Chad: Poverty Reduction Strategy Paper
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© 2003 International Monetary Fund July 2003 IMF Country Report No. 03/209 Chad: Poverty Reduction Strategy Paper Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country's macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. This country document for Chad, dated June 2003, is being made available on the lMF website by agreement with the member country as a service to users of the IMF website. To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to [email protected]. Copies of this report are available to the public from International Monetary Fund • Publication Services 1 700 19 h Street, N.W. • Washington, D.C. 20431 Telephone: (202) 623-7430 • Telefax: (202) 623-7201 E-mail: [email protected] • Internet: http://www.imf.org Price: $15.00 a copy International Monetary Fund Washington, D.C. REPUBLIC OF CHAP Unity- Work- Progress MINISTRY OF PLANNING, DEVELOPMENT AND COOPERATION PRSP Steering Committee National Poverty Reduction Strategy Paper N'Djamena- June 2003 ls<'' R r·g (/ . .fi ' nf, ,,;, v EPUBtt!lUE 1\lTa>AfRU::::.All\lE 1 PREFACE Poverty is just as much a challenge today as it ever was, as the recent improvement in Africa's economic situation is still insufficient and the continent remains relegated to the srdelines of the world economy. Most reports produced recently stress the specificities of sub-Saharan Africa where the number of poor in absolute terms continues to increase, whereas progress has been made in other regions of the world. Indeed, it seems that mmimum grow1h rates of 5-8 percent will be needed to have an effecllve impact on economic and social development Chad's mam objective rs to implement an economic policy that w!ll bring about lasting and sustainable development, partrcularly m the oil era Thrs development must mvolve high grow1h rates holdmg steady over a relatively long period. The PRSP has proven to be the instrument of choice in attaining this objective. Thrs exercise is not new; the Government of Chad had already submitted a paper to the Geneva IV Round Table in 1998 outlining the key strategic options for development based on "poverty reduction." The Government wanted the preparation of the "Natrona! Poverty Reductron Strategy (1\'PRS) to be participatory. For this reason, it set up a steenng committee m April 2000 comprismg some 30 members from the public sector, private sector, civil society associations (NGOs, women's organizations, youth organizations, the public and pnvate media, etc.) and the National Assembly. For three years, the steenng committee worked tirelessly on the paper so that it would better reflect the concerns of the Chadian populatron. A number of different activities were carried out: • a launching seminar (Apnl25 -27, 2000); • a study on the perceptions of well being and poverty (April-June 2000); • 10 thematic and sectoral studies (May-July 2000); • a civil society forum (November 2000); • country-wide participatory consultations (December 2000-January 2001 ), • an assessment of typical intervention through some existing projects (February March 2001); • a national semmar to define strategic areas and priority actions~(May 8-12, 2001); • regional seminars to re-establish strategic areas and priority actions and adopt performance indicators and a monitoring/assessment mechanism (March 19-21, 2002)~ All these components progressively refined the various versions of the PRSP, which was also enhanced with the input of Chad's development partners, particularly the United Nations System, World Bank, IMF, European Union, France, and GTZ. 2 Having adopted the Millennium Development Goals (MDG), Chad shares the opinion of the rest of the world that the PRSP is, first and foremost, a strategy that reflects the expectations of the general population and the resources that the Government must deploy to enable that population to increase its standard of well-being. It is possible that some data presented in this report may be incomplete or partml, however the strategic issues and priority actions are consiStent overall, and the Government and its partners are adhering to them Subsequent revisiOns of the document will provide the opportunity to adjust certam quantitative indicators in light of new data from current surveys, in particular ECOSJT (survey of informal sector consumption), EDST (demographic and health survey), and the census The document that the Government has just adopted will be submitted to the donor commumty in the coming months for them to sign on. Until then, the steering committee and the sectoral