sectoral contributions (%) to GDP growth (selected entries) - Primary sector contributions: 2000 -1.2; 2001 5.4; 2002 0.9; 2003 4.1; 2004 2.0; 2005 1.6; 2006 1.7 - Secondary sector contributions: 2000 1.2; 2001 0.1; 2002 2.2; 2003 1.7; 2004 0.7; 2005 1.2; 2006 1.7 - Tertiary sector contributions: 2000 2.5; 2001 1.0; 2002 1.5; 2003 2.2; 2004 1.5; 2005 3.0; 2006 2.9 - GDP (current CFAF billion): 2000 1,848.4; 2001 2,090.4; 2002 2,279.9; 2003 2,478; 2004 2,805; 2005 3,123; 2006 3,450 - GDP (1985 CFAF billion): 2000 1,383.8; 2001 1,477.3; 2002 1,545.1; 2003 1,669; 2004 1,768; 2005 1,884; 2006 2,011 - WAEMU comparable GDP value (%): 2000 1.6; 2001 6.8; 2002 4.6; 2003 8.0; 2004 6.0; 2005 6.5; 2006 6.8 - Inflation rate (%): 2000 -0.3; 2001 4.9; 2002 2.3; 2003 2.0; 2004 -0.5; 2005 2.6; 2006 3 ### Inflation outlook and external accounts - Growth would be accompanied by effective control of the general level of prices: increasing at an annual average rate of 1.7 percent. - Controlled inflation drivers: major increase in cereal output achieved in 2003 and expected over 2004-2006; sound monetary policy management; possible stabilization assumptions: - Price of a barrel of oil at US$25 - Dollar exchange rate at CFAF 610 - External accounts: - Trade deficit projected to drop from CFAF 232.8 billion in 2003 to CFAF 201.8 billion in 2004. - Improvement in 2004 attributable to increased exports, particularly cotton and livestock products, whose added value would increase by 37.7 percent and 36.5 percent, respectively. ### Budget guidelines and public finances (2004-2006) - Government financial operations projected over 2004-2006 are consistent with WAEMU convergence criteria and Bretton Woods institutions' objectives. - Revenue and grants (CFAF, selected years): - 2001: 373.6 - 2002: 394.4 - 2003: 434.3 - 2004: 471.7 (Est.) - 2005: 538.2 (Proj.) - 2006: 592.2 (Proj.) - Revenue (CFAF): - 2003: 301.0 - 2004: 347.3 - 2005: 398.2 - 2006: 447.2 - Tax receipts: - 2003: CFAF 270.1 billion - 2004: CFAF 321.0 billion (increase of 18.8 percent over 2003) - 2005: CFAF 366.8 billion - 2006: CFAF 415.0 billion - Tax/GDP ratio: 2003 10.9 percent; 2004 11.4 percent; 2005 11.7 percent; 2006 12.0 percent - Grants (CFAF): - 2001: 145.6 - 2002: 134.9 - 2003: 133.3 - 2004: 124.4 - 2005: 140.0 - 2006: 145.0 - Project grants (PIP): 2001 112.5; 2002 105.0; 2003 61.8; 2004 84.8; 2005 100.0; 2006 105.0 - Expenditures and net lending (CFAF): - 2003: 507.2 - 2004: 605.3 - 2005: 680.9 - 2006: 738.2 - Current expenditure (CFAF) and components (2003-2006): - Current expenditure: 2003 259.0; 2004 307.3; 2005 332.1; 2006 352.5 - Wages and salaries: 2003 112.0; 2004 118.1; 2005 126.4; 2006 135.2 - Goods and services: 2003 58.8; 2004 70.0; 2005 87.5; 2006 91.9 - Interest due: 2003 16.8; 2004 21.6; 2005 14.2; 2006 13.6 - Transfers: 2003 71.4; 2004 97.6; 2005 104.1; 2006 111.8 - Capital expenditure: - 2003: 224.6 - 2004: 300.9 - 2005: 350.8 - 2006: 387.7 - Overall surplus/deficit (commitments basis, CFAF): - 2003: -72.9 - 2004: -133.5 - 2005: -142.8 - 2006: -146.1 - Excluding grants: 2003 -206.2; 2004 -258.0; 2005 -282.8; 2006 -291.1 - Overall surplus/deficit (cash, CFAF): - 2001 -89.2; 2002 -68.9; 2003 -88.9; 2004 -164.8; 2005 -142.8; 2006 -146.1 - Financing (CFAF): - External financing (selected flow totals shown in table) - Domestic financing, including IMF: 2001 -22.4; 2002 -27.0; 2003 5.8; 2004 40.2; 2005 -26.6; 2006 -33.2 - Over the period 2004-2006: - Revenue and grants will grow by 10.9 percent on average. - External resources will total CFAF 269.7 billion per year on average. - HIPC resources (reallocated to investment) estimated at: - 2004: approximately CFAF 22.7 billion - 2005: CFAF 34.1 billion - 2006: CFAF 27.5 billion - Capital expenditure projections: - Average annual increase of 16.4 percent in spending financed from the country’s own resources during the period. - On average, capital expenditure will increase by 9.7 percent during 2004-2006. - Government contribution to financing public investment (expressed as a percentage of GDP): 38.0 percent (2004), 44.5 percent (2005), 47.0 percent (2006) - Ratio of expenditure and net lending to GDP would average 21.6 percent. - Current expenditure as a percentage of GDP would average 11 percent. - Budget deficit excluding grants would average 8.9 percent of current GDP over the period (compared to 8.3 percent in 2003). - Projected financing requirements (including a bond issue of CFAF 40.6 billion): - 2004: CFAF 1.4 billion - 2005: CFAF 33.5 billion - 2006: CFAF 49.6 billion ### Policy priorities and implementation - Fiscal strategy aims to ensure macroeconomic stability and release additional resources for poverty reduction through an expanded supply of basic social services. - Resources to support development actions will come from: - Intensified domestic effort to boost tax receipts - Adjustments to the structure of expenditure - Resources anticipated under the HIPC Initiative - External support through bilateral and multilateral cooperation - Spending control will focus particularly on current expenditure while reallocating public capital expenditure toward productive sectors and sectors that support production. *Source: DGEP/MEDEV, Automated forecasting instrument, January 2004; DGEP/MEDEV, Automated forecasting instrument, July 2004.