## EXECUTIVE SUMMARY — _cr1033 ## Source details **Canonical URL:** [EXECUTIVE SUMMARY — _cr1033](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1033.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1033.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1033.pdf.json) --- ### Context and method for drafting the F-PRSP - Drafting commenced in February 2001; interim paper adopted in March 2008. - I-PRSP outcomes enabled: - resumption of international financial cooperation; - a three-year PRGF program (IMF); - arrears clearance/rescheduling agreements and HIPC decision point in November 2008. - F-PRSP objectives (four (04) main goals): - (i) refining the I-PRSP diagnosis and adapting measures; - (ii) growth based on solid and sustainable foundations; - (iii) consideration of regional specificities; - (iv) greater involvement of non-State actors. - Participatory process: - three consultation levels: (i) road map; (ii) diagnostic phase; (iii) drafting/finalization consultations; - all Technical and Financial Partners (TFPs) consulted to facilitate alignment with the Paris Declaration. ### Achievements of the Interim PRSP and implementation instruments - Instruments: - Interim Plan of Priority Measures (IPPM) targeted 2008-2010; priority sectors: health, education, water and sanitation, agriculture, road infrastructure, energy, social action, administrative reform, democratic and economic governance. - Medium-Term Fiscal Framework (MTFF) introduced into draft budget law documentation in 2008. - Cooperation and financing outcomes: - PRGF: three-year IMF program agreed April 2008; financing US$108 million; decision point reached November 25, 2008. - World Bank ERGG provided budget support of about US$150 million and cleared payment arrears. - AfDB operations cleared about US$20 million arrears (99 percent), with remaining arrears cleared by France grant. - Paris Club (June 12, 2008): Naples terms — cancellation of two thirds of payment arrears and current maturities; rescheduling remainder over 23 years with five-year grace period. - Implementation constraints: - No comprehensive institutional framework or sectoral respondents for systematic progress compilation. - IPPM and MTFF lacked specific programs and monitoring indicators. - 2008 shocks impacting progress: - energy crisis; food crisis with sharp average price increase of 8.4 percent versus the preceding year; floods collapsing main bridges. ### Dimensions of poverty in Togo — prevalence, distribution, vulnerability - Poverty incidence: - Over 60 percent of the Togolese population lives below the poverty line. - Rural incidence: three households out of four are poor. - Urban incidence: two out of five are poor. - Regional incidence: Savanes 90.5 percent; Centrale 77.7 percent; Kara 75 percent. - 64.2 percent of the poor community is undernourished. - Data limitations and shocks: - 2006 QUIBB data do not fully reflect 2007–2008 shocks (food price rise in 2008; floods 2007–2008). - Poverty likely increased by over 8.4 percent on average following 2008 price increases. - Inequality and vulnerability: - Gini coefficient (QUIBB-2006): 33.5 percent (Urban: 31.1 percent; Rural: 29.8 percent). - Urban–rural inequalities account for more than 53 percent of national inequality. - Vulnerability rate: 81.8 percent (Long-term poor 39.6 percent; Short-term poor 22.0 percent; Vulnerable nonpoor 20.2 percent). - Children: 48.2 percent of population; about 32 of every 100 children work (poor households 36.3 percent; nonpoor 17 percent). - Determinants of poverty (selected exact figures): - Household size: more than 90 percent of the poor are in households comprising at least ten persons; 24.5 percent of poor are in households with not more than three members. - Education of household head and poverty incidence: - No schooling: 63.9 percent poor; - Completed primary school: 44.9 percent; - Completed secondary school: 20.5 percent; - Post-secondary studies: 8.5 percent. - Occupational poverty incidence: - Independent farmers: 78.8 percent; - “Inactive or unemployed”: 55.2 percent; - Public sector salaried employees: 38 percent; - Private sector salaried employees: 37 percent. - Poverty by sex/age of head: - Male-headed households poor: 51 percent; - Female-headed households poor: 34.8 percent; - Head aged 15-30: 27.7 percent; - Head aged 31-55: 49.8 percent; - Head over 55: 56.6 percent. - Marital status: - Polygamous-headed households: 63.9 percent poor; - Monogamous-headed households: 49.9 percent poor; - Widow/widower-headed: 42.2 percent poor; - Separated/divorced-headed: 23.4 percent poor; - Never married-headed: 12.6 percent poor. ### Strategic pillars of the F-PRSP - Ultimate goal: effective and sustainable improvement of people’s living conditions by tackling main causes of poverty. - Four (4) strategic pillars; cross-cutting topics: environment, HIV/AIDS, gender, human rights. - First pillar — Improvement of governance: - Four (4) priority areas over next three years: (i) political governance; (ii) institutional governance; (iii) administrative reform; (iv) economic governance. - Second pillar — Consolidation of foundations for strong and sustainable growth: - Nine (9) priority areas: (i) strengthen structural reforms; (ii) improve business environment; (iii) promote sources of growth; (iv) develop infrastructures; (v) enhance regional integration; (vi) manage natural resources/environment; (vii) redistribute fruits of growth; (viii) create jobs; (ix) promote research. - Third pillar — Development of human capital: - Focus on: (i) education and training system; (ii) health system and services; (iii) nutrition; (iv) access to safe water and sanitation; (v) gender equity and social protection. - Fourth pillar — Reduction of regional imbalances and community development: - New orientation to address inter- and intra-regional imbalances; improve local governance and develop regional/local potential. ### Macroeconomic framework — objectives, baseline and alternative scenarios - Purpose: determine aggregates compatible with strategy, forecast resources/expenditures, identify absorption risks. - Baseline scenario assumptions (medium-term reform strategy): - (i) resumption of growth; (ii) price stability; (iii) consolidation of public finances; (iv) strong domestic financing contribution; (v) alignment of resources with national priorities; (vi) sustainability of balance of payments deficit; (vii) control of money supply. - Result: growth rising from 1.7 percent in 2009 to 4.1 percent in 2011. - Alternative scenario (acceleration towards MDGs — Gleneagles optimistic scenario): - Based on mobilization of additional ODA per UN Secretary-General initiative and G8 commitments; results in higher growth rates. - Key macroeconomic risks: - (i) exogenous shocks (natural disasters, volatile world prices, higher oil prices); (ii) resource absorption capacity constraints; (iii) quality of resource assignment; (iv) slow implementation of structural reforms (energy, roads, telecommunications); (v) pace of business environment reforms; (vi) presidential elections without clashes/violence. ### Institutional framework and M&E mechanisms - Planned institutional arrangements: - (i) National Council for Development Policy and Poverty Reduction (CNPDLP); - (ii) Interministerial Committee Responsible for Poverty Reduction Strategies (CISLP); - (iii) Technical PRSP Steering Committee (CTP); - (iv) Permanent Technical Secretariat for the PRSP (STP/PTS); - (v) Sectoral PRSP Committees (CS); - (vi) Regional Participatory Monitoring Committees (CRSP); - (vii) Local Participatory Monitoring Committees (CLSP). - Monitoring and assessment information system: three subsystems: - (i) monitoring households’ living conditions; - (ii) monitoring programs and projects (inputs/outputs); - (iii) impact assessment (attribution studies). - National Statistics Development Strategy (SNDS) validated December 2, 2008; DGSCN responsible for supervision and coordination of statistical production. - Capacity-building: Government to formulate a national capacity-building strategy to address shortages and create conducive implementation framework. ### Social sectors, human resources and employment — achievements, indicators, and policy implications - Education: - Primary completion: 66.1 percent of pupils completing primary cycle. - Gender parity index: 0.93 (nationwide indicators elsewhere: nationwide gross enrollment ratio 112 percent; parity index 0.92). - Rebuilt schools after 2007–2008 floods; 1,374 substitute teachers given civil servant status; 2,015 new teachers recruited in 2008. - From academic year 2008-2009 schooling free in public pre-schools and primary schools. - Notsé Teacher Training School re-opened to train 1,600 new teachers starting 2009. - EDIL subsidy: over 200 million CFA francs. - 2008 budget execution rates: overall education execution 106 percent; operating 108 percent; investment 70 percent. - Policy implication: improve quantitative and qualitative execution of public investments to reach MDGs. - Health: - National Health Development Plan 2009-2013; maternal and child health improvements noted. - HIV new infections 15–24 age group: from 3.38 percent in 2006 to 2.80 percent in 2008. - 2008 sector execution rates: investment expenditure 66 percent; operating expenditure 96 percent; overall 78 percent. - Nationwide health indicators (QUIBB/DG/Ministry): - Number of health units per 10,000 inhabitants (Nationwide): 3.2; - HIV prevalence (Nationwide): 3.2 percent; - % births attended by skilled personnel (Nationwide): 63.3; - % fully vaccinated children (Nationwide): 63.8; - % pregnant women using insecticide-treated nets (Nationwide): 30.7; - % households <3 km from nearest health center (Nationwide): 71.2. - Policy implication: improve investment execution, particularly in health, to enable MDG progress. - Nutrition: - 26 percent of children under 5 have insufficient body weight; close to 24 percent suffer growth retardation. - Micronutrient indices improved; malnutrition endemic in northern regions (Savanes). - Planned programs: Accelerated Strategy for Child Survival and Development; food fortification; school meal programs; nutritional programs for adolescent girls, pregnant and nursing women. - Water and sanitation: - Water access (Directorate General of Water and Sanitation-2007): - Nationwide access to safe drinking water: 39.0 percent. - Potential population supplied (WPE) nationwide: 34 percent. - Regional access (%) — Maritime 35.6; Plateaux 26.6; Centrale 57.1; Kara 56.6; Savanes 38.4. - Sanitation (population using latrines regional proportions): - Lomé and outskirts: 78.2 percent; - Maritime: 21.2 percent; - Centrale: 20.5 percent; - Plateaux: 15.6 percent; - La Kara: 11.6 percent; - Savanes: 8.5 percent. - MDG targets (Table 7 examples): - Proportion using safe drinking water (2006): 57.1% — MDG target for 2015: 75.0%; - Proportion with access to improved sanitation (2006): 31.7% — MDG target for 2015: 50%. - Policy implication: accelerate investments and execution in water and sanitation, prioritize regions/prefectures with lowest coverage. - Employment and wages: - 2008 government recruitments: March 2008 recruited 704 health workers; December 2008 recruited 4,000 new civil servants (including 35 persons with disabilities). - Minimum wage rose from CFAF13,757 to CFAF28,000 (approximately doubled). ### Development of infrastructure to support economic growth — deficits and actions - Infrastructure deficits: - Road network: just 21 percent of national roads are paved; many paved roads and bridges decayed; service roads impassable in high-potential areas. - Rail: practically nonexistent except limited freight. - Energy: demand unsatisfied; dependence on neighbors; frequent power cuts. - Telecommunications: costs relatively high; state monopoly on facilities noted. - Government priorities and measures: - Transportation: reconstruct bridges, rehabilitate/upgrade urban/feeder/national/interstate roads, widen/duplicate major access roads, rehabilitate/extend south-north railroad axis. - Energy: diversify electricity supply, tap hydroelectric potential, complete regional projects (Adjaralla dam, interconnections), construct rural electrification strategy and fund, promote solar energy for public lighting. - Telecommunications: open TOGOTELECOM capital to private sector, develop regulatory framework for competition, improve national coverage and reduce costs. - Environment and disaster management: adopt National Environmental Policy; framework Law on the Environment adopted May 2008; create National Sustainable Development Commission, National Environmental Management Agency, and National Environment Fund; national disaster risk reduction strategy and National Contingency Plan. ### Improving the business environment and private-sector finance - Business climate indicators: - Starting a business: average 53 days versus regulatory standard 14 days. - World Bank Doing Business ranking (2009): 163rd out of 181 countries (progression history: 154th in 2005; 151st in 2006; 156th in 2007; 159th in 2008). - Main constraints: tax burden, cumbersome administrative requirements, judicial functioning, banking system difficulties. - Planned reforms: - Establish one-stop shop for business formalities; rehabilitate legal and judicial environment; simplify business taxes (Council decision Aug 2008: reduce tax rate from 37 to 30 percent for industries and from 40 to 33 percent for other companies). - Revitalize free trade zone and create new free trade zone circa 20 km north of Lomé. - Finance and microfinance: - Banking system: 11 commercial banks; bankarization rate 21.6 percent in 2007. - MFIs (end-June 2008): collected deposits CFAF 60.3 billion; loans CFAF 48.7 billion; total flows > CFAF 109 billion; beneficiaries 536,321. - SNMF (2008-2012) total cost: CFAF 19.7 billion; priorities include legal/regulatory adjustments, sector streamlining, capacity-building, refinancing and guarantee mechanisms. ### Promoting sources of economic growth — agriculture, industry, services - Agriculture: - Priorities: boost agricultural productivity, water control, producer pricing, land security, Integrated Soil Fertility Management (ISFM), fertilizer policy review. - Coffee-cocoa emergency program components: plantation rehabilitation, replanting support, institutional strengthening, infrastructure (roads, warehouses). - National Food Security Program (PNSA) 2008-2015: total cost CFAF 100 billion through 2015; 85 percent financed externally. - Industry and extractive sectors: - Phosphate production decline: peak 3 million metric tons (1988–1989) down to 750,000 metric tons in 2007. - Limestone/clinker exports: 2.7 percent of exports in 1998 (CFAF 4,055 million) rose to 40.8 percent in 2006 (CFAF 57,400 million). - Mining code issues: 1996/2003 law lacks implementing decree; no mine registry; problematic Article 55 and Article 60 noted. - Tertiary sector and port competitiveness: - Lomé Port handles 80 percent of maritime trade; container handling productivity improved but monopoly risks exist; 20-foot container to Burkina Faso via Lomé: CFAF 267,269 excluding transit/transportation; via Tema: CFAF 114,463. - Government actions: expand port infrastructure, redefine PAL mission, restore PAL authority over concessionaires, task force to optimize port costs. ### Reduction of regional imbalances and local development (Fourth pillar) - Regional disparities: - Maritime and Plateaux regions: relatively low poverty; together 40 percent of land area and nearly 67 percent of population. - Central, Kara, Savanes regions: high poverty incidence. - Policy: develop regional/local potential via balanced emergence of development hubs (agricultural, industrial, service/tourist) and upgrade human capital, infrastructure, water/sanitation, and health/education in targeted prefectures. - Millennium Villages joint initiative: - Target: 10 rural municipalities (three each in Savanes, Kara, Central; one in Maritime) over five years. - Financing of initial start-up phase: US $18,327,000 — contributions: 27 percent Government/public authorities; 9 percent target communities; 46 percent donors; 18 percent private sector/others. ### Challenges to achieving the MDGs and priority policy implications - Key challenges to MDGs: - (i) consolidate political dialogue and national consensus; - (ii) mobilize domestic and external resources; - (iii) improve efficiency of public spending; - (iv) rapid creation of institutional and human capacity. - Growth requirements: - Simulation: average economic growth of 7 percent over a long period would make MDG poverty-reduction target achievable, all else equal. - Domestic revenue: - Agriculture ~30 percent of GDP; informal economy large; tax pressure recent average 14 percent (WAEMU minimum called for 17 percent); measures in 2008 raised rate to 16.4 percent. - Public expenditure efficiency: - 2006 PEMFAR showed extensive use of exceptional procedures; progress in 2008 to limit use. - Public Investment Program execution rate 2008: 52 percent. - Policy priorities (summary of recommended measures): - Consolidate political dialogue and governance reforms; strengthen democracy, rule of law, and institutional capacities. - Raise tax pressure toward WAEMU minimum: continued tax base expansion, tax audits, reduce exemptions. - Mobilize substantial concessional external aid; coordinate donors; leverage Gleneagles/UN initiatives. - Improve public financial management, procurement transparency, and monitoring; implement automated systems (SIGFIP) and capacity-building over next two or three years. - Rebuild institutional and human capacity: recruitment, training, replacement of retirees, strengthen key ministries and civil society; improve absorption of donor funds. ### Baseline scenario — principal macro indicators (selected exact figures) - Real GDP growth rate: 2008 1.1 / 2009 1.7 / 2010 3.3 / 2011 4.1. - Public investment rate (as % of GDP): 2008 3.9 / 2009 4.8 / 2010 7.1 / 2011 7.0. - Consumer price index: 2008 8.7 / 2009 2.8 / 2010 2.1 / 2011 2.5. - Current balance (as % of GDP): 2008 -6.6 / 2009 -4.3 / 2010 -4.2 / 2011 -3.6. - Primary budgetary balance (as % of GDP): 2008 0.4 / 2009 -0.6 / 2010 0.6 / 2011 1.0. - Total budgetary balance (as % of GDP): 2008 -1.0 / 2009 -3.2 / 2010 -2.0 / 2011 -1.0. - TOFE (selected lines, as % of GDP): - REVENUE AND GRANTS: 2008 18.7 / 2009 19.1 / 2010 21.9 / 2011 22.5. - REVENUE: 2008 17.1 / 2009 16.9 / 2010 17.6 / 2011 18.2. - GRANTS: 2008 1.6 / 2009 2.2 / 2010 4.3 / 2011 4.3. - TOTAL EXPENDITURES: 2008 19.7 / 2009 22.6 / 2010 23.9 / 2011 23.5. - INVESTMENT EXPENDITURES: 2008 3.9 / 2009 5.9 / 2010 7.1 / 2011 7.0. - Domestic resources as share of financing: - 2009: 74 percent; 2010: 70 percent; 2011: 73 percent. - Financing gaps (CFAF billions, Table 11): - 2009: 37.5; 2010: 26.3; 2011: 9.3. ### Gleneagles (MDG acceleration) scenario — financing and sectoral scaling-up (selected exact figures) - ODA required to reach US$85 per capita: - ODA for Togo: 2008 US$61 million; 2009 US$204 million; 2010 US$354 million; 2011 US$511 million. - Per capita ODA progression: 2008 US$11; 2009 US$36; 2010 US$60; 2011 US$85. - Average ODA (2009-2011): US$356 million per year. - Additional investments by sector (as % of GDP, Table 14) — averages (2009-2011): - Education: average 1.5%; - Health: average 1.2%; - Gender: average 0.2%; - Agriculture: average 0.7%; - Water and Sanitation: average 0.6%; - Energy: average 0.8%; - Roads: average 0.7%; - Governance: average 0.1%; - Other sectors: average 0.1%. - IMF macro impact: permanent increase in assistance would raise GDP growth by one percentage point on average over the first ten years; relatively greater impact on public/private capital accumulation. ### Risk analysis and priorities to lift constraints - Key risks: exogenous shocks; absorption capacity limitations; quality of resource assignment; slow structural reform implementation; pace of business environment reforms; potential electoral violence; lack of political commitment. - Additional constraints under optimistic scenario: weak institutional/human capacities; inadequate planning/programming/budgeting/monitoring capacity; insufficient capacity to mobilize/absorb resources. - Priority operational measures: - Create delegated contracting authority agencies to accelerate investments. - Subcontract government procurement to UN operational services (UNDP) where appropriate. - Strengthen programming, implementation, monitoring & evaluation capacities in line ministries. - Strengthen Administrative and Financial Directorates for procurement/programming. - Set up an up-to-date ODA information system and hold twice-yearly consultations between project coordinators and aid managers. - Train administrative officials in leadership and monitoring systems. - Set up Government/Donor Committee and the Network of Civil Society Organizations for mutual monitoring. ### Conclusion — conditions for success (selected highlights) - F-PRSP is the unifying framework for sectoral strategies and reference document for 2009-2011. - Success conditions: - (i) real ownership by public administration, civil society, private sector, and local communities; - (ii) sustained efforts to mobilize and prioritize resource use in line with Paris Declaration; - (iii) institutional and human capacity-building at central, regional, local levels; - (iv) alignment and harmonization by technical and financial partners. - Government commitments: consolidate consultations, operationalize monitoring and evaluation system, and develop the Priority Action Program linking F-PRSP to sectoral strategies and program budgets. *Source: Executive Summary and chapters from _cr1033 (IMF PDF excerpts as provided).* ### EXECUTIVE SUMMARY....................................................................................................... ### EXECUTIVE SUMMARY ### Acronyms and Abbreviations - ABEDA Arab Bank for Economic Development in Africa - AEPA Safe Drinking Water Supply and Sanitation - AfDB African Development Bank - AIDS Acquired Immuno-Deficiency Syndrome - BCEAO Central Bank of West African States - BIAO Banque Internationale pour l’Afrique de l’Ouest - BOAD West African Development Bank - BTCI Banque Togolaise pour le Commerce et l’Industrie - BTD Banque Togolaise de Développement - BTP Construction and Public Works - CAGIA Centrale d'Achat et de Gestion des Intrants Agricoles [Agricultural Inputs Purchasing and Management Office] - CAS-IMEC Cellule d’Appui et de Suivi des Institutions Mutualistes ou coopératives d’Epargne et de Crédit [ Mutual Institutions and Savings and Credit Cooperatives Support and Monitoring Unit] - CCFCC Comité de Coordination de la Filière Café-Cacao [Coffee-Cocoa Industry Coordinating Committee] - CDQ Comité de Développement de Quartier [Neighborhood Development Committee] - CEB Communauté Electrique du Bénin - CEET Compagnie Energie Electrique du Togo - CFE Centre de Formalité des Entreprises [Business Formalities Center] - CFAF CFA franc - CISLP Comité Interministériel chargé des Stratégies de Lutte contre la Pauvreté [Interministerial Committee Responsible for Poverty Reduction Strategies] - CLP Local Planning Committee - CLSP Local Participatory Monitoring Committee - CNPDLP Conseil National des Politiques de Développement et de Lutte contre la Pauvreté [National Council on Development Policy and Poverty Reduction] - CPA Comprehensive Political Agreement - CRP Regional Planning Committee - CRSP Regional Participatory Monitoring Committee - CRT Caisse de Retraite du Togo - CSO Civil Society Organization - CTP-SRP Comité Technique de Pilotage de la Stratégie de Réduction de la Pauvreté [Technical Steering Committee for the Poverty Reduction Strategy] - CU-PRSP Coordination Unit for the Poverty Reduction Strategy Paper - CVD Village Development Committee - DEPONAT National Land Use Policy Statement - DGI Directorate General of Taxation - DGSCN Directorate General of Statistics and National Accounts - DGTCP Directorate General for the Treasury and Public Accounting - DOTS Directly Observed Treatment Short course - EBID ECOWAS Bank for Investment and Development - EC European Commission - ECOWAS Economic Community of West African States - EDF European Development Fund - EDILs Ecoles d'Initiative Locale [Local Initiative Schools] - EGAP Etats Généraux de l'Administration Publique [Estates General of Public Administration] - EIB European Investment Bank - EITI Extractive Industries Transparency Initiative - EPA Economic Partnership Agreement - EPI Expanded Programme on Immunization - FAGACE Fonds Africain de Garantie pour le Commerce Extérieur [African Guarantee Fund for External Trade] - FAIEJ Fonds d'Appui aux Initiatives Economiques des Jeunes [Youth Economic Initiatives Support Fund] - FAO Food and Agriculture Organization of the United Nations - F-PRS Full poverty reduction strategy - GDP Gross Domestic Product - GER Gross Enrollment Ratio - ISFM Integrated Soil Fertility Management - IWRM Integrated Water Resource Management - GPS Global Positioning System - HIP C Heavily Indebted Poor Countries - HIPC-I Heavily Indebted Poor Countries Initiative - HIV Human Immuno-Deficiency Virus - ICT Information and Communication Technologies - IFAD International Fund for Agricultural Development - IFG International Fertilizer Group - IMF International Monetary Fund - IPAP Interim Priority Action Plan - I-PRS Interim poverty reduction strategy - JITAP Joint Integrated Technical Assistance Program - MDGs Millennium Development Goals - MDRI Multilateral Debt Relief Initiative - MFI Microfinance Institution - MICS Multiple Indicator Cluster Survey - MTEF Medium-Term Expenditure Framework - MTFF Medium-Term Fiscal Framework - NFIU National Financial Intelligence Unit - NGO Non-Governmental Organization - OECD Organisation for Economic Co-operation and Development - OHADA Organization for the Harmonization of Business Law in Africa - OTP Office Togolais des Phosphates - OTP/IFG Office Togolais des Phosphates / International Fertilizer Group - PAP Priority Action Program - PASNAM National Microfinance Strategy Support Program - PAV Village Action Plan - PDC Community Development Program - PEFA Public Expenditure and Financial Accountability - PEMFAR Public Expenditure Management and Financial Accountability Review - PMCT Prevention of Mother to Child Transmission - PNDS National Health Development Plan - PNMJ National Program for the Modernization of Justice - PNSA National Food Security Program - PPMR Multiyear Microproject Program - PRGF Poverty Reduction and Growth Facility - PRIP Regional Public Investment Program - PRSP Poverty Reduction Strategy Paper - PTS Permanent Technical Secretariat - QUIBB Questionnaire Unifié des Indicateurs de Base du Bien-être [Standardized Questionnaire on the Basic Indicators of Wellbeing] - SAZOF Société d’Administration de la Zone Franche - SC Sectoral Committee - SIGFIP Integrated System of Public Finance Management - SISE Système d’Information et de Suivi-Evaluation [Information, Monitoring and Assessment System] - SLAT Schéma Local d’Aménagement du Territoire [Local Land Use Plan] - SME /SMI Small and medium-size enterprises/small and medium-size industries - SMETF Sectoral Medium-Term Expenditure Framework - SNAT Schéma National d’Aménagement du Territoire [National Land Use Plan] - SNDS Stratégie Nationale de Développement de la Statistique [National Statistics Development Strategy] - SNMF Stratégie Nationale de la Microfinance [National Microfinance Strategy] - SNPT Société Nouvelle des Phosphates du Togo - SOTOCO Société Togolaise de Coton - SRAT Schéma Régional d’Amélioration du Territoire [Regional Land Use Plan] - TdE Togolaise des Eaux - TFPs Technical and Financial Partners - TOFE Tableau des Opérations Financières de l’Etat [Table of Government Financial Operations] - UNCDF United Nations Capital Development Fund - UNDP United Nations Development Programme - UNESCO United Nations Educational, Scientific and Cultural Organization - UNFPA United Nations Population Fund - UNICEF United Nations Children’s Fund - UNS United Nations System - UTB Union Togolaise de Banque - WAEMU West African Economic and Monetary Union - WAMU West African Monetary Union - WB World Bank - WHO World Health Organization - WTO World Trade Organization *Executive Summary (page marker VII) and accompanying Acronyms and Abbreviations as presented in the source PDF.