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Burkina Faso AFRICAN DEVELOPMENT FUND BURKINA FASO COUNTRY GOVERNANCE PROFILE OPERATIONS DEPARTMENT UNDP RESIDENT REPRESENTATION: BURKINA FASO WEST REGION (OCCW/ADB) JULY 2005 SCCD: G .G. TABLE OF CONTENTS Page List of Boxes and Annexes; Acronyms and Abbreviations, Executive Summary i-ix I. INTRODUCTION 1 1.1 Preamble 1 1.2 Key Elements of Good Governance 1 1.3. Methodology 2 II DIAGNOSIS OF THE GOVERNANCE SITUATION 3 2.1 Accountability at the Political Level 3 Administrative Accountability 6 Accountability in Economic Management 7 Accountability in Public Finance Management 9 Accountability at the Level of Budgetary Control 11 Public Accounts and Debt Management 13 Private Sector and Accountability 14 2.2 Transparency 15 Transparency in Politics 15 Freedom of the Media 16 Transparency in Government Procurement Process 16 Transparency in Public Expenditure Implementation Process 18 Access to the Public Information on the Government’s Economic and Social Priorities 20 2.3 Stakeholder Involvement 20 Civil Society Involvement 20 Gender 22 Security of Persons, Protection of Returnees and Refugees, Child Trafficking 23 Land Tenure 24 Decentralisation and Deconcentration 25 Public-Private Sector Interaction 26 Regional Cooperation and Integration 27 2.4 Legal and Judicial Reforms 27 Legal Reforms 27 Judicial Reforms 28 Alternative Settlement of Disputes: the Ombudsman 29 Legal Framework and Environment of the Private Sector 30 2.5 Fight against Corruption 30 III. EVALUATION OF THE NATIONAL GOOD GOVERNANCE STRATEGY 32 3.1 Presentation of the Key Elements of the Strategy 32 3.2 Examination of the Pertinence of the Strategy in Light of the Diagnosis 34 IV PRIORITY AREAS OF GOVERNANCE AND IDENTIFICATION OF 37 POTENTIAL AREAS OF BANK INTERVENTION 4.1 Areas that may be Considered Priorities for Improving Governance in Burkina 37 Faso 4.2 Areas of Intervention of Development Partners 43 4.3 Potential Areas of Bank Intervention 45 4.4 CGP Recommendations Monitoring Framework 48 V CONCLUSIONS AND RECOMMENDATIONS 49 5.1 Conclusions 49 5.2 Recommendations 50 LIST OF BOXES 1. The Constitutional Council 2. Study on the Public Expenditure Management (CFAA) 3. Burkina Faso: Management of HIPC Initiative Resources 4. The Audit Court 5. Child Trafficking in Burkina Faso 6. The Trade Union Movement in Burkina Faso 7. The Land Tenure Issue 8. The Burkina 2025 Study and Long-term Governance Scenarios LIST OF ANNEXES 1. Legal Framework of Good Governance 2. Burkina Faso: Historical Background 3. Multiparty Politics in Burkina Faso 4. Prudential Provisions Applicable to WAEMU Banks 5 Management of the Cotton Sector, the Public and Private Sector 6. Child Trafficking – International and National Law 7 Regional Cooperation and Governance 8 The Land Tenure Issue 9 Comparative Socio-economic Indicators 10 WAEMU Convergence Criteria 11 Logical Framework of the PRSP Implementation Schedule for the 2004-2006 Period 12 Matrix of CGP Measures and Actions in Burkina Faso 13 Bibliography 14 Donor Intervention in Governance (in million currency units) This report was drawn up following a joint governance profile preparation mission of the Bank and UNDP to Burkina Faso from 2 to 22 December 2004. The mission was led by Mrs. S. CONDE, Chief Economist OCCW/ADB and comprised Mr. M. LABIDI, Consultant, OCCW/ADB, and Messrs. L.IBRIGA and M.SOW UNDP national consultants. Questions on this profile should be referred to Mr. A. ZEJLY, Acting Director OCCW/ADB, Ext. 2127 and Mr. G. CHARPENTIER, UNDP Resident Representative. i LISTE OF ABBREVIATIONS ADB African Development Bank ADF African Development Fund AFD Agence française de développement (French Development Agency) AFRITAC IMF’s Africa Technical Assistance Centre AIDS Acquired Immunodeficiency Syndrome APRM African Peer Review Mechanism ASAP Agricultural Sector Adjustment Programme BCEAO Central Bank of West African States BSONG NGO Monitoring Bureau CAS Country Assistance Strategy CBMT/CFMT Medium-term Budgetary (fiscal) Framework CC Audit Court CCA Common Country Assistance CCl Constitutional Council CD National Decentralization Commission CDP Congrès pour la démocratie et le progrès CENI National Independent Electoral Commission CET Common External Tariff CFAA Country Financial Accountability Assessment CFAF CFA Franc CGCT General Regional and Local Authorities Code CGD Democratic Governance Centre CGP Country Governance Profile CID Computerized Expenditure System CIDA Canadian International Development Agency CNBG National Coordination for Good Governance CNCC National Competition and Consumption Commission CNDP National Public Debt Committee COMFIB Finance and Budget Commission CPAR Country Procurement Assessment Review CSI Higher Information Council CSM Higher Judicial Council CSO Civil Society Organization