* ### 6.3 PRIORITY ACTION PROGRAM FOR 2004-2006 ### 6.3 PRIORITY ACTION PROGRAM FOR 2004-2006 ### Purpose and eligibility - The Government prepared a Priority Action Program (PAP) for 2004-2006, annexed to the PRSP, to improve identification and targeting of major public actions that contribute to combating poverty. - Projects and programs are drawn from ministries' program budgets and the Medium-Term Expenditure Framework (MTEF). - Eligibility criteria for inclusion in the PAP: - (i) conformity with the priorities of the PRSP; - (ii) relevance and degree of contribution to reducing poverty; - (iii) absorptive capacities over the past three years of the initiating ministerial departments. - Financing sources already identified are highlighted, including anticipated resources from the HIPC Initiative; external financing anticipated and remaining gaps are identified. ### Principal characteristics of the PAP - The PAP is integral to the PRSP (revised every three years) and will be readjusted annually. - The PAP consists of over thirty subprograms organized around four strategic pillars. - Targeting of capital expenditure by objective: - 40 percent of capital expenditure: improving access to basic social services. - 37 percent of total capital expenditure: investments to sustain economic growth of about 7 percent a year on average (support for productive sectors). - 18 percent of capital expenditure: actions specifically targeted in favor of the poor (jobs and income-generating activities). - 5 percent of capital expenditure: governance-related reforms (judicial reform, human rights, public security, decentralization, public administration capacity, anti-corruption). - Total mobilization and coverage: - The Priority Action Program will mobilize about CFAF 1,395 billion, of which 67 percent has been lined up. - Table 18 (sectoral programs 2004-2006) totals: - 2004: 411.14 - 2005: 483.39 - 2006: 500.10 - Total I + II + III + IV: 1,394.63 - Lined up: 931.75 - Being sought: 462.88 ### Key sectoral allocations (selected entries from Table 18) - Pillar I: Growth and equity — Total 515.05 (Lined up 258.95; Being sought 256.10) - 1.3 Recovery of agricultural production — Total 180.53 (Lined up 90.35; Being sought 90.18) - 1.7 Agricultural water supply improvements — Total 100.85 (Lined up 81.38; Being sought 19.47) - 1.11 Plan for development of national information and communications infrastructure — Total 31.57 (Lined up 13.58; Being sought 17.99) - Pillar II: Access to basic social services and social protection — Total 556.73 (Lined up 432.42; Being sought 124.31) - 2.1 Access to education — Total 354.85 (Lined up 333.21; Being sought 21.64) - 2.4 Access to health and nutrition services and to the program to combat AIDS — Total 127.27 (Lined up 76.36; Being sought 50.91) - 2.5 Access to safe drinking water — Total 15.97 (Lined up 14.72; Being sought 1.25) - Pillar III: Expanded opportunities for jobs and income-generating activities — Total 254.49 (Lined up 216.95; Being sought 37.54) - 3.4 Reducing the isolation of rural areas — Total 220.77 (Lined up 206.50; Being sought 14.27) - 3.6 Improved access to credit — Total 9.24 (Lined up 1.05; Being sought 8.19) - Pillar IV: Governance — Total 68.36 (Lined up 23.43; Being sought 44.93) - 4.1 Reorganization and strengthening of judicial system — Total 17.13 (Lined up 8.73; Being sought 8.40) - 4.5 Strengthening of public security — Total 19.87 (Lined up 1.84; Being sought 18.03) ### Financing scheme and macroeconomic framing - Macroeconomic assumption: - Real GDP growth averaging 6.43 percent a year. - Resources required for implementing the poverty reduction strategy for 2004-2006 (excluding debt service): - CFAF 2,059.4 billion, representing 21.9 percent of GDP. - Annual program costs: CFAF 686.5 billion. - Overall cost of financing public investment strategy (2004-2006): - CFAF 1,039.4 billion total; CFAF 346.5 billion per year. - External financing: CFAF 561.8 billion (54.1 percent). - Financing with own resources (central government, budgetary support, HIPC Initiative): CFAF 477.6 billion (45.9 percent). - Capital transfers: CFAF 3.3 billion (0.3 percent). - Table of program costs and financing (selected figures): - Cost of program excluding debt and including net lending and additional gap: - 2004: 585.0 700.2 (format in source shows two numbers adjacent) - 2005: 774.2 - Total: 2,059.4 - Current expenditure: 285.7 317.9 338.9 942.5 - Capital expenditure: 300.9 350.8 387.7 1,039.4 - From own resources: 126.1 158.8 192.7 477.6 - From external resources: 174.8 192.0 195.0 561.8 - Financing of the program: 585.0 700.2 774.3 2,059.5 - Central Government’s own resources: 347.3 398.2 447.2 1,192.6 - External financing requirement: 236.3 268.5 277.5 782.4 - Budgetary support: 39.6 40.0 40.0 119.6 - Project grants: 84.8 100.0 105.0 289.8 - Project lending: 111.9 128.5 132.5 372.9 - Additional gap: 1.4 33.5 49.6 84.5 - Aggregate external financing requirement: 237.7 302.0 327.1 866.8 - Note: The PAP indicates investment requirements of CFAF 1,394.6 billion, corresponding to additional requirements of CFAF 355.2 billion compared to investments identified using the MTEF approach. - Reconciliation reveals a total gap of CFAF 208 billion per year instead of CFAF 84.5 billion. - The gap would be covered by improving absorptive capacity, productivity gains from investments, and mobilization of additional resources. ### Sectoral breakdown of HIPC resources (Table 20, CFAF billion) - TOTAL: 22.71 (2004), 34.1 (2005), 27.5 (2006) - Priority sectors (selected): - Basic education and literacy: 5.68 (2004), 8.53 (2005), 6.88 (2006) - Health: 5.34 (2004), 8.02 (2005), 6.47 (2006) - HIV/AIDS control: 0.34 (2004), 0.51 (2005), 0.41 (2006) - Rural development: 5.79 (2004), 8.7 (2005), 7.02 (2006) - Agriculture, water supply systems, and fishery resources: 2.27 (2004), 3.41 (2005), 2.75 (2006) - Animal resources: 1.14 (2004), 1.71 (2005), 1.38 (2006) - Infrastructure, transport, and town planning – Rural roads: 2.04 (2004), 3.07 (2005), 2.48 (2006) - Postal service and telecommunications / rural telephone service: 0.34 (2004), 0.51 (2005), 0.41 (2006) - Physical environment and living conditions: 0.79 (2004), 1.19 (2005), 0.96 (2006) - Sanitation – Fight against desertification: 0.34 (2004), 0.51 (2005), 0.41 (2006) - Mines, quarries, energy – Small mining and rural electrification: 0.45 (2004), 0.68 (2005), 