91613 IDA at Work Burkina Faso: Overcoming the Odds B urkina Faso has maintained relative macroeconomic stability. In the decade preceding 2007, the real gross domestic product (GDP) growth rate averaged about 6 percent per year and poverty incidence declined from 54 percent in 1998 to 46.4 percent in 2003. The annual growth rate contracted from +5.2 percent in 2008 to +3.2 percent in 2009 as a result of a combination of climatic shocks, the energy crisis, fluctuating commodity prices and global financial crisis. This decline resulted in an increase in vulnerability among the poor. Burkina Faso is a poor, landlocked country that faces severe development challenges, with an economy that remains strongly dependent on cotton exports, and a vulnerability to both natural disasters and fallout from civil strife in the nearby West African countries. In recent years, the country has turned to the mining sector as a promising source of diversification and revenue. In 2009, gold replaced cotton as Burkina’s most valuable export, with production significantly increasing as new mines started to come on-stream. Country Indicators 1995 2008 Real GDP growth (%) 6.3 5 Atlas gross national income (GNI) per capita (US$) 240 430 External debt (% of GNI) 51.95 21.6 (% of GDP) Debt service ratio (exports/debt service) 23 5.2 Poverty incidence (%, national threshold) 54.6 (1998) 57e Gross primary school enrollment rate (%) 39.6 66 Gross secondary school enrollment rate (%) 7.2 (1990) 20.7 Under-five child mortality (per 1,000) 204 122 Total fertility rate (births per woman) 7 6.5 (2004) Population (million) 9.8 15.2 Sources: World .Bank World Development Indicators and surveys. e = staff estimate. Burkina’s political stability over the past 15 income gradually declined throughout the years, together with a country-led transition period, leading to public disillusionment. to a more open, market-driven economic model, has provided the foundation for Economic Transition growth and poverty reduction. Since 1994, the International Development Association In 1987, Burkina Faso began a post-revolu- (IDA), the World Bank’s fund for the world’s tionary transition towards a market economy. poorest countries, has supported sustained A new regime launched a “rectification” of policy reform in Burkina’s transition towards a the earlier revolution, this time, stressing market economy through financial assistance improved macroeconomic management and and strategic advice. It has worked to improve a sustained shift towards a market economy. infrastructure linking the country’s producers Fixed export prices and the state monopoly to a wider economic space. IDA also has led on cereal imports and other staple agricul- efforts to improve public financial manage- tural goods were eliminated and the major- ment and accountability, to harmonize donor ity of public enterprises were privatized or support in the social sectors, and to promote liquidated. The 50 percent devaluation of the decentralized development. CFA franc in 1994 restored competitiveness in the Franc Zone and helped to acceler- Country Achievements ate growth in Burkina Faso as in the other affected countries. Measurable results began Burkina Faso gained its independence from to be felt in the early 1990s. Since 1994, GDP France in 1960 as Upper Volta, inheriting a growth has averaged around 5 percent per centralized approach to economic manage- year, compared to an average of 1.2 percent ment while facing the challenges of frequent in 1960–1980 and 0.73 percent in 1980-1994. political turnovers and a difficult economic environment. A Stronger Cotton Industry The Burkinabe Revolution Liberalization of the cotton sector starting in 1998 lowered production costs and helped From 1982 to 1987, following a series of Burkina compete in an otherwise heavily subsi- political upheavals, the country went through dized global cotton market. The cotton sector a revolution that was aimed at instilling a reforms brought about significant changes. greater sense of national identity, increas- ing country ownership of the development The government opened the cotton ginning process and emphasizing values of individual market to two new operators in the eastern integrity. The emphasis on country-led devel- and central zones and, prior to the 2007 crisis, opment and the culture of national unity released a major share of the existing ginning remain hallmarks of the Burkinabe political company to private ownership, becoming a economy. But the revolution did not imme- minority shareholder and “silent partner” in diately generate an economic resurgence. cotton management. A new pricing mecha- State control over the main engines of growth nism was introduced to better transfer world as well as key infrastructure discouraged market signals to producers while at the same private sector investment. Real per capita time reducing volatility and risk for farmers. 