Document of The World Bank FOR OFFICIAL USE ONLY Report No. 61962-BF BURKINA FASO JOINT IDA-IMF STAFF ADVISORY NOTE ON THE POVERTY REDUCTION AND GROWTH STRATEGY PAPER June 23, 2011 Poverty Reduction and Economic Management 4 Country Department AFCF2 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 otherwise be disclosed without World Bank authorization. INTERNATIONAL DEVELOPMENT ASSOCIATION AND INTERNATIONAL MONETARY FUND BURKINA FASO Joint Staff Advisory Note on Poverty Reduction and Growth Strategy Paper Prepared by the Staffs of the International Development Association And the International Monetary Fund Approved by Michael Atingi Ego and Thomas Dorsey (IMF) And Obiageli K. Ezekwesili (IDA) June 23, 2011 I. OVERVIEW 1. The Strategy for Accelerated Growth and Sustained Development (SCADD), adopted by the government in December 2010 provides a framework for the achievement of the government’s goals for 2011—15. Building on progress under the Poverty Reduction and Growth Strategy (PRSP) implemented in 2000—2010 and consistent with the country’s long-term development strategy (Burkina Faso Vision 2020), the SCADD sets out economic and social policies to support broad-based growth, sustained poverty reduction, and progress towards the Millennium Development Goals (MDGs). Macroeconomic policies and structural reform priorities in the SCADD are in line with the policy framework underpinning Burkina Faso’s economic program supported by the IMF under the Extended Credit Facility Arrangement. The SCADD is also consistent with the recent World Bank Africa strategy and the focus on vulnerability and governance. This Joint Staff Advisory Note (JSAN) provides comments and advice from the staffs of the World Bank and IMF for strengthening the SCADD implementation, notably through annual progress reports (APRs). 2. The SCADD builds on lessons and experiences learned from the PRSP process. While it is recognized that poverty alleviation is a long-term challenge, there is a greater scrutiny in the SCADD of the implementation process to ensure effectiveness. More importantly, given the low responsiveness of poverty to policy measures in the past, the SCADD seeks to improve the comprehensiveness in sectoral coverage. There is a stronger focus on private sector development, investment climate, rural transformation, and cross- cutting issues including gender, population, and the environment. Building on previous efforts, the new strategy aims at strengthening the monitoring and evaluation systems, along with indicators and targets. 2 3. The SCADD was prepared before the social unrest of 2011, and it will be important to increase the priority given to good governance, accountability and inclusive growth in the course of its implementation. Broad protests by a wide range of constituents, including soldiers, farmers, students, and shopkeepers, have affected Burkina Faso’s long standing social and political stability, and led to growing social demands. Many of these represent calls for an impartial and honest justice system, a more transparent and rule-based procurement process, a more open political debate, greater accountability by government to its citizens, and in general a more active fight against corruption. Such themes are receiving new attention by the authorities; they will need stronger emphasis in the implementation of the SCADD. 4. The SCADD was prepared based on the outcome of an extensive consultation process and thematic studies. Consultations were carried out with various stakeholders at the national and regional levels, including civil society, the public and private sectors, and national institutions. A website was also put in place to gather the population’s contributions to the strategy’s preparation. Various studies, notably on Burkina Faso’s socio-economic conditions and sources of growth provided inputs for the SCADD’s preparation, and the country’s development partners were given the opportunity to participate in the process, particularly through comments on draft SCADD documents. In the aftermath of the recent wave of unrest, development partners have seen an increasing need for broader legitimate avenues for articulation of citizen voice. 5. While focusing on progress towards the MDGs and poverty reduction, the SCADD’s main objective is to achieve strong and sustained economic growth. To this end, macroeconomic policies and reforms for 2011—15 aim to support economic diversification; improve the absorptive capacity for public investment; increase investment in infrastructure and the energy sector to support productivity gains in the private sector; and maintain the momentum in structural reforms implementation. To achieve its objectives, the new strategy rests on four pillars: (i) the promotion of growth poles and the reduction of economic vulnerability; (ii) the development of economic infrastructure; (iii) the investment in human development; and (iv) the promotion of sustainable development. Under the SCADD, poverty reduction actions are aligned with the achievement of MDGs, with a particular emphasis on the following areas:  Eradication of extreme poverty and hunger.  Achievement of universal primary education.  Promotion of gender equality and empowerment of women.  Improvement in the population’s general health, notably through a lower mortality rate for children under-five years of age.  Improvement in maternal health, and fight against HIV/AIDS, malaria, and other diseases, and  Environmental sustainability. 3 II. POVERTY ANALYSIS 6. Staffs agree with the broad assessment of poverty in the SCADD. They find that the characteristics of poverty are well-documented in the SCADD document. Nonetheless, they recommend that the authorities continue to refine statistical methodologies to ensure that results from various surveys are comparable. Staffs support the SCADD approach that accelerated growth and greater poverty reduction through an increase in public investment should have stronger links to the rural economy. Growth in rural areas, as well as poverty reduction would benefit from a deepening of reforms in the cotton sector, which would be supported by an efficient use of inputs, a stronger price stabilization mechanism, and better global prices for cotton. Staffs encourage the authorities to carry out additional empirical work to assess the underlying causes of poverty and provide a closer analytical understanding of the relationship between poverty outcomes and policy measures. They find that the outcome of this additional work on poverty dynamics will be useful to guide the public investment priorities in the following years. 7. As detailed in the SCADD, the preliminary results of the 2009 household survey shows a 2.5 percentage points decline in poverty to 43.9 percent. Other studies using household assets and wealth have found a greater decline in the incidence of poverty between the 1990s and the 2000s. In addition, there has not been a major change in inequality between 1998 and 2009. The Gini coefficient for inequality has stayed at 0.46 since the mid—90s. According to provisional results, poverty was reduced in rural areas but increased in urban areas over the period 2003—2009. However, the lack of full comparability of different surveys may have also created potential measurement errors on the scale of the reduction. While new surveys have strongly improved designs and methodologies, the comparison with past surveys is difficult. The World Bank staff is working with the authorities to build comparable welfare indicators using the same underlying information in different surveys. III. MACROECONOMIC POLICIES AND FINANCING 8. The authorities and staffs concurred that an efficient implementation of policies under the SCADD could accelerate growth and enhance poverty reduction efforts. Sound policies and reforms in the last decade have contributed to macroeconomic stability in Burkina Faso. Economic growth averaged 6 percent in 2000—10, fuelled by strong performance in the agricultural, cotton, mining, and services sectors. Inflation has been moderate, particularly in the last two years where increased agriculture production has helped contained inflationary pressures. While the external position remains fragile because of Burkina Faso’ narrow export based, and the economy’s vulnerability to terms of trade shocks, the authorities have maintained prudent borrowing policies. Staffs believe that this environment provides a solid stepping stone for higher growth through the authorities’ growth model, which combines the promotion of growth poles, notably to support agri- business, the development of small-and-medium sized enterprises, the implementation of pro-poor programs, and structural reforms. Nonetheless, achieving an economic growth rate averaging 10 percent during 2011—15 as envisioned under the SCADD seems too optimistic and possibly unrealistic because it will take time to bring policies and growth-enhancing programs to fruition, and to address existing impediments to growth. In this vein, staffs recommend that the authorities be selective and define key priorities compatible with 4 implementation capacity, private sector participation, and available financing. In addition, they advise the authorities to define clear priorities in their development policies with a focus on improving the business environment further, and closing the infrastructure gap. 9. Social unrest in the first half of 2011 and unfavorable exogenous shocks are likely to have an adverse impact on the first year of the SCADD’s implementation. The government has initiated a dialogue with different socio-political groups and stakeholders, responding to demands for institutional and political change, and has put in place steps to foster transparency and accountability and give greater voice to civil society. As one of the causes of unrest was the high cost of living, due to higher fuel and food prices and the crisis in Côte d’Ivoire, the authorities have taken social measures including price reduction for some basic staples and reduced the tax rate on salaries. Staffs encourage the authorities to revise the macroeconomic framework underlying the SCADD at the time of the first APR, to ensure that growth projections take into account developments in 2011. More generally, staffs encourage the authorities to take the opportunity of the first APR to make growth objectives consistent with projected public investment; progress in addressing impediments to growth; and the expected impact of growth-enhancing policies under the SCADD. In the event, staffs urge the authorities to take the needed actions to launch the pilot growth pole of Bagré, in collaboration with the World Bank. 10. Staffs welcome the SCADD’s emphasis on macroeconomic stability, fiscal sustainability and prudent borrowing policies. The SCADD recognizes that continued fiscal consolidation, enhanced public financial management, and prudent borrowing policies are critical for sustainable growth and poverty reduction. However, beyond the fiscal framework Table presented in the document, the SCADD falls short of providing a comprehensive macroeconomic framework and the supporting fiscal strategy for the medium-term. Such a strategy would clarify the potential for greater domestic financing and the possible need for continued external financial support in the outer years. Staffs urge the authorities to address this shortcoming in the first APR. Technical assistance recommendations in PFM, as well as Burkina Faso’s recently updated medium-term expenditure frameworks provide good resources in this regard. 11. The strategy is estimated to cost about US$15 billion for 2011−15. The SCADD’s costing was prepared using the authorities’ macroeconomic forecasting model, based on the outcome of the consultation process, the authorities’ growth and poverty reduction objectives, and medium-term expenditure framework for 2011-15. Financing needs are not ring-fenced but instead are aligned with the budget framework for the medium-term. Staffs believe that presenting the SCADD’s implementation programs and investment projects as part of the government budget is an important feature of the strategy which provides flexibility for scaling down expenditure in the context of annual budget preparation and review, in case of financing and revenue shortfalls. Staffs support this approach and encourage the authorities to update the strategy’s costing through the first APR to reflect investment prioritization and other revisions to the SCADD, and to identify financing sources for any remaining financing gap. Staffs also encourage the authorities to take this opportunity to elaborate on the costing method for the SCADD. 5 IV. EQUITY AND POVERTY REDUCTION A. Structural Reforms and Sectoral Policies 12. Staffs welcome the authorities’ commitment to accelerate structural reforms. They concur with them that priority areas for structural reforms remain: public financial management, financial sector development, cotton sector reforms, and the business environment. While welcoming progress in these areas in recent years, staffs find that a discussion in the SCADD on prospective reforms was warranted, particularly in the cotton and financial sectors, which are critical for economic development and poverty reduction.  Regarding financial intermediation, the authorities agree with staffs that limited access to financial services is a major obstacle to private sector development, particularly for small and medium-size enterprise (SME). Staffs agree with the authorities on challenges involved in improving the supply and geographic distribution of financial services for SME. Constraints primarily stem from: (i) an inadequate supply of financial services, specifically financial institutions’ lack of expertise in SME lending; (ii) a poor regulatory environment; (iii) weaknesses in the financial information infrastructure; and (iv) the weak management capacity of SMEs, notably in keeping appropriate accounting and developing credible projects. They welcome the authorities’ commitment to improve access to financial services, and encourage them to accelerate the implementation of the financial sector strategy.  For the cotton sector, staffs welcome the authorities efforts to improve the sector’s viability through increased productivity by scaling up the use of improved cotton seeds from 20 percent of cultivated area in 2009 to more than 60 percent by 2011; improved access to inputs by reducing producers’ debts; and recapitalization of the main cotton ginnery (SOFITEX). Staffs believe that improved prospects in the cotton sector provide a good opportunity to press ahead with reforms in order to enhance medium-term financial viability for the sector. 13. Staffs support the SCADD’s emphasis on investment climate reform for a private sector–led growth. The authorities have made important progress in improving the business climate, bringing the country to the top ten reformers in the world, and the first in the West African Economic and Monetary Union (WAEMU) region, in the last three years. Key areas of improvement have included: the rigidity index for employment, business registration, strengthening land property and establishing commercial courts. However, Burkina Faso still ranks poorly in the Doing Business indicators (152 out of 183 countries in 2011). In particular, judiciary constraints remain a deterrent to financial and private sector development. Staffs urge the authorities to maintain efforts aimed at improving the business environment further, and stimulating income-generating activities and competitiveness. In this context, they encourage the authorities to prepare a reform program for the judicial sector, to be implemented under the SCADD, taking into account ongoing initiatives at the level of the WEAMU. 14. Staffs welcome the SCADD’s renewed focus on infrastructure development. The SCADD discusses the infrastructure projects that the government plans to realize over the next few years, focusing on roads, airports, and electricity. The World Bank-supported Bagré 6 Growth Pole Program is also expected to promote a viable model of agribusiness development, with a greater control of water resources. The Bagré pilot initiative will also be extended to other areas of the country as part of a broad-based growth pole strategy. The development of the mining sector will be important in this approach since the sector figures prominently in many of the new growth poles. These projects should help provide the necessary basis for private sector development, and increase economic activity in provinces. In view of the focus on the growth pole model in the SCADD, staffs encourage the authorities to carry out a full evaluation of the Bagré pole pilot and draw lessons from it before replicating it to other areas. The emphasis on public-private partnerships is acknowledged and the Public Private Partnership (PPP) strategy adopted by the authorities in March 2011 represents an important first step. Staffs encourage the authorities to push ahead with the preparation of a PPP law consistent with this strategy, and the establishment of an appropriate institutional framework. Staffs welcome the concerns expressed in the SCADD on high transaction costs in the transport sector and its negative impact on investment and growth. The preparatory studies undertaken on the liberalization of trucking through the gradual elimination of the quota and queuing systems are welcome. Staffs advise that these studies be followed up with careful implementation. 15. Staffs endorse the SCADD’s focus on improving the electricity infrastructure. The Bobo-Dioulasso-Ouagadougou transmission line was commissioned at end—2009. However, Burkina Faso has been going through load shedding during the early part of 2010 and again during 2011, partly because of shortages in energy supplied from Côte d’Ivoire. By participating in the West African Power Pool, Burkina Faso would gain access to regional power supplies, significantly reducing electricity costs and providing opportunities for improved regional ICT connections using the same transmission lines. However, while these connections are important, the authorities may wish to articulate a sustainable national strategy on energy which addresses the rationalization of pricing systems for energy products to promote efficiency and industrial development, as well as exploiting renewable energy sources. Overall, staffs endorse the SCADD’s emphasis on alleviating the infrastructure bottlenecks, especially in the transport, electricity and ICT sectors since transit and energy costs in Burkina Faso are among the highest in the sub-region. 16. The SCADD highlights the need to focus on rural development given the prevalence of poverty in rural areas. Burkina Faso has lacked a rural development strategy for many years, and staffs encourage the authorities to prepare and implement such a strategy as part of the SCADD implementation process. This would help the authorities in slowing down rural exodus and reducing poverty in rural areas. The importance attached to agriculture is well justified given the prevalence of poverty among farmers. While the strategy as delineated in the SCADD is holistic and beneficial to the poor, much attention will be needed in improving farmer access to quality inputs and credit. Staffs recommend that the government uses the first APR to discuss measures to raise productivity and strengthen the robustness of the agricultural sector. Increasing productivity in several food value chains, such as maize, rice, sorghum and millet, will reinforce horizontal and vertical diversification with development and adoption of post-harvest technologies and management practices. Staffs support the SCADD’s discussion on the vulnerability of the economy to climate change and land degradation and encourage the implementation of measures taken by the authorities to reduce these potential risks. 7 B. Governance 17. The SCADD appropriately identifies economic governance as strategically important for Burkina Faso’s development. Staffs welcome the SCADD’s frank discussion of constraints in enhancing governance in Burkina Faso and highlight the particular importance of efforts to strengthen the rule of law, consolidate fiscal decentralization, and strengthen accountability within the civil service to promote governance. The recent unrest has highlighted the importance of further governance reforms. The SCADD emphasizes the importance of continuing to develop robust internal and external controls to curb corruption and ensure accountability of public institutions. Staffs consider that an independent, efficient and responsive judiciary is vital to ensure that internal and external controls lead to accountability, sanctioning of misconduct and prevention of future abuses by public institutions. A challenge for the government in implementing the SCADD will be to accelerate and prioritize justice sector reforms, especially relevant in the wake of the recent unrest, by providing appropriate resources and monitoring performance. To achieve transparency, a clearer emphasis could also be placed upon enhancing access to information by the population. Staffs recognize progress in implementing conformity measures for the Extractive Industry Transparency Initiative (EITI) principles in 2011. 18. An effective decentralized program of service delivery will make it possible to streamline the expenditure process, reduce regional inequalities, and better address the needs of the local population, in particular the most vulnerable groups. Staffs recommend that a particular focus be placed on developing an equitable revenue collection base for local governments to fulfill their mandate. It would also be useful to explore opportunities for strengthening citizen engagement in local development, beyond the elaboration of local development plans. The authorities’ commitment to decentralization is welcomed, particularly given its potential to enhance efficiency gains and improve service delivery, and stimulate localized economic growth and promote the equitable redistribution of growth. The SCADD recognizes the challenges in the decentralization process and notes ongoing issues related to weak local government capacity and limited transfer of resources. Decentralization reforms as articulated in the SCADD can address the issue of adequate financial transfers to the local level and rationalization of administrative structures in light of the new institutional structure of the state, together with improvements in civil service administration. In parallel to decentralization and as a complementary reform, staffs recommend that urbanization needs be managed as well via better urban planning and improvement in city quality to help build stronger linkages between rural and urban areas. Staffs recommend a continued focus on decentralization, with a particular emphasis on building local government capacity and the transfer of competence and resources from national to local levels. 19. Staffs welcome the authorities’ commitment to improve public financial management and ensure greater coherence with WAEMU guidelines. With regard to the budget process, the authorities intend to pursue the implementation of the program budgeting approach. However, this critical reform should be implemented in coherence with the PFM Directives recently issued by WAEMU commission, including important reforms in the area of the decentralization of budget management, accrual accounting, and adoption of the risk- based approach for the internal control bodies and certification of the state financial 8 statement by the Supreme Audit institution. The Audit Court (Cour des Comptes) now publishes on a regularly basis a Yearly Audit Report, the quality of which has improved according to the 2010 PEFA results. Staffs advise the authorities to ensure the timely publication of these reports, and to follow up on its recommendations. They also encourage the authorities to address remaining challenges for the revision of the Organic Law for the Supreme Audit Institution, and to increase financial and technical support to external financial oversight bodies. C. Human Development and Social Protection 20. Measures implemented by the government in recent years have led to progress in the human development area, notably for access to education although its quality remains a concern. In the area of education, good progress has been made in the implementation of the Ten-Year Basic Education Development Plan (PDDEDB, 2001−2010), notably in the area of school infrastructure. The number of schools rose from 8,182 in the 2006/07 school year to 10,198 in 2009/10, an increase of 25 percent. During the same period, the number of classrooms grew from 28,925 to 38,269. The gross enrollment rate in primary education increased by more than 10 percentage points between 2005 and 2010. The reform has also helped reduce school fees paid by parents in lower secondary school. Access to secondary and higher education has also increased. Nonetheless, important disparities among regions and difficulties in attracting and retaining skilled personnel remain. Further improvements in both access and quality are needed. Staffs welcome the SCADD’s focus on a continued expansion in primary education as well as a coordinated expansion of secondary and vocational education. However, the educational indicators can still improve considerably so that adult literacy moves beyond the 28.7 percent estimate in 2007. Staffs recommend the continued implementation of the education strategy and a scaling-up of both sectoral investment and reforms. Staffs also advise a close monitoring of drop-out rates in primary education, and encourage the authorities to take appropriate measures to improve access to schools and teacher quality. 21. Staffs welcome the authorities’ focus on the health sector in the SCADD, and note the good progress made in this sector in 2009−2010. A new ten-year health sector program (PNDS II) 2011−2020 was adopted in 2010. Public health expenditure increased from 7.4 percent of GDP in 2004 to about 10 percent in 2010. The percentage of births assisted by trained health personnel has also increased to reach 70 percent in 2010. Despite this progress, however, MDGs in the health sector are unlikely to be met by 2015. Staffs welcome the SCADD’s attention to increasing health sector financing and improving the equity of resource allocation, and encourage the authorities to take decisive actions to improve the coverage and efficiency of health expenditures and strengthen the linkages between investments and outcomes in the health sector. 22. Staffs commend the authorities’ work on HIV/AIDS and their commitment to scale up care and treatment as articulated in the SCADD. The authorities prepared a third-phase HIV/AIDS strategy (2010−2015), which seeks to improve targeting of interventions, including those for high-risk groups. HIV prevalence is stabilizing, and declining in some urban areas, partly thanks to prevention efforts supported by donors including an IDA MAP project, and strong government engagement. The 2008 prevalence 9 rate was 1.8 percent compared with 2.03 percent in 2006. The SCADD envisages a scaling up of interventions towards reducing HIV incidence. Staffs propose a deeper analysis of HIV trends through APRs. They encourage continuation of reforms in this area and welcome the multi-sectoral focus and orientation towards prevention and surveillance. 23. Staffs highlight the need to focus the SCADD on further social inclusion and equity. The total budget for poverty-reducing spending increased from 5.3 percent of GDP in 2006 to 6.8 percent in 2010. Staffs stress the importance of greater allocation of budgetary resources to protect vulnerable groups, and call for a deeper analysis of vulnerable groups needs than currently covered under the SCADD. They find that the scope and coverage of the existing social safety net system remains limited. On average, excluding fuel subsidies, spending on social safety net programs was about 0.6 percent of GDP in 2005-09. The universal fuel subsidies are expensive and have had a limited impact on the poorest deciles of the population. Staffs recommend that, as part of the SCADD implementation, the authorities improve the focus on social safety net systems, and prepare a medium-term youth employment action plan to smooth employment policy. 24. Gender inequality remains a major obstacle to development and economic growth. The SCADD rightly recognizes the obstacles faced by women as well as disparities in school enrolment. As part of the strategy to improve gender, the authorities adopted a new National Policy for Gender Promotion in 2009 and an implementation plan in 2010. In addition, Permanent Secretariats for gender promotion were created in 2010 at the central and regional levels in order to coordinate all the efforts and encourage partnerships around the implementation of the action plan. Gender equality continues to be on the government top agenda as underlined in the SCADD. Staffs believe that the SCADD could provide a platform for addressing gender inequality. V. IMPLEMENTATION, MONITORING, AND EVALUATION 25. The SCADD’s implementation strategy comprises institutional arrangements, review processes, and annual consultations between the government and the country’s development partners. The institutional setup for sound monitoring and evaluation system has been put in place, although some challenges remain. A group of sectoral and thematic commissions that monitor programs and report progress are the linchpin of the new system and provide a forum for policy dialogue and results monitoring. Staffs find the strategy comprehensive, with clearly defined responsibilities. This notwithstanding, existing administrative capacity constraints need to be addressed to ensure an efficient functioning of the monitoring and assessment mechanisms. In addition, staffs believe that the performance matrix, as well as the monitoring system for sectoral performance could be further strengthened with annualized benchmarks to measure progress. 26. Staffs agree that the National Steering Committee (NSC) for the SCADD should be entrusted with the overall oversight of the strategy’s implementation. They urge the authorities to ensure that the NSC is adequately equipped with human, financial, and technical resources to carry out its duties. Moreover, the NSC needs a proper coordination with the various thematic groups. In this vein, staffs underscore the need to improve the quality and timeliness of data needed to assess the impact of macroeconomic and social 10 policies; to strengthen communication and information flows between ministries; and to strengthen analytical capacity as well as accountability for all stakeholders in the SCADD implementation process. The staffs stress the need to improve statistical capacity and data quality to properly track progress and create accountability. 27. Staffs concur with the authorities’ analysis that key risks to the SCADD’s implementation include: continued or worsening social unrest, securing financing for the strategy’s implementation, the economy’s vulnerability to natural disasters, terms of trade shocks, and potential adverse regional and global developments; and stakeholders’ consensus. Achieving SCADD’s objectives will critically depend on the authorities’ ability to address these risks, while removing impediments to growth. Staffs urge the authorities to take the opportunity of the first APR to prepare contingency measures to be implemented should key risks materialize. VI. CONCLUSION 28. The authorities have set up ambitious developmental goals for Burkina Faso and outlined policies and reforms to reach these goals in the next five years under the SCADD. To safeguard a successful implementation of the new strategy, the authorities need to address key challenges related to existing shortcomings in investment execution, procurement processes, and absorptive capacity, as public investment is expected to play an important role to close the infrastructure gap and support efficiency gains in the private sector. As the authorities plan to rely mostly on domestic resources to finance the SCADD, they will need to prepare a medium-term fiscal strategy, spelling out specific measures to enhance revenue collection, and advance expenditure management reforms. To address human development challenges, the authorities need to maintain the momentum of reforms in social sectors, while improving access to social services and developing effective social protection systems. Advancing structural reforms will be critical to enhance growth prospects and fight poverty. A particular emphasis will be needed in relation to restoring the viability of the cotton sector, improving the overall investment climate, strengthening diversification, enhancing governance, and improving service delivery in health and education. 29. Staffs encourage the authorities to address some of the shortcomings identified in this note in the first APR. The recommendations below could help in this regard.  Give higher priority to the issues of governance and accountability and provide more details on the types of reforms to be adopted.  Refine poverty dynamics analysis through additional empirical and analytical work to assess the causes of poverty and better grasp the link between poverty outcomes and policy measures.  Define clear priorities in development policies and planned investment projects, with a focus on improving the business environment further, closing the infrastructure gap, and addressing administrative capacity constraints. This would also help the authorities update the costing for the strategy.  Revise the macroeconomic framework underlying the SCADD to ensure that growth projections take into account developments in 2011; and more generally, that they are 11 consistent with projected public investment and related financing constraints, and to identify financing sources for residual financing gaps, particularly for the next year.  Prepare a medium-term macroeconomic framework and the supporting fiscal strategy for the SCADD, with a particular emphasis on revenue-enhancing measures.  