0.55 (2006) - Public security – Fight against insecurity: 0.34 (2004), 0.51 (2005), 0.41 (2006) - Trade, business and handicrafts development (SMEs-SMIs): 0.23 (2004), 0.34 (2005), 0.28 (2006) - Capacity-building and NICT: 0.34 (2004), 0.51 (2005), 0.41 (2006) - Other (aggregated): 3.86 (2004), 5.79 (2005), 4.69 (2006) - Labor, employment, and youth: 0.68 (2004), 1.02 (2005), 0.83 (2006) - Social development and national solidarity: 1.14 (2004), 1.71 (2005), 1.38 (2006) - Information: 0.23 (2004), 0.34 (2005), 0.28 (2006) - Advancement of women: 0.68 (2004), 1.02 (2005), 0.83 (2006) - Justice: 0.34 (2004), 0.51 (2005), 0.41 (2006) - Economy and development – Monitoring of poverty and regional poverty reduction strategy frameworks: 0.79 (2004), 1.19 (2005), 0.96 (2006) ### Priorities and intended use of HIPC resources - The experience of PRSP implementation in 2000-2002 showed urgency of allocating bulk of HIPC resources to PRSP priority sectors: rural development and food security, basic education, basic healthcare including nutrition, social welfare, safe drinking water, HIV/AIDS, physical and living environment, SMEs/SMIs and small-scale mining, public security, capacity-building including NICT. - A substantial portion of HIPC resources will be allocated to basic education (approximately 25 percent per year) as additional financing. - Specific support will be given to the thirteen administrative and planning regions to strengthen regional PRS frameworks. - Expansion into other areas may be considered on a targeted basis if they have a direct impact on poverty reduction. ### Identified gaps and required additional efforts - Additional financial efforts are necessary to cover additional actions to speed poverty reduction. - Pillar-specific additional needs: - Pillar I (growth): costs related to decline in tax collections, cost of restructuring public enterprises (privatizations, liquidations), development of SMEs/SMIs and small-scale mining. - Pillar II (public services): basic education, health and nutrition, HIV/AIDS, social welfare, safe drinking water, physical environment, and living conditions. Ten-Year Plan for Basic Education Development complemented by a five-year program costing CFAF 150.841 billion. - Pillar III (income opportunities): decentralized financial systems, rural roads, and economic infrastructure (agricultural and pastoral water supply systems). - Pillar IV (governance): strengthening public security and national capacities, emphasis on New Information and Communications Technologies. ### Risk analysis — capacities and resource availability - Success of the PRSP will depend significantly on Government capacity to steer policies and programs and to share responsibilities for implementation, monitoring, and evaluation. - Implementation will require new forms of association with private stakeholders and NGOs; these approaches carry risks that should be minimized by building administration capacity to supervise and monitor field activities. - The implementation scheme assumes timely availability of necessary resources. - Resources from HIPC debt relief are additional resources and should not substitute for any portion of official development assistance. - Development partners need mechanisms to ensure availability of resources according to agreements and disbursement schedules. - In exchange, the Government will take special measures to increase the administration’s absorptive capacity. *Source: MEDEV/DGEP, Automated forecasting instrument, July 2004; content from 6.3 PRIORITY ACTION PROGRAM FOR 2004-2006 (CR05338).* ### 7.2 RISKS IN THE AREA OF EDUCATION ### _cr05338 - 7.2 RISKS IN THE AREA OF EDUCATION ### Major institutional risks in education - Institutional compartmentalization between different levels of education is identified as the major risk, disadvantaging all levels. - Examples of concrete manifestations: - Rural education (training of young farmers) is not integrated into conventional primary schooling because of the absence of necessary support and because students and parents view it as second class education that gives no social advantage and fails to enable graduates to incorporate themselves into the community owing to their youth in a context characterized by gerontocracy and the lack of modern tools. - Nonformal education (literacy training) is heavily donor-dependent: most of the budget (98 percent) is provided by donors, with the share from the central government budget being too symbolic to permit its expansion. - Post-primary education (in particular higher education): the share in the education budget should be reduced to permit greater expansion of primary and secondary schooling by picking up expenses incurred by beneficiaries; however, the share of post-primary education has continued its rising path under pressure from its beneficiaries, who are socially influential. - Preschool education is contested between the Ministry of Education and the Ministry of Social Action and has been limited to well-off urban zones because its cost largely exceeds that of primary school, posing a risk to development if that cost were to be borne by the public budget. ### Consequences of compartmentalization and capacity gaps - Compartmentalization prevents development of synergy, particularly between primary and secondary levels, affecting: - (i) defining and evaluating pedagogical programs and methods (staff of the Ministry of Basic Education and Literacy Training has few tools available); - (ii) training and retraining of teaching staff for primary school (recently initiated at the Ecole Normale Supérieure for supervisory personnel), which would also enhance professionalism of academic streams and support higher education development while maintaining budget equilibrium in favor of primary education. ### Participation, sociopolitical roles, and cultural