2 Production increased by more than 17 per- countries to reach its completion point under cent per year in the 1995-2006 period against the Highly Indebted Poor Countries (HIPC) a global average growth rate of only 2.1 debt reduction plan. Burkina today is one of percent. Today, Burkina Faso is Sub-Saharan the highest-ranking African countries on the Africa’s number one exporter of prime-grade HIPC public expenditure management index. cotton. The country’s risk of debt distress, however, remains high due to Burkina’s excessive This achievement should not however, mini- dependence on commodity exports and reli- mize the risks to an economy over-dependent ance on external financing for most of its upon a single commodity (the cotton indus- public investment program. try provides between a half and a third of Burkina’s export earnings depending on the Tangible Outcomes year.). Continued distortions in the world cotton market—particularly subsidies of cot- Although public financial management may sound ton farmers in developed countries—put West abstract, the benefits of improved government Africa’s cotton farmers at a disadvantage. spending are anything but. Some of the concrete outcomes include: Since 2007, the cotton sector has experi- • expanded immunization against avoidable enced two crises caused by climate shocks, diseases; • a program of prevention and treatment of HIV/ and continued structural inadequacies and AIDS; lack of competition in the sector. These crises • more affordable pre-natal care; and have had an important effect, not only on • an extended education network. the country’s macroeconomic stability, but As a result, positive trends in social welfare have on the livelihoods and wellbeing of the Burki- accelerated, with vaccination levels (pentavalent) in nabe. The crises have highlighted the need children under age one increasing from 57 percent for Burkina Faso to broaden and diversify its to 106.9 percent between 2005 and 2008. The economic resource base. gross primary school enrollment rate has also risen quickly, from 44 percent in 2000 to 72 percent in 2007. Improved Management of Public Finances and Higher Quality Social Services Strategizing Development Action The shift to a market-based economy was Burkina Faso’s development strategy is accompanied by efforts to strengthen the detailed in its Second Poverty Reduction management of public funds, with gradual Strategy Paper (PRSP) whose four pillars are: progress, from 1990 onward, in enforcing (i) raising growth and equity in a stable mac- fiscal discipline and modernizing budget roeconomic environment to reduce poverty; systems. Planning tools were introduced, (ii) increasing access to and quality of basic including program budgeting and medium- social services; (iii) improving employment term expenditure frameworks. and income opportunities for the poor; and (iv) improving governance with a particular The government eliminated debt service emphasis on public sector management and arrears and later became one of the first budget management reforms. The govern- 3 ment is presently reviewing its development tiveness and export diversification, continue strategy through its expected Strategy for to support the agenda for change. In recent Accelerated Growth and Sustainable Devel- years, a series of Poverty Reduction Support opment for 2011-2015. Credits (PRSC) has underpinned privatization and spin-offs in the cotton sector, liberaliza- Ida Contributions tion of the telecommunications and electric- ity sectors, and significant investment climate IDA’s action in Burkina Faso is guided by the reforms aimed at reducing the cost of doing World Bank’s Country Assistance Strategy business. The current PRSC series places (CAS) for the country. The present CAS, which significant emphasis on investment climate covers the 2010-2012 period, is well aligned reform and export promotion, sustaining with the priorities outlined in the govern- economic growth in a time of global recession ment’s PRSP and the new Strategy for Accel- (including improving the competitiveness of erated Growth and Sustainable Development. the cotton sector), enhancing public financial Focusing on efficiency and selectivity, it management, and supporting administrative banks on economic transformation, improved and fiscal decentralization for improved ser- and equitable service delivery and capacity vice delivery. building as key levers to achieve growth, while mainstreaming governance and demog- The government has adopted a strategy for raphy—its transversal issues—throughout the private-sector participation in the electricity World Bank Group’s operations in Burkina and petroleum sectors. The liberalization of Faso. the cellular telephone market has had per- haps the most visible results, with two new Between the 2000 and 2010 (fiscal years), service providers introducing lower prices total IDA commitments for Burkina Faso have and expanding connections to rural