Prepare a medium-term strategy to accelerate structural reforms in priority areas identified in the SCADD.  Press ahead with the preparation of a PPP law consistent with the new strategy adopted in early 2011, and establish an appropriate institutional framework. 30. In considering Burkina Faso’s Strategy for Accelerated Growth and Sustainable Development, Executive Directors may wish to consider the following issues:  Do Directors agree with staffs’ view that the SCADD provides an adequate framework to accelerate growth and poverty reduction?  Do Directors concur with the areas identified by staffs as priorities for strengthening the SCADD and its implementation? DOC ID : 4471449  44DMSDR1S‐4471449‐v1‐Burkina Faso ‐ SCADD.DOCX juin 24, 2011 (12:56 )  1   TABLE OF CONTENTS Acronyms and Abbreviations........................................................................................................ III Foreword ...................................................................................................................................... VI Introduction ................................................................................................................................... 1 I.Overview of a Decade of Economic and Social Development 2000-2009 ................................... 5 I.1 Economic Performance ............................................................................................................... 6 I.2 Social Situation .......................................................................................................................... 9 I.3 State of the Environment ........................................................................................................... 18 I.4 State of Governance ................................................................................................................. 20 I.5 Regional and Local Development ................................................................................................ 23 I.6 Key Lessons ............................................................................................................................ 25 II. Strategy for Growth and Sustainable Development................................................................. 28 II.1 Foundations ................................................................................................................................................. 29 II.2 Strategy Guidelines .................................................................................................................. 30 II.3 Strategy Axes ......................................................................................................................... 36 III. Implementation of Strategy .................................................................................................... 56 III.1 Growth Acceleration Prerequisites ............................................................................................. 57 III.2 Accelerated Growth Scheme .................................................................................................... 58 III.3 Funding Scheme .................................................................................................................... 60 III.4 Strategy Implementation .......................................................................................................... 62 III.5 Monitoring and Evaluation Strategy ........................................................................................... 63 IV. Risk Analysis ......................................................................................................................... 68 IV.1 Financial Risk ....................................................................................................................... 69 IV.2 Risk Linked to Natural Conditions ............................................................................................. 69 IV.3 Risk Linked to a Low Adherence by Actors ................................................................................. 69 IV.4 Risk Due to International and Regional Economic Situation .......................................................... 69   I   ANNEX ........................................................................................................................................ 71 List of Tables   Table 1: Evolution of the share of social sector n public expenditure from domestic resources .......... 8 Table 2: Trend of official development assistance over the period 2006 to 2010 ................................. 8 Table 3: Evolution of poverty indicators according to the 4 (four) surveys ......................................... 10 Table 4: Evolution of the incidence of poverty according to area of residence ................................... 11 Table 5: Breakdown of population, according to construction material of main building .................... 13 Table 6: MDG targets set by SCADD by 2015 ................................................................................... 32 Table 7: Expected growth trend in the sectors and GDP ................................................................... 59 Table 8: SCADD estimated funding scheme for 2011-2015 (in CFAF billion) ................................... 62 List of Figures Figure 1: Incidence of poverty by region (%) ...................................................................................... 11 Figure 2: Rate of access to electricity by region in 2009 .................................................................... 12 Figure 3:Disposal of household garbage removal in 2009 and lavatories used by households in 2009 ............................................................................................................................................... 13 Figure 4: Rate of access to drinking water by region in 2009 ............................................................. 14   II   ACRONYMS AND ABBREVIATIONS ODA : Official Development Assistance CASEM: : Governing Council of the ministerial sector JRC : Regional Consultation Frameworks CCRD : Regional Consultation Framework for Development MTEF : Medium Term Expenditure Framework CFA : African Financial Community CID : Computerized Expenditure Circuit CIFE: : Integrated External Funding Circuit CIR : Integrated Revenue Circuit CND : National Frameworks for Dialogue NOC / SCADD : SCADD National Steering Committee CONAD : National Decentralization Conference ARCT : Regional Planning Committee CSD : Sector Frameworks for Dialogue PRSP : Poverty Reduction Strategy Paper RPRS : Regional Poverty Reduction Strategy Paper DGEP : Directorate General for Economy and Planning HRD : Directors of Human Resources EDS : Population and Health Survey EICVM : Full Survey on the Living Conditions of Households ENTE-BF : National Survey of Child Labor in Burkina Faso FESPACO : The Ouagadougou Pan-African Film and Television Festival FONAENF : National Fund for Literacy and Non Formal Education FPDCT : Permanent Fund for the Development of Local Communities GAR : Results-oriented Management ha : Hectare HLI : High labor intensity IPA : Automated Forecasting Instrument MDRI : Multilateral Debt Relief Initiative HDI : Human Development Index IGF : Inspectorate General of Finance INERA : Environmental and Agricultural Research Institute INSD : National Institute of Statistics and Demography IST : Sexually Transmitted Infection STI : Technical Inspectorate of Services   III   LIPDHD : Letter of Intent for Sustainable Human Development MEF : Ministry of Economy and Finance NICT : New Information and Communication Technologies MDGs : Millennium Development Goals ODA: : Official Development Assistance ONEA : National Water and Sanitation Board NGO : Non Governmental Organization CSO : Civil Society Organization PANEA : National Action Plan for Aid Effectiveness PAP-PRSP : PRSP Priority Actions Program PAT : Three-Year Action Plan PDDEB : Ten-Year Development Plan for Basic Education GDP : Gross Domestic Product PM : Prime Ministry SME : Small and Medium Enterprises PMI : Small and Medium Industries PN-AEPA : National Program for Drinking Water Supply and Sanitation NGGP : National Policy on Good Governance PNDS : National Health Development Plan PPP : Public-Private Partnership HIPC : Heavily Indebted Poor Country PRD : Regional Development Plan TFP : Technical and Financial Partners RGA : General Census of Agriculture PIER : Comprehensive Reform of Public Administration GPHC : General Population and Housing Census SCADD : Strategy for Accelerated Growth and Sustainable Development SIAO : Ouagadougou International Crafts Fair AIDS : Acquired Immunodeficiency Syndrome SIGASPE : Computerized administrative and salary management of state employees SIMP : Integrated public contracts system SINTAX : Integrated taxation system SITHO : Ouagadougou International Tourism and Hotel Business Exhibition SNAT : National Scheme for Regional Planning SNC : National Culture Week SNGIFS : National Strategy for integrated management of soil fertility   IV   SOSUCO : Comoé Sugar Corporation SRFP : Strategy for Strengthening Public Finances STN / SCADD : National Technical Secretariat of the National Steering Committee of SCADD STP / CONAD : Permanent Technical Secretariat ASYCUDA : Automated System for Customs ICT : Information and Communication Technology WAEMU : West African Economic and Monetary Union HIV : Human Immunodeficiency Virus   V   FOREWORD The Strategy for Growth and Sustainable Development (SCADD) replaces the Poverty Reduction Strategy Paper (PRSP) which was the central framework of the Government’s economic and social development policies over the period 2000-2010. This change was necessary in light of the achievements and shortcomings in the implementation of the PRSP. Indeed, economic growth was significant (5% per year on average between 2000 and 2010) and progress was remarkable in the management of public finance, political stability, infrastructure development, improvement of access to basic social services (health, education, drinking water and sanitation). Similarly, the long-term development vision, economic management, social dialogue, participation and national ownership of the development strategy, have been strengthened. However, the fragility of the economy and the high vulnerability to external shocks, low productivity in crop and livestock production, the relatively high costs of production factors and the tendency towards impoverishment (43% incidence of poverty 2009), show that difficulties remain. The option for the SCADD has thus been based on the need to correct these deficiencies through greater consideration of the results of the National Forecast Study (ENP) "Burkina 2025" and an approach to poverty reduction, which is more focused on developing the productive capacities of the Burkinabe economy. The persistence of many deficits in achieving the Millennium Development Goals (MDGs) and the population explosion revealed by the last General Population and Housing Census (3.1% per year between 1996 and 2006), have reinforced the necessity to formulate coherent economic and social policies whose implementation will result, over the period 2011-2015, in an accelerated and pro-poor growth as the basis for sustainable development. This strategy, which is a manifestation of our endogenous capacity to cater to national development ambitions, was developed through a participatory process which has become a well known tradition in our country. I would like to seize this opportunity to reiterate the thankfulness of the Government to all players who took part in the work for the quality of their contributions and for their renewed commitment to support the implementation of SCADD. This SCADD document covers the first five-year phase of a dynamic that is aimed at the progressive construction of a nation of solidarity, progress and justice as defined in the Burkina 2025 ENP. Consequently, the SCADD intends to synergize economic efficiency, environmental sustainability and social equity to induce a qualitative and sustainable change in Burkina’s production system. To this end, four strategic axes have been defined. The first axis, which is focused on the development of the pillars of accelerated growth, defines a model of accelerated growth based on the priority areas of development, infrastructure and institutions to support the generation of wealth, without losing sight of the need for integration in the sub-regional and regional economy as well as in the global market. The second axis, which concerns the establishment of human capital and social protection, focuses on increasing income and employment, technical and vocational training and generally, on access by the population to basic social services (education, health, drinking water, ...). The third axis focuses on strengthening the economic, political and administrative dimensions of governance as well as the improvement of local governance.   VI   Lastly, the fourth axis deals with the need to take into account gender, population, environmental, planning and capacity building issues as cross-cutting priorities in development. I would like to express the wish that these strategy axes will henceforth be the fertile action platforms for the implementation of sectoral and regional development policies to constantly improve the well-being of the population. SIGNED Mr. Lucien Marie Nöel BEMBAMBA Officer of the National Order Minister of Economy and Finance   VII   INTRODUCTION In the wake of its accession to independence, Burkina Faso opted for planning as means of guiding and conducting its economic and social development process. To this end, it developed and implemented 5 five-year development plans (1967-1971, 1972-1976, 1977-1981, 1986-1990 and 1991-1995) and a two-year program: the People’s Development Program (PPD) 1984-1985. The planning system in Burkina Faso experienced two major periods: that of project–plans from 1967 to 1981, and that of plans by objective, from 1986 to 1995. Thanks to the presence of assistance projects, plans in the second period were the work of nationals who drew inspiration from national accounting techniques and advanced forecasts, and from better developed overall and sectoral perspectives. In addition, this generation opted for a participatory approach which, moreover, is a tradition in Burkina Faso. All these plans had common characteristics: 1. They were normative for the public sector and incentive-based for the private sector;; 2. The State played a predominant role; 3. Priorities revolved around the development of the rural world, economic infrastructure and community amenities as well as meeting the basic needs of the population. It is noteworthy that in the late 80s planning was, on the whole, challenged by the arrival of Structural Adjustment Programs (SAP). In 1991, the authorities decided, in a bid to face the substantial financial deficit that the country was experiencing, to implement economic and structural reforms with the support of the international financial community. At the same time, they started brainstorming on the renewal of planning in a bid to include these reforms in a long term perspective. In 1995 this brainstorming led to the formulation of a ten-year perspective: the letter of intent of the policy on sustainable human development (LIPDHD 1995-2005) which was aimed at focusing the country’s development strategy on the concept of human security. By pursuing these reforms, the Government enhanced its capacities for steering the development process by conducting the prospective study “Burkina 2025” which was finalized in 2005. The courageous reforms undertaken continuously by the Government enabled Burkina Faso to qualify for the Heavily Indebted Poor Countries (HIPC) Debt Relief initiative in 1997. In order to effectively benefit from this initiative, a Poverty Reduction Strategy Paper (PRSP) was developed in 2000. This strategy paper, which was revised in 2003, won the support of all development stakeholders. The assessment of the implementation of the PRSP has shown that economic growth was not strong enough to bring about significant poverty reduction. Indeed, despite an increase since 2000, Burkina Faso’s human development index (HDI) has remained low (0.305 in 2010). This situation has led the Government to formulate a new strategy called the “Strategy for accelerated growth and sustainable development” (SCADD). The SCADD is a continuation of the reforms undertaken since the adoption of the PRSP in 2000. It is aimed at accelerating growth and promoting sustainable development and especially, the building of a modern and cohesive society. The choice of this new development strategy approach has been dictated by the Government’s will to consolidate the significant gains over the past ten years in the political, economic and social domains. Indeed, at the political level, there have been successive measures to consolidate democracy and strengthen the building of the rule of law. These measures were concerned with aspects of consolidating the activities of political parties, freedom of expression and opinion, social peace and stability, revitalization of parliamentary work, promotion of the press, gender, social dialogue, associations, decentralization and the reform of the   1   judiciary system. At the economic level, the past decade was marked by the pursuit of the implementation of structural reforms to enhance the country’s economic performance. Thus, Burkina Faso made significant strides in terms of growth and made enormous efforts to improve the competitive strengths of its economy. In the social domain, Burkina Faso has made progress in the area of human development. Government efforts through the implementation of the PRSP have resulted in significant progress in drinking water supply, in the fight against HIV, AIDS and STI, health coverage and education, especially that of young girls. Despite these numerous achievements, the economy is still fragile and vulnerable to climatic changes and exogenous shocks (depreciation of the dollar, volatility of the prices of raw materials (cotton, gold, oil), deteriorating terms of trade, financial crisis, etc.) and to natural constraints (landlocked nature of the country). Achieving the Millennium Development Goals (MDGs) remains a concern that requires sustained efforts. The present SCADD (2011-2015) document, which seeks to enhance achievements, was developed on the basis of a participatory approach. It is the instrument that will render Burkina’s 2025 Vision operational through five-year cycles. To conduct the process, an institutional mechanism was set up by Order n° 2009-007/PM/MEF of May 15, 2009. The mechanism was made up of three bodies: a Steering committee, a Technical committee and a Permanent unit. The Steering committee comprises members of Government and representatives of stakeholders of decentralization, the private sector, the civil society as well as technical and financial partners (PTF). Under the chairmanship of the Ministry of Economy and Finance (MEF), it is responsible for providing guidance in the development of the SCADD and see to the smooth running of the process, especially respecting of the schedule of activities and the quality of the documents produced. The Technical committee is made up of representatives of the Ministry of Economy and Finance, the Minister in charge of Special Missions of the President of Faso, responsible for analysis and forecasting, coordinators of sectoral and thematic commissions in charge of monitoring the PRSP, as well as PTF representatives. Chaired by the Director General of Economy and Planning, it conducts the outreach activities of the process. The Permanent Unit is composed of senior officials of the Ministry of Economy and Finance and assistants of the Minister in charge of Special Missions of the President of Burkina Faso, responsible for analysis and forecasting. Attached to the Directorate General of Economy and Planning (DGEP), it is responsible for the secretariat of the institutional mechanism and for the day-to-day management of activities related to the process. The process to develop SCADD began in March 2009 with the adoption of the conceptual note on the SCADD document by the Council of Ministers. The framework document derived from the note included thematic studies and evaluation, as well as consultations at sector, regional and national levels between December 2009 and October 2010. The main studies conducted are: i) A diagnostic study on the socio-economic situation of Burkina Faso:: "Progress and development achievements of Burkina Faso 2000-2009" (from December 2009 to April 2010); ii) An independent evaluation of the implementation of PRSP and Regional poverty reduction strategy papers -RPRSP- (from February to May 2010); iii) A study on the determinants of accelerated growth and sustainable development in Burkina Faso (from July to December 2010).   2   On the basis of the reports on the first two studies, a workshop on the lessons learned from a decade of economic and social development in Burkina Faso was organized on May 31 and June 1, 2010, to identify the development stakes and challenges of the country for the period 2011-2015. In the area of consultations, 5 (five) levels of dialogue were organized: sectoral and thematic consultations, regional consultations, consultations with actors of the public sector and the civil society and consultations with State institutions and national assemblies. The sectoral and thematic consultations, which took place from February 23 to March 19, 2010, consisted of working sessions with all the ministries and specific structures responsible for cross-cutting issues. They provided an occasion to have an insight of the situation of policies, strategies and action plans that have already been developed and implemented or underway since 2000, to assess achievements and shortcomings, as well as the level of inclusion of crosscutting issues, the challenges to overcome, and the 2011-2015 prospects for each ministry. Regional consultations took place from March 22 to 31, 2010, in the regional headquarters, in the form of a workshop involving some fifty regional development actors, representing devolved and decentralized government services, the private sector, the civil society, development projects and programs. These workshops served as a forum for identifying regional development priorities, while ensuring consistency with projected regional sector strategies and development plans. Consultations with actors of the private sector and the civil society took place respectively on March 18 and 19 2010. They provided an occasion not only to gather the concerns of the targeted players and their contributions within the framework of a future partnership with the State in the implementation of SCADD, but also to deepen reflection on existing strategies to make them consistent with SCADD. Consultations with republican institutions (National Assembly and the Economic and Social Council) were held respectively on September 24 and October 14, 2010. They provided an opportunity for obtaining their respective opinions on the challenges to face and the relevance of the strategy guidelines adopted as being likely to accelerate economic growth in the context of sustainable development . Lastly, the workshops on strategy choices and national meetings on the SCADD were held respectively on September 16 and on October 28 and 29, 2010, to assess the strategy options and their feasibility, and to seek consensus on the draft SCADD document. It is worth noting that the process received technical assistance from August to October 2010 to ensure the quality of the work. Similarly, from July to October 2010, a communication agency was brought in to lend support to the design and set up of a website for citizens to participate in the development of the document. The agency also outlined a strategy and a communication plan to accompany the implementation of the SCADD. On the whole, the SCADD formulation process lasted 19 months and saw the participation of a large spectrum of actors at the central and decentralized levels. The SCADD intends to focus on strategic sectors whose growth should have the most significant impacts in terms of improvement of the well-being of the population and the reduction of poverty in Burkina Faso. The SCADD document is structured around 4 (four) chapters. Chapter 1 provides an overview of a decade of development, takes stock of the recent performance of Burkina Faso in various areas (growth, poverty reduction, human development, local development and governance), identifies the main challenges to face and draws lessons from the PRSP to enrich the SCADD. Chapter 2 defines Burkina Faso’s new growth and development strategy. In so doing, it spells out a sense of direction for the SCADD for the period 2011-2015, by ensuring that its vision is based on sector priorities to achieve set objectives. The four strategic axes adopted, which constitute the founding blocks of the SCADD, focus on the development of accelerated growth pillars, the consolidation of human capital and the promotion of social protection, the strengthening of governance, and consideration of crosscutting priorities in development   3   policies and programs. Chapter 3 deals with the implementation of the strategy, through the definition of the macroeconomic and budgetary framework, the funding scheme and the main instruments for rendering them operational, especially the matrix and the annual performance report. To implement the SCADD effectively, a framework for an active multi-stakeholder partnership and accountability of local authorities has been incorporated. Similarly, to ensure proper monitoring evaluation, an institutional mechanism and a device, based on dialogue frameworks and the organization of reviews for a better rendering of accounts, have been proposed. Chapter 4 focuses on the risks that could impede the success of the development scheme desired by the government. Four major categories of risks and threats have been enumerated to draw attention to the measures to be taken to curb them. These are financial risks and those linked to natural conditions and a low adherence by actors. It also deals with the risk due to the international and regional economic situation.   4   I. OVERVIEW OF A DECADE OF ECONOMIC AND SOCIAL DEVELOPMENT: 2000-2009   5  5   The evolution of the international scene over the past ten years was marked by several events. This is the case for example with the energy crisis that gave rise to a surge in oil prices, the food crisis and especially the 2007 financial crisis. Such events directly affected the economies of developed and developing countries. The most noticeable impact on Burkina’s economy has been the deterioration of its trade balance and the drop in the level of economic growth. The national context has been marked by political stability, with the regular functioning of State institutions. The business environment has considerably improved with the implementation of major institutional and economic reforms. The government, with the support of its partners, has undertaken public policies to reduce poverty within the framework of the PRSP, developed in 2000 and readjusted in 2003. Unfortunately, the results of the efforts made were somewhat compromised by the end of the decade, with the advent of major exogenous shocks and weather conditions that caused serious flooding and drought. The results of the 2006 General Population and Housing Census (RGPH) show changes that are characterized by an increase in the rate of population growth which stood at 3.1% for the period. On the whole, the combination of internal and external factors strongly influenced the evolution of the economic and social indicators of Burkina Faso during the last decade. I.1 ECONOMIC PERFORMANCE I.1.1 ECONOMIC GROWTH TREND During the period 2000-2009, economic growth was very erratic due to climatic uncertainties and recurrent exogenous shocks. In real terms, it averaged 5.2% on average, with a high of 8.7% in 2005. Given the population growth level rate of 3.1%, the increase in GDP per capita was of about 2%. During the period, growth was mainly driven on average by the tertiary and primary sectors, respectively by 3.1 and 1.3 percentage points of the GDP, and to a lesser extent, by the secondary sector in the order of 0.8 points. This development is the result of the efforts made by the Government to improve the business environment, thereby spurring the growth of all branches of the tertiary sector. It is also explained by the measures taken by the Government to face the various crises that occurred during the period, especially those respectively for the cotton subsector, (increase in subsidies for inputs and strengthening of cotton companies’ equity) and grain producers under the emergency program to stimulate grain production (distribution of improved seeds and subsidies for agricultural equipment). These measures were complemented with initiatives to intensify and diversify animal, forestry and wildlife production. Concerning external demand, annual exports increased by 8.3% on average. The growth rate of exports was 10.8% in 2009 up from 7.8% in 2000, reflecting a slight improvement in the degree of openness of the economy, whose weakness stems not only from the low diversification of its range of exportable products, but also from the weight of its informal economy. With regard to domestic demand (in terms of consumption and investment), its contribution to the progress made by the national economy during the decade has been significant. The reforms made by the Government to improve the business climate under the Doing Business program with financial and technical partners, created the conditions for attracting investors. The average overall investment rate was thus 24.6% of GDP, drawn by private investments which increased by an annual average of 12.7% over the past four years. This growth was boosted mainly by investments in the telecommunications and mining sectors. In the public sector, investment flows were directed towards building socioeconomic infrastructure and production support. As concerns the mining sector in particular, its expansion is attributed to the start of production of 6 (six) gold mines over the past 3 (three) years, as well as to the slight upturn of the global market for precious metals. This resulted in the doubling of gold production which increased from 5.8 tons in 2008 to 14 tons in 2009, placing the product as the country’s leading export earner ahead of cotton and thus, together with its externalities, contributing 4% to the formation of the national value added.       6    The contribution of consumption to growth was 3.3 percentage points due mainly to public consumption with 6.7% annual growth. The increase in private consumption did not exceed 2.8%, as a result of the weak purchasing power of households eroded by the effects of the food and financial crises, coupled with those of the September 1st floods. Despite the vulnerability of the economy to external shocks and unpredictable weather conditions, the significant results represent the beginning of a qualitative change in the growth pattern. This can be attributed to the improvement of the business climate, especially the liberalization of the economy that has encouraged inflows of foreign direct investment. I.1.2 INTERNAL AND EXTERNAL FINANCIAL EQUILIBRUM The concern for rigorous management of public resources led to the adoption of major public finance reforms, in particular the framework of the Strategy to strengthen public finances (SRFP). The assessment of public finances using the PEFA (Public expenditures and financial accountability) methodology, carried out twice, found the following: - The overall credibility of the budget has improved significantly, but remains to be strengthened; - The completeness and transparency of the budget are deemed very satisfactory, bolstered in particular by solid budget classification and accounting; - The budget is in line with national priorities. Burkina Faso has succeeded in controlling the budget deficit, which stood at around 4.5% of the GDP on average over the period. This result reflects the combined efforts of increasing the level of domestic revenue and controlling public expenditure. Indeed, the tax ratio (tax revenue/GDP) rose from 10.8% in 2000 to 12.6% in 2009, but remains below the target of 17% as set by the WAEMU. This progress must be underpinned by ongoing efforts to modernize revenue collection offices, ensure better management of collection units and strengthen control activities, particularly through joint customs-tax brigades and the import surveillance program. The implementation of the overall strategy for tax reform has opened up real prospects for improving the tax ratio, in order to move towards the WAEMU target of 17%. The rigorous management of public finances has also enabled the country to record satisfactory results in the fight against inflation, whose average level has remained below the regional target of 3%, despite the 2007/8 food and energy crisis. In terms of prioritization of expenditure, the Government has focused on the social1 sectors in accordance with the objectives of the PRSP and the MDGs. Thus, the share of all social sectors stood at an annual average of 38.66% over the period 2006-2010, with a peak of 44.64% in 2010.                                                              