risks - Low effective participation of adults in literacy training programs is driven by the perceived shortfall and lack of immediate utility of training in a national language, particularly in the absence of appropriate follow-up programs and documents after literacy training completion. - Schooling serves a predominantly sociopolitical role and is an instrument of social, economic, and political power: - Those who gain power through education seek to conserve it and pass it to their children, disadvantaging the majority and perpetuating cultural, social, economic, and political ghettos. - A national coalition to reduce poverty in education requires similar learning conditions for all children and some sacrifice by privileged groups to achieve national competitiveness based on human resources quality and quantity. - Teachers must feel they carry out a noble mission and are treated equitably, with differences explained by merit and seniority rather than the prosperity level of assigned localities. - Anomy—the absence of an educational “mystique"—is a risk that could undermine poverty reduction efforts by preventing shared national values of excellence and competence. ### Selectivist objectives and performance metrics - The current selectivist objective of the educational system is a major risk for primary expansion and for improving evaluation under the ten-year plan. - Observed promotion and success rates: - About 82 percent pass from primary school to secondary school. - Average rate of success for the certificate of primary studies has been 45 percent for about 30 years. - Rate of success for the certificate of first secondary cycle completion is 35 percent. - Rate of success for the baccalaureate examination over the past decade is 25 percent. - Conclusion: A change in the aims of the educational system is mandatory. ### 7.3 Risk in the area of decentralization - Major risk: possible strengthening of “local feudalism” beyond problems of transferring human, material, and financial resources to decentralized units. - This risk is greater where literacy levels of the population and local elected officials are low, impairing genuine participation in decision-making. ### 7.4 Risk in the healthcare area - Insufficient intersectoral collaboration is a risk that should be minimized to ensure success of poverty reduction programs. - Ideal collaboration examples: - Ministry of Health tracking handicaps that prevent children from hearing, seeing, or taking courses to assist the Ministry of Education. - Ministry of Education imparting instruction on hygiene and sanitation to assist the Ministry of Health. - Pending full intersectoral collaboration, sectoral PRSP monitors could enhance concertation to improve implementation efficiency; juxtaposition of programs is not appropriate for combating poverty. - Additional risks: - (i) Low level of education diminishes impact of health promotion activities by curtailing access to information and adoption of health-conducive attitudes. - (ii) Sociocultural obstacles underlie behaviors harmful to health for specific groups (women and children), exemplified by persistence of harmful traditional practices such as food taboos, genital mutilation, and domestic violence. ### 7.5 Risks in the gender area - Inadequate understanding and application of the gender concept could undermine poverty-combatting efforts. - Although consensus exists that gender must be considered, disagreements on how to do so hinder grasping and operationalizing the concept through specific activities. - The need: - A precise, harmonized, and consensual understanding of the gender concept within the PRSP is urgent to define priority and target groups. - Gender is cross-cutting and should be systematically taken into account by all ministerial departments and development organizations in all development activities. - Development of a national strategy on gender is essential to provide a frame of reference, concertation, and harmonization of viewpoints and actions. ### 7.6 Risk in the area of human rights - Risk: stakeholders do not share a common understanding and behavior regarding human rights. - Mitigation: develop a democratic culture through enhancing awareness, training, and communication on social issues. ### VIII: Poverty monitoring and evaluation strategy — 8.1 Lessons learned - 8.1.1 A good track record — achievements: - Significant progress in preparing indicators for monitoring poverty, particularly in priority sectors. - National Observatory of Poverty and Sustainable Human Development (ONAPAD) set up with support from some technical and financial partners. - Series of surveys conducted: Participatory Poverty Surveys, informal sector survey, targeted studies on poverty, surveys on household living conditions, etc., strengthening existing evaluation systems. - Participatory process improvements: dialogue deepening, enhanced concertation, strengthened coordination of interventions. - Actions included meetings of sectoral and topic-based groups, the first conference on the PRSP in 2002, workshops to validate PRSP implementation reports. - Gatherings were open to technical and financial partners, private sector representatives, and civil society organizations. - For PRSP revision, guidelines were prepared and regional consultations held (organization of 10 regional workshops). - Support was extended to help civil society organizations hold their PRSP forum. - 8.1.2 Shortcomings — criticisms of the 2001 institutional monitoring mechanism: - Low involvement of the principals in the sectoral ministries; - Lack of legal and regulatory provisions formalizing the existence of topic-based sectoral groups, specifying their powers, membership, and operating mode; - Compartmentalization of the sectoral and topic-based groups; - Lack of proven working procedures and methods (terms of