* ### EXECUTIVE SUMMARY ### _cr1033 - EXECUTIVE SUMMARY ### Context and method for drafting of the F-PRSP - The drafting of the Poverty Reduction Strategy Paper (PRSP) commenced in February 2001 and resulted in adoption of an interim paper in March 2008. - The Interim PRSP (I-PRSP) allowed Togo to resume international financial cooperation, obtain a three-year program under the Poverty Reduction and Growth Facility (PRGF), conclude agreements on arrears clearance or debt restructuring, and reach the Heavily Indebted Poor Countries (HIPC) Initiative decision point in November 2008. - Because reaching completion point is the next crucial stage, the Government embarked on preparation of the Full Poverty Reduction Strategy Paper (F-PRSP). Implementation through the Priority Action Program (PAP) is intended to promote synergy of sectoral and multi-sectoral measures. - The F-PRSP drafting process had four (04) main goals: - (i) refining of the diagnosis made in the Interim PRSP and adaptation of proposed measures to it; - (ii) growth based on solid and sustainable foundations for the country; - (iii) consideration of regional specificities in the poverty reduction strategy; and - (iv) greater involvement of non-State actors. - Government principles for the process: (i) broader and more autonomous participation of all development actors; and (ii) strengthening of the foundations laid by the interim poverty reduction strategy. - Participatory approach: consultations at three main levels — (i) drafting and adoption of the road map; (ii) diagnostic phase; and (iii) drafting and finalization consultations. All Technical and Financial Partners (TFPs) were consulted at all stages to facilitate alignment as advocated in the Paris Declaration. ### Achievements of the Interim PRSP - The Interim PRSP contributed to resumption of cooperation with the international community. - Government actions included preparation of the Interim Plan of Priority Measures (IPPM) and the Medium-Term Fiscal Framework (MTFF) to improve fiscal programming. - Governance and institutional reforms advanced: national reconciliation and political reform, strengthening of the rule of law and security, reforms in non-performing State enterprises and the banking sector. - Infrastructure rehabilitation and promotion of principal growth sectors, in particular agriculture. - Social sectors, human resources and employment: efforts made but much remains to be done to accelerate progress towards the MDGs. - Monitoring and evaluation arrangements: the institutional framework had not been created, adversely affecting implementation monitoring. ### The dimensions of poverty in Togo - Poverty incidence and distribution: - Over 60 percent of the Togolese population lives below the poverty line. - Incidence in rural areas: three households out of four are poor. - Incidence in urban areas: two out of five are poor. - Regions hardest hit: Savanes region (90.5 percent), Centrale region (77.7 percent), Kara region (75 percent). - 64.2 percent of the poor community is undernourished. - Data limitations and shocks: - The 2006 QUIBB survey data do not fully reflect the current situation due to outside shocks including the rise in food prices in 2008 and floods in 2007 and 2008. - The incidence of poverty probably increased by over 8.4 percent on average following the sharp price increases in 2008; growth was not strong enough to increase household earnings and offset the price increases. - MDGs status and issues to be resolved by 2015: - The second national report on progress towards the MDGs, validated in December 2008, concluded that at the current rate of progress and with sustained efforts, only MDG goals 2 and 6 (“Achieve universal primary education” and “Combat HIV and HIV/AIDS”) can be reached by 2015. - Other Goals are unlikely to be reached by 2015 but could be achieved later if issues are resolved, including: - (i) consolidation of political dialogue and national consensus; - (ii) mobilization of domestic and external resources; - (iii) more efficient public spending; and - (iv) institutional and human capacity-building. ### Pillars of the Full Poverty Reduction Strategy - Ultimate goal: achieve an effective and sustainable improvement in the people’s living conditions by tackling the main causes of poverty; the full strategy consolidates the interim strategy’s foundations. - The Government’s action rests on four (4) strategic pillars; cross-cutting topics include environment, HIV/AIDS, gender and human rights. - First pillar: Improvement of governance - Four (4) priority areas of intervention over the next three years: - (i) improving political governance; - (ii) promoting institutional governance; - (iii) implementing administrative reform; and - (iv) improving economic governance. - Second pillar: Consolidation of the foundations of strong and sustainable growth - Over the next three years the Government will create new foundations for progressively strong, sustainable and sustained growth through nine (9) priority areas: - (i) strengthening the structural reforms; - (ii) improving the business environment; - (iii) promoting sources of growth; - (iv) developing infrastructures to support growth; - (v) enhancing regional integration; - (vi) effectively managing natural resources, the environment and the living environment; - (vii) redistributing the fruits of growth; - (viii) creating jobs; and - (ix) promoting research. - Third pillar: Development of human capital - Activities will focus on: - (i) promoting the education and training system; - (ii) developing the health system and health services; - (iii) improving the nutritional level of the general public; - (iv) improving access to safe water and to sanitation infrastructure; and - (v) promoting gender equity and social protection. - Fourth pillar: Reduction of regional imbalances and community development - New strategic orientation compared with the interim strategy; aims to address inter- and intra-regional imbalances affecting poverty incidence. - Government intends: - (i) to improve local governance for effective participation of local organizations in the poverty reduction process; and - (ii) to develop regional and local potential to promote local development and prevent aggravation of imbalances. ### Macroeconomic framework for the strategy - Purpose: determine macroeconomic aggregates compatible with strategy choices, forecast mobilizable resources, priority expenditure, expected overall results, and list major absorption risks. - Baseline scenario (medium-term reform strategy) is based on: - (i) resumption of growth; - (ii) price stability; - (iii) consolidation of public finances; - (iv) a strong domestic contribution to the financing of the strategy; - (v) alignment of resources with national priorities; - (vi) sustainability of the balance of payments deficit; and - (vii) control of money supply. - Result: growth rising from 1.7 percent in 2009 to 4.1 percent in 2011. - Alternative scenario (acceleration towards meeting the MDGs): - Based on additional Official Development Assistance (ODA) mobilized under the initiative of the Secretary-General of the United Nations for the MDGs in Africa and G8 commitments in Gleneagles, resulting in higher growth rates over the period. - Risk analysis: implementation risks include: - (i) exogenous shocks (natural disasters, lack of good climate conditions, volatility of world prices for agricultural products, higher oil prices, etc.); - (ii) resource absorption capacity (cumbersome budgetary procedures, disbursement delays, capacity problems, etc.); - (iii) quality of resource assignment; - (iv) slow implementation of structural reforms, especially in energy, roads and telecommunications; - (v) pace of reforms to improve the business environment; and - (vi) presidential elections without clashes and without violence. - Non-State actors required to support implementation, monitoring and assessment: - (i) civil society; - (ii) the private sector; - (iii) development partners; and - (iv) beneficiaries. - Main constraints identified and priority measures envisaged to eliminate them and accelerate progress towards effective achievement of the MDGs. ### Institutional framework and mechanisms for implementing and monitoring the strategy - Institutional arrangements planned include: - (i) the National Council for Development Policy and Poverty Reduction (CNPDLP); - (ii) the Interministerial Committee Responsible for Poverty Reduction Strategies (CILSP); - (iii) the Technical PRSP Steering Committee (CTP); - (iv) the Permanent Technical Secretariat for the PRSP ((STP); - (v) the Sectoral PRSP Committees (CS); - (vi) the Regional Participatory Monitoring Committees (CRSP); and - (vii) the Local Participatory Monitoring Committees (CLSP). - The Government/Donor Committee and the Network of Civil Society Organizations are also involved. - Monitoring and assessment information system comprises three subsystems: - (i) monitoring households’ living conditions; - (ii) monitoring programs and projects; and - (iii) impact assessment. - Statistical capacity and dissemination: - Government formulated a National Statistics Development Strategy (NSDS), validated on December 2, 2008, giving pride of place to the Directorate General of Statistics and National Accounts (DGSCN) for supervision and coordination of statistical production. - Capacity-building: - Government intends to formulate a national capacity-building strategy to fill glaring needs and create a framework conducive to effective and efficient implementation of development projects and programs under the Priority Action Program. ### Introduction — contextual and demographic highlights - 1980s: Togo noted as a business hub due to commercial dynamism and export potential. - 1990s: political and social tension led to suspension of financial cooperation and deterioration of economic and social situation. - Togolese population estimated at 5,598,000 inhabitants in 2008 (51.3 percent women and 48.7 percent men). - Natural increase rate: 2.4 percent, compared with average growth of 1.1 percent during the previous decade. - The F-PRSP covers the period 2009-2011 and is the result of a participatory strategic planning exercise aligning with the MDGs and national programs. - Structure of the full PRSP: six (6) chapters covering drafting, achievements of the Interim PRSP, dimensions of poverty, strategic pillars and priority areas for 2009-2011, macroeconomic framework and financing, and institutional framework and monitoring. *Executive Summary — _cr1033 - EXECUTIVE SUMMARY* ### CHAPTER 1: THE F-PRSP DRAFTING CONTEXT AND METHOD ### CHAPTER 1: THE F-PRSP DRAFTING CONTEXT AND METHOD ### 1. THE F-PRSP DRAFTING CONTEXT - The Interim Poverty Reduction Strategy Paper (I-PRSP), adopted by the Government in March 2008, laid foundations for resumption of international financial cooperation. - The Government requested and obtained from the International Monetary Fund (IMF) a three-year program under the Poverty Reduction and Growth Facility (PRGF). - The PRGF program opened the way for the country to accede to the Heavily Indebted Poor Countries (HIPC) Initiative. - Satisfactory implementation of the PRGF and agreements on arrears clearance or debt rescheduling with multilateral and bilateral creditors enabled Togo to reach the HIPC decision point in November 2008. - Reaching the HIPC completion point is now the focus; agreed triggers with the Bretton Woods institutions include drafting and implementation of the Full Poverty Reduction Strategy Paper (F-PRSP). - The F-PRSP is presented as a channel for new measures to improve resource mobilization and utilization to achieve a considerable reduction in poverty. - The F-PRSP also provides the framework for accelerating structural reforms to transform the national economy and to enable access to the Multilateral Debt Relief Initiative (MDRI). - The F-PRSP will be the unifying framework for refocusing overall development planning and will consist of: - a Priority Action Program (PAP) related to sectoral and multisectoral planning and programming frameworks; and - a Medium-Term Expenditure Framework (MTEF) related to Sectoral Medium-Term Expenditure Frameworks (SMTEF). - Sectoral planning will be reviewed from the angle of results-based management to translate the F-PRSP into operational planning instruments. - The F-PRSP is intended as the reference framework for all development actors, including technical and financial partners (TFPs), in line with the principle of alignment advocated by the Paris declaration. ### 2. GOALS AND PRINCIPLES ADOPTED FOR THE DRAFTING OF THE F-PRSP - Four main goals pursued throughout the F-PRSP drafting process: - Refining of the Interim PRSP diagnosis and adaptation of measures to it; - Growth based on solid and sustainable foundations for the country; - Consideration of regional specificities in the poverty reduction strategy; - Greater involvement of non-State actors. - Two principles underpinning the drafting process: - Broader and more autonomous participation of all development actors; - Building on the foundations laid by the interim poverty reduction strategy. - Notes on the principles: - Broader and more autonomous participation considered (i) the current absence of political and social unrest and (ii) the context of the Interim PRSP; Government willingness to implement the Comprehensive Political Agreement was emphasized. - The Interim PRSP served as a learning exercise, increasing citizen awareness and readiness to play an active part in national development. - Implementation of the Interim PRSP revealed insufficient attention to certain concerns: land use, promotion of tourism, redistribution of the fruits of growth, improvement of the business environment, reduction of inter-and intra-regional imbalances. - New exogenous shocks required rethinking priorities: sharp increases in prices of essential goods (foodstuffs, cement, oil, etc.) and the flooding in 2008. - Specific studies identified during the interim strategy were conducted prior to drafting the F-PRSP. ### 3. DESCRIPTION OF THE PARTICIPATORY APPROACH TO THE F-PRSP DRAFTING - A participatory approach involved consultation of actors across all components of economic and social life, reflecting all points of view and all regions. - The paper was drafted to promote ownership by local communities and implementing actors. - All stages of the process were open to all development actors. Three main levels of expanded consultation were used: - First level: preparation of the road map for the process. - Second level: diagnostic phase. - Third level: consultations to finalize the F-PRSP and ensure ownership. - All the TFPs were consulted at all stages to facilitate alignment with the Paris Declaration. #### 3.1 First level of expanded consultation - Preparation of the road map: - After agreement by the PRSP technical steering team on the basic contents of the road map, four preliminary consultations were organized: with senior administration officials, the private sector, civil society, and the TFPs. - Five additional consultations were held in each of the country’s economic regions to brief grassroots development actors and ensure their involvement. - Opinions from these consultations were incorporated into the road map submitted at the national forum launching the F-PRSP drafting process in May 2008. - Organization of the national forum: - Chaired by the Prime Minister and attended by heads and senior officials of the administration and institutions of the Republic, non-State actors (trade unions, private sector, civil society), and TFPs. #### 3.2 Second level of expanded consultation - Diagnosis: - Two dimensions: - Work of thematic drafting groups composed of representatives of the administration, civil society, and the private sector; TFPs also participated. The goal was consensus on major development topics and combining concerns and sectoral priorities across society. - Independent contributions of all components of civil society and the private sector. - Thematic drafting groups (eight in number) covered: promotion of good governance; social sectors and employment; growth promotion; private sector and improvement of the business environment; land use and decentralization; environment and living environment; agriculture; poverty and targeting. Work was facilitated by resource persons made available by UNFPA and UNDP. - Specific workshops were organized with technical and financial support from UNDP, UNICEF, UNAIDS and UNESCO to ensure cross-cutting concerns (gender, human rights, HIV/AIDS, environment) were included. - Regional contributions were requested to ensure regional specificities and spatial dimensions of development were considered. - Drafting of the strategy: - A drafting team was established on the basis of thematic group reports, independent civil society and private sector contributions, regional contributions and other key national documents. - The drafting team composition: in equal numbers, representatives of the administration and of civil society, the private sector and resource persons. TFPs provided technical assistance during this phase. - Resource persons made available by certain TFPs reviewed the initial version to check coverage of environment, HIV/AIDS, gender and human rights. - Box 1: Methodology for independent contributions - Civil society: - CSOs established a 15-member coordinating group with an executive committee of five persons. - Working meetings with the PRSP Coordination Unit and experience-sharing (example: President of Social WATCH of Benin). - With UNDP financial assistance, six consultants (one for each region and one for Lomé) assisted the coordination group. - Central themes for consultations were identified; instruments for data collection and methodology were determined. - A one-day information and briefing session was organized for CSOs in the chief town of each region. - For data collection, three focus groups were set up in each prefecture; individual interviews with certain leaders complemented the sample. - Regional workshops validated proposed measures; results were collated nationally into a national report, amended by the coordination group, and validated at a national workshop. - Private sector: - About a dozen national corporations were mobilized. - Fifteen (15) delegates formed a national committee and set up a four-member national bureau to coordinate work. - A regional bureau of four members was set up in the five economic regions. - With UNDP financial support, the National Committee engaged a national consultant to formalize its contribution. - Seven (7) central themes were chosen to reflect private sector concerns. - The contribution was formalized in a document with two main parts (private sector diagnosis, proposed measures) and a logical framework annex reflecting progress indicators and allocation of roles and responsibilities. - Each part and the logical framework were divided into seven chapters or areas; the second part included boxes highlighting concerns raised during regional consultations. #### 3.3 Third level of expanded consultation - Finalization of the strategy: - After preparation of the first draft, regional and national consultations were organized on the preliminary version to secure public support for strategic choices, priority areas and actions. - Consultations allowed public ownership of the strategy and ensured the draft reflected public wishes. - Consultative workshops were organized with the National Assembly and the TFPs. - The National Assembly deputies urged that all development sectors be taken into account due to diversified and complex expectations of constituents. - TFPs emphasized the need for consistency between sectoral needs and the full poverty reduction strategy and made specific contributions to clarify priorities and measures. - National validation and adoption: - After incorporation of comments from consultations, the draft F-PRSP was submitted to a national validation workshop chaired by the Prime Minister, attended by all development actors (Government, institutions of the Republic, private sector, civil society, trade unions, TFPs). - Following national consensus, the paper was submitted to the Council of Ministers, which adopted it in May 2009. ### 4. TRANSITION TO CHAPTER 2 - Chapter 2 introduction: - Notes that while implementation of the November 2004 version of the Interim PRSP was very limited due to scarce resources, the March 2008 version became central to recovery and national reconstruction efforts with donor support. - Chapter 2 describes main processes launched by the Interim PRSP, progress in macroeconomic and structural reforms, and the implementation status of the interim strategy. *Source: CHAPTER 1: THE F-PRSP DRAFTING CONTEXT AND METHOD* ### 1. MAIN PROCESSES LAUNCHED BY THE INTERIM PRSP ### 1. MAIN PROCESSES LAUNCHED BY THE INTERIM PRSP ### Implementing instruments: IPPM and MTFF - Interim Plan of Priority Measures (IPPM): - Prepared for the Conference of Togo’s Development Partners, Brussels, September 2008. - Precursor of sectoral Medium-Term Expenditure Frameworks (MTEF). - Target period: 2008-2010. - Priority sectors: health, education, water and sanitation, agriculture, road infrastructure, energy, social action, administrative reform, democratic and economic governance. - Purpose: identify most urgent and crucial measures consistent with the macroeconomic envelope of the Interim PRSP. - Major difficulty: lack, in certain sectors, of well-formulated programs closely reflecting the Interim PRSP. - Medium-Term Fiscal Framework (MTFF): - Based on the macroeconomic framework of the Interim PRSP. - Establishes an overall expenditure envelope to be divided among main priority sectors over three (3) years. - Indicates priorities for each sectoral envelope to guide State budget preparation. - In 2008, MTFF included in documentation accompanying the draft budget law transmitted to the National Assembly for the first time. ### Resumption of cooperation with partners and financing outcomes - PRGF program with the International Monetary Fund: - Three-year program agreed in April 2008. - Emphasized: stable macroeconomic framework, transparent public finance management, fiscal consolidation, reform of main public enterprises, infrastructure rehabilitation. - Financing: US$108 million on concessional terms. - Satisfactory review in September 2008 launched the decision point process; decision point reached on November 25, 2008. - World Bank Economic Recovery and Governance Grant (ERGG): - Based on an Interim Strategy Note aligned with the Interim PRSP. - Three action pillars: improvement of economic governance and transparency; promotion of economic recovery and sustainable development; response to urgent social needs. - Enabled clearing of World Bank payment arrears and provided budget support of about US$150 million. - French Development Agency provided a bridge loan to clear arrears to the World Bank. - African Development Bank (AfDB) operations: - Target: clear arrears of about US$20 million. - Operation executed as a grant under the fragile States facility; cleared 99 per cent of arrears. - Remaining arrears cleared by a grant from France to respect the « pari passu clause ». - AfDB drafted an Interim Country Strategy Paper (I-CSP) focused on governance and capacity-building, and infrastructure rehabilitation or reconstruction. - Bilateral and other multilateral arrears clearance: - European Investment Bank operation with EDF financing; arrears to IFAD, Islamic Development Bank, and Arab Bank for Economic Development in Africa addressed similarly. - Paris Club meeting on June 12, 2008: Togolese debt treated under Naples terms — cancellation of two thirds of payment arrears and current maturities; rescheduling of remainder over a period of 23 years, with a five-year grace period. - Note: All arrears clearance operations were prerequisites for full resumption of cooperation and for HIPC Initiative qualification. ### Status of implementation: timing, data limitations, and 2008 shocks - Implementation began about 12 months prior to the report; assessment is preliminary. - Two main constraints on reporting: - No comprehensive institutional framework with sectoral respondents for systematic compilation of progress data. - Implementation instruments (IPPM, MTFF) were not properly designed with specific programs and monitoring indicators for systematic incorporation into budget programming. - Macroeconomic context in 2008: - Persistence of the energy crisis, curtailing business activity for part of the year. - Food crisis leading to a sharp average price increase of 8.4 percent compared with the preceding year. - Continuing floods causing collapse of main bridges on the principal national artery. - Combined effect of shocks largely responsible for deterioration of the macroeconomic framework in 2008. ### Improvement of political and economic governance - Political governance: - Progress since the Comprehensive Political Agreement (August 2006). - Government of National Union organized early legislative elections of October 2007. - National consultation conducted (with partners) to create a national commission on justice, truth and reconciliation. - Return to Togo of most persons who sought refuge after the April 2005 presidential election violence. - Political reforms: drafting of an opposition statute, adoption of the law on financing of political parties, reorganization of the Constitutional Court, reorganization of the National Human Rights Commission. - Rule of law and human rights: - Launch of the National Program for Promotion and Protection of Human Rights. - Creation of a unit to manage and organize regional information and briefing workshops on human rights. - Institutional reforms: - National Program for the Modernization of Justice advanced, including creation of a legislation and jurisprudence database. - National strategic framework adopted for modernization of the administration. - Economic governance and public finance transparency: - Steps to reflect WAEMU directives in national legislation. - Implementation of PEMFAR and PEFA recommendations held in 2008 in Togo. - Tax administration reforms: creation of a Research and Verification Directorate and a Directorate for Organization and Monitoring of Services; automation of tax return processing and accounting; classification of enterprises into three tax categories (large, medium-size and small enterprises); simplification for SMEs; creation of a reform steering committee. - Customs administration: improved automation, better codification of customs exemptions, improved monitoring of transit goods, introduction of a system of customs valuation. - Public expenditure: near elimination of spending under exceptional procedures; limitation of extrabudgetary expenditure; improved cash management and monitoring stabilized the primary fiscal balance and eliminated accumulation of domestic payments arrears. - Procurement: evaluation against OECD indicators showed noncompliance with international standards; reforms led to drafting of a new “Code of government procurement and delegation of public services” supported by a law on government procurement. - Budget management: centralization of State budget preparation under the Budget Directorate (Ministry of Economy and Finance); introduction of the Integrated System of Public Finance Management (SIGFIP); automation of régies financières; creation of the General Inspectorate of Finance; training in management reporting for the Directorate General of Treasury and Public Accounting. - Jurisdictional monitoring: establishment of the Audit Office delayed due to preparatory work; 2007 management accounts prepared in 2008; action plan adopted to operationalize the Audit Office; strategy adopted for clearance of domestic debt following its audit. - Anti-corruption: reactivation of process with adoption of anti-corruption law by Parliament and official launch of an anti-corruption campaign; Parliament ratified UN and African Union Conventions and ECOWAS Protocol Against Corruption; establishment of the National Financial Intelligence Unit to combat money laundering and terrorism financing. - Remaining governance and fiscal management challenges (listed verbatim): - (i) reduce discrepancies between expenditure forecasts and actual expenditure; - (ii) bring the mechanism for determining domestic payment arrears into line with the WAEMU provisions; - (iii) improve budget nomenclature so that it covers analysis needs; - (iv) ensure complete traceability of grant operations in the budget adopted and in the budget execution reports; - (v) launch the budget preparation cycle as early as possible so as to give ministries, departments and decision-making agencies time to prepare their draft budgets; - (vi) ensure complete consistency between investment budgets and medium-term expenditure forecasts; - (vii) improve management of the annual cash flow plan to achieve flexible budget execution spread over time; - (viii) make procurement arrangements more transparent and less centralized; - (ix) improve the visibility of the units providing primary services from their budget allocations; and - (x) improve, in light of the budget adopted, the content of budget execution reports. - Additional numeric point: over the period 2006-2008, such discrepancies amounted to over 10 percent. ### Consolidation of economic recovery and promotion of sustainable development - State enterprise reforms: - Société des Phosphates OTP/IFG disbanded and replaced by Société Nouvelle des Phosphates du Togo (SNPT); negotiations begun to obtain resources for equipment replacement to increase production. - Société Togolaise de Coton (SOTOCO): audit found poor governance; measures taken to clear arrears owed to producers and the banking system; a new enterprise created with producer participation in capital (Nouvelle Société Cotonnière du Togo). - Banking sector measures: - Banque Togolaise pour le Commerce et l’Industrie under provisional administration since February 2008 to implement restructuring and privatization per WAMU Banking Commission recommendations. - Banque Internationale pour l’Afrique (BIA-Togo): Belgolaise withdrawal led to State acquisition for one franc and new management to implement restructuring and privatization. - Securitization process initiated for non-performing loans: Government to issue bonds replacing non-performing loans owed to State and private banks by public enterprises; bonds to be reimbursed by the State over a period of seven years; authorization for refinancing obtained from the Board of Governors of the Central Bank of West African States. - Port and trade facilitation: - Autonomous Port of Lomé: handling operations transferred to private operators; customs installed a scanner; projects for a third dock and a basin with agreements signed with partners. - Energy sector and subsidies: - Subsidies granted to Compagnie Energie Electrique du Togo (CEET) to repay arrears to Communauté Electrique du Bénin (CEB) and to purchase electric generators. - Construction commenced on a new thermal power plant in the port zone (ContourGlobal project) to run initially on diesel and eventually on gas. - Food security and agriculture: - National Food Security Program (PNSA) formulated and validated for 2008-2015, aiming to promote the right to food and combat hunger. - Budget execution in priority sectors (investment and operating expenditure execution): - Operating expenditure execution rates generally satisfactory. - Investment expenditure execution rates: - Transport sector: 17 percent - Energy sector: 2 percent - Agriculture sector: 85 percent (note: partly due to the small amount of resources allocated) - Allocation to agriculture sector: 3 percent of resources. - Concern: low investment execution rates risk jeopardizing achievement of the MDGs. - Sustainable development and environment: - Framework Law on the Environment adopted in May 2008, establishing principles for sustainable development and creating the National Sustainable Development Commission and provision for local commissions. - Creation of a National Environmental Management Agency and a National Environment Fund to develop sector financing strategy and mobilize resources. - Continued