Document of THE WORLD BANK FOR OFFICIAL USE ONLY Report No. 23190-BUR BURKINA FASO JOINT IDA-IMF STAFF ASSESSMENT OF THE POVERTY REDUCTION STRATEGY PAPER ANNUAL PROGRESS REPORT October 31, 2001 Macroeconomics 4 Africa Region 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 WoTid Bank authorizatioL . THE INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION BURKINA FASO Joint Staff Assessment of the Poverty Reduction Strategy Paper Annual Progress Report Prepared by the Staffs of the International Development Association and the International Monetary Fund Approved by Callisto Madavo and Gobind Nankani (IDA) and Amor Tahari and Jesus Seade (IMF) October 31, 2001 1. The annual progress report of the poverty reduction strategy paper (PRSP-PR) takes stock of the first year of implementation of the PRSP since it was submitted to the Executive Boarcs for consideration. It presents in a clear fashion the progress achieved, and difficulties encowii'tered, in implementing the four key pillars of the PRSP: (i) accelerating equity-based grow h; (ii) promoting access to basic social services for the poor; (iii) expand.:ng opportunities for employment and income-generating activities for the poor; and (iv) promoting good governance. It also discusses the efforts undertaken by the authorities to improve the poverty monitoring system, incorporate stakeholders' views in the process of updating the strategy, and produce and disseminate information on economic and social issues. Finally, the report presents the next steps, notably with respect to the updating of the main elements of the poverty reduction strategy, as well as the review of the program of priority actions for the period 2001-04. The staffs consider the PRSP-PR to provide a good basis for evaluating progress in implementing the strategy. A. PRSP Objective 1: Accelerating Broad-Based Growth 2. Growth and macroeconomic framework. Burkina Faso has faced unforeseen constraints in executing its priority poverty reduction program, linked with exogenous shocks and lower than expected receipt of funds under the Initiative for Heavily Indebted Poor Countries (HIPC Initiative) because of delays in finalizing agreements and non-participation by certain creditors. Nonetheless, it has continued to promote an enabling environment to foster growth, has carried out its poverty reduction program, and has ensured the effective implementation of priority actions, as listed in the PRSP. In 2000, the exogenous shocks lowered real GDP growth to 2.2 percent, compared with a projected growth rate of 5.7 percent. Confronted with this evidence of the fragility of the economy, the authorities have realized that the growth target presented in the PRSP (an average of 7 percent real GDP growth for the period 2000-04) would be difficult to achieve. Projected real GDP growth over this period has been revised downward to 6 percent while preserving the poverty -2 - reduction objectives. While such a growth level could be achieved, the staffs' calculations indicate that a slightly lower growth level of about 51/2 percent per annum would be more in line with Burkina Faso' s potential. This revision implies that the reduction in the poverty head count (i.e., from 45 percent to 30 percent by 2015) needs to be carefully reexamined. This is especially true in light of the likely increase in unemployment that the return of Burkinabe from C6te d'Ivoire, following the economic and political deterioration in that country, will generate. Overall fiscal targets and financing assumptions remain appropriate under the lower growth prospects. Additional targets in the PRSP for the period 2000-03 included achieving an inflation rate of less than 3 percent and a current account deficit in the balance of payments, excluding grants, of 13 percent of GDP. These targets are still likely to be met; staffs, however, regret the absence of a discussion of monetary and external sector policies in the PRSP-PR. The authorities have persevered with structural reforms, including the privatization agenda, deregulation of the telecommunications and energy sectors, and some cotton sector reforms; however, the bulk of the cotton sector has yet to be liberalized. 3. Public finance. The PRSP-PR indicates that, notwithstanding the economic downturn and ensuing lower revenue in 2000 and the first semester of 2001, expenditure on social sectors was maintained at levels committed to in the PRSP, and most of the PRSP targets for 2000 were met, including on fiscal efficiency. In particular, the government focused on improving program budgets, decentralizing budget implementation in health and education, updating the medium-term expenditure framework (MTEF) and public expenditure reviews (PERs) in the education and health sectors, decentralizing the budgetary system and the institutional problems linked to the implementation of the public investment program. The main recommendations of the PERs will be incorporated in the recently adopted ambitious medium-term budgetary reform program, Plan de Renforcement de la Gestion des Depenses Budgetaires (PRGB).1 This program will benefit from the recommendations of the Country Financial Accountability Assessment (CFAA), which the World Bank is preparing in collaboration with other donors. With the assistance of the IMF, the fiscal module of the Report on the Observance of Standards and Codes (ROSC) was elaborated. An action plan was developed to improve the capacity of the public expenditure management system to track and report on the uses of poverty-reducing expenditures. B. PRSP Objective 2: Promoting Access by the Poor to Social Services 4. The PRSP-PR shows that the government has made significant progress in implementing the education and health plans in 2000. Notwithstanding the economic downturn, it maintained social spending, met most of the targets, and completed PERs in these sectors. While some improvements in outcomes were small, this was to be expected in the first year of implementation of the strategy. 5. Basic education. While all the short-term targets were met, the PRSP-PR mentions a mixed performance in the primary education area. It emphasizes that additional efforts will This program will be supported by the second Poverty Reduction Support Credit (PRSC II), scheduled for World Bank Board presentation in 2002. -3 - be needed to increase access to schools in the poorest provinces, in particular for girls. Also, the cost paid by parents of school attendance at the primary level increased by some 17 percent between 1999-2001, as the cost of school meals rose because of the 2000 harvest shortfall. This is expected to be reversed with the good harvest of late 2001 -early-2002. Concerning the updated strategy in the PRSP-PR, the initiation of the ten-year basic education program and its integration in the decentralization process is consistent with the PRSP, and resources will be aligned to meet the goals of the sector. However, more efforts are needed to improve the effectiveness and efficiency of spending in this sector, to correct the low and unequal access to basic education, to reduce the high cost of schooling and the wastage of resources (including through improving priorities for project selection and costing of projects), and to improve the quality of education and the weak capacity for management and supervision. 