1 Social spending to reduce poverty is defined as spending from sectors covering the priority programs identified in the PRSP to accelerate the achievement of poverty reduction objectives. This expenditure includes all expenditure for the following ministries: basic education, health, social action and national solidarity, the advancement of women, work and social security, employment and youth, agriculture, water and fishery resources, animal resources and environment. They also cover rural roads and the HIPC for infrastructure and spending on HIPC solely as concerns justice and the MEF.         7    Table 1: Evolution of the share of social sectors in public expenditure from domestic resources Year Amount (in thousands of CFA F) Share in total budget 2006 163 041 264 38.58% 2007 183 280 431 35.71% 2008 194 928 603 36.05% 2009 223 391 713 38.24% 2010 276 804 372 44.64% Average 347 148 794 38.66% Source:: DGB/MEF As shown in Table 2, during the period 2006-2010, Official Development Assistance amounted to 1 569.8 billion CFA francs (or an annual average of CFA F 314.0 billion). This assistance consisted of 35.4% of budgetary support, 31.7% of project grants and 32.9% of project loans. These resources helped to sustain economic growth over the period. Table 2: Trend of official development assistance over the period 2006 to 2010 Designation (in billions of Budgetary support Project grants Project loans Total CFAF) 2006 57.6 112.3 96.1 266.1 2007 95.6 114.7 93.0 303.3 2008 88.2 58.7 69.3 216.2 2009 145.5 86.9 109.4 341.8 2010 169.2 124.4 148.8 442.3 Total 556.2 497.0 516.6 1 569.8 Average for the period 111.2 99.4 103.3 314.0 Share (%) 35.4 31.7 32.9 100 Source:: IAP/DGEP/MEF External balances remained fragile due to the instability of the economy. However, due to efforts to promote exports, the trade deficit was reduced from 11.9% of the GDP in 2000 to 5.8% in 2009. The current account deficit (including grants) was around 9.6% of GDP on average, against a WAEMU target of 5%. These results, combined with an active mobilization of external resources, increased foreign reserves to cover 12.9 months of imports in 2009, against five months in 2000.       8    As concerns public debt, the various initiatives including HIPC and MDRIMDRI helped to improve its sustainability over the past decade. Indeed, these initiatives helped keep the debt/GDP ratio at a level of 27.4% in 2009, well below the regional target of 70%. With regard to the ratio of the net present value of debt/exports, such initiatives helped reduce it to an acceptable level. Thus, this ratio, estimated at 241.3%, or 91 percentage points above the adopted standard (of 150%) for HIPCs at the end of 2005, was reduced to 108.1% at the end of 2006, thanks to the debt cancellations recommended by MDRI. It stood at 124.5% in 2008 and 142.54% in 2009. I.2 SOCIAL SITUATION I.2.1 POPULATION TREND In 2006, Burkina Faso had 14,017,262 inhabitants, 51.7% of which were women. This population was predominantly composed of young people with 46.4% under 15 years old and 59.1% under 20 years old. This young population is a potential lever for innovation and progress in the medium and long term, provided that resources are mobilized to protect them and prepare them for adulthood. In the short term, it induces high dependency ratios, which reduce the savings capacity of households and families and contributes to the reproduction of poverty, as it is among the poor that the number of children is highest. Population dynamics have been marked by a net acceleration in the population growth rate, which stood at 3.1% on average per year between 1996 and 2006, up from 2.4% during the previous five years. This development resulted from continued high fertility, estimated at 6.2 children per woman at the end of childbearing age in 2006, as in 1960, coupled with a significant reduction in mortality as a result of development, particularly in the health sector. Indeed, the infant mortality rate fell from 107.0 ‰ in 1996 to 91.7 ‰ in 2006. The increase in life expectancy at birth has been significant, with an absolute gain of 24.7 years between 1960 and 2006: from 32 years in 1960, it rose to 53.8 years in 1996, to reach 56.7 years in 2006. Despite this progress, much remains to be done to reduce the levels of morbidity and mortality characterized by profound disparities between rural and urban areas on the one hand, and between the rich and poor on the other. With a population growth rate of 3.1%, Burkina Faso records an average of 435,000 additional people a year. The country thus had 15,730,977 inhabitants in 2010 and this number is expected to reach 18,450,494 in 2015. This rapid population growth generates a high social demand and creates the risk that enormous resources have to be devoted to demographic investments at the expense of productive investment. Moreover, migration remains an important social factor in Burkina Faso because of a migratory tradition which is a characteristic feature of the Burkinabe population. The period 2000-2009 was marked by severe migration turbulence, following the political and military crisis that occurred in Côte d'Ivoire. The massive (voluntary or forced) return of Burkinabè, mostly of women and children, highlighted the challenges to face in terms of anticipation and taking care of immigrants. I.2.2 LIVING CONDITIONS OF HOUSEHOLDS The living conditions of households have been examined in terms of income poverty and non-income poverty. I.2.2.1 Income poverty I.2.2.1.1 Overall incidence of poverty The results of the 2009/2010 full survey on the living conditions of households show a decline in poverty incidence by 2.5 percentage points compared to 2003. Thus, as shown in Table 3 below, 43.9% of the population lives below the poverty line, estimated at 108,454 CFA francs against 46.4% in 2003, corresponding to a threshold of 82,672 CFA francs per adult per year.       9    These results show that the level of economic growth achieved and the mechanism for the redistribution of its fruits were not sufficient to induce a significant reduction in poverty rates, thereby jeopardizing the achievement of the MDGs in the area. Table 3: Evolution of poverty indicators according to the 4 (four) surveys Survey period Poverty2 threshold Incidence3 Depth4 P1 (%) Severity5 P2 Deviation of P0 in FCFA P0 (%) (%) Compared to 2009 1994/1995 41 099 44.5 13.9 6 -0.6 1998 72 690 45.3 13.7 5.9 -1.4 2003 82 672 46.4 15.6 7.1 -2.5 2009/2010 108 374* 43.9 14.4 6.5 Source:: Survey data-INSD *: Excluding consumer durables and housing consumption I.2.2.1.2 Geographic disparities in the incidence of poverty The overall incidence of poverty conceals disparities by region and area of residence. Households living below the poverty line are not spread out evenly over the national territory as shown in Figure 1. With a poverty incidence estimated at 17.3%, the Center region is least poor. In contrast, the North (68.1%), East (62.2%) and the Boucle du Mouhoun (56%) regions are the areas where poverty is most severe. Compared to 2003, the incidence of poverty increased in the Hauts-Bassins (+12.5 percentage points) and East (+21.3 percentage points) regions. However, it fell in the eleven (11) other regions. The Center-South and Central Plateau regions, with a decrease respectively of 19.4 and 15.7 percentage points, are where the incidence dropped most.                                                              2  The poverty line is the minimum subsistence level of income for an adult to meet his food calorie and non food basic needs.   3 The incidence of poverty shows the share of the population whose income or consumption falls below the minimum income called poverty line. It reflects the proportion of people who cannot afford to buy the basket of goods corresponding to the basic minimum.   4  The depth of poverty is the average gap between the living standards of a poor person and the poverty line. It indicates at what level consumption by the poor is above the poverty line. For example, in 2003, the depth of poverty was 15,6%, meaning that consumption by poor people was on average at CFA F 69 775, compared to the poverty line estimated at CFA F 82 672. In other words, the gap between the poverty line and the average income of the poor (15.6%) is CFA F 12 897.   5  The severity of poverty measures the inequalities existing between the poor; the higher it is, the larger the gap between the incomes of the poorest compared to the poverty line.        10    Figure 1: Incidence of poverty by region (in %) 100 80.1 80 56.0 62.2 60 42.9 43.9 46.6 46.3 46.8 46.8 31.9 36.6 37.3 30.0 40 17.3 20 0 2009 2003 Source:: Survey data-INSD Analysis by area of residence shows that poverty is essentially rural. Indeed, as shown in Table 4, 50.7% of the population in rural areas lives below the poverty line, against 19.9% in urban areas. Compared to 2003, the incidence of poverty has fallen -1.6 percentage points in rural areas, while it has remained stable in urban areas. Table 4: Evolution of the incidence of poverty, according to area of residence Area of residence P0 incidence (%) Variations 1994 1998 2003 2009 09/94 09/98 09/03 Rural 51 51 52.3 50.7 -0.3 -0.3 -1.6 Urban 10.4 16.5 19.9 19.9 9.5 3.4 0.0 National 44.5 45.3 46.4 43.9 -0.6 -1.4 -2.5 Source:: Survey data-INSD I.2.2.2 Non-income poverty Analysis of the ability of people to satisfy their basic needs revealed that the social deficit remains relatively visible in the fields of energy, housing and sanitation. However, it has declined sharply in the area of drinking water. I.2.2.2.1 Electricity Analysis of EICVM data shows that the rate of access to electricity remained stable between 2007 and 2009, around 13.9% over the period. Access to electricity remains generally low in Burkina Faso, albeit with disparities between urban areas (46%) and rural areas (2%). Figure 2 below shows the rate of access to electricity by region. This rate varies greatly from one region to another. It is 41.3% for the Center region, 27.3% for the Hauts-Bassins and 20.8% for the Cascades region. However, it remains very low for the Sahel (2.6%), the Center-South (3.2%) and Center-North (3.4%) regions.       11    Figure 2: Rate of access to electricity by region in 2009 Center  41.3 Hauts‐Bassins 27.3 Cascades 20.8 South‐West 7.9 North 7.3 Center‐West 6.2 East 6.0 Central Plateau 5.8 Center‐East 4.3 Boucle du Mouhoun 3.8 Center‐North 3.4 Center‐South 3.2 Sahel 2.6 0 5 10 15 20 25 30 35 40 45 Source:: INSD, EICVM data, 2009/2010 I.2.2.2.2 Sanitation The analysis of access to sanitation concerns household garbage, sewage and excreta. As concerns the disposal of garbage, 19% of households make use of public garbage dumps or have their waste removed by municipal or private services. These two means of disposal allow for better waste management. Figure 3 shows that the road or uncontrolled dumps are places where households get rid of garbage; 6 in 10 households use them. This practice is more common in rural (67.3%) than in urban (38.6%) areas. It decreases with the level of education of the head of household: from 64.4% for those who have not received education; its incidence is reduced to 20% for those with a higher level of education. Concerning sewage disposal, it is clear from the data analysis that, nationally, 2.3% of households use the network of sewers or drains. The use of the street as a place for sewage disposal occurs more in the Eastern (99%), Center-West (98.2%) and Center-East (98%) regions. As concerns toilets, and considering the national requirements for excreta sanitation, 4.7% of households in Burkina Faso have access to sanitation, as shown in Figure 3. However, it should be noted that this rate is higher in the urban (14.2%) than in the rural (1%) areas. In the Center region, the rate of access to adequate toilet facilities is the highest with 18%, while the Sahel region (0.3%) has the lowest rate.       12    Figure 3: Disposal of household garbage in 2009 and lavatories used by households in 2009 Disposal of household garbage in 2009 Lavatories used by households in 2009 Street/road/sponta neous dump No facilities 4% 1% 5% 4% Lindfill  9% Pit latrine with  slab 9% Remova/bins Pit latrine  10% 25% 57% without slab 50% Public dump Proper toilets 17% Incineration Simple SanPlat  Latrine Other Source: INSD, données EICVM, 2009/2010 I.2.2.2.3 Housing and habitat The housing situation in Burkina Faso is characterized by the predominance of precarious dwellings, built with temporary materials such as mud and straw. Thus, as shown in the table below, 70.1% of the population lives in these types of buildings. Table 5: Breakdown of population, according to construction material of main building Area of residence % of population Cement/concrete 17.0 Stone 1.2 (Baked) brick 1.1 Improved banco 12.4 Banco (earth brick) 65.6 Straw 2.5 Others 0.2 Total 100.0 Source: INSD, EICVM data, 2009/2010       13    I.2.2.2.4 Drinking water Regarding access to drinking water, based on a standard of less than 30 minutes to reach a drinking water source, 81.2% of households had physical access to water in 2009. This relatively high level, however, masks the disparities between regions and areas of residence, as shown in Figure 4 below. Indeed, in the urban areas, where ONEA is present, the rate of physical access was 95.7%. In rural areas, it was 75.6%, as the bulk of the population is located around boreholes and wells. Figure 4: Rate of access to drinking water by region in 2009 Source: INSD, EICVM data, 2009/2010 In terms of use, it shows that 65.2% of households use some source of potable water as their source of drinking water. This means that 2 out of 3 households in Burkina Faso have affordable access to safe drinking water. The disparity between the urban and rural areas is high. In towns, out of 10 households, 9 use drinking water, of which 8 are connected to the ONEA network. In the countryside, barely 1 in 2 households use drinking water, with 40% relying on boreholes. I.2.3 LEVELS OF DEVELOPMENT OF HUMAN CAPITAL The main progress in human capital has been noted in the sectors of education and health in particular, including the fight against HIV, AIDS and STIs. Efforts still need to be made as concerns social protection and the promotion of human rights, especially those of children. I.2.3.1 Education, technical education and vocational training Significant efforts have been made to improve education and the development of technical education and vocational training. In view of achieving the MDGs in education, the Government, with the support of its technical and financial partners through PDDEB, has implemented an extensive program involving the construction of school infrastructure and continued its policy of subsidizing schools in provinces with the lowest enrollment rates, and the provision of free textbooks to primary education to ensure equity. The approach, based on the supply of infrastructure, has been dominant with incentives for the education of girls. The gross admission rate increased from 47.4% in 2000/2001 to 85.9% in 2009/2010, an increase of 38.5 points. As for the gross enrollment rate, it increased from 48.7% to 76%. The various parity indices, which have increased, reached 0.96 and 0.91 in 2009/2010 respectively for levels of admission and enrollment. These indicators reflect the scope of the various measures taken by the Government to promote girls' education (school subsidies for girls newly enrolled for the CP1) and equity (free textbooks and school supplies). Enrollment rates for the other levels of education have improved, especially for secondary education, where the 14    rate almost doubled between 2000 (11.4%) and 2010 (22.2%) with a gain of 10.8 percentage points in 10 (ten) years. Indeed, secondary education was considered a priority during the PRSP revision in 2003 which helped to develop and implement the post-primary education project. As regards preschool, the rate increased from 1.44% in 2001 to 2.60% in 2009. Higher education also experienced significant growth in supply during the past decade as a result of the proliferation of private education centers and the policy to construct university centers in the regions. However, with 330 students per 100 000 inhabitants in 2008/2009, the number remains very low. With regard to literacy, significant progress has been made through a combination of measures by the government and its partners, but this remains weak, given the magnitude of the challenges. The implementation of the literacy education program, which received support from the National Fund for Literacy and Non Formal Education (FONAENF), was centered especially on the rural population, particularly on women, who represented 58.5% of total enrollment (130 849) in non-formal education in 2009. In view of accelerating the achievement of the MDGs, the Government developed a national strategy to increase literacy education, indispensible for the improvement of skills to support growth. Despite the progress made in recent years, there are still a number of constraints that may hamper progress towards universal education by 2015. These constraints are related to the low quality of education and the significant number of schools without teachers, overcrowding of classes coexisting with an under-utilized infrastructure, high number of school dropouts, low rate of transition between primary and secondary education, low school attendance in rural areas and lack of a bridge between formal and non formal education, high unit costs of education, low relevance of learning in relation to labor market needs, the predominance of illiteracy and finally, poor capacity for managing and running the system. Regarding technical and vocational training, the purpose is to provide functional components of the country with qualified and skilled human resources. This is done through both diploma and qualification-awarding pre-service and continuing training. In the area of pres-service training, several training courses are available and can be classified into two main groups, namely the administrative techniques, accounting and business courses, and the industrial technology courses. Technical and vocational training is mainly provided by technical and vocational training structures and by online businesses. It is characterized by (i) a predominance of administrative, accounting and business trades at the expense of building and public works (BTP), mining and handicrafts, (ii) a strong territorial disparity characterized by a concentration of supply of public and private training in Ouagadougou and Bobo-Dioulasso, (iii) a shortage of supervisory staff and inadequate curricula, (iv) insufficient and inadequate teaching materials and equipment and (v) an inadequate amount of financial resources devoted to training. Improving the efficiency of education spending will be the main challenge in the coming years. To this end, the managing capacities of all levels of education, especially the one in charge of basic education, should be strengthened and instruments for monitoring expenditure (review of public expenditure, sectoral MTEF, program budget) improved. This also concerns the management of the decentralized structures of the education system as a whole, which should involve partners from different levels of education. Finally, it would be important to study the possibility of setting up simple monitoring systems. I.2.3.2 Health and Nutrition The Government adopted a National Development Plan (PNDS) in 2001, covering the period 2001-2010, for promoting the health sector. Significant progress was achieved through the implementation of PNDS. New health facilities have been built and staff recruited. The percentage of health centers meeting the minimum requirements in staff increased by about 60% in 1999 to 83.2% in 2009. The rate of skilled assisted deliveries increased from 54% in 2006 to 70.7% in 2009 (73% if one includes deliveries performed in hospitals). The percentage of children that have received all their vaccines has increased considerably (at least 92% for antigens). Moreover, free preventive services for children and prenatal consultations contributed to improving access to health services. The government continued the free distribution of treated long-acting mosquito nets. In the area of nutrition, chronic malnutrition among children remains high, with a rate of 28.6% in 2009, despite 15    efforts. The Government has thus adopted a strategy plan for nutrition covering the period 2010-2015 to curb malnutrition so as to reduce hunger and diseases related to nutritional deficiencies. HIV and AIDS are areas of health where the country has witnessed rapid progress, with a prevalence rate of 1.6% in the general population in 2008, down from 7.17% in 1997. On the whole, the improvement of health coverage, marked by the reduction of the average theoretical radius of action (7.49 km in 2009 as against 9.5 km in 2000), has brought the population closer to health services. The combination of improved health care, quality and use of health services, the significant decline in the seroprevalence of HIV and AIDS has helped raise life expectancy at birth by about 3 years, which rose from 53.8 years in 1996 to 56.7 years in 2006. The infant, child and maternal mortality rates, although on the decline, remain high by international standards. The challenges due to the unequal distribution of health infrastructure and staff shortages, particularly in the rural areas, should be addressed to improve the health status of the rural population. This requires an increase in the (human, material and financial) resources allocated to the health sector. Moreover, measures must be taken to correct the negative image of health services and the low use of these services. The private sub-sector, traditional medicine and pharmacopeia are key partners that should be better reflected in the health policies. Streamlining the management of public health and hospital facilities, focused in particular on controlling the cost of services, improved use of health centers and strengthening the policy of rationalizing the consumption of drugs at all levels (while continuing to promote the local pharmaceutical industry), are the main challenges for years to come. The financing of health is essential for creating conditions conducive to the reform of the national health system, especially that of hospitals (modernization, management efficiency, performance). I.2.3.3 Social protection and promotion In 2009 the Government adopted a national solidarity charter that won strong support from leaders of the different communities. The charter embodies a willingness and availability of support that have always characterized the Burkinabe society. In addition, in response to the recent (energy, food, financial and economic) crises and natural disasters that plunged many families into poverty, the Government, with support from its development partners, implemented safety net programs to mitigate the adverse effects of these shocks on the population. These programs focused in particular on subsidies for emergency neonatal obstetric care, generalization of school canteens, distribution of food coupons to poor households, the sale of foodstuffs at a subsidized price. However, vulnerable populations are always more exposed to various shocks and disasters. In the area of social protection, various actions have indeed been taken by the Government with support from its technical and financial partners, but the country does not yet have a clear national policy for social protection, accompanied by a plan of action. I.2.3.4 Human rights and child protection At the social and cultural levels, the country has traditional and modern mechanisms conducive to tolerance and peace. In the area of strengthening the legal framework and the effectiveness of human rights, significant actions for better protection of individual and collective rights by public authorities have been carried out, among which the free establishment of declaratory judgments of birth certificates for children 0-18 years throughout the territory. A study to analyze the compliance of our legislation to international rules of civil and political rights has been conducted. The Government has begun discussions, with parliamentarians, on the issue of abolishing the death penalty. Internationally, Burkina Faso has ratified the six core treaties. These relate to respect of the right to life and its corollaries, the respect of physical and moral integrity, security of persons, equality and non discrimination, a dignified life for all citizens, and finally, the taking into account of people in specific situations. It can be said in particular, that children and women still remain silent victims in several areas: violence of all kinds, impunities, female circumcision, child trafficking, child prostitution, expropriation, etc. The main challenge is to develop a culture of human rights (citizens knowledge of their rights and duties) and ensuring application of the texts in their entirety. 16    Moreover, child labor is also a national issue of concern to the Government. According to findings from the National Survey on Child Labor in Burkina Faso (BF-ENTE / ILO 2006), 41% of children aged 5-17 years are engaged in economic activities, as against 51.07% in 1999. Nearly one in four children, aged 5-17 years old, performs dangerous work and this concerns both boys (47%) and girls (34%). The great challenge for Government is to develop and implement policies aimed at eliminating hazardous work for children and at promoting and protecting their rights. I.2.3.5 Gender inequalities Inequalities affecting women and men are many and varied across the sectors. Some socio-cultural considerations tending to discriminate against girls in favor of boys continue to weigh heavily, especially the law on inheritance and property rights. Inequalities and disparities are also experienced daily in the sexual division of labor, giving a greater workload to women compared to men, to girls compared to boys, with damaging impacts on their health, productivity, leisure time and reinvestment in human capital. The cultural and religious context in Burkina Faso still contains factors that strongly influence and determine access and control by men and women of resources, basic social services, activities of public and private life and their participation in decision-making spheres. In spite of legal and political measures for equal rights between men and women, the status of women has not fundamentally changed. In the specific case of women’s’ access to land, the policy to secure land tenure in rural areas adopted by the Government in October 2007, calls, inter alia, for an equitable access to land by all rural actors. In fact, gender equality in rural land management is far from assured and thus appears as a specific expression of the general problem of access to land. Creating conditions for equitable access of disadvantaged groups to land, especially by rural women, remains a real challenge. In order to promote equal access by men and women to human capacity development opportunities, the Government also adopted a national gender policy in 2009 and in 2010, its operational action plan for 2011-2013. Gender equality is central to the Government's priorities, as is reflected in it assuming responsibility for the APE (Parents Association) contributions for female pupils enrolled in primary schools, free health care against malaria in pregnant women and subsidies for obstetric services, the adoption of the rule allocating an additional 10% to the number of women for recruitments into the armed forces, the adoption of a law fixing a quota of a 30% minimum for one sex or the other on the electoral roll for municipal and legislative elections. Moreover, in implementation of the law pertaining to the general code on territorial authorities, the gender issue was included in the development plans of 174 rural councils, supported by community development projects based in rural areas In the coming years, the Government will have to tackle the main challenges relating to the establishment of a balance between the sexes, in terms of schooling and literacy, the improvement of the status of women, gender mainstreaming in all development sectors and strengthening of the role of women in decision-making. I.2.3.6 Employment The employment situation, according to results of the study on “trends in employment and poverty in Burkina Faso 1998-2007", conducted by the Ministry of Youth and Employment, is characterized by an average occupancy rate of 80.9%. The study also reveals the dominance of the agricultural and informal sectors, and that of informal employment in cities, owing to the presence of family helpers and apprentices, low wage employment in the modern sector, the burden of urban unemployment and the phenomenon of visible underemployment that affects a quarter of the employed population, double in rural areas. Women are recruited into low-wage activities in the rural and informal sectors. In the informal sector, they account for approximately 60% of the workforce. The large number of young people not included in employment statistics remains a cause for concern. Growth achieved during the past decade was not accompanied by massive job creation in the modern sector. However, the Government implemented extensive programs to promote self-employment and these created many opportunities for quite a significant portion of new applicants on the labor market, with the other half turning 17    to paid informal jobs. Moreover, the growing number of unemployed graduates is acutely posing the thorny problem of reviewing the appropriateness of some fields of specialization to the real needs of the labor market. In the coming years, the challenge to be addressed by Government will be that of promoting job creation. It is within this perspective that, since 2008, the National Employment Policy (NEP) and its action plan have been adopted and implemented. I.3 STATE OF THE ENVIRONMENT The report on the state of the environment, prepared every four years, helps to identify the country's major environmental problems, including the degradation of land and water resources, an unsustainable energy system, increasing urban environmental problems, erosion of biodiversity and climate change. I.3.1 LAND DEGRADATION Burkina Faso has a natural environment with limited potential. In a context marked by variability and a deteriorating climate, human activities and settlements have been the source of a growing erosion of natural capital. The country is characterized by a process of accelerated degradation of land undergoing spatial expansion at the rate of expansion of agro-pastoral activities, with an expected saturation of agricultural land within a generation. Indeed, 34% of the territory, or 9,234,500 ha of agricultural land, is degraded due to anthropogenic (agriculture, livestock, land tenure, fuel wood, etc..) and climatic reasons, with an annual estimated increase in land degradation of 105 000-250 000 ha. It also is noted that 74% of arid and semi-arid areas are affected by land desertification/degradation. I.3.2 DEGRADATION OF WATER RESOURCES The potential in water resources has been declining significantly and is no longer meeting the growing needs of the country. It is estimated that Burkina Faso will move from a situation of moderate water stress in normal, medium to high dry years in the early 2000s, to a situation of permanent high water stress by 2010-2015, with the demand for water reaching 69.7% of usable volumes in a normal year and 141.9% in a very dry year. The factors causing increasing pollution of water resources (domestic, agricultural, urban) appear to be the source of the exacerbation of the water shortage. I.3.3 UNSUSTAINABLE ENERGY SYSTEM The energy system is unsustainable. In a context of a very strong and growing demand for energy, it is the cause of: (i) excessive use of wood resources, degradation of vegetation and damage to soil fertility, (ii) destruction of the primary carbon sequestration wells essential for climate control and (iii) increasing pollution of urban air quality and emission of greenhouse gases. I.3.4 GROWING PROBLEMS OF THE URBAN ENVIRONMENT Urbanization is experiencing very strong growth in Burkina Faso, with significant impact on the environment: (i) multiplication of the consumption of natural resources (water, energy, food, construction materials, etc..), (ii) accumulation and concentration of pollution in urban areas and development of unsanitary conditions, (iii) development of precariousness and poverty due to the impact of degradation of the urban environment and disparities in access to basic services. I.3.5 EROSION OF BIODIVERSITY Biodiversity has been marked by erosion as a result of the heavy pressure exerted by human activities (agriculture, livestock, firewood, urbanization, etc..) which are the cause of the fragmentation or destruction of natural habitats (degradation of vegetation cover, deforestation, drying up of humid areas, etc..), a growing vulnerability of plant and animal species and the disappearance of some of these species. 