## _cr10382

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---

### Macroeconomic management (NPRSP 1.1) — overview and framework
- NPRSP originally approved in 2004 and revised in 2005 and 2006; implementation time-frame pushed back to the period 2007 to 2009.
- Year 2010 is considered a transition year to the second NPRSP (DENARP II), to cover the period 2011 to 2015.
- NPRSP structured around four pillars: (i) strengthening governance, modernizing the public administration, and assuring macroeconomic stability; (ii) promoting economic growth and job creation; (iii) expanding access to social services and basic infrastructure; and (iv) raising the living standard of vulnerable groups.
- The NPRSP assumed 5 percent growth rate.

### Political and institutional context — implications for macroeconomic management
- Persistent political and institutional instability since the 1998-99 conflict; governments averaged less than two years in office.
- Key destabilizing events:
  - Assassination of the Armed Forces Chief of Staff on March 1, 2009, and the President on March 2, 2009.
  - Assassination of a presidential candidate on June 4, 2009, and a member of the National People’s Assembly on June 5, 2009.
  - Events of April 1, 2010: Chief of Staff ousted and jailed; Prime Minister detained and threatened.
  - July 2010 appointment of a new Armed Forces Chief of Staff while the ousted predecessor remained in jail.
- Drug trafficking and organized crime:
  - Since 2006, Guinea-Bissau used as a drug transshipment hub, particularly to Europe.
  - Emergency Plan to Combat Drug Trafficking and Organized Crime (2007 to 2010) adopted; international conference held in Lisbon in December 2007.
  - Public opinion largely favors an international stabilization force to support Armed Forces reform and combat drug trafficking.

### Economic performance, shocks, and projections
- Growth:
  - GDP grew by 3 percent in 2009.
  - GDP growth in 2008 was 3.2 percent.
  - Economic growth rate expected to reach 3½ percent in 2010 (drivers cited: cashew nut prices recovering, domestic consumption increasing, capital spending in construction rising).
- Agriculture and exports (cashew nuts):
  - Export volumes: 135,500 metric tons in 2009; 109,600 metric tons in 2008; 96,100 metric tons in 2007.
  - Cashew nuts account for more than 90 percent of total exports.
  - Export revenues shrank by about 10 percent from 2008 to 2009 due to falling world prices despite higher volumes.
  - Export volume in 2010 expected to see a modest decline from the record figure attained in 2009.
- Private transfers and remittances:
  - Transfers/remittances: CFA 15.8 billion in 2007; CFA 14.8 billion in 2008; CFA 10.9 billion in 2009.
- Inflation and fiscal stance:
  - During 2009–2010, inflation eased and the budget was stabilized.

### Debt sustainability and HIPC prospects
- National debt described as unsustainable; arrears accumulating for both foreign and domestic debt.
- Country reached the decision point under the HIPC Initiative in 2000.
- Reaching the completion point would enable an overall reduction in external debt of approximately US$700 million to US$800 million vis-à-vis multilateral and bilateral creditors.
- Completion-point debt relief would produce savings of approximately US$50 million in the period 2011 to 2013 in debt service payments to multilateral creditors such as the World Bank and the African Development Bank (AfDB).

### Financing, programs, and external partners
- IMF support:
  - Emergency Post-Conflict Assistance (EPCA) from the IMF in 2008 and 2009.
  - Positive EPCA performance led to signing in May 2010 of a new Extended Credit Facility (ECF) agreement for the period 2010-2012.
- Multilateral and bilateral support:
  - World Bank approved two Economic Governance Reform grants: December 2009 and June 2010.
  - AfDB approved a budget support grant in March 2010.
  - European Union support estimated at 102,800 Euros from 2008 to 2013; EU to reexamine participation after April 2010 events.
- United Nations and regional partners:
  - UNIOGBIS strengthened capacity since 2009 to support reforms in defense, security, and justice.
  - Traditional partners: Portugal, France, Spain.
  - Non-OECD partners: China, Brazil, Angola, South Africa, Libya, India, Iran, and the Islamic Development Bank (IsDB).
  - Regional organizations: ECOWAS and WAEMU.

### Social implications for macroeconomic policy
- UNDP Human Development Index ranking: 173rd out of 182 countries in the 2009 UN report.
- July 2010 MICS/IDSR survey conducted; results awaited analysis with some preliminary data used in the report.
- Policy trade-offs:
  - Urgency to combat drug trafficking and organized crime redirected resources away from other economic and social development areas.
  - Greater importance placed on safeguarding macroeconomic management, to some detriment of social sectors.
- Donor dependence:
  - Fragile public finances and high debt and arrears meant most NPRSP funding had to come from abroad, mainly as concessional resources.
  - Actual funding fell short of needs; NPRSP activities for 2009 and 2010 limited to those for which funding was available.

### Key near-term policy priorities (implicit)
- Continue reforms to strengthen macroeconomic management to sustain donor confidence and program financing (IMF ECF 2010-2012).
- Advance measures to reach HIPC completion point to realize expected external debt reduction of approximately US$700 million to US$800 million and savings of approximately US$50 million in 2011 to 2013.
- Maintain balance between governance/security measures (including combating drug trafficking) and allocation of resources to social sectors to progress toward the MDGs.

---

### Progress in NPRSP implementation (2009–2010) — macro and fiscal outcomes
- Reporting and program access:
  - First NPRSP implementation report prepared covering activities, results, and problems through 2007, 2008, and part of 2009.
  - New IMF ECF agreement signed in May 2010 for 2010-2012.
- GDP and fiscal balances:
  - GDP growth positive in 2009; same expected in 2010.
  - Primary domestic deficit fell from 3.2 percent of GDP in 2008 to 2.9 percent in 2009.
  - Overall balance rose from a deficit of 3.8 percent of GDP in 2008 to a surplus of 2.9 percent in 2009.
- External accounts:
  - External current account balance (including government transfers) remained at -4.1 percent of GDP from 2008 to 2009.
  - For 2010, external current account balance projected at a deficit of 5.8 percent of GDP.
- Inflation:
  - Inflation exceeded 10 percent in 2008 due to the food crisis.
  - Consumers price index declined by 1.6 percent in 2009.
  - In 2010, inflation rose partly due to rising import prices of fuel and a weaker euro.
  - In coming years inflation expected to remain at less than 3 percent, the level permitted by WAEMU.