engagement: National Capacity-Building Self-Assessment (ANCR) projects, National Action Program for Adaptation to Climate Change, issuance of the second national communication on climate change. - Creation of the national platform for disaster prevention and management in the context of the Hyogo Framework for Action. *From: _cr1033 - 1. MAIN PROCESSES LAUNCHED BY THE INTERIM PRSP* ### 2.3 Development of social sectors, human resources and employment ### _cr1033 - 2.3 Development of social sectors, human resources and employment ### Strategic objective and areas of intervention - Main areas: promotion of the educational and training system; development of the health system and health care; improvement of the nutritional status of the population; improved access to safe drinking water and sanitation infrastructure; promotion of gender equity and equality, employment, social protection and community development. ### Education - Sectoral strategy paper being finalized for the period 2010-2020 with the priority objective of achieving Millennium Development Goal 2. - Key indicators and actions: - 66.1 percent of pupils completing the primary cycle. - Gender parity index of 0.93. - Rebuilt most schools destroyed by flooding in 2007 and 2008. - 1,374 substitute teachers given civil servant status. - Recruited 2,015 new teachers for primary and secondary schools in 2008. - Starting academic year 2008-2009, schooling entirely free of charge at public pre-schools and primary schools. - Re-opened the Notsé Teacher Training School where 1,600 new teachers will be trained starting in 2009. - Subsidy of over 200 million CFA francs for Local Initiative Schools (EDIL). - Budget execution in 2008: - Education sector execution rate: 106 percent. - Operating expenditure execution rate: 108 percent. - Investment expenditure execution rate: 70 percent. - Policy implication: - Quantitative and qualitative improvement in the execution of public investments in the sector is required to achieve the MDGs to which education contributes. ### Health - National Health Development Plan (PNDS) for 2002-2006 and new Plan for 2009-2013 provide measures to upgrade the health system, improve maternal and child health, and combat diseases of poverty. - Government commitments: - Improve reproductive health and reduce mortality among children under five by improving delivery of quality reproductive health services and reproductive health information availability. - Outcomes and prospects: - Definite improvement in maternal and child health, setting Togo on a path to attain MDG 5 concerning the improvement of maternal health. - Child mortality reduction goal appears out of reach given the current situation. - Budget execution in 2008: - Investment expenditure execution rate: 66 percent. - Operating expenditure execution rate: 96 percent. - Overall sector execution rate: 78 percent. - Policy implication: - Execution of investment expenditure must be truly improved to enable poverty reduction and MDG achievement. ### Disease-specific national programs - National programs with five-year strategic frameworks set up to combat HIV/AIDS, leprosy and tuberculosis. - HIV incidence: - Decrease in new HIV infections nationwide, particularly in the 15 to 24 age group, from 3.38 percent in 2006 to 2.80 percent in 2008. - If efforts are maintained, Togo could continue to reverse the trend and halt the spread of HIV by 2015. ### Nutrition and child survival - Government measures: - Monitor growth of children under five years of age. - Provide nutritional care. - Prepare a package of activities on good practices relating to child survival and development (feeding of infants and young children, good hygiene). - Provision of micronutrient supplements. - Assessment: - Current efforts are insufficient; must be upgraded and extended to all regions with emphasis on a community approach to reach as many people as possible. ### Water and sanitation - Budget execution in 2008: - Investment expenditure execution rate: 61 percent. - Policy implication: - Efforts need to be redoubled to remain on track to meet the MDG targets for the sector. - Budget execution (financial and physical) should be a major concern. ### Employment, wages and civil service recruitment - Government actions in 2008: - March 2008: recruited 704 health workers. - December 2008: recruited 4,000 new civil servants, including 35 persons with disabilities. - Minimum wage approximately doubled, from CFAF13,757 to CFAF28,000. ### Gender equity and equality - Since adoption of the national strategy for mainstreaming gender: - Validation of the national policy for gender equity and gender equality. - Creation by decree of gender focal points in nine (9) key development sectors. - Training of senior officials and members of Parliament in gender-based planning and budgeting. ### Protection of children and persons with disabilities; youth policy - Child protection measures: - Adoption of Law No. 2007-017 of July 6 promulgating the Children’s Code. - Nationwide assembly on strategies for combating human trafficking, particularly trafficking of women and children. - Creation of a telephone hot line (Toll-free number 111) for child protection. - Ratification of the Hague Convention on Intercountry Adoption. - Ministry for Social Action, Promotion of Women and Protection of Children and Elderly Persons has formulated a policy and strategic plan for the protection of children. - Persons with disabilities: - Ratification in 2008 of the Convention on the Rights of Persons with Disabilities. - Youth: - National policy on youth for the period 2008-2012 adopted. - Establishment of the National Youth Council as a national platform. ### Implementation, monitoring and assessment mechanism (start of 2.4) - Interim PRSP specified institutional framework for PRSP implementation and monitoring: - National Council on Development Policy and Poverty Reduction (Conseil national des politiques de développement et de lutte contre la pauvreté). - Interministerial Committee Responsible for Poverty Reduction Strategies (Comité Interministériel chargé des stratégies de lutte contre la pauvreté, CISLP). - PRSP Technical Steering Committee (Comité Technique de pilotage du DSRP). - Sectoral PRSP Committees. - Regional Participatory Monitoring Committees (Comités régionaux de suivi participatif). - Local Participatory Monitoring Committees (Comités locaux de suivi participatif). - A Permanent Technical Secretariat is to assist these bodies to provide day-to-day coordination and permanent expertise. - Status and constraints: - None of these bodies have yet been set up. - PRSP monitoring and assessment plan has not been formulated, although studies have been made on the process for making this arrangement operational. - Failure to set up sectoral committees in 2008 prevented correct monitoring of implementation of priority measures and accurate calculation and analysis of indicators. - Lack of skilled personnel was largely responsible for the delay in implementing the institutional framework. - Authorities have not fully mastered modern instruments of planning, programming, budgeting and monitoring and assessment. *Source: _cr1033 - 2.3 Development of social sectors, human resources and employment* ### 87.1 percent of individuals. It is followed by ### _cr1033 - 87.1 percent of individuals. It is followed by ### Regional monetary poverty: la Kara region - Incidence of poverty by prefecture (QUIBB-2006): - Binah: 87.1 - Bassar: 81.3 - Kéran: 80.5 - Doufelgou: 76.7 percent - Dankpen: 76.2 percent - Assoli: 73.4 percent - Kozah: 65.9 percent - Kozah accounts for 27.8 percent of the poor of the region (largest absolute number of poor given population size). - Assoli accounts for 8.9 percent of the region’s poverty (smallest number of poor). ### Regional monetary poverty: Savanes region - Incidence of poverty by prefecture (QUIBB-2006): - Kpendjal: 96.5 percent - Tandjoaré: 90.3 percent - Oti: 89.3 percent - Tône: 88.4 percent - Tône, given its demographic weight, accounts for 43.2 percent of the region’s poverty (largest share). - Tandjoaré contributes 13.9 percent of the region’s poverty (smallest share). ### Poverty and inequality - Gini inequality coefficient for Togo (QUIBB survey, 2006): 33.5 percent. - Gini indices by area: - Urban: 31.1 percent - Rural: 29.8 percent - Urban–rural inequalities account for more than 53 percent of inequality at the national level. - Distribution of public education subsidies per capita: - Poorest 20 percent: CFAF5,607 - Wealthiest 20 percent: CFAF10,376 - Distribution of public health subsidies: - Poorest 50 percent receives 20 percent of public subsidies to teaching hospitals. - Poorest 50 percent receives 30 percent of subsidies to hospitals and health centers. - Access to electricity: - Poor: 11.1 percent - Nonpoor: 42.9 percent - Access to safe drinking water: - Poor: 41.0 percent - Nonpoor: 54.3 percent ### Poverty and vulnerability - Vulnerability rate (QUIBB survey): 81.8 percent, distributed as: - Long-term poor: 39.6 percent - Short-term poor: 22.0 percent - Vulnerable nonpoor: 20.2 percent - Implication: without action, poverty incidence could reach 81.8 percent. - Vulnerability by area: - Rural: 87.4 percent - Cities: 71.0 percent - Vulnerability among urban nonpoor: 34.2 percent - Vulnerability among rural nonpoor: 13.0 percent - Children: - Children account for 48.2 percent of the population of Togo. - About 32 of every 100 children work. - Child labor by household poverty status: - Children from poor households: 36.3 percent - Children from nonpoor households: 17 percent - Child labor by area: - Rural: 36.9 percent - Cities: 14.7 percent - Health and disasters increase vulnerability: HIV/AIDS, leprosy, tuberculosis, and recurrent natural disasters exacerbate poverty and household vulnerability. ### Determining factors of poverty - Main determinants: place of residence, household size, health of members, household’s factors of production; also education level, occupational category, sex, age, marital status of head. - Household size: - More than 90 percent of the poor are in households comprising at least ten persons. - 24.5 percent of poor are in households with not more than three members. - Disability of household head (Lomé): household with a disabled head is 17.2 percent more likely to be poor than one with an able-bodied head. - Production assets in rural areas (land, number of cattle) significantly affect poverty incidence. - Education level of household head and poverty incidence: - No schooling: 63.9 percent of households are poor. - Completed primary school: 44.9 percent. - Completed secondary school: 20.5 percent. - Post-secondary studies: 8.5 percent. - Education effect is greater in rural than urban areas; example given: a rural household where the head has completed primary school is 50 percent less likely to be poor than an urban household with the same schooling. - Poverty by occupational category of household head: - Independent farmers: 78.8 percent - “Inactive or unemployed”: 55.2 percent - Wage-earning/salaried employees (public sector): 38 percent - Wage-earning/salaried employees (private sector): 37 percent - Poverty by sex and age of household head: - Male-headed households poor: 51 percent - Female-headed households poor: 34.8 percent - Head aged 15-30: poverty incidence 27.7 percent - Head aged 31-55: 49.8 percent - Head over 55: 56.6 percent - Marital status of head: - Polygamous-headed households: 63.9 percent poor - Monogamous-headed households: 49.9 percent poor - Widow/widower-headed households: 42.2 percent poor - Separated/divorced-headed households: 23.4 percent poor - Never married-headed households: 12.6 percent poor ### Non-monetary approach to poverty — Education (national and regional indicators) - Nationwide gross enrollment ratio: 112 percent; parity index: 0.92. - Gross enrollment ratio at primary level by region (highest/lowest): - Highest: Centrale region (125 percent). - Lowest: Savanes region (96 percent). - Gender parity index by region: - Highest: Maritime region (1.06). - Lowest: Savanes region (0.77). - Table 3 (gross enrollment ratio % and parity index by region): - Lomé - Golfe: Girls 104; Boys 127; Total 114; Parity index 0.82 - Maritime: Girls 126; Boys 119; Total 122; Parity index 1.06 - Plateaux: Girls 103; Boys 106; Total 105; Parity index 0.97 - Centrale: Girls 122; Boys 128; Total 125; Parity index 0.95 - Kara: Girls 104; Boys 115; Total 110; Parity index 0.90 - Savanes: Girls 83; Boys 107; Total 96; Parity index 0.77 - Nationwide: Girls 107; Boys 116; Total 112; Parity index 0.92 - Selected prefecture-level gross enrollment ratios and parity indices (Annuaire des statistiques scolaires 2006-2007): - Maritime region (gross enrollment ratios): - Golfe 114 - Lacs 120 - Vo 122 - Yoto 129 - Zio 123 - Avé 114 - In Avé, parity index 1.16; in Yoto, parity index about 1.00. - Plateaux region (gross enrollment ratios): - Ogou 91 - Est-Mono 136 - Amou 112 - Wawa 112 - Danyi 104 - Kloto 120 - Agou 94 - Haho 96 - Moyen-Mono 90 - Kloto and Amou parity index 1.06; Moyen-Mono parity index 0.76. - Centrale region (gross enrollment ratios): - Tchaoudjo 116 - Tchamba 148 - Sotouboua 120 - Blitta 129 - Tchamba parity index 0.88; Tchaoudjo and Blitta parity index 0.97. - la Kara region (gross enrollment ratios): - Kozah 112 - Binah 124 - Assoli 112 - Bassar 103 - Dankpen 102 - Doufelgou 110 - Kéran 111 - Dankpen and Bassar lowest gross rates: 102 percent and 103 percent respectively. - Kozah parity index 1.08; la Kéran parity index about 0.71. - Savanes region (gross enrollment ratios): - Tone 106 - Tandjoare 126 - Kpendjal 66 - Oti 81 - Tandjoaré parity index 0.83; Kpendjal parity index 0.66. ### Non-monetary approach to poverty — Health - Key health targeting indicators: coverage of health infrastructures, proportion of births assisted by skilled medical personnel, vaccination coverage, morbidity due to leprosy, HIV/AIDS prevalence. - Percentage of births assisted by skilled medical personnel by region: - Lomé-Golfe: 97.3 percent - Maritime: 71.4 percent - Plateaux: 56.9 percent - Centrale: 54.4 percent - la Kara: 53.4 percent - Savanes: 38.9 percent - Vaccination coverage follows similar regional trends, except for Centrale region (different pattern noted). - Use of treated mosquito nets (MICS 3, 2006): pregnant women in Centrale, la Kara and Savanes regions use treated mosquito nets more than in other regions. - Access to health services (proximity): - In Maritime and Plateaux regions, over 70 percent of households live less than three kilometers from the nearest health center. - For the other regions, the figure is at most (value truncated in source). *Source: QUIBB-2006; Annuaire des statistiques scolaires 2006-2007; MICS 3 (2006).* ### 67.3 percent. The fact that there are fewer ### _cr1033 - 67.3 percent. The fact that there are fewer ### Health: national overview and key indicators - HIV prevalence in the general population was estimated at 3.2 percent in 2006. - Nationwide health indicators (QUIBB, 2006; CNLS, 2006; Ministry of health, 2008): - Number of health units per 10,000 inhabitants (Nationwide): 3.2 - Prevalence of HIV-HIV/AIDS (Nationwide): 3.2 percent - % of births attended by skilled medical personnel (Nationwide): 63.3 - % of fully vaccinated children (Nationwide): 63.8 - % of pregnant women using an insecticide-treated mosquito net (Nationwide): 30.7 - % of households living less than 3 km from the nearest health center (Nationwide): 71.2 - Rural health units per 10,000 inhabitants (Nationwide): 2.7 - Urban health units per 10,000 inhabitants (Nationwide): 2.3 - The fact that there are fewer health units per 10,000 inhabitants in the Maritime and Plateaux regions is partly due to the heavy concentration of population in these regions. - Regional HIV prevalence is lower in the more northern areas. ### Regional health performance — summary of main disparities - Lomé and Golfe: best overall health indicators; HIV/AIDS prevalence 6.3 percent in 2008 in Lomé and its outskirts. - Maritime: regional HIV/AIDS prevalence 4.5 percent in 2008; poorest prefectures Vo, Yoto and Zio have the worst health access. - Plateaux: regional HIV/AIDS prevalence 3.5 percent in 2008; Est Mono and Haho have the weakest access. - Centrale: regional HIV/AIDS prevalence 3.8 percent in 2008. - La Kara: regional HIV/AIDS prevalence 2.5 percent in 2008. - Savanes: regional HIV/AIDS prevalence 1.4 percent in 2008; lowest among regions. ### Lomé and Golfe (commune vs outskirts) - Morbidity rate: 20.4 percent (Lomé commune) and 22.3 percent (Golfe prefecture). - Prevalence of malaria: 64.5 percent (Lomé commune) and 66.0 percent (Golfe). - Prevalence of diarrhea: 7.8 percent (Lomé commune) and 10.9 percent (Golfe). - % of births assisted by skilled medical personnel: 98.1 percent (Lomé commune) and 94.4 percent (Golfe). - % of fully vaccinated children under EPI: 67.0 percent (Lomé commune) and 62.7 percent (Golfe). - % of households living less than 3 km from the nearest health center: 84.8 percent (Lomé commune) and 76.7 percent (Golfe). - Health units per 10,000 inhabitants: 0.7 (Lomé commune) and 0.4 (Golfe). ### Maritime region — prefecture-level findings - Proportion of births assisted by skilled medical personnel (selected prefectures): - Golfe: 97.3 - Lacs: 84.6 - Avé: 76 - Yoto: 71.9 - Vo: 60.5 - Zio: 60.6 - % of households living less than 3 km from nearest health center: - Vo: 77.9 percent - Yoto: 83.3 percent - Zio: 75.5 percent - Avé: 77.5 percent - Lacs: 93.0 percent - Maritime HIV/AIDS prevalence: 4.5 percent in 2008. ### Plateaux region — prefecture-level findings - Proportion of births assisted by skilled medical personnel (selected prefectures): - Est-Mono: 23.4 - Haho: 45.9 - Amou: 50.2 - Ogou: 55 - Kloto: 73.1 - Wawa: 73.2 - Danyi: 65.3 - Agou: 51.9 - Moyen-Mono: 57.2 - Regional average % of births assisted by skilled medical personnel: 56.9 percent. - % of households living less than 3 km from nearest health center: - Est Mono: 39 percent - Haho: 62.4 percent - Regional average: 71.0 percent - Plateaux HIV/AIDS prevalence: 3.5 percent in 2008. ### Centrale region — prefecture-level findings - Proportion of births assisted by skilled medical personnel (selected prefectures): - Tchaoudjo: 67 - Tchamba: 57.6 - Blitta: 50.5 - Sotouboua: 41.9 - % of households living less than 3 km from nearest health center (selected prefectures): - Blitta: 55.3 percent - Sotouboua: 61.6 percent - Tchaoudjo: 68.5 percent - Tchamba: 75.1 percent - Centrale HIV/AIDS prevalence: 3.8 percent in 2008. ### La Kara region — prefecture-level findings - Proportion of births assisted by skilled medical personnel (selected prefectures): - Assoli: 77.4 - la Kozah: 75.5 - Doufelgou: 64.7 - Binah: 50 - Dankpen: 44.8 - Keran: 30.3 - Bassar: 29.8 - % of households living less than 3 km from nearest health center (selected prefectures): - la Binah: 61.6 percent - Bassar: 36.1 percent - la Kéran: 51.3 percent - Dankpen: 65.5 percent - Doufelgou: 87.,9 percent - Assoli: 94.5 percent - la Kozah: 77.4 percent - La Kara HIV/AIDS prevalence: 2.5 percent in 2008. ### Savanes region — prefecture-level findings - Proportion of births assisted by skilled medical personnel (selected prefectures): - Tône: 42.0 - Kpendjal: 41.2 - Tandjoaré: 34.9 - Oti: 32.7 - % fully vaccinated children under EPI (selected prefectures): - Tône: 69.3 percent - Kpendjal: 63.7 percent - Tandjoaré: 59.6 percent - Oti: 50.5 percent - % of households living less than 3 km from nearest health center: - Kpendjal: 50.4 percent - Tandjoaré: 45.5 percent - Oti: 33.8 percent - Savanes HIV/AIDS prevalence: 1.4 percent in 2008 (lowest of all regions). ### Water: indicators and national picture - Two indicators used: - Access to safe drinking water (QUIBB survey): counts faucets, protected wells, bore wells as safe; measures household use for drinking (does not account for distance). - Population supplied with safe drinking water (Directorate General of Water and Sanitation): compares population supplied and safe drinking water potential expressed as WPE (Water Point Equivalent). - Definition: 1 WPE corresponds to a source able to supply a population of 250 persons in satisfactory conditions. Examples: hand-pumped bore well = 1 WPE; separate water point = 4 WPE; public standpipe = 2 WPE. - Correlation: regions with lowest access rates generally have small populations supplied. - Preferred indicator for analysis: population supplied with safe drinking water. ### Water: nationwide indicators (Directorate General of Water and Sanitation-2007) - Access to safe drinking water (%) by region: - Maritime: 35.6 - Plateaux: 26.6 - Centrale: 57.1 - Kara: 56.6 - Savanes: 38.4 - Nationwide: 39.0 - Potential population supplied with safe drinking water (%) by region: - Maritime: 33 - Plateaux: 29 - Centrale: 45 - Kara: 43 - Savanes: 26 - Nationwide: 34 - Regions with largest potential population supplied: Centrale (45 percent) and la Kara (43 percent). Savanes is worst positioned with 26 percent potential population supplied. ### Water: regional breakdowns (rural / semi-urban / urban highlights) - Maritime region: - Rural potential population supplied (selected prefectures): - Avé: 52 - Zio: 45 - Yoto: 17 - Golfe: 18 - Vo: 7 - Lacs: 7.5 - Semi-urban: Avé 55 percent best; Yoto 2 percent and Lacs 3.3 percent worst. - Urban potential population supplied: - Zio: 50 - Golfe: 44 - Yoto: 25 - Lacs: 26 - Note: Yoto has the highest access to safe drinking water despite low potential. - Plateaux region: - Rural potential population supplied (selected prefectures): - Est-Mono: 44 - Ogou: 34 - Agou: 30 - Haho: 28 - Amou: 27 - Kloto: 28.5 - Danyi: 9 - Moyen-Mono: 22 - Wawa: 14.4 - Semi-urban: Amou best at 54 percent; Haho worst at 13 percent. - Urban: Haho best at 68 percent; Amou worst at 5 percent. - Centrale region: - Rural potential population supplied (selected prefectures): - Sotouboua: 62 - Tchamba: 47 - Blitta: 45 - Tchaoudjo: 31 - Semi-urban rates: - Tchamba: 86 - Sotouboua: 68 - Tchaoudjo: 53 - Blitta: 45 - Urban: Tchamba best at 35 percent; Sotouboua worst at 16 percent. - La Kara region: - Rural potential population supplied (selected prefectures): - Dankpen: 65 - Bassar: 53 - Keran: 38 - Kozah: 32 - Doufelgou: 30 - Assoli: 30 - la Binah: 26 - Semi-urban: Assoli 79 and Bassar 77 percent best; la Binah worst at 14 percent. - Urban: Doufelgou best at 57 percent; la Binah and la Kéran worst at 26 percent each. - Savanes region: - Rural potential population supplied (selected prefectures): - Oti: 46 - Tone: 25.6 - Tandjoare: 22 - Kpendjal: 20 - Semi-urban: Oti 23 percent and Tandjoaré 24 percent best; Tône 10 percent and Kpendjal 13 percent worst. - Urban: Oti best at 54 percent; Tandjoaré virtually zero potential supply. *Source: QUIBB, 2006; CNLS, 2006; Ministry of health, 2008; Directorate General of Water and Sanitation-2007* ### 2.4 Sanitation ### 2.4 Sanitation ### Nationwide sanitation indicators and summary findings - Primary targeting indicator: proportion of the population using latrines (including pour-flush latrines with sewage systems or septic tanks and covered or improved open-air latrines). - Secondary indicators: percentage of school and health structures equipped with latrines and modern water points. - Regional proportions of the population using latrines (Table 6): - Lomé and outskirts: 78.2 percent - Maritime: 21.2 percent - Centrale: 20.5 percent - Plateaux: 15.6 percent - La Kara: 11.6 percent - Savanes: 8.5 percent - Percentage of school infrastructures equipped with latrines and modern water points (Table 6): - Lomé and outskirts: _ (not provided) - Maritime: 4.0 percent - Plateaux: 4.0 percent - Centrale: 26.0 percent - Kara: 1.0 percent - Savanes: 15.0 percent - Percentage of health facilities equipped with latrines and modern water points (Table 6): - Lomé and outskirts: _ (not provided) - Maritime: 15.0 percent - Plateaux: 12.0 percent - Centrale: 50.0 percent - Kara: 9.0 percent - Savanes: 25.0 percent - Observed national issues: - Lomé and its outskirts combine high latrine use with uncontrolled release of sewage sludge, resulting in pollution of surface and ground water and exposing the population to diseases. - The Maritime, Plateaux, and La Kara regions exhibit supply problems for school infrastructures equipped with latrines and modern water points. - The La Kara region shows a particularly critical situation for health facilities equipped with latrines and modern water points. ### Regional and prefecture-level findings - Lomé-Golfe - Golfe prefecture (outskirts): latrine use 56.3 percent - Lomé commune: latrine use 81.4 percent - Note: high latrine use coexists with uncontrolled sewage release and water pollution. - Maritime region (regional averages: latrine use 21.2 percent; school infrastructures 4.0 percent; health facilities 15.0 percent) - Prefecture latrine use: - Golfe: 78.2 - Lacs: 36.4 - Vo: 16.5 - Yoto: 19.0 - Zio: 18.8 - Avé: 7.6 - Worst-performing prefectures for school infrastructures equipped with latrines and modern water points: - Yoto: 1 percent - Zio: 2 percent - Worst-performing prefecture for health facilities equipped with latrines and modern water points: - Zio: 8 percent - Plateaux region (regional averages: latrine use 15.6 percent; school infrastructures 4.0 percent; health facilities 12.0 percent) - Prefecture latrine use: - Kloto: 39.4 - Ogou: 17.0 - Haho: 14.5 - Amou: 12.4 - Agou: 9.9 - Wawa: 5.3 - Danyi: 5.0 - Moyen-Mono: 3.4 - Est-Mono: 1.9 - Worst-performing prefectures for school infrastructures equipped with latrines and modern water points: - Moyen-Mono: 1 percent - Danyi: 2 percent - Ogou: 2 percent - Wawa: 3 percent - Worst-performing prefectures for health facilities equipped with latrines and modern water points: - Wawa: 6 percent - Haho: 6 percent - Centrale region (regional averages: latrine use 20.5 percent; school infrastructures 26.0 percent; health facilities 50.0 percent) - Prefecture latrine use: - Tchaoudjo: 34.3 - Tchamba: 33.3 - Sotouboua: 6.6 - Blitta: 7.0 - Worst-performing prefectures for school infrastructures equipped with latrines and modern water points: - Blitta: 13 percent - Sotouboua: 25 percent - Worst-performing prefectures for health facilities equipped with latrines and modern water points: - Blitta: 42 percent - Tchaoudjo: 42 percent - La Kara region (regional averages: latrine use 11.6 percent; school infrastructures 12.0 percent; health facilities 9.0 percent) - Prefecture latrine use: - Assoli: 24.6 - la Kozah: 21.0 - Binah: 5.4 - Bassar: 1.9 - Dankpen: 4.0 - Doufelgou: 4.5 - la Kéran: 8.0 - Worst-performing prefectures for school infrastructures equipped with latrines and modern water points: - Bassar: 3 percent - Assoli: 4 percent - Dankpen: 9 percent - Worst-performing prefectures for health facilities equipped with latrines and modern water points: - Bassar: 7 percent - Dankpen: 4 percent - la Kozah: 4 percent - Savanes region (regional averages: latrine use 8.5 percent; school infrastructures 15.0 percent; health facilities 25.0 percent) - Prefecture latrine use: - Tône: 13.3 - Tandjoaré: 5.7 - Kpendjal: 4.9 - Oti: 3.8 - Worst-performing prefectures for school infrastructures equipped with latrines and modern water points: - Oti: 8 percent - Tandjoaré: 8 percent - Worst-performing prefectures for health facilities equipped with latrines and modern water points: - Oti: 16 percent - Tandjoaré: 11 percent ### MDG context for sanitation and water (selected indicators from Table 7) - Proportion of the population using a source of safe drinking water (2006 current value): 57.1% — MDG target value for 2015: 75.0% - Proportion of the population with access to improved sanitation (2006 current value): 31.7% — MDG target value for 2015: 50% - Note: The second national MDG monitoring report (approved December 2008) concluded that, at the current pace of progress, only MDGs 2 and 6 could be achieved by 2015; goals including “Ensure environmental sustainability” and targets for water and sanitation are unlikely to be achieved by 2015 without sustained efforts. ### Implications and priorities (implicit from findings) - Prioritize expansion of latrine access and improved sanitation infrastructure outside Lomé, with attention to Maritime, Plateaux, La Kara, and Savanes regions. - Increase provision of latrines and modern water points in school and health infrastructures, focusing on prefectures with single-digit coverage (examples: Yoto, Zio, Moyen-Mono, Bassar, Oti). - Implement measures to control sewage sludge release in Lomé and its outskirts to prevent pollution of surface and ground water. - Accelerate progress to meet MDG targets for safe drinking water (75.0%) and improved sanitation (50%) by 2015 through targeted investments in regions and prefectures with the lowest coverage. *Source: Directorate General of Water and Sanitation - 2007* ### 4.2 Challenges to achieving the MDGs in Togo ### 4.2 Challenges to achieving the MDGs in Togo ### Key challenges (overview) - Achievement of the MDGs depends on: (i) consolidation of political dialogue and consensus on national development priorities; (ii) mobilization of the resources required to implement development programs; (iii) efficiency of public spending; and (iv) rapid creation of essential institutional and human capacity to manage key public administration functions. - Social mobilization and effective citizen participation from design to execution of development programs (health, education, water resource management) are essential, including strong involvement and capacity-building of civil society. ### Political dialogue, consensus, and governance - Consolidation of political dialogue and national consensus is a foundation for political stability and is a prerequisite for achievement of the MDGs. - National consensus requires: a functioning pluralist political and institutional system, rule of law respectful of human rights, counter-powers (press, civil society) with necessary capacities, and economic governance based on effectiveness, competence, efficiency, transparency, and accountability. - Specific governance objectives and measures: - Continue consolidation of political dialogue and reforms to strengthen social cohesion to create a climate conducive to growth and poverty reduction. - Promote participation by citizens at all levels; involve civil society in preparation of sectoral strategies