© 2008 International Monetary Fund April 2008 IMF Country Report No. 08/125 [Month, Day], 2001 [Month, Day], 2001 Benin: Poverty Reduction Strategy Paper— Growth Strategy for Poverty Reduction Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country's macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. This country document for Benin, dated April 2007, is being made available on the IMF website by agreement with the member country as a service to users of the IMF website. 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REPUBLIC OF BENIN GROWTH STRATEGY FOR POVERTY REDUCTION April 2007 ABBREVIATIONS AND ACRONYMS AFD French Development Agency AfDF African Development Fund ANCB National Association of Communes of Benin APRM African Peer Review Mechanism ARI Acute Respiratory Infections AU African Union BCEAO Central Bank of West African States BenInfo Beninese socioeconomic database BGE General Government budget BOA Bank of Africa BOT Built, Operate and Transfer BRVM Regional Securities Exchange BTP Construction and Public Works CAA Autonomous Amortization Fund CCIB Chamber of Commerce and Industry of Benin CCS Municipal Monitoring Committee CDS Departmental Monitoring Committees CEB Beninese Electricity Community CEBENOR Benin Center for Standardization and Quality Management CNB National Budget Committee CND National Deconcentration Committee CNE National Debt Committee CNDLP National Commission for Development and Combating Poverty CNPB Beninese Employers Federation CNS National Statistics Council CSA Arrondissement Health Center CSC Municipal Health Center CWIQ Core Welfare Indicators Questionnaire DANIDA Danish International Development Agency DAT Land Management Delegation DEPOLIPO Declaration of Population Policy DEPONAT Declaration of National Land Management Policy DOTS Directly Observed Therapy Short Course DPP Planning and Forecasting Directorate DPS Strategic Planning Directorate DSD Social Dimension of Development DSO Operational Strategy Document ECI Investment Climate Survey ECOWAS Economic Community of West African States ECVR Survey of Living Conditions of Rural Households EDS Demographic and Health Survey EFA Education For All ELAM Short Household Survey EMICoV Integrated Modular Survey on Household Living Conditions ENOC Emergency Neonatal Obstetric Care i FAO United Nations Food and Agriculture Organization FDI Foreign Direct Investment FECECAM Federation of Credit Unions and Mutual Farm Credit Organizations FIAT Town and Regional Planning Incentive Fund FRIDC ECOWAS Regional Investment and Development Fund GDP Gross Domestic Product GER Gross Enrollment Ratio HDI Human Development Indicator HIPC Heavily Indebted Poor Countries HIPC Heavily Indebted Poor Countries Initiative HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome HPI Human Poverty Index ICAO International Civil Aviation Organization ICMR Infant/Child Mortality Rate IDA International Development Association IFAD International Fund for Agricultural Development IMF International Monetary Fund IMR Infant Mortality Rate INSAE National Institute for Statistics and Economic Analysis IsDB Islamic Development Bank ITC Information and Communications Technologies MAEP Ministry of Agriculture, Livestock and Fisheries MDCTTP Ministry Responsible for Public Works and Transport MDEF Ministry of Development, the Economy, and Finance MDG Millennium Development Goals MEPS Ministry of Primary and Secondary Education MMR Maternal Mortality Rate MS Ministry of Health MSP Ministry of Public Health MTEF Medium-Term Expenditure Framework NAP National Action Plan NEPAD New Partnership for Africa’s Development NGO Nongovernmental Organization NLTPS National Long-Term Outlook Research OCS Social Change Observatory ODA Official Development Assistance PAGEFCOM Municipal Forest Management and Development Project PAMF Project for the Management of the Forest Massifs of Agoua de Mons Kouffè and Wari-Maro PAP Priority Action Plan PBF Forest Fire Project PCGPN National Parks Management and Conservation Project PDC Municipal Development Plan PEV Expanded Immunization Program PGDRN Program for the Sustainable Management of Natural Resources PGFTR Forest and Shoreline Property Management Program PNGE National Environmental Management Program PNLS National Anti-AIDS Program SCRP Poverty Reduction and Growth Strategy ii ProCGRN Natural Resources Management and Conservation Project PPP Purchasing Power Parity PRS Poverty Reduction Strategy PRSP Poverty Reduction Strategy Paper PTME Mother-to-Child Transmission Prevention PTR Pupil-Teacher Ratio RAT Reform of Territorial Administration RBM Results-based management RESEN Report on the National Education System RGPH General Population and Housing Census SDA Strategic Development Approach SEA Strategic Environmental Assessment SME Small and Medium-Sized Enterprises SNFAR National Agricultural and Rural Extension Strategy SONAPRA National Agricultural Promotion Company SP Social Projection STI Sexually Transmitted Infections TAP Primary School Completion Rate TBS Social Scorecard TFP Technical and Financial Partner UNCTAD United Nations Conference on Trade and Development UVS Village Health Unit WADB West African Development Bank WAEMU West African Economic and Monetary Union WPI Women’s Participation Indicator iii LIST OF TABLES AND CHARTS List of Tables Table 1: Macroeconomic Indicators (% of GDP unless otherwise indicated)........................ 8 Table 2: Key indicators of education.....................................................................................10 Table 3: Key health indicators...............................................................................................11 Table 4: MDGs, current situation, and path ahead for Benin................................................15 Table 5: Changes in poverty indicators from 2002 to 2006 ..................................................20 Table 6: Assessment of the subjective well-being of households .........................................21 Table 7: Inequality in Benin between 2002 and 2006 ...........................................................22 Table 8: Changes in poverty incidence between 2002 and 2006 (%)....................................25 Table 9: Average annual export ratio (1998-2004) ...............................................................34 Table 10: Structure of exports, Benin (CFAF billions) .........................................................37 Table 11: Average cost of a three-minute dial-up call to the USA in US$ ...........................39 Table 12: Comparison of transportation infrastructure in a number of countries ................42 Table 13: Bottlenecks caused by electricity supply problems: an international comparison 46 Table 14: Electric energy capacity, Benin (millions of Kw) .................................................46 Table 15: Trend of economic growth and the investment ratio for 2000-2004.....................83 Table 16: Trend of sectoral growth for 2006-2009................................................................85 Table 17: Trend of revenue and expenditure as a percentage of GDP ..................................86 Table 18: Budgetary appropriation by sector for the period 2007-2009 (percent of expenditures excluding debt service)..........................................................................................................88 Table 19: Cost and financing of the SCRP............................................................................89 Table 20: Trend of the principal aggregates according to scenario.......................................90 List of Boxes Box 1: Summary of the Paris Declaration................................................................................... 3 Box 2: Selected human development indicators for Benin .................................................... 9 Box 3: The EMICoV survey and the scope of the data used for poverty analysis ................. 19 Box 4: Vital needs according to households..........................................................................22 Box 5: Growth Incidence Curve (GIC) .................................................................................25 Box 6: Conceptual Framework of the SCRP.........................................................................29 Box 7: Private sector development policy.............................................................................33 Box 8: Strategy for boosting the agricultural sector..............................................................35 Box 9: National Rural Roads Strategy and Implementation of Pilot Projects.......................43 Box 10: Main Objectives of the DEPOLIPO ........................................................................50 Box 11: Ten-year plan for educational development in Benin..............................................53 Box 12: Trend in HIV/AIDS prevalence...............................................................................56