### Tax revenue and public financial management reforms
- Tax revenue performance:
  - Revenues increased by 27.1 percent from 2008 to 2009.
  - Indirect taxes rose by 28 percent from 2008 to 2009.
  - Direct taxes increased by 24.7 percent from 2008 to 2009.
  - In Q1 2010 tax receipts increased 46.9 percent over the corresponding period the previous year.
  - Specific Q1 2010 tax increases:
    - Income tax relating to property value assessment: 472.5 percent.
    - Industrial assets assessment: 85.1 percent.
    - Standard property tax: 387.3 percent.
- Legal and institutional reforms:
  - Draft Organic Budget Law and Decree on Public Accounting adopted by the National People’s Assembly in March 2010.
  - Legislative decrees to establish Financial Comptroller post and reorganize Directorate-General of the Budget.
  - Regulations for credit managers and government accounts issued from March to June 2010.
- Systems and transparency:
  - Rollout of SIGFIP budget preparation and execution modules began.
  - Procedural manual for ministries and departments prepared.
  - From June 2010 government began preparing simplified budget execution reports.
- Public procurement:
  - Trial reforms in five ministries in 2009.
  - Council of Ministers approved legislative decree in April 2010 to harmonize public tendering with WAEMU standards.
  - Decree approved in April 2010 setting up a Central Procurement Unit.

### Public administration modernization (NPRSP 1.2)
- Personnel and payroll:
  - Personnel expenses declined from 98 percent of government revenues in 2008 to 77 percent in 2009; expected to decline to 67 percent in 2010.
  - Biometric census at end-2009 revealed about 4,000 civil servants were “ghost workers”.
  - Corrective measures in first half of 2010 produced significant savings; technical evaluation under way for a new payroll information management system integrating biometric data.
  - Since 2009 civil servants paid salaries on a regular schedule; government devising a way to finish paying salary arrears pending from 2003.
- Information systems and connectivity:
  - Integrated Debt Management System (SIGADE) installed in Q3 2009.
  - SIGFIP budget modules installed in 2009; government accounting module expected operational by end of 2010.
  - ASYCUDA++ installed in August 2010.
  - Data center established; by July 2010 all local government administrative centers had internet connections and computer equipment installed.
- Human resources and training:
  - Draft law establishing National School of Administration (ENA) adopted in 2009; regulations established in August 2010.
  - By end-2010, 200 Guinean professionals to receive training in strategic planning, government finance, statistics, mobilization and coordination of aid, and administrative organization.
  - Measures included restructuring government bodies, competition-based recruitment, and a literacy program for civil servants.

### Rule of law and justice system reforms (NPRSP 1.3)
- Justice policy and training:
  - Draft National Justice Policy for 2011-2015 work began in March 2010.
  - Continuous training plan approved and implemented in H2 2009; over 40 training activities carried out over a four-month period.
  - Draft legal basis and training regulations for Judicial Training Center (CENFOJ) completed in July 2010; approval expected by end-2010; temporary premises arranged.
- Prisons and personnel:
  - Regional jails remodeled in Mansôa (capacity 30) and Bafatá (capacity 50) turned over in June 2010.
  - Five wardens and 80 guards recruited; training scheduled for September 2010.
- Legislative reforms:
  - Multiple legal texts drafted and approved in 2009–2010 to reform judicial and legislative branches and harmonize with OHADA.
  - National consultation exercise conducted to develop draft legislation on female genital mutilation and trafficking of persons.

---

### Reform of defense and security (NPRSP 1.4) — overview
- PPRSDS (Priority Plan for the Reform of Defense and Security) prepared and approved January 2010; emphasizes reducing force size, setting up a military pension fund, and establishing professional standards for recruits.
- Legal framework revised April–May 2010; People’s National Assembly approved over a dozen legal texts including: Law on National Defense and the Armed Forces; Basic Organic Law of the Organization of the Armed Forces; Code of Military Justice; Organic Law of the Ministry of Public Security and Homeland Affairs; Organic Law of the Police Force for Public Order; Organic Law of the National Guard (GN); and related statutory and disciplinary regimes.
- June 2010: legal framework and economic/legal requirements for pension fund approved; fund to be managed by an independent financial institution selected via public tender.

### Personnel, censuses, and recruitment
- Biometric censuses:
  - 2008: biometric census of the armed forces conducted.
  - June 2009 biometric census counts:
    - armed forces: 4,458
    - paramilitary security forces: 3,450
    - Homeland Freedom Fighters (CLP): 5,883
- PPRSDS action: establish professional standards for new recruits.

### Capacity building, training, and awareness
- June 2010 national campaign launched to promote awareness of reforms.
- Computer Training Center (CFC) operational since June 2010; trained 89 members of Police Force for Public Order, Judicial Police, Intelligence and Security Service, and Immigration Service.
- July 2010 training in Bafatá and Gabú to combat trafficking of children and domestic violence.
- June 2010 International Conference on Raising Awareness of the Reform of the Defense and Security Sector culminated in the Bissau Declaration.

### Infrastructure and equipment
- Renovations and conversions:
  - Fort Amura in Bissau renovated; renovations begun on military installations in Gabú and Quebo.
  - Old NECSO shipyard in João Landim converted into a Police Training Center and turned over to the Ministry of Public Security and Homeland Affairs.
  - Model police station built and put into full operation in the military district (Bairro Militar) for community policing development.
- Conversion and training capacity work continued in 2009–2010.

---

### PILLAR 3 — Expanding access to social services and basic infrastructure

#### Education sector (NPRSP 3.1)
- Policy and legal reforms:
  - Education Policy Charter (2010-2020) adopted September 2009.
  - Basic Law on the Education System approved March 2010:
    - Primary education increased from six grades to nine grades (cycles: grades 1–4; grades 5–6; grades 7–9).
    - Official enrollment age for primary education lowered from 7 years to 6 years.
  - Statutory Regime of the Teaching Profession, Law on Higher Education and Scientific Research (June 2010), and Law on School Cafeterias (June 2010).
  - Higher Institute of Education (ESE) created by merging three teacher-training schools.
  - Education Sector Plan (2011-2013) drafted (completed June 2010); planned financing request of approximately US$25 million to support implementation over three years.
- Access and infrastructure (2009–2010):
  - 123 new classrooms built.
  - 110 existing classrooms renovated.
  - More than 600 adolescents and adults became literate via training at 10 training centers; training continued at 50 new centers, totaling 9,000 students.
  - Q3 2010: 3,920 school-desks and other materials distributed, benefiting 196,000 students.
  - Fee for registering children to attend public primary schools abolished in 2002; import duties on textbooks abolished.
- Enrollment (provisional MICS4/IDSR 2010 results):
  - Net primary-education enrollment rate in 2010: 67.4 percent (56.9 percent in 2003/2004).
    - Improvement of 10.5 percentage points in six years.
    - Bissau: 87.1 percent.
    - Urban areas overall: 83.5 percent.
    - Rural areas: 56.5 percent.
  - Gender gap in primary enrollment: girls 65.4 percent; boys 69.3 percent.
  - Net secondary-education enrollment rate nationally: 23.5 percent; for girls: 19.9 percent.