reference, framework for implementation reports); - Failure to take the regional dimension into account in the institutional mechanism for monitoring PRSP implementation; - Failure to clarify the role of development partners in the process; - Low ownership of the PRSP by the various parties to the process. - Government response in the PRSP revision: - Revisit legal and regulatory texts establishing the institutional mechanism for monitoring implementation and draft a minimum list of poverty monitoring indicators. - Monitoring and evaluation strategy for 2004-2006 is based on three pillars: - the institutionalization and effective operation of the new mechanism for monitoring PRSP implementation; - strengthening of the evaluation systems; - the performance of specific steps in preparation for PRSP revision. - Aim: consolidate gains from implementation in 2000-2002 and address detected shortcomings, and reflect the revision guidelines' vision of ownership of implementation, monitoring, and evaluation by all stakeholders. *Source: _cr05338 - 7.2 RISKS IN THE AREA OF EDUCATION — https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05338.pdf* ### 8.2 INSTITUTIONALIZATION AND EFFECTIVE OPERATION OF THE NEW MECHANISM ### 8.2 INSTITUTIONALIZATION AND EFFECTIVE OPERATION OF THE NEW MECHANISM FOR MONITORING PRSP IMPLEMENTATION ### 8.2.1 Some principles and responsibilities - The Poverty Reduction Strategy Paper (PRSP) functions as a framework for the strategic orientation of development through 2015 and is accepted by all involved as the main benchmark for poverty reduction interventions and for aligning sectoral and regional development policies. - The institutional steering mechanism must: - reflect the effective leadership of the Government; - create conditions for greater synergy of actions and a dynamic partnership with the donor community, the private sector, and civil society; - take into account data on decentralization and deconcentration. - Degree of participation and ownership by stakeholders is a main criterion for evaluating the PRSP process (including revisions). - The national mechanism for monitoring PRSP implementation is a decision-making body with primary tasks to: - assess the guidelines and timetable for drafting and adjusting the national poverty reduction strategy; - examine the results of the work to draft and readjust the national poverty reduction strategy; - consider and approve periodic implementation reports; - recommend general or targeted studies as necessary for learning more about certain policy issues; - consider and approve the monitoring and evaluation system for the national poverty reduction strategy; - propose performance contracts with civil society and the private sector as privileged partners to enhance the impact of public policies. ### 8.2.2 Composition of the new institutional mechanism - The institutional mechanism is composed of: - a ministerial steering and monitoring committee; - sectoral and topic-based commissions; - decentralized units at the regional level. - Ministerial steering and monitoring committee: - chaired by the Head of Government; - contributes to finding solutions to implementation problems, deciding trade-offs, and taking measures to remove implementation constraints. - Sectoral and topic-based commissions: - chaired by heads of ministerial departments; - assess sectoral policies and the monitoring and evaluation system; - draft implementation status reports on policies, programs, and projects; - serve as forums to develop measures to encourage and promote the private sector; - ensure sectoral policies are consistent with the PRSP. - Regional poverty reduction bodies: - act as local liaison with the national mechanism; - provide region-specific, sufficiently disaggregated information, crucial because poverty in Burkina Faso is predominantly rural; - are supported by the Advisory Council on Regional Development within the decentralization framework to avoid duplication given paucity of human, material, and financial resources. - Mechanism modalities: - periodic sessions and meetings, possibility of calling national conferences; - Framework for Coordination between the Government and Development Partners (technical and financial partners, private sector, and civil society) to assess results and resource mobilization, and to propose measures to improve coordination and dialogue. - Secretariat support: - an Executive Secretariat assists in preparing and convening meetings and disseminating results; - coordinating economic and social development programs is entrusted to the Technical Secretariat; - at the regional level, regional directorates responsible for the economy provide liaison. - Implementation needs: - Once sectoral and topic-related commissions function optimally, production of PRSP implementation reports and full and relevant Regional Poverty Reduction Strategies will be guaranteed. - Past sectoral working groups lacked basic tools (report templates, terms of reference, regulations governing group composition) and operating resources. - Focus in the first half of 2004 was on preparing basic documentation for commissions and specifying sources and levels of resources available to them. ### 8.2.3 Guiding principles for PRSP implementation - General objective: improve monitoring and evaluation of the PRSP by: - (i) the production of high quality statistical information; - (ii) steady operation of the institutional mechanism; - (iii) the regular production of annual evaluation reports; - (iv) improved targeting of measurement indicators; - (v) inclusion of the regional dimension. #### 8.2.3.1 Specific objectives of the guiding principles - Specific objectives to be achieved over the period 2004-2006: - ensure steady operation of the institutional mechanism; - prepare annual PRSP implementation reports; - boost private