CSP Country Strategy Paper DAAF Department of Administrative and Financial Affairs DANIDA Danish Cooperation DCCF Central Directorate for Financial Control DCEI Department of Economic Coordination and Information DCMP Central Directorate for Government Contracts DELGI Delegation General for Data Processing DEP Department of Studies and Planning DGB Directorate General for the Budget DGCOOP Directorate General for Cooperation DGEP Directorate General of the Economy and Planning DGTCP Directorate General of the Treasury and Public accounts DPSSI Department of Sector wide Planning and Investment Monitoring DSI Department of Computer Services ECA United Nations Economic Commission for Africa ECOWAS Economic Community of West African States EMSP Economic Management Support Project ESW Economic and Sector Work EU European Union GDP Gross Domestic Product GGW Good Governance Watch HACLC Anti Corruption Coordination Authority HDI Human Development Indicator (UNDP) HIPC Heavily Indebted Poor Countries HIV Human Immunodeficiency Virus IDA International Development Agency IGE/IGF General State (Finance) Inspectorate ILO International Labour Office ILO International Labour Organisation ii IMF International Monetary Fund NISD National Institute of Statistics and Population IPPTE/PPTE Heavily Indebted Poor Countries (debt relief) Initiative ISP Institutional Support Project LPDSP Private Sector Development Policy Letter MDG Millennium Development Goals MEBF Burkina Faso Enterprise Centre MEDEV Ministry of the Economy and Development MFPRE Ministry of the Public Service and Administrative Reform MTEF Medium-term Expenditure Framework NA National Assembly NEPAD New Partnership for Africa’s Development NGO Non Governmental Organizations NICT New Information and Communication Technology OHADA Organisation for the Harmonization in Africa of Business Law ONECCA National Office of Certified and Chartered Accountants OPAPAD Poverty and Sustainable Human Development Watch PAA Administration Support Project GGSP Good Governance Support Project PACDE Competitiveness and Enterprise Development Support Programme PANJ National Justice Reform Plan of Action PASECT Transport Sector Adjustment Programme PBLG Policy-based Lending on Governance PIP Public Investment Programme NGGP National Good Governance Policy PRGB Budget Management Strengthening Programme PRGE Economic Management Strengthening Support Project PRGF Poverty Reduction and Growth Facility PRSP Poverty Reduction Strategy Paper PRSSP Poverty Reduction Strategy Support Programme RAF Agrarian and Land Reform RGAP General Reform of Public Administration RMC Regional Member Countries ROSC Report on the Observation of Standards and Codes RSL Reform Support Loans SAL Structural Adjustment Loan SEBG Executive Secretariat for good Governance SGG- CM Secretariat General of the Government and the Council of Ministers SIGASPE Integrated System of State Personnel Administrative and Salary Management SMEs Small and Medium sized Enterprises SOFITEX Textile Company SPONG Permanent Secretariat for NGOs SP-PPF Permanent Secretariat for the Monitoring of Financial Policies and Programmes STC/PDES Technical Secretariat for the Coordination of Economic and Social Development Policies SYSCOA West African Accounting System TFP Technical and Financial Partners TOD Decentralization Orientation Law TSP Transport Sector Programme UNDAF United Nations Development Assistance Framework UNDP United Nations Development Programme WAEMU West African Economic and Monetary Union WB World Bank iii EXECUTIVE SUMMARY Context 1. A landlocked country with a surface area of 274,000 km2 and a population of 13 million inhabitants in 2004, Burkina Faso is one of the world’s poorest countries. According to the 2004 human development index Burkina Faso is ranked 175th among 177 countries. The country has scarce natural resources and partly depends on external aid and income from immigrant workers. Recent estimates show that some 46.4% of the population lives below the monetary poverty line, a situation which is exacerbated among women and in rural areas. These recent analyses also highlight a worsening of poverty in urban areas. The problem of Burkina Faso’s economy is the persistence of poverty despite relatively sustained growth over the past few years and the reforms initiated since 1991. This situation led to the formulation of the poverty reduction strategic framework as from 2000 in a bid to reduce the number of people living below the poverty threshold by one-third by 2015. It was revised in 2003 and led to the drawing up of a programme of priority actions for the 2004-2006 period. 2. Greater political stability came as a result of consensual reforms introduced in 2000 and which led to adoption of a new electoral code, an
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