#### Health sector (NPRSP 3.2)
- Child and infant mortality (provisional MICS results):
  - Under-five child mortality: 203 per thousand live births in 2002; 223 in 2006; 155 in 2010 (MDG = target 80).
  - Infant mortality: 124 per thousand live births in 2002; 138 in 2006; 104 in 2010 (MDG = target 47.3).
- Planning and HR:
  - Second National Health Development Plan (2011 to 2017) validated May 2010.
  - 115 health professionals trained and assigned to health facilities.
  - Isolation and moving allowances for remote health personnel started in 2009.
  - 57 health professionals trained for ARV/opportunistic infections; 22 received updated training on dispensing medications.
- Facilities and equipment:
  - Health centers constructed: Bissau (three), Biombo (one), Quinara (one), Bolama (two).
  - Rehabilitation and fitting out: hospital in Canchungo; operating rooms at Mansoa and Gabú.
  - New 200-bed Military Hospital opened August 2010.
  - Rehabilitation/expansion of National Simão Mendes Hospital scheduled for completion by end-2010.
  - Brá Physical Rehabilitation Center rehabilitated in 2010.
- HIV/AIDS response and testing:
  - 43 partnership and financing agreements concluded involving 35 local institutions.
  - 22 counseling and voluntary testing units set up in 2009; 10 additional units revamped.
  - Over 29,000 people tested during that period; in June 2010, 24,300 people in the Bissau Autonomous District tested during voluntary screening.
  - MICS IV HIV/AIDS awareness indicators:
    - 91 percent of women aged 15 to 49 years have heard of HIV/AIDS.
    - 34.4 percent are aware of the three main ways to prevent it.
    - 64.4 percent know that it can be transmitted from mother to child.
  - ARV treatment centers grew from 12 in 2008 to 26 in 2009.
  - As of December 2009, 2,764 patients receiving ARV treatment (29 percent men, 67 percent women, 4 percent children).
- Maternal and blood safety (2009):
  - 42,998 pregnant women received prenatal care.
  - 4,894 units of blood collected and tested:
    - 6.8 percent infected with HIV (333 out of 4,894).
    - 11.4 percent infected with hepatitis B (558 out of 4,894).
- Vaccination (2010 campaigns and MICS4/IDSR coverage):
  - Vaccination coverage for infants less than one year of age as of May 2010:
    - DTP-HepB-Hib3: 38 percent.
    - Yellow fever: 43 percent.
  - First vitamin A and mebendazole campaign, May 2010: coverage rates of 111 percent for vitamin A and 112 percent for mebendazole.
  - Vaccination rates for infants less than one year of age (2010 MICS4/IDSR):
    - BCG: 93.5 percent.
    - Polio 1: 91 percent.
    - Polio 3: 74.5 percent.
    - DPT 1: 92.0 percent.
    - DPT 3: 76.2 percent.
    - Measles: 60.6 percent.
    - Yellow fever: 48.9 percent.
- Malaria administrative indicators (January 2009 to June 2010):
  - Full ACT doses distributed: 302,274
  - Health facilities without stock interruptions lasting more than one week (last three months): 66
  - Community health workers trained in ACT policy: 507
  - Rapid diagnostic tests conducted: 77,506
  - IILNs distributed: 140,182
  - IECC/IEC sessions conducted through media: 2,529
  - Pregnant women receiving at least one SP dose: 63,941
  - Individuals or health staff trained: 397
  - MICS4/IDSR: 85.3 percent of families have at least one mosquito net.

#### Drinking water and basic sanitation (NPRSP 3.3.1)
- Master plan for 2011-2020 nearly finished.
- 2009: rehabilitation of Bissau water system completed; 58 public water distribution points constructed and meters installed.
- 2010: building a 700 cubic meter reservoir launched.
- Over 60 water distribution points built or rehabilitated, including those in schools.
- Hygiene and sanitation outreach:
  - Health education program reached 6,500 families.
  - Primary schools: 107 groups of latrines built or rehabilitated.
  - 800 household latrines built.

---

### PILLAR 4 — Raising the standard of living of vulnerable groups
- Cross-sectoral focus: women, young people, persons with HIV/AIDS.
- Gender and protection (2009–2010):
  - Draft legal texts prepared on reproductive health, violence against women and girls, and trafficking in persons.
  - Strategy to combat female genital mutilation approved in 2010.
  - National Committee to Eliminate Female Genital Mutilation reestablished.
  - Two studies on controlling trafficking in children and abuse/sexual exploitation being carried out and validated.
  - Shelters rehabilitated in Gabú and Bafatá for child victims of violence.
  - Second report on UN CRC implementation presented to the Committee on the Rights of the Child in Geneva, with an alternative NGO report.
  - Capacity building for specialists working with children on legislative framework and protection.
- Youth employment and training:
  - Emphasis on occupational training, institutional training capacity, and strengthening microfinance.
  - 2009: about 500 young people participated in CREE-TRIE-GERME training program and developed business plans.
- Refugees and asylum seekers:
  - In 2010 at least 7,622 refugees and asylum seekers, about the same as in 2008.
  - UNHCR opened an office in Bissau in 2010.

---

### Conclusion, outlook, and priorities for NPRSP II
- 2009–2010: Despite security and governance challenges, reforms achieved macroeconomic stabilization and promoted economic growth.
- Second NPRSP formulation initiated April 23, 2010; thematic reports (nine) to be available beginning August 31, 2010.
- Major statistical projects under way:
  - General Population and Housing Census (RGPH).
  - Fourth Multiple Indicators Cluster Survey and first Population Survey on Reproductive Health (MICS4/ISDR).
  - Second Rapid Poverty Assessment Survey (ILAP II).
  - Studies on origins of economic growth and non-monetary poverty.
  - Assessment of needs and costs to achieve the MDGs.
- Main objectives for NPRSP II (to remain as in 2009 but subject to revision based on statistical findings):
  - Significant and lasting reduction in poverty.
  - Progress toward achievement of the MDGs.
  - Step up economic growth in employment-providing sectors and diversify the economy.
  - Develop the private sector and integrate DTIS recommendations.
  - Improve macroeconomic management and consolidate administrative reforms to ensure quality basic public services (education, healthcare, water and sanitation).
  - Address environmental management; draft basic law on the environment well advanced.
  - Include management of external shocks, climate change, and environment; use June 2010 vulnerability and adaptation study findings.
- Institutional priorities:
  - Consolidate peace; reform defense and security forces; strengthen administrative apparatus and democratic institutions; institute effective justice system and rule of law; combat drug trafficking.
  - Build capacity for planning, monitoring and evaluation, and aid coordination; Guinea-Bissau acceded to the Paris Declaration in August 2010.
  - Link NPRSP to national budget via the Medium-Term Expenditure Framework (MTEF) to ensure implementation within resources.
- External support and debt relief:
  - Continued international donor support essential.
  - Completion point under the HIPC Initiative and MDRI expected to provide debt forgiveness, improve investor confidence, and free resources for development and NPRSP II implementation.

