Gabon Public Expenditure Review : Better Management of Public Finance to Achieve Millennium Development Goals

Abstract

Although Gabon has witnessed a significant decline in oil production over the last fifteen years, it still generates significant oil revenue which, due to its small population enables the country to have a per capita gross national income that is among the highest in Africa (8643 USD in 2010) and to be classified as an upper-middle income country. Despite this high level of wealth, the country is ranked 106th out of 187 countries in the Human Development Index of the United Nations (0.674 in 2011). Consequently, the major challenge for Gabon remains the effective use of its oil resources to diversify its economy, improve its basic social services and infrastructure, while accumulating financial savings that will enable the country to avoid sudden and sharp cuts in public spending once the oil resources have been used up. The Growth and Poverty Reduction Strategy Paper (GPRSP) that covered the period from 2006 to 2008 targeted the reversal of the downward trend of the main development indicators and a significant improvement in the living conditions of the population. It was prepared using a consultative approach, based on the broad participation of civil society, and results-oriented, with the ultimate goal of achieving the Millennium Development Goals (MDGs). It was structured around four strategy areas: (i) promoting strong, sustainable, high quality and pro-poor economic growth, (ii) significantly improving access of the entire population to basic social services, (iii) improving infrastructure, and (iv) promoting good governance. The analysis of budgetary expenditure in the priority sectors during the period 2006-08, shows that this expenditure was far below the envisaged envelopes. The achievement rates for road programs fluctuate between 0 percent and 55 percent. This may partly explain the slow progress towards achieving the millennium development goals (MDGs).