World Bank Document

R iEST R I C T E D

,2II? ~ Report No. AF- 50

isrort was prepare' 'or use within rhe Bonk and its omlioted organizations | Public Disclosure Authorized Theydo not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing tneir views.

__ .~~~~~~~~~~~~~~~~~~~~~~~~~~~.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized THE ECONOMY

MALI Public Disclosure Authorized

September 13, 1966 Public Disclosure Authorized CURRENCY EQUIVALENTS

1 Mali franc (M.F.) - 1 CFAF-' 004 fTiU.S.

247 Mali francs = 1 $ U.S.

1 million Mali francs= 4L,051 $U.S.

5Q Mali francs = 1.French franc

1/ Franc of the African Financial Community which circulated in Mali until 1962 and is still the legal tender in most neighbouring couRtries. Table of Contents Page No.

BASIC DATA

IAPS

SUMAIARY AND CONCLUSIONS

I. INTRODUCTION 1

The Physical Setting 2 Political Developments 2 The Economic Setting 3

II. THE BCONOI 5

Main Features 5 Plain Sectors 5 Investment and Savings 9

III. FINANCIAL AND MONETARY SITUATIOil 12

Current Budget 12 Budgetary Pleasures taken or to be taken under the Stabilization Plans 13 State Enterprises 15 Mcrnntarv Svstem and nevelonments 16

IVT nAT.A1\JGE nR PAYM1TS 1TTRM1RNAT. DEDBT AN)D PRnSPET.GT 20

Past and Present Situation 20 The i4ediuxn Term Outlook 23 Long Range Prospects 2

AITNZY. - Production, P-prorts anrd Trlonen+ in the Principal Sectors of the Economy

STATISTICAIL APPEIDIX

This report is based on the findings of Mr. Billington's missions to Iali in October! 1963 and October 1964 and 7'f.f"e in Jte4 L965. DBQTr' TArPA

Area: 463,ooo sq. miles; 1,200,000 square kms

Population: 4,5 million (mid 1964)

Rate of growth: 2,4% Population density (per sq. mile) : i1 Population density, per sq. mile of cultivable 'Land: 23

Political status: Independent as part of Federation with Senegal - April 1960 Independent as Mali - September 19b0

Gross domestic product: 75.3 billion Mali Francs (1964)

Rate of growth: 2.5% p.a. (1959-64) 1.5% p.a. (1962-64)

Per capita: US$66 (1964)

Percent of GDP represented by:

Agriculture, Forestry & Fishing: 57% Mining: _ MYanufacturing: 7% Government: 11%

Percent of GDP at market prices: 1964 1959-63

Gross investment 12% 16%, Gross savings 2% 8% BRalance of nqvTnnnts current aCCount deficit 1IC 8% Goverrment taxation revenue 16% 10%

Resource gap as % of investment 84% 50%

Money and credit:

Conversion: 1 I' _ $0.004 I $ - 247 WM'

Re la ti on. b s" to'Jlr gemor.etary or custom. -area:. AsoitIe.e f' T.r. Feb.1966 Dec.1962/65(p.a.) Total money supply iP 19.97 12% Time and savings deposits MF 0.70 22% Lending to private sector 1/ i'S-19.39 32%

Cost of living for urban population 1956 = 100 1965 = 152

1/ Mainly State enterprises Public sector operations 1964/65 1959-1964/65 Government current receipts 17 33.1 billion 17% Government current expenditures MF 13.5 " 20% Deficit IF 0.4 " 1961-1963/64 Public investment expenditures IT 10.2 " 12% Total external assistance to public sector IF 7.1 " 32%

External public debt (in million US$) Past average 1964 Total debt 10', 126 Total annual debt service 5.8 7.2 Debt service ratio (over exports) 16% 20%

Balance of payments (in US$) 1964 1959-64 Total exports 3 million 1-1/2% Total imports -63.2 n 5-1/4% Net invisibles - 4.4 it -22% Net current account balance -30.8 " 7-1/2% Past average 1964 Groundnuts and livestock as rDroDortion of total exports 63% 63% GOross foreign exchange reserves I.5 2.0 (or 1 month's imports) (or 10 dayst imnorts) IMF Position (in US$ million) Past average 1966

Drawings 9.9 10.9

External financial assistance (in US$ million) 1960-1964 Grants 2// (1961/,6 -AO196/I 33.2 Loans 3/ 110.9

France 33.2 TICC'n I) p UAR 16.6 C-lana 13. People's Republic of China 7.3 Fed. Republic of Germany 4.

2/ For Development Plan only 3/ Largely on soft terms .~ )'jA L G E R I A

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-JUNE 19S6 SUINUARY AND CONCLUSIONS i. The limited resources and the geographical isolation of Mall, a land-locked country of 4 million people, with a per capita income less than $70 pea., provide one of the least promising natural settings for economic development in Africa. The country is largely desert, its i;conomry is based on subsistcnce a. riculture and its Lkain source of income has traditionally been the export of cattle on the hoof and groundnuts; cotton is a vigorous newcomer. There are no known mineral resources of conmercial siinificance and manufacturing is largely limited to the simple processing of local primary products. ii. Even before independence i'iali was relying upon the outside world for much of its resources and goods. Upon independence in 1960, the Government set out to modify this situation by establishing a centrally planned economy. exoanding the scope and number of public enterprises and launching an ambitious development program which would have been difficult to carry out even in a much more develoned country. Meanwhile, for political, ideological and economic reasons, Yali severed mTnst of thp. links whinh it. hni with its West AfriGan neighbors and Francej which culminated in 1962 with the withdrawal of Mali from the French supported West A.frican lnonetary Union - nlbli then ised a currency of its own. iii. Having thus added political and economic isolation to geogra- ph1,i c al -SsoJla la+ io n, 1`1 4encountered In-cra-ing.J-'.ali diffA.L ^ '+i i J out its program, in spite of substantial help from Eastern countries w.LUtLhJL w ichLi .L s t,arteU tJi. dL.LLr,J VViv VJ±o koJ= ba siL o blateralLf 1 arrangements. It resorted to large scale use of central bank borrow- | lngs an iI11U.EU U ElJu 11At:U.LUi1 btsLUUI 'M A U^t;s,e rL;1 :JU z O:L t:I yOU1_cJ. UV L EJULAot, its development program but also to provide much needed consumption goods. iv. These moves which resulted in little actual growth led to an acute financial crisis after llali had foregone the possibility of assistance from the Wesb African Monetary Unlon. T hi leU tXe GovenL- ment to approach the International Mionetary Fund for assistance in 1964. In order to qualify for a stand-by, which it obtained for one year starting July 1964, Miali introduced a stabilization program in agreement with the INF. In spite of determined efforts, notably in taxation, for the better part of a year, Mali found itself unable to meet all of its commitments; little was done to improve the situation of the deficitary public enterprises, Government spending remained high and consequently the agreed credit ceiling was substantially exceeded. v. Early in 1965, the Government initiated negotiations with the French Government concerning the various ways in which France could provide additional assistance, including the possible re-entry of I'Mali into the West African Mlonetary Union. In spite of agreement on most technical matters, these discussions were interrupted in lvlay 1965 and adjourned sine die. There is no doubt that the long run solution of Mlalits economic and financial problems are dependent upon the strengthening of its coiTIe rcia 1 and institutional links -with the outside world and in particular with neighboring countries which 14ali vitally needs as a market, as a s Juppler,as a provider of aid, or simply for access to the sea, and probably on some form of regional monetary association.

vi. In December 1965, after consulting with the International Development Association, ^iNali embarked upon another set of measures intended to solve some of its most pressing oroblems. A number of steos have already been taken to promote production and exports, particularly of groundnuts and cotton, to increase taxes and tax collection and to keep current and investment expenditures within the limit of available resources. The Government has decided not to embark on a second development Plan for the present but simply to complete the projects already underway and better utilize existing capacity. Never- theless credit creation has remained excessive pending much needed structural improvements in public finance, public enterprises and other fields.

vii. Public savings seem to have improved sligh,tly in the past six years, partly as a result of the Governmentls efforts at forced savings and the results of the recent stabilization measures. Further progress to achieve a modest budget surplus will require greater efforts and some rethinking of basic fiscal and budgetary policies. These are likely to prove difficult if not impossible without outside technical assistance, A larger net surplus from some 20 state enterprises which cover practically every sector, is possible and the Government seems determined to improve their situation and is now embarking on a program of technical assistance to set the main deficitarv bodies on a sound financial basis.

viii. As a result of past efforts and of the recently increased emphansis on production and exports, the medium term prospects of the country are moderately good, especially for cotton and gr-oundcnutse An impor-tant obstacle to this development however, remains the lack of incentive provided by the scarcity of goods on which farmers can snend their moneys Total export growth of as much as 60% over the next five or six years may be possible, However, other sectors are likelv to grow at a slower rate so that total growth of only about 4% annually seems possible between 1966 and 1970. Such a growth rate colld be obtained with a lower level of investment and current public expenditures than has been experienced in recent years nrovided efforts to imp.rove the utilization of present capacity are intensified.

ix. Over a longer period, prospects appear less promising. Export growth is 'likely to become more difficult by the earl3y 1970s and, given the lack of readily available investment opportunities, and their slow vielding natirej the maintenance of a reaso.nable growt h rate would probably become very difficult unless technological developments permit the exploitation of Mnownineral resour-ces or new resources are discovered. In any event, external assistance on a large scale, severely concentrated on productive projects, supported by appropriate technical assistance, will be essential. - iii -

x. Investment and consumption needs since independence have been largely met by incurring about $150 million of external debt which now confront the country with an anmanageable debt servicing problem. Service on medium and long term debt alone reached 20%o of export earnings and the same proportion of government revenue in 1964 and payments due on the large ($24 million) short term debt to France could not, for the most part, be mete Yioratoria have recently been obtained from Eastern creditors and West Germany and re-scheduling negotiations are planned. As for short term debts to France, Mali enjoys a de facto moratorium, since France has not been pressing its claims, but formal rescheduling appears to have been postponed for negotiation within the framework of broader discussions between the two countries.

xi. Given Eali's present inability to service its debt, even if gensrnfls resnheduling is obtainedj it is unlikely to generate surpluses of the sort required to service further conventional debt. In fact, I1ali hns, as part of its stabilization efforts, undertaken not to take on a.ny such debt save in exceptional circumstances. Thus, practically all capital inflow rin ++th next+ feirw yeas " b i +h form of-re gra++s-4-n or-- o very easy terms, THE ECONOMY OF MALI

I. INTRODUCTION

1. Mali is perhaps unique as an underdeveloped country in its e-xperjPen slc inqinepend The country, with its harsh rlimatic conditions, is poorly endowed with natural resources, land-locked and with difficilt and e penrsive co-.unications,nr.otabl" to the ocean. Eronomic activity is still largely organized through the traditional channels, o-perati4 ng nacross ext+ens-A v land fr ontin+4 ers, and i nv1esm-etm ent no rtupnlies of interest to foreign private investors are practically non-existent. These factors l;mit the possible rate of development Andr any circ+nnc

0 4: _ _-_1 4 A. - I-_ 'A_ -A_A -- l+_orrh !n1; lr 1F and economic isolation to geographical isolation. In 1962 it withdrew Pro4.r omI theI~ r1 Mor.etar1y TTL4.yLLULTULI-on Utuo -whichIL LIa'll ± U4.±ofL i-L L E1W-LAnch-0speakinr£4.- Z LLIJtdflT.1 --WestU 44.AP AfricanL 4 -LL neighbors belong, with the exception of Guinea, thus largely severing couxiiercuVLal links with its. oifI-Uer associates. Th1e devie±1l0imlentV o.f Ul.rade relations through bilateral arrangements with the USSR, Eastern European countri2es and hnIna compensated fo' this only to a minur uegee adiU resulted in a heavy debt burden. At the same time, the Government has attempted to establish a centrally planned economy with an elaborate development effort involving government initiative and action throughout the economy,which would have been administratively very difficult to carry out by a developed country with an experienced governmient service, even had unlimited finance been available. However, financial resources were less than before. As a result, efforts to achieve rapid economic independence and growth along with basic structural reforms 1.Lhave given rise to serious financial difficulties since 1963, whilst little 'roiTi-2. w1aS actually obtained.

3. Its financial difficulties led the Government to apply to the Internationa:L Monetary Fund for a Stand-by Credit in early 1964 and, in July, the Government introduced the main elements of a program of stabilization drawn up in consultation and agreement with the Fund. Despite real efforts for the better part of a year, Mali proved unable to carry out all of the provisions of its agreement with the Fund. Since then, the Government has, on its own, taken or planned furtht-Žr measures as part of its continuing effort to improve the economic and financial situation.

4. The attempt to "go it alone" by a country with Mali's handicaps has proved very difficult. The Government can, perhaps, be reproached for not recognizing limitations imposed by nature and its own search for a degree of independence which many soveirign nations do not have or seek. On the other hand, Mali has shown unusual political stability and has demonstrated courage in generally avoiding prestigious projects from the start, in attempting to carry out the RIF program and its recent and continuing efforts to carry out the new one. There is no doubt that the Government hae learnt from its experience and has consciously sought to improve on the nast and to end its isolation. Negotiations to this effect were held with France for several months in 1965. These have been interrupted but efforts for their rP,mptiTrin are being made. -2-

The Phvsical Settina

5. The Republic of Mali is a land-locked country in West Africa lying to the north of the equator at an average distance of more than 500 milaq frotm +.he seaand coeuring an nre2 of 1.2 million sqnare kilometers (465,0oo square miles). The climate is largely desertic and sub- tropical. Th.e populationi is estmated at 4i.5 m.illion, including so.mTn 5,000 non-Africans, with an annual rate of growth of about 2.4% per annum; less than 2% of the total, or b rely 70,000 are in w -rra-rningeva.ploy- ment. The average density of population is very low, at about 3.5 per square kilomeer, a.nd m.ost of %JJ-eUt~ puationyIp J. VU.L LI .t.is -WJI- ~LAV4.nra V~J inL-S theVL±'. souAhw-st,V-LUf* -- along the rivers, and in particular, along the Niger. The rest is widely

2s ~~~~~~~~~.WIC~v 1 VtSIA - %_CLJ _.JC.1 LACL C, JJ .P C& .VLI_ sO U l.L;C A _ Ll at 130,000; the second largest town is Kayes near the Senegalese border, withW.L ULAL1 a.jjU.QU0~ populatior. ofabouCUUU (AJ,0'JIJ.rI000 Mal£id.LL providesAjJ.Vi4 I es~ thelaL.LeW.lJ-Ieen li- beQween theUl1jIe Sahara desert to the north and the forest regions of the south. It is the meeting place of Alrab and Sudanese civilizationa, of nolmlad and falmier, and of the white and black races of Africa.

6. The country is poor with a dry, arid climate and little rainfall, characterized by long distances and limited and difficult communications. There are quite rich deposits of bauxite and some of iron ore but, due to the technical problems of recovery, and long distances from the sea, these do not appear to be commercially exploitable for the foreseeable future. IThe low subsistence level of production is dependent on a limited range of agricultural products, livestock and fishing. The soils are in general poor, and erosion excessive. Agricultural activity is critical- ly dependent on the timing and intensity of the single rainy season between May and October, and on well timed and sufficient, but not excessive,flood- ing by the two large rivers, the Niger and the Senegal, and their tribu- taries. During the rainy season, the Niger forms an inland delta, inun- dating an area of some 300 km in length and from 100-150 Ian in width, which has formed the basis for a major, but largely unsuccessful, irrigation and settlement scheme since the early thirties.

Political Developments

7. The French Sudan,which formed part of the former French West African Federation, joined with Senegal to establish the Federation of Mali in 1959, which obtained independence within the French Community in June 1960. Geographical and ethnical disparities, differences in degree of development and in economic potential reinforced political differences between the representatives of the two members of the Federation and these culminated in its break-uo in August 1960. Followiing Senegal's withdrawal, the Republic of Mali was proclaimed at -the EKtraordinary Congress of the Union Soudanaise (of the Rassemblement l6,mocratinue Afri- cain) called by the Party's Political Bureau in September 1960.

8. The rupture of the Federation was followed by a break in the diplom.atic and com.ercial relations with Senegal and the closing of the Dakar-Niger railway to traffic between the two countries, thus depriving MaTli of its prir.cipa access +o +he ocean. TPh4 - r TLMa +o' -- I, fo- - 3 - alternative outlets to the sea. Mali had to acquire a large and expensive trucking fleet to link up with the transit facilities of the Ivory Coast and Upper Volta. The possibility of a rail link between Bamako and Kankan (Guinea), the nearest terminal on the railway to Conakry, was investigated. Following Dolitical changes in Senegal at the end of 1962, by which time Mali had developed alternative routes to the sea, the railways were re- onened to international traffic in Senteiber 1963. and friendly relations between the two countries have been firmly re-established since.

9. Mali now maintains cordial relations with most of its neighbors. It was a me.ber of an idenlogrica unionw-Tth Ghana and Guine), which scnrneev became effective. It has taken an active role in cstal)lishing a committee representing the Governments of the four riparian countries of the Senegal river (Guinea, Mali, Mauritania and Senegal) whose purpose is to foster, dirct and coordinate studies and mnvestments in the Senegal river basin. The United Nations Development Program (Special Fund) and severa.l U.1N1 agencies are a'lreaduy assisting in 'long 1-ern, studies of" water and power resources.

10. The quality of Mali's relations with France has fluctuated widely. At first, the relations -were cool, o-wing to MIali's association of r'-ance with the Senegalese decision to withdraw from the Federation, the develop- mernt of trade and aid links with Sino-Soviet countries, and Mali:s creatuion of an independent currency in July 1962. Since then, relations have improved to the point where negotiations have been held concerning the possible entry of Mali into thie -es5 African 1,obetary Union or som.e otl1er lind of institutional association with France which, along witn other help, would greatly ease Mali's difficult economic, financial and monetary situation. These negotiations have not yet yielded any concrete results. Despite fluctuations in cordiality of relations France has, since independence continued to assist Mali on a large scale in a variety of ways.

11. As a former dependent territory of an EEC member, Mali was eligible for and accepted associated status with the Common Mwrket and still benefits from the general tariff preferences and substantial aid provided by the European Development Fund .

12. Mali is ruled under a presidential system. The sole political party, the UJnion Soudanaise, exercises a dominating role through its political bureau which is elected at a biennial Congress and is collectively responsible for interpreting and enforcing the Party's policy decisions. The President of the Republic and head of the Government, Mr. Modibo Keita, is also Secretary General of the National Political Bureau. Despite indications of tribal and regional tensions, especially in the North, any coherent and organized opposition seems to have disappeared. The close association between the administrative structure of government and the political structure of the party, which reaches out to every village, provides an effective machinery for imnIlcmenting the Government's decision..

The Economic Settin2

13. The present state of econom i develorment of Mali is determined in large part by its limited resources and its role within the former West - 4 -

Afr-;can FtedUt!.LCionU asO CZ .-kL1arkt- 1-Jt4erl and to the1 i-sri a' and comue-Jal A .±j1Ir~~djU1 d ~Ii1± ,I"LLLU ±Ld.LLIU UIJ U±LU .LLLAA VL.JLdj ~LL4 i UIkJOA center of Dakar and a potential food granary for the coastal areas. This role resulted in a structura1l deficit in Mali' s balariCe cL pUY1iu,eti wLUI other members of the Federation and with countries outside the Federation which was covered by transfers from the surplus members and rrance. Private enterprise played a very unimpertant role in financing investment and the capital inflow was almost entirely from official sources. The traditional sector of the economy played and continues to play a very important role in Malits conmmrcial transactions with neighboring countries.

14. The withdrawal of Senegal from the Federation, and the closure of the rail link, was followed some two years later by the withdrawal of Mali from the West African Monetary Union l/. These developments led to higher transporteosts, the loss of export markets in neighboring countries, and the virtual disappearance of income from migrant labor. The adverse effects of these increased external costs and loss of income on the balance of payments were made worse by the gradual evolution of the Government's attitude to the private sector and its political philosophy, increasing the capital flight and pressures on the national currency, all of which compounded an already serious deficitary position at a time when 1hiali had foregone the possibilities of automatic assistance for balance of payments purposes, which would have been available to it as a member of the West African YMone- tary Union.

1/ which now includes seven West African countries (Dahomey, Ivory Coast, Mai tan a, Niger, Sen.egal, Togo anrd Tpper Volta), whrich share a conmemn Central Bank (BCEAO) and currency (the CFA Franc) to which France guarantees UrLi.4 t e4d cOnver t ib-J. liv4ty -1,O-.t to cer'-in qui,- aatomaie controls ov- credit management. II. THE MONOMIY

Main Features

15. 161alits economy is based almost entirely on traditional agriculture, livestock and fishing whiech occupy about 9G/J of the people although accounting for barely over half of GDPO olst agricultural and pastoral activities are of a subsistence type and production for the market is of relatively small importance. Exports are essentially made up of cattle on the hoof, dry fish, groundnuts and more recentlyr cotton. About half of the exportshowever, are handled by the traditional sector and are not recorded, This is made easier by the extent of Mali's territoria:L borders and the quasi impossibility of policing them adequate- ly. Also there is at present much incentive to srauggle since it is an easy way of having access to foreign exchange and consumer goods which are very scarce in Mali indeed. The weakness of Mali's currency is a fundamental factor in Mvali's economy. This weakness reflects a structural imbalance which has always existed between imports and exports. At this time exports still only represent two-thirds of imports although imports have been cut to the bare minimum and efforts have been made to promote exports.

16. Another fundamental feature of .MZalits economy is the importance of the public sector. Public enterprises cover practically every aspect of economic activity. This prevalence of public enterprises is in part a legacy of the past: the Office du Uviger (alarge settlement scheme), the railwav and electricity organizations have always been public. It is also a matter of political philosophy and deliberate choice arising in part only out of the failure of the private sector to provide a number of services deemed indispensable by the Government. Some 20 public enterprises emnPToinn ahouit l5,OOO peonle exist in the country. Although on balance they have been a source of public savings,,many of them are unpofteand havre been a mjo cause of 0c trn't deficits.