---

### Annex 1 — Structure of the NPRSP (pillars and subareas)
- Pillar 1: Strengthening governance, modernizing the public administration, and guaranteeing macroeconomic stability
  - Subarea 1.1: Strengthening governance and guaranteeing macroeconomic stability
    - 1.1.1 Continue to improve budget management
    - 1.1.2 Strengthen macroeconomic management
  - Subarea 1.2: Modernizing the public administration, and capacity-building
    - 1.2.1 Reform the public administration
    - 1.2.2 Undertake capacity-building
  - Subarea 1.3: Consolidating the rule of law and the justice system, and encouraging decentralization and social dialogue and consensus-building
    - 1.3.1 Promote justice that is swift, transparent, accessible, and independent, and strengthen the People’s National Assembly
    - 1.3.2 Foster local development and promote social dialogue and consensus-building
  - Subarea 1.4: Reforming the security sector
    - 1.4.1 Transfer barracks from military to civilian use, renovate them, and raise the standard of living they provide
    - 1.4.2 Transform security forces into agents of peace and consolidation of the rule of law
- Pillar 2: Promoting economic growth and job creation
  - Subarea 2.1: Improving the business climate and fostering economic sectors that employ the poor
    - 2.1.1 Improving the business and investment climate
    - 2.1.2 Fostering productive sectors and promoting economic diversification and competitiveness
  - Subarea 2.2: Developing infrastructure to support production
    - 2.2.1 Rehabilitate the energy sector
    - 2.2.2 Develop the highway infrastructure
    - 2.2.3 Support the development of land and river infrastructure
    - 2.2.4 Support the sector comprising air services, weather services, and telecommunications
- Pillar 3: Expanding access to social services and basic infrastructure
  - Subarea 3.1: Providing better access to quality education
    - 3.1.1 Improve access to primary, secondary, and postsecondary education
    - 3.1.2 Guarantee basic quality schooling for all
  - Subarea 3.2: Improving the state of people’s health
    - 3.2.1 Improve the availability and quality of health services
    - 3.2.2 Combat HIV/AIDS, tuberculosis, malaria, and other diseases
  - Subarea 3.3: Improving people’s standard of living
    - 3.2.3 Improve maternal and child health
    - 3.3.1 Improve access to drinking water and sanitation
    - 3.3.2 Improve housing for the poor
- Pillar 4: Raising the standard of living of vulnerable groups
  - Subarea 4.1: Promoting the socioeconomic integration of vulnerable groups
    - 4.1.1 Improve social protection for vulnerable groups
    - 4.1.2 Encourage income-generating activities
  - Subarea 4.2: Carrying out specific actions to assist vulnerable groups
    - 4.2.1 Promote women’s centers to provide shelter and combat illiteracy
    - 4.2.2 Promote recreational activities and bring organization to spontaneous settlements

*Source: _cr10382 - IMF country report content provided in the supplied PDF excerpt.*

### 1. Macroeconomic management (NPRSP 1.1)

### 1. Macroeconomic management (NPRSP 1.1)

### Introduction and NPRSP framework
- NPRSP originally approved in 2004 and revised in 2005 and 2006; implementation time-frame pushed back to the period 2007 to 2009.
- Year 2010 is considered a transition year to the second NPRSP (DENARP II), to cover the period 2011 to 2015.
- NPRSP structured around four pillars: (i) strengthening governance, modernizing the public administration, and assuring macroeconomic stability; (ii) promoting economic growth and job creation; (iii) expanding access to social services and basic infrastructure; and (iv) raising the living standard of vulnerable groups.
- The NPRSP assumed 5 percent growth rate.

### Political and institutional context — implications for macroeconomic management
- Persistent political and institutional instability since the 1998-99 conflict has limited continuity in government policies and programs; governments averaged less than two years in office.
- Key destabilizing events cited:
  - Assassination of the Armed Forces Chief of Staff on March 1, 2009, and the President on March 2, 2009.
  - Assassination of a presidential candidate on June 4, 2009, and a member of the National People’s Assembly on June 5, 2009.
  - Events of April 1, 2010: Chief of Staff ousted and jailed; Prime Minister detained and threatened.
  - July 2010 appointment of a new Armed Forces Chief of Staff (who had been involved in April 1 events) while the ousted predecessor remained in jail.
- Political developments had mixed effects:
  - Legislative elections of November 2008 produced a clear parliamentary majority and presidential elections in second half of 2009 reduced internal tensions, enabling a majority government formation.
  - Despite violent incidents, no formal change occurred to the constitutional order and government activity largely continued.
- Drug trafficking and organized crime emerged as a critical new priority during implementation:
  - Since 2006, Guinea-Bissau used as a drug transshipment hub, particularly to Europe.
  - Drug trafficking imperils the rule of law, damages governance integrity, damages the country’s image, and impedes the fight against corruption.
  - An Emergency Plan to Combat Drug Trafficking and Organized Crime (2007 to 2010) was adopted; an international conference was held in Lisbon in December 2007.
  - Public opinion largely favors an international stabilization force to support Armed Forces reform and combat drug trafficking.

### Economic context — performance, external shocks, and projections
- Growth and outlook:
  - GDP grew by 3 percent in 2009.
  - GDP growth in 2008 was 3.2 percent.
  - The economic growth rate is expected to reach 3½ percent in 2010 (drivers: cashew nut prices recovering, domestic consumption increasing, capital spending in construction rising).
- Agriculture and exports (cashew nuts dominant):
  - Export volumes: 135,500 metric tons in 2009; 109,600 metric tons in 2008; 96,100 metric tons in 2007.
  - Cashew nuts account for more than 90 percent of total exports.
  - Export revenues shrank by about 10 percent from 2008 to 2009 due to falling world prices despite higher volumes.
  - Export volume in 2010 expected to see a modest decline from the record figure attained in 2009.
- Private transfers and remittances:
  - Transfers/remittances: CFA 15.8 billion in 2007; CFA 14.8 billion in 2008; CFA 10.9 billion in 2009.
- Inflation and fiscal stance:
  - During 2009–2010, inflation eased and the budget was stabilized.
- Debt sustainability and HIPC:
  - The level of national debt remained unsustainable; the country is not in a position to repay debts as they mature and arrears are accumulating for both foreign and domestic debt.
  - Country reached the decision point under the HIPC Initiative in 2000.
  - Reaching the completion point would enable an overall reduction in external debt of approximately US$700 million to US$800 million vis-à-vis multilateral and bilateral creditors.
  - Completion-point debt relief would produce savings of approximately US$50 million in the period 2011 to 2013 in debt service payments to multilateral creditors such as the World Bank and the African Development Bank (AfDB).

