Mali – At the Dawn of a New Year
IMF Blog, January 11, 2014
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Bibliographic details
- Authors: Christine Lagarde
- Published: January 11, 2014
Context and recent developments
- Author and date: Christine Lagarde, January 11, 2014.
- Mali experienced "massive turmoil in 2012" but is "emerging successfully" as of the publication date.
- Parliamentary and presidential elections have been held and the newly elected government has put forth a new economic program aimed at increasing growth and reducing poverty.
- Political situation described as "settled" with national reconciliation underway; civil society and government leaders emphasize getting the economy "back on track."
- IMF engagement: "The IMF is Mali’s partner in this great endeavor."
Key achievements and statistics prior to 2012 crisis
- Average annual growth rate before the 2012 coup: 5.5 percent.
- Primary school enrollment had reached 70 percent of all children.
- Male and female literacy rates had doubled (no baseline values provided in the source).
- Child mortality had been almost halved (no baseline values provided in the source).
- The poverty rate was down (no numeric value provided in the source).
Challenges and constraints
- Mali faces an "extraordinarily difficult transition" from restoring political stability to securing economic stability, "from crisis to recovery."
- Large and untapped economic and human potential exists but requires concerted action.
- Financial inclusion constraint: "only 10 percent of the population has a bank account."
- Fiscal constraints: "huge investment needs and the fiscal space for the necessary spending needs to be created."
- Governance issues highlighted, including the need to "step up efforts to fight corruption in a resolute and sustained manner."
Policy framework — "The Three Ps"
- Public investment
- Mali has "huge investment needs."
- Fiscal space must be created through actions to:
- increase revenues,
- address inefficient energy subsidies,
- tackle governance and public financial management issues.
- Anti-corruption efforts need to be "resolute and sustained."
- Private investment
- Supporting entrepreneurship is a "key component" of development.
- Preconditions needed include greater financial sector development and a stronger business environment.
- Financial inclusion gap noted: "only 10 percent of the population has a bank account."
- Participation for all
- Emphasis on increasing investment in human capital: "the country’s greatest potential—its people."
- Growth should be "more equitable and more inclusive."
- All sectors and actors—men and women—should have access to opportunity and the benefits of growth.
- Specific mention: "Women, in particular, can and should play a key role in unlocking Mali’s potential."
- Education sector explicitly named as an area for inclusive access.
Outlook and closing assessment
- The author expresses confidence: "I came away confident that it will be able to do it."
- Distinct yearly framing: "2012 was the year of the crisis; 2014 can and must be the year of recovery."
- Final sentiment: a feeling of hope and encouragement about Mali’s future; IMF positioned as a partner in the recovery.
Source: Christine Lagarde, "Mali – At the Dawn of a New Year," January 11, 2014.