6. Health. The PRSP-PR notes that progress towards meeting the PRSP objectives has been generally satisfactory with most targets met or exceeded. Notable progress was achieved in raising immunization coverage rates, ensuring a good supply of essential drugs, and improving staffing of primary health facilities. The government has taken an important step forward by removing fees for preventive services. Moreover, it has fostered greater involvement of village health committees (COGES) in deternining priorities, formulating strategies and overseeing resources from cost recovery. As pointed out in the PRSP-PR, however, there is room for improvement in a number of areas. Utilization of health care services remains low with no discernible improvement in the past year. Further work is required to address the weak demand for health care, notably by rationalizing fees for drugs and consultations to ensure that they do not pose a major barrier for the poor. Efforts are also needed to improve the performance of primary health care facilities (CSPS) by reducing staff turnover, improve limited career development possibilities and boost morale. The involvement of women in COGES needs to be expanded to ensure that their preferences and priorities are incorporated in the bottom up planning process. Finally, the recent establishment of the National HIV/AIDS/STI Council in the president's office is expected to enhance the program's visibility, strengthen national leadership, and improve coordination. C. PRSP Objective 3: Increasing Employment and Income-Generating Opportunities for the Poor 7. Given the dominant role of agriculture in the overall economy (accounting for about 40 percent of GDP and 78 percent of employment) and the concentration of nearly 95 percent of the poor in rural areas, the PRSP focuses rightly on establishing the conditions for accelerated growth in agriculture as the main vehicle for providing income-generating activities to the poor. 8. The joint staff assessment of the PRSP noted that the action plan for rural development, derived from the Strategic Orientation Document (SOD), focused on appropriate subsectoral interventions but lacked a broader strategy for rural growth and poverty reduction. This weakness is repeated in the PRSP-PR. The authorities should promptly address this through the formulation of a comprehensive rural development strategy -4 - with measurable indicators and targets. In the context of providing support to productive sectors, correctly emphasized in the PRSP as necessary for growth, there is little indication of current developments concerning access to agricultural inputs (notably in the cotton sector), or measures to diversify rural incomes and increase the competitiveness of agricultural exports (such as access to market information, financial services, and appropriate technologies). The staffs recommend that the government, with the assistance of the World Bank, develop an integrated and comprehensive strategy for rural growth, incorporating the various subsectors action plans, with outcome indicators that encompass the views of all relevant stakeholders. This strategy should be described in the next PRSP progress report. D. PRSP Objective 4: Promoting Good Governance 9. The PRSP-PR describes the actions taken to promote good governance in 2000. In particular, the staffs welcome the steps taken to fight corruption, including the publication of tenders on government contracts, the initiation of the revision of the general regulation of procurement, the monitoring of compliance with tax legislation by enterprises in the formal sector, the creation of an Ethics Committee, and the emergence of a national anticorruption network-the latter a civil society initiative. Furthermore, the PRSP-PR emphasizes the authorities' commitment to implement the recommendations of the CFAA, which is being conducted in collaboration with the World Bank. The PRSP-PR, however, is silent on indicators and targets to monitor the implementation of these initiatives. For the updated strategy, the authorities' plan to encourage and strengthen the dialogue with civil society is welcome. However, the anticorruption drive should be reinforced, in particular through the setup of the anticorruption unit envisaged in the PRSP before the end of 2001. This unit should be independent of the government and have the jurisdiction to investigate and review cases, as well as refer cases to the competent judicial authorities. E. Monitoring, Evaluation, and Revision of the PRSP Strategy 10. The government has set up good institutional arrangements, involving decision makers at the highest levels, to monitor the PRSP process. The three committees are working well and are starting to produce reports. However, the PRSP-PR does not discuss progress in improving the adequacy of data collection and analysis, which are inherent parts of a sound monitoring and evaluation system. Social statistics are still incomplete, scattered among various ministries, and untimely. There is an urgent need to activate the centralized unit to monitor social spending and outcomes, to update and implement the statistical master plan, prepared with the assistance of the World Bank and AFRISTAT, and to prepare the third national household survey. The authorities propose to elaborate a set of indicators for monitoring and evaluation of the PRSP within the "reformulated conditionality test initiative," although the timing and use of the results from this initiative is not specified in the PRSP-PR. This should be remedied in subsequent reports. An additional aspect that needs to be addressed concerns the inclusion of key stakeholders in the selection of indicators and in the monitoring process. This issue could be addressed in the Participatory Poverty Assessment (PPA), which is being prepared with the support of the World Bank. -5 - 11. The government should be commended for its considerable PRSP outreach program. It has made great efforts to disseminate the PRSP, publicize its main actions, and intensify the debate on poverty reduction, as documented in the PRSP-PR. The participatory process associated with the implementation of the PRSP, designed to obtain feedback for revising the strategy and fostering ownership, has thus been greatly strengthened. The PRSP-PR report is candid about the concerns raised by domestic stakeholders and proposes to incorporate many of these concerns in their plans for updating the PRSP. Also, the PRSP-PR was disseminated by the authorities in Ouagadougou in September 2001 and discussed by a large audience, including government officials, civil society, and development partners, all of whom openly expressed their views on the strength and weaknesses of the first year of the PRSP implementation. While the authorities underlined the difficulties so far encountered in getting the implementation of the PRSP off the ground, they reiterated their commitment to the strategy and openly discussed the progress achieved and difficulties encountered in the implementation of each of its four pillars. 12. The authorities plan to update the four main pillars of the PRSP, and the staffs broadly agree with the work program outlined. After updating the macroeconomic and budgetary framework (2002-04) in light of the recent domestic and global economic slowdown and incorporating the results of the September 2001 Fund staff review of the program supported by the Poverty Reduction Growth Facility (PRGF), the authorities also plan to develop measures to complement the sectoral strategies established for the period 2001-04. The program, to be supported by HIPC Initiative related resources, will take into account new concerns expressed by the key stakeholders and will be designed to support the most vulnerable members of society. The staffs welcome the integration of the measures into the annual budget and the MTEF, but the authorities should endeavor to improve the process of costing, prioritizing along the revised indicators, and implementing the proposed measures. Also, staffs encourage the authorities to start working on updating the policy matrix and to include it in next year's progress report. F. Conclusions 13. In the view of the staffs, the PRSP-PR provides a good basis for evaluating progress