### Financing, programs, and external partners
- IMF and program support:
  - Guinea-Bissau received Emergency Post-Conflict Assistance (EPCA) from the IMF in 2008 and 2009.
  - Positive performance under EPCA led to signing in May 2010 of a new agreement under the Extended Credit Facility (ECF) for the period 2010-2012.
- Multilateral and bilateral support:
  - World Bank approved two Economic Governance Reform grants: first in December 2009 and second in June 2010.
  - AfDB approved a budget support grant in March 2010 based on recent reforms.
  - European Union support estimated at 102,800 Euros from 2008 to 2013; EU announced intention to reexamine participation as a development partner following April 2010 events and subsequent government appointments.
- United Nations and regional partners:
  - United Nations Integrated Office for Peacebuilding in Guinea-Bissau (UNIOGBIS) strengthened capacity since 2009 to support reforms in defense, security, and justice, including combating drug trafficking and organized crime.
  - Traditional partners: Portugal, France, Spain continued support.
  - Non-OECD partners active: China, Brazil, Angola, South Africa, Libya, India, Iran, and the Islamic Development Bank (IsDB).
  - Regional organizations: Economic Community of West African States (ECOWAS) and West African Economic and Monetary Union (WAEMU) contributing to efforts.
  - A number of NGOs active, particularly in social and humanitarian work.

### Social context — human development implications for macroeconomic policy
- Guinea-Bissau ranks low on social indicators:
  - UNDP Human Development Index ranking: 173rd out of 182 countries in the 2009 UN report.
- Surveys and monitoring:
  - In July 2010 a survey (MICS/IDSR) was conducted on principal social indicators; results awaited analysis, with some preliminary data reflected in the report.
- Policy trade-offs observed:
  - Urgency to combat drug trafficking and organized crime drew attention and resources away from other areas, redirecting resources that might otherwise have gone directly to economic and social development.
  - Greater importance placed on safeguarding and securing macroeconomic management, to some detriment of social sectors.
- Donor dependence and implementation constraints:
  - Given fragile public finances and high debt and arrears, most NPRSP funding had to come from abroad and mainly in the form of concessional resources.
  - Actual funding fell short of needs; NPRSP activities for 2009 and 2010 were limited to those for which funding was available, effectively creating a donor-driven model of development rather than the country-driven model recommended by the Paris Declaration.

### Implementation experience, challenges, and outlook
- Adjustments to priorities during implementation necessitated by changing political and social context; drug trafficking and organized crime became a specific focal area and prompted Emergency Plan and international conference attention.
- Political instability and high-level assassinations and detentions in 2009–2010 affected the level of engagement, continuity, and effectiveness of government action and of domestic and international partners supporting development activities.
- Despite instability, constitutional order remained intact and reforms, particularly in macroeconomic management, continued and enabled access to new financing and grants.
- Key near-term policy priorities implicit in the report:
  - Continue reforms to strengthen macroeconomic management to sustain donor confidence and program financing (IMF ECF 2010-2012).
  - Advance measures to reach HIPC completion point to realize expected external debt reduction of approximately US$700 million to US$800 million and savings of approximately US$50 million in 2011 to 2013.
  - Maintain balance between urgent governance/security measures (including combating drug trafficking) and allocation of resources to social sectors to progress toward the MDGs.

*Source: _cr10382 - 1. Macroeconomic management (NPRSP 1.1)*

### 2015.  For  example,  life  expectancy  has  improved  very  little,  from  43  years  in  1989  to

### Progress made in implementing the NPRSP in 2009 and 2010

### Social indicators and service delivery
- Life expectancy improved from 43 years in 1989 to 47.4 years in 2009.
- Infant and child mortality rates remain very high; the negative trend seen from 2002 to 2006 seems to have been reversed (see Section III.10).
- No case of cholera occurred in 2009 and 2010 following a large-scale awareness campaign by health authorities.
- Lengthy public-sector strikes ceased as civil-service salary payments were made regularly and arrears from 2008 began to be paid in early 2009.
- Some short-term work stoppages occurred in education and health, but no widespread disruptions in service provision occurred.
- Many decentralized initiatives in health, water and sanitation, education, training, and culture undertaken by NGOs and grassroots organizations have contributed to NPRSP implementation but were not monitored in detail by the government.

### Macroeconomic management (NPRSP pillar 1.1)
- In 2009 the first NPRSP implementation report was prepared, covering activities, results, and problems through 2007, 2008, and part of 2009.
- The country signed a new IMF Extended Credit Facility agreement in May 2010 for the period 2010-2012 following positive performance under the Emergency Post-Conflict Assistance program in 2008 and 2009.
- The World Bank approved two Economic Governance Reform grants: one in December 2009 and another in June 2010.
- GDP growth was positive in 2009, and the same result is expected in 2010.
- Fiscal balances:
  - Primary domestic deficit fell from 3.2 percent of GDP in 2008 to 2.9 percent in 2009.
  - Overall balance rose from a deficit of 3.8 percent of GDP in 2008 to a surplus of 2.9 percent in 2009.
- External accounts and current account:
  - The external balance on the current account (including government transfers) remained unchanged from 2008 to 2009 at -4.1 percent of GDP.
  - For 2010, a deficit is projected for the external current account balance of 5.8 percent of GDP.
- Inflation:
  - Inflation exceeded 10 percent in 2008 due to the food crisis.
  - Consumers price index declined by 1.6 percent in 2009.
  - In 2010, inflation rose partly due to rising import prices of fuel and a weaker euro.
  - In the coming years inflation should remain at less than 3 percent, the level permitted by WAEMU.

### Management of the government’s finances (NPRSP 1.1)
- Tax revenue performance:
  - Revenues increased by 27.1 percent from 2008 to 2009.
  - Indirect taxes rose by 28 percent from 2008 to 2009.
  - Direct taxes increased by 24.7 percent from 2008 to 2009.
  - In the first quarter of 2010 tax receipts increased 46.9 percent over the corresponding period the previous year.
  - Specific tax increases in Q1 2010 included:
    - Income tax relating to property value assessment: 472.5 percent.
    - Industrial assets assessment: 85.1 percent.
    - Standard property tax: 387.3 percent.
- Legal and institutional reforms:
  - Draft Organic Budget Law and Decree on Public Accounting approved by the Council of Ministers and adopted by the National People’s Assembly in March 2010.
  - Legislative decrees approved to establish the post of Financial Comptroller and reorganize the Directorate-General of the Budget in line with PEMFAR recommendations.
  - Regulations for credit managers and government accounts issued by the finance ministry from March to June 2010.
- Public financial management systems and processes:
  - Rollout of budget preparation and execution modules of the Integrated Government Finance Management System (SIGFIP) began to improve budget execution efficiency and transparency.
  - A procedural manual for ministries and departments prepared.
  - From June 2010 the government began preparing simplified budget execution reports.
- Public procurement reforms:
  - Reforms implemented on a trial basis in five ministries (education, health, finance, agriculture, infrastructure) in 2009.
  - Council of Ministers approved legislative decree in April 2010 to harmonize public tendering regulations with WAEMU standards.
  - Decree approved in April 2010 setting up a Central Procurement Unit.