18    I.3.6 CLIMATE CHANGE The phenomenon of climate change manifests itself in Burkina Faso by the downward trend in the volume and quality of rainfall, but also by the greenhouse effect, all of which call into question the performance of traditional plant and animal material, as well as methods and techniques. In addition, the increased frequency and magnitude of natural disasters is the first dimension of climate risk assessment related to climate change. The floods that hit the country in recent years are indicative of the effects of climate change in Burkina Faso. They regularly cause the displacement of large populations of affected communities, with their corollary of humanitarian problems. They are also the source of significant economic losses. As an illustration, climatic factors led to a loss of 268 005 tons of cereals, a monetary value of 35.266 billion CFA francs in 2009. Faced with this situation, national authorities have developed numerous policy and planning instruments, and have implemented action plans. These actions have always taken into account aspects related to environmental governance, sustainable management of natural resources, increased forestry and wildlife production, improvement of living conditions, strengthening the capacities of actors, gender and the fight against global warming. At the institutional level, the agency for the promotion of non wood forest products has been created and the strategy for the prevention and management of Man - Wildlife conflicts developed. Similarly, a National Environmental Assessment Bureau (BUNED) has been set up to ensure better consideration of environmental impact in the evaluation of programs and projects. Furthermore, the Government's concern has always been that of making eco-citizenship a behavior shared by all Burkinabe people. The integration of environmental education modules into the educational system and the establishment of a "low-carbon emission day" on 1 July each year, stem from this will. The Burkinabe authorities, convinced that respect for the Kyoto Protocol in full is a way out of the "climate crisis" for African countries in general, and Burkina Faso in particular, have been very committed at both continental and global levels. Proof of this is the holding in Ouagadougou in October 2009 of the 7th Global Forum on Sustainable Development, which served as an opportunity to share views on climate change and sustainable development, and to obtain a consensus stand by Africa that was used as the basis of negotiations at the 15th Conference of the parties to the United Nations Framework Convention on Climate Change in Copenhagen in December 2009. There are, however, the following deficiencies that characterize the environment sector and living environment: (i) inadequate consideration of environmental issues in policies and development programs, (ii) lack of visibility of the contribution of the environment sector and the living environment to the fight against poverty and the national economy, (iii) low level of public sector financing of the environment and the living environment in the implementation of the PRSP, (iv) insufficient staff both in quality and quantity, (v) lack of appropriate regulations, (vi) lack of relevant indicators for the environment, (vii) absence of recent and reliable data on forest, wildlife and environmental resources, (viii) lack of incentives for private investors in the forestry subsector and (ix) lack of environmental accounting. Consequently, there are the following challenges facing the sustainable management of natural resources, improvement of living conditions and adaptation to climate change: (i) sustainable management of land, water resources, pastoral resources, fisheries, forestry and wildlife, (ii) the supply of drinking water to urban, semi-urban and rural areas, (iii) sustainable mining, (iv) better living conditions in the rural and urban areas, (v) participation in the prevention and management of natural and technological disasters, (vi) promotion of environmental assessments in all programs and projects, (vii) the practice of environmental education and eco-citizenship at all levels of education (formal, non formal and informal), (viii) the implementation of economic instruments and financial instruments for the environment and (ix) promotion of decent green jobs. 19    I.4 STATE OF GOVERNANCE I.4.1 POLITICAL GOVERNANCE The move to democratize political life in Burkina Faso, begun in 1990, has seen undeniable progress that has reinforced the image of a stable country engaged in an evolutionary process to develop and expand new practices of political governance based on republican institutions and driven by a desire to improve governance and the resolution of socio-political conflicts. Over the last two decades, Burkina Faso has enjoyed political stability and a democratic new deal momentum. This stability has given the country a reputation that enables it to play an active role in peacekeeping and crisis resolution in the sub-region. The Burkinabe authorities are well aware of the efforts that need to be made to strengthen political governance. These include in particular:  deepening the rule of law in order to permanently entrench the democratic process and consolidate political stability;  promoting credible and accessible justice that requires bringing justice closer to the defendant, by accelerating the devolution of the judicial administration;  promoting respect for human rights and civic duty through the effective dissemination of texts relating to the promotion and protection of human rights;  strengthening the promotion of sub-regional integration and the pursuit of foreign policy on the maintenance and consolidation of international peace and security. I.4.2 ADMINISTRATIVE GOVERNANCE The Ministry of Public Service and State Reform was created in 2002 to effectively conduct the comprehensive reform of public administration (RGAP). The main objective of this reform is twofold: first, to make public administration a modern and efficient administration, led by well-trained servants, capable of rendering quality service to citizens and secondly, to make public administration a development administration capable of responding to the expectations of the decentralization process. Significant progress has been recorded and examples of this progress are:  the decongestion of career management acts that resulted in the installation and operation of the Computerized System for the Administrative and Wage Management of State Employees (SIGASPE) in the human resources departments of the various ministries and institutions;  the capacity building of stakeholders through the sharing of good practices as part of regular consultations between the directors of human resources (DHR) and those of vocational schools;  access to employment in public service through a competitive process that ensures equal opportunities for all applicants;  the establishment of an inclusive environment for public employees as a means of improving their working conditions, but also of recognizing older employees for service rendered to the nation;  the setting up of disciplinary boards in ministries and institutions as part of the promotion of civic responsibility within the administration;  the fight against corruption, with the establishment of the Supreme State Control Authority (ASCE) and the capacity building of other control structures, such as general inspectorates of services;  the initiatives taken to provide public administrations with procedure manuals;  the improvement of services to users; 20     the introduction of Information and Communication Technology (ICT) to strengthen administrative governance;  the publication in March 2009 of the first white paper on the Public Service. Furthermore, the various ministries were judiciously decentralized to accompany the decentralization process. After a decade of implementation, the overall reform of public administration has been evaluated in order to assess the results achieved, lessons learned and examine the appropriate steps to complete it. During the coming years, the challenge will be that of establishing a development republican administration through further reform of the Administration through a ten-year strategy to modernize the State and the administration management system (sectoral policies, program approach, procedure manuals, auditing of institutions, evaluation of public policies, etc.). I.4.3 LOCAL GOVERNANCE With the complete communalization of the territory, local governance is on the move and is working to control its values and develop instruments (plans and strategies) to assume its development responsibilities. It is within this context that the revised local government general code wants to be seen as the accomplished form of good practice. Indeed, the new provisions introduced can: - find a permanent solution to the recurring crises of municipal councils; - raise the level and effectiveness of primary officials of the said councils; - improve the mechanisms for the political and administrative management of local communities. Furthermore, the principle of transfer of powers and resources, initially planned for urban councils, has been extended to all councils in Burkina Faso, thus increasing their capacity and providing them with greater opportunities to successfully carry out their various council development plans. As concerns infrastructure, 282 out of 302 rural councils have headquarters. 11 (Eleven) regional council headquarters are in the process of being completed. Moreover, after three years of implementation of full communalization, it became necessary to reduce conflicts, optimize town councils and promote the efficient execution of council development plans. To this end, in 2009 the Government initiated the process of redrawing the boundaries of territorial communities and administrative divisions. Those of urban councils with special status, such as Ouagadougou and Bobo-Dioulasso, are already effective. In 2008, the Government established the National Conference on Decentralization (CONAD) with a Permanent Technical Secretariat (STP/CONAD) to promote dialogue between all actors of decentralization. A three-year Action Plan (PAT) 2008-2010 of the Strategy Framework for the implementation of decentralization has become operational under the STP/CONAD. The second session of this advisory body, held in 2010, helped to evaluate various achievements under this plan and lay the groundwork for the next plan covering the period 2010-2012. Despite these significant efforts, local governance is facing difficulties because of insufficient resources and the limited devolution of administration to support decentralization, weak accountability of local authorities and the poor quality of the relationship between devolution and decentralization. It will be necessary to make the tasks more specialized so that devolution is oriented towards development while decentralization more towards management. For the coming years, the major challenges will be that of carrying out successful economic decentralization through the creation of genuine regional development centers, capable of promoting a contract policy between the State and the regions. This will also involve the effective transfer of powers and resources to local authorities, the strengthening of the capacity of communities to manage local affairs and ensuring coherence of local action with State policies. 21    I.4.4 ECONOMIC GOVERNANCE The issue of economic governance, fixed as a priority since the adoption of the first Poverty Reduction Strategy Paper (PRSP) in 2000, is being vigorously addressed mainly through the public finance reforms implemented under the public finance strengthening strategy (PSRS). In recent years, efforts have been concentrated on strengthening the control system, the fight against corruption and the procurement mechanism. To improve and strengthen the control function, the Government restructured the procurement mechanism and took steps to make it more efficient. The control system (for the fight against fraud and forgery, auditing and rendering of accounts) has significantly improved, mainly owing to reforms implemented by the RGAP and SRFP, including computerization of budget execution (CID SIMP) and the mobilization of internal resources (ASYCUDA, CIR, SINTAX), the establishment of structures (IGF STI CASEM) and the legal provisions to ensure the audit and rendering of accounts (RGAP with mission letters and waiting cards for staff, programs and activity reports, the regulations establishing the deadline for rendering accounts, etc..) and strengthening the fight against fraud (review of the typical organization of ministries to broaden the powers of ITS in the fight against fraud). The restructuring of the mechanism against corruption led to the adoption of a decree on the organization of specific jobs for control bodies and another on the allowances system. A study was conducted to rationalize financial control, review the repository of payment deadlines and the attractiveness of the Inspectorate General of Finance. These decrees and measures have thus come to enhance the function of control and to create an overall synergy in the fight against fraud and forgery. Despite all these efforts, shortcomings continue to exist. Thus: - with regard to the fight against corruption, there are difficulties with enforcing regulations, weakness in monitoring the recommendations of control bodies, weaknesses in the application of sanctions, lack of internal control and insufficient coverage of the field of jurisdiction and territory by the control bodies; - concerning audits and rendering of accounts, human, material and financial resources are inadequate, thereby making these activities insufficient in quantity and quality. Moreover, there is no performance audit and a culture of results is not yet well established. There is usually no response to audit recommendations, in terms of incentives or sanctions. In addition, the rendering of accounts and their consolidation for the CASEM are not returned to the structures with recommendations or suggestions; the culture for monitoring is still insufficient. The strategic management of the economy is facilitated by effective instruments. Their implementation has helped lay the foundation for the proactive management of development and ensure coordination between long- term development policies and those of the medium and short terms. It has also contributed to the significant improvement of the public finance management system. However, the strategic management has a number of shortcomings, including: (i) the weak link between the different territorial levels (national, regional and local) and low consistency of relevant actions, (ii) inadequacies in the development studies on economic forecasts, (iii) low anticipation capacity to help avoid obstacles and external and internal shocks, due to shortcomings in strategic analysis, and (iv) insufficient consistency of most sectoral policies with development needs. Regarding the institutional arrangements of the PRSP more specifically, their effectiveness was severely limited due to focusing monitoring on activities and measures undertaken at the expense of results. Similarly, they were inefficient due to high transaction costs for both Government and the civil society, as well as for the technical and financial partners (multiple meetings, insufficient monitoring of recommendations, poor use of existing data and surveys for tracking purposes). 22    In addition to these key findings, there were also the weak link between the (PAP)-PRSP (triennial) Priority Actions Program, (PAP-CSRLP and budget, and the inadequacy of the overall schedule (juxtaposition of PRSP, fiscal and sectoral calendars). Indeed, the PAP-PRSP annual installment and the budget for that year were not prepared and adopted at the same time, and this weighed heavily on its effectiveness. Regarding aid coordination, there have been significant achievements: Adoption of the National Action Plan for Aid Effectiveness, development of an integrated external funding facility referred to as the Integrated External Funding Circuit (CIFE), establishment of the management platform (PGA), etc. But several challenges remain: - poor integration of aid flows in the budget process, because of its high level of unpredictability; - too many aid project conditionalities and the, sometimes contradictory, diverse approaches implemented at project level in the field; - low debt management capacity; - plethora of projects and program management units. The major challenges are those of improving predictability and budget implementation control, ensuring better coordination between the various development benchmarks, strengthening capacity for aid management and streamlining project and program management. I.5 REGIONAL AND LOCAL DEVELOPMENT I.5.1 PRIORITY TO REGIONAL DEVELOPMENT The region is seen as a mainstay of the State for the promotion of economic and social development. This option has been strengthened by measures, the most important of which are:  economic devolution, especially utilities (electricity, drinking water…) at regional level;  coordination of government action in the regions by regional governors;  the requirement for regional councils to develop regional development plans and regional budgets. In addition, regional programs have reinforced the priority given to regional development. They include the Regional Poverty Reduction Strategy Papers, the adoption of the Sahel regional planning scheme, rural development projects, natural resources management programs, local development programs, etc. Local and regional development has also been strengthened through reforms and institutional measures. I.5.2 INSTITUTIONAL REFORMS At the institutional level, the division of the territory into thirteen regions in 2002, the appointment of regional governors and the election of regional councils, respectively responsible for coordinating government action in the regions and acting as project managers for regional development programs, are measures that all attest to the Government's desire to promote grassroots development. This administrative reorganization of the territory has now been crystallized with the decentralization of ministries to the regions, in order to ensure continuity of public services in the regions. Finally, regional development frameworks for consultation and outreach activities, being the Regional Consultation Framework for Development (CCRD) and the Regional Commission for Regional Planning (ARCT), have been established. I.5.3 INVESTMENTS OF A REGIONAL NATURE The economic organization of the territory has always been a concern of the Government. In the aftermath of independence, the government tried to create economic regions. In addition, an effort was made to implement investment projects of a regional character. Development centers have been set up for several decades now and are experiencing a revival with the rise in regional planning in recent years. These are urban centers and 23    agricultural clusters that contribute to economic growth via polarized activities. The most widely shared polarizing function is the administrative function, with the other functions having a variable attractive force. Apart from these growth poles, the Government has implemented major urban and rural structural projects. The main structuring urban projects include the program for the development of 10 (ten) medium size towns that has become the program for the development of secondary centers, the 3rd urban project which covers Ouagadougou and Bobo-Dioulasso and concerns works in the areas of drinking water, sanitation, mobilization of local resources, urban management and community participation, the Ouaga 2000 project which is a large urban development project which seeks to transform the area into an urbanized functional unit with all the urban facilities and services needed (nearby public facilities, individual and collective housing, public transport… ), the Greater Ouagadougou project which seeks to integrate the capital with its suburbs, the regional poles development project that seeks to support the decentralization process by strengthening the capacity of urban councils involved to provide infrastructure and services to their populations and so on. In addition, major investments have been made to develop wildlife areas (national parks, total or partial wildlife reserves, a biosphere reserve, sanctuaries, ranches), forest areas as forest reserves, fisheries (Bagre and Kompienga), pastoral areas, mining (through mining concessions), large schemes such as Bérégadougou, Douna, Kou Karfiguela, Banzon, Sourou, Bagre and the SOSUCO. Another of these investments is the development of a small agro-industry, mainly located in Bobo-Dioulasso, Banfora Koudougou and Ouagadougou. These various initiatives that contribute to regional development need to be provided with the effective governance expected of decentralization. Government efforts have led to the development of council development plans for all the 302 rural councils. As for regional development plans, the process has begun for the 13 regions 7 (seven) of which have already been formulated. I.5.4 DECENTRALIZATION Since the early 1990s, as part of political, economic and institutional reforms, the Government began implementing decentralization to promote grassroots development. The process of decentralization reached a milestone with the full communalization enshrined in Law No. 055-2004/AN of 21 December 2004 General Local Authorities Code (CGCT). The elections that followed in April 2006 enabled the government to establish 351 councils across the entire territory and made up of 49 urban and 302 rural councils as well as 13 (thirteen) regions. The regional scale is both an administrative division and a local authority, while the council corresponds to that of the division, which has been maintained as the level of State representation and assistance to councils. Today, the decentralization process, which is being implemented progressively, has recorded the following results:  the legal architecture is in place. The general code on local authorities, which is the key element, provides 11 (eleven) blocks of powers to local governments working towards economic, social, educational, health, cultural and scientific development, the development of natural resources and the improvement of living conditions;  with the appointment of a secretary general of the council, local authorities have a minimum of administrative organization;  local authorities have financial resources from State support, own resources, endowments, etc..;  a Permanent Fund for the Development of Local Communities (FPDCT) has been established by the General Code on local authorities, with the mission to assist in the financing of local development priority programs of local authorities and to contribute to the strengthening of their operational capabilities. The process as thus described is experiencing difficulties and the core problems are: - the resources of local authorities are limited (6.95% of the state budget in 2009) and unevenly distributed. Councils with special status (Ouagadougou and Bobo-Dioulasso) represent 47.41% of general grants with 37.90% allocated to Ouagadougou. The other urban councils represent 26.18% of operating grants, with the 24    rural councils and regions sharing 22.34% and 4.08% respectively; - 48.31% of investment allocations go to special status councils, while those of the other urban districts are estimated at 15.20%. Rural councils and regions are positioned at 28.84% and 7.65% on average. This amount falls short of the 20% expenditure recommended by the texts on decentralization, as concerns the self-financing of capital expenditure; - local authorities have the obligation to prepare their development plan in accordance with national policies, but do not have all the means to do so, nor the skills to conduct such processes; - the transfer of resources relating to the 11 blocks of power has not been fast enough to enable local authorities to manage the continuity of the public services transferred. In 2009, only four decrees of transfer were signed in the areas of health, education, preschool, primary education, water supply and sanitation, culture, youth, sports and recreation; - all the councils are faced with problems of human resources in terms of quantity and quality; - the Permanent Fund for the Development of Local Communities (FPDCT) is not fully operational. It is experiencing financial difficulties that are undermining its independence and hindering its ability to accomplish its mission. On the whole, despite the difficulties and inertia, local and regional development is a difficult issue, fueled by an increasingly strong social demand. It is also a political will that is being increasingly asserted through the actions of the State. The main challenges will be the acceleration of the regionalization process, the completion of the devolution of public administration, capacity building of local actors in all areas and sectors and strengthening the financial resources of local authorities. I.6 KEY LESSONS I.6.1 MAJOR ACHIEVEMENTS The significant results obtained over the past decade have placed Burkina Faso among the leading countries of WAEMU in terms of macroeconomic performance. This is one of the country’s strengths and demonstrates its ability to restore and maintain the equilibrium of the main macroeconomic aggregates and a political stability which facilitates the implementation of more ambitious development actions. These efforts have benefited from the trust and support of the technical and financial partners, the private sector and the civil society. These achievements reflect the country's ability to handle various aspects of public life, cope with external shocks and adapt to natural hazards and constraints, while the adoption of a vision, through the implementation of the results of the "Burkina 2025" prospective national study, has helped to develop the capacity to anticipate events. This has resulted in an economic, social and environmental situation in Burkina Faso today, which can be presented as follows: - the national economy is on a growth path, albeit with a rapid population growth; - poverty has been reduced, but must be further reduced, for any hope of achieving the MDGs; - he country has made significant progress in human development that has resulted in qualitative leaps in the fields of drinking water, HIV and AIDS and the education of girls; - the Government has implemented programs and projects that have helped improve the living environment and enhance the sustainable management of natural resources. 25    I.6.2 MAIN CHALLENGES Concomitantly with the achievements, challenges to address persist in defining guidelines for the coming years to boost growth and ensure better distribution of its fruits. Indeed:  Good macroeconomic performance contrasts with the mass poverty affecting 43.9% of the population. The main reasons are:  Weak growth in relation to the level of population growth that has not induced a significant reduction of poverty;  the variability in growth rate, given the importance of the agricultural sector, which remains dependent on weather conditions;  the preponderance of sectors, in particular the tertiary sector, with a low concentration of poverty and low job creation in national wealth formation, without strong policies of redistribution that ensure the transfer of fiscal benefits to the poor or their production sectors;  the low per capita creation of wealth of the active population in the primary sector compared to other sectors; with over 80% of national poverty, the sector contributes only 30.4% of the GDP on average;  high population pressure (3.1%) which destroys all efforts to build wealth.  the low progress in HDI results, among other things, from the weak performance in the education sector. In fact, key indicators of access to preschool and secondary education remain very low. Even though those of primary school are higher, improving its quality remains a challenge. As for higher education, it is the weak link of the education system despite the strong growth of university infrastructure. Building a nation of knowledge is therefore a challenge to address;  key health indicators have improved, but inequalities persist in health outcomes and strengthening the national health system should be considered a major challenge to create conditions conducive to reform, especially that of hospitals;  establishing a balance between the sexes in terms of schooling and literacy, improving the status of women and gender mainstreaming in all development sectors are significant challenges for accelerating growth;  regional planning is a political will which is asserting itself, but much remains to be done to develop planning tools and instruments;reforms in governance have progressed considerably, but many challenges remain to further the rule of law, establish a republican development administration, fight against corruption and achieve economic decentralization;  the situation in Burkina Faso in terms of sustainable development is not satisfactory. Indeed, the dominant production system, namely subsistence agriculture, cannot feed the population adequately, given its rapid growth rate. This rapid population growth in a relatively efficient economy leads to high poverty and the degradation of natural resources. Added to this are low yields, sub-urbanization and land tenure problems which are all factors that can undermine the prospects for sustainable development in Burkina Faso;  Burkina Faso is a country facing structural weaknesses that affect its competitiveness. This state of affairs is the result of several factors: high cost of production factors, underdeveloped basic economic infrastructure, difficulties in accessing markets (domestic and external) in a sustainable way, low development of national energy potential, tax burden on businesses and dependence on thermal energy; economic growth in Burkina Faso is dependent on agriculture which is not very diversified and vulnerable to exogenous shocks. Overcoming the challenge of accelerating growth implies meeting the challenge of diversifying the economy;  public spending has continuously been on the rise without any visible impact on poverty reduction. The challenge for the coming years will be that of controlling and improving its effectiveness and efficiency;  the importance of the share of external resources in investment financing in Burkina Faso reflects the confidence of PTFs in the country’s national policy choices. It does, however, pose the challenge of predictability and effectiveness of using these resources, as these are the sole guarantees of good planning and a proper execution of development programs;  the risk of debt distress remains high in Burkina Faso, because of a high ratio of net present value of 26    debt This reflects new debt accumulation, coupled with low exports and moderate growth. This situation calls for vigorous reforms in the export sector, continuous and accelerated improvement of the tax ratio, and strengthening of the quality of institutions that would help enhance the borrowing capacity through an increase in the CPIA score (Country Policy and Institutional Assessment). Therefore, the great challenge facing Burkina Faso is the acceleration of growth and sustainable development, while significantly reducing the incidence of poverty. 27    II.STRATEGY FOR GROWTH AND SUSTAINABLE DEVELOPMENT    28   II.1 FOUNDATIONS Starting from its long-term development vision, taking into account cross-cutting issues and development and drawing lessons from the decade-long struggle against poverty, Burkina Faso is engaged in a new development strategy which aims at accelerating growth and promoting sustainable development in order to put the country on the path of emergence. This strategy, called the Strategy for Accelerated Growth and Sustainable Development (SCADD), derives its foundations from the "Burkina 2025" Vision, which seeks to make Burkina Faso "a nation of solidarity, progress and justice, which consolidates its respect on the international scene." Achieving this vision requires breaking away from inertia and cumbersome procedures and leap to progress by finding new avenues for creating values. It also implies a harmonious organization of development efforts to tap all the national potential for the benefit of all Burkinabè and engaging stakeholders in national development. The SCADD has also drawn on lessons learned from the PRSP process, as well as the challenges that remain to be addressed by the new strategy. Indeed, apart from the constraints of external shocks, Burkina Faso faces continuing challenges for achievement of the MDGs, notably that of accelerated growth and sustainable development. Moreover, high population growth threatens to significantly reduce national income per capita, if the trend is not reversed in the medium and long term. It also based on the need to integrate cross-cutting priority development issues into public policies that in particular concern: gender, population, environment, regional planning and capacity building. The SCADD, a strategy that includes all development policy frameworks, be they long, medium and short term, or global, sectoral, thematic or local, spells out the strategy guidelines that will accompany Burkina Faso’s development ambitions, defines the country’s development objectives and is presented in five-year cycles. Thus, the SCADD has become the reference framework for all development interventions. It is a results-oriented strategy guide, given that rendering the axes operational will be achieved through sectoral policies. Its vision for 2015, entitled "Burkina Faso, a productive economy that accelerates growth, increases living standards, improves and preserves the living environment and living conditions through wise and efficient governance", focuses on priorities for economic growth and aspirations for a better quality of life of the population. The approach to accelerate growth stems from the fact that the average rate of current growth is insufficient to bring about a significant reduction of poverty. Indeed, with an GDP growth rate of 5.2% and a population growth rate of 3.1%, it would take about 35 years to double per capita income. Therefore, accelerating the growth rate and intensifying job creation are necessary for better absorption of additional demand, improved income levels and living conditions of the population and, consequently, reducing unemployment and poverty. On this basis, the main thrust of the coming stage will be strengthening the foundations of the economy and enhancing its potential to achieve an accelerated growth rate to respond to the twin objectives of improving income and creating jobs, as well as strengthening the foundations of sustainable development. At the same time, further efforts will be directed towards boosting the sustainable development process. Indeed, the SCADD will ensure synergy among the three dimensions of sustainable development, namely: (i) economic effectiveness geared towards growth and efficient economic management objectives, (ii) environmental sustainability that seeks to preserve, improve and develop the environment and natural resources and (iii) social equity which seeks to meet human needs and respond to the objectives of equity and social cohesion. Practically, sustainable development implies "sustainable consumption and production patterns." This option is necessary because it ensures sustainable growth and a healthy environment, capable of meeting the aspirations of present and future generations. In short, the SCADD has come to reinforce the PRSP’s achievements and offer sound strategies for developing the productive system and human capital. It is proposing an implementation scheme, with better coordinated actions, through priority sectors, to boost growth and contribute to sustainable development.   