Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 41746 - ML INTERNATIONAL DEVELOPMENT ASSOCIATION AND Public Disclosure Authorized INTERNATIONAL FINANCE CORPORATION COUNTRY ASSISTANCE STRATEGY FOR THE REPUBLIC OF MALI Public Disclosure Authorized FOR THE PERIOD FYOS-FY11 December 12,2007 Country Department for Mali AFCF2 Africa Region Public Disclosure Authorized ~ 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. ~~ ~ ~~ ~ ~~~ ~ ~ - The last Country Assistance Strategy for Mali was approved on July 3 1,2003. CURRENCY EQUIVALENTS Currency Unit = CFA Franc (CFAF) $1 = 45 1 CFAF (December 10,2007) WEIGHTS AND MEASURES Metric System GOVERNMENT FISCAL YEAR January 1 - December 3 1 ACRONYMS AND ABBREVIATIONS AAA Analytical and Advisory Activities CDD Community-Driven Development CDI CBte d’Ivoire (Republic of Ivory ACP African, Caribbean and Pacific Coast) countries CDMAP Capacity Development in Africa: ADP Accelerated Data Program Management Action Plan ACDP Agriculture Competitiveness and CEA Country Environmental Assessment Diversification Project CENA Capacity Enhancement Needs ADP Accelerated Data Program Assessments AFD Agence Frangaise de Dkveloppement CEM Country Economic Memorandum (French Agency for Development) CERCAP Centre d’e‘tudes et de renforcement ADD African Development Bank des capacitks AFR Africa Region (World Bank) CFAF CFA Franc AFTRL Africa Region Results and Learning CIDA Canadian International Development Unit Agency AMADER Agence Malienne pour le CMDT Compagnie Malienne pour le de‘veloppement de I’knergie (Malian Dkveloppement des Textiles (Malian Agency for Energy Development) Ginning Company) API- Mali Agence de Promotion des CMU Country Management Unit Investissements (Malian Investment CNCS Comitk National de Coordination et Promotion Agency) de Suivi (National Committee for APL Adaptable Program Loan Coordination and Monitoring) ARV Antiretroviral co Country Office ASACO Association de Santk Communautaire CPAR Country Procurement Assessment (Community Health Association) Report BDS Business Development Services CPI Corruption Perception Index BHM Banque de 1 ’Habitat du Mali (Malian CPIA Country Policy and Institutional Housing Bank) Assessment BIM Banque d’lnvestissement du Mali CPPR Country Portfolio Performance (Malian Investment Bank) Review BNPP Bank Netherlands Partnership CPS Cellule de PlaniJication et Statistique Program (Planning and Statistics Unit) CAE Country Assistance Evaluation CRM Caisse des Retraites du Mali (Malian CAS Country Assistance Strategy Pension Fund) CASCR Country Assistance Strategy cs Client Survey Completion Report CSCOM Centre de Sante Communautaires CD Capacity Development (Community Health Center) CDC Caisse des Dbp6ts et Consignation CSIF Country Strategic Investment (Deposit and Consignment Office) Framework FOR OFFICIAL USE ONLY DECPG Development Prospects Group IsDB Islamic Development Bank DfID Department for International ITC Improvement of Transport Corridor Development (Great Britain) Project DHS Demography and Health Survey Kg Kilogram DNSI National Directorate for Statistics and M&E Monitoring and evaluation Information Technology MCC Millennium Challenge Corporation DPL Development Policy Loan MDG Millennium Development Goal DSA Debt Sustainability Analysis MDRI Multilateral Debt Relief Initiative DTIS Diagnostic Trade Integration Study MIGA Multilateral Investment Guarantee EBP Enterprise Benchmarking Program Agency ECOWAS Economic Community of West MOU Memorandum of Understanding African States MSME Micro, Small and Medium Enterprises EDM Electricite' du Mali (Electricity of MTEF Mid-Term Expenditure Framework Mali) NGO Non-Governmental Organization EC European Commission NPV Net Present Value EITI Extractive Industries Transparency NRM Natural Resource Management Initiative OHADA Organisation pour 1'Harmonisation ELIM Enqugte Le'gPre Inte'gre'e des Me'nages du Droit des Affaires en Afrique (Integrated Light Househould Survey) (Organization for the Harmonization EMEP Enqugte Malienne pour I'Evaluation of Business Law in Africa) de la Pauvrete' (Malian Poverty OMATHO Ofice Malien du Tourisme et de Assessment Survey) I'H6tellerie (Malian Tourism and EPA Economic Partnership Agreement Hotel Business Office) ES W Economic and Sector Work ON Office du Niger EU European Union PACR Projet d'appui aux communautb FAFPA Fonds d'Appui ir la Formation rurales (Rural Community Professionnelle (Vocational Training Development Project) and Apprenticeship Support Fund) PAGAMGFP Plan d 'Action Gouvernementalpour la FIAS Foreign Investment Advisory Service Modernisation et le Renforcement de la FIL