Benin I S economic development ob jectives comprise the following four major priorities:
C. Highlights of policy reforms in support of the national recovery programme (1986-1990 )
17. ETHIOPIA A. Overall economic performance since 1980
The Ethiopian economy had made significant progress since the 1974 Revolution, in particular, in the development of social and economic infrastructures which were designed to lay the groundwork for speedy development, in addit10n to the land reform and related measures. Since 1980, however, it has been declining due to recurrent devastation by drought and the
unfavourable international economic situation. The gross national product
at current market prices was estimated at $4,845.8 million in 1983 and at
$4,831.1 million in 1984, indicating a decline of 0.5 per cent for the year.
Be~ween 1980 and 1984, ~he GDP grow~h ra~es a~ cons~an~ prices declined s~eadily
from 3.1 per cent; in 1981 t o -3.7 per cent in 1984, except in 1983 when the rate of growth was 5.3 per cent. These rates avee-aged 1 ..5 per cent annually during the entire period. In terms of per capita income, the performance was more dismal. Per capita GDP at cur-rent mar ket prices declined from $118 in 1983 to $114 in 1984 and per capita growt h r ate s averaged -1.8 annually for
~he period 1980-1984.
The most important factor which has accounted for the poor performance of the Et.hi.op Lan economy has been the unpre cede nt ed and debI ltt at Lng dr ougbt which ravaged the counr ry cont LnuousIy for th r e e years during the period
1981-1984. This drought brought havoc to the agricultural activities and caused significant damage to life and property. The country is stI l I feeling the Lmpact of the onsLaught of the drought. Low level of Lnvestmerrt which has resulted from financial cons~rain~ has also played a par~. This is in addition to unfavourable international economic conditions.
The tot a I external debt of the country stood at $1,550.2 million by the end of 1984 while the debt>service ratio amounted to about 19.3 per cent. I t is to be noted also that the net resource flows to Ethiopia have been rising
s~eadily over the past few years. The total flows increased from $302.0 million in 1980 to $443.2 million in 1984. aDA rose from $221.5 million in 1982 to
$397.2 million in 1984 while other forms of assistance fell from $61.0 million to $46.0 million, but remained one of the Lowest in the world in per capita terms.
B. Main areas of focus of ~he na~ional recovery programme (1986-1990)
With the priority given to food and agriculture, Ethiopia has focused on integrated rural development with emphasis on water resources development.
In the field of agriculture, a number of incentives were given including the provision of fertilizers, seeds, preferential credit, implements, extension services, training to farmers and the establishment of regional Peasant Agricultural Development Programmes (PADEP) to enhance an increase in agricultural productivity and production throughout the country. Other sectoral measures in support of agriculture include the development of industry, with particular emphasis being placed on the production of agricultural implements and agro-based indus~ries and the developmen~ of small-scale industrial enterprises. The country has embarked on the development of human resources for agricultural production, and particular programmes have been instituted to train peasants. In an effort to improye the quality of life leading to increased productivity, attention will continue to be given to the provision of health services to the peasantry and urban poor, with their participation, by implementing the eight elements of Primary Health Care as declared at Alma-Ata in 1978.
C. Highligh~s of policy reforms in support of ~he national recovery programme 0986-1990)
of policies di r e cted towards programme and the restoration of devas~a~ing drough~. In the were given including provision The E~hiopian Governmen~ adopted a number
the effective implementation of its recovery of firm and st abl.e g rovt h after several years
field of agriculture a number of incentives
of fertilizers, seeds, preferential credit, implements, extension services and training to farmers, and the establishment of regional Peasant Agricultural Development Programmes (PADEP) to supervise the implementation of the agricultural policies and programmes throughout the country. Due to an uneven settlement pattern, degradation of land beyond reclamation in some regions of the country resulting from high population density, deforestation, soil erosion, an elaborate resettlement programme for the drought victims in the more fertile and sparsely populated areas is being pursued. A number of activities designed to provide the necessary means for stable settled life like building of dams, drilling wells, etc., have been undertaken. By end-January 1986 about 600,000 drought-affected persons have been resettled, mostly in the western and south-western parts of the country. At the same time the Government is improving its planning capabilities through establishment of regional planning centres and creating more opportunities for private initiative encouraging the co-operative sector and providing facilities for joint ventures.