29   II.2 STRATEGY GUIDELINES II.2.1 GUIDING PRINCIPLES The strategy for accelerated growth and sustainable development is underpinned by 06 (six) guiding principles: (i) anticipation, (ii) national ownership, (iii) accountability, (iv) sustainable development, (v) prioritization and consistency of actions and (vi) results-based management (GAR). Anticipation: the implementation of the SCADD requires the constant adoption of a forward-looking position. Indeed, the various development actors should be able to anticipate the future to be able to prepare themselves in advance to cope with threats and take advantage of the best opportunities offered in the short, medium and long term. Such an approach requires national leadership in the formulation and implementation of development policies and programs. National ownership: This principle reflects the will and commitment of the Government and the other national development stakeholders to carry out the process for developing and implementing strategies and policies consistent with national development priorities and needs of the people. It involves the coordination and effective use of official development assistance, taking into account the comparative advantages of each technical and financial partner. Accountability: The process of developing the SCADD was made participatory in order to take into account all the concerns of the various stakeholders. The Government intends to continue and deepen this process in its implementation for a better and better shared governance, by rendering all those involved more accountable. Sustainable development: This principle is aimed at the continuous improvement of the quality of life of citizens by taking into account the interrelated nature of environmental, social, economic and cultural development in a context of intra-and intergenerational equity. Within this perspective, the need to reconcile economic efficiency, environmental sustainability, social and cultural equity will be taken into account in the implementation of the SCADD. Consistency and prioritization of actions : given the State’s limited resources, it is essential for the SCADD to prioritize the implementation of, ensuring that there is a connection between those measures and the vision of the strategy. Such prioritization will assist in concentrating financial efforts on specific areas, so as to really spur an economic boom that will, subsequently, make it possible to focus on other areas. Results-based management (GAR): this approach seeks to achieve results, in terms of defined objectives and indicators, and the achievement of results. In this sense, each player is responsible for achieving results from the operations or processes he or she coordinates. Results-based management implies a clear definition of responsibilities in the implementation of activities or processes, including accountability.   30   II.2.2 OBJECTIVES II.2.2.1 Global Objective The overall objective of the SCADD is to achieve a strong, sustained and quality economic growth, generating a multiplier effect in terms of income generation, quality of life of the population, and caring about sustainable development. II.2.2.2 Specific objectives Over the period 2011-2015, the SCADD will be seeking to accelerate growth and pursue the achievement of the MDGs. As such, it will endeavor to: 1. achieve a real GDP average growth rate of 10%; 2. alleviate extreme poverty and hunger in the country; 3. ensure primary education for all; 4. promote gender equality and empower women; 5. reduce the mortality of children under 5 years; 6. improve maternal health; 7. combat HIV, AIDS, malaria and other diseases, and continue the reversal of the trend; 8. ensure environmental sustainability. These specific objectives related to MDGs are presented with targets to be achieved by 2015 in Table 6 below.   31   Table 6: MDG targets set by SCADD for 2015 Indicators Current level Year Value MDG target SCADD target MDGs Targets by 2015 by 2015 1.1 Proportion of population living with incomes below 2009 43.9 22.25 Less than 35 the national poverty line Target 1A. Reduce by half, between 1990 and 2015, 1.2 Poverty gap index 2008 14.10 6.95 6.95 the proportion of people living on less than a dollar 1.3 Share of quintile of the a day (in PPA). poorest population in national consumption 2009 4.01 13.50 10 1.4 GDP growth rate per person employed 2007 10.6 10.6 3.80 Goal 1: Target 1B: Achieve Eradicate productive full extreme employment and poverty decent work for all, 1.5 Ratio of employed urban and hunger including women and population/total active urban youth population 2003 86.20 100 100 . 1.6 Prevalence of insufficient Target 1C. Reduce by 2007 31.70 28.65 23 weight among children half, between 1990 and under 5 2015, the proportion of the 1.7 Proportion of population population without the minimum level suffering from hunger of calories 2006 32.80 13.34 23 Target 2A. Give all Goal 2: children, boys and girls Achieve across the world the universal means to 2.1 Gross enrolment rate 2009 74.80 100 100 primary complete a full cycle of education studies in primary school by 2015.   32   Indicators Current level Year Value MDG target SCADD target MDGs Targets by 2015 by 2015 2.2. Net enrolment rate 2009 57.40 70 70 2.3 Primary school completion rate 2009 100 75.7 45.90 2.4 Literacy rate of women and men of 15-24 years of 2007 39.30 60 60 age 2009 3.1: Parity index 0.91 1 1 Target 3A. Eradicate Goal 3: gender disparity in Promote primary and secondary Gender 3.2: Proportion of seats schools and at all equality levels of education by occupied by women in empower 2015 at the latest parliament 2009 12.70 50 33 women 4.1 Mortality rate of 2006 142 62.30 52.71 children under 5 Goal 4: Target 4A. Reduce, by Reduce two thirds, the 4.2: Infant mortality rate 2006 91.77 35.86 34.43 mortality of mortality rate among children children under 5 years 4.3 Proportion of 1 year old less than between 1990 and children vaccinated against 5 years old 2015. measles 2008 97.60 100 100 5.1: Maternal mortality rate per 100 000 live births 2006 141.50 176.70 307 Reduce by ¾ between 5.2: Proportion of births Goal 5: 1990 and 2015 Improve attended by qualified health maternal mortality. maternal staff 2009 70.70 100 85 health Target 5B: Increase 5.3: Contraception rate 2008 27.90 45 40 access to   33   Current level Indicators SCADD MDG target MDGs Targets Year Value target by by 2015 2015 Goal 6: Combat HIV, Universal AIDS, malaria reproductive 5.4: Prenatal care coverage and other 2008 95.10 100 100 medicine by (at least one visit) diseases and 2015. continue reversing the trend   34   Current level Indicators SCADD MDG target MDGs Targets Year Value target by by 2015 2015 6.1: HIV and AIDS prevalence Target 6A. rate in % of population aged 15- Have halted the 24 2008 1.30 0.77 1.12 spread of HIV and AIDS by 2015 and started 6.2: Use of condoms during last 2009 69.60 100 100 reversing the high risk sexual relations current trend 6.3: Proportion of population 15- 24 years with correct full 2009 24.90 100 100 knowledge of HIV/AIDS Target 6B: Ensure access to treatment, by 2015, for all 6.4: Proportion of population in those who need advanced stage of HIV infection 2009 47 100 100 treatment with access to against antiretroviral drugs HIV/AIDS. 6.5: Proportion of children under 5 sleeping under 2005 23.17 90 80 insecticide treated nets Target 6C: Have brought 6.6.a: Tuberculosis detection rate 2008 19.9 51% 51% malaria and other major 6.6.b: Prevalence of diseases under tuberculosis per 100 000 2008 337 200 200 control by 2015 inhabitants and began 6.6.c: Rate of deaths due to reversing the 2008 10.9 <5% <5% tuberculosis current trend 6.7: Proportion of tuberculosis cases detected and cured 2007 72.12 90 85 through a direct short-term program and under observation Goal 7: Target 7A: 2009 Reduce by half, 7.1: Rate of access to drinking 72 87 89 Ensure the percentage water in the urban areas environmental of people sustainability ith t   35   Current level Indicators SCADD MDG target MDGs Targets Year Value target by by 2015 2015 7.2:: Rate of access to drinking 2009 55 76 76 water in the rural areas 7.3: Rate of access to 2009 19 57 57 sanitation in the rural areas Current level Indicators SCADD MDG target MDGs Targets Year Value target by by 2015 2015 7.4: Rate of access to improved sanitation in the rural areas 2007 54 54 7.5: Percentage of Target 7.B: Integrate sustainable activities subject to development principles in national environmental policies and reverse the current assessment that have 2010 80% trend of loss of environmental conducted an resources environmental study . 7.6: Percentage of 2010 0 10 land recovered Achieving these goals requires the adoption and implementation of effective and sectoral strategies aimed at accelerating growth, consolidating the development of human capital and promoting sustainable development. II.3 STRATEGY AXES Four (4) strategic axes have been identified to meet the challenge of accelerated growth and sustainable development. These are: (i) the development of the pillars of accelerated growth, (ii) strengthening human capital and promoting social protection, (iii) strengthening good governance and (iv) taking into account crosscutting priorities in development policies and programs. These various axes are complementary and interact to achieve the objectives of accelerated growth and sustainable development.   36   II.3.1 AXIS 1: DEVELOPMENT OF THE PILLARS OF ACCELERATED GROWTH II.3.1.1 Accelerated growth model The model adopted makes the private sector the engine of growth. It is based on an innovative approach that focuses on (i) the promotion of growth6 poles, (ii) the development of promising sectors, promotion of niches7 business8 clusters, and (iii) promotion of pro-poor growth to effectively fight poverty. II.3.1.1.1 Promotion of growth poles Growth poles will help structure the production system, diversify and increase the supply of products and secure food security for the population and provide a greater amount, export earnings for country. During the 2011-2015 period, the focus will be on the development of growth poles (including agro-poles9, mining areas, a special economic zone, etc...) to attract investors, in a bid to expand and diversify production and exports. Studies will be conducted in all regions of the country to identify potential areas of growth poles and select, for this phase, those meeting the minimum requirements. Regions or group of regions will be selected for this approach. The State will work, in conjunction with local authorities, to gather relevant actors (firms, research centers and training units, support structures) in a partnership to foster synergy around market-oriented innovative projects seeking competitiveness and national and international visibility. Studies are underway to experiment with competitiveness poles, and brainstorming has also begun on the possibility of setting up special economic zones to attract investors and boost exports. The SCADD will frame and enhance all these initiatives. Promotion of the growth and competitiveness poles consists of highlighting sectoral potentials and local resources, developing strategies supported by both the State and local governments, and also by using public- private partnerships. As such, territorial programs focused on key growth poles will be put in place, with costed objectives and adequate funding. The approach adopted will combine the strengthening of the competitiveness of certain sectors with the construction of real poles for the emergence and consolidation of modern enterprises, which may have access to qualified local staff and benefit from service infrastructure necessary for their development. To this end, the Government will develop a coherent approach based on its vision of regional planning and regional development priorities. In this perspective, it will undertake: (i) the identification of potential growth poles, which could be financed by the government, (ii) the establishment of a promotion fund for growth poles as a government funding instrument, and to support selected businesses in the form of guarantees, (iii) the establishment of a coherent framework involving key stakeholders (government, local authorities and private sector), in order to implement territorial development programs and develop new mechanisms for coordinating and monitoring specific sectoral programs and (iv), the development of a policy to promote growth poles. II.3.1.1.2 Development of production sectors and promotion of niches and business clusters This work will focus on strengthening the most promising production sectors and niches. The strategy will seek to transform business clusters into growth engines. The aim is to provide a dynamic networking and business                                                              6  In the literal sense of the expressions "growth pole", "economic pole" or "competitiveness pole", a growth pole is a combination of enterprises and public or private research centers in a given territory or a local community whose economic activity is an engine of economic growth. An economic pole is a location with an advantage in economic activity. A competitiveness pole is a combination of companies, universities and public or private research centers in a given territory, working together on very innovative joint projects. The purpose of a competitiveness pole is to organize businesses to ensure competitiveness on the international market.   7 The niche is a small market segment targeted in terms of customers or products that are generally new or untapped.  8Business clusters are: business networks consisting mainly of SME/SMIs, strongly rooted locally, often on the same production niche and often the same industry, mobilized around a common strategy and the implementation of concrete and shared services and measures. They are very important vectors of development and competitiveness for businesses and territories.  9 Concentration poles of the agro-forestry-pastoral business comprising all the (production, processing, marketing) links.     37   structure, by developing a network of companies with economic links throughout the country. The approach will focus on the agricultural, crafts, forestry, wildlife and sanitation sectors in all regions of the country and great efforts will be made to structure and support them in order to create a major development push at the regional level and across the entire country. The approach will give prominence to products with a high potential value added to satisfy market needs, focusing on production, quality and presentation standards to ensure the competitiveness of products. Burkina Faso sells a wide range of agricultural and livestock products, of varying quality and generally poorly developed, on the regional and international markets. The main products are: oilseeds whose best export opportunities are in the international markets; cereals and cowpeas whose export potential lies mainly in West African markets; - fruits and vegetables, which have potential in markets both in the sub-region as well as internationally; - livestock products (meat, leather and skins) whose export potential lies in the regional and international markets; - milk and dairy products, whose domestic market alone amounts to almost CFA F10 billion a year. Each of these sectors has already been substantially studied, with action plans whose findings and recommendations remain valid. The work involved here will be to make use of the results of these studies to determine the sectors that are promising and likely to enhance export potential and contribute to the acceleration of economic growth. The task is to make them efficient and competitive. In terms of niches, Burkina Faso has many opportunities in various areas where business can be developed. These opportunities, sometimes small, are nevertheless very promising and could make a lasting contribution to the acceleration of growth through their high value added. So these niches need to be identified, assessed and promoted. An example, is horticulture. II.3.1.1.3 Promotion of pro-poor growth With nearly 44% of its population living below the poverty line, poverty reduction remains a major challenge for Burkina Faso. To achieve this, the country has to accelerate growth by formulating policies that address the need for increased income for the poorest segments of the population, so as to reduce inequalities and ensure equitable growth. To this end, the Government intends to promote pro-poor 10 growth, by identifying and implementing measures that have a significant impact on poverty reduction through job creation, and formulation of proactive policies to increase incomes for the poor. These measures will affect in particular the agricultural, infrastructure and craft sectors, which provide for the poor and vulnerable. Policies will also affect the social sectors, and seek to redistribute the fruits of growth, while providing higher incomes for the poor. II.3.1.2 Development of priority sectors The new growth model involves adopting a new vision of sectoral policies to reflect the different challenges and promote a transformation of the structure of the economy in the long term. To do this, selected areas of intervention will be rearranged to adapt to expected changes. II.3.1.2.1 Agricultural sector: agriculture, livestock, fisheries and forestry Significant physical, technical and socioeconomic constraints have been limiting the performance of the agricultural sector. Removing these constraints requires the adoption of relevant guidelines for the development of the sector with emphasis on cooperation, the emergence of agricultural SME/SMIs, and their organization into local production systems.                                                              10Pro-poor growth is defined as growth which significantly reduces poverty. This pro-poor growth is aimed at enhancing both the income and/or the well-being of the poor, reducing their number as well as the inequalities between them and the wealthy.    38   To this end, new coherent and bold sectoral policies should focus on land tenure security, through the effective implementation of the land tenure security policy and the national strategy for the integrated management of soil fertility (SNGIFS), the effective implementation of the action plan for agricultural mechanization and the measures to adapt and mitigate the vulnerability of the sector to face climate change, the development of agro-industrial processing, and promoting the marketing of agricultural products, including the establishment of an effective partnership between agricultural producers and small, medium and large size processing industries. In light of the very high level of poverty in the rural areas (50.7%), a significant number of measures will be directed towards promoting pro-poor growth. They will seek to increase the productivity of the rural poor by: (i) subsidizing or distributing improved seeds and agricultural inputs, (ii) training and sensitizing with respect to good agricultural practices, (iii) developing market access capacities, (iv) securing land tenure for the poor, (v) carrying out agricultural research and outreach activities and (vi) protecting against risks and other farming uncertainties that can plunge or keep the population in poverty. II.3.1.2.1.1 Agricultural subsector Based on the high-potential sector approach, efforts will be focused on: - the cereal sector through the development of cooperation between grain farmers and research centers for high-return seeds, the fight against pests and other diseases; - oilseeds (sesame, shea nuts and cashew nuts) with a focus on research to increase production; - vegetables, especially through the promotion of cowpea; - fruits and vegetables by developing public-private partnerships (PPP) to create innovative trading companies. Increased accountability will require the exporter to better choose his orchards and remain loyal to local producers. A contractual relationship should be established whereby, in exchange for technical support to the farmer and upgrading required by the constraints of certification, the producer reserves his output for the exporter. This is also a change in mentality for the producer to consider his orchard or field as an "asset" to maintain and fructify for a better yield. - cotton through local processing (ginning, spinning, weaving, garment industry, etc..) improving its competitiveness, subsidizing inputs and reinvesting cotton revenues in other industries to diversify production. Particular attention will be given to the organization and connection to markets of the various sectors. Emphasis will be placed on developing irrigation for agricultural production, exceeding 50% by 2015 and on adopting a comprehensive strategy for protecting the agricultural sector against climatic risks. Regarding research and development, the priority directions will be the establishment of a plan for improved seed production by INERA, through a contract-plan with the State. Dissemination of research results will enable producers to have useful information on new farming techniques and high-yielding varieties. The aim is to supply all farmers with improved seeds by 2012 and promote their autonomy in the renewal of seeds from 2015. II.3.1.2.1.2 Livestock subsector This sub-sector is facing a number of challenges, notably the improvement of livestock productivity and development of the dairy industry. During the coming years, efforts will be made for better management of the sub-sector. The main axes are: - the establishment of a growth pole for the livestock sub-sector, by developing cooperation among producer organizations, research centers and training units to implement competitive livestock projects and win contracts; - strengthening the organization and capabilities of players in the livestock sub-sector;   39   - increasing animal productivity, through measures to improve nutrition, drinking water (pastoral water policy), genetics and animal health. As concerns animal products (leather and skins, milk and milk products, meat, domestic poultry and sausage), the work will be to organize actors (producers, processors, traders, research and training centers) on an entrepreneurial basis, stimulate the search for excellence and competitiveness, offer market opportunities and develop innovative and competitive cooperation projects. Particular emphasis will be placed on the organization and development of the dairy industry through cooperatives, improvement of collection, establishment of milk processing units, marketing milk and dairy products. Moreover, the effective implementation of the program to support the processing of animal products is expected to contribute to creating the conditions for the installation of small private units. Processing units and marketing that contribute to the building of the economic fabric will be given priority. Synergy and complementary relations between the players in each sector will be sought. The State will contribute to the financing of community infrastructure and organization of actors. II.3.1.2.1.3 Fishing and forestry subsector With regard to of fishing and forest products, the aim of the strategy is to specifically target the development of wood (including timber), non-timber forest products (harvesting and hunting), hunting tourism and the development of fisheries and the fish industry that represent a great potential for growth poles. Priority will be given to implementing the national policy on the environment and sustainable development. In conclusion, what is needed is to better organize players in the agro-forestry-pastoral sector into efficient structures, train them in modern methods of management and conquest of markets, and get them to pool their resources for improved performance. In addition, measures will be taken to open up areas of production and exchange, build infrastructure for marketing, process the products to improve their conservation and increase their added value and establish a system for effective information on markets. The work will also seek to improve product quality for export, set up industrial or semi-industrial units for processing products to enhance their value, strengthen capacity and improve services in terms of packaging and quality control of products, and develop commercial products wherever possible, according to comparative advantages. Finally, the organization of regional agro-forestry-pastoral fairs will be encouraged. II.3.1.2.2 Mines The Government of Burkina Faso has shown its willingness to promote this sector, with the adoption of a new and more attractive mining code in 2003. Taking advantage of this measure and the upturn in the global prices of precious metals, the sector experienced a special growth that resulted in increased private investment of approximately 700 million dollars between 2006 and 2009 and that is expected to increase in the coming years. Mining in Burkina Faso is mainly based on gold, which, since 2009, has been the leading export product. To maintain investor confidence and attract new ones in this strategic sector given its importance to the national economy through its value chain and spillover effects, it is important to: (i) accelerate the revision of the mining code to reflect the realities of the sector, better protect the environment and fight against poverty, (ii) accelerate reforms to make Burkina Faso an ITIE country, (iii) better monitor exports and financial flows, (iv) establish a one- stop window and finally, (v) strengthen government capacity to evaluate the financial performance of extractive companies. The Government's option for the mining sector is to make it a real vector of the dynamics of sustainable development for the country. To this end, the strategy will be based on the promotion of growth poles around the mining areas by: (i) developing activities related to mineral production, (ii) developing processing activities, (iii) reinvest mineral revenues in the diversification of production and the development of social sectors to the benefit of the country and, more specifically, to that of the areas of production.   40   II.3.1.2.3 Handicrafts, cultural and tourism industries Handicrafts have a great economic and job creation potential. The handicraft sector currently employs nearly one million people, half of whom are women (dyeing, basketry, weaving, pottery, sewing, aesthetics and hairdressing…). In addition, it constitutes, together with the urban informal sector, an area of high concentration of the poor. Thus, the Government intends to use the handicraft sector as one of the levers for promoting pro- poor growth. Apart from the Ouagadougou handicraft village, the most important locations for selling products are periodic cultural events. At the international level, these include fairs, international exhibitions and exploratory trips. The growth strategy of the crafts sector for the coming years should focus on a process of real expansion instead of that of accompaniment. Thus, the strategy will: (i) encourage the emergence of model creators and producers, (ii) identify promising sectors to make them spearhead this initial phase, (iii) encourage the emergence of small and medium size craft enterprises (for production, sales, financial support), (iv) organize individual craftsmen into urban and rural cooperatives and other local production systems to improve their performance and competitiveness, (v) institutionalize selected crosscutting activities such as : national labels for better visibility of products on target markets, buttress tourism and its policy of promotional communication, training and learning development, certification of craftsmen. Handicrafts and culture contribute to the development of tourism in Burkina Faso. Indeed, the country has developed public and private cultural events of international renown such as FESPACO (film festival), SIAO (crafts and art), CNS (culture), NAK (atypical Koudougou Nights), FESTIMA (Dédougou International Festival of Arts and Masks) and SITHO (tourism and hotels). These major events, and the promotion of cultural and touristic sites such as Laongo (village of granite sculpture) and the Ruins of Loropéni, attract national and international artists, tourists and visitors and provide the country with substantial foreign currency. Burkina Faso can therefore benefit from the dynamism of its cultural actors, its leadership in culture, and its reputation as a hospitable country to develop its cultural and tourism potential and earn more foreign currency. During the coming years, government measures will be aimed at structuring and developing the cultural and touristic sectors in order to ensure improved profitability of the two sectors in terms of foreign exchange earnings. Also, in order to provide the two sectors with adequate capacity to compete and contribute more to sustainable development, efforts focus on: - the development of entrepreneurship and cultural, creative and tourism industries; - the implementation of effective strategies for promoting cultural and tourism goods and services abroad; - technical and financial support of leaders in the creation and dissemination of artistic and cultural life; the development of cultural and tourism infrastructure, as well as cultural and touristic sites and areas; - the implementation of a new policy for tourism infrastructure, improving the quality and diversification of lodging options, restructuring and rehabilitation of touristic sites; - the development of tourism in the areas of cultural, ecological, and recreational tourism as instruments for strengthening the sector's profitability; - the promotion of domestic tourism as a strategic axis of development of tourism in general; - strengthening the role of the private sector in the development of tourism and management of the sector, particularly in the areas of promotion, training and building of infrastructure.   41   At the same time, recreational activities will be developed, in particular through training and the creation of favorable conditions for the emergence of a leisure industry. II.3.1.2.4 Small and Medium Enterprises, Small and Medium Industries (SME/SMI) The industrial sector is underdeveloped and facing difficulties due to the high cost of production factors and resources (energy, transport, telecommunications and inputs which are for the most part imported), the small size of the domestic market and the low diversification of production. The most promising agribusiness will have to be given close attention, to render it buoyant and provide it with suitable technology for the processing of agricultural raw materials and satisfying the strong domestic demand. In any case, it will be up to the State to create conditions and adopt incentives that will enable the private sector to establish processing units for agricultural surpluses and ensure the fair trade of products. The State will ensure that the rules of good conduct in the matter are respected. It is therefore necessary to reorganize the sector, promote SME/SMIs, improve the business environment and connect the food industry with rural producers in a partnership approach that is profitable to all. In short, what is required is the development of the production- processing-marketing value chain. The new guidelines will be geared towards the development of a network of SMEs, given the capacity of these companies in terms of innovation, value creation and rapid adaptation to international competition. To this end, a much more favorable climate for SMEs will be necessary, through: (i) the continuation of reforms in the sectors of electricity, oil, water and telecommunications, (ii) the simplification of procedures for setting up businesses and carrying out investment, (iii) the strengthening of the effectiveness of support programs for the private sector, (iv) the fight against fraud, unfair competition and corruption, (v) the strengthening of the legal framework for business, particularly by strengthening the commercial courts and (vi) the development of appropriate business areas. Furthermore, the adequate funding of SME/SMIs remains a subject of reflection for the Government. SME/SMIs should, however, organize themselves in groups, for their better integration into production and distribution networks. II.3.1.3 Development of support structures Concerning infrastructure, priority will be given to supporting the production system. The pro-poor growth approach will be used by labor-based work (high intensity of labor). This approach will not only help with the building of infrastructure, but promoting also higher incomes of the poor, both at the time of construction and the use of such infrastructure. To this end, emphasis will be placed on the following priority areas: (i) hydro-agricultural infrastructure, (ii) transportation infrastructure to open up inaccessible areas to render them accessible during all seasons, (iii) infrastructure, to increase productivity in all sectors and promote market expansion beyond the borders, (iv) energy infrastructure to reduce costs of production factors and allow better access to modern energy services (v) urbanization and development of real estate, (vi) promotion of support institutions and (vii) commercial and marketing infrastructure. II.3.1.3.1 Hydro-agricultural and pastoral infrastructure The country has enormous potential for the development of lowlands and irrigation. The practice of irrigated agriculture and the cultivation of out-of-season crops have provided proof over the recent years. The Government's objective is to increase the contribution of these crops by 50% by 2015. In this perspective, a sustained effort will be made for the creation of hydro-agricultural infrastructure (large and small scale irrigation). The pace of creation of dams for small scale irrigation will be accelerated in order to expand areas of production. The intensification of animal production also requires the establishment of water points, grazing areas and access roads to encourage sedentary livestock and increase its contribution to growth.   