sector and civil society involvement; - complete the determination of PRSP monitoring indicators through improved targeting and by implementing the schedule for producing statistical information; - implement a PRSP communication strategy. - Implementing the PRSP is as important as the preparation process; realization of PRSP objectives depends on the dynamism of the monitoring and implementation mechanism. - Six principles are essential to observe. #### 8.2.3.2 Guiding principles - Observance of PRSP priorities: - PRSP is the main frame of reference for all development interventions; - cooperation programs must contribute to PRSP-defined priorities; - Central Government Budget should reflect PRSP priorities clearly in sectoral allocation of resources; - HIPC Initiative resources must be earmarked first and foremost for PRSP priority areas. - Budgetary support: - Low resource absorption is due both to government programming capacity and complexity of some donor procedures; - Government decision to opt for budgetary support aims to simplify procedures and reduce costs compared to other cooperation modalities; - Budgetary assistance fosters ongoing policy dialogue, including on macroeconomic reform and public affairs management; - Budgetary support is not systematically opposed to project aid, which can target complex issues in a focused way. - Simplification and harmonization of procedures: - Simplification and harmonization of ODA procedures are key to reducing recipient administrative burden; - Government reforms led in 2002 to a review of government procurement rules; - training for project and program coordinators on donor procedures and the second general meeting of development project and program heads in November 2001 helped diagnose implementation problems; - Government intended to hold the third general meeting in 2004 to boost public investment implementation; - substantial resolution requires donors to simplify or harmonize procedures, prompted by comprehensive aid reform emphasizing performance-based management; - the PRSP and its minimum indicators matrix should serve as the basis for partner assessment of Government management efforts; other indicators belong in sectoral performance evaluations. - Information sharing: - No information should be considered taboo in PRSP implementation; - Government will foster exchanges on budget management, reports, and evaluation outcomes; - Information sharing with technical and financial partners increases aid efficiency and reduces duplication of efforts. - Decentralization: - Decentralization has been underway nearly a decade; significant strides made; - 16 new urban communes were created in 2000 in addition to the 33 already existing in 1995; - authorities preparing to set up rural communes very soon; - successful transfer of authority to local level makes transfer of resources feasible, enabling financially viable and autonomous local governments; - regional strategic frameworks require decentralized territorial governments to play a decisive role and have more resources via actual transfer of resources. - Consensus-driven, coordinated monitoring: - Public authorities will continue producing evaluation reports for annual PRSP workshops; - other stakeholders, especially private sector and civil society, should produce independent reports to supplement government reports. ### 8.3 CONSOLIDATION OF MONITORING AND EVALUATION SYSTEMS - Consolidation rests on three basic elements: - striving to make sectoral policies frames of reference for monitoring performance; - formulating and incorporating the monitoring indicators; - building capacity in PRSP monitoring and evaluation. #### 8.3.1 Sectoral policies: frames of reference for monitoring performance - Existence of sectoral action plans and strategies provides precise, relevant, and cohesive benchmarks and possibilities for incorporation into current statistics production. - Sectoral policies should be frames of reference for monitoring performance using relevant indicators, especially in priority PRSP sectors. - Beyond the minimum PRSP indicators, mechanism must be strengthened to monitor all sectoral indicators not on the minimum list to feed the database of poverty and sustainable human development indicators. - Formulation and updating of sectoral policies and strategies will: - provide documents to ministerial departments lacking them and update existing documents; - ensure people's concerns in various sectors are reflected in government actions; - define Government vision, ambitions (objectives) for each sector, and resources required; - through stakeholder consultation, define each stakeholder's contribution to mobilizing resources for implementing programmed actions. - Alignment of sectoral policies and strategies aims to harmonize policies to avoid duplication and strengthen their contribution to PRSP objectives via synergy of actions. #### 8.3.2 Formulating and updating the poverty monitoring indicators - Monitoring indicators used in preparing the 2000 and 2001 implementation reports grew from recommendations from the test on reformulation of new conditionalities and cover most priority PRSP sectors. - Given the limited scope of this matrix, it was necessary to attach it to an agreed list addressing concerns of administrative bodies, private sector, civil society, and technical and financial partners. ##### 8.3.2.1 Major elements in the process of formulating the indicators - Process characteristics: - open and participatory; - based on work by ONAPAD and a sectoral analysis to include all sectors and ministerial departments. - Selection process: - based on 11 quality criteria used as a grid for choosing relevant indicators for monitoring and evaluation of poverty reduction strategies. - led to identification of 33 indicators covering the following areas: 1. education; 