17 The combination of the Scarcity nf' resojzrGeS and inadequaite management of these resources has led to overall stagnation. GDP anoun- ting to about MNT 75 billion in 1964 has barely grown in financial terms since 1962 and probably declined in real terms, This is, of course, even more 90 for p r capiva GDP, hch was about $66S 0'4 e inJJ190 .The contribution to GDP by public enterprises has increased from CFAF 2.6 billi_on in 1959 lo a pea'k of 'I B in1 aln +i'oo 1-v if.2 billion in 1964. In 1964, agriculture, forestry and fishing represented ;,4/.54l- V.1.of estiiatLjkesimte-shil L% Ul-GD n"eWYIJf .LL ser-vices represent1 ed a tllir-dU ,JI.L±LL V.1of .Lt.it- ±reflecin _ S.LLJ6 the importance of the cormnercial sector (15%) while manufacturing, construction and production of electricity only represenlted 12p of GDP. iviain Sectors

18. The principal sectors of the economy are described in some detail in the Annex. Livestock is one of the most irnportant resources of Mali. In the north it exists in the form of a nomadic activity which follows the supply of pastures and rainfall. In the south livestock is regarded mostly as a status symbol and pasture land is not economically utilized. The livestock population is represented by a herd of some 4 to 5 million cattle, 10 to 12 million sheep and goats, horses, donkeys and camels. According to estimates of the animal husbandry department over 80 thousand head of cattle are exported annually and about 120 thousand are slaughtered. representing a conmaercial exDloitation of some 5% per year. In the case of sheep and goats,exports are estimated at 170 thnusand and some 600 thnusand are slaughtered nr an offtake of some 8 to 9% per year.

19. Exports of cattle on the hoof represent a substantial (17W2 to 3 'hi I I i r%n) bhii+_ Il ynrr r soi-et rof ircome Tai in tuirn is used to bring back various consuwer items in short supply in Ifali or for illegal

Five slaughter houses were planned which was far in excess of possibi- n 4 ; nn v y 4 hav be A n om,A Aete A _4 A A nBaXako n ao n r 4 in Bamran L. . . tL. JJL IJWV 1=V' Ua .I U WcI.UIIA*J Id.V* L A0. *$a UtJAj J Lt % * is the operation underway. MIeat exports handled by SEPAM 1/ which are a Uef-iniLJ±Ut pJUQD.Lb 'iLty are Lha,.1jJeUd by a UUtI1ULJU1iI of prbeL hiav e to be solved before further progress can be made. Herdsmen are reluctant to d-rive the±u cattle long distances to obtain Mali francs when they could at least as easily obtain payment in convertible currency and import goods simultaneously. Refrigeration and transport difiiculties represent serious additional obstacles while the quality of animals and meat limit market outlets to neighboring countries.

20. Fishing essentially in the Niger River is an important activity and exports of dried or smoked fish by the traditional sector probably approximate IIF 15 billion a year

21. Groundnuts were until 1964 the principal export crop but production has at best remained practically unchanged during recent years amounting -to approximately 110 thousand tons per year unshelled. Of this amount some 73 thousand tons were marketed in 1964, equivalent to about 50 thousand tons shelled the balance being taken up by subsistence consumption and for seeds. Out of the 50 thousand tons of shelled nuts, 43 thousand tons were exported versus 56 thousand tons in 1959 and about 7 thousand tons sold for local consumption. In 1965 marketed production and recorded exports declined to 47 thousand tons and 37 thousand tons respectively. The decline would have been worse had it not been for disposal of stocks. Stagnation of groundnut production and decline in yields and exports are mainly due to poor cultivation techniques and lack of incentive for farmers. The price paid to them, XF 13 per kilo was comparatively low and goods on which to spend their income in I5ali francs very scarce. The Government has recently embarked on an emergency program for increasing the output of groundnuts by distributing fertilizers, insecticides, improved seeds and small agricultural implements at cost to the buyer. Comnrehensive technical assistance in the management of groundnut

1/ Sacift6 dcExportation des Produits Animaux du ISELai. - 7 - production is being secured for the pilot area of Bamako from the French BDPA 1/. If the experiment is successful it is to be extended to other areas.

22. In addition,the Government has recently taken a number of steps which should somewhat improve the position. The price paid to farmers for groundnuts is to be raised from 11F 13 to iiF' 16 per kilo for the 1966/67 campaign. This increase is to be entirely financed by reducing charges of intermediaries, Also the intake of the oil refinery at Koulikoro which has capacity to process 30 thousand tons of unshelled nuts is to be limited to the oil requirements of the local market, i.e. about 10 thousand tons a year as long as it is unable to export its production. Construction of another oil m-ill at Toukouto for which plans exist is postponed indefinite- ly.

23. The Government's current target is to increase output to 210 thousand tons bv 1969/70 as compared with an estimated actual of 115 thousand tons in 1964/65. This target seems far too optimistic but it should he possihle to inrease outnut to around 150 thousand tons by 1970. This should make possible an increase in the exportable surplus of shelled nuts to rn thousand tons by that vear= No mTajor difficlulties should arise in marketing such quantities since important markets exist in the Sino- Soviet countries which presentlv ahsorh Almrst ql- eynorts= Prices in neighboring countries are supported by France and exports to other countries were bnsed on the French support price. 1TLowever- recently the world9 mTrket price has exceeded the French guaranteed price which is to disappear grad-l,1y -inranccord-ance --t +the pro of' the Y+an^nrl Grn%rnn+vetion regarding trade between EBC members and associated countries. Prices Ahbt ainQd zFroim SzLn_;A o~- ^sDQIou-+ t; .r -411 +1h"noP^_n In -N;n Iesrh 1u+ t negotiations each year. These negotiations may be affected by an expected Ldrop in -vwor.Ld II LIs.Lics.pLrA-Vi

2L4, PL1UUUU ±roduU[1I ofUJI. UUUULt ULnUde ir on L)y tIhe oLLU eU±LiLsLeU Office du Niger increased from 5 thousand tons in 1960/61 to over 9 thousand 4.~ n ~1 I n4/n X/1. .1__ -v2- m4- 4 b_v. _ nA no1^_.4i- 4- _A .uons ±LJn U4o r.XVUuiJ.LoFJ/ oUs. thwi ULIA X fe. 1 to 2 vli;u eosarj ¢JUULJ. .1.iJ 1965/66 due to poor quality. axpansion of production has been limited by the domestic need for rice and subsequent shifts in acreage un-der each crop. It has however been decided that there would be no further replacement of cotton by rice and that production from the Office du Niger should remain around 750C tons a year.

25. By far, the largest share of cotton production and exports now comes from the areas of Sikasso, Segou and Bamako in the south wnere dry land cultivation has been organized quite successfully and at a much lesser cost by CKDrT 2j. rNarketed production most of which is presently exported has increased7from 3 thousand tons in 1960/61 to some 21 thousand tons in 1964/65 bringing the total for the country to about 35 thousand tons. Total output is planned to reach a figure of some 80 thousand tons by 1970 of which 52 thousand tons would be exported. It is hoped to obtain this

1/ Bureau pour le Developpement de la Production Agricole. 7Z/ Compagnie Franoaise pour le D6veloppement des Fibres Textiles. - 8 - quite spectacular result by some increase in acreage cropped but mostly by improved methods of production including the distribution of seeds, fertilizer and continued demonstration and supervision in the use of credit. Suich targets seem possible although there are signs of production leveling off and even declining in 1966. Export prices are expected to remain fairly constant at a level of about IMF 1415 thousand per ton, 26. The manufacturing sector is still very rudimentary and production is likely to continue to be restricted to the processing and simple transformation of primary products and the manufacture of metal furniture and similar goodis for 1oca1 consumption. Total outplit has grown at a very slow rate of about 1 to 2% per year in recent years. Fbllowing the expected rise in cotton output. atn+. la a est imrprovement may he enpected in the production of textile products for which an investment is planned.

27. A rather important industrial investment in the country is the publicly owned oil press at ouloro built w-ih Gean -na r.d wT1se annual intake has been limited to 10 thousand tons yielding about 4 thousand 4U. UJ ± .U U.J. L.L UIAJZ ." LJUIJL.LLO ±. .dJJLL JO.UJ. LJJf1nl.A IL tonls oIL cr-.LU'e oil 'or domestic consumption . A canning6 flact-or QC1A1 built with Yugoslav aid is having somle financial difficulties while a cigarette and match factory built With Chinese assistance are operating profitably. Industrial development in rali is proving very difficult since thI-e local riEirKet is r-iamll and Uali' s Uoiplarative advantages or- world r,-rket very few indeed. 28. The total installed electrical generating capacity in Mali is about 17 thousand kva (1966). Of this, 3 thousand kva is hydro capacity and the baLance diesel plant. Total generation in 1964 amounted to 25 million kwh and has increased at an annual rate of about 20% during the last seven years. Consumption is about equally divided between industrial and comnercial users on the one hand and households and public lighting on the other. YIali has substantial potential hydroelectric resources; the principal possible sites for development are located on the upper reaches of the Senegal River including that at Gouina which is now under study by the UNDP as part of the river basin development studies. However, in the absence of any new large scale power consumers,the potential capacity which coull be installed at these sites far exceeds the demand for power in the foreseeable future. A small hydro project has however been construc- ed on the Niger at Sotuba near Bamako. One unit of 2500 kva is in operation and a second unit is to come into operation soon. The cost of this project is stated to be li'2,5 billion and it has been financed by France. 29. Power generation is the responsibility of Energie du Iiali,a mixed company owned 55% by IIali and 45% by France. Total revenues in 1966 were reported to be IIF 579 million and profits I'IF 60 million, The company's cash position however was difficult because of large arrears in payment by government consumers,

1/ Societe des Conserveries du ilali. 30. Apart from a negligible volume of gold and some salt mining none of the known mineral reserves of the country presently appear commercially exploitable.

31. Comrerce has virtually become the monopoly of S01MEX 1/, the state trading agency wnich is the official trader for imports ana sale of 11 basic items, exports of groundnuts and trade under bilateral payments agreements. Profits of SOMLEX reached 1i.1 billion in 1963 but could certainly be greater with some improvements in management and distribution policy and efforts in this direction are being made. Cereal and fruit trade is handled by OPAM 2/.

32. Transport represents 5% of YMalits GDP. The transport system over a country more than twice the size of France is not well developed and the economy is handicapped by high transport costs. The system consists of: (a) a 642 kilometer meter gauge railway connecting the Niger River and Bamako to the Senegalese line to Dakar (another 586 kilometers). ]i'ali traffic on the railway was 108 million ton kilometers in 1964/65. This line is the most direct route to and from the sea for much of Miali's trade. When traffic on it was interrupted (1960-63) iiali found itself in a very difficult situation and the development of al.ternative transport means have proved very costly; (b) a road network of about 11 thousand kilometers of which 500 kilometers are asphalted and. on which a state owMed trucking company (RT1M) 3/ created during the emergency situation referred to above orerates at considerable loss. These roads link Mali to the Ivory Coast and Upper Volta and hence by rail to Abidjan; (c.) Air Mali which serves; at considerable cost, internal and international routes. While the rate of occupancy is good on the internal and charter ro utes (to M;teca it is gepynerlly lowT. on Jn+ternnAtir)n onnes (d)~two stretches totaling 1800 kilometers on the Niger River which are navigable half the year and which linlk -Ba7..kothe\neany+.Ith raLha a ana and on which barges are operated by another public enterprise ACMi 4/ which combines th,ese activi+ties w.ih induistrial ones.

33. n,-pia+e un ir.m n.aent b,s never pla,yed a very44--orta part in the development of liali, averaging less than CFAF 300 million per year uap tou 1'IKthe earlytiv nens,.YX7,)%wsswo rising-L sJt towv ctvabout uw threeVLI -four..4tLVvA-JA11 as OofP | aatbiio:n u. | Lo ulC1rmx A peHvss year in 1959. Private investments have been made in the traditional agricultural sector by African enterpri ses but thls aga'in has been only a fraction of the already small investment by foreign private enterprises.

34. Prior to 1960, investment from external public sources, entirely fro,,. Vrcalnce, has-b-een.susatl osbyCu3. .sna urn .L.LJAh ddJ'l) UdC&)O~LV UVUauLJU.LcL; PV!JU~.L U±y t.J )U.1.J UL ILQLL[ dbt UW.WVt&JU prices. Of the total involved, possibly CFAF 12 billion, or 40h%, has been in the Office du Niger, some CFAF 6 Dillion, or about 2ev,, in the Mali section of the railway, and the bulk of the remainder in the development of agriculture, roads and social services. The domestic contribution to the l/ SocieteM laliienne li'mportation et Exportation. 2/ Office des Produits Agricoles du Hali. 3/ Regie des Transports du Mali 1T/ Ateliers et Chantiers du M5ali -, r

total of official investment has been negligible, The share of gross investment in GDP was estimated at 9 in i956, 8% in 1959 and 13% in i196.

35e In an effort to improve ivialils self-sufficiency and productive capacity, the Government launched a first five-year development Plan covering the period 1961-a965. This provided for a total investment of MF 78 billion over a five-year period or an annual average of 1W 16 billion per year, roughly four times the pre-independence level. About half the total was earmarked for investment in state enterprises. In fact, the total rose from ]1F 8e5 billion to some NIF 10 billion in 1964/65, which represents an almost stable proportion of GDP of 12-13%, Most of the investment has been made possible by a substantial inflow of official capital whichi has increased from vIF3.8 billion in 1959 to M-F 7.8 billion in 1964. Domestic savings, on1the other hand, have tended to fall after reaching a peak in 1962. Net savings by Government throughout this period have been either zero or negative, and Government enterprises began to make a net contribution only in 1963 and 1964. Revenues from taxation represent about 17% of GDP and given the poverty and structure of the economy, there is little prospect of improving the tax base much above the present level.Mos'.- of the savings have, therefore, been made in the private sector of the economy and chiefly by households. The increase in 1962 reflects the substantial monetary inflation in that year which did not have its full impact on demand until 1963 when savings fell signil'icantlv-

YP1ThIMTRT OFN rMT n DMO.TSPTIG PPRnT)TTGT ( in billions )

lIali Francs

1959 1962 1963 1964 1964

Government consumption 7.8 12.5 14.4 14.9 18 TL) oU iLL &LI _.e..Li_ _ : ...... e ( A.'~ '.A ,. Investment in Government 2.3 3.4 3.6 3.9 5 Tota.l±UDL4 i,ivestL-I e b1j t_LiL,Lwn 5.6;b2.U 9.1gJ. 9.80. lo.±U'I 12OV.I-1 Plus export of goods and services 9.8 10.1 9.7 11.1 12 Less imports of goods a-nd services -12,3 -15e2 -17.0 -18.8 -20 Gross domestic product 66.5 7209 74.8 75.3 100 of wnich: Plonetary sector 4uo7 48.3 67 Subsist, sector 25.8 27.0 33 Savings and Investment

Gross Investment 5.6 9.1 9.8 10.0 Net borrowing from abroad 5.3 4.9 7.1 7.6 Domestic savings 0.3 4.2 2,7 2.4 Government savings -0.9 -1.2 -0.9 - o.b Public enterprises -0.3 - o.6 0.8 Private savings 1.5 5.4 3.0 2.4 - 11 -

36. The initial financial imbalance in the icali economy has been further complicated by the over-ambitious development Plan, and the lack of basic information and prelininary feasibility studies on prcqcts undertaken. The pattern of expenditure of the plan appeared to be relatively realistic. 25% was to be invested in agriculture, 16% in industries, 22% in road and transport, 9%o in river works, dams and other infrastruc- ture, 81 in a nining survey and the balance of 20% in public administration and social services. However, the Plan overlooked the slow yielding nature of the investments proposed even in the productive sectors, and the long period necessary to obtain any sizeable contribution to export earninps and (ThvernmTnt rvsenue. Tn addition, the key investments in industry were undertaken, frequently at the lender's or supplier's initiative- nnt nnly uthout adequate studies of the prniects themselves but also of the market prospects on which the schemes depended. This is parti- e~~¶,1~lT'1rT tu p o P the.fH me2t arindrlmi+. nil - and food canninn nriprts on which a great deal of reliance was placed.

37. The Government recognized the weaknesses of its first Plan and the .mi,stakes ,4ch have been. made and reduced thue exvennr;+ io onv project which were to be financed from domestic resources, from over i'F 4 billion 1.4 billion in 1965/66. It was intended to delete all projects which would notLIJu4b1e LJ rap,'dlyJ. 0.JanLJ%L Ardcie kA.L.LJ.d-Asuch ecl kUJ.JY L1J'..LU%AUk .LVV QW-LI± C"~ 11UUQ~.LLJr,housin CLLJ~andoter-- A VVIAJJ.~ h. J.O.J44oia services, and road construction, and to restrict new projects to be fi-anced do.Lestic al1y- to Iu-noet whLiC.II1 wo-uldWOcUh an:A early±%LV cnriAUbLUL1 to increased output. Unfortunately, the Government is already committed to proceeding with a.n-uffber of loow priority and doubtOfUul proJects financed for the most part from abroad, which add substantially to the external debt buurder, and finds it impossible to limiti education expenditures. Moreover, too much reliance is still being placed on. direct contributions from state enterprise resources and central bank credit, and too little attention is being paid to the concept of an overall current surplus from the public sector as a whole, including all state enterprises. In view of this situation, the Government has decided not to embark on a second Plan, ant to limit its action to completing projects under way and to better utilize existing capacity. - 12 -

III. FITANCIAL AND riONETARY SITUATION

Current Budget

38. Since the creation of an independent currency in 1962, iMali has hau no ioreign assistance to finance its current budget. There [ae however been substantial amounts in wages and salaries paid by the French and other governments to technical assistance personnel, particularly in the fields of education and civil aviation. This assistance, which has totaled approximately IvjF 1 billion per annum since 1962, continues to be excluded from the budget.

SU1M'ARY OF MALI GOVERN1MNT BUDGETS Billion Mali Francs (estimated actual) Central Gov't Current Budget Total Budget Surplus Surplus Receipts Expenditure Deficit Receipts Expenditure Deficit

1958 5.42 4.54 +0.88 6.28 5.94 +0.34 1959 5.89 5.34 +o.55 6.70 6.28 +o.42 1960 6.64 7.66 -1.22 6.44 7.66 -1.22 1961 8.79 12.09 -3.30 8.79 12.09 -3.30 1962 9.78 13.42 -3.64 9.78 13.42 -3.64 1963 7.79 9.69 -1.90 10.94 12.67 -1.73 1964(6 mo.) 3.86 5.61 -1.75 5.98 7.11 -1.13 1964j65 10.52 10.53 -0.01 13.07 13.45 -0.38 1965/66 1st quarter 2.16 2.50 -0.34 2.43 3.05 -o.62 Cumulative deficit 1960-62 -8.16 Januarv 196i-March 1966 -5.17 't 1960-Mkarch 1966 -13.33

Financing: 1960-1962 Short-term advances from French Treasury +3.05 Use of deposits of postal checking system +2.51 Centvnl Ba~nk eredic-t +3 ,00 Change in cash balances (increase -) -0.40

Cumulative deficit January 1963-March 1966 -5.17 rC.n~ n4- nz~+ r- n4mc n-P I- r4ino q% -on r tInr rarnmon~.+50 C>nge ir. net cl;sof banking sytmon -vr..e 5o Other sources +0.11

Source: .Dat.a s upplliied bLJ t1VJe El authorities.d.LU - 13 -

39. r.s long. as iiail reimained in the CF31; EIranc none, bud&et deficits were covered essentially by the French Treasury whlichj provided over MHP 3 billion in reirabursable, but not yet reimbursed advances. Since monetary independence, -the Central Dank has directly, and indirectly through the postal checking system, been the ,nain source of fun-ds for this purpose.

40. CGovernment revenue relies heavily on indirect taxes, particularly import duties and taxes on production and turnover. Since independence, the rates and basis of practically all indirect taxes and particularly those on imports have been increased sharply several times. At present, the average rate of tax on imported goods is over 50p%. There has also been great improvement in tax collection. In recent years, inport and turnover taxes provided 66% of total government revenue, direct taxes 18% and all other revenue about 16%. This heavy dependence of government revenue on imports has created serious budgetary problems for Mali, in view of its very difficult balance of payments position and the need to drastically reduce imports.

),1- Since 1960. the Government has incurred not onlv an overall budget deficit of about i'F 13 billion but also a significant although decreasing cuirrent deficit. This has arisen largely as a result of the ranid expansion of government expenditure on administration, foreign representation and defense, com.bined wit.h tih failiire of revenue to) cnrnannd as qntTh.inted_ Although new taxes have been introduced and existing tax rates increased to relat;+.e -raly-r 'hige,h 1 c.vrol. revenuespTf haveri no+t provlreTdr -tch prnoc expected. There has nevertheless been significant iriprovements since 19652, -lue to thne a-usteri-y Cne-'u- -lopte- by th- GCovernnn-u-- +- +est+ric+l,. growth of expenc'iture and th.e continued increases in the tax base.

Budgetary Pleasures taken or to be taken under the Stabilization Plans

42. The first stabilization program introduced in July 1964 by the r.li Govers-rmnb in agreement with thle IPI, provided for a numb-er of ,,,easures designed to improve the financial position of the central government by checking the growth of expenditure and increasing revenue by a further AT 2.2 billion. These included:

(i) an "exceptional contribution", or special levy, amounting to 10% of all wages and salaries;

(ii) an increase in existing turnover and services taxes ranging from 5% to 20%;

(iii) an increase from 35% to 50% in the existing tax on profits

(iv) measures designed to reduce expenditure on personnel, by restricting recruitment and enforcing earlier retirement, and to reduce expenditure on supplies and material by 10%,/. - 14 -

L3. The budget for 1964-65 provided for revenue and expenditure being balanced at IK'12.84 billion. On the revenue s-ide aDn jnrease in direct tax receipts of IT 1.2 billion over actual receipts in 1963 was e',ect- d epresenting the deld from? the snpreinl levymr on wTTages1and sal-ri es ISho.6 billion, and increased taxes on profits IT 0.4 billion, plus an anticipated increaseJn other' di,rect t,-es of" ,a 0.3*6.oever, bidlion. the "exceptional contribution", which was to levy 10%/' of all salaries andu wages was applied afe yd.J1Ii LJ of1.the1 -- - -I andL sociaV. l security taxes. The net contribution actually provided for, was in fact, only 6p of -wages and salaries, yielding only 1i 0.6 m-llion compared with MF 1 billion originally anticipated in the stabilization program. The s-i-arp increases in direct taxes, ,u[noJver and production taxes U.LU noU produce the anticipated results owing largely to the lower level of activity wrhich resulted from the need for stabilization and control on imports. The Government managed to formally balance its current budget for the year, essentially by collecting iM 1.7 biilion in tax arrears largely from Somiex and by not including important elements of current expenditures, such as subsidies to public enterprises, in the current budget. These were financed by Treasury drawings on the postal checking system increasing the assets of the Central Bank by an equivalent amount. The 6 regional budgets, accounting for roughly one third of central government expenditures, incurred on the aggregate a deficit of almost NP 0.4 billion wJhich was financed by the Central Government.

44. In December 1965, iali undertook, after consulting with the Inter- national Development Association, to carry out,in effect, a second stabilization program. In the budgetary field, the Government intends to reduce its real current deficit until it has disappeared and to turn it into a surplus to be used for public investment.

