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Togo's Fiscal Accounts (Billions of FCFA)

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Togo's Fiscal Accounts (Billions of FCFA) FOR OFFICIAL USE ONLY Document of The World Bank Public Disclosure Authorized Report No.108184-TG TOGO Public Disclosure Authorized SYSTEMATIC COUNTRY DIAGNOSTIC September 19, 2016 International Development Association Public Disclosure Authorized Country Department AFCF2 Africa Region International Finance Corporation Sub-Saharan Africa Department Multilateral Investment Guarantee Agency Sub-Saharan Africa Department Public Disclosure Authorized WORLD BANK GROUP Country—Government Fiscal Year Government Fiscal Year January 1 – December 31 Currency Equivalents Currency: FCFA Franc de la Communauté Financière Africaine (Exchange Rate Effective as of June 2016) US$1.00 = FCFA 584.16 Abbreviations and Acronyms ACLED Armed Conflict Location and Event Data ANSAT Agence Nationale de la Sécurité Alimentaire du Togo [National Agency for Food Security] APMT APM Terminals ARSE Autorité de Réglementation du Secteur de l’Electricité [Electricity Sector Regulatory Authority] ARTP Autorité de Réglementation des Secteurs de Postes et de Télécommunications [Telecommunications and Postal Sectors Regulatory Authority] BAL Bolloré Africa Logistics BCEAO Banque Centrale des Etats de l’Afrique de l’Ouest [Central Bank of West African Nations] BIFS Baseline Informal Firm Survey CASIMEC Cellule d’Appui et de Suivi des Institutions Mutualistes ou Cooperatives d’Epargne et de Credit [Center for the Support and Monitoring of Cooperatives and Mutual Savings and Credit Associations] CAGIA Centrale d’Approvisionnement et de Gestion des Intrants Agricoles [Central Organization for the Provision and Management of Agricultural Inputs] CEB Communauté Electrique du Benin [Electricity Community of Benin] CEET Compagnie Energie Electrique du Togo [Electrical Energy Company of Togo] DALY Disability-adjusted life year DB Doing Business DPT Diphtheria, pertussis, and tetanus ECOWAS Economic Community of West African States EITI Extractives Industries Transparency Initiative GDP Gross Domestic Product GFI Global Financial Integrity GNI Gross National Income HHI Herfindahl-Hirschman Index HIPC Heavily Indebted Poor Countries HIV Human immunodeficiency virus HKW Hausmann, Klinger, and Wagner ii HRV Hausmann, Rodrik, and Velasco IAEA International Atomic Energy Agency ICT Information and Communication Technology IFC International Finance Corporation IFMIS Integrated Financial Management Information System IGF Inspection Générale des Finances [General Inspector for Finance] IMF Impôt Minimum Forfeitaire [Minimum Lump Sum Tax] IMF International Monetary Fund INSEED Institut Nationale de la Statistique et des Études Economiques et Démographiques [National Institute of Statistics and Economic and Demographic Studies] IPTp Intermittent preventive treatment for malaria in pregnancy ITRA Institut Togolais de Recherche Agricole [Togolese Institute of Agricultural Research] ITU International Telecommunication Union KHM Cambodia LCT Lomé Container Terminal LLIN Long-lasting insecticide net MDRI Multilateral Debt Relief Initiative MFI Microfinance Institution MICS Multiple Indicator Cluster Survey MSC Mediterranean Shipping Company MT Metric tons NFA Net Foreign Assets NGO Non-governmental organization NPK Nitrogen, Phosphorous, and Potassium NSCT Nouvelle Société Cotonnière du Togo [New Togolese Cotton Company] NTB Nontariff barrier OHADA Organization for the Harmonization of African Business Law OSIWA Open Society Initiative for West Africa OTR Office Togolais des Recettes [Togolese Revenue Authority] PAL Port Autonome de Lomé [Autonomous Port of Lome] PK Phosphate and Potassium QUIBB Questionnaire des Indicateurs de Base du Bien-être [Welfare Indicators Survey] REER Real Effective Exchange Rate RPT French Acronym for Rally for the Togolese People RT République Togolaise [Republic of Togo] SCAPE Stratégie de Croissance Accélérée pour la Promotion de l’Emploi [Strategy for Accelerated Growth and the Promotion of Employment] SCD Systematic Country Diagnostic SIGFIP Système Intégré de Gestion des Finances Publics [Integrated Public Financial Management System] SOE State-owned enterprise SSA Sub-Saharan Africa(n) TdE Togolaise des Eaux [Togolese Water Company] TEU Twenty foot equivalent (container) unit iii TFFS Togo Formal Firm Survey TLU Tropical Livestock Units TP Taxe Professionelle [Professional Tax] TPU Taxe Professionelle Unitaire [Unitary Professional Tax] TRIFS Third Round Informal Firm Survey VAT Value-Added Tax WAEMU West African Economic and Monetary Union WB World Bank WBES World Bank Enterprise Survey(s) WDI World Development Indicators WGI Worldwide Governance Indicators WHO World Health Organization WITS World Integrated Trade Solutions IBRD IFC MIGA Regional Vice President: Vice President: Nena Vice President: Karin Makhtar Diop Stoiljkovic Finkelston Country Director: Pierre Director: Vera Songwe Director (Acting): Dan Biller Laporte and Yasser M. Ibrahim Country Manager: Joelle Country Manager: Ronke- Dehasse Businger Amoni Ogunsulire Task Team Leader: Theresa Task Team Leader: Task Team Leader: Conor Osborne Aimilios Chatzinikolaou Healy iv TABLE OF CONTENTS Executive Summary ....................................................................................................................................... i 1. Introduction .......................................................................................................................................... 