Benin I S economic development ob jectives comprise the following four major priorities:
D. Estimates of resource requirements for the national recovery programme (1986-1990) 2.-/
The policy reforms include:
(a) Strengthening of centres for rural action (CARDERs) to ensure farmer participation and provide extension services in agricultural techniques;
(b) Establishment of a Standing Commission responsible for the supply of factors of production and the marketing of agricultural products;
(c) Strengthening of the agronomics research department for the development of new varieties;
(d) Regulating of cereal prices by the Office national des cereales ONC and guaranteeing the best prices for producers;
(e) Establishment of commissions to draw up price lists and fix prices of agricultural produce;
(f) Establishment of the "Fonds de soutien et de stabilisation des prix agricoles" (agricultural price support and stabilization fund); and
(g) Encouragement of private sector participation in certain public or semi-public enterprises.
D. Estimates of resource requirements for the national recovery programme (1986-1990)
2.-/
Millions of US dollars (i) Resources already mobilized
Domestically Externally
Subtotal
(ii) Resources planned to be mobilized Dome s t i ca 11y
Externally Subtotal
(iii) Estimates of likely available resources (iv) Total estimated cost of programme
(v) Resource gap
265.4
265.4 265.4 924.3 658.9
2.-/
Based on data contained in the Second State Plan (1983-1987).E. Estimates of debt-servicing requirements 0986-1990) (in millions of US dollars)
Type of debt
Interest Principal
Official creditors 39.9
94.8
4. BOTSWANA
Private creditors 43.8 198.9
Total 83.7 293.7
A. Overall economic performance since 1980
Botswana is a land-locked country with an area of 582,000 km2 and a population of 1.053 million in 1984. Botswana's economic growth has been mainly dominated by an export-oriented mining sector. During 1980-1984, GDP grew at an average rate of 9.7 per cent, while GDP per capita grew at a rate of 5.9 per cent. The country enjoys a sound balance-of-payments position. The other dominant sector has been agriculture, particularly cattle rearing. The outbreak of foot and mouth disease in the late 1970s led to a decline of almost 55 per cent in beef exports. This was further aggravated by environmental degradation and the serious drought that hit the country. The country has no significant debt-service problem. Its external debt was $165 million by the end of 1981 while net external resource flows amounted to $403.9 million.
Since 1982, however, the Government has had to step up external borrowing to finance a number of infrastructural projects. This resulted in a rise in external debt to $356.1 million in 1984 and a debt-service ratio of 2.3 per cent as against a debt-service ratio of 1.4 per cent in 1983.
Among the country's major problems is the growing number of the unemployed arising from the capital intensive nature of the mining sector. Due to lack of developed infrastructure and industrial base, most manufactured goods are produced more efficiently in South Africa, making protection under the South African Customs Union (SACU) necessary if local industries were to compete.
The stable political system and the favourable economic environment have otherwise encouraged the inflow of external resources.
B. Main areas of focus of the national recovery programme (1986-1990)
The main focus is on agriculture especially crop cultivation to reduce dependence on cattle rearing. Great attention is being given to paying remunerative prices to farmers and the building up of adequate transportation and mark. ting facilities. Post-drought measures are being undertaken to speed up the rehabilitation of the agricultural sector. The recovery programme also emphasizes rural development and job creation. Study of irrigation option is being given priority, although conjunction of adequate water resources and suitable soils may limit opportunities. Manpower development, at technical, managerial and professional levels, is emphasized.
C. Highlights of policy reforms in support of the national recovery programme (1986-1990 )
In the agricultural sector price incentives will be used to foster increased production. Financial incentives such as the Financial Assistance Policy will be used to promote industrial development and thus diversify the economy and create employment opportunities. Technical and vocational training will be accorded a high priority to produce the required skilled manpower which is one of the major constraints to development.
D. E:stimates of resource r..e-,qui-rements for the national recovery programme (1986-1990)
Millions of US dollars (i) Resources already mobilized
Domes t i ca 11 y Externally
Subtotal
(ii) Resources planned to be mobilized Domestically
Externally Subtotal
(iii) Estimate of likely available resources (iv) Total estimated cost of programme
(v) Resource gap
4.2
45.9
4.2
45.9 50.1 142.2 92.1
E. Estimates of debt servicing requirements (1986-1990) (in miI'Lion s of US dollars)
Type of debt
Official creditors Private creditors Total
Interest 112.5 14.0 126.5
Principal 140.8 10.9 151. 7
Total 253.3 24.9 278.2
5. BURKINA FASO A. Overall economic performance since 1980
Burkina Faso has been seriously affected by the protracted drought which ravaged the country for more than a decade, as well as by the encroaching desertification which has seriously harmed its productive potential. Over the period 1980-1984, real GDP grew at an average annual rate of -0.7 per cent, largely because of the failure in agricultural production, particularly food production.
The volume of the country's external debt was estimated at $754.2 million in 1985. From 1981 onwards, the ratio of debt-service to exports exceeded the tolerable limit, rising from 36.83 per cent in 1982 to 48.1 per cent and 60.81 per cent in 1984 and 1985 respectively. At the same time, the net flow of resources declined from $277.9 million in 1980 to $224.0 million in 1984.
ODA constituted about 84 per cent of the latter figure against 77 per cent at the beginning of the 1980s.
B. Main areas of focus of the national recovery programme (1986-1990)
The priority areas for the national recovery programme are the following:
(a) Agriculture, which accounts for 74 per cent of the investment and modernization effort, covers the following activities: promotion of food crop with a view to achieving food self-sufficiency, advisory services regarding
improved inputs, water and irrigation schemes, and agrarian reform;
(b) The other sectors directly supporting agriculture will receive 13 per cent of investments for the five-year period 1986-1990 with a view to strengthening the productive machinery by integrating agriculture closely with agro-based industries and developing and reorganizing the marketing system
so as to limit the number of middlemen;
(c) of water promoted of trees,
To control drought and desertification, the policy of judicious use will be pursued, widespread introduction of improved stoves will be and three offensives will be launched against the abusive cutting
cattle rustling and bush fires; and
(d) Human resources development will focus mainly all, mass literacy, staff training, and the organization rural populations.
on health care for and mobilization of
c.
Highlights of policy reforms in support of the national recovery programme (1986-1990)In the context of its People's Development Programme, the Government spelt out a number of social and economic restructuring measures for application in 1984 and 1985. The first five-year People's Economic and Social Development Plan for the period 1986-1990 was prepared with the same concerns in mind.
The special feature of the programme is its degree of decentralization and the effective involvement of the broad masses at all stages of project identification, selection and implementation. In the private sector, the
emphasis is placed on economic development.
to encourage private a numbe r of measure s operations as well as and redeeming arrears.
making private businessmen aware of their role in socio-The revision of the investment code is also designed investment. In the public sector, the Government took directed towards dynamizing public sector enterprisesI streamlining budgetary operations, increasing investment,
D. Estimates of resource requirements for the national recovery programme