45. The tax on imports which used to be levied on the c.i.f. port of entry price will, from now on, except for 10 basic items, be levied on the c.i.f. border price, which is equivalent to an 8% increase in the rate. The base of the tax on industrial and commercial profits has been broadened and the rate of that on some consumption goods increased. These measures should produce, wiith a few other lesser ones, about NP 1.5 billion in additional revenue. Efforts to collect tax payments in arrears will be pursued. On the other hand, tax on groundnut exports had to be reduced from 12% to 10% to encourage exports and the 10%< exceptional contribution on wages producing about MF 700 million has been cancelled.

46. On the expenditure side too, some further efforts have been made. Six embassies have been closed, and all expenditures of public enterprises are now centrally controlled, although this may somewhat hemper operations. Salaries in the public sector are frozen since 1956, but the overall Government wage bill is increasing. The Central Bank is attempting to administer the Dostal checking system in order to make it more difficult for the Government to draw on it.

47. The financial prospects of the public sector are not particularly hright under any reasonable forecast. of ;imTnnnt and export trends. Tax revenues already represent about 17% of GDP. On the assumption that the growth of imports of consumption goods willbe kept under control and restricted to 3-4% p.a. compa-tible with the probable rate of growth of GDP,there wzould be sor - 15 -

prospectu of increasing revenuae lfro,, tJes LonJjJUJ. L, LJy .Lt U-IPI U,rVn.kJA taxation procedures, by increased control of imports through the traditional sect-or, and by increased revenue from the export sector. It shio-ulU be possible, therefore, for government receipts to reach a total of about iT 17 biilion by 1969/70 or aoout iG ,%OI projected GDP in 1969/70. It is unlikely that any significantly larger increase would be possible.

48. On current expenditures, there is scope for further savings which, if made, would make room for essential increases in some services, and still permit the total to be held at the 1964/65 level for another year or two. After that, some growth in the total would probably be inevitable. This pattern might make possible moderate current surpluses in the 1968-70 period in the range of MF 1-2 billion. But this is probably the maximum that can be reasonably expected in Mali's difficult circumstances.

State Enterprises 49. State enterprises have,on balance,been a source of positive savings in the past few years. The main contribution has comae from Som.iex which enjoyed a profit of about MF 1 billion in both 1963 and 1964. This was sup- plemented by net cash surpluses from the operation of a large number of other enterprises yielding about MF 0.2 billion and MF 0.7 billion respectively in 1963 and 1964. Part of these combined surpluses was offset by the deficits of the principal deficitary enterprises: the state road transport monopoly (RTM), Air Iali, the railway and the Office du Niger. The accounting deficit of these enterprises probably totaled r,-5 1.9 billion and IS 2.0 billion in 1963 and 1964 respectively, but of this amount, some iv!F 0.9 billion represents depreciation. leaving a cash deficit of apnroximatelv I[F 1.0 and IMTF1.1 billion, respectively. On balance, grosssavings of all enterprises taken together might be estimated at about YTN0o6 billion in 1963 and ?VF n.8 billion in 196h. The balance sheets of many public enterprises show substantial amounts in receivh1esnver byiiuv the rnurnm%nt and itS agenc-es.

5°. TIn order t-o 6-nerate alditional P--- -Sfonpbi-4 trpiss - . ~~~~~~~~~~ ~13'- -V 1 C 4L"" .LkLLJa.L ..LULJ'~4. _Li. U1L PLLJ..L.LL, C;4JUCL.- J. L)K0 the Government has initiated a review of all of its enterprises except the Office du Niger. Pu blic enterprises have beennn classified in t.hree ctories a) already profitable; b) profitable provided reorganized; c) not profitable for the foreseeable fut,v-e. Enterprises in the first Cate+r i ncl 1e nprac- tically all those in the trading sector, in particular Somiex, and the c4 nn__.A++ .amnd .n..4-1, ne C.n4qoh .-_AA14 nl lv c- n_A A 6 Uu Uw O.& ^1¼,SflU9,, . iCL_.' UVL * ,VV LLaO. WVbWJA.L .- A .LI CL *CLAI. Jfr .J VLILA .IIJt U- C- L A ports of key commodities should be able to expand its current surplus at modeorat-ely 't of' .,ore effcetora;n,4------_-an increased least- ~ U AiLLI~J.0.U~J..y as~ da A.resu"4 ~vALUV VJ. AuA. tLVV ±J.A.L 4i %* jJF.L aLU.LLJ I ~LACLLA% .I.LI. C L'L OAacti- UJ. vity. It has already been given more latitude in managing its inventories anJd stI ores. L U profitLU i.s tUVc .o41LU "VLA.duJ.l Uethis yea.r , iLLI spiJ.LteU the reduced margin on groundnuts (see para 22). 51. Enterprises in the second category include the railway, the road transport organi-za-u-ion (TiJ, IiLr Miali, L41U cereal aLu frUitb UUcor-,cerll Iuri) the canning factory (SOCOMA), the slaughter house uncdertaking (SONEA), and the oil refiner-y (Tiuileries du iiali). 4, The Government has indicated its wilingne.ss to reorganize these enterprises in order to place them on a sound financial basis, and this includes a possible curtailment of activity. - 16 -

53. lith the assistance of IDA, it is expected that the railway's deficit would be replaced by a small surplus of about i'F 100 million in 1967/68. The Government has undertaken to appoint consultants to make recommendations on public enterprises in the transport sector (except the railway, which would be dealt with in connection with the proposed IDA credit). The road transport undertaking created during the emergency situation caused by the closing of the railway to Senegal in 1960, sholnd prohbly hp nrganized on a tmich smaller scale. This would keep in being the nucleus of a transport undertaking which could be expanded as circmstances required to me-et any futuire emprgen needs or any normal development needs. Air lNiali will investigate the need for, and prfitabil;ity of, SOr. ofP its- ex-er+ny- routes and other activitiJes. As for the other enterprises in this category, profitability is likely to be deferred for some time. The oil refinery n.ust ablehbe to cxpport its oil before it can operate at fuller capacity, while the slaughter houses must solve the problems mentioned in para. 19. All enterprises suffer from import difficulties and the fact that the Governfment and other public bodies are so m-uch in arrears in their paymwents.

)~40I iiTnheGoverrnrmient has indicated its willingness 0o consider closi-ng enterprises in the third category (except the Office du Niger), which includes: the Bamako BuS Transport System (TUB), Ate:Liers et Chantiers du Miali (ACPI) which groups a wide variety of industrial and handicraft activities and handles river transport, Societ6 dtEquipement du Mali (SEai), the Printing works, the hotels, cinemas and mining ventures.

55. Although the Office du Niger does not seem likely to become profitable in the near future, its financial situation could be somewhat improved given firm policies and guidelines and some improvement in organization. As for the puiblic enterprises in the transport sector (except the railway), and in industry, Mali has requested, or intends to request technical assistance from the appropriate international institutions in order to improve their operations and management.

56. As noted earlier, the total investment outLays of the state enterprises have considerably exceeded their current surpluses in the past few years. The gap has been financed by equity investment or grants from the Central Government (usually equal to the value of foreign loans contracted by the Government for equipment imported for the enterprises) and by large scale borrowing from the banking system. The rate of increase however, which was very large in 1963 has substantially declined in 1964 and 1965. The Government has stated its determination not to have recourse to the Central Bank to finance new public investment.

M4onetary System and Developments

57. Prior to June 30th., 1962, Mali was a member of the "Banque Centrale des Etats de l'Afrique de l'Ouest", which acted as the Central Bank for 8 member countries of the former French West African Federation.

58. On July 1stj 1962, anli created a national currency, the ILTali franc,. and established a central bank of its own, "La Banque de la R6publique du ImmIliII (BpR') whi-h a-lso1-fulf9i1l +sth-e rvole of a commercial, rcnltiral and development bank. The rate of exchange of the new Ikali franc was fixed at par w^ith that of the CFA franc, al+though it did not have the sme support; and - 17 -

CFAF notes in circulation were withdrawn in exchange for Mali francs on a one-for-one basis.

59. The decision to establish an incependent currency appears to have been made without adequate allowance for the probable magnitude of the foreign exchange assets which might accrue to Mrali from the BCEAO, or of the foreign exchange resources likely to beessential to t;he maintenance of Mali's external liquidity, and without adequate appreciation of the value of the benefits derived from the automatic assistance and controls provided under the operation of the CFA franc system, which were thus sacrificed. 1he total foreign exchange resources transferred to Hali by the BCEAO in July 1962 amounted to MF 2.4 billion, of which MF 0.4 billion, Mali's share in the lia- bility of Guinea to the BCEAO. was not initially conrertible. In addition, lMali has an unknown volume of other convertible balances in accounts abroad; on October 30, 1962. these amounted to about 'F 1 bil]lion. bringing total assets at that date to IF 3.0 billion or only about 20% of a year's current iomTports .

60. At the time of independence fonir French cohqmreil banks had branches in MIali and only two of these now continue in operation; in one nf thpm ;the Mali Government isa 2manjor shareholder. Th.e activities of the corrmercial banks in Mali have diminished considerably since the establishment of the TRMB tC which' were transfe Y---"nts of state enterprises, in-- cluding the accounts of large concerns subsequently converted into state Qn^A;a r A; - us+!aUsA;LA 5r 4b_m* sUQ nArnn al Walr<:s An 1 mA U MF 7.5 billion in June 1962 to ME12.2 billion in June 1965. In addition, the asse+ts lrdliabllities of fo..ethBaqu Popul-- -a-r du-1 -- l pole D6veloppement (BPMD), which had previously operated as PMalits development ba.1, 1v ULI UbLeen VVL btLLULJY ULLve BLUDDr its opertions ,ve gduay bee integrated with the latter's.

61. In the six months prior to the establishment of the Bf?M in July 1962, ite state enterprises of Mlali received substantial credits from the BCEA0. After July 1962, both the Government and public enterprises continued to borrow heavily, and by the eend of Dece,-,wer 1965, total dom,Restic assets of the BRM had risen to MF 27.9 billion, some 38% over the comparable figure of June 1962. Most of the increase occuzreud in iy93 and during the first half of 1964, although substantial increases were also registered in 1965. Claims on the Central Government rose by Yr 8.3 billion during that period while those on the economy, i.e. essentially public enterprises rose by NE 10.1 billion (see Table below). This sharp expansion in credit was accompanied by an increase of MIE 6.5 billion in money supply or about 50% in the three- year period, However, out of this increase, ME 6.1 billion were incurred during the first two years. The decrease of Mali's net foreign assets over the same three years amounts to some MF 9.1 billion spread almost evenly over the period. The increase in money supply occurred in a period when the real gross domestic product remained virtually unchanged. In spite of some price controls and increased taxation, there was evidence of significant infla- tionary pressures by the first half of 1964, and there has oeen growing c Concern over the financial and monetary situation ever since.

HONETARY SURVEY Billion hali Francs Change 2 yrs. lo mo. 1962 1963 1964 1965 June 62 June64-1 June Dec. June Dec. June Dec. June Dec. June 64 Dec.65

Foreign assets (net) 2.4 1.1 -0.4 -2.1 -3.5 -6.4 -6,7 -8.2 -5.9 -4.7 Claims on Govt (net) 3.6 6.3 7.2 8.3 9.1 10.7 10,2 11.9 +5.5 +2.8 Claims on economy 1/ 7.5 7.6 10.3 10.3 14.6 15.3 17,2 17.6 +7.1 +3.0 Unclassified assets o.6 0.5 0.7 o.6 1.0 0.8 0o9 1.0 +0.4 0

Total assets 14.0 15.4 17.8 17.1 21.2 20.4 21e6 22.3 +7.1 +1.1

M'oney 2/ 11.9 13.0 15.3 14.6 18.0 17.0 18D5 18.4 +6.1 +0.4 Time deposits 0.2 0.4 0.4 0.4 o.6 o.6 0.,7 0.7 +0.4 +0.1 Capital & reserves 1.6 1.6 1.4 1.5 1.4 1.4 1.4 1.4 -0.2 0 Unclassified 0.2 0.4 0.7 o.6 1.3 1.4 1D0 1.8 +1.1 +0.5

1/ ivlainly state enterprises 2/ Includes postal checking deposits 7/ Date of effect of first stabilization program

-2 The first efforts to correct. the situation led to the stabilization program introduced in July 1964 in cooperation with the IMP. The key control feature of this programwas a lim.it on expansion of gross domestic assets of the BRM of MS 1.25 billion above the level of !NF 22.6 billion reported at June 30, 1964. ' Jul"yTo 1 to Nover.n'er 1964, the expansion in t-he total domestic assets in the BRM was brought to a halt in spite of some expansion of credit t.o the Goverr^Y.ent owing.owever, mainly to a sharp increase in claims on the Government, domestic assets resumed their upward movement after Ta.uary 1°6'5, brealang +hrough +he ceil ng areupn -_T4Jh t .IiT in A--il, WIay and June, the peak of the seasonal requirements, and showing an increase P TmI 1. o 4, -41-. -1-n_ - - VAw_- +1- 14-h n1vron _rsh- mT,.innOA(1 1.L Y.jJ 4 .) L.L...ULA J.LI UL1V X;VJ.LU.L 'Ui , * X LVJ vJ.'-s V va.. v .j - A' to ray 1966, domestic assets increased by I-TI 2.9 billion of vwhich MF 2.2 bi''ion occ--re betee Dee-, 196 16. Triiis -increase LSsl L).L.L±±LULl U%~.;UL L±)U U~ WtVt71 ee m1IUJe. ._7U,J CLJL.Lk1±J.J .L7 %-JO LJL LLJId U.L substantial, though lower than in previous years, and in excess of the -r Ae. £it Ce iJ."L.J.VLJ of 2.bVLilionaLUIre .LUV IDl foiC 1m1oint'Ls Irorri July 1965. This was due mainly to the need to finance the deficit of public enterprises and, to temporary advances tu Soii-iex for Durchasing the groundnut crop to be exported.

63. In July 1966,the Government of M4ali and ID.A agreed on another ceiling1F of 2.6 billionfor 1966/67. This,in fact, represents a ceiling of MF 2 billion adjusted to take account of the settlement of debts arising from the railway's past operations, The amount of MF 2 billion is broken down into MF 005 billion for the financing of the Government's budgetary deficit (excluding that of public enterprises) and MIF 1.5 billion to cover the deficit of oublic enterprises. - 19 -

DEVELOPP1vNT OF CEN\TRAL BANK CREDIT TO STATE ENTERPRISES ( 'hilIioA vnIi vRytznn )-

Dec0 Dec June Dec. ;- J ne p Dec 1962 1963 1964 1964 1965 1965 1965 1965

Bills of exchange + __% 1. -I' Lo ,. Xfe e c t ()I. Ar no e.4n e.rn voLJW4 V-VVI1X .IL/ @40 Ljv4 474 Jv 774 vS pvv; 7

B's of=^,P g .UL.L _JL e.xchangeI~ (medium-term) .... 1.60 3.14 2.94 3.05 2.53 2.21 2.20 Advances on current account 0.05 2.08 3.70 3.94 3.36 5.47 5.94 6.57

Total BRM credit to state enterprises (0.05) 7.83 11.78 12.43 12.35 14.03 13.75 14.36

Source: Based on data supplied by the Banque de la R6epublique du hiail.

64. Throughout 1964 and 1965,net foreign assets continued to drop sharply; they fell by M;' 3.2 billion from June 1964 t;o June 1965, reflecting the import demand created by the large credit expansion in the preceding two years. lIoney supply declined by about IF 1 billion during the second half of 1964 under the June 1964 level of IiF 18 billion, has shown little growth in 1965 and was under !T 20 billion in April 1966.

6,. No precise or accurate information is available on the course of wages or prices. The policy of the Miali Government has been to keep prices and wages down and price controls have been enforcecd for many years. There have been no increases in wages in the public sector since 1956 and in the private sector since 1959. Price control regulations have been in force on all commodities, domestic or imported; however, there is an unofficial market where prices fluctuate widely but are very generally well above official prices. In recent years, official prices have increased by about 5-6% p.a. but black market prices have risen much more. The reliance on bilateral trading arrangements leads to rather erratic price fluctuations since goods arrive on the market in spates and do not always meet consumer preference.

66. The efficacy of these controls has been soinewhat varied, being more successful in the urban areas than elsewhere but they have certainly had a disturbing effect on nroduction. of groundnuts for instance. and distribution. The restriction on wage increases in the public sector has,for the most part.hben offset. dtii tn regrading or promotions which hnve increased the effective cost of wages and salaries. Nost of the increase however, is due to larger numbers inemployment sinnce the .Malibdget or public enterprises have taken on a number of civil servants who,before independence, were on thp FederationeSgl the Fren.ch budge+ a - f r--. w oke- w.hw- ployed in Senegal. IV. BALANCE OF PAYiE'NTS EXTERINAL DEBT AND PROSPECTS

Past and Present Situation

67. Balance of pavments information for Mali is unusually difficult to obtain and unusually sketchy. Prior to 1961 import and export fiLures were included with those for Senegal and Mauritania. Unrecor- ded border trade, duty exempt imports and capital outflow, as well as noorlv recorded transactions introduce a larze element of uncertaintv in what have to be rough estimates. However, such estimates of the halance of naimnnts have been nrenared; these are subiect to a considerable margin of error.

68. Exports in 1965 have probably, at best, remained stable, ^w4noy +rn lTwet r-r n inii+. DYn-rqc 1P'ho f;i y¶irc f'nr 1 QI;A mn-%r lq bhp t_,,wvr , ny - -D - - - affected by a likely decline in exports of cotton. Exports of ground- nuth irs aco forl approx mtl 50a-O of- recorded^ e rts 9o25% of the total. Next in importance comes cotton which has only recently

`becom'e an im.p ortJantj export.coonodiJAW'ay, with a n est.lrm M t e d valtue of LU. 1.2 billion in 1964. It is essentially on these two export products that iIali has to rely for improving its export earnings and -oreign exchange position. There may be possibilities of developing an export rm,arket for meat, but selling through official channels would have to be made profitable and transportation and conservation problems solved first. Until then, the new slaughtelhouses will continue toLwork well below capacity.

69. France and franc area countries used to absorb the bulk of Nlali's exports before creation of the Niali franc. Since then, the share of the 23 countries with which i4ali trades on a bilateral basis, has increased to the point where they absorb 70% of the exports of the modern sector, including 88% of the groundnut exports. In 1965, the People's Republic of China became the chief importer of iHlalils goods, preceding France and the USSR. These exports are in fact traded for imports financed under bilateral credit arrangements. N1alils imports, are chiefly made of manufactured goods (textiles), vehicles, and food (sugar).

70. In spite of a sharp expansion of investment and domestic credit during the past several years, overall imports have grown by only 20% since 1959. Some investment imports, however, are not recorded because they are exempted from impoft duties and there is a natural tendency to assume that unrecorded trade is limited to the traditional sector. A.lso, despite the introduction of comprehensive import controls in 1962, there has been widespread evasion of controls by traditional traders, reflecting in part the desire to avoid payment of the high import duty. With exports declining in this period, however, the current deficit rose from IK 2,3 billion in 1959 to an estimated IS 5e8 billion in 19650 Mloreover, there were apparently large outflows of private capital, particularly in 1962 when Mali withdrew from the monetary union, and these seem to have continued since, although on a declining scale reflecting exhaustion of the funds seeking repatriation. At the same time, grants received declined from IIF 5 billion in 1959 to a low of MTh 2,9 billion in 1962, but recovered to NP 4.6 billion by 1965. The rest of the mounting deficit was met by increased use of medium and long term loan funds, by a large drawdown of foreign exchange reserves and by a substantial increase in short-term liabilities.

SUl'!ARY OF ESTIMATED BALANCE OF PAYIENITS 1959 1962 1963 1964 1965 Cr. Dt. Cr. Dt. Cr. Dt. Cr, Jt, Cr. Dt, Controlled trade: 3.2 9.8 3,3 11.0 4.1 11.0 4.1 11.6 4.1 12.3 Other trade 6 262-3 55 3X0 4.3 3'A )4.o 2.) )4. 2,.C) Balance of trade 2.3 5.2 5.9 5.5 6.2 let. i nvisible - 3l 0X3 - 1.2 - 1-6 2.3 Nqet current account 5.3 4.9 7.1 7*1 865 Official transfers:

fluivre.nt 1. - 1. =~ 1. =- C9) = 1 t5 Capital 3.6 - 1.9 - 1.9 - 2.9 3.1

oans 0.2 1.0 0.6 7 1 L e | 1 A . A i Other capital net - - - 5.1 - 2.2 - 4.o - 2.1 TIr.cras in shor + er^. .LLS'.J-~O.bJ .LjALU~J U 'J~± AI liabilities - - 5.6 - 1.5 - 3.8 - 3.1 0.7 Decrease in res±Ve.1es - - _ 2.0 - .Le4 -

71. I JO As 4a-es'to resuLLL± U .L s.w,s4ta,4-_ia-WJ UL,dLiLD.L4J.L borrowJnsLU1LV±± WJ.h4r,0 JJ4.LJ*Is - 0-s-,atd 1UQLLI1b:L,U ±iLLwd-4-m=.LLL LI 11 U long term external public debt, much of it serviceable in otherwise exportable rnmrchaudise, rose f-ros arounld ri 12 bilion at thre end Of 1961 to about MF 34 billion by the middle 1965, i.e., over 4 times annual exports. Of this amount, about 20% consists of deDt to the USSR, 20%$ to France, 18% to the People's Republic of China, 12% to Egypt, and 10% to Ghana, while the remaining i;i 4 billion consists of loans from Western Germany, Yugoslavia, Eastern European countries, and suppliers' credits, mostly from Western Europe. The. latter represent only about 'IP 1 billion. In addition, short term debts amounting to over F 5 billion are due to France, representing mainly treasury advances (CP 1.55 billion) and debt on account of postal transfers. This short term debt is overdue. Out of nearly i'? 9 billion due in 1964, i.e. ITF 1 billion more than central government revenue that year, Hiali paid only ID? 1.8 billion; out of MF 6.4 billion due in 1965, only HF 1 billion was repaid. The terms of the aid are generally not unreasonable, but the total amounts of debt are so large as to make service payments un- manageable. Service on medium and long term debt alone amounted to IF 1.7 ^2 billion in 1965 or about 20%o of earnings from both controlled and uncontrolled exports, and 13% of earnings from exports of goods and services, This also represents 16% of central government revenue. Service payments are so poorly scattered that they would reach IMF 2.8 billion by 1972, the peak year, or about 17% of projected export earnings.