### Reforming the public administration and modernizing the state (NPRSP 1.2)
- Personnel and payroll:
  - Personnel expenses declined from 98 percent of government revenues in 2008 to 77 percent in 2009, and are expected to decline to 67 percent of government revenues in 2010.
  - Biometric census of government personnel at the end of 2009 revealed about 4,000 civil servants were “ghost workers”.
  - Corrective measures in the first half of 2010 produced significant savings; a technical evaluation is being completed to prepare for purchasing a new payroll information management system to integrate biometric census data.
  - Since 2009 civil servants have been paid salaries on a regular schedule; the government is devising a way to finish paying salary arrears still pending from 2003.
- Information systems and connectivity:
  - Integrated Debt Management System (SIGADE) installed in the third quarter of 2009.
  - SIGFIP budget preparation and execution modules installed in 2009; government accounting module expected operational by end of 2010.
  - Automated System for Customs Data (ASYCUDA++) installed in August 2010.
  - A data center designed to provide improved connectivity for government ministries and agencies using a single communications platform was established.
  - By July 2010 all local government administrative centers had internet connections and computer equipment installed.
- Human resources and training:
  - Draft law setting up the National School of Administration (ENA) adopted in 2009; regulations to govern its operation established in August 2010.
  - By the end of 2010, 200 Guinean professionals will have received training in strategic planning, government finance, statistics, mobilization and coordination of aid, and administrative organization.
  - Other advances included restructuring government bodies, redefining missions and organizational charts, establishing job descriptions and staff profiles, instituting competition-based recruitment, and establishing a literacy program for civil servants.

### Consolidating the rule of law and the justice system (NPRSP 1.3)
- Policy and training:
  - Work began in March 2010 on drafting the National Justice Policy for 2011-2015.
  - In the second half of 2009 a continuous training plan for judges, prosecutors, lawyers, and justice officials was approved and implemented; over 40 training activities were carried out over a four-month period.
  - In July 2010 drafting of the legal basis and training regulations for the Judicial Training Center (CENFOJ) was completed; approval by the Council of Ministers expected by the end of 2010. Temporary premises in the National School of Administration classrooms to be used in late 2010 until CENFOJ construction is completed.
- Prisons and personnel:
  - Regional jails remodeled in Mansôa and Bafatá with capacities of 30 and 50 inmates respectively were officially turned over to new administrators in June 2010.
  - Five wardens and 80 guards were recruited and are to receive specific training in September 2010.
- Legislative reforms and consultations:
  - In 2009 and 2010 a series of basic legal texts to reform the judicial and legislative branches were drafted and approved, including texts to harmonize with OHADA, laws on organizational structure and criminal investigation, procedural law for the sentencing court, revisions to the organic law on judicial tribunals, law setting up the Judicial Coordination Board, amendments to the Code of Civil Procedure and the Code of Penal Procedure, regulations governing detention centers, schedule of court costs, law on access to the justice system, by-laws of the National Commission on Human Rights, and law on forfeiture of property to the government.
  - A national consultation exercise was conducted to develop draft legislation on female genital mutilation and the trafficking of persons.

*IMF staff summary of NPRSP implementation progress in 2009-2010.*

### 5. Reform of defense and security (NPRSP 1.4)

### 5. Reform of defense and security (NPRSP 1.4)

### Overview and context
- Political disruptions affected ongoing implementation but did not seriously interrupt the core reform work in the defense and security sector.
- The Priority Plan for the Reform of Defense and Security (PPRSDS) was prepared and approved in January 2010 and influenced reform actions in 2009 and 2010.
- The PPRSDS emphasizes: reducing the size of military and security forces, setting up a military pension fund and related benefits programs, and establishing professional standards for new recruits.

### Legal and institutional reforms
- April–May 2010: The legal framework for the defense and security forces’ new mission and mandate was revised. The People’s National Assembly approved over a dozen legal texts, including:
  - Law on National Defense and the Armed Forces
  - Basic Organic Law of the Organization of the Armed Forces
  - Law on the Responsibilities of the Armed Forces
  - Law on Compulsory Military Service
  - Statutory Regime of the Armed Forces
  - Code of Military Justice
  - Regulations on Military Discipline
  - Organic Law of the Ministry of Public Security and Homeland Affairs
  - Organic Law of the Police Force for Public Order
  - Organic Law of the National Guard (GN)
  - Statutory Regime of the Police Force for Public Order
  - Statutory Regime of the National Guard (GN)
  - Disciplinary Regulations of the Police Force for Public Order
  - Disciplinary Regulations of the National Guard (GN)
  - Organic Law of the Armed Forces

- June 2010: Government and the ANP approved the overall legal framework and attendant economic and legal requirements, including arbitration procedures, for setting up the pension fund. The fund will be managed by an independent financial institution selected through a public tendering process to guarantee transparency and procedural soundness.

### Personnel counts, biometric censuses, and recruitment standards
- 2008: Biometric census of the armed forces conducted.
- June 2009: Biometric censuses of the security forces and the Homeland Freedom Fighters (CLP) found:
  - armed forces: 4,458
  - paramilitary security forces: 3,450
  - Homeland Freedom Fighters (CLP): 5,883
- PPRSDS action: establish professional standards for new recruits.

### Capacity building, training, and awareness
- June 2010: National campaign officially launched to promote awareness of defense and security sector reforms.
- Support provided to the Special Committee on Defense and Security; establishment of a Documentation Center to strengthen ANP capabilities.
- Computer Training Center (CFC):
  - In full operation since June 2010.
  - Purpose: improve skills of officers in domestic security and criminal investigation.
  - Trained 89 members of: Police Force for Public Order, Judicial Police, Intelligence and Security Service, and Immigration Service.
- July 2010: Training activities conducted in Bafatá and Gabú regions to combat trafficking of children and domestic violence, especially against women.
- June 2010: International Conference on Raising Awareness of the Reform of the Defense and Security Sector held with participation of all sovereign agencies; culminated in the Bissau Declaration.

### Infrastructure, facilities, and equipment
- Renovation and conversion projects:
  - Fort Amura in Bissau renovated; renovation work begun on military installations in Gabú and Quebo.
  - Old NECSO shipyard in João Landim converted into a Police Training Center; premises officially turned over to the Ministry of Public Security and Homeland Affairs; final work under way to make the training center operational.
  - Model police station built and put into full operation in the military district (Bairro Militar) as part of developing a community policing model.
- Other operational support:
  - Work to convert facilities and create training capacity continued in 2009–2010.