42   II.3.1.3.2 Transport and logistics Transportation costs remain high in Burkina Faso which hampers the competitiveness of the economy. These high transaction costs discourage economic operators and hinder investment and growth. Opportunity costs for the economy are also very high, since the current logistics system cannot properly develop the services that are needed to diversify the economy. During the coming years, the State will develop carriers capable of working in partnership with international logistics companies to raise Burkina Faso up to international standards . This will be done by developing a hub combining road, rail and air transport. To this end, Government will continue the development of roads and construction of the Donsin airport and the rehabilitation and construction of railways. Economic development agencies such as Burkinabe Shippers Council and the Chamber of Commerce and Industry of Burkina Faso, will have a positive role to play in improving the transport and logistics chain. Furthermore, the Government will continue its opening-up policy through the development of road infrastructure. To do this, emphasis will be placed on the construction and rehabilitation of roads throughout the country and the development of rural roads to facilitate transportation of people and goods, as well as the sale of products. II.3.1.3.3 Information and communication technologies (ICT) Besides its importance for the development of activities in all sectors, ICT is an important growth vector. In this sector, the country has made impressive progress. The state has an infrastructure development strategy that is aimed at making ICT a powerful lever for development, through a program it has set up to promote digital technology in all sectors. During the coming years, the focus will be on consolidating achievements, while developing new programs and innovative projects for building the information society, through:  the creation of an enabling legal and institutional environment in the telecom/ ICT field;  the creation of a technological and infrastructural environment conducive to telecom/ICT;  the support for the implementation of sectoral e-strategies;  conducting communication, training, research and capacity building activities in the area of telecom/ICT  the promotion of areas of activity dedicated to the digital system (computer assembly and other  network equipment, maintenance and production equipment and sale of software, etc.). This platform could welcome foreign companies into joint ventures and enable Burkina Faso to excel in this area in the sub- region;  the promotion of access to modern postal services throughout the territory. II.3.1.3.4 Energy The overall situation of energy in Burkina Faso is characterized by a predominance of thermal power (88%) in the overall supply of electricity, a total dependence on petroleum products, very low level of development of renewable energies, a low coverage of electricity needs and low output by energy consuming equipment. All these factors increase cost and burden the competitiveness of the economy. Meeting the challenge of accelerated growth and sustainable development will require a permanent supply of electricity at low cost. To lower the cost of electricity, the Government will have to (i) establish an institutional framework and regulatory and tax measures that can mobilize actors and raise resources, (ii) secure the country's supply and reduce energy costs, (iii) open up rural areas by expanding networks and pre-electrification and attain a national electrification rate of 60% by 2015, (iv) mobilize and develop the national energy potential and (v) improve energy efficiency.   43   This strategy will pay particular attention to the development of renewable energies, in particular solar energy, the development of interconnection with countries of the sub-region and the promotion of cooperation. II.3.1.3.5 Urbanization Urban development contributes substantially to economic growth. The desire to make Burkina Faso’s cities economic and growth hubs has resulted in the adoption of the national policy on housing and urban development (PNHDU) which will become operational through a ten-year action plan over the 2009-2018 decade. The Government will therefore work to establish an efficient urban system, with the objective of increasing the urbanization rate to 29% in 2015. The economic functions of cities will be strengthened. The cities of Ouagadougou and Bobo-Dioulasso will enjoy special treatment to make them real cities in the sub-region. To this end, the Government will adopt a land tenure framework law to better manage urban land. Real estate development will be enhanced as part of the revitalization of the housing sector while maintaining its social component. Also, in the construction of housing, particular attention will be paid to controlling costs, in accordance with the appropriate mechanisms. Special measures will be taken to improve access to urban services and the upgrading of squatter areas and the rehabilitation of older settlements. The state will set up appropriate structures to develop urban planning as support to councils. Finally, public facilities for grassroots activities will be promoted, according to a grid of community facilities to be developed by the relevant ministerial services. II.3.1.3.6 Support institutions The next five years will be marked by the establishment of an institutional environment conducive to the financing and support of development. This environment will have to rely on the following institutions and structures: (i) financial support institutions (banks and insurance companies, microfinance institutions), (ii) technical support structures (support/counseling), (iii) promotion structures (investment and export promotion), (iv) service or resource centers, (v) training facilities and (v) quality control, outreach, appropriate technologies structures, etc. Furthermore, the Government will work on the emergence, of new professions in the private sector,, such as those of salesmen in charge of delivering orders to businesses and corporate auditors. With regard to the financial sector, the Government has adopted the strategy for the development of the financial sector, with an action plan. The plan aims at strengthening monetary policies, to increase the efficiency of the banking system by improving financial intermediation and access to finance. The big challenge will be the promotion of a diverse range of financial services that addresses the risks of agricultural development and the micro-business fabric. To enable the banking and financial system to play a more active role in achieving strong and sustainable growth in the coming years, the following key guidelines will be followed: - improve the legal and judicial framework of the financial sector to ensure compliance with financial contracts, the token of security for private investments; - pursue the goal of extension of banking services by 20% by 2015, through the merger of banking services and development of loyalty and security schemes for bank deposits; - promote new financing instruments and tools to encourage the creation and development of SMEs and micro enterprises in rural areas and towns; - set up support structures to assist future developers to prepare their loan files, support their loan applications to banks and help them in terms monitor investment projects and provide advice; - encourage the establishment of merchant or specialist banks (housing, processing industries/handicraft, export, etc.), to develop certain priority sectors such as rural development, diversification of the industrial fabric, export, habitat, etc.   44   A high priority will be given to the development of microfinance as a lever for action to support the poor’s productive activities (agriculture and informal activities in urban areas) through the implementation of the national action plan for the microfinance. Besides the above priority actions, the Government will develop warehouses in major production areas. It also plans to develop logistics and multimodal platforms (particularly in Ouagadougou and Bobo-Dioulasso), to support the export of products (preferably near airports) and to strengthen the dry port of Bobo-Dioulasso and create a dry port in Ouagadougou. II.3.1.4 Promotion of economic integration and foreign trade The current globalization process offers, thanks to foreign trade, access to a wide range of goods, services, technologies and knowledge. However, the highly demanding global market requires states, especially developing ones, to create large economic blocs to tackle the world market collectively. In this perspective, Burkina Faso needs to actively promote economic integration and foreign trade, so as to exploit the opportunities they offer. To this end, the strategy will seek to:  support regional and sub-regional solidarity by participating in the development of transnational infrastructure, contribute to the functioning of institutions of integration and especially to the promotion of peace, security and socio-political stability in the sub-region and region. To this end, it will be necessary to: (i) support the construction of trans-border social and economic infrastructure and amenities and (ii) ensure effective sub-regional economic solidarity mechanisms (community levy, economic program etc.).  ensure compliance with the standards of integration, by continuing and strengthening efforts to meet commitments on the harmonization of policies. It will also have to bring its peers to engage decisively and effectively in building an economic sub-regional space that is sustainable as a framework for the development of national economies. To this end, Burkina will be expected to: (i) promote and respect the concerted measures to facilitate trade and payments, (ii) develop national productive capacity and exchange to make the most of regional integration, (iii) ensure compliance with the standards of convergence in terms of indicators and policies and (iv) ensure compliance with community principles of free movement of goods, persons and capital and the right of establishment within the sub- region;  open up to the rest of the world, by seizing the opportunities offered by regional integration. To this end, the main directions will be as follows: (i) open up prudently and gradually and (ii) implement a strategy to conquer the international market through a phased approach, based on the industrial development of primary products and respect of the standard norms of quality (labeling);  use the natural comparative advantages of the country to develop sectors with potential comparative advantages, by implementing the policy on the promotion of trade, industry and crafts. II.3.2 AXIS 2: CONSOLIDATION OF HUMAN CAPITAL AND PROMOTION OF SOCIAL PROTECTION During the past, significant progress has been made with regard to human capital development and social protection. This dimension remains vital to the country that is initiating a turning point in its development to rank among emerging and prosperous nations. The Government therefore intends to focus on increasing income and employment, development of technical and vocational education, teaching, health (especially women's health), social protection and access to modern energy services. II.3.2.1 Employment and income growth The strong determination of the Government to fight poverty is aimed at job creation to increase incomes and to   45   improve the living conditions of the population, especially by implementing the national policy on employment and youth. During the implementation phase of SCADD, the Government will strive to: - strengthen the contributions of macroeconomic and sectoral policies to create jobs and improve their quality (decent work); - strengthen the dynamics of job creation by using specific instruments that stimulate employment and improve quality; - improve employability, by promoting, on the one hand, access to employment through vocational training and, on the other, the match between training and actual labor market needs; - improve the organization and functioning of the labor market, to better manage it and make it play a more effective role in the access to employment; - strengthen support structures for entrepreneurship, particularly in terms of advisory support and financing; - create an environment conducive to boosting youth potential and increase their professional skills and aptitudes to work efficiently and effectively; - establish a mechanism to curb the migration crisis; - encourage the investment of youth in agriculture. II.3.2.2 Technical and vocational education, teaching and training Education and training contribute to improving the quality of human resources, a prerequisite for building an emerging economy. They also help eliminate social and cultural constraints, predispose recipients to a change in behavior and increase their commitment to development ambitions. The Government's option, for the coming years, will be to implement a bold policy on human resource development. In education, it will have to address the issue of overcrowded classrooms and teachers, gender disparities, technical and vocational education and training and the issue of the schools and universities, in order to promote this strategic area throughout the national territory. To this effect, the broad guidelines adopted include: - increasing the provision of education and training, particularly at the level of higher education, increasing student intake, increasing training capacity in promising sectors and meeting the needs in scientific and technological equipment; - improving the quality of education to address failure in schools at all levels of education, diversifying the types of courses, developing the school to become a school in line with the development of ICT; - developing the university degrees system based on the BMD (Bachelor-Master-Doctorate) system; - the continued creation of universities in the regions and making them centers of excellence; - strengthening university research, particularly by increasing budgetary allocations; strengthening basic vocational training, as a means called upon to meet the needs of the economy for skills and qualifications; - building bridges between education and training systems; - implementation of a simple control system; - making qualified teachers available in all classes; - improving pupil-teacher ratios.   46   Furthermore, pre-school will receive greater attention than before (increased budget allocations), given its role in preparing children to take ownership of the instruments of knowledge. Concerning primary education, appropriate strategies will be initiated in order to achieve good quality universal primary education by 2015. Regarding literacy education, the Government will endeavor to implement its strategy to accelerate the achievement of MDGs. Overall, the education and training system will eventually be able to contribute to improving the production system as a whole and promote democracy. To mark its commitment to support technical and vocational training, the Government has developed a national policy on vocational and technical education and training (PN/TVET) and an initial implementation action plan covering the period 2011-2015. The national policy on vocational and technical education and training assigned itself the mission to contribute to achieving the Government's vision to make Burkina Faso an emerging country. Its implementation will help to provide the country with sufficient and available "qualified expertise in all trades that could enhance the economic potential of the country" and "a critical mass of middle level and high level skills to stimulate economic growth and reduce poverty”. To achieve this, the main thrusts will be on:  implementing a variety of public and private courses and programs for developing skills, targeted to specific audiences and taking into account the multiplicity and complexity of socio-economic situations;  moving from the logic of providing training to that of demand for training, by implementing the skill-based training approach (APC) in partnership with the professional organizations concerned;  implement mechanisms to support employment and self-employment, in line with the employment promotion policy (learning fund, support to microcredit facilities, installation assistance, and creation of business incubators);  establishing frameworks or national systems for recognizing skills acquired formally, non-formally and informally;  undertaking the relevant activities for upgrading professionals in the craft and industrial sector, who may accompany youth to be trained, in accordance with the policy on the promotion of the private sector;  contributing to the training of a sufficient number of rural producers on the one hand, and engineers and technicians, on the other, in accordance with the rural development policy;  establish a sustainable and durable funding mechanism through public/private/PTF co-financing partnerships. II.3.2.3 Health and nutrition The next five years will be strengthened by reinforcing learning and developing effective strategies based on highly effective measures in order to attain the MDGs. These strategies will build on existing ones, so to contribute to crosscutting measures to fight malaria, diseases targeted by expanded immunization programs, malnutrition, chronic diseases, HIV, AIDS and tuberculosis. Furthermore, the goal will be that of strengthening the health system to enable it to obtain the best results possible from investments in health. To do this, the Government will seek to implement its health system reform program. The main guidelines for the next few years are summarized as follows: - development of community-based integrated health services and human resources for health; - increasing the provision of health services, particularly in rural areas, taking into account private providers;   47   - improving the quality of health services and the image of health services; - fighting against transmissible and non transmissible diseases, neglected tropical diseases, emerging and reemerging diseases; - implementation of the Strategic Framework for the Fight against HIV, AIDS and STIs; - capacity building of national drug production, taking into account traditional medicine; - promoting mother and child care; - strengthening the national health information system, including research; - funding health to create conditions conducive to the reform of the health system; - strengthening and improving the maintenance of medical-technical equipment. - Furthermore, initiatives will be undertaken to improve financial accessibility to health care for vulnerable groups. The main axes are: - to support the initiatives for free service with a legal and regulatory framework; - to accompany the service policies with capacity building measures (human resources, medical equipment, staff motivation, etc.); Finally, in order to reduce hunger and disease due to nutritional deficiencies, priority will be given to food security. To this end, it will be necessary to create conditions for sustainable food security by: - increasing the level of domestic food production and value added; strengthening market capacities to allow people access to food; - improving the economic and nutrition conditions of the poor and vulnerable groups; - strengthening the mechanism for preventing and managing economic crises in line with the construction of structural food security; - capacity building of stakeholders and promoting good governance of food security. II.3.2.4 Drinking water and sanitation The implementation of the various reforms set by the national drinking water supply and sanitation program (PN- AEPA) will be intensified in order to improve access by the population to drinking water and sanitation. To this end, the main guidelines of the Government will be as follows: - ensure the overall funding of the PN-AEPA, through the implementation of a strategy to mobilize additional financing; enhance the absorptive capacity of the sector through the implementation of a training plan for councils, the consolidation of small and medium enterprises and the widespread reform of the management of drinking water supply facilities in rural and semi-urban areas; - accelerate the construction of WSS infrastructure by integrating into council development plans, water supply and sanitation, the construction of new water fountains, water towers, private connections and construction of public latrines; - involve councils in the implementation of the PN-AEPA and improve its monitoring and evaluation mechanism; - stimulate demand for improved sanitation in rural areas by disseminating the information, education and communication tools on drinking water and sanitation.   48   II.3.2.5 Promotion of social protection The implementation of a coherent social protection strategy helps to address the basic needs of the population by ensuring universal access to basic social services. It helps to better manage economic risks that lead to a decrease or loss of income or work tools and to cope well with shocks and economic crises. The Government intends to develop and implement a national policy on social protection based on the consolidation of the community solidarity fabric. The development of such a policy framework will help to address the issue and identify the relevant safety net and social insurance programs for better management of target populations. This should serve as a guidance and coordination framework for interventions in this area. In any case, the Government will give prominence to the following priority actions: - review the coverage, impact, cost and targeting of existing programs in order to consolidate and strengthen the various systems in place; - build a social floor to achieve universal access to cash transfers and basic social services; - organize a national consultation with all stakeholders on the issue of social protection and better mechanisms for national solidarity in order to produce a clear new policy with a temporal vision to promote viable and sustainable systems; - adopt and implement a national mechanism for social protection; - develop national solidarity financial mechanisms and facilities through a national fund. This facility will be used primarily to assist vulnerable groups and socio-specific groups in case of an emergency or disaster; - establish a special scheme for the poorest (indigents); - establish a national health insurance scheme; - ensure access of the poor to basic social services; - establish a better targeted income redistribution policy by using social safety net techniques for the poor or for people vulnerable to poverty and shocks. II.3.2.6 Access to modern energy services In order to promote access to energy services for the greatest number of people and improve their productive capacity, particular attention will be paid to rural areas where rates of access to energy are generally very low, less than 1%. The approach is based on the logic of impact, with communities having high economic dynamism and influence extending beyond their own territories taken as the gateway. In terms of access to modern energy services, the work here will be to: (i) connect a majority of the population to the electric network, (ii) install power stations in major centers outside the network, (iii) develop multifunctional platforms with small networks providing access to energy for sparsely populated communities and (iv) use the photo-voltaic system for people in low density areas. II.3.3 AXIS 3: STRENGTHENING GOVERNANCE II.3.3.1Strengthening of economic governance II.3.3.1.1 Strengthening the capacities for steering and managing the economy II.3.3.1.1.1 Steering capabilities The country is in the process of taking ownership of the results of the "Burkina 2025" strategic study. A national   49   economic forecasting monitoring unit was created to propose any measures likely to foster the emergence of a more favorable scenario or, failing this, measures to prevent any drift that could lead to a less optimistic scenario. The integrated framework of this study was completed by taking into account the dimensions of "Planning" and "Population". Indeed, the National Population Policy (PNP) has been revised to take into account institutional developments and the need for better management of demographic transition. The National Scheme for Regional Planning (SNAT) is also being developed. As concerns the strengthening of capacities of development monitoring, the Government's priority actions will consist of: - using a forward-looking approach to identify sectoral and thematic problems to better understand and develop endogenous capabilities for anticipation, particularly in the areas of education, given its weight in the determination of the human development index, and mines, for its current expansion and remaining potential; - the effective implementation of the communication plan for economic forecasting; - rendering operational the vision "Burkina 2025" in the areas of population and regional planning . II.3.3.1.1.2 Management of the economy  Operational management As concerns operational planning, the Government has clearly opted over the past five years to provide each ministry with a policy or sector strategy with a view to implementing full program budgeting. Thus, a guide for developing sectoral policies has been developed. Some ministries have received support for the formulation of their policy. Over the next few years, the trend will be to: - continue this support to provide all ministries with sector policies; - systematize the program budget in all ministries.  Day to day management In recent years the Government has been working to promote the culture of results-oriented management. It intends to continue this momentum during the next few years. To do this, it will see to: - the participation, consultation and involvement of all stakeholders in its work; - the implementation of technical, legal and regulatory frameworks, particularly plans and programs, procedures, regulations and standards of modern and efficient management; - the streamlining of decision making: monitoring decisions, adoption of efficient organizational forms, development of centers of excellence, partnership with other stakeholders, accountability and implementation of an efficient management system; - the evaluation, monitoring, rendering of accounts at all levels: development of appropriate tools (audit, dashboards, observatory, control); - the further strengthening of the results-oriented management (MOR) of public enterprises with the   50   creation of the Inter-ministerial Committee for selecting candidates for the post of director general of public institutions and companies with state majority shares. Henceforth, appointments to such positions will take place following a selection procedure, accompanied by a performance contract; - the streamlining of project and program management units. Furthermore, the current management of the economy will be further characterized in the coming years by a rigorous and transparent management of public resources, and by the pursuit of efficiency in the use of ODA. II.3.3.1.2 Control of public finances, the fight against corruption, fraud and forgery The objective is to promote the values of discipline, probity, transparency and efficiency in managing public affairs. This should result in improved management of public finances, the fight against fraud, forgery and corruption, and better monitoring of the recommendations of inspection bodies.  Administrative control In terms of internal control, the Government intends to continue the momentum by developing: (i) the control of management or monitoring (take stock of the progress of activities and the rendering of accounts, examine the progress of activities and take appropriate action) (ii) audits (ensuring that the running of services is in keeping with the rules and procedures) and (iii) inspections (monitoring compliance with financial, administrative procedures with the obligation to follow recommendations). To these forms of internal control will be added assessment by way of a performance audit and regularity control. The aim is to increase the number of controls by strengthening control mechanisms, as well as instrumentation such as the development of the mercurial.  External control Judicial control and parliamentary scrutiny will be given special attention. Moreover, the option taken towards strengthening a posteriori control will be pursued through greater use of external audits.  The fight against fraud, forgery and corruption In light of the disastrous consequences of fraud, forgery and corruption on the economy and public finances, the overall strategy for the fight against fraud and its action plan will be implemented. Furthermore, the Government will continue its control activities. To this end, the activities of technical inspectorates will be intensified. The national fund for the fight against fraud is being created and will become operational to give players the necessary resources to carry out the fight against this scourge. I.3.3.1.3 Strengthening the coordination and effectiveness of official development assistance The lack of coordination of the multitude of donors in the implementation of ODA is a constraint in the implementation of various projects and programs. This absence of coordination, combined with the plethora of projects and programs management units, the multitude of management procedures and weak monitoring and evaluation system, negatively affect the effectiveness of ODA. To make ODA more effective, the Government intends to continue efforts made in the implementation of the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action, through PANEA. To do this, ownership of development policies will be strengthened, results-oriented management will be undertaken through reforms aimed at efficient management of projects and programs (reforms in the context of general meetings of the projects and programs, development of the function of studies and planning, improvement of monitoring- evaluation). It will also work to improve resource mobilization through the budget support mechanism to ensure greater predictability and resource allocation.   