72. As part of its first stabi-lization programs the Government initiated negotiations with its creditors to reschedule its external debt. It obtained some success with Germany and a de facto moratorium from its largest creditor: France. However, any forirgI rescheduiling by the latter has been made dependent upon Hialits re-entry into the West African lIonetary Union. Talks were held in Paris on this subject during the first months of 1965, and agreement was reached on most technical issues. The negotiations were, however, adjourned sine die in Iviay 1965. France, nevertheless, has not been pressing for repavments of the debts owed it. except for the postal debt where part of the amounts outstanding have been used for local French expenditures. including pension navments which account for over 1MF 1 billion a year. The Government also largely adhered to its commritment not to contract new debts which woumld place an fiditionnl bhurden on the bhqTnce of payments in the immediate future, except for normal short-term credit for inmnedliatePly nprA~11o+tAr pnronets.. Alcon in an effort. ton rediuen enxVrrnm'Ont. expenditures abroad, it has closed a number of embassies and official mis-

,3. As --ar+ of tsq sc^ond stab41;lza'ion efforts, 'he C-ov------under= 0 I - flL Jt' U %J L.VU LI'.IJSI. LAA-W-WJ.J.-L.L VJ0.U.-WJ. VJ.LJ U). UUS.LJ wJ) LUUQ 4 LSL$.I -- took to continue its efforts to re-negotiate its external debts, and to

.Lir",UitvW eernaSlV-V bUorrowing to hJg gh priority proj.eCtis. Vinar.Ly %,Uilmex I.L"C.O. credit, and balance of payments financing. Except for commercial operations, .loans -wIL411 LIot be contr-ac'ed uLLL'ess t.hirlife.LL..is a'0leas L4CLlO years andU_OtheU grace period generally not less than 5 years. Also, the Government undertook rot to draw on existing lines of credit except f-or a liUiited nuw-ber oL a-reed purposes. The Government has recently completed negotiations with its East- ern creditors and obtained moratoria from practicaiLy all of them. Negotia- tions with the West German Government have also resulted in postponing subs- ta ntial debt repayments by three years and m ore, in the case of some s-up- plierst credits,

74. Mali has been receiving foreign aid to the tune of MF 7 to 9 billion p.a. during the last 3 years, about half of it in loans. The main providers of aid in recent years have been the USSR, the EEC through its Development Funds, People's China and France. EBC aid is chiefly to improve the productivity of groundnut production and diversify agriculture. France's chief undertaking in INali at present is the Sotuba hydro-electric project; it also provides substantial technical assistance in a variety of fields. W-est Germany assisted in the emergency procurement of some 300 trucks which constituted RTN's original assets and the building of the oil mill at Koulikoro.

75. U.S. aid,chiefly in grants, has been relatively modest in size, directed essentially towards education and health. Some surplus food is also provided. '.uch of the aid provided by 7astern countries has been used to secure consumption goods, as well as aircraft for Air 14ali and various - 23 - educationa;l and sanitarv investments_ The lJSSR is also assisting in a survey of Mali's mineral resources and the financing of a number of pro- cessisng plantsn China hna opened lina nof ererit. to :Tnli - onn rather generous terms, parts of which have been used for agricultural processing p%lnts (sugar refinery, anrd the cigrete and n+.r'h fatorie IT+ ml c0n provides assistance in agriculture (rice projects).

The Medium Term Outlook

76. Exports of the modern sector can be expected to grow quite ilUUstantdLalD|dl iy Utu UltV coD1UWUUf-arseo.- DWit LI1A -. YUCID VI s Wo,

77. Cotton is thle most hopeful of ia]_is export crops and could do quite well provided farmers find goods to buy with their earnings. Out- put more thlan doubiled between 1962 and 1964 and is e&pvcted to triple again by 1970. With stable prices, foreign exclangE! reC9pts should rise from 1VT l,. bil lion in 1964 to F 4I.5 bD13i ion Dy 1yjU90, AltnOUgh representing a relatively small proportion of uhe total, e:^0orts from the Office du Niger should at least be maintained at about the 1964 level and further replacement of cotton by rice avoided.

78. Groundnut output has been stagnant in recent years at about 110,000 tons. The official and rather ambitious target of 210,000 tons has been set for 1970. h!uch will, of course, depend on the incentives offered to farmers, but, given continuation of the steps already taken and provided adequate technical assistance continues to be available, a target of 150,000 tons in 1970 appears realistic. Ecports which used to fluctuate around 45,000 tons suffered a set back in 1965, down to 37,000 tons. This was the result of a combination of factors, including inadequate pricing and marketing arrangements and lack of incentives. Exports could then move upward and reach 50,000 tons (shelled) by 1970. This supposes that the intake of the oil refinery intended for domestic consumption continues to be limited. The prices enjoyed by Mali, however, are expected to fall from the equivalent of the recent French guaranteed level of ii'lr45,000 per ton (f.o.b.) to the projected level of world market price of I 35,000 by 1970. Thus, with an increase in volume of some 30%, exchange earnings would only remain at the 1964 level of IT 1.9 billion.

79. Some meat exports should be possible, although considerably less than the ambitious hoDes entertained earlier bv the Government. These are currently running at around 500 tons per annum (valued at XF 50 million). Provided deliveries of cattle to the newly built slaughter houses can be made more profitable to the farmer than local butchering or casual exports on the hoof andn,i a deuate refrig eratiron and transport, it Tomild not bo unreasonable to project a rise to about 4,000 - 5,000 tons, with a value of about IV-7 400 million by 1970.

Pn. All other ~por-s arel es;aeAtaotI ilo n 10A4. fl..LJ.. 0 SO J~.pJ4 Old aI~0 L u.,aO L,Stv-d IJ.W n-SL~~.l L/-4+0 These consist of cattle on the hoof, fish, accounting for MF 3e5 billion andu a ntU-,Uwer o04 'less D,0Jportant products iLLn.LudLing.LJ6 rice aLnL AI"LLVV. BJoth1 catll 0L and fish offer promising opportunities for the expansion of exports providing - 24 -

production can be reorganized and more modern and speedy methods of distribution can be introduced, but prvogress is likely to be sloVw due to the extent to which these activities are concentrated in the hands of the traditional nomad and relatively isolated fishing communities. However, a gradual increase in exports of all other products, including cattle and fish, is likely so tnat the total of this category may reach PIF 7 billion by 19±70V. ±11us5 total exports might plausibly be projected at nearly MF 14.0 billion by 1970, as against HvY 801 billion for 1964.

81. Imports have grown relatively little in the past few years reflecting the considerable restrictions on current imports which applied more strictly, however, to consumers and the private sector than to public enterprises. if the fiscal and monetary policies indicated in the foregoing chapters are pursued, it should be possible for imports to be maintained around iMF 14 billion until 1967. With the growth in exports expected, this could lead to a significant reduction of the current deficit by then - say, to MF 2 or 3 billion. Indeed, unless sizable capital public inflows are continued, the deficit would obviously have to be cut even more, but it seems probable that an import level significantly less than around MF 14.0 billion by 1967 would force cuts in consumption and/or investment which would be extremely difficult from a social and political standpoint.

82. Current invisible transactions which consist mainly of government and diplomatic expenditures and expenditure on investment feasibility studies are expected to remain largely unchanged in net terms over the next few years. In fact, efforts have been made by Mali to cut its diplomatic expenditures.

83. Current transfers will probably show some increase reflecting the increasing reliance on forei gn technical assintance to nrepare and implement new development projects. Capital transfers are expected to remain at their 196 lezvel of about iF 3 billion. If soft aid is added to this figure, one may reach a total of approximately k' 5 billion after 1967, reflecting in those years, a substantial part of he proposed I)A creit for the Pailway Rehabilitation Program. This element, whlich is estimated to be about iF 1 b illion a yer, wouldAnee o be rplaced by an increase Jn soft cred-t4s fro .. - -.1 -_l_- "___ - ~ -2 ..* LUt) ~UJLj-'JL 'A *S V¼J J - V.L. JI other sources in succeeding years. The figure of is 5 billion represents oulr -resent est ,_nten of thne 1lirit of ai-d wbhich Mali' ndght execCto 4obtain- on soft terms from abroad during the next 5 years, given the limited absorp- tive c L j of the econorUjy andL tuhe planr-Ling organiza .ion, and the ±lmited domestic financial resources likely to be available as a local counterpart to e^xternal aid. 8h. The increase in official loans from PF 1 billion in 1962 to MF 3.7 bi.l''onU.±LLUi± ±11n1' u.LJ WIU-d. £'±L 14,7.9blir2n16habenone LJ.LLLLIII .1.1i .UL7UL4 L114b utier offL~ tuhu fd.IAJbVi- acto- con-coLrLi tributing to the balance of payments difficulties of Mali, although the corresponding debt service chnarges have not yet had their full impact. Ann-al service charges on medium and long-term loans are estimated to reach MF 2.8 billIon oy 1972 of which about half^ to Sino-Soviet countries.* Mali has already had some success in postponing service of its debt to Germany by 2 or 3 years. It may also get some formal success in rescheduling its debt to France but, under any presently foreseeable circumstance, Malits ability to service additional debt on conventional terms appears non-existent. 85. In any event, it seems certain that any practical solution to Malits medium.-te;rL balance of paymflenlt problembs will have Vo nvclude a rescheduling of debt. It also appears that such a rescheduling wi:Ll have to allow for a grace period of several years - at least through 1970 - in order to allow time for Mali to build up its exports and set aside at least moderate reserves for working balances. Long-Range Prospects

86. It may be seen that under fairly optimistic assumptions, the main elements in Malits prospects for the next five years add up to a picture which, in spite of considerable difficulties, presents some promise. . The picture may be summarized as follows: export growth of over 10% p.a. in the nex:. five years seems possible as the result of investments already made, and on the assumption of reasonable success in efforts now under way to encourage output and ensure markets for the main crops. TWith modest growth in other sectors - say, around 3% annually, this export growth could produce an increase in total real income averaging 4% between 1965 and 1970. Such a growth rate can probably be realized with a maintenance of investment and current public expenditures at even moderately lower rates than in the recent past, provided efforts to direct these resources to the more productive usesa are intensified.

87. More basic problems relate to the extent toD which improvements can be achieved in the efficiency of investment and of development outlays over the longer run. The obstacles to greater efficiency lie firstly in the com- parative inexperience of the government administration. but much more funda- mentally in the lack of exploitable resources and good investment opportunities in Mali There do eYist. poiilites for fiirther ex.pansionn in outnut of groundnuts, cotton and perhaps meat in the 1970s. However, it is likely that g-nTro+.h rates in oi+inil_. itrill eh Acr lini rnc 1h-y +then hpr'micC0 mont of the readri1v available acreage will have been utilized, and the easier possibilities for obtain-ng increased yields, 1-gely ,-oi +v-A- Trh. a+.j,ie of +'h Senegal river basin presently undertaken under the aegis of the U.N. and some of its special- i7.zed agencies Tmyvh hAV.T=%Ta? panv +-ha wyJ for some im+.mant whinh oiilrld vi el d benefits in Mali during the seventies. Any major investment would have to be fi-n.ced for the larger part from. abroad, over and above what is nlready needed. The fact remains that, by and large, the opportunities for longer r.n growth4- at -esral----- WWI. -- i4 -reuit '14ted, -1es-- iv4 car. be as= * US.L LJVS1.15OU I CO.CU1Q&CLVJ.% L Vo.'.~u L"L i.LL %'.uj. UV .L.LJ15V.LULpL, u,0 A.5. '.UJL L~ sociated in some way with a larger market area, and Malits longer economic

prospeciiitprspcs seem' deper.der.tUV,PAUt;EU .,LJUPW upon CIVIRUso AtJAuk-Z.e V.L-d Iresu, -UOAHjMJ.LVJIAS on,- UL-or__ ;;L-VLetcre V.UL1qs U.S.of2 -s-4t-A1P.L.L.Q5.. - tional links much like those which it used to maintain with the outside world.

^8. Thus, it is apparent that Mali cannot be expected to generate surplus resources to service new conventional debt during the next decade, and perhaps beyond, so that capital inflow for the foreseeable future should be on very easy terms. ANNM

rnflmr.V~CNKMOIM Vrv' AT T

F'oduction, cporrts and Developments in the Principal Sectors of the BconomZ

Agriculture

1. Agriculture and animal husbandry are the mainstay of the Mali economy and, with the exception of groundnuts, cotton, rice and miilet, and minor forest produce, production is entirely for domestic consumption; most of this does not pass through the money economy. Of an annual output of some 900,000 tons of millet and sorghum and some 185,000 tons of paddy, 10,000 tons of millet and 17,000 tons of rice were exported in 1962 and only a fraction of this in 1963 and 1964. Groundnuts and cotton are the principal cash and export crops of MaLi. For the rest, the economy is largely self-sufficient in foodstuffs and is able to supplement its cereal consumption with meat and fish. The value of exports of cattle on the hocf and of dried fish are together more than double the value of other agricultural exports but are handled mainly through traditional trading channels.

2. Groundnuts. The production of groundnuts seems to have remained fairly static around 110,000 tons over the last 5 years, with an average yield of 610 kg per ha but the proportion exported has fallen from a peak of 60,000 tons in 1958 to just over 40,000 tons in 1962-1964, and 25,000 tons in 1965, whilst domestic consumption has increased correspondingly. Since independence, production has been barely maintained or has tended to fall and productivity appears to be affected by decreasing efficiency in the selection and sowing of seeds and in methods of cultivation. Until 1964. :Little or no concerted effort appears to have been made to maintain and increase output and export of the main cash crop.

3. In 1964, some attempt was made to import and distribute seeds, fertilizers and equipment through a somewhat inadequate field organization and steos are now being' taken to obtain teahnic21 assistance in its management and direction. If this assistance is forthcoming, an increase in output of some 3-4% or more ner year should be nossible by 1966; increasing to perhaps 7-8% per year by 1970. Markets are thoughlt to exist in Eastern Europe for increased exports of some 800o0o-100000 tons of she!led nuts, with a possibility of again exporting a substant;ial tonnage to France.

4. Until recently, Mali enjoyed the benefit of subsidized French market pmicz on t mhe 1nnlremaining vol-ine of a,port to France, and on its exports to Eastern European countries which were valued on the basis of the subsidized prices ruling in. the French Market. The arrangM.ent with France is to be terminated in accordance with the provisions of the Yaounde Convention (1964) between the 4EE and associat-ed countries. The EEC is to compensate, in part, the loss by grants spread over 5 years to increase productivity, diversify production, and subsidize producer prices. Prices for Liali's exports to Eastern European countries are neglotiated annually. The situation is somewhat modified at present by the high prices prevailing in world marLets (almost Idi 7 oer kg above French guaranteed prices), but such a situation seems unlikely to last and a drop in world market prices of 15-20, ATh4EX .rage 2'

.L 1'V0JtUUUt!U Uy 19& 1PL±.L WiLl clarly haVe ' to reLy on1 iLncr-asd.CU LJe and greatly expanded output to maintain and extend its existing markets. It has already taken steps in this di^rection by iriLureasing the price paLd to farmers from Mb 13 to MF 16 per kilo and seeking technical assistance.

5. Cotton. Production of cotton has risen from 7,000 tons in 1958 to 35,000 tons in 1964. Almost two-thirds of this, some 21,000 tons in 1964 and 24,000 tons in 1965, with an average yield of 240 kg per ha was contribu- ted by the dry cultivation areas managed by a private French company, I"Com- pagnie Frangaise pour le Developpement des Fibres Textiles" (CFDT). Produc- tion was set back in 1966 due to the lack of goods on which farmers have been able to spend the money earned as a result of the bumper crop of 1965. The older established "Office du Niger", producing cotton on irrigated land has been responsible for only about a third of the total production in 1964, 9,000 tons, with an average yield of 1,000 kg per ha. In 1965, owing to major floods but also to some conversion to rice cultivation, production fell drastically to 2,000 tons. The "Office du Niger" is one of the major deficitary public enterprises in Mali, but any attempt to set it on a sound financial basis is bound to be very difficult. A total production target of 60,000 tons could be achieved by 1970. This would permit exports of about 30,000 tons of fiber. lNarkets and prices appear to offer reasonable prospects for the disposal of this with little difficulty.

6. Production of millet and sorghum, the most important commodities for the domestic market, amounted to some 1,000,000 tons in 1965 - and this is expected to increase at an annual rate of some 2-3S. in line wAth population requirements. Exports of millet and sorghum are not expected to make any significant contrihbuti onn due to the limited availAhbility of markets. Production of rice, the second most important food crop, which

amoiin+td to sore 185,000flt tons.e in, 1 Q64, is epec-tePd to innc-res onnlv s1ight- ly with increased acreage and yields but the high cost of production in :nli is likely to limit exports to the traditional n'horing market of Senegal. Production of minor basic food crops, including maize and cassava, are expecte to1 inceas atrtsbten2oad< er a and whilst exports may be established, these are unlikely to be very 4 mv.wsv.+~ A omall ni,mkm of sce-nmes exist +fol,o production f fruit+ .I*%J .- ~ LI - . IL LAJI--J LJL- U~I* -IJ.U -i - L - and vegetables, mainly with a view to supplying a new canning factory. Out- -,+ is. -stimed at sor. 3r0,000 tons fo-r 1963,/64. ,-UV .5 V ULJ I_L:_ S. ELLiIJ0.U0. U 50.'%JJLL' W _ _ . A A _

V.L.L*.L ULL 4r iao d.JOU LJU-LJ ±1U0 JU LJ.L.UL . UJtUUI dL .L L A SL±9 - able surplus of rice, but has for some years experienced difficulties in mJka±InLLJg LU, UUe Uo LUO 1".L1 UVOU UL1d,s- ct LY96U, JAJeloss otLeU eeLMrd.L- ese market. Despite plans to again increase output to some 320,000 tons, mnainly by increasing productivity, it seems doubtlul whether rali can succeed in finding a market abroad.

8. Office du Niger. The largest agricultural venture in aiali is the Office du Niger in which some NVP 50 billion at 1960 prices have been invested since the 1920s, in an effort to convert the vast marshlands of the inland delta into a productive area supporting a settler population, Some 50,000 ha have been put into regular irrigation supporting a population of some 30,000, far short of the original objectives of several hundred of thousands of ha and settlers. The marketed production, furthermore, only amounted to about 30,000 tons of rice, and 8,000 tons of cotton per year prior to 1963, and 2,000 tons of cotton in 1965. The Office du Niger represents today a tremendous physical Page 3

achieAvment but in economic terms i tS yieltd wouzld appear tn have fallen well short of the minimum return to be expected from a project of this nature and fin"moc h-Tr )%nrn n +-% all+nF.+cf+.+ +)% ! ori T4^ .rao,,reavznyrc+moc 'hwrra huo-n farmers hae been rt settle th -_ 1 v ve . vw running at the unusually high rate of MF 1.5 billion per year since 1961 and 4 qt +e 4i.ree .nal ha-.-e beer..m A- to 4mr-4ce -n.4-4-n -,-+, -I tlr1- in the case of cotton and sugar, but the results, are not proportionate to the

9. Tle Office has beenl experimentiLng -with the productvion of sugar cane which has proved sufficiently promising to justify the construction of a small refL nirg plan-t with a potential intaKe Of 4h,000 tons Of cane. Tnis plant nas recently come into production. Further expansion of production for the home market and possibilities for exports will depend on experience still to be gained.

10. CFDT* In marked contrast to the tremendous financial investment which has been and continues to be put into the development of the Office du Niger is the relatively small investment in the activities controlled on behalf of the Mali Government by the Compagnie Francaise pour le D6veloppement des Fibres Textiles (CFDT). CFDT acts as the Government's agricultural advisory and supervisory agent in the regions to the south of Sikasso, S6gou and Bamako, which last year produced a record crop of 24L,000 tons of cotton under dry cultivation and has had marked success in improving the oultput of other subsistence crops.

11. This has been achieved through better organization, demonstration and training, the distribution of improved seeds, the supervision of the use of credit for the purchase of draught animals, plows. hoes and other agricultural tools, and encouragement of the use of fertilizers. A similar program is planned for the expansion of oroduction of groundnuts and other crops in the groundnut producting areas and a contract is presently being negotiated with the RDPA (Bureau pour le -Dvelonnement de la Production Ae:ricole) .

12. Conclusion. Poor soils, a dry climate and dependence on rainfall, the existence of flood waters and large flooded plains combine to indicate that. outside the Office du Niger. the future of agriculture in Mali is likely to lie in the development of controlled irrigation of "out-of-water" dry crops, and will depend on the aveilability of finnnce for the nonn.trii(tion of irrigation works, the provision of short-term credit for the purchase of livestock, tools, im.plem..ents seeds and ferAilizers and the anUlhilitv of extension services to advise on seed selection, timing and density of sowing, transplant- ing and .weeding techniques and crop rotation. and investments in other aspects of agriculture and in particular in rural en- _A_W__A~~4-U _ 4-_ U.. -- : rm ntp*_- '^.a: 1.,7 __ __ _11..P:X,M giEe,ing X;Jwovocsosid oVUs tD ffice v iBsu byEo ADw UID-'' - TheL1e VO Wu d" s i 6ger already constitutes a pole growth for the whole Niger Valley because of the volu.e of prodUucton, wages paid, crops surpluses and the general mass of activities centered around it and therefore tends to represent an easy channel for ANNEX Page 4

immediate investment. On the other hand, there appear to be sound reasons fo-r hbelie-ving thnt an equivalent volime Of investment in agriculture outsidri the Office du Niger is likely to produce a better overall return dispersed over a greater roportionn of the rporlation. These alternatives clenrly merit more detailed study than has hitherto been possible.

14. The dilema facing the Government is reflected in the nature and con-tent- olf -th1e proposal1s0P-for -1i4--t Al -eeo,sn -he inlue A En 4 , flrst;- ~.,J1L~~LiLLJ. ULi jJ. ~J'J~ .J. V.JAJ L .L%, .LJ IUJ. CL.L U ~V~J.dV tl& IJ _L.LL%AUU,U -LIS ULI ~.L..I Development Plan. This provided for expenditure of some MF 4 billion on

r r-alJ. I.U ~LItengi-nee;r~L I LllrI , WU.L±SO,r o-ks ±E 3.6-)* billiJ--1 U L).LL.LULI on ULIon rur-al.-LLLLd ~U%U.LJA1IkUL, andULU 1'iE _,).LL±L±L C.t and 3.2 billio on training, research and extersion services, a total of MF 10.8 billion Itt -- t -~ XI 1 -s 1 1I--2n _ outside the UIOice, comyt-eu WibUfl a furUther n11Vt:wiCfle 01 MFr 7.L billion in the Office du Niger.

15. Although considerable progress has been made in the case of cotton and sugar, the principal objectives of the present PLan for the more important crops were not achieved in the plan period, due mainly to the failure to expand the agricultural development program into areas outside the cotton producing regions. Increased efforts have been made recently to concentrate on agricultural production and to find alternative solutions to the problems of technical management and direction of the field organization and, if successful, this should lead to a gradual improvement on lines similar to those envisaged in the Plan but extending over a much longer period.