in the implementation of the government's poverty eradication strategy. The report is candid and comprehensive in its coverage. It presents accomplishments where progress was achieved, discusses problems where targets were not met, and clearly highlights areas for further improvement. The staffs welcome in particular the progress achieved in intensifying the debate on poverty reduction in the country and fostering the participatory process associated with the implementation of the PRSP and its revision. Moreover, it is noted that, despite a reduction in government revenues in 2000 and first semester of 2001, expenditures in priority sectors has been maintained at adequate levels. At the same time, areas for further improvement include the need to update the medium-term macroeconomic framework (and its links to poverty reduction), presenting concrete steps for setting up a monitoring and evaluation system for the PRSP, developing a global vision on rural development, and strengthening social statistics. - 6 - 14. The staffs of the World Bank and IMF consider that the country's efforts to implement the strategy provide sufficient evidence of its continuing commitment to poverty reduction and, therefore, that the strategy continues to provide a credible poverty reduction framework and a sound basis for World Bank and Fund concessional assistance. The staffs recommend that the respective Executive Directors of the World Bank and the IMF reach the same conclusion. MINISTRY OF ECONOMY BURKINA FASO AND FINANCE POVERTY REDUCTION STRATEGY PAPER Progress Report July 2000 - June 2001 - 2 - Ministry of Economy and Finance - September 2001 TABLE OF CONTENTS INTRODUCTION ......................................................4 1. REVIEW OF THE CONTEXT AND THE MAIN PRINCIPLES UNDERPINNING THE PREPARATION OF THE POVERTY REDUCTION STRATEGY PAPER (PRSP) ................................................4 2. PROGESS IN IMPLEMENTING THE PRSP AND DIFFICULTIES ENCOUNTERED ...................................................5 2.1 ACCELERATING EQUITY-BASED GROWTH ...............................................................6 2.1.1 Stabilization of the macroeconomic framework ...........................................................7 2.1.1.1 The poverty situation ...........................................................................; .7 2.1.1.2 Fiscal management .7 2.1.1.3 Improving competitiveness and reducing factor costs .9 2.2 GUARANTEEING ACCESS BY THE POOR TO BASIC SOCIAL SERVICES . .10 2.2.1 Basic education and literacy 10 2.2.1.1 Basic education .10 2.2.1.2 Literacy .12 2.2.2 Health ..12 2.3 EXPANDING JOB OPPORTUNITIES AND INCOME-GENERATING ACTIVITIES FOR THE POOR 15 2.3.1 Reducing the vulnerability of the agricultural sector .15 2.3.2 Intensification and modernization of agriculture .17 2.3.3 Increasing and diversifying rural income .17 2.3.4 Opening up isolated areas .17 2.4 SUPPORTING PRODUCERS' ORGANIZATIONS AND COLLECTIVE INFRASTRUCTURE .. 18 2.5 PROMOTING GOOD GOVERNANCE ..19 2.5.1 Good democratic governance .19 2.5.2 Good economic goverance .20 2.5.3 Local goverance .21 3. MONITORING POVERTY ...21 3.1 IMPROVING THE PRSP PREPARATION PROCESS ..22 3.1.1 Publicizing/disseminating the PRSP .22 3.1.2 The PRSP review process .23 3.2 PRODUCING AND DISSEMINATING ECONOMIC INFORMATION . .26 4. OUTLOOK ..27 4.1 UPDATING THE STRATEGY ..27 4.1.1 Objective 1. 27 4.1.2 Objective 2.28 4.1.3 Objective 3................................................................................................28 4.1.4 Objective 4.................................................................................................29 -3 - 4.2 REVIEW OF THE PROGRAM OF PRIORITY ACTIONS ................................................... 29 4.3 IDENTIFICATION OF INDICATORS TO MONITOR RESULTS AND IMPACT ............................. 30 BOXES Box 1: KEY MTEF TARGETS ...................................................................................................... Box 2: SURVEY OF THE DECENTRALIZED SERVICES OF THE MINISTRY OF BASIC EDUCATION AND LITERACY (MEBA)................................................................................................... Box 3: SURVEY OF DECENTRALIZED SERVICES OF THE MINISTRY OF HEALTH ........................... TABLES TABLE 1: EDUCATION MONITORING INDICATORS ....................................................... 11 TABLE 2: CONSTRUCTION OF EDUCATIONAL INFRASTRUCTURE FOR 2000 ................ .................. 11 TABLE 3: CONSTRUCTION OF HEALTH INFRASTRUCTURE IN 2000 ....................................... ........ 13 TABLE 4: HEALTH MONITORING INDICATORS ....................................................... 14 TABLE 5: TARGETS FOR THE SUPPLY OF DRINKING WATER ....................................................... 16 TABLE 6: MONITORING INDICATORS ....................................................... 30 ANNEXES ANNEX 1: INDICATIVE TIMETABLE OF PRSP REVIEW ACTIVITIES .................................. ............ 31 ANNEx 2: PRSP - EXECUTION OF THE PROGRAM OF PRIORITY ACTIONS ................ ................... 32 4 - INTRODUCTION 1. The purpose of this report is to take stock of the first year of implementation of the poverty reduction strategy adopted by Burkina Faso's domestic stakeholders in June-July 2000. It focuses in particular on the assessment of conditionalities for the completion point under the enhanced HIPC Initiative, addressed during the review mission for the program supported by the Poverty Reduction and Growth Facility (PRGF). 2. The report is divided into three parts. The first gives a brief overview of the context and the main principles that underpinned the preparation of the PRSP. The second takes stock of progress and difficulties encountered in implementing the priority action plan for each of the four strategic objectives. Finally, the third describes the results of consultations with all the parties involved in the process, in terms of the preparatory work on the assessment exercises and the updating of the PRSP. 3. The conclusion outlines a number of guidelines for corrective action to be included in the paper in order to meet the new challenges arising from the concerns expressed by a number of partners during the consultation process. 1. REVIEW OF THE CONTEXT AND THE MAIN PRINCIPLES UNDERPINNING THE PREPARATION OF THE POVERTY REDUCTION STRATEGY PAPER (PRSP) 4. Burkina Faso launched a program of economic reforms supported by the Bretton Woods institutions and the entire international community in 1991, the main objective being to lay the foundations for sustainable economic development. These reforms produced tangible results, especially after the readjustment of the CFA franc exchange rate-in January 1994. Thus, in macroeconomic terms, Burkina Faso performed well, its real annual growth rate having reached approximately 5 percent on average in 1994-99, compared with about 3 percent in 1980-93. On the fiscal management side, tax revenue rose steadily in 1996-99, while operating outlays remained fairly well under control, thereby helping achieve and then sustain a positive fiscal savings rate since 1995. 5. However, the results of the two priority surveys in 1994 and 1998, based on the current poverty line-CFAF 41,099 in 1994 and CFAF 72,690 in 1998-indicated that the number of poor people had risen slightly, from 44.5 percent to 45.3 percent. This is a sign that good macroeconomic performance did not translate into any significant improvement in the living standards of the population. Thus, despite significant efforts to promote essential social services, Burkina Faso is among the poorest countries in the world and has a large social deficit, the main determining factors of which are rapid population growth (2.4 percent a year) and low labor productivity, especially in the agricultural sector, which employs almost 80 percent of the working population. 