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Central African Republic Unity - Dignity - Labour PRSPII 2011-2015 Poverty Reduction Strategy Paper Reducing extreme poverty Central African Republic Unity - Dignity - Labour PRSPII 2011-2015 Poverty Reduction Strategy Paper Reducing extreme poverty Foreword The Poverty Reduction Strategy Paper (PRSP) 2008-2010 has expired after three (3) years of implementation. The aim of this first PRSP was to arrive at an independent assessment dealing, essentially, with the way it would be formulated, the institutional devices needed for its implementation and follow-up implementation, as well as the implementation itself, in terms of relevance, efficiency and outcomes. The assessment report, including the strengths and weaknesses of the PRSP followed by recommendations was returned both to Bangui and in the seven (7) regions of the Central African Republic. The lessons learned from this assessment have been used to establish the general approaches to be adopted by a second Poverty Reduction Strategy Paper (PRSP 2). These approaches are aimed at accelerated pro-poor growth focused on rural development, together with the struggle against foods insecurity, the reinforcement of the basic infrastructures supporting growth, the development of human capital and the population's access to basic social services with a view to accelerating progress towards the achievement of the Millennium Development Goals (MDG). PRSP 2 includes some innovations covering: (i) the involvement of a large number of concerned parties; and (ii) the incorporation of new subject areas such as the environment, tourism and the private sector which were not really taken into account in the first PRSP as well as emerging and overarching sectors including Information and Telecommunications Technologies and Youth. It also has provided an opportunity for our major development partners who have spared no efforts to provide support in a wide range of different ways in the various tasks involved in formulating the national strategy. In additional to national and international expert consultancy, this work has involved a number of studies and surveys which have been undertaken over the last few years. PRSP 2, which is based on the MDG, is the base document for the great Round Table planned for the first half of 2011. In this respect it will be recalled that during the 65th session of the General Assembly of the United Nations held between September 20 and 22, 2010 in New York on the theme "World Governance based on the MDG", particular emphasis was placed on the MDG Acceleration Framework. This Acceleration Framework is focused on countries which, like the CAR, are finding it difficult to achieve their MDG by the 2015 deadline. On the same occasion, a number of partners who had taken part in the special session devoted to the CAR made a commitment to support the country in the efforts agreed to by the Government. Emphasis should also be placed on the important part played by the partners who decided to support the CAR in the preparation and organisation of this Round Table. The drafting and development of this document called for the very widest participation of the parties involved, at both national and international levels, and the outcome is very much a joint effort. Sylvain MALIKO Minister of State for Planning and the Economy April 2011 List of acronyms and abbreviations 3 ACAP Central African Press Agency; GR Regional groups MCA Multiple Correspondence Analysis GT Thematic groups LASCW Light Arms and Small Calibre Weapons HCDHBG High Commissariat for Human Rights and ANIF National Financial Investigation Agency Good Governance APEI Agency to promote exports and investment MDCI Multilateral debt cancellation initiative EPA-EU Economic Partnership Agreements - European Union CARISESR Central African Republic Institute for Statistics PSRA Petroleum products prices stabilisation and and Economic and Social Research regulation agency IMIS BEAC Bank of Central African States IVIPC Initiative of Very Indebted Poor Countries WB World Bank IST Sexually Transmitted Infection (STI/STD) AHC Ascending Hierarchical Classification EITI Extractive Industries Transparency Initiative CAS-DF Special Forestry Development Allocation Account Kcal Kilocalories CCC Communication on Changing Behaviour MCA CDMT Medium-term expenses framework MICOPAX Mission to consolidate peace CEEAC Central African Economic and Monetary Community MICS3 Multiple Indicators Survey EIC Independent Electoral Commission MINURCATUnited Nations Mission in the Central African Republic CEMAC Central African Economic and Monetary Community and Chad CES Economic and Social Council MPECI Ministry for Planning, the Economy and CIEE International Cooperation CMC Mutual Credit Fund MSFP