1961/65 DEVELOPMENT PLAN TARGETS FOR AGRICULTURE

Developnent Plan Tarpets Actual 1959/1960 1965 1965 Area Yield Output Area Yield Output Output 000 tons 000 000 tons 000 000 ha per ha tons ha per ha tons tons

Millet & Sorghum 1200 o.66 800 1200 0.90 1080 980 Rice 185 1.00 182 210 1.52 322 210 Office du Niger 35 1.70 57 35 2.5 87 40 Other 150 0.83 125 175 1.35 235 170

Wheat 2.8 0.6 1.7 12 1.16 1) 2 Office du Niger - - - 2 Other 2.8 0.6 1.7 10.0

Su-ar Cane (r.N.) - - - h .. .. h Dah (0.N.) - - - 3 *- Maize 70 0.78 55 70 1.10 77 60 Cotton 5.7 0.8 4.4 37 1.5 54 35 Offic-e du Niger (.4 (0.6 (2.6 17 2.0 34 2 Other (1.3 (1.4 (1.8 CFDT 1/ 6.5 0.8 5.0 20 1.0 20 2)4 Groundnuts 188 0.6 125 235 0.85 208 115

.. Com.pagnie Fjrangaise pour 1L- D des J:r-es Text.iles ADIEIEX Page 5

Livestock

16. Livestock is one of the most important resources of Mali. In the north it exists in the form of a nomadic activity which follows the supply of pasture land and rainfall. It also presents a hazard to the fruitful development of permanent agriculture as it moves southward during the dry season. In the south, livestock rearing is sedentary and herds belong for the most part to settled farmers who regard the acquisition of livestock as an increase in wealth, but again, owing to the shifting nature of the grazing, pasture land is not economically used and is continuously deteriorating. The livestock population is represented by a herd of some 4-5 million cattle, 10-12 million sheen and goats and several hundred thousand horses; donkeys and camels and several thousand pigs and poultry. According to estimates of the Animal Hubhandrv nDnert.ment. ovr 8n0nnn hAar .f nattlA arA mxorted on the hoof and about 120,000 are slaughtered each year, representing a rather low cormercil e=rnlotation of so-e 4-5% per year. Tn the case of sheand goatsj exports are estimated at 170,000 and some 600.,000 are slaughtered, or an off- tna- of som.e 8-9p year,- aga-- Is

a*L1 VQ.LLU0 Us.L W.JYI-LLkJ U.1 CIVJ CLL1U U ULJ.VL OCt41.WLJ.. LQ VAL VdJ JlVVWW.L VLJA. traditional chamnels and not recorded in the trade statistics reached a peak of I- 3.7 biLJLior, .r, 1L70L4. .IlLLb LoraL.JI.u Lis bJasedU on 'I4L' UAJLUVIIIJu U.L acces-oC sible markets in neighboring countries, essentially Ghana, Ivory Coast, Upper VU-L adRU Niger. nowever, in an effort io limit tne i±Legal imports assouiavu with this traffic and to obtain control of export earnings arising from it, the Government introduced in 1962 a program providing for the construction of a number of slaughterhouses destined to concentrate the marketing and slaughter- ing of cattle with a view to developing a permanent Industry with an export market for meat instead of, or in addition to, the export of cattle on the hoof. Five slaughterhouses were planned, at Bamako with a capacity of 10,000 tons, Segou 2,500 tons, Gao 3,000 tons, Mopti 2,000 tons, Kayes 2,500 tons, with a total capacity equivalent to 200,000 head of cattle and a potential export target; of 10,000 tons of meat. The Government program largely ignored the difficulty of building up export markets for meat, and also tended to underestimate the difficulty of ensuring an adequate supply of animals to the slaughterhouses from a nomad community which regards cattle ownership as a mark of prestige rather than as a source of income and any form of control as a potential weapon of the Government for tax enforcement. Besides smuggling cattle out is presently much more lucrative than selling it locally, and the proceeds of the sales can be used for illegal imports or capital exports. Hence a probably substantial increase in clandestine exports in recent years. 18. In fact, these problems have at last been recognized and the program of construction of abattoirs and the installation of equipment has been substantially reduced durine the course of 196L. The construction of three of the abattoirs has been stopped and only those at Bamako and Gao have been completed with FRO and Yugoslav aid, respeotivP1v_ but onlv the firszt ne has started operations and even then at about one-third of its capacity. A1IEX Page 6

19. The ultimate success of this scheme is likely to depend on energetic steps being taken to develop new market outlets in the urban centers of neighboring territories and to initiate new distribution channels and methods of transportation and conservation for meat to the traditional markets originally supplied by cattle on the hoof. The latter is likely to prove extremely difficult since this demand has been met through the traditional sector in the past and the ultimate consumer markets are likely to be very widespread. In addition, in manv of the neighboring countries similar nrnnosals for develonment of a local meat industry exist based on continued importation of animals on the hoof. Anv success incre ingo nffiinl eortns+ o^f meat. o^r can+t+ln 15 in any case also likely to depend upon much closer commercial relations with these couzn-tri-es 28 r.1 as icreased corfidence of herdsmen the MsniI- Fr'c Forestry

2 L p v-wwc w l w& of;VL WVVUo is nOsignif_Lcant andu althLuUgh tle sudaunese and Sahelian forest is not suitable for rational exploitation, a policy of re- afforestauion is recognized as necessary to eSurte an ample s-upply of fire-wood and wood for building and constrtotion, and to imfpzove land conservation6 Fishing

21. River fishing is an important activity along both the Niger and the Senegal rivers but is mainly concentrated on the former in the inundation zone between Segou and Gao. The total tonnage caught each year in the Niger varies between 80,000 and 100,000 tons and over 3/4 of this is consumed by the local population. Most of the remainder, averaging some 1b000 tons per year at a value of -MF 1.5 billion is exported in either dried dr smoked form, by the traditional sector and only partially inciuded in the rbco±ded trade statistics. rhe modernization and expansion of this industry, again with a view to tapping incomes as a source of government revenue and to ensuring the repatriation of export earnings, merits priority due to its present and even greater potential importance and the necessity of placing the industry on a firm basis to compete with the ocean fishing being developed by all the neighboring coastal countries. There is also room for improvement and rationalization in marketing and distribution and for efforts to open up new markets.

Mlining.

22. Apart from a negligible volume of gold extraction and salt mining there is no mining at present. There are, however, a number of fairly rich deposits of bauxite and some iron ore. In 1961, the (;overnment established a "Bureau Minier". later transformed into a state enterprise, to carry out a survey of mineral resources with Soviet technical and financial assistance. A sum of MF 6 billion was earmarked in the Develonpmnt Plan for the establishment of the Office and the cost of exploration. Preliminary results have not been promising. Same 5nn0 t.ons of salt are minned at Tnoudennn and plans exist for the modernization of the mine. ANNEX Page 7

23. The bauxite deposits are estimated to be of the order of 800 million tons with an average dry alumina content of about 43%. In another study made prior to independence deposits of from 120-200 million tons with an average content of 46-48% were identified. Unfortunately, these deposits also had a high silica content of 4.6% which present a serious handicap to their successful exploitation. A further handicap to successful exploitation is presented by the large distances from maritime ports. Even given the possibility of a source of cheap electricity based on the construction of a hydro-electric scheme at Gouina3 it is difficult to see how Mali could comnete with denosits located nearer to the coast in neighboring countries. Industry

24. Industrial activity is negligible and is confined to the processing n !imnle transformation of primary products, the i>n. fa.tu ro.f metall furniture and similar products, and some handicraft activities. The industrial base is rudimentary in the extreme* Soon after independence t-he government negotiated several agreements which were to result in some ex- acJEA V . U1 .L.L±LL - IJU.L,v W.L J . UV . LW'. U1 'J U± UW V' V w.U slaughterhouses mentioned above, ginneries with an output of 15,000 tons of fibre, flour mIlls -wih an output of L5,000 tons, the construction of a new groundnut oil factory which can process up to 30,000 tons of unshelled ground L-uts and re-equi.pment of a second one, gi-vn1g a combin1ed potential output of 20,000 tons of oil, and a sugar refinery to produce 15,000 tons of sugar. A cigarette factory processing imported tobacco was constructed with Chinese help. Provision was also made for the extension of metal manufactures to include metal furniture and fishing boats, agricultural tools and equipment, bicycles, small agricultural tractors and establishment of a number of small scale industries to supply the local market. Further investigations are being undertaken into the possibilities of esta- blishinm a cement -?lant and a textile factory. 25. nhe majority of these new industries appear to be appropriate to the needs of the econozny with the creation of little over capacity but in one or two cases, notably slaughterhouses and the groundnut oil refineries, this is not so. In the first case capacity is far too large while in the second it reduces the quantities of groundnuts which could have been exported by the amount of the intake of the refinery and the oil thus provided is consumed locally.

26. The development of industry in Mali as in most countries of Africa is severely restricted by the limitations of the local market, the absence of raw materials, and the high transport costs of imported materials and equipment, and export of domestically produced goods. Beyond the limits of local market requirements Mali has very little to gain by pursuing a policy of industrialization, and will have to rely oni the benefits which may accrue from a policy of regional harmonization of industrial development without necessarily exnecting to share in the eStablishment of anv large scale enterprises within its own frontiers. IvMali has recently stated its intention of seGurina the apppnnrnnae- assitane +o - - 4rve- 4i Austri '1 sector and reorganize its industrial public enterprises. ANNEX Page 8

27. Mauritania, Senegal, Guinea and M4ali, the riparian states interested in the development of the Senegal River Basin have obtained commitment of substantial funds from the U.N. Development Programme to undertake under the aegis of an Intergovernmental committee, studies of develonment possibilities in the Senegal River Basin including the justification of a large dam at Gouina between Kaves and Bafoulabe. Possible benefits are electric power, flood control, navigation and irrigation in the river basin. Electricity

28. The total installed generating capacity in Mali is about 17,000 kva (1966). Of this, 3,000 kna is h.ydro Capaci+nr and the a1ln n^ Adiesel plant. Total generation in 1964 amounted to 25 million kwh, and has increased at- ani annual rate of abo t 20 C;,n4"g +1,- In + T e ye-s.* consumption is about equally divided between industrial and commercial users or.i 'one hd and 'I,ouseolds and pubicI gh on -ihieoUler. Mlali has substantial potential hydro-electric resources; the principal

V-oss6"posile sitesIJ .IJLIor duevNelop,,.envjU0 VLV JILu a.cedV ±C.AUlocaLed on01 Uite4~LiL~ uppLer reaches.W of1 iheWiu1 Senegal river including the one at Gouina which is about to be studied. However, in the absernce of arny new large scale power consuners, the potential capacity which could be installed at these sites far exceeds the demand for power in the foreseeable future. A small hydro project has, however, been constructed on the Niger at Sotuba near Bamako. One unit of 2,500 kva is in operation and a second unit is to come into operation soon. The cost of this project is stated to be MF 2.5 billion and it has been financed by France.

29. Power generation is the responsibility of Energie du Mali, a mixed company owned 55% by Mali and 45% by France. Total revenues in 1966 were reported to be MF 579 billion and profits MF 60 billion. The company's cash position, however, was difficult because of large arrears of government consumers. rThe Commercial Sector

30. Since 1960 there has also been a steady decline in the number of private trading firms and in the number of both European and African em- ployees. This general decline in the private sector reflects the disloca- tion of trade following the severance of the Dakar-Niger railway, and also the general uncertainty in the business community arising from the con- tinuous extension of government control or participation in enterprises. The Mali State trading company, SOMIEX /, created in 1961, has been granted a monopoly of trade in eleven basic staple itemst sunar, flour salt, tea, cereals, oil, soap, cigarettes, matches, cement and jute bags, for the export of groundnuts and cotton from the Office du Nigere it also handles trade under bilateral agreements and marketing of rice except that produced

1/ Societe Malienne dtImportation-Exportation. Pane 9

by the Office du Niger. Turnover of SOI4IEX has expanded rapidly (MF 9.7 billion in 1963), at th.e expovense of privatr+.o rign ernterprises and since 1963, the company has been making-a-n annual profit of over IF 1 billion. This is regarded as sowThaon thp lnw side brinQ i r nd ' the ril1n nosition of this,state enterprise, Cereal and fruit trade is largely handled by the newly created OPAM. I/J A nwmber of measures res+r-,-+ access to or maintenance in the tradinc sector. These measures' if enforced, should lead to the ePlimination of small merc'nts in -ali.

Tr31. TheSp0.-A 0-4Lsp.rL -, o l rl4p d.r

±Ll±t Us~liunjJVUVL b.Yz:LA-JUf U.L rlcu.L± .LO fiLU WTeLJ- Ut::Ve.LVI.J:U dUl± Ilall ±4uvivJf is handicapped by the difficult nature of the countryside, the absence of maLritLime ports, long Listances, harsh cliUmte ad thI e resultlin high costsu Bamako is some 1,200 km. from Dakar, and about as far from Abidjan, the principal maritime outlets. It is aiso some 900 km. from Conakry, 600 km. from Kayes and Mopti and over 1,000 km. from Gao.

32. The transport system consists of, (i) a single line meter gauge railway of 042 km. extending from Koulikoro westwards, via Bamako, to Diboli on the Senegalese frontier, where it connects with the Senegalese railways; (ii) twvo stretches navigable on the Niger, navigable from July to January. One is connected with the railway at Koulikoro and extends south for 400 km/via the Milo river to Kankan, the railhead in Guinea and the other one which runs downstream, for over 1400 km. in Mali; the monopoly for river transport is held by a public enterprise 2/; (iii) a national air line, "Air Hali", serving both domestic and international routes; (iv) a road network of approximately 11,000 km. of which barely 1,400 km. are passable during all seasons and a little inore than 500 have been bituminized; over 5,000 km. consist of second grade roads and tracks.

33. The railway to Dakar served as the principal route to the sea until the break up of the Mali Federation in August 1960. Subsequently, most of Malits overseas trade was carried by the Abidjan-Niiger railway between Abidjan and Bobo-Dioulasso in Upper Volta or between Abidjan and Ouangolodou- gou in the Ivory Coast. Transportation between the rail terminals and Mali was by road. In order to assure the road transport reauired, Mali established a public undertaking, "'La Regie des Transports du M1ali1 1 . In July 1963, Ialian and Senegalese railways were reopnened to international traffic and this has again become Malits principal link with the sea. Prior to closure of the Senegal section. apnroximatAl.v 160.nnn tAnns of imnn,rts and 90.000 tons of exports were handled on behalf of Mali by the former Dakar-Niger railway. Dluring the period of c1nlo-s transport on the Mali rnil1wwiray was limited to domestic traffic and averaged less than 70,000 tons per year. Total traffic 6 6 recovered to so.me -210,000tons In 19 3/ )4 and 220,000 tons in 1964/65 bi ths

17.L/ / Off;c4Ateliers..'~. 'L~%IUAeseL Prod C.hLantiL 4- Agricolesd M .J.LLA., 4.AM ':. 7/Ateliors et Chantiers du Mali, ANNEX Page 10 railwayst operations are hampered mainly by insufficient and poorly maintained rolling stock. The extent to which the railway recovers the full volume of traffic available and assures Mali's transport needs in the future is likely to have important repercussions on the operating efficiency of both the Mali and Senegal sections of the railway, on the operating results of the state road transport undertaking and on the general economy of Mali.

34. During the years 1961 and 1962, the railway operated at a loss of some MF L5() million per year. The loss for 1963; with six months of normal operation in conjunction with the Senegal section of the railway, is estimated to have fallen to MF 4O00 million and to MF 218 million in 196h/65. The railway has, however9 deteriorated during the interruption period and investments of the nrder of TvF 28A hillion w¶ollri b reqrt now -+o rnenlce it in eff'i- cient operating condition. A rehabilitation credit has been requested for this purpose from. IDA.

35, The 4gere "4 serear P o hIne1 4 r nyet. n +Iim v+,,,t4 e O f h+' former Dakar-Niger railway and as the economic artery for the country, and the greaUter pa-4t of qhe 4-444 - .^-Ae on 4the riv4r tt-" abot 7rg7,00 tons in a normal year is dependent on the railway.

36. Air transport is operated by a state monopoly, "Air Mali"l, the ca ^ _Z --- .%_> _ n _ _ _ _1. - L _ _ 1- _ ;. -- ___ J.L GLdL U.L W.LLk41 - oUIIJU 1'Wv VlJlLL II0U1 WI UUUVLLR U LyU Wkl gUY.6LVIAILv.l U d.l_ consists mainly of Soviet and Czech aircraft purchased under long-term creditso The undertaking operates at a substantial loss amounting to over MF 400 million in 1962, MF 536 million in 1963, and MF 657 million in 1964h even though the government has retained responsibility for all loan service charges. The greater part of the deficit is attributable to the operation of international routes with aircraft not especially adapted for the purpose, based out of reach of the essential workslhop and maintenance facilities, the nearest of whioh is in Czechoslovakia, insufficient occupancy and frequent maintenance and overhaul requirements. The enterprise also lacks competent management and needs drastic reorganization.

37. For a country of the size of Flali, the extent of the road network is inadequate, its earlier development being determined to a large extent by the existence of the Dakar-Niger railway and the Niger river extension, and the very limited export resources of the econony. Developments following the closure of the railway gave considerable inpetus to the road development program and some MF 10 billion was earmarked in the present Plan for improvement and development of trunk roads connecting the main urban centers and the producing regions with the Abidjan-Niger railway.

38. Apart from a very costly road development program the government has invested some MF 2 billion in the new state road transport undertakings pur- chasing some 360 lorries from Western Germany on a supplier's credit on which service payments have recently been postponed. The lorries provided were not Page 11

adapted to local road conditions, servicing facilities were inadequate and competent management lacking. As a resul.t the effect.ive operational capacity of the undertaking has been well unrer half and substantial Losses have been incurred. In launching the new undertak-Jng, it i.s quite clear that the extent to which capacity alr-ady existed in the form of pri.vate transport in Mali and neighboring territories was overlooked and this continues to provide competition for a greatly reduced volume of traffic following the reopening of the railway to Dakar.

39. The Government is e pected to reorganize its railway asaresult of the granting of the credit under consideration by IDA. In addition, it int-ends to ap' h-.the appropriate international institutions to secure technical assistance to review the rest of the transoort sector and set the other public enterprises in that field on a so-ad financial footing. THE ECONOMff OF hALI

Statistical Appendix

Table No. List of Tables

1. External medium and long-term public debt outstanding including undisbursed,as of June 30, 1965 2. Estimated contractual service payments on external medium and long-term public debt outstanding incltuding undisbursed, as of June 30. 1965 3. Land use in Mlali 4. Estimates of total and working population 5. Gross domestic product at market prices, by industry of origin 6. Use of resou'rces 7. Gross domestic product at market prices, by sector 8- Production of principal crops 9. Results of the C.F.D.T. cotton season 1964,/65 lOAoTInvestm.Y. e .nt,surplus and population of the Office du Niger lOB. Production and yields of the Office du Niger 11. Estimated llivestock population 12. Estimated utilization of cattle, sheep and goats 13. Installed capaci+y, productioa aelectricit pnd c.tn 14. Consumption of petroleum products 1i Ra t,Ar rt ofP 1icensed rotor1. Ver.l e ", a i~.4~.'4 Vi.CQLIO.4jJ. V, L4U4IMLJI;± '44 . LA' ~i 16. Road transport, traffic carried by "La Regie des Transports du Piali"

' I 1-.V L,± dLjJU Lf L dL4XLU cUdi 1 .JJZU "'bL L± .L t' Chantiers du Mali"l 18. Ra.dWia-y bara[Iajor , tralIo carUU 19. Air traffic movements at Bamako 20. lurnover, salaries, taxes anid ouher expensels of se'lecttedu erL1U -J 21. Monetary survey 22. iAssets and liabilities of the Banque de la R6publique du jIali 23. Assets and liabilities of commercial banks 24. Credit to the private sector 25. Net currency issued 26. Postal checking system 27. Convertible foreign exchange holdings 28. Balances on bilateral clearing accounts 29. Summary of Mali Government budgets 30. Central government receipts 31. Central government expenditure 32. Expenditure under first five year development plan, 1961-1965 33. Finance of development plan 1961-1965 34. Investment credits opened under FIDES (1949-1960) and F.A.C. programs 35. Financial aid committed and disbursed by F.E.D. 36. Financial aid approved and disbursed by A.I.D. 37. Estimate of balance of Payments - 2 -

Table No.

38. Estimated trade by regions 39. Imports by category 4o. Principal exports 41. Estimated financial gain to Mali from sales of groundnuts at guaranteed prices ruling on French markets Table 1

l/ MALI - EXTERNAL IMEDIUM - AND LONG-TERM-PUBLIC DEBT OUTSTANDING INCLUDI-NG UPJDISBURSED AS OF JUNE 30, 1965 ?/ Debt Repayable in Foreign Currency-'

(TIn4 h.o-sands of TU.S. dollare- va.ns

Debt outstanding Item June 30. 196h Including undisbursed

TOTAL EXTERNAL PUBLIC DEBT 139,594

Privately-placed debt - Suppliers' credits 3,729

Bulgaria 2,342

Czechoslovakia 11,012 'France2879 Germany (Federal Republic) 4,657

'JldlcIn, v Hungary 96 United Arab Republic 16,800 U.S. - AID 3,200 U.S.,SR*.R. 27,813 Yugoslavia 1,596

l/ Debt with an original or extended maturity of one year or more.

2/ Defined to include debt repayable in merchandise.

Source: Statistics Division, IBRD-ij.onornics Department, May 2, 1966. rn-t- - CL Table 2

ESTINATED CONTRACTUAL SERVICE PAYEVMTS ON EXTERkNAL hE2DIUJh - AND LOI TG-Ti'i PUBLIC DEBT OU{PTANDING IU4CLUDING UNZDISBURSED AS OF JUNE 30, 1965-' Debt Repayable in Foreign Currency

(In thousands of U.S. dollar equiva:Lents)

. .4 4. . _L Including Paymen-.s During Per.Lod Ylear un,d,sb-urUsed =elQUr,±za tAL[IlAu b i Io ,a

1965 127,591-a 5,723 1,726 7,449 1I66 123,895 7,107 2,069 9,256 1967 116,708 7,881 1,990 9,871 1968 108,827 7,633 1,819 9,452 1969 o1l,194 7,416 1,647 9,o63 1970 93,778 7,325 1,444 8,769 1971 86,h53 8,141 1,264 9,405 1972 78,312 10,270 1,082 11,352 1973 68,042 l0,431 892 11,323 1974 57,611 10,342 5S98 11,040 1975 47,269 8,088 505 8,593 1976 39,181 7,019 376 7,395 1977 32,162 4,625 260 4,885 1978 27,537 3,861 204 4,o65 1979 23,676 3,459 168 3,627

1/ Includes service on all debts listed on Table 1 prepared May 2, 1966 except:

$10,000,000 from Czechoslovakia, 2 1/2%, 1961-1969 $ 2 onnn no from BRil gPrin - 2 1 /2f -I21

for whi ch t.hp amnrfti-Atnn terms nre nnt avai

2/ iiqt.±.nr1ina an f Juine 30, 1965; ntrmnn+.., fovr t-he entirea-rer 1965.