1 2. Recent Economic Performance ............................................................................................................ 3 3. Togo’s Performance vis-à-vis the Twin Goals ..................................................................................... 6 Recent Trends in Poverty and Inequality ...................................................................................... 6 Correlates and Circumstances of Poverty: Household and Spatial Characteristics ..................... 8 Sources of Vulnerability ............................................................................................................. 13 Macro-Micro Linkages and Pathways out of Poverty ................................................................ 18 3.4.1. Implications for Togo’s Pathways out of Poverty ............................................................... 22 4. Togo’s Key Constraints to the Twin Goals ........................................................................................ 23 Diagnostic Framework, Key Questions, and Approach .............................................................. 23 Key Constraint 1: Governance Challenges ................................................................................. 28 4.2.1. Summary of Historical and Political Economy Factors ...................................................... 29 4.2.2. Political Sustainability Risks .............................................................................................. 32 4.2.3. Three Channels of Poor Governance .................................................................................. 33 Key Constraint 2: Weaknesses in Fiscal Governance ................................................................. 34 Key Constraint 3: Policy and Regulatory Barriers to Entry and Distortions to Entry to Private Economic Activity .................................................................................................................................. 40 4.4.1. Other Constraints Due to Policy and Regulatory Distortions to Private Economic Activity (see Appendix B for more details) ..................................................................................................... 43 Key Constraint 4: High and Distortionary Taxation ................................................................... 45 Diagnosing Constraints in Agriculture: Key Distortions to Private Economic Activity Combined with Moderately Constraining Public Service Delivery ......................................................................... 55 Is Inadequate Access to Finance a Key Binding Constraint?...................................................... 67 Moderate Infrastructure Services Constraints ............................................................................ 75 4.8.1. Transport Infrastructure and Services ................................................................................. 76 4.8.2. Costly and Unreliable Electricity Provision ........................................................................ 81 4.8.3. Lack of Competition in Information and Communication Technology .............................. 86 4.8.4. Deficits in the Provision of Water and Sanitation ............................................................... 90 The Role of Skills and Education ............................................................................................... 95 Key Constraint 5: Poor Performance in Disease Prevention and Health Care Delivery ........... 102 v Gender Inequalities ................................................................................................................... 108 5. Summary of Findings and Pathways out of Poverty ........................................................................ 112 Summary of Findings ................................................................................................................ 112 Pathways out of Poverty ........................................................................................................... 114 References ................................................................................................................................................
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