2. health, nutrition, and demography; 3. jobs and vocational training; 4. agriculture, stock farming, and fisheries; 5. environment, safe drinking water, sanitation, and energy; 6. the private sector and economic competitiveness; 7. macroeconomy, budget, household living conditions, and human development; 8. good governance (economic, political, and local). - Indicator selection considerations: - ability to measure short-term progress directly (results indicators); - capacity of the national statistical system to furnish required information/data. - Further work: - Government undertook a study mission on PRSP monitoring indicators in June/July 2003 to assess cohesiveness of indicators identified through the sectoral approach. - Mission resulted from a recommendation of the regional coordination meeting on building capacity for monitoring and evaluating poverty reduction strategy frameworks held in Ouagadougou from March 19 to 21, 2003. - Mission used performance-based management conceptual framework with the logical framework as the central tool and considered clustering indicators according to dimensions of human poverty. - The methodology identified 10 dimensions covering: 1. income; 2. education; 3. health; 4. nutrition; 5. water and sanitation; 6. employment and work; 7. housing; 8. access to productive assets; 9. market access; *Source: _cr05338 - 8.2 INSTITUTIONALIZATION AND EFFECTIVE OPERATION OF THE NEW MECHANISM* ### 10. peace and social inclusion (participation). ### 10. peace and social inclusion (participation). ### Recommended indicator framework - The mission recommended inclusion of performance indicators for sectors not covered in the different dimensions of poverty to represent "various other sectors as factors of synergy and effectiveness." - At the end of its research the study mission suggested a list of 47 indicators, classified as follows: - a minimum list of 28 indicators, 23 of which cover the 10 dimensions of human poverty and five concern sectoral performance to take into account sectoral performance in response to the recommendation on representing the various economic sectors as a synergy and efficiency factor; - an additional list of 19 indicators, which contains all the other indicators from the sectoral approach, not including the different dimensions of human poverty. - Annexes I, II and III show the different lists of indicators. ### Updating the monitoring indicators - Responsibility and contributions: - Importance of contributions from the National Statistics and Demography Institute and ministerial departments (through their statistical departments) to take responsibility for key indicators and sectoral performance indicators. - Centralized annual CWIQ survey recommendation: - Conduct a brief, annual "CWIQ" survey by the National Statistics and Demography Institute for the minimum list of indicators for three basic reasons: - simultaneous production of the majority of indicators by the same source, guaranteeing (i) uniformity of concepts and measurement methodology used, and (ii) control of the publication schedule; - elimination of difficulties linked to production of current statistics and statistics used in estimation of certain demographic denominators, especially when a high degree of disaggregation is envisaged; - introduction of socioeconomic variables important for analysis of poverty indicators and determinants, advantageous for retrospective monitoring of the level of adjustment of the poverty reduction strategy. - Implementation and resourcing: - Focus on centralized production of monitoring indicators with essential sectoral contribution to measurement methodology (preparation of questionnaire sections) and enhanced role of sectoral research and planning directorates in analysis based on a regular survey. - Requires firm commitments from Government and partners to provide the National Statistics and Demography Institute with sufficient resources to conduct, as of 2004, the survey envisaged in the 2004-2008 national statistical program prepared in July 2003. - Sectoral mechanisms and current statistics: - Maintain and strengthen existing mechanisms for gathering information and monitoring indicators in PRSP priority areas. - Sectors without mechanisms must establish them. - Continue and strengthen production of current statistics at sectoral level to feed sectoral indicators not on the minimum list and broaden the observatory-level indicator base. ### Capacity building for PRSP monitoring and evaluation - Objective: - Build individual and institutional capacities in the national statistical system: training of statisticians, revitalization of statistical function in research and planning directorates of ministerial departments, equipment, implementation of information-exchange networks among units, etc. - Government will implement a priority action plan to build capacity in PRSP monitoring and evaluation in addition to actions in the national statistical program. - National statistical program components: - production of statistics; - strengthening of the organizational framework; - human resources development. - Organizational strengthening: - Reorganize statistical units and system components to make them operational and ensure better coordination at national level. - Make technical coordination bodies and tools available and functional and produce current statistics at sectoral and regional levels more reliably and regularly. - Human resources development: - Provide the system with statisticians through thorough training and new forms of staff incentives. - Actions aimed at increasing the number of statisticians, enhancing analytical skills, and developing abilities in related areas. - PRSP monitoring and evaluation capacity building: - Priority action plan (adopted at regional meeting in Ouagadougou) focuses on finalizing a building plan to be