*Source: _cr10382 - 5. Reform of defense and security (NPRSP 1.4)*

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### PILLAR 3: Expanding access to social services and basic infrastructure

### Education sector (NPRSP 3.1)
- Legislative and institutional reforms (2009–2010):
  - Education Policy Charter (2010-2020) adopted by the Council of Ministers in September 2009.
  - Basic Law on the Education System approved by the People’s National Assembly in March 2010:
    - Primary education increased from six grades to nine grades (three cycles: grades 1–4; grades 5–6; grades 7–9).
    - Official enrollment age for primary education lowered from 7 years to 6 years.
  - Statutory Regime of the Teaching Profession establishes recruitment, advancement, and performance appraisals for teachers.
  - Law on Higher Education and Scientific Research adopted in June 2010.
  - Law on School Cafeterias adopted in June 2010.
  - Higher Institute of Education (ESE) created by merging three teacher-training schools with administrative, financial, and pedagogical autonomy.
  - Education Sector Plan (2011-2013) drafted (completed June 2010); expected endorsement by development partners in September 2010 and accession to the “Education for all—Fast-track initiative” (EFA-FTI).
    - Planned financing request of approximately US$25 million to support implementation over three years.
  - Mandatory continuation to the end of grade 12 and sitting national examinations.

- Access and infrastructure (2009–2010):
  - 123 new classrooms built.
  - 110 existing classrooms renovated.
  - More than 600 adolescents and adults became literate via training at 10 training centers; training continued at 50 new centers, for a total of 9,000 students.
  - During Q3 2010, 3,920 school-desks and other materials distributed, benefiting a total of 196,000 students.
  - Fee for registering children to attend public primary schools abolished in 2002; import duties on textbooks abolished.

- Enrollment and participation (provisional MICS4/IDSR 2010 results):
  - Net primary-education enrollment rate in 2010: 67.4 percent (56.9 percent in 2003/2004).
    - Improvement of 10.5 percentage points in six years.
    - Bissau: 87.1 percent.
    - Urban areas overall: 83.5 percent.
    - Rural areas: 56.5 percent.
  - Gender gap in primary enrollment: girls 65.4 percent; boys 69.3 percent.
  - Net secondary-education enrollment rate nationally: 23.5 percent; for girls: 19.9 percent.

### Health sector (NPRSP 3.2)
- Child mortality (provisional MICS results):
  - Under-five child mortality: 203 per thousand live births in 2002; 223 in 2006; 155 in 2010 (MDG = target 80).
  - Infant mortality: 124 per thousand live births in 2002; 138 in 2006; 104 in 2010 (MDG = target 47.3).

- Planning and human resources:
  - Second National Health Development Plan (2011 to 2017) validated and adopted in May 2010.
  - 115 health professionals trained and assigned to health facilities in various regions.
  - Isolation and moving allowances for health personnel in remote interior locations started to be paid in 2009.
  - Training provided for ARV treatment and treatment of opportunistic infections to 57 health professionals; 22 received updated training on dispensing medications.

- Facilities and equipment (2009–2010):
  - Construction of health centers: Bissau (three), Biombo (one), Quinara (one), Bolama (two).
  - Rehabilitation and fitting out: hospital in Canchungo; operating room at Mansoa; operating room at Gabú.
  - Construction of accommodations for health staff in various health districts.
  - New 200-bed Military Hospital opened in August 2010.
  - Rehabilitating and expanding the National Simão Mendes Hospital (began in 2007) scheduled for completion by end-2010.
  - Brá Physical Rehabilitation Center rehabilitated in 2010 and operated by new management.

- HIV/AIDS response and testing:
  - Technical committee for monitoring, evaluation, and directing the National Forum on HIV/AIDS established; website launched.
  - 43 partnership and financing agreements concluded involving 35 local institutions (19 civil-society organizations, 12 public institutions, 4 businesses).
  - 22 counseling and voluntary testing units set up in 2009; 10 additional units revamped.
  - Over 29,000 people tested during that period; in June 2010, 24,300 people in the Bissau Autonomous District tested during voluntary screening.
  - MICS IV (2010) HIV/AIDS awareness indicators:
    - 91 percent of women aged 15 to 49 years have heard of HIV/AIDS.
    - 34.4 percent are aware of the three main ways to prevent it.
    - 64.4 percent know that it can be transmitted from mother to child.
  - ARV treatment centers: grew from 12 in 2008 to 26 in 2009.
  - As of December 2009, 2,764 patients receiving ARV treatment (29 percent men, 67 percent women, 4 percent children).

- Maternal and blood safety:
  - In 2009, 42,998 pregnant women received prenatal care.
  - In 2009, 4,894 units of blood collected and tested.
    - 6.8 percent infected with HIV (333 out of 4,894).
    - 11.4 percent infected with hepatitis B (558 out of 4,894).

- Vaccination (2010 campaigns and MICS4/IDSR coverage):
  - Three simultaneous campaigns for children up to five years: polio vaccination plus distribution of mebendazole and vitamin A (as of May 2010).
  - Vaccination coverage for infants less than one year of age as of May 2010:
    - DTP-HepB-Hib3: 38 percent.
    - Yellow fever: 43 percent.
  - First campaign to distribute vitamin A and mebendazole, May 2010: coverage rates of 111 percent for vitamin A and 112 percent for mebendazole.
  - Intensive vaccination training program conducted in 2009 and 2010 targeting public sector specialists and community practitioners, in cooperation with religious groups.
  - For remote areas, 30 solar-powered refrigerators and 60 standard refrigerators purchased and distributed.
  - Vaccination rates for infants less than one year of age (2010 MICS4/IDSR survey):
    - BCG: 93.5 percent.
    - Polio 1: 91 percent.
    - Polio 3: 74.5 percent.
    - DPT 1: 92.0 percent.
    - DPT 3: 76.2 percent.
    - Measles: 60.6 percent.
    - Yellow fever: 48.9 percent.

- Malaria: Administrative indicators, January 2009 to June 2010 (Table 3)
  - 1. Number of full ACT doses distributed to patients through health or community centers (all age groups): 302,274
  - 2. During the last three months, number of health facilities having no interruption of inventories (ACTs, SP, and quinine) lasting more than one week: 66
  - 3. Number of community health workers given training in the new policy of treating malaria using ACTs: 507
  - 4. Number of rapid diagnostic tests conducted: 77,506
  - 5. Number of IILNs distributed: 140,182
  - 6. Number of IECC/IEC sessions conducted through the media (State radio, private radio, etc.): 2,529
  - 7. Number of pregnant women receiving at least one SP dose (sulfadoxine-pyrimethamine): 63,941
  - 8. Number of individuals or health staff members trained: 397
  - According to MICS4/IDSR, 85.3 percent of families have at least one mosquito net.

### Drinking water and basic sanitation (NPRSP item 3.3.1)
- Planning and infrastructure:
  - Detailed master plan for 2011-2020 nearly finished.
  - 2009: rehabilitation of water production, treatment, and distribution system in Bissau completed, including construction of 58 public water distribution points and installation of meters.
  - 2010: process of building a 700 cubic meter reservoir to upgrade the drinking water distribution system launched.
  - Over 60 water distribution points built or rehabilitated, including those in schools.
- Hygiene and sanitation outreach:
  - Health education program reached 6,500 families with information on proper hand-washing at critical moments.
  - Primary schools: 107 groups of latrines built or rehabilitated.
  - 800 household latrines built.