6. This social deficit, along with extreme poverty and the vulnerability of the population to crises of all types, is a major handicap for any sustainable development initiative. Aware - 5 - of this state of affairs and fully in line with the Letter of Intent on Sustainable Human Development Policy (LIPDHD) (which was founded on the concept of human security and with a view to implementing the Heavily Indebted Poor Countries (HIPC) Initiative, to which Burkina Faso gained access in September 1997), the Burkinabe Government prepared a poverty reduction strategy paper (PRSP) in 2000 for the period 2000-03. This was based on a participatory approach, in that it brought in all development actors, namely, the central and decentralized government administrations, institutions representing the people, development partners, civil society, and other stakeholders in the country. 7. Burkina Faso has to make up the enormous social deficit that is reflected in low school enrollment rates, inadequate access to sanitation facilities, the unsatisfactory level of access to drinking water, and food insecurity, and it must start making progress in the area of governance. To this end, the Govermnent is committed to giving government policies greater impact and to increasing the purchasing power of the very poor. To achieve these objectives, economic growth is indispensable. It will have to be more vigorous and better distributed over all the sources of growth, especially those from which the poor acquire or could sustainably acquire their income. 8. The strategy is based on the following seven major interdependent guiding principles: refocusing of the role of the State, sustainable management of natural resources, promotion of a new partnership with donors, promotion of good governance, inclusion of the regional dimension, regional balance, and the gender dimension. It is based on the results of ten years of adjustment and on what has been done since the adoption in 1995 of the Letter of Intent on Sustainable Human Development Policy (LIPDHD). The strategy also intends to draw on the subregional integration process in order to transform Burkina Faso's geographical handicap of being a landlocked country into an asset by positioning the country as a crossroads for the economies of the subregion. 2. PROGRESS IN IMPLEMENTING THE PRSP AND DIFFICULTIES ENCOUNTERED 9. A number of steps have been taken to implement the PRSP. The purpose of this section is to provide a brief description of the mechanism introduced domestically to monitor the PRSP, and to assess implementation of priority actions undertaken in each of the four strategic objectives, namely, (i) acceleration of equity-based growth; (ii) guaranteeing of access by the poor to basic social services; (iii) expansion ofjob opportunities and income- generating activities for the poorest inhabitants; and (iv) promotion of good governance. 10. To ensure that the PRSP is implemented correctly, the Council of Ministers, at its meeting on March 23, 2001, decided to set up a three-level monitoring mechanism, consisting of the following agencies: the Ministerial PRSP Oversight Committee (CMS/CSLP); the Interministerial PRSP Technical Monitoring Committee (CTS/CSLP); and the PRSP Sectoral Monitoring Groups (GS/CSLP). -6 - 11. The Ministerial PRSP Oversight Committee (CMS/CSLP) is the decision-making body. It is chaired by the Prime Minister and has three main tasks: (i) to evaluate the progress reports on the action plans established for the implementation of the poverty reduction strategy; (ii) to approve any changes in the strategy paper arising from the evaluation of sectoral action plans; and (iii) to find appropriate solutions to problems in implementing the PRSP. The CMS/CSLP meets at least once every six months with all or some of its members in attendance, depending on the items on the agenda. Its work is coordinated by the Prime Minister's Minister Delegate for Finance and Budget, who reports periodically on the implementation of the PRSP action plans to the development partners and regularly provides information to civil society. 12. The Interministerial PRSP Technical Monitoring Committee (CTS/CSLP) consists of the secretaries-general of the ministerial departments and senior staff of the agencies involved in the implementation of the PRSP. Chaired by the Secretary-General of the Ministry of Economy and Finance, the task of the CTS/CSLP is to coordinate the implementation of the sectoral action plans and ensure that actions undertaken in this context are mutually consistent. It submits quarterly reports to the Ministerial PRSP Oversight Committee on implementation of the PRSP, based on the sectoral groups' reports. The coordinators or lead donors are allowed to take part in the work of the Technical Committee, the Chairman of which has been authorized by the coordinator of the Ministerial Oversight Committee to keep civil society informed on a regular basis, in consultation with the secretaries-general of the other ministerial departments. 13. The PRSP Sectoral Monitoring Groups (GS/CSLP) are operational bodies created within ministerial departments and bodies involved in the implementation of the PRSP. Headed by the secretaries-general or senior staff of the bodies concerned, they meet at least once a quarter and are in charge of monitoring the action undertaken in the field and reporting on them to the Interministerial Technical Committee. 14. With regard to the strategic objectives themselves, the late introduction of the monitoring arrangements (eight months after the adoption of the PRSP) has had an impact on the implementation of most of the scheduled activities. However, based on the sectoral plan progress reports, the following conclusions can be drawn (paras. 15-77): 2.1 ACCELERATING EQUITY-BASED GROWTH 15. Aware of the fact that poverty reduction must be based on strong, equitable growth resilient to external shocks, the Government has developed a strategy to maintain a stable macroeconomic framework, improve the competitiveness of the economy and lower factor costs, accelerate the development of rural areas, and support the productive sectors. It has thus set a target for 2000-04 of an average growth rate in real terms of 6 percent, lower than the target set in the PRSP (7-8 percent), in order to factor in the uncertainties of the international economic situation. During this first year of PRSP implementation, reforms were introduced to accelerate changes in all sectors of the economy and to make more growth opportunities available. 2.1.1 Stabilization of the macroeconomic framework 16. The Government has pursued a policy of minimizing financial disequilibria, with a view to consolidating the results of recent years in the areas of economic growth and the control of inflation. However, because of some particularly unfavorable exogenous shocks (rise of the dollar and petroleum prices, bad weather conditions, decline in workers' remittances, and mass return of Burkinabe citizens residing abroad), the growth rate slowed significantly, to 2.2 percent in 2000 as against 5.8 percent in 1999. The 7 percent target set in the poverty reduction strategy could not therefore be met. 2.1.1.1 The poverty situation 17. The slowdown in growth in 2000 derives mainly from the primary sector, where growth was negative (-3.8 percent). The 2000 harvest resulted in a decline of 15.3 percent in cereals production, the source of a food deficit whose impact was made worse in some regions by the mass return of Burkinabe workers residing abroad following disturbances in some neighboring countries. Accordingly, the Government, with the support of its development partners, implemented an emergency plan for a total cost of CFAF 7.5 billion, of which CFAF 1.5 billion was used to meet free of charge the food requirements of the members of society living in extreme poverty. In the same vein, CFAF 600 million has been earmarked for a livestock rescue campaign in the areas hardest hit by the drought. Better rainfall in 2001 raises hopes for a better growth outlook, expected to be about 6.2 percent, spearheaded by recovery in the primary sector. 