areas. amounted to US$1.5 billion. This includes The successful establishment of ARTEL, the 11 budget support operations (ten of which telecoms regulatory agency, has served as a are Poverty Reduction Support Credits). Sus- model for other countries and sectors. tained support for Burkina’s reform agenda has been critical and has made a measurable Forging a New Aid Compact difference in a number of areas. Since 2000, IDA has helped forge a new aid Supporting Sustained Policy Reform compact based on poverty reduction strate- gies, HIPC debt relief, better-harmonized aid A series of IDA policy loans in the 1990s was and government leadership. Ten donors are critical in supporting the transition to a more signatories of a general framework for budget market oriented economy. support, which establishes common disburse- ment criteria, data sources, monitoring sys- Analytical work financed by IDA, such as tems and joint review processes. The PRSC the 2004 study on reducing poverty through series is firmly embedded in this process and sustained growth, the 2007 Diagnostic Trade IDA has participated in 2009/2010 as leader Integration Study and the 2010 Country of the troika of donors in charge of coordi- Economic Memorandum on growth, competi- nating the joint performance assessment 4 framework. On the governance side, progress Promoting Decentralized Development was made to strengthen supreme audit insti- through Community-Based Approach tutions in order to fight corruption. Support for the decentralization process is gradually IDA is supporting the country’s far-reaching facilitating the devolution of decision-making decentralization policy through community- responsibility to local and community levels. driven development projects that build rural In 2008 the President of Burkina Faso led communities’ governing and management consultations, supported by IDA, the United capacities. The Community-based Rural Nations Development Programme (UNDP) Development (CBRD) Project, together with and the Joint United Nations Programme on the PRSC series, a Decentralized Urban HIV/AIDS (UNAIDS), to assess governance and Development Project, and the Administra- transparency in national AIDS programs in tion Capacity Building Project (PRCA) have West Africa and Mauritania. IDA also enabled been instrumental in advancing the country’s reforms in procurement and public bidding decentralization agenda. Supporting the processes. development of the legal and regulatory framework for decentralization and local In March 2006, donors established a joint government, IDA has also worked with pro- secretariat for aid effectiveness to promote gram administrators to support the process of harmonization, alignment and a focus on local elections. In April 2006, the first-ever country systems. Relatively strong donor municipal elections were held—a critical harmonization has contributed to more pre- milestone in the effort to decentralize and dictable aid flows and encouraged alignment increase economic participation and access behind government sectoral strategies. To to social services. And in 2009, the legal improve the effectiveness of their aid, IDA decrees for the devolution of responsibilities and other donors have been providing direct to the municipalities were made effective. budget support while establishing program- matic approaches in basic education, health, The community-driven development approach HIV/AIDS and water supply. For example, in adopted through the extensive CBRD Project health, a pooled funding mechanism chan- has set the pace for local participation in nels resources directly to health districts and decision-making under the newly decentral- hospitals on the basis of indicators that can ized system. Since 2004, the CBRD Project be tracked over time. has supported thousands of rural communi- ties and, more recently elected local govern- Donors have also partaken in sectoral the- ments, in the creation of their own local matic groups to coordinate reform dialogue development plans. A total of 4,013 villages and sectoral interventions. The Bank has (40 percent of villages in the country) have assumed chairmanship positions in many of already benefited from the support and about these thematic groups. The donor community 18,000 village micro-projects have been has committed to establishing a joint assis- implemented. The project has helped to tance strategy in 2012. This joint strategy finance micro-projects ranging from literacy will align with the new government Strategy centers to improved water management. Eval- for Accelerated Growth and Sustainable uations show that participating communities Development expected in 2011. benefited from increased household incomes, 5 higher agricultural productivity, increased 2010 and a total of 14,975 enterprises being women’s participation and better nutrition. registered at the one-stop shop. Business The current project (CBRD II launched in July