4 Soir'ce: Statis+ -tcs!T s-onr , IB.,,,,,-,w,- Deprtnt M 92.,r 1 OAA Table 3

LAND USE IN iALI

Rainfall in mm. iiiiOfllo per year ha. %

Saharan dese:rt Less than 50 36 30

Sahelan steppe (sub-desert) 50 -200 25 21

.-oode'd stppe 200 -500 19 16

Savannah grasslands 500 -1200 33 27

!looded savannah 1200 -1400 7 6

Total 120 100

LA1D SUITABLE FOR CULTIVATION ______

Under cultivation 1.8

Fallow 9.2

Scheduled forests 1.1

Reserves 3.3

Pastures 30.0

Other 3.6

Total 50 .0

Sources: Lnqugte de la F.A.O. sur l'Afrique, Republique du lali, Rome 1962. Docwmier+taon Fran9ise No .2,739, LaTnpublique du iai, January 1961 Table 4

ETIMATES OF TOTAL AND WORKING POPULATION (Thousand)

Male Female Total

1950 .. 3,445 1955 3,643 1960 4,100 1962 All ages: 2,189 2,205 4,394 0 - 5 480 457 937 6 -14 587 554 1,141 15 -59 995 1,110 2,105 60 85 84 169 Ponulltinn of working age: 995 1.110 2,105 Active .. 1,800 Inactine ,,iv 300 Working on own account: .. .. 1,700 Agrcicultre . * li)n1n Other industries 290

InT mpl ',: . . - 70 Agriculture, forestry and fishing .. .. 15 InuTries.+ . 5a Commerce .. .. 10 Transport .. .. 10 Administration 20 Oher Service. 10 1963 .4,499 19614 .L,607 1965 .4,718

Source: Service de la Statistique Generale. Unofficial estimates. Table 5

GROSS IDMESTIC PRODUCT AT MARKET PRICES, BY DIDUSTRY OF ORIGTh

Billion flali Francs

: : : ) 1): 1) 1956 1959 1962 1963 1964 :Amt.:d:Amt.: % :kmt.: % :ALmt.: :Amt.: %

Agriculture, forestry : : and fishing :41.5: 57:35.7: 54:38.8: 54:39.7: 54:4o.6: 54

Manufacturing :3.9: 5: 3.8: 6: 4.6: 6: 4.7: 6: 4.7: 6 Construction : 3.2: 4: 3.0: 5: 3.3: 5: 3.4: 5: 3.5: 5

Electricity production : 0.2: - 0.2: - : 0.4: 1: 0.5: 1: 0.5: 1 Commerce :16.6: 22:12.0: 18:12.1: 17:11.9: 16:11.1: 15

Transportation : 1.5: 2: 4.6: 7: 4.7: 6: 4.6: 6: 4.0: 5 Administration : 4.2: 6: 5.9: 9: 6.7: 9: 7.6: 10: 8.5: 11

Other services : 2.7: 4: 1.3: 2: 1.2: 2: 1.3: 2: 1.3: 2

Gross Domestic Product :73.8: 100:66.5: 100:72.5': 100:74.8: 100:75.3: 100

of which : : : : : : :

m.onetary sector :)49.0: 66;)40. 7; 66 -; .. .;: 48.3:. 3: 67 mone J UL.LDV I.LA.L L L14. )L4;uQ. I )4J * L4 I 4. n n . 4t An . 4 . .I .. ., 7

0. Qs :l r Q. . . . . subs1-xisttenc sect rr, C-14 V. 314 - c D r.-L4-c

Money- Gz.D.P. per cap±ba (±xil ) ,L4U0 0Lu,20u .. .. 1U,50)U

1) Unofficial and provisional.

Source: Comptes Economiques de la Republique du Mali - 1959. Cormptes Economiques du Souuwan - 1956. ITission estimates based on data supplied by Mali Government. Table 6

USE OF RESOURCES

Billion I-lali Francs

: : : ~~~1): 1): 1) :195 1959 1962 1963 1964

G.D.P. at market prices 73.8 66.5 72.9 74.8 75.3

Imports of goods and services 18.3 12.3 l!.2 * .17-08.8

Total available resources 92.1 78.8 88.1 91.8 9*4.1

Consumption: Private 70.5 55.6 56.14 57.9 '59.1 Public : 6.6 7.8 12.5 : 114-. 14.9 Gross domestic capital formation: : Enterprises : 4.7 3.3 5.7 : 6.2 : 5.1 Administrations 1.1 2.3 : .h : 3.6 : 3.9 Stock changes

Exports of goods and services 9.2 9.8 : 1.1 : .7 11.1 Total use of resources 92.1 78.8 88.1 91.8 : 9)4.1

Gross Domestic canital formation as a percentage of G.D.P. 8.0 8.5 12.5 13.0 12.0

1 Tlnoff'icial and provisionnl=

Source: Co.y..ptes Econor..iqe de Ila 'R%,k rnliyvd Maij - '1959. Comptes Economiques du Soudan - 1956. Miission estim.ates based on data supplied hy Mali rnvrrmnriAnt. Table 7

GROSS D01CSTIC PRODUCT AT iMARKET PiICOS, BY SECTOR

Billion Mali Francs

: 1): 1): 1) : 1959 1962 : 1963 1964

Traditional sector 410.2 ;45.0 * 45.9 ;46.8

Public enterprises: : 2.6 : 4.8 5.5 : 5.2 Office du Niger : 1.3 1.0 1.1 1.3 Industries & works : .. : 0.6 0.7 : 0.7 S014MEX, etc. : .. 1.7 : 1.8 1.8

Energie du Mali . 0.2 0.4 0.5 : 0.5 Postes & Tel6communications : 0.2 0.2 : 0.2 0.2 Chemin de Fer : 0.9 0.3 : 0.3 : 0.3 R6egie des Transports du Iali, etc. : - 0.2 0.2 0.0 Compagnie l4alienne de Navigation : - : 0.2 0.2 0.2 Air IHali - : 0.2 : 0.2 0.0 Other - 0.1 : 0.2 0.1

Private enterprises - foreign 9.3 ; 7.6 ; 7.0 6.5 Tndistries 0.2 : 0.2 : 0.2 : 0.2

Public WJorks . 0.8 0.9 1.0 1.1 cdnrnce : 7.1 : 5.7 : 5.1 1l.5 Transportation : 0.8 0.6 : 0.5 0.14

S tudieas & Psearch n0=1 : - 01 Services : 0.3 : 0.2 : 0.2 0.2

Private enterprises - African : 7.8 : 8.4 8.1 7.8 Commerce 1,n : 5 :. Transport : 2.7 : 3.0 : 2.9 : 2.8 Ser,r-vces : 0.2 0.2 0.2 0.2

Households : 0.7 0.7 0.7 0.7

A A v4~ V * *. A- . 7 A 1 flAJ no,..La'ini JaJi. :.!.. 5-- : 6. Total : 66.5 : 72.9 714.8 :75.3

1) Unofficial and provisional.

Source: Comptes Economiques de la Republique du Mali - 1959. Corwptues Econondi.ues d-u Soudan - .L.y:U. Ilission estimates based on data supplied by IIali Government. Table 8

n'DnT)T70r}rTM7 A TM C ' T 7iQ OF1? TNVI'TIDPT COPS)C

Area Products 1000 ha Thousand Tons I Tr rrl^,fU -. fn,-L, - -L rL- 1- ,n L .- I nK1 -I n- ±>'Ou JO ~j-15))e iyQU1960 -L>UC- . -L>U) -LYU4 -I u,) Groundnuts: Production ('UnshreJ1Led) 2o6 97 i23 0u i20 100 ii0 i11 iJl5 Sales (Unshelled) .. 84 51 85 67 74 73 47 Exports (Shelled) 6O 60 28 51 41 42 43 25

Cotton: Production (Seed) Total .. 7 10 11 15 24 28 35 35 Sales to O.N. 1/ 7.3 3 2 4 5 7 8 9 2 Sales to CFDT 3/ 71 3 4 3 6 12 16 21 24

Exports (fibre) *0 O * 1 *. 4 3 5 8

Rice, paddy: Total 200 175 182 180 185 185 188 183 210 Sales to O.N. 1/ 34 51 56 56 55 41 38 43 40 Other 126 124 126 124 130 144 150 140 170 Millet & sorghum 1,300 800 800 820 840 850 860 940 980 Maize 90 55 56 58 62 65 68 72 60

Cassava 20 ...... 20O5/ * .

Sweet potatoes 6 .. .. .* 60g/ o..

Shea nuts .. 2 ..e. . *.0 F'onio 50 .. * * 15A , 0 .. .

Karite butter .. .. . 35g .. .

Kapok production ., 1*.22. . .

Gum 1......

Wheat 3.0 .. .. O. ./.. .. . 2't Yams 2 *. . .. l0-0 .

Niebe Beans 13 *. .. .. 10- /..e

1/ Office du Niger. 2/ EsbLImate of average ann.ual crop. 3/ Compagnie Franqaise pour le D6veloppement des Fibres Textiles.

Source: Enqutte de la F.A.0. sur l]Afrique, Republique du l4ali, Rome 1962. Kinistere du D6veloppement. iqote: Production figures relate to the crop year ending in the calendar year shown. Table 9

RESULTIS OF THE C.F.D.T. COTTON SEASON :1964/65

No. of' Population Area 000 ha Purchasee Yield AciLnistrative Area Villages 000 Culti- Using Using Planned Actual w17i vated Manure Fertilizer tons tons

Sikasso Region

Cercle Si:kasso 474 186 1, 0.7 0.7 3,130 3,105 21L3 it Kadiolo 76 143 2 0.1 0.1 3 70 378 171 Koutiala 343 16 7 22 2.0 1.9 8,W47 9 ,473 430 Yorosso 95 53 6 0.1 o.4 2,360 2 ,343 379 Other 176 65 1 0.2 0.1 257 81 _ iB 5 6 3 < . 3.1 ~ T WT;6 T, 3b02 Sepou Region

Cercle de Segou 257 84 6 2.0 0.5 2,050 1,303 308 San 342 77 is 0.1 o.l 1,;81 1,489 238 Tominian log 34 3 . . . 731 726 242

708 195 15 2.1 o.6 44,362 2,190 240

Barnako Region

Cerclie de Doila 215 67. 5 0.3 0.2 1,705 2,190 454 Bamako 130 148 1 )o.1 0.1 207 114 98 Other 79 35 I ) 0.1 100 42 21 .uT > -S 7 0o.4 0.147 - 312

TOTAL 2,296 859 68 5.6 4.1 20,938 24,243 3114 1963/614 15, 266 15,763 (000 T1) 1962/63 n.a. 12.3 1961/62 n.aq 5.9

Source: Rapport sur la Campagne Cotonnitre 1964/65, Xegion, de la IR6publique du Ma:Li, CFDT1965 Table l.OA (1) INVESTMENT, SURFPUS AND POPULATION OF OFFICE DU NIGEP

INvEsTMENT (2); SETTLER OPULATION : CATTLE :NDERTA;2TNC : Original : Current : Gross Adult : Total: CUurrent : inves.:b.er : Value : Value : Surplus : 'otal Male s : : Ooe,atpi '-s :C)peral, n : Million Mali Francs : : Thousand : Thousand : Thousand

1925; - 1912 : 1,367 : 26,903 : (3): (L) 1 7 - 191:8 231 : 673 : 21 . 7 5.8 : 12.7 : . 1?OI 1-91, 230 : 612 :.. L9 .6 : 5.2 : 13.h : .. IQLQ - 1950 : 763 1, 817 : -57 : -9 : 20.2 : 5.9 : 13.7 : .. 195c0 - 1951 : 973 : 1,016 : -16 : -.2 : 2O.9 : 5.6 : 15.5 1951. - 1952 : 110 : 2,0h7 : -1Li : +1 : 21.0 : 5.5 : 15.6 : . 1)52 - 1053 : 1,3L2 2,075 : +2 : +2 : 21.3 : 5.6 : 16.9 5 - 1951 : 1.09 1,632 : -5 : -8 : 23.8 : 6.o : 16.L : : 5. 3 3.2 1051 - a 5) : 808 : 1,221 -ih -12 : 26.3 : 9.0 : 17.6 : B.L 5.3 : 3.1 1955 - 1056 : 775 : 1,085 : -210 : -368 : 28.2 : 7.7 : 16.7 8.0 : 5.2 : 2.8 156. _ 10 : 1,075 : -109 : -iLl : 29.L 7.8 : 10.9 : Q.C) : 5.2 3.8 15 7 - I 5z : 753 :143 :-6 -60 : 32. 3 8.5 : 17.6 : 7. 1. 8 : 2 . 2 ?5, - 1.- : 715 722 : -11 : -5 2. 5 : 8. 10.O : 5.8 f:.6 : 1.2 OC' _ :4or 772 722 : -158 -6oL : 3!.7 ?9.0 2n.n : 6. 5 : bLt : 2.1 1o60 - r6i : qo6 396 :(-276): 38, : 9.8 : 20.0 : 11.-3: 2.7 1.6 1061 - 1062 * :(-L17):: 37. 2 : . 23.3 .. 196 cSlw e~~~~ 1.^6 t * @ @(-100) 0 @ >7 .~~~~~~~33 : .. : 2L,. 2 :..: .. 1963 - 19L : _.. : , :(-..0): .. :37.3 : 1.0. 214.2 : .. > 0 9~ 3196L :32.9 : :4.7 10. I 25.0 : 7 Total toc . .

1960/61 * 12,296 L 3,7O . .

(1) Investment in Lr1iatimn works only. (2) Revalued up to 1960 only. (3) Sur-lDus on general operating account. (l) Gross surplus after subsidies and losses and profits arising from tranisactionE in earlier years. (5) Permanent staff. (6) TernorarA' staff. Source: Comptes 1)59-1)60 de l'Office du Niger. Oam)te-.rendu de la Campagne Agricole 1960/61, Office du Nirer. Data suDnlied b!y O:f'fice du Niger. Table 1DB

PRODUCTION AND YIELDS OF OFFICE DlI NIGER

AREA UNDER PRODUCTION 000 ha. HARVESTED 000 TONS YIELDS yv.F, :o -.- C otio ice Ote !---57--~ 'to ce - 7i Total C(rnp Fallow: : Crons Total Purchased : Total : Purchasied Cotton : Rice

l9Ij5-Ph~: .. : :...... 1.5 : : :. 1:

1919 - 195C : 21.7 1.9 : .. : 12.7 : ,. 1.L : 1.h : 26.3 1L.9 : 736 2,c8c 1950 - 1951 : 25.7 2.1 : .. 1Lk.] : .1. l.u 1.3 : 20.5 : 11.3 637 : 1,L58 1951 - 1952 : 29.5 : 2.7 : .. 15.2 : .. 2.6 : 1.9 26.9 1L.l : 977 : 1,764 1952 - 1953 : 33.L : 2.9 : 3.1 : 18.5 : 9.0 : 2. : 2.3 : 35.0 : 2L.5 818 : 1,898 1953 - 195L : .38.3 : 3.6 : 3.8 : 21.0 : 10.0 : 3.5 2.9 39.7 : 26.2 915 : 1,594 195L - 1955 : h3.5 : L.2 : h.6 : 22.9 : 11.8 : 3.L 2.9 : .W4.5 : 27.9c , 788 : 1,9L9 1955 - 1956 : 1L.8 : 5.0 : h.4 : 25.9 : 9.6 : 3.L : 2.7 : 45.0 : 28.C)0 678 : 1,731 1956 - 1957 : LL6.5 : h.7 : h.7 : 28.3 : 8.8 : 3.2 2.5 : 49.7 31.1 684 : 1,75L 1957 - 1958 : 49.3 : 5.4 : 3.9 : 30.8 : 9.3 : 3.i 2.9 : 50.5 : 31. 8 608 : 1,585 1958- 1959 : 51.5 : 5.3 : 3.5 : 34.0 : 8.7 : 3.1 : 2.1 : 55.8 : 37. 8 698 : 1,667 1959 -_ 960 : 53.2 ; 6.6 : 2.i : : : 4 : 3.6 56.5 37.7 660 : 1,700 11960 - 1961 : 53.6 : 5.7 : L.L : 32.7 : 10.8 5.1 : .6 : 54.7 : 37.6 886 :1,81 1961 - 1962 : .. : 6.8 : . 26.1 : .. : 7.0 : 7.0 : 41.0 : 23. 1;IL025 : 1,55Q 1962 - 1963 .. : 8.0 : ,. : 22.9 : .. : 7.7 : 7.7 : 38.1 : 23.0-C 99C : 1,670 1963 - 196 . : 7.5 : .. : 29.2 : .. : 9. 7.5 : L2.9 : 2O.59 l271 : 1,467

Source: Comptes 1959-1960 de 1'Office du Niger. Compte rendu de la Canpagne Agricole 1960/61, Cffice diu Niger. Data supplied by Office du Niger. Table 11 1/ ESTIMATED LIVESTOCK POPULATION

Thousand head

1958 1960 1961 1962 1963 1964

Cattle 3,362 3,513 3,863 3,923 4,263 4,688 Sheep and goats 7,153 8,188 8,159 9,151 9,695 12,118 Horses 112 106 119 123 136 .. Donkeys 322 292 336 341 375 .. Camels 98 159 158 168 187 * Pigs 10 9 17 17 30 so Poultry 14.600 10,050 14,500 :10,545 18,300

1/ This overall estimates of population and the sum of estimates of uses are not consistent with the claims for crude net growth rates of 10% in the case of cattle and 25% in the case of sheep and goats.

Table 12

ESTIMATED UTILIZATION OF CATTLES AND SHEEP & GOATS Thousand head

EDcort Slaughter Controlled Other Controlled Other

Cattle 1958 44 31 54 33 l959 hi h8 57 28 1960 38 42 62 26 1961 I8 57 33 1962 46 36 66 52 1961 63 54 73 35 1964 1/ 72 150 78 4 1Q(6 ?/ 4= no 65 Sheep and Goats 1958 125 151 121 522 1Y5Y- yo 14U -HAee_ A n 424Il t A q on . } oX 1960 83 84 127 428 1961 80 98 140 374 1962 42 128 145 487 1963 56 190 128 584 1964 57 99 128 692 1965- 2/ 29 *. 59 *e

1/ First eleven montihs only 2/ wirst ten months only

Sources: Bullet-n Annue'. de Conjoncture, Bulletin mensuel de statistique etc= Table 13

NSTALLED CA:PACITY PRODUCTION AND CONSUMPTION OF a,ECTRICITY Install ed Production, 000 kwh 1 capacity Y97-5 - 1959- 196 561 fi 96I2~ 9063 19___ 19,66 (:kva)

Barako 6,732 8,183 9,627 12,082 1233 l,85 ]8,h86 22,:L20 l0,hoO

Bougcun-i 35 39 62 90 106 118 78 74 120

Ga o 359 444 488 609 543 53]L 575 671 680

KatyeE 824 915 1,102 1,189 1,012 981L 90 957 Th. 560 H. 520

Mopti *- 33 156 258 312 386 41 2 500 250

Segou/M,rk-1p 469 479 592 716 686 697 7150 908 1,820

Silcssso .. .* ...... 21 250

Tornbouctou ...... 200

Sotubp 1/ ...... H. 2 500

Tot91 8,419 10,093 12,027 14,9k4 15,892 18,801 2:L,291 25,251 H. 3,020 1 -7,300 Consumption, 000 kwh

6 Industr-ial use ...... 6,593 .,554 6,777 8,313 9,126

Public lighting and domestiLc use ...... 6,234 6,583 8,85 9630 9,753

Total 12,827 13,137 15631 17,943 18_879 I'uniber of consumers (Dec ember 31,196L_ 6, 45!4 6,,806 9,251 1473 11,957 7>iT; unit of 2,500 kva plarned for. xrce: Fnergie du Mali. ) Table 14

CONSUMPTION OF PETROLEUM PRODUCTS

Unit 1959 1960 1961 1962 1963 1964 Aviation fuel M43 2,179 3,341 I,870 6,220 6,166 8,706

r,asoline MIA 25620 2L,j685 20,573 27jo75 34LJ92 3 ,())A

r.nq nil MI3 129,586 6,700 1.100 1,9 77oI). 178 901

KerosenenoM ml ;C: C 701< I.1o r0 UR[ 7 7nr) ( 9Q

Die-sel o-i-l M3 1,20 ),14 3,0 464 5,355L

TLiqui el ga 156Ii 11 12)5 199 2o201 230 ) Metric T .I 4. \ 'nOo , o * r7-Q'77. Q 1 nr.n n oo1 r .Uu bericant-s1 ' )7c L L4 U _L V- I 19 7%7 6nv) ton ^|D-,Un ) 223 897 l,i'1± 1,600~ 1,87UUI0

Source: Service des Mines

Table 15

ROAD TRAN-SPORTi NUMBER OF LICENSED MOTOR VEHICLES

_Passenger cars Commercial vehicles Year Total Private Business Vans Lorries Buses Mis. 1958 Jan. 6,)88 2,027 203 3,996 27 235 1959 5,1426 ......

1960 6,388 2,137 3,624 33 27L

19 61 5,908 1,894 430 1,708 1,690 15 171 1962 6,599 2,506 3,907 186

1963 Oct. 8,(30 3,300 1,900 2,600 60 170 1964 8,709 3,812 2,118 2,779

1/ Figures for 1958 and 1961 appear to be based on estinates of the actual number of vehicles licensed; those for other years appear to be based on the addition of imports to the "base" year figures with no allowance for wastage. Source: Outre Mer 1958. Annuaire Statistique 1963, Chambre de Commerce, d'Agriculture et d'Industrie de Bamako. Table 16

ROAD TRANSPORT

TRAFFIC CARRIED BY "LA REGIE DES TRANSPORTS DU MALI" 1962 1963 1964 Gross Valle Gross Gross Goods Carried tonnage Million tonnage tonnage nnn______nnn0000

Imports of petroleum products 13 106 19 14 Other imports 22 164 23 17 Exports 15 54 14 16 Domestic traffic 8 13 9 8 Total 337

Source: Bulletin Annuel de Conioncture. April 1963. Data supplied by Mali Government

Table 17

RIVEwR TRhIJISPORT

4"D"'-'FI C -IED BY~' £,i>LCnUn ..lfJR D'u i'JiiU..