18. Because of the external shocks (including the decline in cotton exports) mentioned above, the external current account deficit worsened, widening from 12.7 percent of GDP in 1999 to 14.5 percent in 2000. As a result, monetary developments were characterized by a sharp drop in net foreign assets (-11.6 percent), expanding domestic credit (4.8 percent), and a concomitant growth in the money supply (5.1 percent). 19. Thanks to the good grain harvest of 1999, the average annual consumer price index declined slightly (-0.3 percent) in 2000. However, following the bad 2000 harvest, inflationary pressures rose during the first eight months of 2001, with the consumer price index rising to 7 percent on a year-on-year basis by end-August, mainly under pressure from cereal prices (23 percent). 2.1.1.2 Fiscal management 20. In 2000, fiscal management was hit by a drop in tax revenue, due to the unfavorable economic environment, a low rate of mobilization of external resources, and a worse-than- anticipated impact of the introduction of WAEMU's common external tariff. The effect of all this was that, despite the steps taken in the second half of 2000 to cut government spending, that the basic fiscal deficit rose to 2.1 percent of GDP. Despite these constraints on economic management, which led to powerful strains on the cash flow that were felt during the year, the Government was able to provide an adequate budget appropriation for the social sectors, which enabled it to meet the fiscal efficiency targets set for 2000 in the PRSP. - 8 - 21. Thus, the health and education budget allocations were implemented satisfactorily, and the decentralization of budget implementation has been pursued to ensure that the peripheral structures of these two ministries (regional basic education and health departments, and health districts) could work properly. To enhance the fiscal performance monitoring infrastructure, the Government has opted to undertake surveys and inspections from time to time among the people benefiting from these services, in order to assess the effectiveness of the action it has taken in this area of state budget implementation. 22. Concerning improvements in budget preparation, there were further efforts to integrate sectoral strategies and programs into the state budget. In March 2001, the medium- term expenditure framework (MTEF) for 2002-04 was updated, which enabled the sectoral budgetary allocations to be included in the budget circular in order to focus the preparation of the 2002-04 program budgets (whose 2002 annual tranche will be submitted to Parliament) more efficiently. This exercise, reported to all development partners (civil society and technical and financial partners) in May 2001, before its adoption by the Council of Ministers, represents considerable progress in making consistent the government spending program and the poverty reduction strategy for 2002-04., Box 1: Key MTEF Targets The following are the key targets: Shed light on the projected macroeconoimic situation over the next three-year horizon and define a coherent and realistic budgetary framework to.enhance the stability of'the national macroeconomic framework.- Put in place a system for allocatingresources-that is consistent with,the Government?s strategic sectoral and intersectorai priorities. ^*~ ' 'Calculate foreseeable sectoral financial appropriations enabling ministries to prepare strategies and action plans based on sustainable programs.- Promote more efficient use of resources by administrative units that havebeen granted 'more autonomy but are still within the framework of strict overall fiscal discipline. * - Put economic agents inra better position to interpret the Govermment's medium-term intentions, while helping create a more stable fnancial enviromnent, thanks to enhanced credibility of economic policies and greater confidence on the part of the economic agents. 2.1.1.3 Efficiency of government spending and equity 23. To analyze the impact of government spending, the Government decided in 1999 to reactivate the public expenditure review (PER) process, with a view to better focusing the budget, and achieving greater transparency in the budget process and greater equity in the allocation of budgetary resources. In this context, two reviews in the health and basic education sectors and two studies on state budget implementation-by the decentralized infrastructure and the institutional framework of the Public Investment Program, -9 - respectively-were undertaken in 2000. These studies provided a diagnosis of the budget process and led to major recommendations that were acted upon in the 2001 budget law. 24. In accordance with these recommendations, the Government accelerated the introduction of delegated appropriations for the decentralized infrastructure of the Ministry of Health and the Ministry of Basic Education and Literacy (MEBA) (regional departments and health districts) and took steps to ensure a satisfactory budget implementation rate in these departments. 25. Two public expenditure reviews are under way in the rural development and infrastructure sectors, respectively. For 2002, at least two sectors are to be covered, namely, justice and trade. In the justice sector, the review will provide a good understanding of its budget operation, with a view to preparing more commensurate budget appropriations in line with the national plan for justice sector reform. 2.1.1.4 Improving competitiveness and reducing factor costs 26. The strategy adopted to make Burkina Faso's economy competitive is based on a vigorous policy of improving human resources, pursuing domestic liberalization, and creating greater openness at the regional and global levels. In this light, whenever the occasion has arisen, the authorities have confirmed the irreversible nature of the economic liberalization process so as to increase its efficiency and create a favorable environment for the development of the private sector. In this connection, a Government/private sector meeting on investment opportunities and the fight against fraud was held on May 25, 2001 in Bobo-Dioulasso, under the patronage of the Prime Minister. Following this important meeting, the Head of Government announced a series of measures to promote the private sector, including the relaxation of customs deferment arrangements (especially those for bonded plants), the introduction of a special computer equipment program to support the modernization effort by industries, and the upward revision of the ceiling on employer and apprenticeship tax relief. 27. With a view to simplifying the conditions for the creation of enterprises and investments in Burkina Faso, efforts have been made since 1998 to harmonize domestic legislation with the regulations of the Organization for the Harmonization of Business Law in Africa (OHADA) and its uniform acts. Also, the member of administrative formalities required to establish enterprises was reduced from 15 to 8 (the goal is to further lower them to 4), which has led to a significant reduction in the time needed to process applications. To strengthen the regulatory framework, action is being taken to make the National Competitiveness and Consumption Commission (CNCC) operational. Despite some progress, more efforts are needed to further improve the business environment and the conditions governing investment. 