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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 57600 - ML INTERNATIONAL DEVELOPMENT ASSOCIATION PROGRAM DOCUMENT FOR THE Public Disclosure Authorized FIFTH POVERTY REDUCTION SUPPORT CREDIT (PRSC-5) IN THE AMOUNT OF SDR 44.5 MILLION (US$70 MILLION EQUIVALENT) TO THE REPUBLIC OF MALI March 30, 2011 Public Disclosure Authorized Poverty Reduction and Economic Management 3 Country Management Unit AFCW3 Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective as of February 28, 2011) Currency Unit = CFAF US$1.00 = CFAF 474 FISCAL YEAR January 1 = December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS ABG General Budget Support (Appui Budgétaire Général) ADEMA Alliance for Democracy in Mali AEP Drinkable Water Supply (Adduction d’Eau Potable) AFD French Development Agency (Agence Française de Développement) AfDB African Development Bank AMO Health insurance AQIM Al-Qaida in the Islamic Maghreb ARMDS Procurement Regulatory Agency (Autorité de Régulation des Marchés Publics et de Délégation des Services Publics) ASDI Swedish International Development Agency (acronym in French) BCEAO Central Bank of (Francophone) West African States BHM Malian Housing Bank (Banque de l’Habitat du Mali) BOAD West Africa Development Bank (Banque Ouest Africane de Developpment) BVG Office of Auditor General (Bureau du Verificateur General) CAP School Management Committee CAS Country assistance Strategy CEM Country Economic Memorandum CENI Commission Eléctorale Nationale Indépendente CFAA Country Financial Accountability Assessment CFAF Franc of the African Francophone Monetary Community (Franc Communauté Financière Africaine) CM Cabinet (Conseil des Ministres) CMDT Mali Textile Development Company (Compagnie Malienne pour le Développement des Textiles) CPAR Country Procurement Assessment Report CRM Mali Retirement Fund (Caisse de Retraite du Mali) CRT Telecommunications Regulatory Board (Comité de Régulation des Télécommunications) CSCOM Community Health Center (Centre de Santé Communautaire) CSREF Health Referral Center (Centre de Santé de référence) CT Territorial Collectivity (Collectivité Territoriale) DAF Administrative and Financial Department in each Ministry (Division Administrative et Financière) DGB General Directorate of the Budget (Direction Nationale du Budget) DGMP General Procurement Department (Direction Générale des Marchés Publics) DNH National Directorate of Hydraulics DNSI National Directorate of Statiscs and Informatics DPL Development Policy Lending DRH Human Resource Department (Direction Nationale des Ressources Humaines) ii DSA Debt Sustainability Analysis DSP Delegation of Public Services (Delegation des Services Publiques) EC European Commission ECF Extended Credit Facility ECOWAS Economic Community of West African States EDM S.A Mali Electricity and Water Utility Company (Energie du Mali, Societé Anonyme) EFA Education for All EI Extractive Industries EITI Extractive Industry Transparency Initiative ELIM Core Welfare Indicators Household Survey EMEP Malian Survey for Poverty Evaluation EPPFMC Economic Policy and Public Finance Management Credit ESMF Environmental and Social Management Framework ESP Energy Support Project ESW Economic and Sector Work FAO Food and Agricultural Organization FDI Foreign Direct Investment FIAS Foreign Investment Advisory Service FSAP Financial Sector Assessment Program FTI Fast Track Initiative GDP Gross Domestic Product GM Genetically Modified Organism GNI Gross National Income GoM Government of Mali GPRSF Growth and Poverty Reduction Strategy Framework GTZ German Technical Cooperation Agency (Deutsche Gesellschaft für Technische Zusammenarbeit) HDR Human Development Report HHRP Health Human Resource Policy HIPC Heavily Indebted Poor Countries HIV/AIDS Human Immunodeficiency Virus / Acquired Immune Deficiency Syndrome IBP International Budget Partnership IBRD International Bank of Reconstruction and Development ICRR Implementation Completion and Results Report IDA International Development Association IFRS International Financial Reporting Standard IL Investment Lending IMF International Monetary Fund INSTAT National Statistics Institute IPC Cotton Inter-Professional Association (L’interprofession du Coton Mali) ITIE Initiative de Transparence dans les Industries Extractives (EITI in English) JSAN Joint Staff Advisory Note KfW Development Bank of the Federal Republic and Federal States (Germany) LDP Letter of Development Policy M&E Monitoring and Evaluation MCC Millennium Challenge Corporation MDG Millennium Development Goal iii MENA Middle East and North Africa MEALN Ministry of Education, Literacy and National Languages (Ministère de