1assengers T1oi-rHage Ion/ lull embarked loaded 000

1955/56 L9.3 70.3

1956/57 44.8 63.9 33,770

1957/58 60.6 79.2 35,346

1958/59 61.2 71.3 31,467

1959/60 44.8 92.1 31,398

1960/61 42.8 39.1

1961/62 49.5 29.14

1962/63 55.9 39.8

1963/64 60.1 47.6,

Source: Bulletin Annuel de la Conjoncture, April 1963. Contrihuition 2 1 tFtunci des Transports du %ali by Henry G. Irani. Data supplied by Mrali Cle)rnrorrmnt Table 18

RAIEIWAY TRAN3?0UnT TRAUFFIC CARRISD Regie Ciu Re du Dakar-Niger to Regie_du Mali___ _recast 1'______L l95~_'63 9 -l l c J -JWP]bh Jul;Tu 1965 1970-1971 Passengers 00O Total 2,978 3,268 3,420 3,1 I0 2,66, - _ - - _ _ _ Mali traffi.c 425 4L0 351 367 - 380 505 440 501 673 687 557 Passenger/ks MiJl. Total 269 266 316 298 196 - - - - Mali traffic 72 66 70 58 - 5 56 67 5L 55 58 70 Frei;ght tons 000 Total 760 857 paL 817 1,030 - - - - _ Mali traffic 295 3(8 295 300 - 175 66 66 209 222 257 380 Ton,/,, Mill. Total 365 385 396 372 10( - - - - -_ Mali traffic 249 289 300 2'70 - 171 16 20 97 108 128 16 Directiow of freight l/ 000 tons Senegal to Mali 1/ 138 15C8 156 1151 - - - 125 1168 155 220 Miali to senegal 82 90 lO 137 _ - - - 36 o0 55 110 Local traff ic 75 60 37 52 - 66 66 48 31 67 50 TOTAL 295 308 295 300 - 175 66 66 209 222 257 380

1/ Note d'tnformation No. 861, July 1962, 3CEAC. For years 1 956-1 959 inclucLes freight originating in or unloaded in Senegal and originating in or unloaded in Mali, respective2ly.

Source: Regie des Chemins de Fer de l'A*0.F,, du Senegal et du Mali. Note d'Inforsation No. 86., Jul:r i962, BCEAO. Table 19

AIR TRAFFIC iMCVEPiENTS AT EAIAAKO

1955 1956 1957 1958 1959 1960 1961 1962 19h3 196L4 19D5

Planes,, (00 a3r rivalIs)))))) ))) dLepartures ) 2.1 2.1 2.1 2.0 1.6 2.1 2.1 2.,5 ) 2.7 2.9 ) 2.5

Passengers, (1)Ioo arrivals ) 5 ) 3)6 12.7 12.0 13. 0 17.28 20,4 23.7 23.8 departures ) * ) * 6 12.5 12.6 14.1 17.,2 19-,3 22,.3 24.1

Freight (tons) arrivals ) ) 898 )742 )798 264 292 771 773 S,9 784 776 (leparturies ) 5 ) )74 ) 554 424 399 370 424 462 624

Mail (-tons) arrivacls ) ) ) )0 4 4 79 91 61 41 departuries ) 110 145 )161 )159 49 40 33 35 36 38 43

(1) Excluding passengers in transit.

Source; annualre Statistique, Chambre d ue -Lmr ,rce,, d-±.ustrW.e-L de B am ako;. Bulletin Statistique mensuel due Service Statistique. Table 20 TUR'OER SALA1RIESV mTAXrSiOV,RnOAD AND aL' ,wNT IN SELECTED ENTERPRISES (billion francs) Com-i/ Indus- Public /Trans- Insur- 3Cin- merce tries Works -pot 2/ ance - emas - Turnover: 1956 79. 0.5 0.70 11 1957 11.0 0.6 0.9 r. 0.7 13.2 1958 12.8 0.7 0.9 .. 0.9 0.1 15.4 1959 14.8 0.8 0.8 .. 0.8 0.2 17.4 1960 13.7 1.0 0.9 .. 0.8 0.2 16.5 1961 11.6 0.9 1.1 .. 1.1 0.2 0.2 0.1 15.3 1962 11.9 1.1 1.7 .. 1.9 0.2 0.2 o.1 16.7 1963 8.9 1.2 1.6 .. 2.4 0.2 0.2 0.1 14.4 1964 7.7 1.7 2.5 2.0 0.2 0.2 0.2 14.5 Salaries: 1958 0.59 0.13 0.20 - 0.20 - 0.01 - 1.12 1959 o.69 0.15 0.23 0.08 0.18 0.01 0.03 0.01 1.38 1960 0.70 0.16 0.22 0.09 0.20 0.01 0.03 0.01 1.43 1961 0.64 0.17 0.26 0.13 0.23 0.01 0.04 0.01 1.50 1962 0.55 0.19 0.30 o.o8 0.42 0.01 0.03 o.ol 1.60 1963 o.Ih 0.21 0.12 - o.46 0.01 0.02 0.01 1.57 1964 0.41 0.45 0.70 - 0.45 0.01 0.03 0.01 2.06 Taxes: 1958 0.23 0.02 o.o6 - 0.02 - 0.00 - 0.32 1959 0.55 0.04 0.07 0.08 0.03 0.02 0.01 0.02 0.80 1960 o. .9 0. o 0o.8 0.08 0.01 0.02 o.ol o.o4 0.87 1961 0.56 0.03 0.07 o.o8 o.04 0.02 0.01 o.o4 0.85 1962 0 =59 0 .04 0.10 0.02 o.0o 0.02 0.ol o.os o.88 1963 0.83 0.09 0.14 - 0.18 0.05 0.01 0.07 1.38 1Q61n 0.89 0.10 0.31 - 0JM 0.07 n.n n00n7 1iE8 Overhead: 1958 0.58 0.06 0.07 - 0.06 - 0.02 - 0.79 1959 Q.Ao56 r 0.08 0.01 0.08 0.01 0.0nn 0.03 0.95 1960 0.61 0.14 0.07 0.01 0.08 0.01 0.0 0.03 1.03 1961 0.68 0.12 0.09 0.00 0.13 0.02 0.05 0.03 1.20 1962 0.66 0.17 0.08 0.15 0.29 0.03 0.014 0.014 1.145 1963o4l n ,- .18,p =l 0.31 02 o N. c)0. 1.19 .LZ'..JJ 'J.) '.JJ.'I .LL-*'*J - 4 -~4 .-- No. employed Thousands Malian: 1958 1.91 0.77 1.11 - 1.014 -- 0.08 - 14.9 1959 1.90 0.90 0.94 0.12 0.84 0.01 0.13 0.08 4.9 1960 1.65 0.92 0.92 0.13 0.87 0.01 0.13 0.09 4.7 1961 1.40 0.84 1.olz 0.21 o.98 0.ol 0.15 0.10 4.7 1962 1.32 0.80 1.03 0.19 1.00 0.02 0.18 0.10 4.7 1963 1.13 0.87 1.79 0.12 2.30 0.02 0.15 0.13 6.5 19614 1.08 0.95 2.68 - 2.10 0.02 0.11 7.1 1965 0.98 2.35 3.35 - 1.42 0.01 0.18 0.11 8.4 Other: 1958 0.40 0.05 0.07 - 0.06 - 0.03 - 0.61 1959 0.38 0.04 0.06 0.04 0.04 0.01 0.04 - 0.62 1960 0.36 0.04 0.07 0.05 0.04 0.01 0.03 - 0.60 1961 0.24 o.oh 0.06 o.oL o.oL 0.01 0.03 - 0.146 1962 0.25 0.05 0.07 0.04 0.05 0.01 0.03 - 0.50 1953 0.19 0.03 0.06 0.01 0.11 0.01 0.01 - 0.143 196,1 0.18 0.03 0.07 - 0.10 0.01 0.01 0.140 IQc; 0Ki. 0.05 MI 0n09n- - 0.1 0 9 &/ Excluding Somiex.

U/ n nIt1962.it Ex ,cludingCentral Bar-. / Excluding customs duties. Source: Chambre de Commerce, dAgriculture et d'Industrie de Bamako Table ,2I

_'DONETARY SURVEY

(billion Mali. francs)

1962 1963 196h 1965

June -Dec. June S3eo Dec. JuLne et. :tDec. March June S Dec.

Foreign asset,s (net) 2.b 1.1 -o.A -1.9 -2.1 -3.5 -5.8 -6.4 -5.6 -6.7 -7.4 -8.2

ClaimLs on Govrerrmnent (net) 1/ 3.6 6.3 7.2 8.0 8.3 9.1 10.3 10.7 10.6 10.2 11.1 11.9

ClaimLs orB thel econoIf state enter- (ncl. 6 prises) 7.5 7.6 10.3 9,.8 10.3 l1i.6 13.9 15.3 15.L 17.2 1 .L 17.6

UnclaLssified assets 0.6 0.5 0.7 0.6 0.6 JL.0 1.1 0.8 0.8 0.9 1.1 1.0

Total assets 5 Toital liabilities T4.0 15). 17.8 16.L 17.1 21,.2 19.L 20.4 21.2 21.6 21..2 22.3

Honey, 11.9 13.0 15.3 liI.2 )1.6 18.0 16.1 17.0 17.9 18.5 17.5 18.14

Time deposits 0.2 0.h OIL o.L, O.LW 0.6 0.6 0.6 0.6 0.7 0.7 0.7

Capital and reserves : 1.6 1.6 1.L 14 1.5 l1I I.L 1i 1.L 1.4 1. 1. 14

TUnclaLssif ied liabilities 0.2 O.4 0.7 o.W 0.6 1.3 1.3 1.W 1.3 1.0 1.6 1.5

1 Including postal checking accounts.

Sources: DTi, International Financial Statistics, and clata received from BRM. Table 22

ASSETS AND IIABELITIES OF THE BANQUE DE LA REPUYBLIQUE IIJ MLLI Million Mali Francs

1962 1963 1961i 19615 June Dec. June Dec. June Dec. June Dec.

1. Gross foreign assets 2,263 3,563 1,252 1,554 81C) -230 -800 -684 a. convertible 1,823 2,6o6 549 872 386 6i1L 934 682 b. non convertible 439 957 703 638 380 276 666 1,033 c. net IMF position -- -. _44 144 -1,177 -2,400 -2,399 2. Claims on Government 1,1489 4,0:28 4,002 6,556 8,502 9,328 9,696 10, 470

3. Claims on the economy -- 1,882 4,456 8,291 12,595 13,027 14,984 1.5,4L7 4. Claims on banks 5,671 1,9:35 3,273 2,256 1,540 1,687 1,489 1,476 5. Unclassified assets 162 160 19; 263 566e 442 41.9 527

Total assets = liabilities 9,,585 11,568 13,173 18,920 24,0131 24, 2514 25,788 27, 206

I. Gross foreign liabilities 168 1,982 1,493 3,535 4,226 6,1lo9 5,848 7,292 a. to foreign banks convertible - 2653 647 303 410 39 34 17 non convertible 4-414 833 1,240 1,678 1,6()2 1,468 1,415 b. -to foreign residents -in MF -- 1,305 __ 1,958 2,078 4,41.4 4,223 5,606 -in foreign currencies -- -- 13 34 6C 514 123 254 c. unclassified liabilities; 168 ------

II.Monetary liabilities 8205 03 10 1 6 17 13 5467 17 452 116903 a. to banks 199 171 2T20 '77 >1 1, 2 1,037 be to tlhe econorW 7,998 8,132 ,,908 11,537 14,557 13,578 1L4,325 114,742 c. lto government 8 - __ 1,052 1,437 1,025 1,885 :1,142 y. in currency 7,942 8,303 10,024 9,735 11,2714 11,833 12,392 1:1,845 s. :Ln deposits 264 -- 90 3,641 5,887 3,636 5,,060 5,058

III. Timke deposits ------273 464 477 527 397

IV.Capital and reserves 1,208 1,20)8 1,t000 :1,000 1,000 1,OO 1,000 :1,000

V. Unclassified liabilities 1 75 566 736 1,192 1,199 961 1,614

Sources: IIMF, International Financial. Statistics and data surpplied by BRM. Table 23

ASSETS AND LIABI:LITI:ES OF CONMEICIAL BANKS Million Mali Francs

1962 1.963 19649_ 196_ June Dec. June Dec., June Dec. March June (ct. Dec.

Cash 199 231 218 732 1;084 790 912 1,186 801 926 1/ Foreigni assets 1, 840O 58 73 39 19 26 46 12 11 14

Claims on Government 1,079 1,715 2,9543 2,13( 1,365 1,736 1,530 1,4L8 6 1,,665 1,684 2/ Claims on private sector 7,460 5,729, 5,855 2,00:L 2,018 2,219 2,094 2,198 2,204 2,213 Unclassified assets 406 308 461 337 459 442 427 _,02 563 440 2/ 3 Total assets-liabilities 10,984 l,04c0 9,551 2,238 4,944 5,213 5,009 5, 384 5,244 5,277 2/ Deiand deposits 3,319 4,186 4, -716 ;2,367 2,792 2,773 2,816 3,:259 2,927 2,996

Tinie deposits 230 3691 393 12'3 147 149 151 156 296 262

Governzment depDsits -- 244 387 -- -_ _ _ *_ _ __ 3/ Foreign liabilities 1,142 508 205 164 91 64 65 48 59 44.

Credit frcm Ceatral Bank 5,671 1.,908 3,1L96 :L,743 1,454 1,667 1,525 1,1476 1,426 1,435 4/ of which advances (44) (272) (2,591) (L,743) (1,j45) (1,173) (1,030) (935) (935) (1,426)

Capital annd reserves 407 391 1411 507 360 369 362 '363 365 357'

Unclassifiied liabilities 215 435 243 335 100 1591 90 82 171 181.

Source: ITMF, International Financial Statistics. 1/ Of which h,oldings of the EPf(D, MF 1,741s million. 7/ The sudden decrease in claims on the econcoy and in deposit liabilities is due tc) the fact thnat in July 1963 the accounts of the state enterprises were transferred from the commercial bani:s to the central bank. 3/ Of which liabilities of the BIMD, MF 487 million. ~/ fiAaost entirely advances t,o the BF'D. Table 24

CP?EZDIT TO THE PHI 'lATE SECTOW4/

Billion Mali Fra.ncs

1962 196 3 1964 1965 June Dcc. June Dec. June Dec . M\arch June OcL . Decc.

Short-term credit 5. 95C 5 .90 8.58 7.91 lo. 6b4 11.55 11.58 13.90 13.14 lb.72

Banks 1.18 3,31 4.46 1.21 1. 2h 1.h7 1. 35 1.46 1.49 1.51

Rediscounts at, BIM 4.77 0.96 __ *- __

BRIA (Direct credits) -- 1.63 [t.13 6.6'3 9.40 10.08 1D.23 12.144 11.65 13.21

Medium- and long term credit. 1.51 1.71 1.73 2.38 3.97 3.69 3.79 3.26 3.31 2.90

Banks 0.66 0.78 0.80 0. 79 0.77 0.75 0.Y7t 0.73 0.71 0. 70

Rediscount,s at BNl o0 85 0.75 0.60

BTh (Direct credits) _ 0.18 0.3:3 1.59 3.20 2.94 3.05 2.53 2.60 2.20

Total 7.416 7.61 1]0.31 L0.29 14.151 15.24 15,37 17.17 16i445 17.62

1/ Incl-uding state enterprises.

Source: IMIP, Interniational Financial Statistics and additional data supplied by the Baxique de la lRepublique, du Mali. Table 25

NEZ CURRELENCY ISSUED Million Mali Fra.ncs

Increase over Increase over Increase over corresponding corresponding corresponding month of month of month of 1962 1963 prcediarear 19614 preceding year. 1965 eceding yea;r

January 9,338 .. 10,959 1,621 11,2ti4 285

February 10,016 1:L, 295 1,179 1.2,5Lo 1, 745

Miarch 10,153 -- 1:L,398 1,245 1.2,611 1L,21.3

Apri)l 10,091 -- 11, 400 1,509 1.2,399 99.9

May 10,089 .. 11, 416 1,327 12,535 L,119

June 10,0214 11,:274 1,250 12,392 1L,118

July 7,94.2 9,81.1 1,869 1:L,117 1,306 12,013 896

August 7,937 9,578 1,6141 1:L,365 1,787 11,915 5510

September 7,92i 9,479 1,555 11,34o 1,861 ]1,7'98 458

October 7-902 9,55;3 1 651 1:l ,n2 1,449 11,6S)8 6o6

Novzfber 7,806 9,441 1, 635 1:L,370 1,929 11,608 238

Dec ember 8,303 9,735 1,1432 1:1,833 2,098 1.1,845 12

Source: Banque de la R6publique du Mali Table 26

PCSTAL CHECKING SYSTEM4

Billion Mali Francs

1(962 1963 _ 1964 March June Sept. De c. MaUrch June Sept. Dec. March June Sept. I c.~' Post Office deposits

Private sector o.74 0.62 0.38 0,71 0.76 o.68 o.64 0.70 0.60 o.64 o.6c9 o.64

French Treasury 2.09 0.4L3 0.22 o.60 -- 0.01 0.01 -- 0.01 --

Banque de la Republ.iqueX du Mali

ERM account with Postal Checking system ...... 0.03 0.10 .. 2.01 1.70 3.98 3.90 3.5c9 3.42

1965 1966 Ma rch JunLe 7e Oct. Nov. Dec. Jan. Feb. Plarchi Post Office deposit,s

Private sector O.659 0.90 O.74 0.77 o.68 0.71 0.89, 1.25

French Treasury -- 0.03 0.15 0.08 0.21 0.16 0.25

Banque de la Republique du Ma'li

;:E accmvntiuth Postal Checking system 4.1,3 4.45 4.86 4.90 5.10 5.21 5.59 5.64 5.79

Sou;rces: Banque de la Republiclue du Mali, International Financial Statistics. Tabl e 2 7

CONVERTIBLE FOREIGN EXCHANGE HOLDINGS

Million NIali Francs

1962 1963 1961h 1965

Januarv 1.660 171L 67i

Pebruary 732 89 279

Mnrrch 729 16 197

Anril 33 -1),A 350

Tvy-r 2739 -96 290

June 11 -54 ~~~~~~~~~~~822

Tuly I9 =42

A-gust,, ~A.L 178 800-1nnOO 7f

0 ep elu-- I uet: u * uu tI7

Oct,obuer 2,19 n -13 698 43

Hovenmber 2,486 -107 4h6 380

December 2,171 573 612 -

Source: :Data sup-pliead Iy the;-5l UoVer.L,Ue t. Table 28

BAIANCE 0]!OBT-LATERAL CLEARING ACCOUNTS Million ]Mali Francs Swing credit IL962 1963 19614 1965 limits June Dec. June Nov. June Dec. June Nov

ALgeria 500 - -11 -117 -2J19 Bilgaria 50 -36. 0 -23.6 -15. 2 -13 -1:3 - 711 China (People's Republic) 500 -25. 6 -220.8 -106.9 - 257 - 294 tl71 -319 Cuba 75 t 2. 5 .7.9 .13.5 .73 9 .15 -151 Czechoslovakia 500 .3!58.4 -211.0 -247.0 -330.0 -.304 -12:2 -142 -52 FgLstern Germarny 1]25 :L1.5 t 0.2 -19.0 -16. 2 -1 tl'2 ,23 t14 Ghana ;250 t147.2 t280.0 .426.1 4286.1 -77 -50 t297 .700 Guinea 250 t200.0 t:l79. .t191.2 * 69.9 .169 t16o t156 .155 mingary 50 t7.3 t147.6 .148 t 73 t 2 -6 Morocco 205 - 4.7 -143.7 -367.0 -.451 -358 -415 -423

North Viet-Nam 50 1.4 t5.0 *7.4 .11.0 t12 *13 t2 .5 Poland 60 -6.6 -53.7 -82.7 -18.9 -27 -1114 -64 -71

Senegal 1]00 -99.3 -29 -11) -90 -69

U.A.R. 200 13. 7 435.0 .23.8 .28.9 -99 .9 -30 *14 U.S.S.R. 500 .161. 9 t16.0 .38.9 -61.4 - 171 -52:2 -572 -362 Yugoslavia 50 -21 .4 -82.5 -96.3 -93.7 t 2 -7 L.291 - b1

Total of credit (4) balances 3,865 .894.1 .517.7 t702.6 .557.0 +404 t2765 .666 +1,237

Total of debit (-) balances 28.0 -413.5 -833.1 -1,108.7 -1,429 -]1,60L -1,468 -1,511

Source: Data supplied by Mali Government.

1/ Sign (t) means balances owned by Mali; sign (-) means balances due frcm Mali.

Note - Mali aLso has bilateral paymenits agreements with Albania, Canmroon, Mauritania, Niger, North Korea, runia andl Tnisiia but no transactions take place, Table 29

SU14iMRY OF hALI GOVERNEENT BUDGETS' BRi1ion INMli Francs

Cetral Gov' Current Budget Total Budget 1/ .R5v1'rnS1plusII5-z S-urplus.3 irn1I i Receipts Expenditure Deficit Receipts Expenditure Deficit

1958 5.42 4.54 +o.88 6.28 5.94 +O-34 1959~~~~~0 r.8 I,3 +0.55rl 6.70 6e8 +0 1960 6.64 7.66 -1.22 6.44 7.66 -1.22 1961 8.79 12.09 -3.30 8.79 12.09 -3.30 1962 9.78 13.42 -3.64 9.78 13.42 -3.64 1963 7.79 9.69 -1.90 0o.94 12067 -i.73 1964 2/ 3,86 5.61 -1.75 5.98 7.11 -1.13 ,i nt 1. /Zr' _ rl ___ -yu4Wu7 lU. 5;d 1()o -(5-)Ul 1,3.U ( ljo4) _Ue D 1965/66 1'st quartuer 2.16 2.50 -0-34 2.43 3.05 -o.6`2 Cumulative deficit 1960-62 -8.16 January 1963-March 1966 -5.17 O1960-Harch 1966 -13.33 Financing: 1960-1962 Short-term advances from French Treasury +3.05 Use of deposits of postal checking system +2.51 Central Bank credit +3.00 Change in cash balances (increase - ) o.4o +7;16 Cumulative deficit January 1963-March 1966 -5.17 Change in net claims of banking system on Government 3/ +5.o6 Other sources +0.11

1/ Includes regional budgets 2/ Interim budget Jan.l - June 30, 1964, and first 6 months of fiscal 1964/65. 3/ This change in net claims of the banking system on Government represents not only the source of finance of the ordinary budget deficit but also credit made available to finance development expenditure.