and capacity-building. - Strengthen political governance through: consolidation of the bases of democracy; strengthening capacities of main democratic institutions; reform of the army to guarantee neutrality; promotion of civism; and close involvement of civil society in public affairs management. - Institutional actions mentioned: - Improve the electoral framework and strengthen the National Independent Electoral Commission. - Set up the Truth, Justice and Reconciliation Commission and make it operational. - Strengthen press role via capacity-building, equitable access to information, human and technical training, and promotion of democratic values. - Capacity-building in National Assembly, Constitutional Court, National Human Rights Commission, High Audiovisual and Communication Authority. - Implement national strategies: consolidation of democracy and peace for development, national civic training plan, national program for promotion and protection of human rights. ### Resource mobilization — growth, domestic revenue, and external aid - Growth requirements: - Simulations show average economic growth of 7 percent over a long period would, all other things being equal, make it possible to achieve the poverty reduction goal of the MDGs by 2015. - Growth must be poverty-reducing and job-creating, with emphasis on equitably distributed growth that helps the poorest people. - Domestic revenue challenges and data: - Large portion of the economy is untaxed: agriculture accounts for around 30 percent of GDP. - The informal economy has rapidly gained importance. - Tax evasion and tax and customs exemptions constrain revenue performance. - Ineffectiveness of tax audits due to human resource problems in tax administration and inadequate measures to encourage tax compliance. - Average tax pressure rate of recent years has been 14 percent, compared to a minimum of 17 percent called for in the WAEMU context. - Measures adopted during 2008 succeeded in raising this rate to 16.4 percent. - Technical and financial support from partners is crucial to eliminate obstacles to increased tax revenue and to improve tax assessment and collection capacity. - External aid challenges and actions: - Cooperation with main partners was frozen for more than a decade, reducing external financial assistance; traditionally nearly 80 percent of government capital spending was financed by external resources. - Achievement of the MDGs depends on substantial external aid on highly concessional terms that can be rapidly mobilized. - Need to establish a strategic mechanism for effective coordination of aid and to follow up conclusions of the Brussels meeting in September 2008 by capacity-building in the Ministry responsible for cooperation. - The UN Secretary-General’s initiative under the « Gleneagles Scenario » is an opportunity to mobilize additional external resources. ### Efficiency of public spending - Findings from PEMFAR and recent actions: - The 2006 PEMFAR review showed extensive use of exceptional procedures, increasing risk that funds go to non-priority sectors (important progress was made during the fiscal year 2008 to limit the use of exceptional procedures). - Lack of transparency in procurement and weaknesses in expenditure monitoring and control mean investments do not always produce expected effects. - Planned improvements: - Effective implementation of the action plan to improve reliability of public finance management over the next two or three years, including: automated system for management of public spending; tools for programming and monitoring public spending; procurement management; staff training. - Adoption of an efficient and transparent system for monitoring public spending is essential. ### Institutional and human capacity constraints - Capacity and absorption problems: - Prolonged socio-political crisis led to marked deterioration in institutional and human capacities needed to manage development. - For scarce state financial resources, absorption rate is very low; execution rate of the Public Investment Program for the fiscal year 2008 is 52 percent. - Causes include shortage of material and human resources, failure to follow donor-mandated procedures due to inadequately trained officials, and staff who retire not being replaced. - Scarcity of budgetary resources and freeze on civil service recruitment have created capacity constraints in key ministries: economy, finance, health, education, and agriculture. - Priority actions: - Reverse institutional capacity deterioration caused by retirement-related depletion, breakdown of training systems, lack of reference tools (handbooks of procedures), and lack of operational resources. - Private sector capacity-building measures: Government/private sector consultations, one-stop shop arrangements, market information, specialized jurisdictions; address economic and financial aspects such as cost of factors of production, investment credits, insurance. - Strengthen civil society as a crucial element for capacity-building, consolidation of democracy, and efficient implementation of development programs. ### Policy implications and priorities (summarized) - Consolidate political dialogue, strengthen social cohesion, and build national consensus to create a stable environment for MDG-focused policies. - Achieve high, equitable, job-creating growth (target simulation: average 7 percent over a long period) to meet MDG poverty-reduction goals. - Expand and improve domestic revenue mobilization (address taxation of agriculture and informal sector; strengthen tax audits and collection) to raise tax pressure above recent average of 14 percent toward WAEMU minimum of 17 percent; note progress to 16.4 percent in 2008. - Mobilize substantial external concessional aid and coordinate donors effectively; leverage initiatives such as the « Gleneagles Scenario ». - Improve public financial management, procurement transparency, and expenditure monitoring; implement action plan and automation over the next two or three years. - Rebuild institutional and human capacities; prioritize recruitment, training, replacement of retirees, and capacity-building in key ministries and civil society; improve absorption of donor funds (current Public Investment Program execution rate: 52 percent). *Source: 4.2 Challenges to achieving the MDGs in Togo* ### 1.2 Promotion of institutional governance ### 1.2 Promotion of institutional governance ### Institutional framework and justice system: status and constraints - The Constitution of October 14, 1992 provided for creation of a number of institutions to guarantee democracy and promote the rule of law; most have been put in place, with the exception of the Audit Office and the Economic and Social Council. - Government commits to work with all politicians to ensure that all shades of opinion are represented in the institutions. - The justice system has "glaring shortcomings," aggravated by corruption and lack of independence of the bench, undermining public confidence. - Additional constraints: weak chancery administration, poor monitoring of courts due to shortage of competent staff, and lack of rationalized budgetary supervision to enable courts to function properly. ### National Program for the Modernization of Justice (PNMJ): scope and continuation - PNMJ established (with partner support, including the Federal Republic of Germany) following a 2004 in-depth diagnostic assessment to promote an independent and fair justice system. - Issues addressed by PNMJ include: problems of competence, equipment of courts, public access to justice, shortcomings of the prison system, and incorporation of OHADA Act requirements into the judicial system. - Government intentions regarding institutional governance: - (i) to continue implementation of the PNMJ; - (ii) to put in place all the constitutional institutions and enable them to function; - (iii) to strengthen the rule of law and the security of persons and property. - Continuation measures under PNMJ: - (i) drafting of legislative and regulatory texts; - (ii) creation of the necessary courts for a modern system of justice; - (iii) creation of operational and durable courts; - (iv) upgrading of the human, material, technical and financial resources of Government Procurator’s Office; - (v) capacity-building in the General Inspectorate of judicial and penitentiary services. - Additional institutional/legal actions: - Formulation of a code of ethics for each of the legal professions. - Adoption of new texts of the Supreme Council of the Judiciary. - Adoption and implementation of a national policy of legal extension services. - Study and establishment of an appropriate legal and judicial framework to improve the business environment and provide real security for the business world. ### Establishment and operationalization of constitutional institutions - The Audit Office will become operational when judges have been appointed and trained and when the institution has adequate human, material and financial resources. - Steps will be taken to make the Economic and Social Council operational. ### Strengthening rule of law and security of persons and property - Effective enforcement of necessary legal texts is presented as essential to make institutions credible and guarantee security of persons and property. - Planned measures include: - Awareness campaigns on rights and duties and the importance of human rights for harmonious development. - Capacity-building in the security forces (police, gendarmerie, firemen and guardians of the security of the territory) to improve their human, material and technical resources. ### Implementation of administrative reform (1.3): diagnosis, actions, and medium-term goals - Assessments highlighted difficulties and inefficiencies in institutional management and human resources; exacerbated by large-scale retirements and civil service recruitment freeze, causing capacity deficits in key sectors. - The Government launched reform by organizing the Estates General of Public Administration (EGAP) in 2006. - Immediate actions begun in 2006: - Improve remuneration of government officials. - Freeze some retirements and increase retirement ages: raised to 60 for category A public administration officials and to 58 for officials in education and health categories B and C. - Legal/decentralization framework: - Constitution (October 14, 1992) and article 141; Law No. 98-006 of February 11, 1998 provides for three levels of decentralization: commune, prefecture and region. - In practice, only the thirty (30) prefectures and twenty-one (21) urban communes are operational; these communities have been headed by special delegations since 2001. - Consolidation program adopted as the sector policy letter of June 9, 2004; Law No. 2007-011 of March 13, 2007 was adopted in this context. - Medium-term government intentions: - (i) continue reform of the administration; - (ii) accelerate the decentralization process. - Specific goals: (i) monitor quality of services to users (citizens and enterprises); (ii) reduce administration’s internal and external communication deficiencies; (iii) promote land use planning; (iv) enhance the decentralization process. ### Strategic framework for public administration reform (Box 4) and implementation phases - The strategic framework derives from EGAP 2006 and aims to improve quality of services via consensus-building, local management and meritocracy. - Strategic directions include: redefinition and clarification of government missions; capacity-building; rationalization of structures and standards; enhanced effectiveness of government work; promotion of a motivating and modern work environment; promotion of a programmatic and institutional framework for reform. - Coverage and phases: - Framework covers the period 2008-2015 and will be implemented in two phases: - First phase (2008-2012): preparation and testing of the reform, including an emergency program (2008-2010) with improved coordination, temporary capacity-building measures in certain ministries (Civil Service, Finance, Development, Education, Health, Agriculture, Infrastructure) and creation of prerequisites for reform. - Second phase (2012-2015): consolidation and extension of progress, moving from pilot structures to target the entire Togolese public administration with a new regulatory framework (legal, organizational and institutional). ### Improvements in service delivery, communication, and e-government - Goals and measures to improve services to users: - (i) redefinition and clarification of government missions; - (ii) public administration capacity-building; - (iii) rationalization of structures and standards; - (iv) improved efficiency of government work; - (v) promotion of a motivating and modern work environment; - (vi) promotion of a programmatic and institutional framework for reform; - (vii) depoliticization of the public administration; - (viii) improvement of service delivery by creation of a system allowing questioning of the actors concerned; - (ix) evaluation of administrative performance. - Communication and ICT: - Administration intranet and extranet shortcomings complicate personnel management and user information. - Government commits to: prepare guidelines for automation and ICT development; improve information flow between officials and users via appropriate data transmission systems; simplify administrative procedures and formalities; promote development of an electronic platform for the administration (e-government). - Various methods will be used to facilitate public access to government services, including creation of means of access to ministries, administrative units, and multimedia centers. ### Land use planning and decentralization measures - National Land Use Policy Statement (DEPONAT) adopted in 2006; aligns with WAEMU community land use policy and is participatory and decentralized. - Main project purpose: mitigate effects of Lomé domination by developing other regions/towns via linking major roads, administrative and social facilities (hospitals, schools), and basic infrastructure to promote handicraft activities and small and medium-size industries. - Government focus areas: - (i) adoption of land use policy leading to formulation of land use plans (ATLAS, SNAT, SRAT, SLAT); - (ii) establishment of bodies for analysis, guidance and coordination of land use and decentralization at national, regional and local levels; - (iii) updating of national, regional and local land use plans; - (iv) adoption of procedures to reflect overall land use plan principles in sectoral and local programming; - (v) recruitment of qualified land use specialists; - (vi) training for persons involved in land use. - DEPONAT instruments: National Land Use Plan (SNAT); Regional Land Use Plans (SRAT); Local Land Use Plans (SLAT); Atlas of Togolese Regional Development. ### Strengthening the decentralization process - Expected results and measures: - (i) creation of a comprehensive legal arsenal and finalization of implementing legislation; - (ii) improvement of the efficiency of existing partly autonomous regions via organizational and financial audit and updating of local competences; - (iii) transfer of skills and resources; - (iv) adoption of a strategy of information, awareness-raising, training and mobilization of actors; - (v) creation of mechanisms to provide technical (training and follow-up) and financial support to local authorities; - (vi) organization of local elections. - Acceleration of implementation of the National Program of Decentralized Action for Environmental Management (PNADE) is indicated. - For effective local management, measures for transfer of skills and resources will be studied and gradually introduced; capacity-building programs for devolved structures will consider new demands from grassroots development plans. ### Improvement of economic governance (start of 1.4) - Reforms under the Interim PRSP context include: incorporation of WAEMU directives in national legislation; unification of arrangements for government budget preparation; introduction of the Integrated Public Finance Management System (SIGFIP); abolition of exceptional expenditure execution procedures; creation of the General Inspectorate of Finance; adoption of a strategy for clearance of the domestic debt. - Policy objectives and targets: - Ensure that budget revenue exceeds 18.2 percent of GDP by 2011. - Ensure that the budget surplus is at least 1 percent of GDP by 2011. - Government commitments to achieve these targets: - (i) continue fiscal consolidation; - (ii) intensify anti-corruption measures; - (iii) ensure transparent management of procurement; - (iv) pursue coordination and sound and effective management of aid flows. - Fiscal consolidation measures: - Strengthen domestic resource mobilization and improve management of public spending. - Mobilize additional domestic resources by: - (i) continuing strategy of expanding the tax base and improving collection; - (ii) simplifying and rationalizing taxation and customs codes in line with WAEMU directives; - (iii) reducing exemptions, including free trade zone exemptions; - Improve monitoring of exemption systems in customs and tax codes; introduce tax audits based on risk evaluation; recruit staff for tax administrations. - Improve management of government spending by introducing a strict budget policy, including accelerated harmonization of public finance legal framework with WAEMU directives. *Source: _cr1033 - 1.2 Promotion of institutional governance* ### introduction in government budget preparation of Medium-Term Expenditure Frameworks (MTEFs) ### introduction in government budget preparation of Medium-Term Expenditure Frameworks (MTEFs) ### Budget preparation, execution, and public expenditure management reforms - Key objectives for budget preparation and execution: - introduction of Medium-Term Expenditure Frameworks (MTEFs) and program budgets; - complete consistency between investment budgets and medium-term expenditure forecasts; - reduction of discrepancies between expenditure forecasts and actual disbursements; - improvement of budget nomenclature to meet analysis requirements; - complete traceability of grant operations in the adopted budget and in the budget execution reports; - improvement of methods for managing the annual cash flow plan; - improvement of monitoring of government budget execution by SIGFIP to allow real-time monitoring of expenditure by budget item; - improvement of cash management, in order to prevent accumulation of domestic arrears; - effective implementation of the debt clearance strategy; - adoption and implementation of debt strategy; - adoption of an action plan to reform government bond issues. - Budget policy priorities: - increase budget allocations for health, education, agriculture and basic public infrastructure including energy, transportation, water and sanitation. - Procedural reforms under consideration: - update budget procedures, particularly preparation, execution, monitoring and validation of accounts. ### Controls, audit institutions, and anti-corruption measures - Actions to prevent wastage and misappropriation: - entry into operation of the General Inspectorate of Finance; - appointment of the members of the Audit Office and its entry into operation; - training of officials responsible for reporting and preparation of the final budget execution law; - regular preparation of management and administrative accounts and draft final budget execution laws to facilitate the work of the Audit Office; - capacity-building in the General Government Inspectorate; - processing of inspection reports; - consideration of public accounts and draft final budget execution laws. - Strengthening anti-corruption framework: - formulation of a national anti-corruption policy; - creation of an institutional framework consistent with existing structures; - adoption of an action plan designed to prevent corruption and to ensure equitable and transparent treatment of corruption cases by the competent courts. - Assertion: consistent and rapid implementation of public finance management reforms will considerably reduce the risk of corruption in the management of government funds. ### Transparency, financial information dissemination, and SIGFIP - Measures to improve availability of public finance information: - observance of the constitutional deadline for submission to Parliament of the draft finance laws; - disclosure of draft finance laws to the media; - regular posting on the Web site of the Ministry of the Economy and Finance of all financial documents, including expenditure statements, procurement, data on the government debt; - improvement of information on budget execution under the SIGFIP. ### Finance administration institutional reforms and capacity building - Planned institutional measures: - transformation of the Budget Directorate General; - amendment of Decree No. 2001-155/PR of August 20, 2001 on the organization of the Directorate General for the Treasury and Public Accounting (DGTP) to add a department responsible for preparing revenue and expenditure accounts for audit, in order to ensure that the revenue and expenditure accounts produced by the main accountants are accurate and have sufficient supporting documentation; - capacity-building in the finance administration for the training and recruitment of new qualified staff. - Expected outcomes: - strengthened macro-economic forecasting capacity and better linkage between forecasting and budgeting. - Note: "This formality is compulsory and essential for the functioning of the Audit Office." (footnote reference preserved in source). ### Procurement system improvement - Measures to enhance transparency and align with international standards: - transposition of the WAEMU directives on procurement into the national legal order; - drafting of a new procurement code to make procurement arrangements more transparent and less centralized; - drafting of implementing texts describing procurement procedures and effective enforcement of those texts; - drafting of a handbook of procedures for all persons involved in public procurement; - adoption of arrangements to ensure strict expenditure monitoring. ### Coordination and management of aid flows - Existing measures under I-PRSP: - application of the WAEMU regulation whereby only the Minister of Finance is authorized to incur and guarantee foreign debt on behalf of the State; - adoption of a national debt strategy and establishment of a national committee on the public debt. - Goals for an efficient national aid management framework: - implementation of the principles of the Paris Declaration and the Accra Agenda for Action; - acceleration of the process for rapid attainment of the HIPC completion point; - accelerated formulation of a national policy for management of external aid. - Priority actions envisaged: - efficient implementation of the F-PRSP priority actions; - conduct of a prospective study providing a long-term vision for Togo; - formulation of a national policy for management of foreign aid clarifying responsibilities of ministries and partners for identification, formulation, implementation and monitoring of development programs; - creation of a system for aid management and of appropriate structures; - formulation of an action plan for capacity-building in monitoring and assessment of the Priority Action Program (PAP) of the F-PRSP; - briefing and training of government officials in results-based management; - establishment and effective use of the Government-Donors Committee envisaged in the PRSP institutional framework for mutual monitoring under the Paris Declaration; - formulation and implementation of an action plan for the Accra Agenda for Action, including installation and use of a harmonized and remotely accessible data system; - setup of a mechanism for technical assistance monitoring and coordination; - capacity strengthening of officials in charge of international cooperation to negotiate and mobilize resources and align support with national priorities. - Engagement with non-State actors: - promote capacity-building for civil society organizations to improve management of aid mobilized directly by non-State actors. ### Second pillar: consolidation of foundations for strong and sustainable growth (three-year horizon) - Strategic intent: - over the next three years, create new foundations for stronger, more lasting, and more sustainable growth through interventions in nine key areas: - (i) strengthening the structural reforms; - (ii) improving the business environment; - (iii) promoting sources of economic growth; - (iv) developing infrastructures to support economic growth; - (v) enhancing regional integration; - (vi) effectively managing natural resources, the environment, and the living environment; - (vii) redistributing the fruits of economic growth; - (viii) creating jobs; - (ix) promoting research. ### Strengthening structural reforms: public enterprises and financial sector - Core objectives: - reduce national production factor costs by addressing Government involvement and management problems in key sectors; - restructure public enterprises; - rehabilitate the financial sector. - Restructuring public enterprises — specific measures and cases: - SOTOCO / NSCT: - dissolution of SOTOCO and creation of Nouvelle Société Cotonnière du Togo (NSCT); - the Government will hold 60 percent of the new company’s capital, and the cotton producers’ federation will hold 40 percent; - management based on rules of transparency, cost minimization, introduction and implementation of analytic accounting, regular external oversight; - medium-term intention to transfer a portion of Government shares to a private strategic operator so that Government becomes a minority shareholder. - SNPT (Société Nouvelle des Phosphates du Togo): - strategic and financial audit under way focusing on performance, organizational structure, condition of facilities and equipment, and economic, financial, social, and environmental aspects of the phosphate industry; - audit results to inform a detailed action plan to restore long-term viability and contribution to economic growth; - periodic publication of a report reconciling data on assessments paid to the Government and data recorded by the Treasury, in the spirit of the Extractive Industries Transparency Initiative (EITI); - institution of manuals of procedures within the company to enhance management transparency. - CEET (Compagnie Energie Electrique du Togo): - a performance contract between the Government and CEET emphasizing cost control, grid loss reduction, and the level of subsidization required to maintain the utility and increase the number of households served; - recognition that long-term solution depends on concerted subregional action. - TdE (Togolaise des Eaux) and FODESEPA: - deepening reform of the urban safe drinking water sector to distinguish operator role from asset manager role; - dissolution and liquidation of FODESEPA and creation of an asset management company charged with programming and carrying out investments; - TdE to retain mandate to operate the service assigned to it; - conclusion of an affermage contract between the Government, the operator, and the asset management company; - implementation steps: (i) adoption of the FODESEPA dissolution decree; (ii) adoption of the decree establishing the asset management company; (iii) consecration of TdE’s role as a company to which state property is assigned in the urban safe drinking water sector. - Management and oversight standards for public enterprises: - strict enforcement of the provisions of Law No. 90-26 of December 4, 1990 regarding legal bodies, technical and management supervision, and regular monitoring through a revitalized Management Information System; - establishment of minimum standards for external oversight by independent auditors. - Financial sector rehabilitation: - focus areas: - rehabilitation of the compromised portfolio of banks with official capital; - transfer of state shares in these establishments so that Government becomes a minority shareholder; - stronger banking oversight. - Actions taken and planned: - a securitization operation has been set in motion, enabling the banks involved to regain an effective equity position that meets the risk coverage ratio standard of 8 percent, creating the possibility of obtaining refinancing by the Central Bank; - the BCEAO Board of Directors has authorized the securities issued to be eligible for refinancing by the issuing institution; - a study will be carried out on setting up an entity or a mechanism for recouping compromised debt taken over by the Government; - a request for bids will be issued to select model partners capable of injecting necessary capital to meet new minimum capital standards and bringing firsthand banking technology to the establishments; - public banks will be provided with governance mechanisms based on well-defined procedures that generate reliable data to ensure compliance with WAEMU prudential standards and adaptation to planned banking regulation reforms. *Source: IMF country document excerpt (original PDF content).