ministnes (with the support of partners represented on the ground) will undertake a thorough evaluation of proJects and programs by sector of activity. The implementation and follow-up of the PRSP will once again call for a more decentralized and participatory consensus-building approach. In the interest of transparency and good governance, the structures to be created will work in conJunctiOn with regional and local governments to ensure that the expenditure executed within the framework of the PRSP will actually reach the targeted beneficiaries. The Government, for its part, will spare no effort to ensure that this strategy truly reduces poverty by 2015. N'Djamena, June 5, 2003 /s/ Djimrangar Dadnadji :v!inister of Plan, Development and Cooperation 3 TABLE OF CONTENTS Introduction ...................................................................................................................... lO Chapter 1 Background and Process for Preparation of the PRSP ............................. 11 1.1 The International, Regional and National Background .................................... II 1 1.1 The International and Regwnal Context.. .............. 11 1.1.2 The National Context.... ............. 12 1.2 Presentation of the Participatory Process .......................................................... 15 1. 2.1 The Steering Committee in Chare of the Strategy Preparation Process.. 15 1.2.2 The Strategy Preparation Process. ............................ 16 Chapter 2 Diagnostic Assessment of Poverty in Chad ................................................ 18 2.1 Profile of Poverty in Chad .................................................................................. 19 2.1.1 Quantitative Analysis of Poverty ...... ... .. ... ... ... 19 2.1.2 Qualitative Analysis of Poverty . ........... 23 2.1.2.1 Poverty and Well-Being as Perceived by the Population . .. 23 2.1.2 2 Lessons Drawn from Participatory ConsultatiOns.. ...... 24 2.1.3 Typificatton of Poor Households. .......... 28 2.2 Vulnerable Social Groups ................................................................................... 32 Chapter3 Determinants of Poverty and Opportunities in Chad ................................ 36 3.1 Determinants of Poverty ..................................................................................... 36 3.1 1. Governance...... .. .. ....... .. 36 3.1.2. Modest Economic Growth..... .. ....... ...... ......... .. .. 38 3.1.2.1 Low Productivity in the Primary Sector. ... ........ ... ........ 38 3.1.2.2 A Practically Nonexistent Processmg Sector.... ...... 40 3.1.2.3 A Largely Unproducttve Tertiary Sector ..... .41 3.1.3 Highly Deficient Human Resources and Living Condttions ........... .41 3.1.3.1 Education, Training, and Literacy Classes . ... ...... .... .... ... ... 41 3.1.3.2 Inadequate Health Care Coverage and Hypothetical "lutritwn .............. 42 3.1.3.3 HIV/AIDS.. ... 44 3.1.3.4 Status of Women in Chad.. .. ...... .. ...... ... ... ...... 44 3.1.3.5 Lack of Soctal Protection .. 44 3.1.4 Inappropriate and Dilapidated Baste Economic Infrastructure ....... 44 3.1.4.1 The Road Network .............. ...................... .44 3. 1.4. 2 Energy ·········· . .45 3.1.4.3 Telecommunication .. ········· .45 3 .1.4.4. The Banking System and Micro finance . ....... .46 3.1.5. Other Obstacles to Poverty Reduction .............. ..46 3.1.5.1 Debt. .................. .. 46 3.1.5.2 Demographic Factors..... .47 3.1.5.3 Explosive Rermants of War, Factors Exacerbating Poverty...... .47 3.2 Chad's Strengths ................................................................................................. 49 3.2.1 Opportunities . ... ... ..... ... .. ..... ........ .... .... ................ .49 3.2.2 The Long-Term Outlook for Growth and Development.. ........ ...... ...... 51 3.2.2.1 The Oil Boom Era............ .. .. ............ .. 51 3.2.2.2 The Highly Indebted Poor Countries (HJPC) Inittative. .. ..51 4 Cltapter 4 The Overall Outlook for Development Through 2015 ............................... 52 4.1 An Integrated Vision of Poverty Reduction Combined with the Preparation of the Post-Oil Boom Era ......................................................... 52 4.2 Poverty Reduction Targets from 2003 to 2015 ................................................... 54 4.2 I Promote Good Governance.. .. 54 4.2.!.1 Consolidation of the Rule of Law.. ...... SS 4.2.!.2 Role of the State, the Private Sector, and Civil Society ....................... 55 4.2.1. 3 Efficient and Transparent Management ofpublic i'Jfmrs ......... 60 4.2.2 Ensure Strong and Sustamed Economic Growth.. .. 60 4.2.2.1 Exploitation