Public Finance Statistics Manuals CNJ National Youth Council OAC Community based organisation CNLS National Committee for combating AIDS OEV Orphans and other vulnerable children NSC National Strategic Committee OMC World Trade Organisation (WTO) NTC National Technical Committee MDG Millennium Development Goals COGES Health Management Committee ONG Non-governmental organisation (NGO) CP Steering Committee ONU United Nations (UN) CPJ ORCCPA Office for the regulation, control and marketing RCs Regional Committees of agricultural produce SCs Sector-based Committees PARPAF Project to support the implementation of forestry CSCP Strategic framework for consolidating peace development plans CTM Technical ministerial Committees PAP Priority actions programme CTP-PAS Permanent technical committee to monitor structural PEFA adjustment programmes PME/PMI Small and medium-sized enterprise/small and CVC medium-sized industry DAD Development assistance database PMEA/ Small and medium-sized agricultural enterprise/small and DDR Disarmament, demobilisation and reinsertion PMIAA medium-sized agribusiness industries DevInfo Development of information UNDP United Nations Development Programme DGB General Budget Department PNDS National Healthcare Development Plan DGPE Economic Programme Department PPCP Priority plan to consolidate peace DGPS Department of Policies and Strategies VIPC Very Indebted Poor Countries IPD Inclusive Political Dialogue PRI Industrial redeployment policy DPN National Policy Document PTPE Plan to prevent parent-child transmission PRSP Poverty Reduction Strategy Document (PRSD) PVVIH Person living with HIV EBC Consumption budget survey CAR Central African Republic CARSWFE Central African Republic Survey of Well-being DRC Democratic Republic of the Congo Follow-up Evaluation GCPA General census of the population and accommodation ECOFAC Central African Forestry Ecosystems SSR Security sector reform SULS/ Surveys of the living standards of households in urban SISE SRLS and rural environments SOCASP Central African oil product storage Company EMF Establishment of microfinance SOCATEL Central African Telecommunications Company ENAM National school of administration and magistracy SODECA Central African Water Distribution Company ENR New and renewable energies SPMP Public Contracts Tendering Department NPP National survey on poverty perception SR Reproductive health FACA Central African Armed Forces SRP Poverty reduction strategy FCFA Franc of the African French-speaking Community NSS National Statistical System SDF Security and Defence Forces NTS National Technical Secretariat FGT Foster, Greer & Thorbecke STP Permanent Technical Secretariat FLEGT Voluntary Partnership Agreement TGI High Court IMF International Monetary Fund TIC Information and Communication Technologies (ICT) FNAIJ National fund to support youth inclusion USD US dollar FRPG Facility for the Reduction of Poverty and Growth USGP Project monitoring and management unit GBV Gender based violence VIH/SIDA HIV/AIDS GLIN Global legal information network ZESCA Central African special economic zone PRSP 2 2011-2015 Table of Contents 4 Executive Summary 7 Part One Part two Socio-economic Context and Strategic View and Directions Profile of Poverty 9 in PRSP 2 31 1. Political and Socio-economic Context10 2. Strategic View and Directions 1.1. Political context 10 in PRSP 2 32 1.2. Socio-economic context 11 2.1. PRSP 2 - the vision 32 1.2.1. Results of PRSP 1 15 2.2. Strategic directions 34 a. Execution level of PRSP 1 15 2.2.1. Security and Peace, Governance b. Resource mobilisation for and the Legally Constituted State 34 funding PRSP1 17 a. Security and Peace 34 1.2.2. Implications for the design b. Governance and the legally of PRSP 2 19 constituted State 35 1.3. Profile and Determining Features 2.2.2. Economic Revival and of Poverty 19 Regional Integration 48 1.3.1. Measuring poverty 19 a. Situational analysis: the major a. Monetary poverty 20 obstacles and challenges involved b. Monetary poverty and the in reviving the economy 48 characteristics of the households 21 b. Growth strategy and associated levers 48 c. Non-monetary poverty 22 c. Promoting growth clusters 50 d. Subjective poverty 23 d. Development of infrastructure e. Perception of poverty by to support growth 64 the population 23 e. Regional integration and f. Minimum needs for adequate opportunity for development 70 living standards 24 2.2.3. Human Capital and Essential 1.3.2. The determining factors of poverty Social Services 72 in 2008 24 a. National education 72 1.4. Situation Regarding the MDGs b. Health and nutrition 76 in the Car and the Main Challenges c. HIV/AIDS 81 to be Addressed 27 d. Youth and Sports 84 1.4.1. Situation regarding the MDGs 27 e. Arts and Culture 87 1.4.2. Main challenges to achieving f. Water