* ### 2.2 Improving the business environment ### 2.2 Improving the business environment ### Assessment of the current business environment - Starting a business: average of 53 days versus regulatory standard of 14 days. - Institutional performance: Business Formalities Center (CFE) and Free Trade Zone Administration Company (SAZOF) assessed as far from satisfactory. - World Bank Doing Business ranking: Of the 181 countries in the 2009 sample, Togo is ranked 163rd (154th in 2005, 151st in 2006, 156th in 2007, and 159th in 2008). - Main constraints identified: (i) the tax burden; (ii) cumbersome administrative requirements for international trade, starting a business, protecting investors, and executing contracts; (iii) functioning of the judicial system; and (iv) difficulties of the banking system. ### Government objectives - Improve the general business context. - Revitalize the industrial free trade zone, starting with revision of Law No. 89-14 of September 18, 1989. - Improve the system of private sector development and support. - Improve conditions for the emergence of entrepreneurship. - Reduce the cost of credit and improve access to financing. ### Improve the general business context — planned measures - Institutional reforms: - Set up a one-stop shop for administrative formalities involved in starting a business. - Establish a dynamic institutional framework: an effective investment promotion agency coupled with a true one-stop shop where all operations related to starting a business will be completed (the reform under way at SAZOF will allow it to legitimately fill this role). - Policy and fiscal measures: - Rehabilitate the legal and judicial environment; national program to modernize the system of justice is under way. - Simplify business taxes; Council of Ministers decision in August 2008 to reduce the tax rate from 37 to 30 percent for industries and from 40 to 33 percent for other companies. - Emergency measures to be taken in line with recent studies to implement the above. ### Revitalize the industrial free trade zone — rationale and data - Importance: growth of Togolese manufacturing industries is driven to a large extent by exports and the free trade zone. - 2007 free zone performance: - Authorized businesses employed 8,220 persons at the end of 2007, with a wage bill of CFAF 5 billion. - Total business volume in 2007: CFAF 137 billion, of which CFAF 115 billion in exports. - Cumulative investments over 1990-2007 totaled CFAF 75 billion (in constant prices). - Principal advantages: favorable tax and customs treatment; low wage scale for relatively skilled labor with satisfactory productivity. - Obstacles: factor costs (electricity, telecommunications), port services, air freight, lack of industrial land in the port area, dilapidated urban infrastructure in Lomé and interior. - Planned solutions: - Reduce factor costs, port services costs, and air freight costs. - Create and develop a new free trade zone situated some 20 kilometers to the north of Lomé; conduct studies to target potential investors and site developers based on detailed production and transportation cost analyses. ### Improve private sector development and support - Medium-term actions: - Reorganize existing entities to make them effective partners of the private sector. - Build capacities of the National SME/SMI Promotion and Financing Guarantee Agency and the Informal Sector Organizing Commission to support private companies and informal actors. - Revitalize semi-public and private support entities (Chambers of Trade, Chambers of Agriculture, Chamber of Commerce and Industry of Togo, National Council of Employers, private consulting firms, Association of Togolese Consultants, Association of Free Trade Zone Companies, etc.). - Conduct a medium-term study on recombining private sector development entities into a single agency called the Business Center (Maison de l’Entreprise). - Coordination: formulate a forward-looking vision of private sector development with active participation of economic operators. ### Improve conditions for the emergence of entrepreneurship - Support measures: - Support development and training of local entrepreneurs; promote initiative and creativity. - Develop a network of support and information for private sector operators. - Mechanisms to promote quality and productivity: - Implement an information and measurement system on standards and productivity indicators. - Analyze obstacles to production and productivity; identify standardization requirements and awareness-raising needs. - Analyze comparative standards for production costs and adopt appropriate sectoral standards. - Implement a permanent system for detecting cost overruns and poor quality. - Complete productivity audits and forward-looking studies to ensure sustainability. - Introduce new production techniques, new products, and growth market identification. - Establish a new industrial site as the port-area site is already saturated. - Establish a credible calibration facility (reference laboratory) containing calibration instruments measuring basic magnitudes such as length, mass, time, electric current, pressure, volume, temperature, etc. ### Reduce the cost of credit and improve access to financing — overview - Financial system composition: 11 commercial banks, plus financial establishments and microfinance institutions; other subregional financial establishments exist but are largely unknown to operators. - Bankarization: bankarization rate of 21.6 percent in 2007 (ratio between the number of personal accounts and the size of the working population). - Key problems: - Insufficient range of banking products relative to private sector needs. - Banks mainly offer short-term and seasonal credit and commitments by signature; little involvement in financing business capital needs (medium- and long-term credit). - Nonexistence of leasing institutions or a mortgage market. - SME/SMIs often fail to obtain credit due to lack of formal studies demonstrating project profitability. - Internal bank constraints: poor lending policies, organizational and management problems, violations of banking and prudential regulations. - Excessive volume of bad debt stemming from years of difficult sociopolitical environment. ### Private sector financing by banks and regional institutions — planned actions - Expand and diversify financial services offered by the banking system consistent with operators’ needs. - Raise entrepreneurs’ awareness and provide information/training on financing mechanisms and financial instruments. - Adopt measures to professionalize credit allocation to reduce customer costs. - Set up a guarantee mechanism to promote private initiative, youth entrepreneurship, and women’s entrepreneurship. - Promote financing through preferential and subsidized rates for young entrepreneurs. - Lobby development partners to mobilize credit for building capacities of economic operators (project feasibility and management studies). - Establish a Business Recovery Fund (FRE) to facilitate access to long-term credit for Togolese businesses with terms of interest and grace periods appropriate to their activities. ### Private sector financing by MFIs — status, data, and planned actions - Institutional consolidation: merger of ALAFIA Consortium and the Trade Organization of Microfinance Institutions of Togo; greater oversight by CAS-IMEC following SNMF adoption in 2004. - MFI performance as of end-June 2008: - Collected deposits: CFAF 60.3 billion, i.e., 15 percent of the banking system’s assets. - Granted loans: CFAF 48.7 billion, equivalent to 14 percent of all bank credit. - Total financial flow: more than CFAF 109 billion. - Number of direct service beneficiaries: 536,321 individuals and groups. - Problems observed: - Noncompliance with legislative, regulatory, and statutory provisions. - Shaky information and management systems; limited reliability of some MFIs’ financial statements. - Weak internal and external oversight mechanisms; proliferation of financial fraud and embezzlement cases. - Regulatory response: - BCEAO proposed a bill in 2008 to regulate decentralized financial systems replacing Law No. 95-014 of July 14, 1995; bill adopted by the Council of Ministers in November 2008 and pending National Assembly adoption. - Alignment with the revised National Microfinance Strategy (SNMF): Government actions are consistent with SNMF strategic goals to contribute to poverty reduction and MDG achievement by expanding appropriate and diversified microfinance services for poor populations, especially women, rural inhabitants, and micro-entrepreneurs. - Priority Government actions for microfinance: - Strengthen legal, regulatory, and institutional framework for MFIs. - Develop active partnership between MFIs and local communities linked to decentralization. - Professionalize MFIs and enable permanent supply of appropriate, diversified services and products, especially in under-covered geographic areas. - Strengthen financial inclusion by developing articulation between MFIs and banks and setting up a guarantee fund. ### Box 6 — National Microfinance Strategy (SNMF) highlights - PASNAM implementation with UNDP and UNCDF support improved the institutional environment, professionalism of MFIs, and bank–MFI articulation. - SNMF reviewed in August 2007; new strategy covers the period 2008-2012. - Total cost of the new strategy: CFAF 19.7 billion. - Goal: a diversified, innovative financial sector providing satisfactory nationwide coverage and operating within an appropriate legal, regulatory, tax, and policy framework. - SNMF priorities for 2008-2012: - (i) Recommend adjustments for a new legal and regulatory framework. - (ii) Streamline the sector via link-ups, common services, and MFI rehabilitation/liquidation. - (iii) Build capacities and introduce effective management tools, including banking technology. - (iv) Analyze factors permitting greater MFI productivity. - (v) Provide direct financing for MFIs while analyzing their business plans. - (vi) Develop specific strategies for nationwide coverage and appropriate rural/private-sector products. - (vii) Establish a national security fund to assist MFI networks and their reconfiguration/rehabilitation. - (viii) Revitalize the microfinance development fund to provide a guarantee fund and an MFI refinancing mechanism. - (ix) Consolidate business relationships between MFIs and national/international financial institutions. - (x) Set up a mechanism for exchanging customer information. - (xi) Enhance sector communication and information. - (xii) Promote good governance and financial transparency. ### Private sector financing by traditional financing systems - Policy intent: support and structure traditional financing (tontines) for gradual inclusion in the formal sector. - Planned actions: - Initiate consultations among stakeholders on local development actions. - Organize and introduce within the informal tontine system “mini-credit for women” to serve as a loss leader. - Use the traditional tontine system to support formalization efforts given its large role in savings behavior. *Source: _cr1033 - 2.2 Improving the business environment* ### 2.3 Promoting sources of economic growth ### 2.3 Promoting sources of economic growth ### Overview and context - Objective: expand investments to revitalize economic activity in the primary, secondary, and tertiary sectors, increase productivity, enhance competitiveness, and diversify the economy to reduce vulnerability to exogenous shocks. - Historical context: the Togolese economy recorded relatively sustained growth until the late 1980s, then suffered a net decline because of the sociopolitical crisis of 1990-2005. The annual growth rate, estimated at an average 1.1 percent, actually turned negative for certain years. - Structural diagnosis: - Narrow productive base: tertiary and services sector with no links to national production; industrial sector only slightly integrated into the rest of the economy. - Growth from 1990 to 2007 mainly stems from primary and secondary sectors; tertiary sector contribution remained very low or negative. - Extractive industries contribution has shrunk due to the drop in phosphate production. - Manufacturing industries and construction and public works contributions to GDP have risen. - Comparative advantage (WAEMU competitiveness analysis): Togo can specialize in coffee, cocoa, tea, malt, spices, flour-mill products, starches, wheat gluten, oleaginous plants (shea), grains, seeds, industrial plants, medicinal plants, residues, provender, salt, sulfur, ornamental stones, gypsum, lime, and cement. Other potentially competitive products require inter-branch specialization (e.g., live plants and floricultural products, edible fruits, citrus or melon rinds, cocoa and by-products). ### Strategic objectives - The Government identifies three strategic objectives: - (i) boost agricultural productivity; - (ii) boost industrial productivity; - (iii) improve the competitiveness of the tertiary sector. ### Boosting agricultural productivity — findings and targets - Importance of both food crops (maize, sorghum, rice, cowpeas, yams, manioc, etc.) and export crops (coffee, cocoa, cotton). - Potential diversification products with substantial value growth: fruits, vegetables, flowers, peppers, spices, etc., which trended upward in value by 129.4 per cent between 1998 and 2003. - Core priorities to boost production: promote compliance with technical itineraries; strive for water control; ensure best producer price; secure land; and encourage environmentally friendly agriculture. ### Land tenure and resource management actions - Define a new land tenure policy recognizing and securing rights of customary origin within a legal framework allowing gradual individualization and protection for vulnerable groups. - Envisioned actions: - set in place transparent and effective land markets (ownership or rental); - seek greater decentralization with participation of local populations and customary institutions in land management and conflict management; - provide women and youth with easy access to land (including widows and orphans of AIDS patients); - reduce the risk of lands being divided up through inheritance methods. - Implement pilot actions across diverse land areas to identify rational land and natural resource management systems that consider local needs and Government socioeconomic and ecological priorities. - Recover and restore lands degraded by phosphate mining and return them to owners for farming. ### Coffee-cocoa emergency program — components - Rationale: coffee and cocoa traditionally rank third among total exports (after phosphate and cotton) and are regaining growers’ attention. - Four components: - (i) rehabilitate aging plantations, increase land for robusta coffee, and replant areas affected by cacao swollen shoot disease with tolerant material; - (ii) set in place an effective mechanism to support replanting/ratooning and expansion of orchards; - (iii) strengthen the institutional framework (coffee and cocoa sectors regulatory and development entities, trade organization, strengthening of local cooperatives, etc.); - (iv) strengthen infrastructure (roads, warehouses). - Additional measure: include bush fire prevention. ### Market information, producer prices, and institutions - Policy: abandon practice of banning exports of food products (including grains such as maize) while ensuring producers profit from production. - Market information and monitoring system: current system not yet effective; will be reviewed and strengthened. - Strengthening agencies: - Agricultural Statistics, Information, and Documentation Directorate and National Food Security Agency of Togo (ANSAT, formerly OSAT) will be strengthened to collect data on food product supply and demand in the five regions and disseminate timely data. - Coffee-Cocoa Industry Coordinating Committee (CCFCC) uses TRADENET to inform producers every two weeks about coffee-cocoa target prices based on world market rates to facilitate negotiations. - Coverage limitations and short-term priority: - Existing systems have limited geographic and thematic coverage; telecommunications networks cover only a small part of the country (just 5 percent). - Short-term priority: set in place an integrated network of economic, technical, and commercial information to collect, analyze, and disseminate data on production and trade of agricultural products and potentially information on new technologies, availability of inputs (selected seeds, fertilizers, plant and animal health products), and international/subregional market opportunities and access conditions. ### Agricultural inputs and fertilizer policy - Government made agricultural inputs, especially fertilizers, a central pillar of policy; CAGIA (Agricultural Inputs Purchasing and Management Office) has ordered and distributed subsidized fertilizers. - Ongoing study on appropriateness of direct government involvement in supplying and transferring fertilizers due to: - distortions in the domestic market; - risk of subsidies partly financing agriculture in neighboring countries. - Government commitment: study status of agricultural inputs with producers, private operators, and competent international institutions to devise solutions for availability, accessibility, and rational pricing policy for fertilizers. - Promotion of Integrated Soil Fertility Management (ISFM) to develop use of organic fertilizers. ### Integrated Soil Fertility Management (Box 7) — purpose and strategies - Purpose: improve productivity through integrated agricultural intensification, combining locally available enriching agents with inorganic fertilizers from elsewhere. - ISFM strategies include: - (i) participatory development of water and soil conservation methods and soil fertility maintenance and enrichment techniques, using a combination of organic and mineral fertilization; - (ii) facilitation of organizational and institutional development to improve access to external inputs for farmers and strengthen their role relative to policymakers; - (iii) market development for agricultural inputs and products and development of credit systems. - Implementation experience: IFDC-Africa works with the Togolese Agricultural Research Institute; emphasis needed on research, dissemination of ISFM techniques, selection of appropriate sites, and participatory approaches for institutional development and collaboration among farmers, private sector, and policymakers at regional and national levels. ### Quality control, livestock, fisheries, and value addition - Quality control priority: adopt norms and standards to provide quality control over imported/exported agricultural inputs and products, consistent with international standards and conventions ratified by Togo; establish analytic laboratories, border inspection posts, and fraud prevention services to enforce standards. - Livestock sector characteristics and targets: - Poor mastery of zootechnical parameters; serious epidemic threats. - Northern region has largest cattle herd and receives transhumant animals from Burkina Faso and Niger. - Small livestock often raised by women and small producers; commercial poultry developing near major cities. - Animal product consumption coverage: roughly 70 percent. - Fisheries: - Output relatively low and primarily from maritime fisheries; fish farming remains marginal. - Fishery product consumption coverage: below 50 percent. - Measures to promote livestock and fisheries: - (i) support development of family-based stockraising with short-cycle species; - (ii) provide information, awareness-raising, and technical assistance for stockbreeders and fishermen; - (iii) organize stockbreeders and fishermen into groups and umbrella organizations and promote a joint-trade organization; - (iv) strengthen epidemiological surveillance and promote widespread vaccination against major epidemic diseases; - (v) promote slaughterhouses and cold storage; - (vi) manage fish breeding stations and water impoundment for aquaculture development; - (vii) develop fishery products unloading sites; - (viii) create water points, pasturage, and livestock roads. - Transhumance measures: - (i) develop and implement harmonized measures to prevent and mitigate risks and conflicts related to transhumance; - (ii) set in place a national committee and prefecture committees on transhumance with necessary resources for monitoring. - Value enhancement via processing: - Promote preservation and processing of meat and fishery products by organizing marketing channels, developing product outlets, and promoting the development of industries and hubs of agricultural enterprises around agricultural industries. ### Agricultural research, statistics, and planning - Government action will address lack of human resources in statistics and inadequate financial and material resources of relevant agencies to improve the agricultural sector information system and highlight agricultural research results. - National Agricultural Development Plan: - Will encompass priority actions to boost agricultural productivity and cover: - (i) creation of Planned Agricultural Development Zones (ZAAPs); - (ii) national waterway system management through improved monitoring of watercourses and bottomlands; - (iii) reclamation, rehabilitation, and recovery of water bodies and lakes, as well as river beds, for improved flood control. - Will address environmental protection, greater involvement of women in agricultural development, and HIV/AIDS prevention. - Commitments: reaffirmed commitment to implement the National Food Security Program (PNSA), validated in 2008. *Source: _cr1033 - 2.3 Promoting sources of economic growth* ### Box 8: National Food Security Program ### Box 8: National Food Security Program ### National Food Security Program (PNSA): overview and cost - PNSA initiated in February 2007 through a broad process of consultation and participatory development. - Objective: ensure food security for all segments of the population nationwide, with no discrimination. - Six strategic areas of intervention: - (i) promote the right to food and promote good governance in regard to food security; - (ii) improve productivity and develop plant, livestock, and fishery products; - (iii) boost the value of plant, livestock, and fishery products; - (iv) ensure sustainable management of natural resources and the environment; - (v) promote water control and domestic water for villages for multiple purposes; - (vi) promote good nutrition and nutritional education. - Institutional framework for PNSA implementation includes: the baseline body, the decision-making body, the coordinating and consultative bodies, and the body charged with management and monitoring and evaluation of the program. - Total cost of the PNSA through 2015 is estimated at CFAF 100 billion, of which 85 percent will be financed through external resources. *Source: Ministry of Agriculture, Livestock, and Fisheries / FAO* ### Boosting industrial productivity: extractive and manufacturing sectors - General aim: increase overall productivity of the industrial sector by raising productivity in extractive and manufacturing industries, and tapping growth potential in construction and public works (BTP) and handicrafts. - Extractive industries: - Principal minerals currently mined: phosphate, limestone, and, to a lesser extent, iron; other minerals extracted by artisanal and small-scale operations. - Phosphate production history: - Between 1988 and 1989, phosphate output peaked at 3 million metric tons. - Output fell to 750,000 metric tons in 2007. - 1966 output cited as 1.07 million metric tons. - Environmental concerns from phosphate mining: water pollution, coastal erosion, land degradation, deterioration of the living environment. - Limestone/clinker exports: - Accounted for 2.7 percent of Togolese exports in 1998 (value CFAF 4,055 million). - Rose to 40.8 percent in 2006 (value CFAF 57,400 million); clinker and cement are now Togo’s leading export. - Planned/mining prospects: Indian-based company planning to mine bauxite deposit in Agou (roughly 110 kilometers northwest of Lomé) and Bandjéli (Bassar) iron deposit (some 400 kilometers north of the capital). - Legal and institutional constraints: - Mining Code published February 1996 and revised in 2003 (Law No. 2003-012) has never been backed by an implementing decree and there is no mine registry. - Two problematic articles cited: - Article 55: any company awarded a concession shall freely cede 10 percent of its shares to the Government. - Article 60: deals with the procedure for settling disputes between the concessionaire and the Government. - Government intends to develop a Draft Standard Agreement, correct imperfections of the Mining Code, and take into account framework law on the environment. - Manufacturing industries and agroprocessing: - Government view: without serious processing of commodities before export, the economy suffers from raw material price effects. - Policy thrust: seize processing opportunities and diversify beyond current processing industries (breweries; biscuit, oil, and soap factories); emulate aspects of the Chinese model for export diversification. - Targeted processing examples: Togolese phosphate into phosphatic fertilizer; cotton into thread for hosiery and traditional fabrics; cocoa into chocolate and by-products. - Emphasis on promoting agroprocessing industries and exploiting Clean Development Mechanism (CDM) opportunities. ### Construction and public works (BTP): constraints and policy actions - Key constraints: lack of adequate human, financial, and material resources; lack of standardized procurement procedures; repercussions on infrastructure development. - Program management actions: - Improve coordination among technical and financial partners. - For large externally financed works, contracting authority relies on consultants; need to recruit additional higher-level employees (engineers and managers). - Equipment leasing and SMEs: - Reform legal framework of Société de Location de Matériels (SLM) and upgrade its material, financial, and human capacities to avoid monopoly. - Train employees of oversight and consulting firms via seminars/workshops. - Proposed measures: - (i) compile a list of local construction and public works companies and oversight firms; - (ii) suggest equipment leasing solutions for SMEs; - (iii) engage with banks on guarantees for SMEs and financing for revolving funds for businesses awarded contracts; - (iv) develop a public contracting authority legal framework. - Diaspora financial transfers: - Growth potential associated with transfers from the diaspora can be mobilized for the construction and public works sector. - Current uses: mainly family needs (health, education, and other expenses). - Challenges: funds diverted or projects failing due to lack of management capacity. - Government will seek workable solutions to mobilize these savings toward productive projects, not just real estate. - Social and environmental requirements for private enterprises: - Government will ensure all private enterprises provide training on the prevalence of HIV/AIDS. - Private companies should incorporate environmental impact studies into their activities. ### Handicrafts sector: status, constraints, and priority actions - Importance: handicrafts employ roughly 15 percent of the working population. - Institutional development: Law No. 98-011 adopted June 11, 1998 established regional chambers of trade in five economic regions and Lomé municipality; six regional chambers are operational. - Main difficulties: - (i) absence of a national handicrafts policy; - (ii) insufficient budgetary attention to sector needs; - (iii) lack of pilot centers for artisan apprenticeship, retraining, and skills development; - (iv) critical lack of appropriate work tools and equipment weakening production capacity and quality; - (v) difficult access to credit and grants; - (vi) weak marketing and distribution channels; - (vii) absence of a permanent framework of consultation among stakeholders. - Priority government actions: - (i) formulate and implement a national handicrafts development policy; - (ii) deploy field units of the National Handicrafts Directorate; - (iii) create a virtual gallery of handicrafts; - (iv) set up a technological data bank and reference centers for handicrafts; - (v) create pilot centers for artisan apprenticeship, retraining, and skills development; - (vi) establish a guarantee fund to provide financing for artisans; - (vii) support artisans’ participation in international expositions; - (viii) develop marketing channels for handicrafts. ### Improving competitiveness of the tertiary sector - Overall focus: competitiveness of the Lomé Port Authority (PAL), diversification of commercial activity, and development of tourism. - Lomé Port Authority (PAL): challenges and measures - PAL handles the bulk of all port services related to Togo’s international maritime activities, including 80 percent of maritime trade. - Underutilization despite strategic position as subregion’s sole deep-water port; efficiency improvements needed. - Major challenges: - (i) increase investment in infrastructure within the port and in road systems serving its surroundings and hinterland countries; - (ii) adjust PAL functions and mission to its new role as port “proprietor” (regulation and oversight) rather than port operator; privatization of container handling raised performance (pace rose from 5-6 containers per hour to 18-20) but resulted in a virtual monopoly and sub-optimal coordination; - (iii) reduce time required for passing through the Lomé port: recent average of roughly two days for containers after some slippage. - Comparative cost challenge: - A 20-foot container headed to Burkina Faso and unloaded in Lomé would cost CFAF 267,269 excluding transit fees and transportation costs; in Tema, the same container would cost CFAF 114,463. - Operational gaps: no tracking of containers preventing operators from monitoring status and location of loading/unloading activities. - Government response: - Large investments to expand port infrastructure: construction and rehabilitation of road infrastructure serving the port (roads within port area, bypasses, roads avoiding critical areas along the Lomé-Cinkassé corridor), expansion of the Sahel terminal, and development of dry port infrastructure. - Improve port management effectiveness and efficiency: redefine PAL mission/functions, restore PAL authority over concessionaires, and strengthen coordination role. - Cost of port passage: set up a task force to propose optimization of port passage costs; PAL must ensure overall competitiveness and have reliable accessible information for rate decisions. - Systematically establish competition in awarding licenses unless incompatible with rational port operations. - Diversification of commercial activity and trade policy - Togo’s historical reputation as a business crossroads gives high commercial potential, eroded by sociopolitical crisis. - Current commercial characteristics: very undiversified, dominated by informal operators; domestic trade mostly imports; foreign trade focused on a few agricultural products mostly exported raw. - Structural weaknesses reflected in indicators: - (i) a negative trade balance; - (ii) economy highly dependent on limited exports (cement, clinker, phosphates, cotton); - (iii) downward trend in export of certain products such as coffee and cocoa; - (iv) disappearance or near-disappearance of certain exports (ricin, kapok, copra, palm kernel, shea) despite robust international demand. - Causes of underexploited export potential: insufficient coordination between regulatory bodies, weak system, lack of market information, low and irregular output, product quality problems, low national manufacturing output. - Government priority measures: - (i) develop and implement a trade policy; - (ii) promote domestic trade; - (iii) strengthen activities that promote foreign trade; - (iv) strengthen Ministry of Commerce activities to promote foreign trade; - (v) formulate and implement a trade development strategy; - (vi) finalize and implement, with partners’ support, an integrated master program of technical assistance for trade to promote economic growth within the framework of the Doha Declaration. - Strengthening financial services for services sector - Priority actions: - (i) develop bank financing appropriate to the export industry; - (ii) establish a bank charter specifying the relationship between credit institutions and customers; - (iii) improve loan recovery terms, particularly guarantee liquidation process; - (iv) create a mortgage market to allow credit institutions with property loan portfolios to refinance assets; - (v) institute more flexible financing terms for SME/SMIs by creating interest subsidy funds appropriate to their size; - (vi) create a national loan recovery framework; - (vii) reduce police harassment and police controls that drive up product costs; - (viii) popularize computer use by lowering taxes on computer equipment. - Tourism: rebuilding a new tourism economy based on cultural potential - Tourism contribution was noteworthy in the 1970s and 1980s but fell during the sociopolitical crisis; hotel and tourism infrastructure deteriorated and current contribution is very limited. - Natural assets remain: sandy beach, varied flora and fauna, tourist sites, museum, archeological remains. - Required actions: - (i) continue and complete financial adjustment of state-run hotels (privatization of semi-public hotels); - (ii) define a clear policy to promote tourism, with emphasis on ecotourism; - (iii) draw up a tourist sites development plan; - (iv) update sector regulations and enforce them; - (v) actively publicize tourism in Togo (advertising posters, brochures, documentaries); - (vi) raise awareness of local communities about local tourism development. - Additional measures: set up tourist facilities in remote areas, develop tourist sites and traditional celebrations/cultural events, and create an incentive framework for private sector development of a hotel industry around rehabilitated tourist sites and protected areas. *Source: Ministry of Agriculture, Livestock, and Fisheries / FAO* ### 2.4 Development of infrastructures to support economic growth ### 2.4 Development of infrastructures to support economic growth ### Infrastructure deficit — overview - The country faces a tremendous deficit in economic infrastructure, especially in transportation, energy, and telecommunications. - Quantitative and qualitative inadequacy of road transportation infrastructure is an obstacle to growth. - In the Togolese road system, just 21 percent of the national roads are paved. - Paved roads and bridges are largely in a state of decay because of the absence of periodic maintenance and monitoring in recent years. - Service roads in many areas with high agricultural potential are not passable year round and some remain cut off. - Railroad transportation is practically nonexistent and is now limited to freight transport (cement). - The two international-class airports in the country remain underutilized relative to their capacity. - Energy: despite recent governmental actions to increase electric power supply, demand remains unsatisfied and the country depends too heavily on neighboring countries, with frequent power cuts. - Telecommunications: modern services are vital but costs are still relatively high (footnote: Because of the state monopoly on facilities). ### Transportation infrastructure — findings and government objectives Findings: - Road corridor competitiveness is key for domestic and foreign markets and for supplying hinterland countries from the port of Lomé. - Rehabilitation of the road system is urgent. - Rehabilitation and extension of the south-north central railroad axis would facilitate cargo transport domestically and to hinterland countries. - Institutional capacity gaps exist across the overland transportation sector, including management quality, credit execution and absorption, statistical and geographic information systems, sector coordination and governance, and organization of inter- and intra-urban transportation. - The Government’s transportation sector development strategy will involve a participatory approach to HIV/AIDS control along the entire road system. Government actions and priorities: - Improve competitiveness of Togolese products by reducing transport costs. - Reduce isolation of remote areas to develop agricultural potential. - Guarantee competitiveness of the Lomé road corridor supplying hinterland countries. - Specific infrastructure actions: - Rebuild and rehabilitate bridges destroyed by recent flooding. - Construct, rehabilitate, upgrade, and maintain urban and feeder roads, national roads, and interstate national roads. - Widen or duplicate segments of major access roads to the capital. - Rehabilitate and extend the south-north central railroad axis. - Institutional and accompanying actions: - Improve quality of management and strengthen credit execution and absorption capacities in the sector. - Upgrade statistical and geographic information systems. - Improve sector coordination and governance. - Better organize inter- and intra-urban transportation. ### Energy resources — findings and policy measures Findings: - Lack of adequate energy infrastructure and resources is a major impediment to economic activity. - Demand for electric power remains unsatisfied despite recent government efforts. - Dependence on neighboring countries for power supply leads to frequent power cuts affecting all sectors. - Medium-term projections point to positive impact from the West African gas pipeline going into production and providing cheaper energy. Government objectives and measures: - Satisfy energy requirements of businesses and households by diversifying electric power supply sources and reducing costs. - Tap hydroelectric potential (including completion of large regional energy projects). - Continue efforts to complete regional energy projects, particularly the Adjaralla dam and interconnection of the Nigerian, Beninese, and Togolese systems. - Accompany measures with institutional and regulatory reforms of the electric power sector; sector review and anticipated CEET reform will guide future actions. - Set in place a rural electrification strategy, establish a national rural electrification agency, and create a rural electrification fund. - Promote access to modern energy services in rural and periurban areas in accordance with commitments made pursuant to the ECOWAS/WAEMU White Book (which recommends that at least half of the rural and periurban population of member countries be provided with access to modern energy sources by 2015). - Implement program support for developing traditional energy resources and promoting renewables. - Promote use of solar energy for public lighting (roadways, schools, health centers, etc.). - Develop a consistent energy sector policy reflecting priority actions and their synergies. ### Telecommunications — findings and planned reforms Findings: - Modern telecommunications services are vital for business, foreign trade, and services (banks, insurance, transportation). - Costs remain relatively high compared to other countries of the subregion (because of the state monopoly on facilities). - Access and quality need improvement across all regions. Government actions and intentions: - Improve national coverage, diversify services, improve quality and reduce cost of telecommunications. - Encourage increased investment to cover the entire country. - Accelerate opening the capital of the national telecommunications company (TOGOTELECOM) to the private sector to raise resources on regional and international financial markets. - Develop a regulatory framework conducive to a more competitive environment, faster development of information and communication technologies (especially mobile telephone service and Internet access), and reduction of the digital divide. - Develop a clear telecommunications development policy to create synergy and consistency among actions. ### Environment, natural resources, living environment, and disaster management Policy orientation: - The Government opts for strong but environmentally friendly growth, integrating environmental management with poverty reduction and sustainable development. - The Government formulated a National Environmental Policy; implementation is addressed through the National Environmental Action Plan (PNAE) and the National Environmental Management Plan (PNGE). Box 9: National Environmental Policy — broad outlines and objectives - Broad outlines: - Effectively integrate an environmental dimension in development policies, plans, programs, and projects of all sectors. - Eliminate or reduce negative environmental impacts of public and private development projects and programs. - Strengthen national capacities for managing the environment and natural resources. - Improve the living environment and living conditions of the population. - Objectives: - Promote sound management of natural resources and the environment in all areas of activity. - Consolidate economic recovery measures to ensure ecologically viable foundations for development. - Priority actions to achieve objectives: - Strengthen national environmental management capacities. - Promote integrated management of coastal areas. - Prevent and manage natural disasters. - Promote participatory natural resource management. - Reduce pressure on natural resources. - Strengthen subregional and international cooperation in environmental management. Government actions to strengthen environmental and natural resource management: - Incorporate an environmental dimension in development policies, strategies, plans, and programs by formulating and implementing a national sustainable development strategy (SNDD). - Improve the legal and institutional framework for environmental and natural resource management. - Strengthen legal, institutional, technical, and financial capacities of sectors and development stakeholders involved in environmental management. - Develop environmental awareness of populations by formulating and implementing an environmental communication strategy. - Promote integrated coastal development consistent with carrying capacity; develop a framework for sustainable environmental management and coastal erosion control. - Prioritize restoration of degraded ecosystems and industrial pollution control in coastal management. - Reduce pressure on natural resources via: - Conserve and promote biodiversity. - Control desertification and soil deterioration. - Reduce greenhouse gas emissions and other sources of pollution. - Promote private and community-based forestry. - Increase plant cover through reforestation and management/restoration of natural forests. - Strengthen regional and international cooperation for concerted management of cross-border natural resources and environmental issues. Living environment and pollution control — findings and measures: Findings: - Major environmental problems affecting ambient air and living environment include: - Proliferation of unauthorized garbage dumps and outdoor defecation. - Dumping of toilet water and wastewater on public thoroughfares. - Pollution of surface and underground water resources. - Urban air pollution from vehicle and other emissions. - Illicit traffic in dangerous products (gasoline, pharmaceutical products and other chemical products, heavy metals, radioactive materials, etc.). Government intentions in pollution prevention and control: - Promote environmentally sound management of various categories of waste. - Promote sound management of chemical products. - Protect urban and rural living environments from all forms of pollution (including ocean pollution). - Develop areas around lagoons for recreational purposes. - Create green spaces in urban and semi-urban centers. Housing and urban planning — issues and policy steps: Findings: - Housing sector lacks institutions specialized in land-use planning and lacks production and financing of housing for low- and middle-income populations. - Absence of a consistent legal and regulatory framework for urban planning and construction; absence of a real housing policy. - State-owned property is surrounded by legal uncertainty and incomplete expropriation provisions, causing pressure from owners seeking to recover property. Government responses: - Establish institutions to design and manage implementation of an appropriate policy. - Adopted an Urban Sector Policy Statement in 1998 calling for development and implementation of a national housing strategy (SNL). *Source: _cr1033 - 2.4 Development of infrastructures to support economic growth* ### Box 10: Urban Sector Policy Statement ### Box 10: Urban Sector Policy Statement ### Urban sector policy: objectives and selected actions - Main objective: promote the development of viable human settlements. - Specific objectives: - (i) rebalance the Togolese urban framework; - (ii) define, based on property liberalism, the institutional and legal framework of city production; - (iii) strive for a better distribution of competence and resources between the Government and local communities; - (iv) stem the decline in living conditions in urban areas; - (v) encourage inter-municipal groups and partnerships. - Selected actions to achieve these objectives: - (i) encourage the mobilization of financial and human resources at the local level; - (ii) encourage increased investment in urban areas proportionate to the economic weight of urban centers in the national economy; - (iii) ensure the development of Information, Education, and Communication targeting urban actors. - Source: Ministry of Urban Planning and Housing ### National housing strategy (updated in 2007): objectives and priority actions - Objectives: - (i) reorganize the housing sector; - (ii) improve the housing stock; - (iii) mobilize financial resources and allocate them wisely. - Priority actions for strengthening the sector: - (i) set in place a consistent institutional and legal framework; - (ii) set in place reliable spatial planning tools; - (iii) simplify the regulations pertaining to urban planning and construction; - (iv) organize information; - (v) improve the level of community participation; - (vi) produce a large number of low-cost parcels. - Additional government intention: compensate the owners of expropriated properties to avoid uncertainties surrounding these properties. ### Effective and efficient management of natural disasters - Observations: - Analysis reveals the increasingly recurrent nature of certain disasters and a growing humanitarian dimension aggravated by poverty. - Disaster management still suffers from inadequate resources and management mechanisms despite advances since 2007. - Actions undertaken (with TFPs and United Nations System support): - develop a national disaster risk reduction strategy; - develop and implement a comprehensive early warning system; - complete studies on institutional framework for disaster prevention and management, baseline situation, identification and mapping of at-risk areas, and new climate trends and associated risks. - Government intentions given country vulnerability: - include disaster risk reduction in the early warning strategy; - give attention to coastal erosion in the southern part of the country and fight against desert encroachment in the northern part. - Capacity building and preparedness measures: - mobilize stakeholders in the Assistance Organization Plan (ORSEC) to build capacities for preparedness and emergency response; - set in place a National Contingency Plan as a management tool and ongoing participatory process to predict imminent events and required resources and services according to an established order of priority; - upgrade operational capacities of assistance structures (including the fire station) with specialized equipment; - upgrade capacities of the General Directorate of National Meteorology to improve the quality of weather forecasting; - establish a national support fund for natural disasters and emergencies to provide assistance to victims. ### Redistributing the fruits of economic growth - Government intent: make the full poverty reduction strategy a genuine tool for reducing inequalities and promote channels for redistribution of national wealth. - Envisioned measures: - (i) develop a tax policy favorable to the poor; - (ii) implement a redistribution policy that favors the poorest and most vulnerable areas. - Pro-poor tax policy measures: - revise tax laws to incorporate provisions designed to: - (i) increase the participation of the wealthier brackets and rationalize the informal sector’s contribution (simplification of collection methods, lower rates, taxes on external signs of wealth); - (ii) make the collection methods more effective (low cost and high yield); - (iii) make taxes nondiscriminatory by establishing across-the-board regulations and eliminating all risks of arbitrariness. - study the possibility of incorporating an eco-tax into the tax system as a way to avoid environmental degradation caused by human action. - implement a system of incentives for businesses and institutions to gradually reduce pollution or other environmental degradation in line with the framework law on the environment. - Footnote: "This amounts to a tax on damage inflicted on the ecosystem." - Redistribution in favor of poor areas: - earmark mobilized resources to finance social safety nets and regional development hubs envisioned for reducing regional imbalances and promoting community development (cf. fourth strategic pillar). ### Job creation and employment policy - Rationale: - Employment is a key instrument of poverty reduction; job creation depends on strong and sustainable growth and development of human capital. The Government emphasizes private sector role in creating jobs. - Labor market situation: - unemployment rate (including underemployment) estimated at more than 30 percent in 2006 (QUIBB survey); - informal sector, including agricultural sector, occupies more than 80 percent of the working population; - growing lack of job security, substantial contraction of the labor market, and lack of prospects for youth. - Government objective: create legal, institutional, and economic conditions for job creation and income growth. - Employment Promotion and Poverty Reduction Policy Framework Paper (drafted in 2004) — summary of general objectives: - (i) establish greater visibility for the job and labor market; - (ii) establish a legal and institutional environment conducive to productive employment; - (iii) expand a range of credit systems accessible to all developers, from micro- and small-scale through mid-size and large enterprises; - (iv) improve the quality of services in extension, support, and advice for developers and businesses; - (v) create and implement various forms of social protection for different categories of workers. - Strategic targets identified: - (i) build capacities of institutions that promote employment; - (ii) restructure the National Directorate of Employment Promotion; - (iii) strengthen job market information systems; - (iv) upgrade training courses leading to qualification; - (v) improve the legal framework; - (vi) promote the right to work; - (vii) embrace necessary political will and commitment; - (viii) develop self-employment; - (ix) strengthen the social dialogue. - Priority actions by Government: - (i) develop self-employment and women’s access to more and better jobs, promote youth and vulnerable groups’ access to decent jobs, and improve informal sector activities; - (ii) strengthen micro-lending and micro-insurance mechanisms; - (iii) upgrade training courses leading to qualification and revitalize the National Fund for Job Apprenticeship, Training, and Skills Development, the Youth Economic Initiatives Support Fund (FAIEJ), and the Youth Integration Fund. - Measures to ensure sustainability: - (i) make the National Employment Agency (ANPE) operational; - (ii) develop and implement programs to support integration or reintegration of vulnerable groups, especially impoverished individuals; - (iii) establish a map of job opportunities for youth and women in the prefectures and sub-prefectures of Togo; - (iv) promote the business culture through training seminars and inclusion in training curricula; - (v) strengthen the social dialogue through various forms of communication. - Additional approaches: - study overhauling the educational system to encourage young people to return to the land and encourage volunteership among young graduates; - adopt a labor-intensive approach to urban development, reconstruction of economic and social infrastructure (rural roads, schools, health centers, etc.), and development of agricultural lands to absorb unemployed youth. ### Promoting research - Current constraints: - research is in a state of acute crisis; Togo has no major research centers; - existing centers are underequipped and lack adequate support; - higher education and agricultural, industrial, artisanal, and other research centers lack means to carry out research projects. - Government steps taken: - (i) create a research support fund; - (ii) award funding for research in higher education; - (iii) provide research grants to doctoral students since 2005. - Goals for the next three years: - stimulate genuine enthusiasm for research, especially in agricultural productivity; - secure resources to develop better performing and higher value-added varieties in subsectors promising greatest growth; - ensure new varieties are adapted to harmful effects of climate change. - Priority actions: - (i) identify the crops best suited to each agro-ecological zone; - (ii) provide support to research laboratories for development of short-cycle, pest- and disease-resistant varieties; - (iii) identify improved systems of crop preservation and agricultural product processing. - Partnership and training alignment: - promote partnerships between universities and businesses so businesses contribute to funding university research useful to productivity; - strive for a better match between university training and labor market needs by setting up an inter-trade representative council to assess and propose courses of study in higher education and technical and vocational training. ### Third pillar: development of human capital (overview) - Governmental action will focus on: - (i) promoting the education and training system; - (ii) developing the health system and health services; - (iii) improving the nutritional status of the general public; - (iv) improving access to safe drinking water and to sanitation infrastructure; - (v) promoting gender equity and equality; - (vi) promoting social protection; - (vii) promoting youth, sports, and recreational activities. *Source: Excerpt from Box 10: Urban Sector Policy Statement (Ministry of Urban Planning and Housing) and related sections in the provided document.* ### 3.1 Promoting the education and training system ### 3.1 Promoting the education and training system ### Overview and system diagnosis - Over the last 15 years, the Togolese education system has been hit by severe financial constraints due to the country’s socioeconomic circumstances, in combination with the suspension of cooperation with the principal development partners. - Strong school enrollment demand combined with budget constraints has resulted in deterioration of teaching conditions and major structural problems. ### Pre-primary education - Coverage remains very low; rate of coverage targets: - raise from 9 percent to 18 percent in 2015 and 23 percent in 2020. - Current arrangements for early childhood education are lacking; Local Initiative Kindergartens (JEDILs) have developed mainly in rural communities and are financed entirely by parents. Planned actions to reach targets: - establish community-based supply, to be subsidized and organized by the Government, for rural populations; - improve supply quantitatively and qualitatively by rehabilitating existing infrastructure and building new classrooms; - train trainers; - recruit and train male and female educators; - diversify facilities with integrated and flexible programs. ### Primary education: diagnosis and targets - Performance indicators have steadily deteriorated: some 10 percent of children lack access, and roughly 28 percent of those who enroll fail to complete the cycle. - Projection: just 66 percent of children in the generation now entering school will reach the end of primary school by 2015. - Government targets: - first-grade access rate of 100 percent in 2012; - primary school completion rate of 83 percent in 2011 and fully 100 percent in 2015. Planned actions: - boost system capacity in terms of facilities to ensure broad school access and full primary school enrollment; - make basic education free; - recruit and train teachers; - provide schools with textbooks and teaching materials; - transform Local Initiative Schools (EDILs) into public primary schools, cover related operating costs, and integrate volunteer teachers into the ranks of State teachers through a competitive recruitment exam; - establish school meal programs and school health units; - implement a policy aimed at reducing the frequency of repeaters, consistent with the 10 percent benchmark of the Fast Track Initiative. ### First cycle of secondary education: diagnosis and targets - Factors negatively impacting performance: inadequate and inappropriate facilities and teaching conditions, insufficient numbers of teachers and limited qualifications, regional and gender disparities. - Gender and access statistics: - girl/boy parity index of 0.71 and an enrollment ratio of 41 percent for girls, versus 58 percent for boys. - sixth grade access ratio of 52 percent. - High repeater rate of approximately 24 percent. - Transition and survival targets: - control rate of transition from primary to secondary education with objectives: decrease from 78.5 percent in 2007 to 74 percent in 2011 and 65 percent in 2020; - raise survival rate from 68.3 percent in 2007 to 72 percent in 2011 and 80 percent in 2020. - Priority actions: - overhaul the curricula; - strengthen partnership with the private sector; - provide schools with teaching materials in adequate numbers, well-equipped laboratories, and sports facilities; - greatly reduce the repeater rate to guarantee internal efficiency. ### Second cycle of secondary education: diagnosis and actions - Problems: outdated infrastructure and equipment; absence of teaching materials; low enrollment ratio (21 percent national average, with 12 percent for girls versus 34 percent for boys); high repeater rate (31 percent); low retention rate (68 percent). - Government objectives: - improve yield in harmony with technical education, vocational training, and higher education by controlling transition rates, improving survival rate, and reducing repeater rate in line with specified quality standards. - Planned measures: - improve conditions of student facilities; - reduce frequency of repeaters; - reduce class sizes; - significantly increase the level of educational spending per student. ### Technical and vocational education and training (TVET) - Current constraints: low qualification of teacher/trainers, low level of supervision (one inspector for every 545 teachers), outdated and inappropriate infrastructure and equipment, inadequate work stations, absence of teaching and working materials — vocational training remains largely theoretical. - Private sector development has expanded, increasing interregional and gender disparities: - girl/boy parity index of 0.3 overall and 0.039 in industrial sectors; - parity index among teaching ranks is 0.05. - Government intentions and actions: - provide subsector with necessary means to enable young people and adults to acquire knowledge and know-how for workforce integration and national development needs; - revisit supply of technical education and vocational training in relation to economic demand and in partnership with the private sector; - renovate school infrastructure and facilities; - develop integrative vocational training to improve labor productivity in the agricultural and non-agricultural informal sector. ### Higher education and research - Problems: inadequate facilities, outdated teaching equipment, failure to plan management of flows, poor match between trained individuals and social/economic development needs. - Government intentions: - redefine and readjust the mission of higher education by incorporating it into an approach of harmony and complementary consistency with other sector components. - Planned measures: - bring the infrastructure up to standard; - establish, in harmony with secondary education, an educational guidance strategy for controlling student flows; - reshape distribution of students between scientific and literary/legal courses and between public and private sectors; - develop targeted university research; - strengthen and gradually expand the bachelor/master/doctor system. ### Literacy (age 15-45) — diagnosis, target, and actions - Past neglect: literacy component has not received needed attention; illiteracy rate remains high at 40.4 percent, especially among women. - Integration: recent integration of literacy into the education sector for inclusion in overall sector policy. - Government target: - lower the current illiteracy rate to 21 percent by 2015, with emphasis on reducing gender and regional disparities. - Planned actions: - adopt a new approach based on existing models that involve contracting out certain services; - develop a structured partnership between non-State actors charged with providing services and the Government (Government remains responsible for organizing and coordinating literacy programs); - develop