Source: Data supplied by the Mali authorities. Table 3Q

CENTRAL GOVERNMENT RECEIPTS

(billion francs)

1960 1961 1962 1963 196hl! 196h/65

Act.ual ActLal Act-ualh ActuaL Actual Actual

Direct taxes l.o 2.143 2.93 1.L43 1.9L 1.71 Indirect taxes 1.09 4.06 5.34 5.143 5.48 6.88 of wfhich: customs duties -- ) 0.22 ) (0.18) (0.08) fiscal import taxes -- ) (2.75) 3.L48 ) (3.67) (2.19) (2.98) fiscal export taxes (0.12) ) 0.21 ) (0.21) (0.23)

0.12 2.75 3.91 3.67 2.91 2.29 turnover & production tax (0.97) (1.17) (1.23) (1.46) (2.28) (3-13) other -- (0.14) (0.20) (0.30) (0.29) (0.46) Property income and fees 0.23 0.12 0.14 0.19 0.16 0.08 Miscellaneous revenue 0.74 0.57 0.55 0.32 0.24 0.19 Subventions 1.14!! ------Receipts from previous fiscal years -- o.63 0.86 0.40 0.90 1.66

Total current receipts 5.09 7.81 9.68 7.77 8.07 10.52

Loan repayments 0.33 0.08 -- 0.01 0.01 -- Capital subventions 0.16 ------Other capital receipts 0.87 0.90 0.10 -- --

Total capital receipts 1.36 0.98 0.10 0.01 0.01 --

Total budget receipts 6.44 8.79 9.78 7.78 8.08 10.52

1/ Renresents Mali 's share of the import taxes collected in Dakar. 3/ Represents Mali's share in the joint Reserve Fund of the former French West African Fedpration. 3J Interim budget, January 1 - June 30, 1964 and first 6 months of fiscal year 196_/65.

Source: Republic orf mlm" T:hwide N+An-l7 Exercices 1960 - 1,964/65. Data supplied by the Mali authorities. Tatble 31

CENTRA:L G0; L.' - i. FX?ETTUREY

Billicn Francs

1960 19651 1962 1963 1 f'L' 2 196l4 /6 Es timates 1/ Actua:L Actual Actual Cen. To.jp Act4ual Ac.til: Actual Adminiistration 1.51 2.65 OJ 2.49 2.9>2 2.33 2.O7 2,,2 Defense (.74 2.14 :2.37 2.40 2.40 2.33 2.32' 2,52 Economic services 0.5)4 0.182 0.95 1.00 1.32 1.04 0.94, 0.95 Works, transport, etc. .30 0.54 0.40 0.33 0.37 028 0.25 0.,31 Education 1.00 1.36 1.58 0.67 1.58 0.71 1.31 1.65 Health (.74 1.03 1.26 0.92 1.26, 1.01 1. 0oL 1.,07 F'ublic debt (.03 0.02 o0.08 0.05 0.05 0.10 0.25 0,12 Grants and refunds 0.55 o. 68 0.81 0.22 0.64 0.25 0.36 0,,45 Subsidies to State enterprises -- o.35 0.31 0.50 0.5° 0.58 0.13 - Miscellaneous 0.19 0.;21 .. 0 0.0°4 0.08o 0.07 0.0o, 0.18

Total current expenditure 5.60 9.80 10.88 8.63 11.13 8.90 9.52 9.77 Of whichi: Wages and salaries 3.28 5.:14 6.22 5.31 *e .- No. ezaployees 00() '9. 88 13. 99 115.40 10.97

I,oans and advances (0.11 o.;25 o.oL4 0.05 0.05 0.05 0.03 0.06

Investment expenditure :l.08 0.90 0.07 -- 0.20 -- -- Contribut-ion to Plan (.86 0.90 :1.69 0.50 0.50 0.04 -- Contributi on to Road Feun(d 0.24 0.72 0.72 0.70 0.9 7 0.,70 Total capital expenditure 2. 05 2.29 :2.52 1.27 1.47 0.79 1.00) O,,76

Total budget expenditure 7.66 12.09 13.42 9.90 12.60 9.69 10.552 10. 53

Source: Republic of Mali, Budget National, Exercices 1960-1964/65 Data supplied by the Mali authorities. 1/ The difference is attributable to the regional budgets 2/ Int,erirm budget January 1 - June 30,, 19654 and first 6 months of fiscal year 196)4/65. Tabl-e 321

EXPEND'ITURE UNDER FIRST FIVE YEAR DETigOP1IIET PLAN Billion Mali Francs

Estimates Actuial * ~~~~~~~Original Revised : amount :Percentage copqleted

:1961 1962 :. 1.963 : 1964 1965 : Toal : 196 3/64h 1964/65" 1961 1962 :9611 :1962 taLte enterprises: It : : :

Agric-ultuire :1.6 1 i.h : 1.4~ : 1.14 1.4 : 7.2 : 9.2 : 2.0 : 0.8 1.-5 1.h4 94~ : 96 I:ndustries :0.2 :2. 8 : 2.5 : -3.1 2.,5 : U.2 : '14.4 : 2.h : 1.0 :0.2 :0.1 : 100 : 1L ElectriciLty :0.1 :0.2" : 0.8 : 0.2 0. 2 : 1.5 1.9 : 0. . .1: -:10 0

Conmerce : -:0. 2 : 0.2 : 0.1 : 0. : 06 : 0.6 : 0.h : 0.1 : :0.1 : - : 57 Transport :3.8 :0.6 : 0.9 : 0.6 :1.0 : 6.9 8.8 : 0.5 : 1.0 2,.6 : 0.L4 68 : 60 T'ele comununic atioins : .j: : 0.2 : 0.3 :0,.1 : 1.10 : 1.3 : 0.2 : - :0..h : - :100 : 100 HlousiLng :0.3 :0.5 : 0.6 :0.6 :0.6 : 2.7 : 3.4 : 0.5 : 0.2 :O..3 : - :100 : 0 Services :~~~~~~~~~~~0.5 : 0.4 0.7 :0.6 :2.2 : 2.8 : 0. . .:02 -6

Tota:l 6.4 : 6.2 :7.0 :7. 0 : 6.5 :33.2 : 2.b : 7.0C 3.7 5.i : 2.5 : 80 40h the r: It It it It:

Other agricu:lture :1.2 : 3.2 :2.9 :2. 9 :3.0 :13.2 :16.9 : 2.3 : 1.5 0.8 :1. 6 : 66 : 50 Rtoads :1.0 : 2.5: 2.5 : 2.5: 1.9 :10.-3 : 13. 2': 1.7' : 3.3 :0.9 : 1.4 98 : 55 Rtiver- works :0.1 : 1.0O 0.9 : 0.8 :0.7 :3.5 : 4. L : 0.7 : 0-.7 0.1 : - : 94 : 0 O)ther infLras-tructur-e: 0.6 : 0.8 :0.8 : 0).7 :0.5 :3.4 4 .3 : 0.5c : O.,5 :0.3 : 0.3 4 9 : 4 Mlininig suirvey 0. L,: 1.5: 1.5: 1. 5 1.0: 6.0 7 .7 1. .6 0.4 : 1.2 :100 : 76 Public administration :0.6 : 1.5 0.8 :0.8 : .th 3.1 4 .0 : 1.2 OJ3 0.6 : 0.8 : 88 : 53

. - Social services -,: - :-: -:0.9: 1.3: It - : 50 : 29 Educzation: 0.2 : 0.5: 0.6 ~.01 0.9: 3.2 4[.0 0.: 8 0. 0-8 :0.1 0.3: 97 : 71 Health :0.3 : 0.-5: 0.3:0.2:0.1: 1.4 1. 8: 0.2 : - :0.2 :0.1: 910: 31

Granid Total :10.8 :17.7 :17.3 :17.h4 15.0 :78.2 :100.0 :15.9 c: 12.4 8.5 :8.2 : 8C 47 urce: Data supplied by Kali Government. Table 33

FINANCE OF DE7EIDOP'T.NT PLAN 1961-:1965

Ac-cual Preliminary Estimates 1961 1962 191964/65 1965/66

External resources

Fedom 0.5 1.4 1.2 (1.0) (2.0)

France 1.2 0.7 0.9 (05) (1.1)

Western Germany 0.8 0.2 (0.2) (0.6) (0.2)

U.S. (A.I.D.) - 0.4 (0.3) (0.4) (0.3)

Clearing A/C countries 1.1 1.3 (5.0) (4.6) (3.0)

Other o.L -a Total 4.0 7-6 7.W3 0.0 Of w'rhi ch Tnns 3.. 1.8 5.1 4.6 3.0 Grants 1.0 2.2 2.5 2.5 3.6

Domestic resources

Current budge/c 0.1 1.41/ - _

Reserves, Government 2.6 - - -

Fonds Routier 0.7 0.6 0.5 0.9 0.9

B.R M. credits 0.7 1.7 0.8 0.9 _

National loan 0.2 0.3

State enterprises - 0.1 1.3 1.3 0.5

Counterpart U.S.S.R. - - --

Other 0.2 0.2 - _ _

Total 4.3 4.2 2.9 3.1 1.4

Grand Total 8.6 8.2 10.5 10.2 8.0

1/ In practise this increases an existing government deficit and was financed by increasing government's external short term obligations. Table 34

INVES'NDl' CREDITS OFENED UNDER FIDES (19149-1960) and F.A.C. PROGRAMS

Mi'llion Mali Francs

… _- ,,,- *--_--S--___ FIDES FIDES F,A.C : F*A.C. F.A.C. F.A.C. F.A.Ce F.A.C. l*49-1955 L954.-196o ' L959 * 1960 19611 s 1962 ' 1963 * 1964 T

General Studies .. , . 108 157s 55 -- 365 ]'rodlition , 4,,210 2,528 1o,060 . ,o6i 750 236 . - 158 . 9,986

:Enfrastructure 3077 3 50 7,705

Social Services . 8,526 120 205 5 15. - . 93 2,788 Tota1 : 8,813 : 6,652 ' 1,318 : 1,837 S 8,20 236 : 917 : 251 : 20,844

Funds diisbursed : s : F.A.C. Grants : .. : .. s . . : 315 : 233 : 347 :

Advances : . . : ...... : . 68 : 153

* s * ~ ~ ~: ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~*

1/ 1n 1'963 the finance, mainly fronn Freinch officia:L funds, of the Sotuba hydro-electric project, at a total estirnatedL cost of '2.4 billion Mali. FraLncs was approved; this included a grant from F.A.C., of 220 million Mali Francs, a loan from F.A.C. of 630 milli.on liali Francs. There Was in aiddition a loan f'rom CCCE of 850 mil:Lion Mali Francs and. a C.O.F.A.C.E. guarantee of a barn credit for 670 million Mali Francs.

Source: Fonds d'Aide et de Coop6ration, Paris. Table 35 1/ 2/ FINANCIAL AID COiTTlTTEDP-l) DISBURSED BY F.E.DL- M4illion Ilali Francs Total Initial Total Actual Finance approved: 1960 1961 1962 1903 1961 1965 om tments Disbursements

Agriculture 72 638 - 510 310 327 1,857 1,012

- 67.8 Industry 44o - - 1 441h

Roacls and bridges - 1,8, 1 159 - 90 917 4 ,017 2,723

1{ea-Lth 92 53 -- 83 4k0 268 158 Education 23 3B3 2,121 - 1.97 2, 724 :1,700

Total 187 3,3165 2,280 510 483 1,3,82 8,207 6,271

Funds disbursed - 133 1,313 1,230 3, 595 5,271

2'/ 7irst and Second European Development Funds of the EEC

Source: SituatioDn des projets en ex6cution EEC Comrmission. Table ,36

FINANCIAL AID APPROVED AIlD DISBURSED BY US-*A.I.D.-

(Million hali Francs) (Est.) C ounterpart FY FY FY FY FY FY Fund 1961 1962 1963 1964 1965 1966 Projects

Projects (Grant) St;t;E s 5.9 - - - - - Agriculture 1.2 32.4 43.0 52.6 1-9.3 27.2 :2.3 Education 5.9 349.3 117.8 160.3 203.3 239.6 5L}.9 Health 5.2 11.9 48.2 - 9858399.3 Village Development - 8.4 18.5 26.7 1-5.3 9.9 1.3 General Expenses 22.2 63.5 53.1 48.2 _37.5 50.4 69eO Total 7 77 70 3 (4 -7 E 9 7.5

Loans Agriculture (Vet .]Lab.) - - - 271 . 7 - - 43.8 Education (College) - - - 518.7 _ _ 169.5 Total 75. 213.3

Miaterials & Supplies Petro1leum Proiu-ct,s 418.2 - 161.8 161.8 Vehic:Les 77.6 - - - - - Road Building Equipment S69.2 96.3 11.1 12.4 4.7 0 , 3 LeOL)4I, - - - - - 2]L14o9 Total 5O 7 T-72 9 71;7 77 T 7 (.3

Grand Total 605.9 561.8 453.5 1,252.4 379.4 64o.8 34:L.1 Di.sbur-sements 77, f5 7.0 419.9

1/ Agency i'o-rUTMernational DeVeopm-ent of the United States- Source: US-A,1I,D., 'Iasbi.ngton. Table 37

ESTIMATE OF BALANCE OEf PA'YIENTS

(Adjusted estimates, in billions of MF)

Credits _ 1959 1962 1963 19s64 1965f Debits 195C9 :1962 1963 1964 14.3 13.6 Exorts (f.o.b.) 9.8 8.8 8.4 8.1 8.]. Impots 12.1 14.0 Uncontrolled (Estimate) 6.6 5.5 4.3 4.0 4.() Uiiitro1led te) 1EstiL2.13 3.0 .3 12.0 Controlled (Adjusted) 3.2 3.3 4.1 4.1 4.1 Control3d (Adijusted) 9.8 11.0 Ll.0 11.6 Controlled (cif Dakar) )9.8 9.6 9.5 9.1 ServiceSl - 1.3 1.3 1.3 0.9 Inland freight, etc. ) 1.4 1.5 2.5 Miselganeous itourism, etc.d ) - C0.3 0.3 (0.3 0.:3 Controlled (Adjusted) 9.8 1l1.0 11.0 1. 6 Foreign ErLbassiest expenditures Investment goods) on credit ., .. 4.2 4.4 in Plali .. 1.0 1.0 1.0 0.6 Consumer goods ) on grants .. .. 0.8 2.1 Other, maLinlLy consumer goods .. .. 6.0 7.1 Private Transfer Payments 1.5 1.2 1.8 2.1 2.1 M(ilitaLry pensions .. 0.9 1.1 .. .. Balance of trade - 2.3 - 5.2 - 5.9 - 5.5 Private transfers 1.5 Cl.3 0.7 . *. Services 0.2 1.2 2.3 2.8 Official TransfefrPa nts ~-Iportatipon 1/ I'II n n 0.8 ELnd__oans ~ 5.3 3.9 6.8 8.7 9.2 ForeiLgn Expenditures n.e.s. Foreign grants - of Mali Government 0.2 0.8 0.8 0.6 - technical assistance 1.5 1.0 1.2 0.9 1.5 - of enterpritises .- 0.4 0.5 ) - capit-al 3.6 1.9 1.9 2.9 3.L ForeLign invesitment project studiLes .. - 1.0 ) 1.4 Foreign loans 0.2 1.0 3.7 4.9 4.6 Private Transfer Payments 4,.3 1.0 1.6 2.2

Mon,etarg Movements 6.7 3.5 4.2 2.14 Official Transfer Payments and Loans BecreSLse in reserves 1.1 2.0 o.4 -0.7 Debt Repayments 0.6 1.4 1.8 Increase in liabilities BCIAO facilities 5.6 _ - - Non-Controlled Trransfers .. 2.5 1.0 1.5 Clearing accounts - 0.7 (.8 -O.:L I.H.F. credit - 0.8 1.8 2.0 Errors and Oission.. 2.6 1.2 2.5 Other Total receipts 16.6 21.9 21.8 21.14 22.7 Total payments 16.6 21.9 21.8 2L. 4

Soulrces: Data supplied br Banque die la Republique dii Mali 1/ Rallway freight on eaxports (border to Dakar), hire and maintenanct Camptes; Econamiques de la Republique du Mali rolling stock, disbrsevrients abrcod of transportation companies. Tahle 3B

4,TIMAT1;D 12DE BY bRGIOINS BiLLion Mali Frartcs

Imports (1) Kport,s Balance of Trade

.959 1961 .1962 1 9,LL.j 1964, 1959 1.961 _162 LJ6 1964 1962196 1963 :164 France 7.1 5.8 4.3 2.8 2.9 2.6 .. 0.9 1.0 0.2 -45 *- 3.4 -1.8 -2.7 Rest of franLc zone 3.8 2.6 3.1 3I.5 3.8 4.1 .. 4.4 4.3 4.4 +0.8 .- -1.3 +0.8 -0.6 Rest of cozmmon market, - 1.1 0.9 O.8 0.6 - *- - 0.2 - - * -.o.9 -0.6 -0.6

Ghana/Guinea. 0.5 1.3 1.3 1,.4 - 2.:5 *- 1.4 1.3 1.0 +2.0 .. -0.1 -0.1 +1.0 Rest of sterling area - 0.3 0.4 0,,6 0.4 - *- 0.1 0.1 0.1 - .. -.0.3 -0.5 -0.3 Dollar area - 0.3 0.5 0,.4 0.3 - .. _ - 0.2 _ - -.0.5 -0.4 -0.1 Rest of OECD area - 0.1 0.1 0,1 0.1 - .. - - - - .. --0.1 -0.1 -0.1 Clearing account countries - 1.8 1.8 3.2 3.6 - .. 2.0 1.6 2.2 - .. 4-0.2 -1.6 *-1.4 Rest of world 0.7 0.1 0.2 0.3 0.2 0.1 .. -o - *- -0.6 . -.0.2 -0.3 -

Total 12.1 13.4 L2.6 12.,9 11.9 9.8 10.0 8.8 8.4 8.1 -,2.3 -3.4 -3.8 -4.5 -3.8

(1) In 196]L & 1962 before adjustments for land freight on imports betiween ports and Mali frontier.

Soixrce: Com.ptes Economiques de la Republique du Mali. Annuaires Statistiques, Chambre de Commerce,, d'AgricuiLture et d'Industrie de Barnako. Data sup>plied by Mali Government Million MTali Francs

1 77 ±7UIn4J I '7tJ- -I 7UL

Food, orink and tobacco 2,298 2,h0I 2U,186 1,765 1,540

Cotton ana textiles ±,o)o ,(40 L,OU ±,(U4 1,5O

Other consumer goods 2,157 1,579 1,505 1,307 )

R-aw materials and intermediate ) 1,930 goods 717 1,111 1,251 1,474 ) 2/ 2/ Transport eauipment - 1,700 800 778 1,0o9

Other capital goods 2,145 1,921 :1,467 1,686 2,047

Fuel and lubricants 705 _439 573 517 567

Total 9,680 11,886 9,585 9,453 8,889

Other not recorded 3/ _2h3l 1,500 3,0 3,250 3,000

Tot;al imports 12,111 13,386 12,585 12,703 11,889

11 Imnorts for 1959 are estimated from statistics covering bouh Senegal and MIali.

2/ ITmports of Tplae and lorries *nder supplier's rerfdi ts.

3/ Tmnnrts nf cnnsimier goods and canital goods wi thout financial counterDart. including illegal imports.

Source: Comptes Economiques de la Republique du Mali. Annuaires Statistiques, Gh -beCom'merce, d'Agricl-i1tre et d'Industrie de Bamako. Data., supljr,rvn 1-by f-lrov---e,rra-, Table 40 1/ PRINCIPAL EXPORTS

1959 _ 1961 1962 1963 196L Q Y.~ TJValue Qy. Qy Qy QY 000 Ail:L.MF (00 MiL1. M:R 000 Mill..MF 000 M'Ii11.MF 000 Million iF

Groundnuts tonS 56 2,260 50 (2,4oo) 41 1,830 )42 1,8h8 43.5 1,915

Cola If1i4 1,300 - 15 - - -

Cattle head 115 2,128 (130) (2,800) (110) (2,800) .. 2,750 - 2,500

Sheep and goats 350 735 (270) (600) (260) (70o) .. 1,000 1,153 Other live Eanimals 6 79 - 80 .. 180 .. l,-o*o

Fish tons :L2 1,500 *. 1,500 .. 1,5CO .. 1,500 1,000c

Rice: " 17 5162 .. 330 17 480 .. 158 1.0.8 317

Milf.et 20 400 - 400 10 200 .. 72 1.7 36

Cotton seed 3 109 - - - .. 66 4.0 63

Cotton fibre, 1 1:26 4 650 3 64o 5 761 7.7 1,1L6

Other exports * 591 .. 925 550 1,590

Total 9,790 9,670 8,780 8,345 8,100 of wh:ich:1aecorded .. 3,200 3,280 3,095 4,126 Estimated .. (9,790) 6,470 5,500 5,250 3,974

1/ Exports for 1959 are es-timated throughout.

Source: Data supplied by the Mali Government. Cornptes Economiques de la Republique du Mali. Table 41

ESTIMATED FINANCIAL GAIN TO MALI FROM SALES OF GROUNDNUTS AT GUARANTEED PRICES RULING ON FRENCH MARKETS _/

.L/)1 ±yUJ. ±)'t. ±U) ±1UL4 .L7U

Purchi.ases 000 tons O'80.9 833e4 66(a 7(3@ 41 U

Exports:

France i 56.o 10.3 8.2 14.0 2/ .. Czechoslovakia " _- 20.0 10.3 ).

U.S.S.R. U - 20.0 13.4 j 28.0 0 Other U II 10.1 ).

Total " 56.o 50.3 42.0 42.0 43.0 25.0

Export price f.o.b. MF/kg 3/ 44.0 47.5 47.5 46.8 45.0 44.0

World market price MF/kg. 4/ 45.0 48.5 42.-3 43.4 41.05 51.1

French price in MF/kg. 5/ 49.25 51.7 52.5 51.85 51.50 45.25

Difference MF/kg. 6/ 4.25 3.2 10.2 10.45 9.45 -5.85

Gain to Mali Million MF 238 160 418 355 406 7/

1/ rilor to the crop year 1960/i961 Mali's total exports were sold on the rrench market at a guaranteed price; thereafter, Mali's exports were consciously directed towards the Sino-Soviet BLoc but at prices based on those guaranteed in the French market. 2/ 887o to clearing account countries. 3/ f.o.b. West African port. 4/ c.i.fo London. R/ c.i.f. French port. 6/ French price less world Market price. 7/ In 1965, World market prices of groundnuts were higher than French guaranteed prices and it is not known whether the latter have been used as the valuation basis.