l’Education, de l’Alphabétisation et des Langues Nationales) ML Mali MoU Memorandum of Understanding MRSC Cotton Restructuring Coordinating Agency (Mission de Restructuration du Secteur Coton) MTBF Medium-Term Budget Framework MTEF Medium-Term Expenditure Framework (sectors) NA National Assembly NEAP National Environmental Action Plan NGO Non-Governmental Organization NPV Net Present Value OBS Open Budget Survey OCC Service Provider for Cotton Grading (Office de Classement de Coton) OECD Organization of Economic Cooperation and Development OHADA Organization to Harmonize Business Law in Africa (Organisation pour l'Harmonisation en Afrique du Droit des Affaires) ON Office du Niger ONG Non-Governmental Organization (Organisation Non-Gouvernementale) OP Producer Organizations (Organisations des produteurs) PAGAM- Action Plan for Modernizing and Strengthening Public Finance Management (Plan d’Action GFP Gouvernemental pour la Modernisation et le Renforcement de la Gestion des Finances Publiques) PAPAM Fostering Agriculture Productivity Project PASAOP Agricultural and Producer Organization Project (Projet d’Appui aux Services Agricoles et aux Organisations Paysannes) PASCA Plan d'Action de la Croissance Accélérée PASEC Program for the Analysis of Education Systems of the CONFEM PD Project Document PDES Party for the Economic and Social Development PDES Economic and Social Development Project (Projet de Développement Economique et Social) PEFA Public Expenditure and Financial Accountability PEMFAR Public Expenditure Management and Financial Accountability Review PFM Public Financial Management PIDRK Integrated Rural Development Program of the Kidal Region (Programme Intégré de Développement Rural de la Région de Kidal) PIDRN Integrated Programme for the Development of Northern Region of Mali (Programme Intégré de Développement des Régions Nords du Mali) PISE Education Sector Investment Program PPP Public Private Partnership PRED Computerized Budget Expenditure Application PRGF Poverty Reduction and Growth Facility PRODEC Ten Year Education Development Program PRODESS Health and Social Development Program (Programme de Développement Sanitaire et Social) PRSC Poverty Reduction Support Credit PRSP Poverty Reduction Strategy Paper PSIA Poverty and Social Impact Analysis PTF Donor group (Partenaires Techniques et Financiers) PV Present value iv RAMED Insurance for medication ROC Regional Operations Committee ROSC Reports on the Observance of Standards and Codes SAI Supreme Audit Institution SCA Strategy for Accelerated Growth (Stratégie de Croissance Accélérée) SCCS Audit Section of the Supreme Court SDR Special Drawing Rights SIL Specific Investment Loan SOTELMA Mali Telecommunications Company (Société des Télécommunications du Mali) SSA Sub Saharan Africa SSN Social Safety Nets SWAP Sector Wide Approach Project ToR Terms of Reference UA Unit of Account (AfDB). UEMOA West African Economic and Monetary Union (Union Economique et Monétaire Ouest Africaine) UNDP United Nations Development Program UNESCO United Nations Educational, Scientific and Cultural Organization UNICEF United Nations Children's Fund URD Union For the Republic and Democracy US United Stated USAID United States Agency for International Development VAT Value Added Tax WAEMU West African Economic and Monetary Union (UEMOA in French) WB/GFDRR World Bank's Global Facility for Disaster Reduction and Recovery WHO World Health Organization Vice President: Obiageli Katryn Ezekwesili Acting Country Director: Kathryn Hollifield Sector Director: Marcelo Giugale Sector Manager: Jan Walliser Task Team Leader: Clara de Sousa v REPUBLIC OF MALI FIFTH POVERTY REDUCTION SUPPORT CREDIT (PRSC-5) TABLE OF CONTENTS 1. INTRODUCTION .............................................................................................................................. 1 2. COUNTRY CONTEXT ..................................................................................................................... 2 A. POLITICAL CONTEXT ........................................................................................................................ 2 B. RECENT ECONOMIC DEVELOPMENTS .............................................................................................. 2 C. MACROECONOMIC OUTLOOK AND DEBT SUSTAINABILITY............................................................. 6 3. MALI’S GROWTH AND POVERTY REDUCTION STRATEGY FRAMEWORK............... 10 4. BANK GROUP’S SUPPORT TO THE GOVERNMENT’S PROGRAM.................................. 15 A. LINK TO THE COUNTRY ASSISTANCE STRATEGY .........................................................................
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