specific and functional literacy programs for unenrolled youth and those who have left school, as well as for women and girls; - train trainers. ### Sectoral strategy foundations and resource commitments - The sectoral strategy foundations center on: - (i) increase to 26 percent the share of internal government resources devoted to current expenditures for education; - (ii) improve access, equity, and child retention at all levels, especially for basic education and particularly for girls, children in difficulty, those living with disabilities, and vulnerable and underprivileged populations; - (iii) improve the quality of education in all regards and particularly with respect to the system’s internal efficiency and facility conditions at all levels; - (iv) improve the relevance of the curricula (including modules on the environment) and adapt curricula in line with the country’s development needs; - (v) improve the management and steering of the education and training system; - (vi) develop and promote an effective partnership policy. ### Inclusion and health-related measures within education - All measures will take into account specific education and training needs of vulnerable groups and disabled individuals by implementing inclusive education programs. - Governmental action will focus on implementation of the HIV/AIDS control strategy in educational ranks where it exists (primary, secondary, and technical education) and on prompt development of this strategy where it is lacking (higher education and literacy education). *Source: _cr1033 - 3.1 Promoting the education and training system* ### 3.3 Improving the nutritional status of the general public ### _cr1033 - 3.3 Improving the nutritional status of the general public ### Findings on nutritional status - 26 percent of children under 5 years of age have insufficient body weight. - Close to 24 percent of children suffer from growth retardation. - Micronutrient indices (for iron, iodine, and vitamin A) showed substantial improvement during the period under review. - Malnutrition is most endemic in the northern regions and, more specifically, the Savanes region. - Distinction between chronic malnutrition (on the rise for ten years, especially in the northern regions) and acute malnutrition (which has fallen greatly over the last few years). - Incidence of malnutrition is higher in rural areas than in urban areas. - There is often a positive correlation between the mother’s educational level and improvements in children’s nutritional indices. ### Government objectives - Increase the effectiveness of existing programs and promote new ones to prevent and control nutritional deficiencies in mothers and children. - Raise the awareness of the general public, and particularly of vulnerable groups, concerning the impact of a healthy diet. - Improve the institutional framework of diet and nutrition. ### Planned programs and implementation priorities - Implement the Accelerated Strategy for Child Survival and Development. - Promote foods rich in micronutrients and implement enrichment/fortification of foods. - Implement the national dietary strategy for infants and young children in the context of HIV. - Develop school meal programs in preschools and primary schools in vulnerable areas. - Implement a nutritional program for adolescent girls, pregnant women, and nursing women. - Establish a system of animal-health, plant-health, dietary, and nutritional monitoring. - Initiate and implement specific programs for dietary coverage of vulnerable persons, including senior citizens, HIV/AIDS patients, and mothers and children with severe nutritional deficiencies. ### Awareness-raising and education actions - Carry out informational, awareness-raising, and educational campaigns targeting all public actors and civil society on the importance of a good diet to maintain good health. - Target campaigns particularly at vulnerable groups. ### Institutional strengthening and data systems - Implement measures designed to strengthen institutional capacities and the legal framework for promoting good diet and nutrition. - Improve the information system and data collection mechanism of the diet and nutrition sector. *Source: _cr1033 - 3.3 Improving the nutritional status of the general public* ### 3.7 Promoting youth, sports, and recreational activities ### 3.7 Promoting youth, sports, and recreational activities ### Government objectives for youth - Youth are considered "privileged actors" in socioeconomic, cultural, and political transformations and "it is today’s youth that must take the reins tomorrow." - Recognizes youth faced "tremendous difficulties" during sociopolitical unrest in education and training, health care, socioeconomic integration, sports, culture, and recreational activities. - Primary intents (listed as (i)–(vii)): - (i) promote a good match between training and employment for youth; - (ii) provide a cultural, sports, and socioeducational framework (including socioeducational youth centers) necessary for youth to blossom; - (iii) provide quality education to youth, including youth with disabilities, and facilitate their access to ICTs; - (iv) improve the health status of youth in a healthy environment; - (v) reduce the inequalities between young boys and young girls in regard to access to production factors and decision-making; - (vi) implement the HIV/AIDS prevention and control plan of the Ministry of Youth; - (vii) develop and implement a coverage plan for the unemployed. ### Priorities for sports and recreational activities - Encourage development of sports and expansion of recreational activities via three priority actions: - (i) develop the practice and culture of sports by: - crafting a legal framework for sporting activities; - developing a national program on recreational activities; - creating, renovating, and developing sites or parks for recreational activities throughout the country. - (ii) participate in the influence of sports in the country by: - promoting sports; and - organizing school and university championships throughout the country. - (iii) encourage the practice of sports in school and student settings by: - developing Physical and Sports Education (EPS) teaching programs in schools and universities; - encouraging the practice of physical education; and - providing educational oversight and monitoring of EPS teachers in accordance with teacher evaluation regulations. ### Role within the Fourth Pillar: Community development and reduction of regional imbalances - This pillar is a new strategic thrust within the interim poverty reduction strategy for two reasons: - (i) necessity of implementing a local pro-poor policy reflecting citizens’ expressed grassroots needs; and - (ii) poverty is amplified when policies fail to take inter- and intra-regional imbalances into account. - General objective: set in place appropriate conditions for implementing the poverty reduction strategy at the grassroots level to provide local populations with a "common vital minimum." ### Strengthening local governance and community development support mechanisms - Dual aims: - strengthen local governance and grassroots development support mechanisms to ensure effective participation by grassroots organizations in poverty reduction; and - develop regional and local potential to promote local development and prevent worsening inter- and intra-regional imbalances. Key objectives in this area: - (i) provide local communities with instruments to make decentralization operational by promoting a local dynamic; - (ii) induce communities to set up systems for planning, managing, monitoring, and evaluating development actions by promoting appropriate local development management tools; - (iii) strengthen mobilization of resources to finance local development through mechanisms for accrediting local organizations and promoting access to inclusive finances accessible to poor communities and individuals. Promote a local dynamic - Institutional and organizational capacity building for local communities to manage regional and local development through participatory approaches in partnership with Government. - Specific intentions: - (i) organize socioeconomic, political, and cultural structures of planning, guidance, and steering to ensure effective ownership of the poverty reduction strategy at the local level; - (ii) build the capacities of local actors. - Rehabilitation and strengthening of decentralized planning frameworks (main elements listed): - Village Development Committees (CVDs) at the village level; - Canton Development Committees (CCDs) at the canton level; - Local Planning Committees (CLPs) at the prefecture level; - Regional Planning Committees (CRPs) at the regional level; - Regional and Local Participatory Monitoring Committees (CRSP/CLSPs). - Set official mechanisms for recognition and accreditation of community-based organizations (CBOs), including CVDs, Neighborhood Development Committees (CDQs), and their specialized committees. - Formation within each Local/Regional Planning Committee of specialized committees and technical coordination units. Strengthen Municipal and National Quadrilogues - Plan to strengthen the Municipal and National Quadrilogues to create a four-sided framework of consultation among Government, local communities, the private sector, and civil society. - Partnership with the Union of Togolese Municipalities as an additional means of governmental action. Promote intermunicipal collaboration - Encourage participatory preparation of development projects and the formation of intermunicipal agencies to make projects viable. Build capacities of non-State local actors - Support civil society and private sector actors to improve service delivery for sustainable regional and local development through: - (i) strengthening organizational and technical capacities; - (ii) clarifying legal status; - (iii) forming operational partnerships to assist in resource mobilization. Capacity building for local authorities and prefecture administration - Address legitimacy issues and consensus-building needs identified from special delegations of urban municipalities. - Strengthen capacities of local planning entities in design, analysis, implementation, and monitoring. - Training focus areas for local elected officials: - proactive strategic planning; - operational planning; - project management; - results-oriented management; - annual work plans; - procedures for mobilizing resources through technical and financial partners; - project ownership, bidding documents, accounting, monitoring and evaluation systems, personnel management, and communication techniques. - Provide prefecture administration with tools to assess consistency between municipal planning instruments and national policy and ensure compliance with commitments made under project contractualization. Infrastructure and local economic governance - Baseline survey shows local communities operate under difficult conditions. - Under Law No. 2007-011 of March 13, 2007 on decentralization and local liberties, a study will identify infrastructure types to improve working conditions of local elected officials. - Examine local economic governance to rationalize budget decisions, make public spending more effective, and boost local public savings to increase local investment. Promote participatory planning of local development - Apply the PRSP at regional and local levels to ensure consistency among interventions and promote public participation in local management. - Establish local development programs built around Village Action Plans (PAVs) and operational strategies/action plans for sectoral policies and programs. - Each local development program (spanning three years) will be broken down annually into: - an annual work plan; - a credit consumption plan; - a procurement plan; and - an indicator performance chart. - Reinforce local development programs to ensure effective central-level coordination and national-level consistency. - Implementation tools and programs cited for microprojects and small-scale activities include: - Regional Public Investment Programs (PRIPs); - Millennium Village Joint Program; - Multiyear Microproject Programs (PPMRs); - Community Development Program (PDC); - development projects and programs of various actors. Decentralized information systems and citizen awareness - Implement a decentralized information and communication system and a matching database to ensure real-time availability of information needed for actions. - Use the communication system to raise citizen awareness about local elections and promote participation in public affairs. - The system will generate information for monitoring and evaluating implementation of plans and the PRSP. Strengthen mobilization of resources to finance local development - Develop dynamic partnerships with local actors extending to control of local finances, promotion of microfinance, and development of an accreditation mechanism. Control of local finances - Intend to deconcentrate the Directorate General of Taxation (DGI) by separating tax base operations, duty payments, and the issuing/placing of assessment notices and receipts to improve poor information flows between DGI and offices of account managers/public accountants of local communities. - Conduct studies on local finances to clarify the legal environment of local taxation and establish a database on the full range of potential for each municipality, prefecture, and region to inform arrangements for resource transfers. - Build communities’ capacity to mobilize and transparently manage resources to increase taxpayer commitment. Promote microfinance - Microfinance identified as a key instrument to accompany resource mobilization for municipal development. - Recognizes MFIs are nonprofit and may not maintain presence in low-clientele communities; Government will study ways to cover additional costs to enable MFIs to operate where demand for microcredit exists. - Rapid growth of MFIs financing informal sector activities (small trade, handicrafts, small farms) noted. - Plans to promote financing for the informal sector and support MFIs by establishing a microfinance guarantee fund to be used to: - (i) finance women’s income-generating activities; - (ii) finance small agricultural activities undertaken by professional rural farmers; - (iii) assist in organizing agricultural industries, upstream and downstream, to ensure production, processing, and marketing; - (iv) encourage financing for small artisanal activities by providing organizational support; - (v) encourage financing for artists and groups of artists operating in the sociocultural sector (culture, recreation, theater, cinema, sports) to help them develop initiative and talent; - (vi) support innovations within MFIs; - (vii) establish a guarantee fund for equipment acquisitions. Local organization accreditation mechanism - Develop a chart laying out conditions and procedures applicable to a local organization that might be accredited. Institutional arrangements for implementation - Creation of an ad hoc agency charged with organizing, structuring, professionalizing, and accrediting community-based organizations and grassroots groups. - Establish a Community Development Support Fund to assist these entities in financing community projects and income-generating activities. *Source: _cr1033 - 3.7 Promoting youth, sports, and recreational activities* ### 4.1 Reduction of regional imbalances through the development ### 4.1 Reduction of regional imbalances through the development of regional and local potential ### Regional disparities and demographic pressures - Maritime (including Lomé-Golfe) and Plateaux regions: relatively low poverty incidence. - Central, Kara, and Savanes regions: high incidence of poverty. - Maritime (including Lomé-Golfe) and Plateaux regions make up just 40 percent of the country’s land area and concentrate nearly 67 percent of the country’s population. - Resulting fragmentation produces population flow from north to south and from rural to urban areas, contributing to gradual impoverishment of southern regions and urban areas. - Government objective: develop the economic potential of each region to reduce regional imbalances and poverty. ### Balanced emergence of development hubs - Policy aim: stimulate wealth creation locally by promoting balanced emergence of growth and development hubs (agricultural, industrial, service — commercial, tourist, other services). - Agricultural hubs - Agro-ecological suitability by region (as listed in source): - Savanes: cotton, sorghum, millet, rice, yams, tomatoes, onions, groundnuts, cowpeas. - Kara: cotton, maize, sorghum, yams, tomatoes, rice, cowpeas, soy, groundnuts, cassava, millet. - Central: cotton, maize, sorghum, millet, rice, cassava, yams, cowpeas, groundnuts, soy. - Plateaux (eastern): maize, cowpeas, groundnuts, rice. - Plateaux (western): coffee, cocoa, oil palm, maize, cassava, yams, rice. - Maritime: maize, cassava, cotton, oil palm, vegetables. - Targeted valleys and plains for hub development: Zio, Lili, and Yoto valleys (Maritime); Mono valley and Litimé (Plateaux); Mô plain, Mono plain, Adélé (Central); Dankpen, Bassar, Assoli (Kara); Oti plain and Cuesta area (Savanes). - Livestock and fisheries: rehabilitate and refocus ranches Avétonou (Plateaux), Adélé (Central), Namiélé (Savanes); develop maritime fisheries in Maritime region. - Priority prefectures for special treatment due to high poverty: - Savanes: Kpendjal, Tandjoaré, Oti, Tône. - Kara: La Binah, Bassar, La Kéran, Dankpen, Doufelgou. - Central: Sotouboua, Tchamba, Blitta. - Plateaux: Wawa, East Mono. - Maritime: Vo, Yoto, Avé. - Industrial hubs - Strategy: link industrial hubs to mining potential and agroprocessing around agricultural hubs. - Feasibility studies/actions listed: - Maritime: rehabilitate Alokoègbé and Agou oil mills and Ganavé starch mill. - Maritime: promote fruit processing plant in Danyi; rehabilitate SONAPH palm nut processing in Agou; cotton ginning in Talo and Notsé; textile factory in Datcha. - Central: develop industries around Nyaoulou marble deposits; agroprocessing in Sotouboua; process cashew apples and seeds in Tchamba. - Kara: rehabilitate UPROMA agricultural equipment production facility and TOGOTEX textile factory. - Savanes: rehabilitate Nassablé rice hulling facility; promote tomato and fruit processing facilities. - Service hubs (commercial, tourist, other services) - Commercial hubs: cities/marketplaces with subregional tilt identified — Vogan, Assahoun (Maritime); Anié, Badou (Plateaux); Sokodé, Blitta (Central); Kétao, Kabou (Kara); Cinkassé, Koundjoaré, Gando, Yembour (Savanes). Government will provide modern market infrastructure and improve accessibility. - Tourist and cultural hubs: identified sites by region (examples listed in source). Strategy: develop tourist hubs through clusters of tourism projects spread throughout the country. - Business-related services: develop financial, telecommunications, and remote services around larger cities (Tsévié, Atakpamé, Sokodé, Kara, Dapaong) and medium-size prefecture seats to establish employment opportunity centers. ### Balanced development of human capital - Objective: achieve minimum human resources potential for hub emergence via access to education, health care, water, and sanitation. - Education - Savanes region has lowest primary school enrollment ratio: gross primary school enrollment ratio of 96.0 percent; other regions have ratios equal to or greater than 100 percent. - Interpretation: problem in education supply (school availability/student capacity) in Savanes; demand-side efforts still needed. - Government actions: strengthen overall education initiatives to increase supply in Savanes (priority Kpendjal and Oti prefectures); establish in each region a minimum action package for technical education and vocational training critical to hub emergence. - Health care - Savanes (and to a lesser extent Central and Kara) face difficulties in proximity of health services, impacting mother and child health. - Lomé-Golfe and Maritime region inhabitants are much less vulnerable to malaria and HIV/AIDS. - Government priorities: - Strengthen supply of health services, priority Savanes, then Central and Kara. - Mother and child health: focus first on Savanes, then Kara. - Malaria protection and HIV/AIDS prevention/control: target Lomé-Golfe and Maritime region. - Water and sanitation - Difficult access to safe drinking water and sanitation more acute in Plateaux (particularly) and Maritime regions; Savanes ranks third. - Government intends to substantially strengthen water and sanitation initiatives in Plateaux, Maritime, and Savanes regions. - Specific measures regarding latrine use in Savanes and Kara regions. ### Balanced upgrading of infrastructure in support of growth - Infrastructure focus: transportation, energy, telecommunications to promote private entrepreneurship and support regional hubs. - Urban measures: expand urban road systems, power and water systems on outskirts of Lomé; improve sanitation and urban road quality in Lomé. - Rural and regional measures: - Open or rehabilitate major rural roads in each region to ensure access to hubs. - Rehabilitate or pave national and interstate roads strategic for hub development. - Medium-term planning: gradual electrification of villages and expansion of telecommunications in each region. - Improve organization and provision of urban and rural transportation with municipalities and private sector. - Electricity access target: raise rate of access to electric power from 28 to at least 50 percent in all regions. - Digital access: establish and improve Internet systems in all prefectures; reduce digital divide so underprivileged segments can afford communication expenses. ### Spatialization of development projects and programs - Objective: integrate regional dimension into public investment project design at sectoral and central levels. - Actions: - Encourage strategic discussions within each sector to determine planned outcomes for each region. - Develop maps of development projects and programs per region and per sector. - At local level, map outcomes based on planned development hubs and actions for human capital and infrastructure. - Promote implementation of clusters of development projects and programs serving as nationwide benchmarks for planning (central, regional, local). - Definition: "cluster of projects and programs" = package of projects and programs from sectoral maps of outcomes per region and regional hub/social safety net outcome maps. - For each cluster/group of clusters: prepare a spatial agenda situating project sites within an overall scheme with geographic positioning and cartographic documents. - Integrate regional and local development plans/strategies into a national development strategy. - Budgetary process: - At heart of budget discussions, establish priorities based on clusters of projects and programs targeting regions. - Inter- and intra-sectoral arbitration in budget conferences to revolve around these clusters in conformity with the Priority Action Program for implementing the full poverty reduction strategy. - Align budget appropriations with priority order of development project/program clusters. - Special attention to the country’s poorest and most vulnerable regions. - Reaffirmation of commitment to the joint initiative for the promotion of Millennium Villages and poverty reduction in Togo. ### Box 14 — Joint initiative for the promotion of Millennium Villages and poverty reduction in Togo - Program purpose: achieve the Millennium Development Goals (MDGs) and promote development of the poorest rural areas by ensuring access to technologies to boost agricultural productivity and improve health, education, and market access. - Scope: nationwide program over five years targeting 10 rural municipalities in the poorest regions: three each in Savanes, Kara, and Central regions, and one in the Maritime region. - Principal targeted actions (listed as in source): (i) develop agricultural potential; (ii) improve producers’ access to agricultural credit, inputs, and veterinary products; (iii) enhance tourist sites through development and participatory management; (iv) develop private initiatives; (v) improve processing techniques for local agricultural products; (vi) improve women’s knowledge of and access to property and credit; (vii) promote school enrollment by girls; (viii) rehabilitate and create local markets and other economic infrastructure; (ix) improve access to education, health care, safe drinking water, and sanitation; (x) improve access to transportation infrastructure, power sources, and ICTs. - Phased approach: - Two phases envisioned given innovative learning required: - First phase: last two or three years; focus on two pilot municipalities in Savanes. - Second phase: last two or three years; cover eight remaining municipalities. - First phase under way in municipalities of Kountoiré and Naki-Est (Savanes region), in prefectures of Oti and Kpendjal. - Financing of initial start-up phase: - Total raised: US $18,327,000 dollars. - Contributions: 27 percent by Government and public authorities; 9 percent by target communities; 46 percent by donors; 18 percent by private sector and other stakeholders. *Source: Ministry of Cooperation, Development, and Land Use (as presented in the IMF document)* ### Macroeconomic framework for the strategy — scenarios and targets - Purpose: determine profile of macroeconomic aggregates compatible with the full poverty reduction strategy, forecast resource mobilization, priority expenditures, and overall results; detail financing in the Priority Action Program; identify absorption risks. - Context and approach: - Framework remains circumspect due to uncertainties: recovery of world growth, subregional food crisis effects, Togo’s emergence from political and economic fragility. - Framework hinges on gradual revival of growth with potential to accelerate towards MDGs. - Two scenarios provided: baseline scenario and alternative MDG-acceleration scenario. - Baseline scenario - Consistent with macroeconomic framework agreed with the IMF in connection with the three-year program supported by the PRGF (mission of February 11-25, 2009; authorities favoring targets set on February 25). - Focus: improve public finance management and implement structural reforms to revive growth and foreign competitiveness within WAEMU fixed exchange system. - Expected effects: - Increase GDP growth rate by 3 percentage points between 2008 and 2011. - Total public expenditures and public investment expenditures should grow respectively by 4 and 2 percentage points of GDP over this period without generating inflation. - In these conditions, a GDP growth rate of some 4.1 percent and a budget deficit well below 5 percent of GDP are expected in 2011. - Note: baseline scenario, rooted in public finance rehabilitation, does not adequately incorporate investments required to meet the MDGs. - Alternative (MDG acceleration) scenario - Based on the United Nations Secretary-General’s initiative to accelerate G8 commitment to double assistance to poor countries to US $85 per person and maintain it at this level. - Given current level of ODA in Togo: roughly US $11 per person in 2008, the MDG scenario depends on improved resource mobilization to finance public expenditures in MDG-targeted sectors. - Projected effect: the new expenditure profile would add an extra point and a half to growth in GDP over the period from 2008 to 2011 in comparison to the baseline scenario. *Source: IMF document — Chapter 4.1 and Chapter 5 excerpts* ### 1. BASELINE SCENARIO ### 1. BASELINE SCENARIO ### Baseline overview - Medium-term reform strategy to gradually raise economic growth and lay groundwork for a viable budget and a good external reserves position. - Goal: increase the primary budgetary balance to obtain a surplus of at least 1 percent of GDP by 2011 to avoid accumulating new payment arrears and reduce the necessity of resorting to new loans. - Assumptions include: an increase in foreign aid of close to three percentage points of GDP between 2008 and 2011 and an overall easing of the debt under the HIPC Initiative. - Achievement depends greatly on satisfactory implementation of planned reforms. ### Principal macroeconomic framework indicators (Table 8) - Principal indicators (2005-2007 / 2008 / 2009 / 2010 / 2011) - Real GDP growth rate: 2.4 / 1.1 / 1.7 / 3.3 / 4.1 - Public investment rate (as a percentage of GDP): 4.0 / 3.9 / 4.8 / 7.1 / 7.0 - Consumer price index: 3.3 / 8.7 / 2.8 / 2.1 / 2.5 - Current balance (as a percentage of GDP): -6.2* / -6.6 / -4.3 / -4.2 / -3.6 - Primary budgetary balance (as a percentage of GDP): -0.5 / 0.4 / -0.6 / 0.6 / 1.0 - Total budgetary balance (as a percentage of GDP): -3.1 / -1.0 / -3.2 / -2.0 / -1.0 - Source: Togolese authorities – IMF, February 25, 2009 - Note: * Average figure for 2006 and 2007 ### Principal arguments of the macroeconomic framework - (i) resumption of growth; - (ii) price stability; - (iii) consolidation of public finances; - (iv) a strong domestic contribution to the financing of the strategy; - (v) alignment of resources with national priorities; - (vi) sustainability of the balance of payments deficit; - (vii) control of money supply. ### Resumption of growth - Target: sustained growth of 3 additional percentage points over the strategy implementation period, rising from 1.1 percent in 2008 to 4.1 percent in 2011. - Growth hinges on activating gains in productivity in the primary and secondary sectors during 2009-2010. - Demand-side projection: overall investment rate increases from 12.6 percent in 2008 to 17.5 percent of GDP in 2011. - Savings-investment balance: from -6.7 percent in 2008 to -3.3 percent in 2011. - Real growth in sectors of activity (Table 9) - 2005-2007 / 2008 / 2009 / 2010 / 2011 - Primary sector: 1.9 / 2.9 / 2.3 / 3.1 / 5.4 - Agriculture: 1.3 / 3.1 / 2.4 / 3.0 / 6.0 - Livestock, forestry, and fisheries: 3.7 / 2.9 / 2.0 / 3.5 / 4.0 - Secondary sector: 3.9 / 0.8 / 2.8 / 4.5 / 3.4 - Extractive industries: -7.2 / -0.6 / -2.0 / 7.2 / 8.1 - Manufacturing industries: 7.9 / 5.0 / -1.0 / 2.5 / 2.5 - Construction and public works: 11.1 / 0.9 / 20.0 / 9.0 / 2.5 - Electricity, water, and gas: 2.6 / -11.0 / 3.0 / 2.5 / 2.5 - Tertiary sector: 0.7 / -0.1 / 0.9 / 3.0 / 3.5 - Market tertiary sector: 0.6 / 0.4 / 0.9 / 2.6 / 3.5 - Trade: 3.5 / -0.5 / 1.0 / 2.0 / 3.5 - Transportation, warehousing, and communications: 1.4 / 1.7 / 1.0 / 3.5 / 3.5 - Banks and insurance: -17.3 / 14.2 / 1.0 / 3.0 / 3.5 - Other services: -7.7 / 0.0 / 0.2 / 3.0 / 3.5 - Nonmarket tertiary sector: 0.9 / -1.3 / 1.0 / 3.8 / 3.5 - GDP: 2.4 / 1.1 / 1.7 / 3.3 / 4.1 - Notes: - Real agricultural growth highest in 2011 requires massive investments throughout the strategy period to boost sector potential and obtain real growth of more than 5 percent in 2011. - Substantial increase in food and cash crop (cotton, coffee, and cocoa) production is central to agricultural reforms. - Major efforts required to revive phosphate production in 2010 on a sustainable basis. - Volume and quality of investments in economic infrastructure (energy and roads) and non-physical infrastructure (financial services, business climate) will determine vitality of economic activity, particularly services. ### Price stability - Despite increased domestic demand from government socioeconomic infrastructure spending, goal is to maintain domestic price stability. - Target: bring down the inflation rate to within the WAEMU limit, which is no more than 3.0 percent. - Expected instruments: strong increase in output and effective community monetary policy. ### Consolidation of public finances - Fiscal policy objectives: - Improve government revenue and control government spending to limit financing gaps. - Tax pressure rate to rise from 16.4 percent in 2008 to 17.4 percent by 2011. - Budgetary revenue to rise from 17.1 percent of GDP in 2008 to 18.2 percent in 2011. - Expenditure composition: - Current expenditures: 15.8 percent of GDP in 2008 to 16.5 percent in 2011. - Capital expenditures: 3.9 percent of GDP in 2008 to 7.0 percent in 2011. - Budget deficit (excluding grants based on payment orders) remains slightly higher than 5 percent of GDP throughout the period; considered sustainable given expected financing. - Residual financing requirement for the TOFE: - CFAF 37.5 billion in 2009 - CFAF 26.3 billion in 2010 - CFAF 9.3 billion in 2011 - PRGF and IDA grants for 2009 and 2010 are expected to fully cover the 2009–2010 financing gap; additional international community support needed to cover the 2011 gap. - Table of Government Financial Operations (TOFE), 2008-2011 (Table 10) — selected lines (as a percentage of GDP) - REVENUE AND GRANTS: 18.7 (2008) / 19.1 (2009) / 21.9 (2010) / 22.5 (2011) - REVENUE: 17.1 / 16.9 / 17.6 / 18.2 - GRANTS: 1.6 / 2.2 / 4.3 / 4.3 - TOTAL EXPENDITURES: 19.7 / 22.6 / 23.9 / 23.5 - CURRENT EXPENDITURES: 15.8 / 16.6 / 16.8 / 16.5 - Domestic current primary expenditures: 14.6 / 14.7 / 15.0 / 15.2 - Interest on the public debt: 0.8 / 1.0 / 1.0 / 0.5 - Current expenditures using external financing: 0.4 / 0.9 / 0.8 / 0.8 - INVESTMENT EXPENDITURES: 3.9 / 5.9 / 7.1 / 7.0 - Domestic contribution: 2.1 / 3.1 / 2.0 / 2.0 - External sources: 1.8 / 2.8 / 5.1 / 5.0 - Domestic primary budgetary balance: 0.4 / -1.0 / 0.6 / 1.0 - Budgetary balance based on payment order excluding grants: -2.5 / -5.7 / -6.3 / -5.3 - Budgetary balance based on payment order: -1.0 / -3.5 / -2.0 / -1.0 - Change in arrears: 0.0 / -0.9 / -0.7 / -0.5 - Total balance (cash basis): -0.9 / -4.4 / -2.7 / -1.5 - Financing: 0.9 / 4.4 / 2.7 / 1.5 - Domestic financing: -1.0 / 0.6 / -0.3 / -0.5 - External financing: 1.9* / 1.0 / 1.1 / 1.4 - Consists of: Drawings: 0.5 / 1.5 / 1.6 / 1.5 - Debt retirement: -1.8 / -1.5 / -1.4 / -0.1 - Settlement of the debt and arrears: -33.0 / 0.0 / -19.1 / 0.0 - Reschedulings obtained: 15.0 / 0.0 / 0.0 / 0.0 - Debt cancellation: 18.0 / 0.0 / 19.1 / 0.0 - Financing gap**: 0.0 / 2.8 / 1.9 / 0.9 - Source: Togolese authorities - IMF, February 25, 2009 - Notes: - * For fiscal year 2008, there was a surplus of 0.3 percent of GDP carried forward; financing line balanced on the basis of the external financing line. - ** Incorporates both the special financing line and the residual financing requirement line of the financial operations table adopted in agreement with the IMF. ### A strong domestic contribution to financing the strategy - Domestic resources finance: - 74 percent of the total budget in 2009 - 70 percent in 2010 - 73 percent in 2011 - External resources (already announced) finance: - 14 percent in 2009 - 23 percent in 2010 - 24 percent in 2011 - Financing gaps: - 12 percent in 2009 - 7 percent in 2010 - 3 percent in 2011 - Table 11: Total budget and financing of the F-PRS (in billions of CFAF) - 2009 / 2010 / 2011 - Estimated public expenditures: 301.2 / 334.2 / 349.4 - Domestic resources*: 222.0 / 232.6 / 255.7 - External resources**: 41.7 / 75.3 / 84.4 - Financing gap: 37.5 / 26.3 / 9.3 - * total revenue + domestic financing + change in arrears - ** external financing + grants ### Alignment of financial resources with national priorities - Supplemental budget allocates increased shares to priority sectors: health, education, agriculture, water and sanitation, and infrastructure (transportation, energy, telecommunications). - Operating expenses: steady increase of 3 percent per year for all sectors over 2009-2011, taking into account personnel recruitment and specific needs. - Investment expenditures: discounted for non-priority sectors at a rate of 4 percent; priority sectors receive the remainder of supplemental budget each year. - Share of total expenditures in priority sectors: 45.5 percent (2005-2007) rising to 67.4 percent by 2011. - Breakdown of the framework’s total budget between priority sectors and other sectors (Table 12) — selected figures (in billions of CFAF) - Total (Performance 2005-2007 / 2008 / Projection 2009 / 2010 / 2011) - Total: 185.19 (2005-2007) / 241.51 (2008) / 301.20 (2009) / 334.20 (2010) / 349.40 (2011) - Priority Sectors total: 84.26 / 113.46 / 169.35 / 199.45 / 235.56 - Education total: 43.33 / 53.00 / 64.25 / 72.37 / 82.16 - Health total: 18.34 / 26.35 / 41.41 / 49.42 / 58.79 - Agriculture total: 5.47 / 21.37 / 29.10 / 32.78 / 37.25 - Water/Sanitation total: 5.97 / 1.89 / 8.60 / 11.73 / 15.55 - Infrastructure total: 11.15 / 10.86 / 26.00 / 33.14 / 41.82 - Other Sectors total: 85.93 / 95.54 / 98.45 / 101.45 / 104.54 - Debt: 15.01 / 32.52 / 33.40 / 33.30 / 9.30 - Source: Togolese authorities ### A sustainable balance of payments deficit - Exports expected to begin increasing in 2010 after a decline of 2 percentage points of GDP in 2009 compared to 2008. - Exports: would come to 21.5 percent of GDP in 2009 versus 23.5 percent in 2008. (text truncated after this point) - Transfers: increase slightly over 2010-2011 after a decline in 2009; private transfers remain in decline throughout 2009-2011 due to the international financial crisis; public transfers expected to grow. - Current external payments over 2009-2011: average deficit of approximately 4 percent of GDP versus 6 percent over 2006-2008. - Gross international reserves: equivalent to more than three months of imports over the strategy implementation period. ### Controlled money supply - Money supply growth averaged 15 percent over the last three years prior to the document, despite persistent bank problems being addressed. - Through sector reforms, money supply projected to grow by an average of 10 percent during the F-PRS period. - Policy to align with common monetary policy (statement truncated in source). *Source: Togolese authorities – IMF, February 25, 2009* ### 27.9 percent respectively in 2010 and 2011. ### _cr1033 - 27.9 percent respectively in 2010 and 2011. ### 2. ALTERNATIVE SCENARIO FOR ACCELERATION TOWARDS MEETING THE MDGS — Gleneagles optimistic scenario - Scenario premise: - Based on additional Official Development Assistance (ODA) mobilized under the initiative of the Secretary-General of the United Nations for the MDGs in Africa, in connection with the G8 Gleneagles commitment to increase ODA to poor countries. - Assumes per capita ODA climbs to US $85 in 2010 and that the country reaps the benefits of this commitment extended to 2011 to account for the likely impact of the global financial and economic crisis. - Assumes a linear progression in per capita ODA between years. - Required ODA flows for Togo to reach US $85 per person in 2011: - ODA for Togo: US $61 million in 2008; US $204 million in 2009; US $354 million in 2010; US $511 million in 2011. - Average ODA (2009-2011): US $356 million per year. - Per capita ODA progression: US $11 in 2008; US $36 in 2009; US $60 in 2010; US $85 in 2011. - Allocation intent: - Additional external resources for scaling-up and reaching US $85 per person are directed almost entirely towards spending in MDG priority sectors. - Anticipated principal earmarking: public expenditures in MDG-related sectors to accelerate attainment of the MDGs. ### Table 13: Additional flows to be mobilized under the Gleneagles scenario (reported values) - Projected per capita ODA (US$): 11 (2008), 19 (2009), 31 (2010), 32 (2011), Average (2009-2011) 27 - Additional financing requirements for scaling-up (US$ millions): - (2008), 153 (2009), 184 (2010), 251 (2011), Average (2009-2011) 196 - ODA resources based on Gleneagles (US$ millions): 61 (2008), 204 (2009), 354 (2010), 511 (2011), Average (2009-2011) 356 - Expected per capita ODA based on Gleneagles (US$): 11 (2008), 36 (2009), 60 (2010), 85 (2011), Average (2009-2011) 60 - Additional ODA based on Gleneagles (US$ millions): - (2008), 95 (2009), 170 (2010), 319 (2011), Average (2009-2011) 195 - Source: Togolese authorities ### Table 14: Additional investments for accelerating towards the MDGs (as a percentage of GDP*) - Education: 1.4% (2009), 1.4% (2010), 1.8% (2011), Average (2009-2011) 1.5% - Health: 1.0% (2009), 1.1% (2010), 1.4% (2011), Average (2009-2011) 1.2% - Gender: 0.2% (2009), 0.2% (2010), 0.3% (2011), Average (2009-2011) 0.2% - Agriculture: 0.6% (2009), 0.7% (2010), 0.8% (2011), Average (2009-2011) 0.7% - Water and Sanitation: 0.2% (2009), 0.6% (2010), 1.0% (2011), Average (2009-2011) 0.6% - Energy: 0.3% (2009), 0.7% (2010), 1.5% (2011), Average (2009-2011) 0.8% - Roads: 0.3% (2009), 0.8% (2010), 1.0% (2011), Average (2009-2011) 0.7% - Governance: 0.0% (2009), 0.1% (2010), 0.2% (2011), Average (2009-2011) 0.1% - Other sectors (employment, community development, statistics, environment, etc.): 0.0% (2009), 0.1% (2010), 0.1% (2011), Average (2009-2011) 0.1% - Source note: *These GDP levels were determined during the IMF mission in February. ### Macroeconomic impact of the Gleneagles scenario (IMF analysis) - Reported IMF analysis finding: - A permanent increase in assistance would have a positive and lasting impact on growth and per capita GDP. - Growth in GDP would be one percentage point higher, on average, over the first ten years. - The positive impact of increased assistance would be relatively greater on the accumulation of public and private capital, given the country’s prolonged deprivation of donor financial support. - Government implementation intent: - Organize, through the Government/Donor Committee, a round table with all the country’s TFPs every six months to step up advocacy to concretize Gleneagles commitments. - Domestic focus on building absorption capacities of the Togolese economy; Government intends to make every effort to gradually meet this challenge. ### 3. RISK ANALYSIS AND PROSPECTS FOR ACHIEVING THE MDGS — risks and constraints - Key risk categories identified for the reference scenario: - (i) Exogenous shocks: lack of good climate conditions, volatility of world prices for agricultural products, higher oil prices, etc. - (ii) Resource absorption capacity: cumbersome budgetary procedures, disbursement delays, capacity problems, etc. - (iii) Quality of resource assignment: level of real attention to strategy priorities. - (iv) Slow implementation of structural reforms, especially in energy, roads, and telecommunications. - (v) Pace of reforms to improve the business environment. - (vi) Presidential elections without clashes and without violence. - Additional risk: Lack of political commitment that could complicate effective implementation; need for unprecedented leadership by ministry officials. - Non-State actor roles and expectations: - Civil society: play a dynamic role in mobilizing communities, facilitating social interaction, promoting local ownership and participation. - Private sector: enter into a key partnership with government and civil society; establish consultation frameworks. - Development partners: support the process and help absorb potential exogenous shocks that could interfere with macroeconomic objectives. - Beneficiaries/local citizens: take real ownership and become actively involved in implementing, monitoring, and evaluating the strategy. - Additional constraints specific to the optimistic (Gleneagles) scenario: - (i) Government’s weak institutional and human capacities. - (ii) Inadequate capacities at central and sectoral levels for managing and monitoring resources (planning, programming, budgeting, monitoring and evaluation). - (iii) Inadequate capacities for mobilizing resources needed for program implementation. - (iv) Nonexistent capacity in formulating and implementing forward-looking policies. ### Priorities and recommended measures to lift constraints and accelerate progress towards the MDGs - Institutional and operational measures: - (i) Create and make use of delegated contracting authority agencies to accelerate implementation of investment projects. - (ii) Use operational services of United Nations System agencies (particularly UNDP) by subcontracting government procurement to accelerate acquisition of equipment and provision of goods and services. - (iii) Strengthen capacities of line ministries in programming, implementation, and monitoring and evaluation of development programs and projects (skilled human resources, logistics and work tools, training). - (iv) Strengthen operational capacities of Administrative and Financial Directorates of priority ministries in programming and monitoring procurement procedures. - (v) Set in place an information system providing a detailed, consolidated, and forward-looking vision of official development assistance (with regular updating). - (vi) Establish twice-yearly consultations between project coordinators and entities coordinating and managing official development assistance. - (vii) Provide training to administrative officials on central themes of effective public service, such as exercising leadership functions and the importance of a monitoring system. - Governance recommendation: - It is particularly important that the Government/Donor Committee be set up. ### CHAPTER 6: INSTITUTIONAL FRAMEWORK AND MECHANISMS FOR IMPLEMENTING AND MONITORING THE STRATEGY — institutional arrangements - Implementation depends on three essential conditions: - (i) Development of the Priority Action Program. - (ii) Set-up of the new institutional framework. - (iii) Capacity-building for key actors expected to drive the institutional framework. - Main institutional mechanisms for implementing and monitoring/evaluating the F-PRSP: - National Council on Development Policy and Poverty Reduction (CNPDLP): - Chaired by the Prime Minister. - Composition: representatives of all branches of Government and nongovernmental stakeholders (civil society organizations, unions, private sector, Economic and Social Council (to be established), religious denominations, technical and financial partners). - Meets once a year on the occasion of the annual PRSP review. - After each annual review, Prime Minister, with CNPDLP members, presents a report to the National Assembly at a consultative session. - Interministerial Committee on Poverty Reduction Strategies (CISLP): - Oversees implementation by periodically reviewing reports on the Technical Steering Committee for the PRSP. - Charged with monitoring the Millennium Development Goals and the Paris Declaration at the national level. - Holds at least one working session with Government/Donor Committee and Network of Civil Society Organizations prior to the annual PRSP review. - Includes all Government Ministers; chaired by the Minister of Finance; Minister of Development is vice-chair; Permanent Technical Secretariat performs secretarial functions. - Technical Steering Committee for the Poverty Reduction Strategy (CTP): - Handles technical coordination and closely monitors priority PRSP operations, macroeconomic stabilization measures, and sectoral/cross-cutting reforms. - Membership includes Secretaries-General of ministries participating in CISLP (or Cabinet Directors), the BCEAO National Director. - Organized into four Technical Subcommittees (SCTs): SCT 1 Governance, SCT 2 Growth Policies, SCT 3 Economic Infrastructure, SCT 4 Social Sectors. - Secretary-General of the Ministry of Finance chairs the Technical Steering Committee, assisted by three vice-chairs; secretarial functions by the Permanent Technical Secretariat of the PRSP. - Permanent Technical Secretariat of the PRSP: - Created to provide a lasting structure with substantial permanent expertise for coordinating development, implementation, monitoring, and evaluation of the PRSP. - Led by a Permanent Technical Secretary; described as the keystone of the PRSP institutional framework. - Sectoral PRSP Committees: - Monitor and evaluate PRSP operations at the sectoral level within each line ministry. - Chaired by Secretaries-General (or Cabinet Directors), recorders are Directors of Studies and Programming, assisted by the Permanent Technical Secretariat. - Membership: one representative per technical directorate; program/project coordinators/directors; representatives of subsidiary agency/oversight entity; representatives of civil society and private sector; representatives of technical and financial partners. - Regional Participatory Monitoring Committees (CRSPs): - Carry out participatory monitoring and evaluation of projects and programs at regional level. - Independent and autonomous vis-à-vis national structures but act as counterparts. - Composition: future Regional Governor (chairperson); Regional Director of Development (secretary); representatives of municipal councils, prefecture councils, regional council, deconcentrated government directorates, traditional chiefs, Regional Chamber of Agriculture, Regional Chamber of Trade, NGOs, women’s development associations, trade union organizations, Village Development Committees. - Pending decentralization, CRSPs may be chaired initially by prefects of regional capitals. - Local Participatory Monitoring Committees (CLSPs): - Established at the municipal level and chaired by future Mayors (or existing local authorities in current municipalities). - Composition: municipal council representatives, NGOs operating in municipality, women’s development associations, farmer organizations, traditional chiefs, Village Development Committees. - CLSPs to be set up gradually as new municipalities are created. - Government/Donor Committee: - To be set up once priority monitoring mechanisms are consolidated. - Co-chaired by the Minister of Cooperation and a donor representative designated by peers. - Preferred agency for dialogue between Togolese Government and technical and financial partners. - Other arrangements: - A specific mechanism for monitoring and consultation on F-PRSP matters will be put in place at the initiative of nongovernmental actors for concurrent monitoring and evaluation. - Government will endeavor to establish Government/Donor Committee promptly by mutual agreement with TFPs and set up, with civil society, the CSO Network for PRSP/MDG monitoring and evaluation. - Permanent Secretary charged with monitoring reform policies and financial programs will be a member of CNPDLP and CISLP. *Source: IMF/Togolese authorities content as provided in the supplied PDF excerpt.* ### 2. I ### 2. INFORMATION SYSTEM FOR MONITORING AND EVALUATION OF THE STRATEGY ### Institutional roles and purposes - Five essential stakeholder roles for the PRSP monitoring and evaluation information system: - (i) production of data and information; - (ii) analysis of results derived from this data and information; - (iii) creation and maintenance of databases and survey bases; - (iv) dissemination of analyses in the form of reports; - (v) system-wide coordination. - Purposes of the information system: - (i) systematically produce basic indicators and/or information for monitoring PRSP operations and achieving the MDGs; - (ii) produce information for monitoring poverty reduction programs and projects; - (iii) produce information for assessment of the impact of policies, programs, and projects; - (iv) produce regionally and locally disaggregated information. - The system will draw partly on existing sectoral information systems, particularly in health care (SNIS), education, HIV/AIDS, finance, and rural development. - Overall authority and technical coordination: - The system will be under the authority of the Permanent Technical Secretariat of the PRSP (PTS-PRSP). - Technical coordination handled by the Directorate General of Statistics and National Accounts (DGSCN). ### Structure: three complementary sub-systems - The information system consists of three interlinked components (sub-systems): - (i) Sub-system for “Monitoring of Household Living Conditions”; - (ii) Subsystem for “Monitoring of Programs and Projects”; - (iii) Subsystem for “Impact Assessment.” ### Sub-system for “Monitoring of Household Living Conditions” - Purpose: - Systematically produce and manage indicators concerning household living conditions and/or basic information for assessing poverty and for monitoring the PRSP and MDGs. - Indicator approaches: - Results indicators or global impact indicators based on the ‘monetary poverty,’ ‘basic needs poverty,’ ‘capacity or opportunity poverty,’ and ‘social exclusion poverty’ approaches. - Data sources and updating: - Indicators regularly updated on the basis of national accounts, statistical surveys, and administrative statements. - Institutional responsibilities: - System under the authority of the Permanent Technical Secretariat of the PRSP (PTS-PRSP). - Technical coordination by the Directorate General of Statistics and National Accounts (DGSCN). ### Sub-system for “Monitoring of Programs and Projects” - Purpose: - Monitor the financial and physical execution of poverty reduction programs and projects. - Indicator types: - Inputs (financial resources allocated; available human and physical resources). - Outputs (output of poverty-reducing services, e.g. construction of schools, health centers, hydraulic infrastructures, roads). - Data sources: - Administrative files of program and project agencies and internal statistics of supervisory ministries. - Requirements for proper functioning: - Establishment of Medium-Term Expenditure Frameworks (MTEFs) as frameworks for budget planning and execution. - Technical coordination: - Plan Execution Oversight Directorate in collaboration with the Directorate General of Budget (including the department responsible for program and project preparation). ### Sub-system for “Impact Assessment” - Purpose: - Identify changes in wellbeing of individuals in a specific population group that can be ascribed to a particular program or policy. - Scope and use: - Involves studies of a specific project, program, or policy and of a well-defined population. - Results guide decisions on expansion, modification, or elimination of policies, programs, or projects, and help rank public interventions by priority. - Enhances visibility of programs vis-à-vis the population. - Technical coordination: - Under the technical coordination of the Directorate of Economy (DE). ### Improved production and dissemination of statistical information - System characteristics and challenges: - The Togolese statistics system is a deconcentrated system with DGSCN as focal point for all statistics activities. - System characterized by absence of a statistics coordinating body and absence of a statistics law. - National Statistics Development Strategy (SNDS): - Government formulated a National Statistics Development Strategy (SNDS) validated on December 2, 2008. - Box 15: SNDS (period 2009-2013) vision and strategic goals: - Vision: build a functional, credible, and effective national statistics system that produces authoritative data and meets the needs of users. - Strategic goals: (i) strengthen the legal and institutional framework; (ii) enhance the production of statistics; (iii) promote the use of statistical data and the development of a statistics culture; (iv) build capacities in terms of human, physical, and financial resources. - Implementation principles: encouragement of results-oriented management; a participatory planning framework for national development; meeting the needs for monitoring and evaluation of the PRSP and MDGs; strategy to improve and strengthen capacities of the national statistics system. - All agencies of the national statistics system are responsible for SNDS implementation. - DGSCN responsibilities and activities: - Coordinate with PTS, the SCs, the CRSPs, and the CLSPs to ensure necessary information is produced for monitoring and evaluation of the F-PRSP. - Carry out major statistical operations at regular intervals, including: - general census of the population and housing; - demographic and health survey (DHS); - seroprevalence survey; - survey of the informal sector; - budget-consumption survey (1-2-3 survey); - MICS survey; - agricultural surveys; - collecting and processing data for the national database of administrative entities. - Work in coordination with international development agencies and seek technical, material, and financial support to improve data quality. - Broad dissemination of quantitative data necessary for monitoring and evaluation via appropriate channels, particularly the PRSP website and Togo Info. - Publish analyses of poverty in Togo on a regular basis. - Create a data bank of databases from surveys to generate poverty indicators. - Coordinate data collection by entities that produce sectoral statistics, especially planning and programming directorates in ministries. ### Capacity-building - Context and rationale: - The profound crisis experienced by Togo for the past sixteen years has had significant repercussions on the Public Administration. - Public Administration difficulties: poor morale despite qualified employees, an aging corps of civil servants, and a shortage of operating resources. - Successful implementation of the F-PRSP requires reconstruction of a modern State with a well-organized public administration staffed by youthful, qualified, and motivated employees. - Reform foundations: - States General of the Public Administration (Etats Généraux de l’Administration Publique) held in December 2006 laid foundations for reforms to modernize public administration. - Transitory capacity-building strategy (initial phase): - Aim: reactivate certain key administrative functions and recreate foundations for planning public investments in priority sectors. - Target a limited number of interventions guided by necessity to recreate these foundations. - Strengthen targeted administrations so they can update or prepare policies and strategies, and design, implement, and monitor development projects. - Tap Togolese expertise (Togolese living abroad or retirees with recognized expertise). - Provide extensive training and retraining interventions for current employees. - Complementary government steps to ensure success: - (i) boost the effectiveness of governmental action; - (ii) monitor the implementation of interventions aimed at reaching the HIPC Initiative completion point by 2010; - (iii) make the institutional mechanism for monitoring PRSP implementation fully operational; - (iv) rehabilitate the national statistics system. - Specific measures: - Boost and coordinate interministerial action and monitor ministries’ terms of reference. - Emphasize information flow between ministries and strengthen Government external communications. - Pay special attention to management capacities required for implementing public finance reforms derived from PEMFAR, PEFA, and CPAR studies. - Study the contours of a transitory mechanism for government procurement and delegated contracting authority as part of sector reform. - Revitalize consultation with partners by setting up the Government/Donor Committee and the Sectoral Committees. - Develop a data collection program to feed the PRSP monitoring and evaluation system in accordance with the National Statistics Development Strategy. ### Conclusion and operationalization - Role of the F-PRSP: - The Full Poverty Reduction Strategy Paper (F-PRSP) is the unifying framework for all sectoral strategies and the reference document for government interventions during the period 2009-2011. - Provides foundations for developing sectoral development plans and investment programs. - Provides the framework for operationalizing the long-term National Development Strategy based on the Millennium Development Goals. - Developed with participation of all components of Togolese society and support of technical and financial partners. - Conditions for success: - Degree of ownership by various stakeholders is central. - Success requires: - (i) real ownership of the content of the strategy by entities responsible for implementation within the Public Administration, civil society organizations, the private sector, and local communities; - (ii) sustained efforts by the Government to mobilize resources and use them, on a priority basis, for effective implementation of the strategy in accordance with the Paris Declaration; - (iii) institutional and human capacity-building at central, regional, and local levels; - (iv) alignment and harmonization by technical and financial partners within the F-PRSP frame of reference. - Government commitments: - Consolidate and perpetuate periodic consultations with all stakeholders. - Set in place a functional monitoring and evaluation system to assess progress and plan corrective measures. - Develop a Priority Action Program to make the F-PRSP operational, containing investments to boost the visibility of measures contributing to accelerated growth and poverty reduction, and linking the F-PRSP, sectoral strategies, and ministries’ program budgets. *Source: _cr1033 - 2. I* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr1033.pdf_