### PILLAR 4: Raising the standard of living of vulnerable groups
- Cross-sectoral approach focusing on women, young people, and persons with HIV/AIDS.
- Gender and protection initiatives (2009–2010):
  - Draft legal texts prepared on: (i) reproductive health; (ii) violence against women and girls; (iii) trafficking in persons.
  - Strategy to combat female genital mutilation approved in 2010.
  - National Committee to Eliminate Female Genital Mutilation reestablished.
  - Two studies being carried out and validated on: controlling trafficking in children; abuse and sexual exploitation of children.
  - Rehabilitation and fitting out of shelters for children victims of violence in Gabú and Bafatá.
  - Second report on implementation of the UN Convention on the Rights of the Child (CRC) presented to the Committee on the Rights of the Child in Geneva, together with an alternative report by NGOs.
  - Capacity building provided for specialists working with children (legal officers, police officers, NGOs, and IMC members) focusing on legislative framework and protection from violence and abuse.

- Youth employment and training:
  - Emphasis on occupational training, institutional capacity for training, and strengthening microfinance.
  - 2009: about 500 young people participated in the CREE-TRIE-GERME training program (business development, idea generation, business management) and developed business plans for financing.

- Refugees and asylum seekers:
  - In 2010 there were at least 7,622 refugees and asylum seekers, about the same as in 2008.
  - UNHCR cooperating with government and two NGOs to coordinate protection and integration; UNHCR opened an office in Bissau in 2010.

### Conclusion and outlook
- 2009–2010: despite security and governance challenges, far-reaching reforms achieved macroeconomic stabilization and promoted economic growth.
- Second NPRSP formulation initiated April 23, 2010; technical workshop and circulating guidance note; thematic reports (nine) to be available beginning August 31, 2010.
- Major statistical projects undertaken simultaneously:
  - General Population and Housing Census (RGPH).
  - Fourth Multiple Indicators Cluster Survey and first Population Survey on Reproductive Health (MICS4/ISDR).
  - Second Rapid Poverty Assessment Survey (ILAP II).
  - Two studies: origins of economic growth; non-monetary poverty.
  - Assessment of needs and costs to achieve the MDGs.
- Priorities for second NPRSP to remain as in 2009 but may be revised based on statistical findings; main objectives:
  - Significant and lasting reduction in poverty.
  - Progress toward achievement of the MDGs.
  - Step up economic growth in employment-providing sectors and diversify the economy.
  - Develop the private sector and integrate business per Diagnostic Trade Integration Study (DTIS) recommendations.
  - Improve macroeconomic management and consolidate administrative reforms to ensure quality basic public services (education, healthcare, water and sanitation).
  - Address environmental management; draft basic law on the environment well advanced.
  - Include management of external shocks (international and domestic political instability), climate change, and environment; use findings of June 2010 vulnerability and adaptation study.
- Institutional priorities:
  - Consolidate peace; reform defense and security forces; strengthen administrative apparatus and democratic institutions; institute effective justice system and rule of law; combat drug trafficking.
  - Build capacity for planning, monitoring and evaluation, and aid coordination; Guinea-Bissau acceded to the Paris Declaration in August 2010.
  - Linkage between NPRSP and national budget via the Medium-Term Expenditure Framework (MTEF) to ensure implementation within resources.
- External support and debt relief:
  - Continued international donor support essential.
  - Completion point under the HIPC Initiative and MDRI expected to provide debt forgiveness, improve investor confidence, and free resources for development and NPRSP II implementation.

*Source: IMF country report content provided in the supplied PDF excerpt.*

### Annex 1: Structure of the NPRSP

### Annex 1: Structure of the NPRSP

### Pillar 1: Strengthening governance, modernizing the public administration, and guaranteeing macroeconomic stability
- Subarea 1.1: Strengthening governance and guaranteeing macroeconomic stability
  - Action lines:
    - 1.1.1 Continue to improve budget management
    - 1.1.2 Strengthen macroeconomic management
- Subarea 1.2: Modernizing the public administration, and capacity-building
  - Action lines:
    - 1.2.1 Reform the public administration
    - 1.2.2 Undertake capacity-building
- Subarea 1.3: Consolidating the rule of law and the justice system, and encouraging decentralization and social dialogue and consensus-building
  - Action lines:
    - 1.3.1 Promote justice that is swift, transparent, accessible, and independent, and strengthen the People’s National Assembly
    - 1.3.2 Foster local development and promote social dialogue and consensus-building
- Subarea 1.4: Reforming the security sector
  - Action lines:
    - 1.4.1 Transfer barracks from military to civilian use, renovate them, and raise the standard of living they provide
    - 1.4.2 Transform security forces into agents of peace and consolidation of the rule of law.

### Pillar 2: Promoting economic growth and job creation
- Subarea 2.1: Improving the business climate and fostering economic sectors that employ the poor
  - Action lines:
    - 2.1.1 Improving the business and investment climate
    - 2.1.2 Fostering productive sectors and promoting economic diversification and competitiveness
- Subarea 2.2: Developing infrastructure to support production
  - Action lines:
    - 2.2.1 Rehabilitate the energy sector
    - 2.2.2 Develop the highway infrastructure
    - 2.2.3 Support the development of land and river infrastructure
    - 2.2.4 Support the sector comprising air services, weather services, and telecommunications

### Pillar 3: Expanding access to social services and basic infrastructure
- Subarea 3.1: Providing better access to quality education
  - Action lines:
    - 3.1.1 Improve access to primary, secondary, and postsecondary education
    - 3.1.2 Guarantee basic quality schooling for all
- Subarea 3.2: Improving the state of people’s health
  - Action lines:
    - 3.2.1 Improve the availability and quality of health services
    - 3.2.2 Combat HIV/AIDS, tuberculosis, malaria, and other diseases
- Subarea 3.3: Improving people’s standard of living
  - Action lines:
    - 3.2.3 Improve maternal and child health
    - 3.3.1 Improve access to drinking water and sanitation
    - 3.3.2 Improve housing for the poor

### Pillar 4: Raising the standard of living of vulnerable groups
- Subarea 4.1: Promoting the socioeconomic integration of vulnerable groups
  - Action lines:
    - 4.1.1 Improve social protection for vulnerable groups
    - 4.1.2 Encourage income-generating activities
- Subarea 4.2: Carrying out specific actions to assist vulnerable groups
  - Action lines:
    - 4.2.1 Promote women’s centers to provide shelter and combat illiteracy
    - 4.2.2 Promote recreational activities and bring organization to spontaneous settlements

*Source: Annex 1: Structure of the NPRSP*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10382.pdf_