Related items
Showing items related by title, author, creator and subject.
-
Burkina Faso - Promoting Growth, Competitiveness and Diversification : Country Economic Memorandum, Volume 1. Main ReportThe main conclusion of Country Economic Memorandum is that the previous model of extensive growth has now exhausted its potential and must be renewed. Given the existing population dynamics, low environmental tolerance due to its Sahelian climate and competition forces imposed due to its open economy, Burkina Faso is heavily investing in growth based on increased productivity to overcome its low level of initial human capital, capacity constraints and regulation. To help define the new model of development of Burkina Faso, the Country Economic Memorandum is exploring growth based on productivity both at macro-, meso-economic or sectoral, micro and institutional levels only. It also assesses the sustainability of growth in the human, demographic, financial, fiscal and physical infrastructure. Wherever possible, it evaluates the performance of previous development programs and provides diagnostics on problems. It analyzes the current situation in terms of challenges and opportunities. Several major constraints on growth have been identified and the Memorandum offers practical ways to reduce or mitigate them. These constraints are: i. The frequency of exogenous shocks on agriculture in Burkina Faso, especially cotton, significantly slows the socio-economic development; ii. The real appreciation of the exchange rate has eroded the price competitiveness; iii. The country's attractiveness to foreign direct investment, despite significant progress in the business environment, limited growth potential; iv. The high fertility rates impede growth per capita and social development beginning with human capital; v. Environmental constraints limit the extensive growth of agriculture, while food security is always a challenge for human development; vi. The vulnerability of poor households prevents them from truly engaging in productive economic activities; vii. Constraints on institutional and human capacities reduce the effectiveness of public policies. The first volume of the Memorandum emphasizes the need for Burkina Faso to consider the macroeconomic and microeconomic constraints to growth and competitiveness, draws attention to the low sophistication of its exports and suggests policy instruments to facilitate the promotion of export and investment led by the private sector. The second volume emphasizes (i) the need for appropriate choices to ensure the viability of the cotton sector, (ii) the development of supply chains to achieve food security, growth and import substitution, (iii) the important role in the mining sector for growth, with good revenue management, and finally (iv) the potential of tourism as an industry will depend on the service quality improvements and the accommodation capacity and infrastructure. The third volume identifies the actions necessary to (i) address the issues of demographic change through better information, education and communication campaigns to bring about behavioral changes, (ii) develop instruments of risk management to manage the risks of economic, social, health, natural and food security, (iii) improve the country's access to regional and international markets, better connections to regional transport infrastructure, electricity, and telecommunications, water services and improved irrigation systems, (iv) exploiting the financial intermediation by new mechanisms of access to credit, reform the financial sector and institutional capacity building in financial management and risk in the business sector, and (v) create and use the budget by prioritizing expenditures, ensuring the collection of revenue and increasing the flow of aid.
-
Aceh Growth Diagnostic : Identifying the Binding Constraints to Growth in a Post-Conflict and Post-Disaster EnvironmentThis report shows that some investors still perceive Aceh as a risky place to do business, despite being relatively peaceful for almost four years. Security incidents, relatively common in post-conflict environments, deter businesses and individuals from investing in Aceh, robbing the economy of necessary capital and innovation. Other consequences of the conflict, including forms of illegal taxation, also hurt investment. The Government of Aceh is aware that until businesses and people change their perceptions of security in Aceh and feel confident that they can reap the full benefits of their investments, little investment will be forthcoming. As a result, growth in the province will be limited and efforts to reduce poverty less effective. There are other problems affecting Aceh's economy. These include the business environment, access to capital and the quality of infrastructure. This report seeks to show how these different factors affect investment and growth, and provides recommendations on how the Government might prioritize and sequence policy changes to improve the investment climate.
-
Togo Growth DiagnosticsThis paper starts by analyzing past growth trends and sources of growth in Togo, as well as the structure of the economic actors in the country. The second part explores the current binding constraints to rapid and sustainable growth. For increased international competitiveness and growth, Togo will need to raise efforts to streamline its costly and cumbersome business procedures. However, for this to have a sizable impact, Togo must prove to potential investors that political stability is permanent and that corruption, poor budget execution and mismanagement of state owned enterprises belongs to the past. As a result of the new government's reform agenda and the return of international aid, a window of opportunities for high returns to the still limited public investments has opened up. This is especially true in infrastructure and connectivity services, which would not only take advantage of Togo's geographical location as a regional hub, but also make growth in Togo more inclusive. And as economic opportunities arise for the private sector, there is a need to restructure the banking sector, which has already started, to smooth distortions in the credit market. Promising sectors within agriculture that are vital to economic growth, employment opportunities, and poverty reduction remain important, but will need to overcome a number of coordination failures. Not least due to the history of government interventions causing economic distortions, the government must allow for a stronger role for private operators and encourage it wherever possible. Finally, although education does not exhibit constraints to economic activity in Togo today, it is of importance to improve the quality of education, not least to profit from and catalyze the opportunities related to Togo's potential as a regional hub.