28. The disengagement of the State from competitive sectors has been pursued over the past 12 months, including through the privatization of the national airline, Air Burkina and, soon, of the Societe des H6tels de Gare. Furthermore, in the context of the reform of the - 10- telecommunications sector, the opening of the mobile telephony segment to two private operators (TELECEL and CELTEL) during the first half of 2000 has generated 168 new jobs, improved access to telephones, and lowered communications prices charged by the state operator (ONATEL). The privatization process for ONATEL, currently under way, should be completed in 2002, together with that of management of the airports. The privatization program should make further progress in the next few months, following the adoption in July 2001 by the National Assembly of a law on the privatization of 13 public enterprises, including those involved in the energy sector. 29. The main event in the energy sector was the adoption by the Government in December 2000 of a letter of development policy including an operational timetable for implementation. It includes the establishmnent of a regulatory agency and the privatization of the Societe Nationale Burkinabe d'hydrocarbures (SONABHY) and the Societe Nationale d'tlectricite du Burkina (SONABEL). In the electricity sector, the grid was linked with that of Cote d'Ivoire in April 2001, boosting both supply and coverage and opening up the medium-term prospect of a reduction in the kilowatt/hour price, with the planned extension of the hookup to Ouagadougou. A rates study, the results of which are expected by the end of the year, will help adjust the rates to the expected production environment of SONABEL. 30. The tax system has also been adjusted to improve the competitiveness of enterprises. Readjustments were made in the 2001 budget law to ease the procedures and rates on acquisitions of goods, and withholdings on business profit taxes. Other measures were adopted in the area of excises (tobacco products) and insurance taxation to bring national legislation into line with WAEMU directives. New tax arrangements for petroleum products were adopted in line with the new pricing mechanism for petroleum products, which entered into force in February 2001. Lastly, a study on the macroeconomic implications of the taxation of enterprises for overall supply was carried out; its initial conclusions suggest a need for the Government to undertake targeted action to improve the competitiveness of enterprises. A follow-up to the study is under way, and an action plan including a timetable for implementation will shortly be submitted to the Council of Ministers. 2.2 GUARANTEEING ACCESS BY THE POOR TO BASIC SOCIAL SERVICES 2.2.1 Basic education and literacy 31. The poverty reduction strategy particularly emphasizes access by the poor to basic social services (basic education and literacy), the impact of which access on improving the health, living conditions and standards of the population is undeniable. 2.2.1.1 Basic education 32. The first year of PRSP implementation was characterized by mixed results in the primary education area, given the delays in starting up the Ten-Year Basic Education Development Program (PDDEB), which will be launched at the start of the 2001/02 school year. Although anticipated outcomes were achieved in the areas of gross enrollment rates for girls and primary school registration in rural areas, the reverse is true for the gross school enrollment rate in the poorest areas. Efforts need to be pursued in rural areas to increase enrollment of girls. They remain disadvantaged overall, despite the priority given to them in the poverty reduction strategy. Box 2: Survey of the decen'tralized services of the Ministry of Basic'Education and Literacy (MEBA) Based on the preliminary results of the Statistical Institute 2001 survey of the decentralized, services of MEBA, the cost of school attendance at the primary level paid by parents (minimum package, parents of schoolchildren dues, school meals, and other charges), rose by some 17 percent from 1999 to 2000, - because of the increase in the cost of the minimum package and the school meals payments; the latterr of these reflects the increased cost of foodstuffs after the 2000 cereals harvest shortfall. Table 1: Education Monitoring Indicators (of percent) Education 1999 2000 2000 2001 2002 2003 Target Performance Target Target Target 1. Gross enrollment ratio for girls 33.6 34.0 36.2 37.2 44.1 45.0 2. Gross enrollment ratio in the poorest rural areas 16.0 3. First-year enrollment ratio (CPI) 36.1 37.0 38.6 39.0 39.8 40.0 Girls 30.2 32.0 32.9 34.0 35.0 37.0 Rural areas 41.6 43.6 ... 20 poorest provinces 4. Literacy rate 27.5 28.7 29.1 29.9 31.1 32.4 Women 16.0 17.0 16.5 16.6 16.8 17.0 Proportion of literate women in the 20 poorest provinces 5. Average cost of primary school attendance* 4,003 4,695 * Average cost per class supported by households. 33. However, the shortfalls noted in the subsector were not due to a lack of budgetary appropriations to the primary education sector. Indeed, the ministry's budget allocation (excluding external resources and joint interministerial expenditure) increased from CFAF 26.5 billion in 1999 (15.3 percent of the total budget) to CFAF 29.9 billion in 2000 (18.3 percent of the total budget). For 2000, in terms of the supply of education, the accommodation capacity at the primary level was 850,000 classrooms, 80 percent of which were in good condition. In the 20 provinces with the lowest school enrollment, the accommodation capacity was for 210,000 pupils, with classroom usage at a rate of 91 percent; room was therefore available for about 20,000 more pupils. Table 2: Construction of Educational Infrastructure for 2000 Description Government Budget HIPC Resources External Financing Total Primary school 7 7 inspection offices Schools 25 33 101 159 Housing units 84 102 104 290 Pits 35 55 90 Latrines 55 130 157 342 34. In 2000, the school infrastructure building effort continued, with the construction of 159 schools. To provide these schools with a minimum of sanitary conditions, 342 latrines -12- were built. In addition, 206 housing units were built to improve working conditions for teachers. These statistics include the buildings financed by HIPC Initiative resources, which enabled the authorities to start the construction and outfitting of additional school infrastructure in the 20 poorest provinces, the overall aim being to achieve an equitable improvement of education indicators in Burkina Faso. 35. To facilitate proper implementation of the Ten-Year Basic Education Development Plan (PDDEB), the Government adopted a letter on education policy in March 2001 regulating movements among the various levels of education and eliminating the automatic link between admissions into the National Schools for Basic Education Teachers (ENEP) and employment in the civil service. The latter measure creates a new category of teachers to be recruited at the decentralized level, with a status similar to that of community teachers. The community schools program will therefore have to be expanded. The Government is making every effort to update the costing of the PDDEB to facilitate the preparation of implementation manuals and the introduction of a satisfactory management system. 2.2.1.2 Literacy 36. The statistics on literacy indicators do not give a true picture of the results achieved in this area. The authorities are aware of the need to intensify efforts to achieve the set targets; hence, the letter on education policy provides for the revision of curricula, improved training of facilitators and supervisors, better program design, the production of new and appropriate instructional materials and their dissemination to the various target audiences, and quality resource persons. 