Financial Intermediary Loan Gestion des Finances Publiques (Program to modernize and Strengthen FSAP Financial Sector Assessment Program Public Financial Management) FY Fiscal Year PASAOP Projet d'appui aux services agricoles et GAC Governance and Anti-Corruption aux organisations paysannes Gross Domestic Product GDP (Agriculture and Producers Global Environment Fund GEF Organization Project) Government of Mali GoM PCDA Projet de compktitivitk et de GPRSF Growth and Poverty Reduction diversification agricole (Agricultural Framework Competitiveness and Diversification GSP Growth Support Project Project) ha Hectare PEFA Public Expenditure and Financial H&A Harmonization and Alignment Accountability HIPC Heavily Indebted Poor Countries PEM Public Expenditure Management Initiative PEMFAR Public Expenditure Management and HIViAIDS Human Immunodeficiency Financial Accountability Review VirusiAcquired Immunodeficiency PEP Private Enterprise Program Syndrome PER Public Expenditure Review ICA Investment Climate Assessment PDI Programme de De'veloppement ICT Information and Communication Institutionel (Institutional Technologies Development Program) IDA International Development Agency PFM Public Financial Management ICR Implementation Completion Report PHRD Japan Policy and Human Resources IDF Institutional Development Fund Development Fund IEG Independent Evaluation Group PIC Presidential Investors Council IFC International Finance Corporation PNIR Rural Infrastructure Project IFMS Integrated Financial Management PIU Project Implementation Unit System PRGF Poverty Reduction and Growth IMF International Monetary Fund Facility This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. PRSC Poverty Reduction Support Credit SSA Sub-Saharan Africa PRSF Poverty Reduction Strategy SSN SystBme Statistique National (National Framework Statistics System) PRSP Poverty Reduction Strategy Paper STEP Support and Training for PSD Private sector development Entrepreneurship Program QAG Quality Assurance Group S WAp Sector-Wide Approach REP Regional Economic Program Tha Ton per hectare SAC Structural Adjustment Credit TA Technical assistance SDR Special Drawing Rights TI Transparency International SFD SystBmes Financiers De'centralise's TF-SCB Trust Fund for Statistical Capacity (Decentralized Financial Systems) Building SGI Socie'te' de Gestion et d'lnterme'diation UN United Nations (Management and Mediation UNDP United Nations Development Program Company) UNICEF United Nations Children's Fund SLM Sustainable Land Management USAID United States Agency for SME Small and Medium Enterprise International Development SNCF Socie'te' Nationale des Chemins de Fer WAEMU West African Economic and (National Railways Company) Monetary Union SNDS Strate'gieNationale de De'veloppement WAPP West Africa Power Pool des Statistiques (National Strategy for WBG World Bank Group the Development of Statistics) WBI World Bank Institute SOE State-Owned Enterprise WDI World Development Indicators SOTELMA Socie'te' des Te'le'communicationsdu Mali (Malian Telecommunication company) IDA IFC Vice President: Obiageli K. Ezekwesili (AFRVP) Vice President: Jyrki I.Koskelo (CFFVP) Country Director: James P. Bond (AFCF2) Director: Thieny Tanoh (CAFDR) Task Team Alassane Diawara (AFMML) Country Manager: Aida der Hovanessian (CAFW3) Leaders: Sybille Crystal (AFCF2) Senior Strategy Officer: Frank Douamba (CAFSC) The following World Bank Staff contributed to the preparation ofthe CAS: Alassane Diawara (co-TTL), Sybille Crystal (co-TTL), Sabine Hader, Christina Wood, Quentin Wodon, Abdoulaye Konate, Antonella Bassani, Thomas Jeffrey Ramin, Franqois Nankobogo, Tony Verheijen, Guenter Heidenhof, Koffi Ekouevi, Olivier Durand, Abdoulaye Tour& Yeyande Sangho, Agadiou Dama, Remi Kini, Siele Silue, William Experton, Tonia Marek, John May, Atou Seck, Andre Ryba, Djibrilla Issa, Mahine Diop, Craig Andrews, Boubacar Bocoum, Maimouna Mbow Fam, Taoufiq Bennouna, Franqois Nankobogo, Youssouf Thiam, Amadou Dem, Aida der Hovanessian, Frank Douamba, Augustin Apetey, Franke Toornstra, Maiko Miyake, Guy Darlan, Fily Bouare Sissoko Mamadou Tangara, Cheick TraorB, Deo Ndikumana, Fabrice Houdart, Sonia Plaza, Thomas Vis, Marc Lixi, Ghislaine Delaine, Kathy Li Tow Ngow, Denise Sangara, Hawa Maiga, Safiatou Dicko Ba, Alema Siddlky, and Luis Alvaro Sanchez. TABLE OF CONTENTS Page Executive summary .................................................................................................................................. i I. COUNTRY CONTEXT ................................................................................................................