This is in addition to other macro-economic policy measures designed to encourage savings and improve financial management aud resource utilization.
D. Estimates of resource requirements for the national recovery programme (1986-1990)
Millions of US dollars (i) Resources already mobilized
Domes t i ca 11 y Externally
Subtotal
Resources planned to be mobilized Domestically
Estimatps of ljk~ly av~jlahlp TPAourcps Total estimated cost of programme
Resource gap E. Estimates of debt-servicing requirements (1986-1990) (in millions of US
dollars)
18. GAllON A. Overall economic performance since 1980
High oil export earnings and low population growth (2.0 per cent) combined to place Gabon among the higher income categories in the African region. Per capita income amounted to $3,490 in 1984. However, overall GDP grew by only 1. 5 per cent yearly between 1980 and 1984. This has been mainly due to the decline in oil prices in recent years, as production has been sustained at high levels, reaching 9 million metric tons in 1984. I t is for this reason that the Government is currently making serious efforts to diversify the economy through the revitalization of forestries and development of timber industries and agriculture, and the promotion of small- and medium-sized enterprises.
The out stand i.ng external public debt stood at $611 million in 1984. The Government has made tremendous efforts to reduce its indebtedness to the outside world: at the end of 1979, the outstanding external debt amounted to $1.5 billion. About 66.6 per cent of this debt was contracted on concessional terms and the remainder on non-concessional terms. Public debt service accounted for about 10.5 per cent of export earnings in 1984. With the fall in oil revenue, which is becoming steeper from year to year, the country's credit worthiness and debt repayment capacity will continue to diminish. It was in anticipation of the decline in oil revenue that the State made provision in the Five-Year Plan (1984-1988) for a sharp reduction in the planned new loans so as to avoid reduction in public investments after 1988. Gabon receives almost no development assistance in the form of grants. However, official assistance received in the form of concessional loans has risen from $90 million in 1983 to $214 million in 1984, during which year the net flow of resources amounted to $62.0 million.
B. Main areas of focus of the national recovery programme (1986-1990)
The Government is currently in its second year of implementing the Five-Year Plan (1984-1988). The Plan takes into account the prospects of a fall in oil revenue and provides for the confinement of public investment spending within the limits of projected revenue and the reduction of external debt in order to preserve the country's credit-worthiness. The portion of the Plan that has yet to be implemented is considered part of the priority programme for economic recovery, and has the following sectoral priorities: (8) agriculture and rural development, with emphasis on agro-industrial operations and supporting activities together with development of rice, maize and soya beans; (b) economic infrastructure, in particular the implementation of major rail and road projects;
(c) physical planning; and (d) human resources development.
c.
Highlights of policy reforms in support of the national recovery programme (1986-1990)The following policy reforms have been undertaken:
(a) In anticipation of the fall in oil prices following measures have been adopted: freezing of service except for new graduates, suspension of promotion, suspension of administrative contracts,
and export earnings, the recruitment in the civil benefits and accelerated immediate cancellation of
any contract being negotiated or recently signed but not incorporated in the budget. the postponement or rephasing of certain projects provided for under the budget;
(b) The establishment of an audit service for state corporations, public agencies and parastatals within the office of the Controller and Accountant-General;
(c) The blockage of subsidies and other financial assistance and the formulation of a legislative and regulatory framework within which control of the use of subsidies and other financial assistance extended by the State can be improved; and
(d) The adoption of a liberal economic policy to restore dynamism to the private sector.
D. Estimates of resource requirements for the national recovery programme (1986-1990)
Millions of US dollars
(iii) (iv) (v)
(i) Resources already mobilized Domestically
Externally Subtotal
(ii) Resources planned to be mobilized Domestically
Externally Subtotal
Estimates of likely available resources Total estimated cost of programme
Resource gap
1 324.3
1 324.3
1 324.3 1 784.2 459.9
E. Estimates of debt-servicing requirements (1986-1990) (in millions of US dollars)
Type of debt
Official creditors Private creditors Total
Interest 71.1 147.9 219.0
Principal 139.1 411.4 550.5
Total 210.2 559.3 769.5
19. THE GAMBIA