37. Meanwhile, efforts were pursued in 2000 to improve the supply of infrastructure, with the delivery to the education system of 225 satellite schools and 40 informal basic education centers, financed primarily by external assistance. The stated desire to make greater efforts in this area led, at end-2000, to the appointment of a Secretary of State responsible for literacy in the Office of the Minister of Basic Education and Literacy. 38. A forum on education is planned for the months ahead to assess the policy adopted to date in the sector and make any necessary changes to improve the education system overall. 2.2.2 Health 39. Improving health is the keystone of the effort to combat poverty in Burkina Faso. Indeed, despite significant efforts over several years, the health situation is still characterized by very high morbidity and mortality rates, attributable not only to low rates of access to, and use of, health services, but also to the high incidence of infectious and parasite-borne diseases. 40. Three objectives were retained in the PRSP for promoting access of the poor to health services: improve the poor's health indicators, limit the impact of health care payments on the income of needy households, and involve the poorest users and communities in health decisions. In light of the results achieved, the objective of improving health indicators in 2000 was largely met. However, greater efforts are needed to counter the impact of HIV -13 - infection and AIDS, whose prevalency rate-at about 10 percent, according to the latest available estimates-makes this scourge a serious development issue. 41. To improve access by the poorest segments of the population to health services and limit the impact of health care on the income of needy households, priority was given to establishing a human resources development policy and increasing budgetary appropriations for better monitoring of people in rural areas. Accordingly, the recruitment of 428 staff financed by HIPC resources allowed the strengthening of the health and social development centers (CSPS), and the proportion of these centers meeting the required standards was increased to 70 percent in 2000, compared with a target of 65 percent. Moreover, the districts are now entitled to recruit contractual personnel. 42. The standardization of health infrastructure was also pursued, in particular with the erection of 23 dispensaries, 18 maternity centers, 104 housing units, 16 warehouses for essential generic drugs (MEG), 56 CSPS (with the aim of reducing the distance to health facilities), and 15 medical-surgical facilities (CMA) to ease overcrowding at the national hospital centers (CHN). Table 3: Construction of Health Infrastructure in 2000 Description Government Budget External Financing Total CMA 15 15 CSPS - 56 56 CRM - 5 5 Dispensaries 9 14 23 Maternity centers 7 11 18 CTA (ambulatory care I I centers) MEG warehouses 8 8 16 Housing units 47 57 104 43. There was a small decline in budget-financed health expenditure from CFAF 24.12 billion in 1999 to CFAF 23.26 billion in 2000, related to the ending of certain projects. However, with the allocation of about CFAF 3.59 billion in HIPC resources, overall health appropriations for fiscal-year 2000 were CFAF 26.85 billion, representing an increase of 11.3 percent from the previous fiscal year. Despite these efforts, data from the National Health Information System (SNIS) indicate that the rate of visits to primary structures seems to have leveled off at about 20.6 percent in 2000. This could be explained primarily by the decline in rural incomes as a result of the poor grain harvest of the 2000 season, the corollary of which was a greater use of traditional medicine or self-medication. Data for 2000 on the number of new contacts, by individual and by year, are not yet available. - 14- Table 4: Health Monitoring Indicators 1999 2000 2000 2001 2002 2003 Performance Target Performance Target Target Target Vaccination coverage ratio (in percent) BCG 60 70 80 80 83 85 DTCP3 42 50 57 60 65 70 Measles 53 55 59 60 65 70 Yellow fever 50 55 56 60 65 70 Number of new contacts, by person and by year, in the primary structures (CSPS, CMA) 0.23 0.24 ... 0.25 0.26 0.27 Number of CSPSs meeting the personnel standards 60 70 65 80 90 Rate of MEG supply interruptions (in percent at CAMEG (Central Procurement Unit for Essential Generic Drugs) for the basket of 45 priority products) 2.13 <10 0.19 <8 <8 <8 44. As regards health indicators, vaccination coverage improved between 1999 and 2000. The targets set for BCG, DTCP3, measles, and yellow fever were exceeded as a result of the strengthening of the expanded vaccination program. Moreover, programs to eradicate guinea worm disease and to combat leprosy and tuberculosis, considered social diseases (i.e., affecting the poorest segments of the population), were systematically followed through health care packages. In addition, emphasis was placed, in the first quarter of 2000, on the management of epidemics, in particular meningitis, via technical support for the health districts (verification, application of the therapeutic guide, etc.), and it was decided to provide syringes and health diaries for the poor free of charge. Finally, for children 0-5 years old, hospital centers give 50 percent reductions and cover the costs of nutrition in the minimum activity package. Box 3: Survey of Decentralized Services of the Ministry of Health According to the results of a survey-of primary health care service users carried out,bythe - National Institute of Statistics and Demography (INSD) in 2001, the cost of medical acts in the-: primary structures seems to have generally increased, compared with the previous-year.. However,` the situation varies depending on the act in question and from'one province to the next.'Thus, .. - ., whereas increases are noted for interventions such as Casarean sections (2.3 percent) and the., treatment. of hernias (4.5 percent), those related to dystocia in childbirth and intestinal occlusions' - declined, respectively, by 11.2 percent and 19.5 percent..The highest costs'are generally noteda i- health districts located in provinces that are not easily accessible. 45. Since May 2000, all children age 0-5 and pregnant women have been receiving free micronutrients (iron, vitamin A, and iodine). To reduce the negative effects of malaria, which is the main cause of death among the poor, the cost of obtaining mosquito nets and treated curtains was lowered for this category of people. These actions were supplemented by a strategic plan covering the period 2001-05 and an action plan for 2001. 46. In order to improve women's lives by enhancing reproductive health, the experimental least-risk maternity program, carried out in 12 health districts, will be extended if its ongoing assessment proves conclusive. With the same aim in mind, policies, standards, and protocols were prepared and will soon be disseminated. - 15 - 47. The continuous availability of essential generic drugs was ensured through distributing warehouses, which had virtually no interruptions in supplies during the year. The availability of vaccines is ensured through the framework of vaccination activities at established centers and in the advanced strategy. 