implemented with partner support, including statistical production and poverty analysis capacities. - Activities include developing methods and producing monitoring and evaluation tools, and establishing a database and documentation on poverty. - In accordance with activity planning adopted in March 2003, this priority action plan has been made the focus of a planning mission to make the plan operational. ### Specific actions for the PRSP revision - Need: - Supplement consolidation of evaluation systems and capacity building with precise measures to ensure timely access to essential information for the next PRSP revision. - Identification and conduct of specific surveys and studies: - Conducting a quick annual CWIQ type of survey; - Conducting studies on the impact of public policies on people’s living conditions; - More targeted surveys on the informal sector. - Implementation of a National Statistical Program will address these concerns. - Spatial dimension: - Consolidation of evaluation systems will account for regional poverty reduction strategies and the list of surveys and studies to supplement regional monitoring and evaluation mechanisms. ### Annex I — Poverty monitoring indicators: human poverty (selected entries and targets) - Education: - Gross enrollment ratio: 47.5% (2002 outcome); 52.2% (2003 level); 53% (2004 objective); 56% (2005 objective). - Of which: girls: 38% (2002); 42% (2003); 47% (2004); 50% (2005). - Gross admission rate to CP1: 39% (2002); 45,7% (2003); 46% (2004); 49% (2005). - Of which: girls: 33% (2002); 37% (2003); 41% (2004); 46% (2005). - Primary school completion rate: (values indicated as objectives in table). - Adult literacy rate: 31.11% (2002 outcome); 32.25% (2003 projection). - Health: - Vaccination rate by antigen (BCG 90.35%; DTCP3 69.10%; Measles 64.10%; Yellow fever 61.34%) — disaggregation: Region, Health district. - Seroprevalence rate of HIV/AIDS: 4.2% (2002) and 1.9% (2003) — Sentinel site. - Incidence of low birth weight, infant-child mortality rate, rate of attended childbirths — disaggregation: Region, Health district. - Nutrition and water/sanitation: - Prevalence of underweight children under 5 — disaggregation: Region, Health district. - Rate of access to safe drinking water — disaggregation: Region, Province, Water and sanitation. - Percentage of households with access to functional latrines — disaggregation: Region, Province. - Jobs/work: - Unemployment rate (table entry). - Percentage of workforce engaged in day labor or piecework—precarious employment. - Living conditions and productive assets: - Electrification rate: 10% — disaggregation: Region, Province. - Percentage of households using improved fireplaces — disaggregation: Region, Province. - Percentage of households with particular roofing or wall materials; Percentage engaged in draft-animal farming; Ratio of households with agricultural equipment; Rate of access to credit — various disaggregations. - Access to markets: - Access time (in minutes) to nearest market infrastructures (food production, public transport) — disaggregation: Region, Province. - Peace and social inclusion: - Participation rate by gender — disaggregation: Region, Province. ### Annex II — Poverty monitoring indicators: sectoral performance (selected entries) - Real GDP growth rate: 4.6% (2002 outcome); 7.2% (2003 projection); 6.0% (2004 objective); 6.7% (2005 objective); 6.8% (2006 objective). - Annual inflation rate: 2.3% (2002 outcome); 1.5% (2003 projection); -1.9% (2004 objective); 1.9% (2005 objective); 2.7% (2006 objective). - Basic budget balance as a percentage of GDP: -4,2% (2002 outcome); -2,5% (2003 projection). - Contribution of exports to gross domestic product — listed (degree of disaggregation: --). - Ratio of local government expenditure to central government expenditure — listed (degree of disaggregation: --). ### Annex III — Poverty monitoring indicators: supplementary sectoral indicators (selected entries) - Health, nutrition, and demographics: - Percentage of health centers in compliance with staffing standards — disaggregation: Region, Health district. - Break in supply of essential and generic drugs — disaggregation: Region, Health district. - Proportion of AIDS victims receiving ARVs — disaggregation: Region, Health district. - Jobs and vocational training and education: - Number of jobs created by projects financed with support funds — disaggregation: Region, Province. - Number of recipients of vocational training and apprenticeships, including technical education — disaggregation: Region, Province. - Agriculture, livestock, and fisheries: - Apparent grain coverage rate; Rate of increase of agricultural production; Vaccination rate for Newcastle disease; Vaccination rate for contagious bovine pleuropneumonia — disaggregation: Region, Province. - Environment, safe drinking water, sanitation, and energy: - Rate of access to a water point in rural areas; Available stock of forestry resources — disaggregation: Region, Province. - Macroeconomy, budget, living conditions, and sustainable human development: - Effective marginal tax rate (EMTR) — degree of disaggregation: --. - Tax ratio — degree of disaggregation: --. - Industrial production index (IPI) — degree of disaggregation: --. - Domestic and external payments arrears — degree of disaggregation: --. - Ratio of expenditures subject to ex post administrative audit — degree of disaggregation: --. - Budget execution rate of priority ministries — degree of disaggregation: --. - Good governance (economic, democratic, and local): - Ratio of female participation in parliament and deliberative bodies — degree of disaggregation: --. - Increase in number of documented decisions — degree of disaggregation: --. *Source: _cr05338 - 10. peace and social inclusion (participation).* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05338.pdf_