51   II.3.3.2 Strengthening of political governance Accelerated growth and sustainable development are not possible without the establishment of supportive institutions, that is to say institutions guaranteeing political stability and respect for property rights and contracts to encourage individuals to invest and participate in economic life. The implementation of various democratic reforms and the adoption of the National Policy on Good Governance (PNBG), enabled Burkina Faso to lay the foundations for a democratic new deal and help calm the political situation and consolidate the stability of institutions of the Republic. During the coming years, it will strengthen certain values on which several other reforms and measures must be taken, in particular:  deepening the content and scope of national governance, making the separation of the three powers (executive, legislative and judicial) more effective;  constructing a system of responsibility and accountability in all acts of public affairs management;  promoting a climate of trust in justice;  ensuring the effectiveness of human rights through proactive mechanisms and institutions combining promotion and protection;  promoting a spirit of tolerance and peace;  establishing a shared and consensual democratic culture based on mutual values and commitments;  strengthening state capacities and those of other stakeholders, particularly local authorities and civil society organizations;  promoting a credible and accessible justice by accelerating the devolution of judicial administration. II.3.3.3 Strengthening of administrative governance In the area of administrative governance, the main directions include the construction of a development republican administration through administrative reform, via a ten-year strategy to modernize the State and the government management system (sectoral policies, program approach, procedure manuals, audit institutions, public policy evaluation, etc.). This will inter alia include: - the enhancement and strengthening of the State’s human resources by establishing a strategic management of public resources and strengthening the capacities of state resources; - the development of administrative management instruments, tools and methods, with emphasis on the quality of reception accorded to the public and the services rendered; - the placing of ICTs at the service of the administration to make it more efficient and more transparent, through a widespread access to information and the development of online public services; - the promotion of a promising decentralization for local development by creating the necessary conditions for decentralized technical services to have a modern and efficient public administration, at the service of citizens; - the improvement of service to users; - the improvement of the Government information system to make it more efficient and more transparent. II.3.3.4 Consolidation of local governance Local and regional development is a political will that is being increasingly asserted through measures taken by   52   the State, including the development of guidance, policy and strategy documents, to support decentralization and the vision to promote regional development. In this perspective, the SCADD is a tool for articulating regional strategies with public policies and mobilizing local energies to promote accelerated growth at the national level. Thus, national options will be in synergy with local initiatives in a coherent and converging intervention framework involving the active forces of our society in the implementation of the joint ambitions of the country. During the coming years, this will entail (i) ensuring a successful economic decentralization (creation of genuine regional development poles), (ii) ensuring the effective transfer of powers and resources in all the areas concerned, (iii ) strengthening the capacity of local authorities to manage local affairs (iv) ensuring coherence of local activities with state policies and (v) supporting the development and implementation of local development plans. II.3.4 AXIS 4: TAKING INTO ACCOUNT OF CROSSCUTTING PRIORITIES IN DEVELOPMENT POLICIES AND PROGRAMS Taking into account cross-cutting issues such as gender, population, environment and regional planning is a prerequisite for the successful implementation of the SCADD. These issues need to be constantly present at all levels of dialogue, policies and in the formulation of policies and programs. Manuals will be developed to facilitate the implementation of this guideline. II.3.4.1 Strengthening of programs to reduce gender inequalities The Government adopted a National Gender Policy (NGP) in 2009 with an operational plan for implementation. During the coming years, the Government will seek to (i) improve access and control in an equal and fair manner, by all Burkina Faso citizens, men and women, to basic social services, (ii) promote equal rights and opportunities for women and men as concerns access to and control of resources and the equitable sharing of revenues, (iii) improve equal access by men and women to decision-making, (iv) promote the institutionalization of gender by integrating it into systems for planning, budgeting and implementation of policies at all levels, (v) promote respect for human rights and the elimination of violence, (vi) promote gender for a change in behavior in favor of equality between men and women in all spheres of socioeconomic life, and (vii) develop an active partnership for gender in Burkina Faso. II.3.4.2 Strengthening programs to control population growth Population issues are very important in economic development. The connection between this issue and the development goals will help accelerate growth for sustainable development. The population issue will be addressed in terms of controlling population growth, capacity building of stakeholders for inclusion of demographic information into policies, development, research, and monitoring and evaluation plans and programs. As part of the implementation of SCADD, advocacy will also be conducted in the ministries and institutions concerned to take into account issues concerning them in particular. The major themes that are consistent with population and development are: migration, urbanization, education and training, environment, drinking water, employment, health, gender, AIDS and other issues subject of international commitments. II.3.4.3 Management of the environment and maximum use of natural resources Sustainable development needs to articulate the elements related to the standard of living, living conditions and the living environment. This requirement must bring all stakeholders to review their mode of action, by adhering to the principle of sustainability. The SCADD should allow for continued efforts to mobilize natural resources as a pillar of agricultural   53   development and control of its use, particularly through an increase in the rate of reforestation, tapping of forest resources and protection of wildlife. During the next five years, it will strengthen programs aimed at: - curbing the degradation of natural resources and the environment; - adapting to climate variability and climate change; - promoting sanitation sectors; - developing the landscape and wildlife; - environmental governance and capacity building; - promoting alternative energies, energy-saving techniques and technologies; - Poverty-Environment Initiative; - promoting environmental education and eco-citizenship; - supporting environmental research. II.3.4.4 Implementation of regional planning policy Regional planning seeks to organize the use of national space and to ensure consistency in the implementation of major infrastructure, equipment and town projects. It is also aimed at providing local governments with a repository framework for developing policies, strategies and development plans. During the coming years, the Government will finalize the national and regional development as well as the sectoral schemes. It will develop the methodological tools and performance contracts for regional and local development, and for regulating the relationship between local authorities and the State. Finally, emphasis will be placed on the promotion of local initiatives, through the organization of local actors around promising activities, under the guidance of SNAT. II.3.4.5 Capacity building Achieving the accelerated growth and sustainable development goals will require the implementation of the National Policy on Capacity Building (PNRC). In this context, the Government will: - strengthen the capacities of public administrations and institutions in the formulation, implementation and monitoring and evaluation of public policies, as well as the improvement of dialogue and consultation; - optimize the use of available human resources, reform and synergizing of development structures and actors in the field; - promote better conditions for successful capacity building; - create the socio-cultural conditions for strengthening competitive entrepreneurial capacity; - strengthen the technical and management capacities of the informal sector by adapting training to its needs; - strengthen know-how and the acquisition of new skills and new behaviors to improve the productivity of   54   microenterprises in the informal sector. II.3.4.6 Economic intelligence The State plans to promote economic intelligence in order to have relevant information for understanding and anticipating the national and international economic situation, and identifying opportunities for access to new markets through innovation and creativity. During the period 2011-2015, the poles of economic intelligence for the administration and the private sector will center respectively around public services and employers. To consolidate its economic function of authorizing and regulating political and social life, the State intends to promote: (i) business and technological intelligence, (ii) the management of industrial property, (iii) the protection of knowledge and economic security and (iv) the management and use of knowledge and information. This will enable Government to have adequate tools for predicting and anticipating the future. The areas to be given preference particularly concern science and the industrial, technological and medical production processes.   55   III. IMPLEMENTATION STRATEGY       The strategy that Burkina Faso intends to implement is based on a harmonious relationship between measures organized around four themes that are complementary to boost growth and reduce poverty. Indeed, achieving the desired growth acceleration requires, in particular, a transformation of the productive sector, improvements of human capital and a favorable institutional environment. To achieve this, it will be necessary to define the conditions for accelerating growth, the financing scheme as well as the modalities of implementation. III.1 GROWTH ACCELERATION PREREQUISITES The evaluation of the implementation of the PRSP, during the past decade, has highlighted the importance of reforms and efforts to improve the performance of the economy and consolidate social gains. However, the economy's vulnerability to external shocks and the highly variable growth trend have emerged as key issues that need to be addressed during the next five years. The realization of this approach requires the adoption of strategies aimed at consolidating the economy’s fundamentals. Similarly, this approach requires improving the productivity of investment (especially public) and the strengthening of mechanisms, structures, and incentives for the private sector. Lastly, it requires ensuring adequate financing of the economy through the mobilization of appropriate resources, both from technical and financial partners, the private sector and the financial market. The chosen approach to strengthen the fundamentals of the economy and accelerate economic growth is dependent on macroeconomic stability, strengthening the external position and debt policy, and improving the business climate. III.1.1 STABILIZATION OF MACROECONOMIC FRAMEWORK The stability of the macroeconomic framework is necessary to strengthen prospects for accelerating growth and reducing poverty. To this end, it will be necessary to ensure the sustainability of public finances, strengthen the external position and debt sustainability, over the period 2011–2015. The sustainability of public finances requires increased revenue, public expenditure control and better resource allocation, to reduce deficits. In addition, the prudent management of public finances, the reduction of cash flow pressures, and avoid slippages that could weaken its balance, require ensuring the efficiency and capacity of expenditure and procurement circuits, improving procedures for budget execution, and monitoring cash flow. As concerns strengthening the external position, this involves strengthening exports, through gold and cotton, and diversifying export commodities. All of these are the prerequisites for reducing the vulnerability of the economy and accelerating growth. As regards the external debt, the country‘s debt policy and strategy needs to remain cautious while giving priority to concessional loans. Furthermore, increased computerization, training of debt management executives, improvement of database quality and the establishment of an integrated external funding management system should strengthen the capacity for managing the country's external debt. III.1.2 STRUCTURAL REFORMS AND IMPROVEMENT OF BUSINESS CLIMATE Structural reforms and improving the business climate are necessary for accelerated growth. As regards structural reforms, Government will have to seek to: - the pursuit of the modernization of public administration to strengthen the wage policy and the quality of administrative services ;   57   - the pursuit of the implementation of the strategy for the development of the financial sector; - the pursuit of the reform and consolidation of sectors, particularly the restructuring of the cotton sector (financing of inputs and smoothing funding mechanism). With regard to improving the business climate, this will involve: - the elimination of bottlenecks in the area of land tenure, by improving the corresponding legal and regulatory frameworks; - the consolidation of achievements in simplifying administrative procedures and reducing their cost; - the adaptation and modernization of the support and advisory capacities of state structures, and the instruments for promoting private investment; - the accompanying of institutional, technical and financial changes in the informal sector; - the development of domestic private capital; - the operationalization of commercial courts, especially those of Ouagadougou and Bobo-Dioulasso; - the establishment of a one-stop window for foreign trade; - the operationalization of the National Agency for Investment Promotion . III.2 ACCELERATED GROWTH SCHEME The SCADD aims at a strong and sustained growth over the period 2011-2015. In 2011, the growth rate is expected to be 8.5% and should grow over the period to 10.8% in 2015. This growth will be the result of the evolution of: (i) the real sector, (ii) prices, (iii) domestic demand, (iv) the external account, (v) credit and (vi) public finance. III.2.1 EVOLUTION OF THE REAL SECTOR Growth will be fueled by in particular a good performance of the agricultural, livestock and mining sectors as well as the buoyancy of the services sector, through the modernization of production, improvement of the competitiveness and productivity of the economy, and the diversification of activities. In the primary sector, improving yields and productivity will lead to an average growth of value added by 10.7%, thanks to a good rainfall and especially the strengthening of strategies on (i) water control, (ii) subsidies for agricultural inputs, (iii) technical supervision of producers, (iv) support to agricultural research for the development and introduction of adapted varieties and (v) access of producers to agricultural mechanization and credit. In the livestock sub-sector, average growth will increase to 4% between 2011 and 2015. This increase will be attributable to genetic improvement through artificial insemination and the start of actions such as: (i) launching of the manufacture plant for animal feed, (ii) construction of two large dairies in Ouagadougou and Bobo-Dioulasso and (iii) creating a company for the production of "day-old chicks" to improve egg production. In the secondary sector, the favorable trend of world prices for mining products such as gold, zinc, copper and   58   manganese, combined with the industries’ production, will result in an 11.8% increase in the average annual value added. This increase will be attributable to the extractive industries and the buoyancy of the construction sub-sector. As for the tertiary sector, the sector will experience an annual growth rate of 12.5%. This development will be supported by the expected buoyancy of market services and will be mainly driven by trade, financial services and ICTs, as well as by tourism, culture and related activities boosted by the strengthening of the reputation of the tourist destination Burkina Faso. Table No. 7 below, shows the expected trend of growth in the sectors and GDP. Table 7 : Expected growth trend in the sectors and GDP. Years 2010 2011 2012 2013 2014 2015 proj proj proj proj proj proj Primary sector 4,3 5.5 7.5 12.5 13.2 1.7 Secondary sector 11 11.3 11.7 11.9 12.1 12.2 Tertiary sector 5.2 8.7 9.7 13.6 14.5 15.6 Real growth rate 5.2 8.5 9.8 10.4 10.7 10.8 Source : IAP October 2010 III.2.2 PRICE EVOLUTION Good agricultural production, coupled with measures by the Government to regulate and control the price margins of basic consumer products, will help keep inflation below the WAEMU community norm. Thus, the average inflation rate will be about 2.9%, supported also by the expected stability of the price of a barrel of oil and the dollar. Controlling inflation will encourage investment and consumption, thus contributing to faster growth.   59   III.2.3 DOMESTIC DEMAND TREND The average growth of 10.04% of GDP will be driven mainly by private investments which will grow at an average annual rate of 17.5%, and by private final consumption, which contribution to growth will average 2.52 percentage points. III.2.4 4 EVOLUTION OF THE MONEY AND CREDIT SECTOR Credit to the economy will progress positively over the period of implementation of the SCADD to accommodate the expected level of economic activity. Indeed, the outstanding credit to the private sector would average CFA francs 1 040 billion per year. It is expected to increase by 10.6% on the average, per year, which will allow to finance investments to stimulate growth. . III.2.5 TRENDS OF PUBLIC FINANCES In the area of public finance, efforts to enhance the mobilization of fiscal potential and external financings, combined with actions to restrain public spending will help contain the basic fiscal deficit at 4% of GDP on average. Based on the assumption of good economic performance during the period, the projected financial operations of the State are expected to move towards the WAEMU convergence norms. Indeed, total revenues and grants will increase on average by 13.18%. The ratio of tax revenue to GDP ratio will rise from 11.6% on average over the period 2000-2010 to 15.7% between 2011 and 2015. The implementation of various programs under the SCADD will result in a sustained increase in total overall expenditure, especially capital spending, which will rise on average by 14% per annum over the period. The development and investment program would lead to a significant surge in operating expenses. However, the policy to rationalize public expenditure will help control the increase in current expenditure, which, with an average annual growth of 7%, will grow less rapidly than resources. Overall, expenditure and net lending will represent about 23% of nominal GDP. All these will provide more fiscal space for the financing of public investments needed to accelerate growth. III.2.6 EVOLUTION OF THE EXTERNAL ACCOUNT Increased exports will help to contain the trade deficit on average around 4.8% of GDP against 7.2% in 2010. This development will come mainly from increases in exports of cotton fiber, non-monetary gold, and livestock products and other agricultural products. Besides the expected buoyancy of the traditional export sectors, notably cotton and especially non-monetary gold, this improvement will also depend on the prospects for diversification of the basis of exportable products. Import demand will also increase over the period, to provide the country with the necessary energy (petroleum products, electricity, etc.) and satisfy the needs for capital goods. III.3 FUNDING SCHEME The results of the macroeconomic and budget frameworks show a budget and an estimated funding plan that should support accelerated growth and sustainable development. Over the period 2011–2015, the targeted average annual growth rate will be 10.04%. The overall cost of implementation of the strategy is estimated at CFAF 7,496.2 billion (excluding debt service charges), or an average annual cost of CFAF 1,499.24 billion compared to an average domestic annual financing capacity of CFAF 949.48 billion. The overall cost of investments stands at CFAF 4,238.5 billion (56.5%), or CFA F 847.7 billion per year for the   60   period 2011–2015. As for operating expenses, they have been estimated at CFAF 3,258.7 billion or CFAF 651.54 billion per year, representing 43.5% of the cost of financing the SCADD. The funding of the strategy will be covered by 63.3% by the budget's domestic resources and 34.5% by external resources. This shows an additional gap estimated at 2.2% of the overall cost of the strategy. This gap will be covered by the mobilization of domestic and sub-regional savings including that of Burkinabè emigrants, through the issuance of government securities (bonds) and the mechanism of public-private partnerships.   61   Table 8: SCADD estimated funding scheme for 2011–2015 (in CFA F billion) TITLE 2011 2012 2013 2014 2015 TOTAL MOY 1 499.24 Program cost excluding debt, including net 1 223.60 1 379.90 1 470.50 1 610.70 1 811. 50 7 496.20 loans (A) Operating expenses 585.2 619.2 643.1 677.5 732.7 3 257.70 651.54 Capital expenditure 638.4 760.7 827.4 933.2 1 078.80 4 238.50 847.70 Including domestic resources 285.,7 333.,9 385.,8 415.2 450.,4 1 871.,00 374.20 Funding from domestic resources (B) 740 822.4 918.5 1 045.30 1 221.20 4 747.40 949.48 Borrowing needs (C= B-A) -483.60 -557.50 -552.00 -605.40 -680.30 -2 878 .80 -575.76 External financing (D) 430.2 529.9 529.9 544.9 554.9 2 589.80 517.96 Investments (grants and project loans) 305.9 405.6 405.6 420.6 430.6 1968.3 393.66 Other financing (including MCA) 0 60.6 60.6 60.6 60.6 242.4 48.48 Budget support 124.3 124.3 124.3 124.3 124.3 621.5 124.30 Additional gap (C+D) -53.40 -27.60 -22.10 -60.50 -125.40 -289.00 -57.80 Source : IAP, October 2010 External resources will be mobilized from both traditional and emerging bilateral and multilateral partners. As regards external financing, Burkina Faso will give preference to a prudent debt strategy by increased-grants mobilization for funding social sectors, including, amongst others, education and health. Public Private Partnerships (PPP) will be a valuable tool for mobilizing resources to fund the promotion of growth poles and development of the agricultural, mining, infrastructure, tourism, handicraft, and industry sectors and SMEs / SMIs. Other forms of innovative financing such as issuing Treasury bills and bonds on the regional financial market will also be used. Loans should be contracted on concessional terms and oriented towards productive sectors and infrastructure. The volume of loans should be in line with debt sustainability. Loans granted under very soft and flexible terms will be given preference in financing the strategy. III.4 STRATEGY IMPLEMENTATION Two main tools will be developed at national level for monitoring and evaluating the SCADD, in consistency with the process for preparing the state budget: (i) a performance matrix for the implementation of the SCADD and (ii) an annual performance report on the implementation of the SCADD.   62   At the sectoral level, the SCADD will rely on the procedures developed in each sector (ministry’s department), including: (i) the policy action plans / sectoral strategies with their results framework for monitoring performance at sectoral level, (ii) the review report at sectoral level, which evaluates annual progress. III.4.1 GOVERNMENT PERFORMANCE MATRIX The Government's performance matrix will be developed in parallel with the process of preparing the state budget to be used in (i) negotiations with parliament, (ii) the dialogue with technical and financial partners It will be developed per year (n) to cover a rolling three-year period (n +1) to (n +3) and will be annexed to the draft budget to be submitted to parliament for consideration and adoption. As an instrument of negotiation with parliament and dialogue with technical and financial partners, it will include both measures for strategy reform to be taken by the Government in key sectors of the SCADD and indicators for measuring progress in the implementation of the country’s development policy. This matrix, which measures the Government’s performance, will be simple, to take into account key reform measures in a limited number (30 measures at the maximum), covering the SCADD’s axis and key sectors. The indicators will also be in a limited number (30 indicators at the maximum for the Government and 10 indicators at the maximum for donors). III.4.2 ANNUAL PERFORMANCE REPORT For the annual assessment of government performance in implementing the SCADD at year (n-1), a performance report based on the matrix will be developed and discussed at the annual review. The report validated by the Government will be attached to the budget execution bill for year (n-1) for consideration by Parliament. It is prepared on the basis of reports on sector reviews, particularly on SCADD priority sectors. To this end, it will be essential to develop sectoral and global reporting manuals with standard frameworks for the preparation of the various reports. Given that the performance matrix provides impact indicators, these indicators will be evaluated every three years by an independent expert to fuel the dialogue on the effectiveness of the policies supported under the SCADD. III.5 MONITORING AND EVALUATION STRATEGY III.5.1 INSTITUTIONAL ARRANGEMENTS The institutional arrangements for monitoring and evaluating the SCADD come from lessons learned from the PRSP mechanism. They highlight on the one hand, decentralization as a promising vector for participatory development through effective communalization which has given local authorities a key role in the implementation of the SCADD and the related sectoral policies and, on the other, the concern for the implementation of program budgets that will introduce a new dynamic in the planning, implementation and evaluation of development actions, and the allocation of resources. It will be the mechanism for coordinating and supervising the implementation of the SCADD. It includes on the one hand, the institutions responsible for fostering the frameworks for dialogue between the various development actors and, on the other hand, the structures that constitute the dialogue frameworks. In addition to these institutions and structures, there are plans for political dialogue at high levels. Their results will fuel the work of the institutional arrangements for monitoring and evaluating the SCADD. III.5.1.1 The institutions The institutional arrangements include the following components: (i) the Council of Ministers, (ii) the National Steering Committee of the SCADD (CNP / SCADD), (iii) the National Technical Secretariat of SCADD (STN /   63   SCADD), (iv) Sectoral Dialogue Frameworks (CSD) and (v) Regional Consultation Frameworks (CCR). III.5.1.1.1 Council of Ministers The Council of Ministers is the body that lays down the guidelines for economic and social development policies. As such, it will be responsible for (i) defining the development priorities included in the SCADD for the coming years and reviewing the actions taken, (ii) deciding on the allocation of resources based on set priorities and (iii) adopting the performance matrix and the annual performance report that are attached respectively to the draft budget and the budget execution bill for submission to Parliament for consideration and adoption. III.5.1.1.2 National Steering Committee of the SCADD The mission of the National Steering Committee of the SCADD is to (i) supervise the implementation of the SCADD through monitoring and evaluation of measures selected in the various priority areas, (ii) give the necessary directives to the various stakeholders, particularly ministerial sectors, for the conduct of their actions and the production of the various reports needed to assess their impact, (iii) validate the annual work program and decide on studies of a general or specific character needed for furthering the elements of the strategy and (iv) ensuring the smooth running of the entire process of monitoring and assessment of the SCADD. The National Steering Committee of the SCADD consists of all the key development actors that are the state (government and local authorities), civil society organizations (OSC), the private sector, and technical and financial partners. III.5.1.1.3 National technical secretariat of SCADD The National Technical Secretariat of SCADD (STN / SCADD) is the administrative and technical outreach body of the institutional arrangements for monitoring and evaluating the SCADD. It assists the National Steering Committee and other national frameworks for dialogue during their missions. The STN / SCADD is responsible for the secretariat work of the national steering committee. III.5.1.1.4 Sectoral dialogue frameworks Sectoral Dialogue Frameworks (CSD) are made up of arrangements for steering sectoral policies and strategies. They rely on the existing organizational arrangements and bring together all the actors in the sector (central and decentralized public entities, private sector, civil society, technical and financial partners). They supervise the implementation of sectoral policies and strategies. They define the priority order of actions to carry out during the coming triennium, to address the major challenges facing the sector, review and adopt the results of sectoral action plans for year n-1, impact evaluation reports (produced every three years), the sectoral action plans for years n +1 to n +3 and the sectoral Medium Term Expenditure Frameworks (MTEF) for the same period, ensuring consistency with set priorities. III.5.1.1.5 Regional consultation frameworks The duties of regional frameworks for dialogue (CRD) are carried out by regional consultation frameworks (CCR). They appraise the relevance of the actions planned by local actors, their consistency with the objectives of the SCADD and assess their performance. . III.5.1.2 Bodies The institutional arrangements for monitoring and evaluating the SCADD are as follows: (i) the annual review of the SCADD, (ii) sectoral reviews and (iii) regional reviews.   64   III.5.1.2.1 Annual review of SCADD The annual review of the SCADD represents the regular session of CNP / SCADD. During this annual review, CNP / SCADD examines and approves the draft performance reports for the year n-1, the impact evaluation report, which is produced at least every three years, and the draft performance matrix for the years n +1 to n +3. It ensures the consistency of sectoral breakdown of MTEF budgets for year n +1 with the priorities set for the sectors. These priorities that are included in the performance matrix, serve as repository for developing the MTEF of year n +2. III.5.1.2.2 Sectoral reviews Sector reviews represent CSD sessions. They are held twice a year and their reports are used for the annual review of the SCADD. They include a mid-term sectoral review and an annual sectoral review. During the mid-term sectoral review, the CSD examines the mid-term results of year n, the actions to correct weaknesses in the implementation of the action plan and set priorities for the next three years. During the annual sectoral review, the CSD examines in particular and in detail the results of the sectoral action plan for year n-1, the impact evaluation report produced at least every three years, the sectoral action plans for years n +1 to n +3 and the sectoral MTEF for the same period. Sector reviews should incorporate the issues of aid effectiveness. III.5.1.2.3 Regional reviews CCR sessions hold as regional reviews. They are used to validate the actions of regional development plans consistent with SCADD priorities and take stock of their implementation. Like the sectoral reviews, at least two sessions are held during the year and their validated reports are used for the annual review of the SCADD. During the mid-term session, the CCR reviews the mid-term achievements of year n, the actions to correct weaknesses in the implementation of regional action plan and set priorities for the regional action plan over the next three years. The CCR, during its annual session, reviews the results of the regional action plan for year n-1, the impact evaluation report produced at least every three years and the regional action plan for years n + 1 to n +3. III.5.1.3 High level political dialogue High-level political dialogues are annual frameworks for consultation between the Government and other development partners. They are advisory in nature and include, in particular, meetings between (i) the Government and the private sector, (ii) the Government and civil society organizations, (iii) the Government and the local government and (iv) the Government and Technical and Financial Partners. They are chaired by the Prime Minister, assisted by members of Government concerned with the topics on the agenda. They operate in accordance with their respective creative texts. The diagram below illustrates the institutional arrangements for the implementation of the SCADD.   65   Institutional arrangements for implementation of SCADD Council of ministers High level political dialogue (Gov-PTF; Gov- OSC; Gov-SP; Gov-CT) Annual review of National steering committee of SCADD (CNP/SCADD) Regional reviews  Sectoral review National Technical Secretariat of SCADD (STN/SCADD) Regional consultation Sectoral dialogue frameworks (CCR) frameworks Ministries Regional councils National statistics information system SP= Private sector, CT=Local authorities III.5.2 CONSOLIDATION OF EXISTING MONITORING AND EVALUATION SYSTEMS In light of the means needed, the State alone cannot adequately implement the SCADD. It will therefore proceed by means of an active multi-stakeholder partnership. Those to be involved will be companies, universities and training centers, the government, local governments, the private sector, financing institutions, and the population. This will entail boosting cooperation between these actors around innovative projects that create value added for members of the value chains. This strategy is also an opportunity to upscale decentralization by making local authorities responsible for matters under their competence and within their reach. It would also be necessary to further specify the division of roles between the State, the private sector and civil society under the leadership of the State. It would be necessary to establish the conditions for broad participation of the population, as the SCADD is an opportunity to create a real development dynamic in which producers improve their productivity and share in the benefits of growth. Improving the production of information will be continued by consolidating and strengthening existing surveys and information from the day-to-day management of government services, such as those produced by the Ministry of Basic and Literacy Education, the Ministry of Health, the Ministry of Youth and Employment, the Ministry of Territorial Administration and Decentralization, the Ministry of Agriculture, Water and Fishery Resources, etc. .   66   The efforts to make will also aim at identifying and carrying out new surveys that can improve knowledge of the priority areas of the SCADD. All these actions for generating information will be channeled through a minimum statistics program necessary for accelerating growth and sustainable development. Furthermore, implementation and impact evaluation indicators will become increasingly important over the coming years. That is why a service will be specifically designated to coordinate the work necessary for: - ensuring the availability and reliability of the identified indicators; - developing new indicators needed for extending the monitoring and evaluation of results to all the axes of the strategy. III.5.3 DEVELOPMENT OF THE PRODUCTION OF INFORMATION NEEDED FOR DETERMINING STRATEGY CHOICES AND MONITORING PROGRAMS In addition to aspects related to the organization of information production and specific actions for implementation and impact indicators, priority will be given to the following activities: - full surveys on household living conditions (EICVM) ; - population and health surveys (EDS) ; - general agricultural census (RGA) ; - the regular production of national economic accounts; - production of social performance indicators; - regular production of sector statistics. III.5.4 IMPLEMENTATION OF A COMMUNICATION STRATEGY An active communication on the SCADD will promote ownership by the people of Burkina Faso and the country’s development partners. The core target of this communication will be local, regional and national decision makers. The secondary target groups will include: (i) central and devolved government services, (ii) parties and political groups, (iii) local authorities, the civil society and the private sector, (iv) communication and media professionals, (v) researchers, (vi) youth, (vii) technical and financial partners, (viii) opinion leaders and traditional and religious authorities, (ix) grassroots communities in the rural and urban areas and (x) the Burkinabè diaspora. Communication on the SCADD will be through: (i) the strengthening of mass communication and ICTs, (ii) the use of the institutional channel, and (iii) the development of traditional communication channels. Preference will be given to the use of national languages through media and local communication programs.   