48. As regards the fight against HIV infection, AIDS, and STDs, three national plans were implemented for a total cost of $34.83 million from 1987 to 2001. A strategic framework covering the period 2001-05 was adopted by the Council of Ministers at its meeting on May 9, 2001, and financing for the framework was discussed at a donors' roundtable in June 2001. A program to reduce the transmission of HIV infection from mother to child was designed, and measures were taken to ensure the availability of blood and HIV screening tests in the health districts. The quick screening test is available at all blood transfusion centers. Given the importance accorded by the Government to the fight against this pandemic, the National Council Against AIDS and STDs and its permanent secretariat were attached to the Office of the President. As part of the search for alternative strategies to replace hospitalization, the ambulatory treatment center was put into operation as of September 2000. The sick now have good health care prospects, with the recent reduction ranging from 38 percent to 96 percent, in the prices of retro-antiviral products, following the conclusion in August 2001 of an agreement with a number of pharmaceutical firms. 49. One element of the health system is user and community participation in the management and development of activities. The functions of the management committees (COGES) were broadened in the areas of participatory microplanning and monitoring of priority health activities. Efforts are also being pursued to promote greater involvement by women. A guide for the preparation of rules of procedure for COGES is available, as well as a document on community-based services. 2.3 EXPANDING JOB OPPORTUNITIES AND INCOME-GENERATING ACTIVITIES FOR THE POOR 2.3.1 Reducing the vulnerability of the agricultural sector 50. As regards water and soil conservation, encouraging results were recorded over the past 12 months. For example, 23,378 antierosion sites and 18,826 hectares of zai were established, 7,124 hectares were mulched, and 1,638 hectares of glacis were reclaimed. In addition, as part of the effort to improve natural resources management, village land management committees (CVGT) are being established. 51. Prospects are promising in the area of soil fertility management, which is a component of the priority programs adopted in the Operational Strategic Plan (PSO). The plan was recently brought in line with PRSP objectives concerning the maintenance of productive machinery, the durability of production systems, and better distribution of income at the regional level. The major thrusts as regards the improvement and maintenance of soil fertility were the subject of a strategy adopted by the Government in 1998, as shown in the National Soil Fertility Management Action Plan (PAGIFS), aiming, among other things, at increasing yields and ensuring their sustainability by guaranteeing the protection of natural - 16- resources. Pending the implementation of this action plan, the highest authorities have expressed their commitment to promote the use of organic fertilizer under a program in, which peasant organizations will build 50,000 manure pits, supplementing those already created (24,000) within the framework of projects. 52. In the area of rural hydraulics and drinking water supply, the Government plans to strengthen institutions in the sector to ensure efficient resource management. In this regard, a water management policy law was adopted in February 2001. 53. Achievements included the creation of 1,034 new water supply points (compared with a target of 600), including 5 miniwaterworks, 774 pits (compared with an estimate of 500), and the restoration of 35 large-diameter wells. This latter component will be reinforced in coming years with HIPC resources. As regards agricultural hydraulics, 1,331 hectares of wetlands, 181 hectares of small-scale irrigation works, and 60 hectares of fields for experimenting with demonstration and sensitization were developed in Burkina Faso's agricultural regions. As regards pastoral hydraulics, I dam, 22 pits (including 15 as part of the livestock rescue plan), and 23 wells were built, and 5 bouli (artificial pool) sites were identified. Under the sectoral program to support livestock breeding, 32 stockyards were developed (20 for holding livestock and 12 for vaccination). Finally, at the institutional level, the framework paper on reform of the system for managing hydraulic infrastructure for the supply of drinking water (AEP) was adopted by the Council of Ministers at its meeting on October 18, 2000. Table 5: Targets for the Supply of Drinking Water Indicator 1999 2000 2000 2001 2002 2003 2010 Base Target Position Reduction of AEP disparities among provinces through an increase in the coverage rate Number of provinces (NP) < 50 percent 3 0 6 - - 0 5Opercent I2 Prepare prority actions program End-Sep. 2001 2002-2004 FEEDBACK: Technical and Financial Partners Civil Society _. . . Interministerial + ~ ~~~~~~Techni'cal Committee Finalize draft 2002-04 PRSP l l EXAMINATION BY COUNCIL OF MLNISTERS Mid-December EXAMINATION BY CMS End-November Ministry of Economy and Finance - 32 - Thousands of CFA francs STCIPDES Annex 2. PRSP Execution of the Priority Social Program HIPC Mobilization Aug. Commitments August Allocation 2001 2001 1. Health Current expenditure fnanced by the Budget 20,978,120.01 21,424,110.26 Current expenditure from HLPC resources 1,591,970.0 1,055,355.0 782,591.2 1.1. Wages and Salaries 6,647,315.0 8,028,454.51 1.1.1. Budget 6,535,997.0 7,988,099.5 1.1.2. HIPC Resources 111,318.0 102,983.0 40,355.0 Basic Health Centers 111,318.0( 102,983.0( 40,355.0 1.2. Goods and Services 5,391,151.0 4,503,968.3 1.2.1 Budget 3,910,499.0 3,761,732.1 1.2.2. HIPC Resources 1,480,652.0( 952,372.0 742,236.2 Generic drugs 49,300.0 0.0 Purchase of vaccines 149,772.0( 149,772.0( 149,721.6 Strengthening of operational capacities of the Mininstry of Health 374,735.01 374,735.01 164,999.0 Fight against deseases and lack of micronutriments 478,980.0( 0.0( 0.0( Liquidation of 1999 commitments 427,865.0( 427,865.0 427,515.5 1.3. Current Transfers 8,939,654.0 8,891,687.31 1.4. Investments and Capital Transfers 15,935,519.01 3,794,052.7' 1.4.1 Domestic resources 5,465,095.0 3,794,052.7 1.4.1.1 Budget 3,469,565.0 3,174,961.8! 1.4.1.2 HlPC Resources 1,995,530.0( 1,459,250.01 619,090.81 Building of Basic Health Center 536,280.0( 0.01 0.0 Equipment for Basic Health Center 1,459,250.0( 1,459,250.0( 619,090.8 1.4.2. Extemal Resources 10,470,424.0 Grants 2,547,642.0 Loans 7,922,782.0 Total Health 36,913,639.0( 0.01 25,218,163.0 Total Health excl. external resources 26,443,215.01 0.0( 25,218,163.0. Total Health financed by HIPC Resources 3,587,500.01 2,514,605.01 1,401,682.0' 2. Basic Education and Literacy I__________________ Current expenditure financed by the Budget 28,042,570.01 28,282,730.8 Current expenditure from HIPC resources 619,700.0( 239,770.0 255,718.6 2.1. Wages and Salary 22,609,195.0 23,434,515.8, 2.1.1. Budget 22,359,195.0 23,298,474.1 2.1.2. LHIPC Resources 250,000.0 74,770.0 136,041.7 Stipends personnel 250,000.0 74,770.01 136,041.7( 2.2. Goods and Services Expenditure 3,080,396.0 2,657,925.91 2.2.1. Budget 2,710,696.0 2,538,249.0 2.2.2. HIPC Resources 369,700.0 165,000.0 119,676.9 _ Current expenditure and monitoring 170,000.0_ 0.0( 0.0( Purchase of educational materials 199,700.0_ 165,000.01 119,676.9 2.3. Current transfers 2,352,979.0 2,190,289.11 2.4. Investments and Capital Transfers 20,577,391.0 4,996,627.8 2.4.1. Domestic resources 5,916,353.0_ 4,996,627.8 2.4.1.1 Budget 2,436,053.0 2,362,766.7 2.4.1.2 HIPC Resources 3,480,300.0_ 2,634,064.0 2,633,861.0 Building and refection of schools 2,848,530.0( 2,343,064.0( 2,343,064.0 Equipment of schools 161,070_0_ 291,000.01 290,797.0 Viabilisation of schools 470,700.0 0.01 0.0 2.4.2. External Resources 14,661,038.0( 0.0( 0.0( Grants 13,015,068.0 Loans 1 645,970_01 Total Basic Education and Literacy Ministry 48,619,961.01 33,279,358.71 Total Basic Education and Literacy Ministry excl. external resources 33,958,923.0 0.0 33,279,358.7 Total HIPC Resources 4,100,000.0 2,873,834.01 2,889,579.6 3. Rural roads Total use of HIPC Resources 2,562,500.01 1,796,146.01 1,772,961.7 Overall HIPC Resources in 2000 io,zso.ooo. 7,184,585.01 6.064,223.4: o:\doc\sa\bfa\mOl -2\prsp\-9357027Exe-AoQtO 1116/20015:38 PM