67   IV. RISK ANALYSIS     The implementation of the SCADD is facing risks that could impede the orderly development aimed for by the Government. The Government will mainly seek to carry out consistent and synergistic measures as a springboard for positive changes of the economic and social structures. The SCADD’s goal is to conciliate growth aspects and sustainable development in the current context of globalization. This will require a proactive and innovative approach. However, the SCADD may encounter obstacles that would reduce its effectiveness. The main risks associated with the implementation of the SCADD are fourfold: a financial risk, the risk related to natural disasters, the risk due to low adhesion by actors, and the risk due to the global and regional economic situation. IV.1 FINANCIAL RISK The SCADD’s funding includes external and domestic contributions respectively in the order of 34.5% and 63.3% of the total cost of its implementation between 2011 and 2015. Other contributions are estimated at 2, 2%. There is currently a decline in aid flows to developing countries, especially those in Africa. Reversing this trend is not foreseeable in the immediate future. Furthermore, despite the effort for more aid effectiveness, the procedures for mobilizing external resources are still quite heavy. In addition, the ability of Burkina Faso to mobilize domestic resources is low, compared to the WAEMU standard. The regional financial market is very competitive, whereas the country, by virtue of its debt position, cannot offer competitive interest rates, which is likely to worsen its financial situation. All these are real risks as regards obtaining the financial resources essential for the success of the SCADD. IV.2 RISK LINKED TO NATURAL CONDITIONS Global warming and climate variability are realities; the September 1 floods are a clear illustration of this. As things stand, agricultural activity, which occupies nearly 80% of the total labor force is highly dependent on weather conditions. At the same time, the proposed adjustment programs have been receiving very little funding, and producers have not been very responsive to the new methods of intensive farming (use of fertilizers and improved seeds, mechanization), while proper irrigation is still a concern. All these factors increase the risk from weather conditions . IV.3 RISK LINKED TO LOW ADHESION BY ACTORS Like the PRSP, the SCADD needs to secure the support of all actors involved in the country’s development process. The chances of successful implementation of this strategy will depend on the ability and willingness of all stakeholders to act in a concerted manner and with greater synergy at all levels. To encourage discussions and synergy of action, the Government has put in place an institutional mechanism. The smooth operation of this mechanism will hinge upon the level of ownership by each of the players, compliance with the different schedules, and means at its disposal. An efficient collection and treatment of reliable information, swift submitting of data to partner organizations, and their quick reaction are all factors that are crucial for an effective collaboration. Unfortunately, the Burkinabè administration still suffers from red tape and staff low capacity and mobility. In sum, lack of ownership and proper management, and the low quality and efficiency of the administration are risks that may hinder the coordination of strategic measures and the effective implementation of the SCADD. . IV.4 RISK DUE TO THE INTERNATIONAL AND REGIONAL ECONOMIC SITUATION Like all countries, Burkina Faso has an economy that is open to the rest of the world, on which depends the export and import of goods that are essential for its development. In addition, the country is heavily dependent on aid and foreign capital to finance its investment. Thus, during the past decade, Burkina Faso was hit in all social   69     and economic sectors by the international crises (food, energy, financial and economic), which weakened its economy, by notably causing, inflationary pressures on certain products such as petroleum and food products, and reducing the scope of the State to mobilize resources for financing investment. In addition, the large number of Burkinabè living abroad, particularly in Côte d'Ivoire, supports through their transfers to the national consumption. Moreover, Burkina Faso, a hinterland country, depends heavily on coastal countries of the sub-region for its supplies and exports. Consequently, the Ivorian political and military crises that led to the massive return of Burkinabè emigrants have had a severe impact on remittances from immigrants, and on the country’s supplies and exports. It is thus clear that the turbulent international and regional environments, particularly those of the sub-region, constitute major risks that could affect the strategic choices for the country’s development and thus hinder a successful implementation of the SCADD.   70     ANNEX   71     ANNEXE 1 : STATUS OF REPOSITORY OF SOCIO-ECONOMIC INDICATORS Genera Area 274 200 km2 Official language French Neighboring countries Niger, Benin, Togo, Ghana, Côte d’Ivoire and Mali Average altitude : 400 meters Relief Highest summit : Ténakourou (747 meters) Lowest points : Mouhoun valley, Pendjari valley and Nakambé valley Hydrography Main rivers : Mouhoun, Nazinon and Nakambé Tropical climate of the Soudano-Sahelian type with two very contrasting seasons: a very Climate short rainy season, of 3 to 4 months (June to September) and a dry season of 8 to 9 months (October to June) 13 regions 45 provinces Administrative divisions 351 councils Over 8 000 villages Gold, cotton, live animals, leather and skins, shea nuts and oleaginous plants, fruits and Main export products vegetables Main products imported Petroleum products, foodstuffs, machinery, transport equipment, chemicals, iron, cement European Union, West Africa, Singapore, Japan, United States of America, Rep. of China, Main export markets India and Canada Population (RGPH 2006) Population in 2006 14 017 262 Women (number) 7 248 523 Men (number) 6 768 739 Urban (%) 22,7 Rural (%) 77 Population growth rate (%) 3.10 Fertility index (number of children per woman) 6.2 Life expectancy at birth (in years) 56.7 Population density (inhabitants/km2) 55.52 Estimated population in 2010 (number) 15 730 977 Women (number) 8 140 844 Men (number) 7 590 133 Agriculture Land use in 2006 Crops (ha) 4 105 069 Irrigated cultivation (ha) 21 262 Highway infrastructure (2009) National roads (km) 6 697 .50 Paved roads (km) 3 107.30 Dirt roads (km) 2 510.09 Total roads (km) 15 272 Railways (km) 625 International airports (number) 02 ICT Main telephone lines June 30, 2009 (number) 151 206 Subscribers to a mobile phone service at June 30, 2009 (number) 3 729 077 Fixed telephone density (telephone per 100 inhabitants) 1,01 Mobile telephone density (telephone per 100 inhabitants) 25.02 Overall telephone density (telephone per 100 inhabitants) 26.04 Fixed and mobile telephones at June 30, 2009 (number) 3 880 283   72     Internet users in 2008 (number) 19 684 (1,32 pour 1000 habitants) Energy Electricity production in 2009 (kwh) 844 389 151 Local thermal source (%) 67.2 Hydroelectric source (%) 15.66 Imports (%) 17.12 Average cost per KWH (CFA F) 134.28 Electrified localities (number) 104 Electrification rate (%) 13.46 Urban areas (%) 42.48 Rural areas (%) 1.01 Coverage rate (%) 40 Urban areas (%) 100 Rural areas (%) 20 Health Birth rate in 2006 (0/00) ) 46 Mortality rate in 2006 (0/00) 11.80 Infant mortality rate in 2003 (0/00) 81 Maternal mortality rate in 2003 (per 100 000 live births) 458 Seroprevalence rate of HIV/AIDS in 2009 (%) 1.6 Average theoretical radius of action in 2009 (km) 7.5 Drinking water and Sanitation Access to drinking water in 2009 (%) 81.20 Urban areas (%) 72.00 Rural areas (%) 56.63 Rate of access to sanitation in 2007 (%) 19.00 Education Gross preschool rate (%) 2.80 Gross enrolment rate (2009/2010) Primary school, 6-11 years age group (%) 76 Post-primary school, 12-15 years age group (%) 29.7 Primary school completion rate, 6-11 years age group (%) 47.7 Literacy education rate for adults 15 years old or more in 2007/2008 (%) 28.7 Number of students per 100 000 inhabitants in 2008/2009 330 Gross domestic product (GDP) in 2009 Overall GDP Amount of current GDP (in billion CFA F) 3 932.42 Amount of real GDP (in billion CFA F) 3 052.60 Real GDP growth (%) 3.20 Average annual growth rate for 2005-2006 (%) 5.40 GDP in constant francs (99) per capita 200 962.4 GDP in constant US $ (99) per capita 324.1 GDP per inhabitant (current US dollar) 320,5 GDP by sector Primary sector 855.28 Cereal production in 2009 (in tons) 3 634 412 Gross/net production of cotton grain (in tons) 414 500 Livestock (in constant billion CFA F 1999) 416.84 Forestry (in constant billion CFA F 1999) 82.53 Fishery (in constant billion CFA F 1999) 7.69 Secondary sector (in constant billion CFA F ) 648.81 Including extractive Industries (in constant billion CFA F 1999) 149.054 Including cotton ginning (in constant billion CFA F 1999) 8.10 including electricity, gas and water (in constant billion CFA F 1999) 52.70   73     including construction (in constant billion CFA F 1999) 122.53 Tertiary sector (in constant billion CFA F 1999) 1 312.05 Marketable services 742.20 Non marketable services 569.85 Share of the business sector in GDP (2009) Primary (%) 30.90 Secondary(%) 22.50 Tertiary (%) 46.60 Expenditure on GDP (in current billion CFA F) Private final consumption 2 788.80 Government final (internal)consumption 736.53 Stock variation -53.75 Gross fixed capital formation 882.89 Export of non-factor goods +services 516.43 ‐ Import of non-factor goods + services -938.99 Price Inflation (2009) 2.60 Public finance (2009) Fiscal year Du 1er janvier au 31 décembre (12/12) Total revenue (in billions of CFA F) 539.10 Capital expenditures (in billions of CFA F) 457.36 Overall balance based on commitments (in billions of CFA F FCFA) -188.07 Public debt (in billions of CFA F) 1 087.65 Ratio « debt service to fiscal revenues » (%) 16.13 Debt/GDP ratio (%) 27.40 Poverty(2009) National poverty line (FCFA) 108 374 Overall incidence of poverty (%) 43.87 Incidence of female poverty (%) 44.08 Incidence of male poverty (%) 43.65 Incidence of urban poverty (%) 19.90 Incidence of rural poverty (%) 50.70 Currency and external account Currency CFA Franc Average annual exchange rate (2009) 1 euro (€) =CFA F 655,955 1 dollar US for CFA F 485 Credit to the economy (in billions of CFA F) 670.980 Balance of payments (in billions of CFA) Trade balance -228.1 (Net)current transfers 242.6 Private 62.3 Public 180.3 Current transactions balance (including official grants) -182.2 Current transactions balance (excluding official grants) -362.5 (Net)capital transfers 133,0 Private 9.7 Public 123,3 Financial operations 275.3 Direct investments 16.2 Portfolio investments 7.6 Other investments 251.6 Capital account and financial operations 408.3 Overall balance 215.2   74     ANNEX 2: LOGICAL FRAMEWORK Overall objective : achieve strong, sustained and quality economic growth, having multiplier effects on the level of income, the quality of life of the population, while respecting the principle of sustainable development.. Code 1 2 3 4 5 6 7 8 Specific Achieve a real Reduce Ensure Promote gender Reduce Improve maternal Combat HIV, AIDS, Ensure goals GDP average extreme universal equality and empower mortality of health malaria and other environmental growth rate of 10% poverty and primary women children diseases and continue sustainability hunger in education under 5 the reversal of the trend the country Programs Guidelines Outcomes Actions Specific goals (code) AXIS1 : DEVELOP ACCELERATED GROWTH PILLARS Domestic production and exports Set up agro-poles, mining zones, Promote growth poles have increased and are 1;2 a special economic zone, etc. diversified. Develop production sectors A dynamics of networks and Better structure the most Development and and promote business niches polarization of companies has promising production sectors and 1;2 implementation of an and clusters been created niches accelerated growth model Promote job creation for the poor 1;2 The incidence of poverty has Formulate and implement Promote pro-poor growth dropped and inequalities have proactive policies for increasing 1;2 been reduced revenues for the poor Actors in the agro-forestry and Development of priority Implement the land tenure law in Develop the agricultural sector pastoral sector, while having 1;2 sectors the rural areas access to modern agricultural   75   Programs Guidelines Outcomes Actions Specific goals (code) (agriculture, Mechanize the agricultural sector 1;2 livestock, Mitigate the vulnerability of the sector to climate equipment, are better organized in 1;2 fishery and change efficient structures, trained in modern forestry) Ensure the development of agro-industrial methods of management and conquest of 1;2 processing markets, pooling their resources to be more effective. Promote agribusiness 1;2 Promote the marketing of agricultural products 1;2 Agro-forestry-pastoral production and fishery have been diversified and Diversify production sectors, etc. 1;2 increased. Producers are supplied with improved Develop a plan for the production of improved 1;2 seeds. seeds by INERA and disseminate research results Accelerate the review of the mining code 1 Accelerate reforms to make Burkina Faso an ITIE 1 Investors in the mining sector have country confidence in the sector and their number Monitor exports and financial flows 1 Develop mines has increased. The mining sector is a real Set up a one-stop window 1 vector of the dynamics for a sustainable Strengthen Government capacity to evaluate the development of the country. 1 financial performance of extractive companies Promote growth poles around mining zones 1;2 Develop Encourage the emergence of producers of 1;2 handicraft, Craftsmanship is a lever for pro-poor reference cultural growth and, with the cultural industries, it Identify promising sectors 1;2 industries and supports the development of tourism Encourage the emergence of handicraft SMEs 1;2 tourism   76   Programs Guidelines Outcomes Actions Specific goals (code) Structure individual urban and rural craftsmen into cooperatives and other local production 1;2 systems; Institutionalize substantive cross-cutting actions to professionalize the sector and make 1;2 products more visible Implement the National Policy on the Development of Tourism and its Plan of 1;2 Actions Implement the National Policy on the 1;2 Development of Culture and its Plan of Actions Develop recreational activities 1 Reorganize the SME/SMI sector 1 Develop Small and Promote SME/SMI 1 Medium Enterprises and Small and A competitive SME/SMI fabric exists Improve the business environment 1 Medium Industries Connect the food industry with rural producers (SME/SMI) in a partnership approach to generate profits 1 for all Build hydro-agricultural infrastructure (for large The share of irrigated and out-of-season 1;2 Develop hydro- and small scale irrigation) Development of crops in domestic production has agricultural and Accelerate the creation of dams for small scale support increased by 50% by 2015 1;2 pastoral irrigation infrastructure infrastructure Livestock production has intensified. Create water points 1;2   77   Programs Guidelines Outcomes Actions Specific goals (code) Develop grazing areas and access routes for 1;2 animals Facilitate the emergence of transport business; 1;2 Continue the development of the road network and 1;2 Develop construction of Donsin airport Competitiveness of the economy has transport and Rehabilitate and construct railways 1;2 improved logistics Rehabilitate and construct roads 1;2 Rehabilitate and build rural roads 1;2 Create an enabling legal and institutional 1;2 environment in the area of telecom / ICT Create a technological and infrastructural 1;2 environment conducive to telecom / ICT Develop Support the implementation of sectoral e-strategies 1;2 Information and ICTs have become a powerful lever for Communication Carry out communication, training, research and the development of the country. Technologies capacity building activities in the area of telecom / 1;2 (ICT) ICT; Promote access to modern postal services 1;2 throughout the territory Promote areas of activities dedicated to the digital Establish an institutional framework and the Develop the Assurance of a permanent supply of regulatory and fiscal measures for mobilizing actors 1;2 energy sector electricity at low cost and resources   78   Programs Guidelines Outcomes Actions Special goals (code) Secure the country's supply and reduce energy costs 1;2 Open up the rural areas through extension of networks 1;2 and pre-electrification; Mobilize and enhance the national energy potential 1;2 Improve the efficiency of energy use 1;2 Adopt a framework law for land tenure; Burkina Faso towns have 1;2 Develop become economic and growth urbanization Revive the housing sector 1;2 poles Develop urban planning as support to councils 1;2 Improve the legal and judicial framework of the 1;2 financial sector Ensure reconciliation of banking services and the development of loyalty and security schemes for bank 1;2 deposits; The institutional environment is Develop support favorable for financing and Promote the new financing instruments and tools to institutions supporting the development of encourage the creation and development of SMEs and 1;2 the country micro-enterprises in rural areas and towns Establish support structures to assist future developers in assembling their credit files, support 1;2 their applications to banks and help in monitoring and providing advice on investment projects   79   Programs Guidelines Outcomes Actions Specific goals (code) Encourage the establishment of merchant or specialized banks (housing, manufacturing / 1;2 handicraft, export, etc..) Implement the national action plan of micro finance 1;2 Create warehouses in major production areas 1;2 Develop logistic and multimodal platforms, particularly 1;2 in Ouagadougou and Bobo-Dioulasso Support regional and sub-regional solidarity 1 Promotion of Use the opportunities Ensure adherence to integration norms 1 Opportunities offered by economic offered by the Open up to the rest of the world by seizing the economic integration and trade 1 integration and regional and opportunities of integration offered are better used foreign trade international space Make use of the natural comparative advantages of 1 the country AXIS 2 : CONSOLIDATE HUMAN CAPITAL AND PROMOTE SOCIAL WELFARE Improve the living Strengthen the contributions of macroeconomic and conditions of the sectoral policies to job creation and improve the 1;2 Creation of jobs The incomes of the population population, thanks to quality of the jobs (decent work) and increasing of are on the rise, thanks to the an increase in Strengthen the dynamics of job creation 1;2 incomes creation of jobs incomes driven by job Improve employability 1;2 creation   80   Programs Guidelines Outcomes Actions Specific goals (code) Improve the organization and functioning of the labor 1;2 market Strengthen support structures for entrepreneurship 1;2 Create an environment conducive to boosting the potential of youth and increase their skills and 1;2 professional aptitudes for efficient and effective work Establish a mechanism to curb the migration crisis 1 Encourage investment by youth in agriculture 1;2 Increase education and training opportunities, 1;3 particularly in higher education Improve the quality of education 1;3 Develop the system of university degrees on the basis Develop 1 Education and training are of the BMD system technical and Implement a bold contributing to the improvement Pursue the creation of universities in the regions and vocational 1 policy for developing of the quality of human make them centers of excellence education, human resources resources, a vital condition for Strengthen academic research 1 teaching and building an emerging economy Strengthen basic vocational training 1 training Strengthen links between education and training 1 systems Implement the strategy to accelerate literacy to 1 achieve the MDG   81   Programs Guidelines Outcomes Actions Specific goals (code) Implement a simple control system 1 Strengthen steering and management capacities 1;3 Make qualified teachers available to all classes 1 Improve pupil / teacher ratio 1 Expand preschool education 3 Implement the National Policy on Technical and 1 Vocational Education and Training (PN / EFTP) Develop integrated community-based health services 5;6;7 and human resources for health Increase health services, particularly in rural areas, 5;6;7 taking into account private medicine Pursue the Improve the quality and image of health services 5;6;7 Improvement of implementation of Fight against communicable and non communicable In 2015, the MDGs on health health and actions aimed at diseases, neglected tropical diseases, emerging and 5;6;7 have been achieved nutrition achieving the MDGs re-emerging diseases on health Implement the Strategy Framework for the fight 5;6;7 against HIV, AIDS and STIs Enhance national capacities for production of 5;6;7 medicines, taking into account traditional medicine   82   Programs Guidelines Outcomes Actions Specific goals (code) Promote mother and child health 5;6;7 Strengthen the national health information system, 5;6;7 including research Finance health to create conditions conducive to the 5;6;7 reform of the health system Strengthen and improve the maintenance of medical- 5;6;7 technical equipment Back up free initiatives with a legislative and 5;6;7 regulatory framework Back up free service policies with capacity-building measures (human resources, medical equipment, staff 5;6;7 motivation, etc..) Increase the level of domestic food production and its 5;6;7 value added Strengthen market capacity, to allow the population to 5;6;7 get access to foodstuffs Improve economic and nutrition conditions of the poor 5;6;7 and vulnerable groups Strengthen the mechanism for preventing and managing economic crises in line with the 5;6;7 development of structural food security Strengthen the capacity of stakeholders and the 5;6;7 promotion of good governance of food security Implement the 2011-2015 National Health 5;6;7 Development Plan   83   Programs Guidelines Outcomes Actions Specific goals (code) Implement the2011-2015 Nutrition Strategy Plan 5;6;7 Ensure the overall funding of PN- AEPA 5;6;7 Enhance the absorptive capacity of the sector, the grouping of small and medium enterprises, the widespread reform of the management of the facilities 5;6;7 for the supply of drinking water to rural and semi- urban areas Improvement of Pursue the Access by the population to Accelerate the building of AEPA infrastructure, by access to implementation of PN- drinking water and sanitation has integrating drinking water supply and sanitation into drinking water AEPA improved council development plans, the construction of new 5;6;7 and sanitation water fountains , water towers, private connections and construction of public latrines Involve councils in implementing the PN-AEPA and 5;6;7 improve its monitoring-evaluation mechanism Stimulate demand for improved sanitation in rural 5;6;7;8 areas Develop and implement a national policy on social 1;2;3;4;5;6;7 Universal access by the protection Promotion of Reduce vulnerability population to basic social social protection of the population Build a social floor for universal access to money services is guaranteed 1;2;3;4;5;6;7 transfers and essential social services   84   Specific Programs Guidelines Outcomes Actions goals(code) Develop financial mechanisms and facilities for national 1;2;3;4; solidarity, through a national fund 5;6;7 1;2;3;4; Establish a special scheme for the poorest (indigents) 5;6;7 1;2;3;4; Establish a national health insurance system 5;6;7 Implement a policy for a better targeted redistribution of 1;2;3;4; income by using techniques of social safety nets for the 5;6;7 poor or persons vulnerable to poverty and shocks Connect a majority of the population to the electricity A large share of the network 1 Improve the productive population has access to Improvement of access to capacity of the energy services and its Install power plants in major centers that are not connected modern energy services 1 population productive capacity is to the network improving Develop multifunctional platforms with a mini-network 1;2 Use the photovoltaic system for people in low density areas 1;2 AXIS 3 : STRENGTHEN GOVERNANCE Use the demand for economic forecasting to sow sectoral 1;2;3;4; Strengthen the capacity The capacity for steering and thematic issues, to better understand and develop Strengthen economic 5;6;7;8 for steering and and managing the economy endogenous capacity to anticipate governance managing the economy has been strengthened Implement the communication plan for economic 1;2;3;4; forecasting 5;6;7;8   85   Specific goals Programs Guidelines Outcomes Actions (code) 1;2;3;4;5;6; Implement the Burkina 2025 vision 7;8 1;2;3;4;5;6; Provide each ministry with a sectoral policy 7;8 1;2;3;4;5;6; Systematize the program budget in all ministries 7;8 1;2;3;4;5;6; Promote the culture of results-oriented management 7;8 Ensure a rigorous and transparent management of 1;2;3;4;5;6; public resources 7;8 Develop management control, audits, inspections and 1;2;3;4;5;6; evaluations 7;8 Control public finances, The public finance system is reliable, 1;2;3;4;5;6; Ensure the strengthening of internal control instruments fight against corruption, corruption is declining, the fight against 7;8 fraud and forgery fraud and forgery is being intensified Increase external audits 1 1;2;3;4;5;6; Fight against fraud, forgery and corruption 7; Enhance the coordination and Effectiveness of official development 1;2;3;4;5;6; Continue implementation of PANEA effectiveness of official assistance has improved 7;8 development assistance Render the separation of the three powers (executive, 1;2;3;4;5;6; Strengthening Consolidate the Institutions are guaranteeing political legislative and judicial) more effective 7;8 of political republican character of stability and respect for property rights and Build a system of responsibility and accountability in all 1;2;3;4;5;6; governance the state contracts actions of management of public affairs 7;8 Promote a climate of confidence in the justice system 1;2;4   86   Specific Programs Guidelines Outcomes Actions goals (code) Ensure the effectiveness of human rights, through proactive 1;2;3;4;5;6;7; mechanisms and institutions combining promotion and 8 protection activities Promote a culture of tolerance and peace 1;3;4;5;6;7;8 Establish a shared and consensual democratic culture based on 1;2;3;4;5;6;7; mutual values and commitments 8 Strengthen state capacity, and that of other stakeholders, 1;2;3;4;5;6;7; particularly local authorities and civil society organizations 8 Promote a credible and accessible justice, by accelerating the 1;2;3;4;5;6;7; devolution of the judicial administration 8 1;2;3;4;5;6;7; Develop and enhance the human resources of the State 8 Develop instruments, tools and methods of administrative 1;2;3;4;5;6;7; management 8 Bring administration 1;2;3;4;5;6;7; Strengthening of The reform of the state has led to Place ICTs at the service of the Administration closer to the people 8 administrative a development republican and make it more 1;2;3;4;5;6;7; governance administration Promote a promising decentralization for local development effective 8 1;2;3;4;5;6;7; Improve services for users 8 Improve the Government information system to make it more 1;2;3;4;5;6;7; efficient and more transparent 8   87   Specific Programs Guidelines Outcomes Actions goals (code) Ensure successful economic decentralization (creation of 1;2;3;4;5;6;7; genuine regional development poles) 8 Ensure the effective transfer of powers and resources in 1;2;3;4;5;6;7; Regional strategies become interwoven all the areas identified 8 Consolidation of Render with government policies and mobilize Strengthen the capacity of local authorities to manage 1;2;3;4;5;6;7; local decentralization more local energies to promote accelerated local affairs 8 governance effective growth nationally Ensure consistency of local actions with Government 1;2;3;4;5;6;7; policies 8 Support the development and implementation of local 1;2;3;4;5;6;7; development plans 8 AXIS 4 : TAKE INTO ACCOUNT CROSSCUTTING PRIORITIES IN DEVELOPMENT POLICIES AND PROGRAMS Improve the access and control, on an equal and fair footing, of all Burkinabe, men and women, to basic social 2;3;4;5;6;7 services Promote equal rights and opportunities for women and Promote fairness, to men in the access and control of resources and the 2;3;4 Strengthening of ensure the equitable sharing of revenues programs to participation of all Inequalities due to gender have been Improve equal access by men and women to decision- reduce gender segments of the reduced 4 making spheres inequalities population in Promote the institutionalization of gender by integration it development in planning, budgeting and policy implementation systems 4 at all levels Promote respect for human rights and the elimination of 4 violence   88   Specific goals Programs Guidelines Outcomes Actions (code) Promote gender to bring about a change in behavior in favor of equality between men and 4 women in all spheres of socioeconomic life Develop an active partnership in favor of gender in 4 Burkina Faso Strengthen capacities of actors to take into The connection between population and account the demographic situation in development, Strengthening of programs Adapt population 2;3;8 development objectives is contributing research and monitoring- evaluation policies, plans to control population growth trend to national to the acceleration of growth for and programs. growth economic reality sustainable development Develop advocacy with government ministries and 2;3;8 institutions to take into account population issues Strengthen programs to curb the degradation of natural resources and the environment Strengthen programs for adapting to climate variability and climate change Environmental Issues relating to living standards, living strengthen programs for the promotion of Promote management and optimum conditions and living environment are sanitation sectors 8 intergenerational equity use of natural resources better linked up Strengthen programs for landscaping and wildlife Strengthen programs for enhancing environmental governance and capacity Strengthen alternative, energy-saving techniques and technology programs   89   Specific goals Programs Guidelines Outcomes Actions (code) Strengthen programs for the implementation of the Poverty-Environment Initiative Strengthen programs to promote environmental education and eco-citizenship Strengthen programs to support environmental 8 research Finalize national and regional development plans as well as sectoral schemes 1 The national space used is organized and ensures Ensure the harmonious Develop methodological tools and performance Implementation of regional consistency in the development of the entire contracts to support regional and local development planning policy implementation of large 1 territory and regulate relations between local authorities and the infrastructure, equipment State and town projects Organize local actions around promising activities, in 1;2;3;4;5;6;7; keeping with SNAT guidelines 8 Strengthen the capacities of government services and institutions in the formulation, implementation and 1;2;3;4;5;6;7; Actors responsible for monitoring-evaluation of public policies, as well as 8 developing and improve dialogue / consultation Develop the skills of Capacity building implementing national Optimize use of available human resources, reform and development actors 1;2;3;4;5;6;7; development policies are the synergy of the structures and development actors in 8 competent the field Promote better conditions for successful capacity 1;2;3;4;5;6;7; building 8   90   Specific goals Programs Guidelines Outcomes Actions (code) Create the socio- cultural conditions for strengthening 1;2;3;4;5;6;7; competitive entrepreneurial capacity 8 Strengthen the technical and management capacities of the 1;2;3;4;5;6;7; informal sector through the adaptation of training to its needs 8 Strengthen know-how and the acquisition of new skills and new 1;2;3;4;5;6;7; behaviors to improve the productivity of microenterprises in the 8 informal sector Develop two poles of economic intelligence 1 Develop the capacity Burkina Faso has improved its Promote economic and technological monitoring 1 Promotion of for monitoring, capacity for anticipating the Promote the management of Industrial Property 1 economic anticipating and national and international Promote the protection of knowledge and economic security 1 intelligence adapting the national economic environment Promote the management and use of knowledge and economy 1 information   91