environment reforms contributed to reducing 2007) extends support to the entire country, the time required to create an enterprise to including the 302 rural communes located 7 days (from 45 in 2004) and the number of in the country’s 45 provinces. In 2009, over days to obtain a construction permit to 30 US$15 million financed the implementation days (from 260 in 2006). Reforms to reduce of micro-projects in communes. labor market rigidity allowed Burkina Faso to become the top reformer worldwide in Communities Manage Seed Distribution the labor regulation indicator. Thus, Burkina Faso’s ranking in Doing Business on labor mar- A noteworthy CBRD achievement involved the ket rigidity improved from 125/181 in 2008 to targeted distribution of seed to rural farmers during 57/181 in 2009. the peak of the food price crisis in 2008. Roughly 3,500 tons of improved millet, sorghum, maize, Energy. At the regional level, IDA has a two- beans and rice seeds were distributed to 140,000 households in 302 communities in the country for a prong approach to supporting the provision of total of US$5 million. The targeting of households low-cost energy. First, IDA and other donors was carried out by the village councils who took into have financed urgently needed power genera- account people’s level of poverty and how much tion capacity in Burkina, as well as investing they had been affected by flooding. in regional electricity interconnections with Côte d’Ivoire and Ghana. The goal is been to IDA’s Impact in Burkina Faso halve the cost of electricity. Spans Many Sectors Second, IDA is providing technical and finan- Private sector. The US$30.7 million Competi- cial support to increase urban and rural access tiveness and Enterprise Development Project to modern energy sources, through expansion aims at supporting the country in creating the of the electrification grid and investment in conditions for improved competitiveness and alternative technologies. a more dynamic development of enterprises. The project notably supports the reform in Roads. In the transport sector, IDA is part of the telecom sector which lead to an increased a consortium of donors that is assisting the teledensity (number of telephone lines per government in rehabilitating and maintain- 100 inhabitants) from 1.5 in 2003 to 27.6 in ing essential transport infrastructure. The 2009. support also involves strengthening existing institutions and adopting sound policy and The project also assists in the development regulatory measures. IDA financing has reha- of enterprises through the creation of the bilitated more than 1,100 kilometers of rural Maison de l’Entreprise du Burkina Faso roads, connecting agricultural production (MEBF) and setting up a one-stop counter for zones to markets. the delivery of construction licenses. Water. IDA has supported Burkina’s unprec- These actions have contributed to the cre- edented progress in improving access to safe ation of 6,670 formal new jobs as of June 30, drinking water. Responding to chronic water 6 shortages in Ouagadougou, Burkina’s capital, Agriculture. Farming activities have formed IDA was part of a coordinated 13-donor effort the mainstay of Burkina’s rural population for to support the government’s medium-term many years. Eighty percent of the population investment plan. Central to that plan was is engaged in agricultural activities and the the construction of the Ziga dam and the agriculture sector amounts to 40 percent of treatment and transport facilities necessary national GDP. for bringing water to Ouagadougou. IDA’s con- tribution financed the secondary and tertiary In addition to supporting increased produc- water network in the city. Drawing upon the tivity in the critical cotton sector, IDA has success of the program, IDA, together with financed expanded irrigation and measures to the other donors, has recently committed diversify and commercialize farm outputs. IDA to supporting an expanded urban water and has emphasized private sector–led irrigation sanitation project. Through the CBRD Proj- to allow dry-season production of high-value ect, rural populations have also benefited export crops such as tomatoes and onions. IDA from the installation of sanitized wells and supported the manufacture and maintenance hand pumps. of small-scale irrigation equipment, as well as institutional and financial support. Beneficia- IDA has also invested in drainage and sanita- ries, including women’s groups in the project tion infrastructure in Ouagadougou and Burki- zone, have been able to double the surface na’s second city, Bobo-Dioulasso, with positive of irrigated land and increase their household measurable effects on disease prevention and income by an estimated 30 percent. economic activity in surrounding areas. IDA’s agricultural intensification and market- Taken together, IDA interventions in energy, ing program has supported key supply chain roads and water are helping Burkina reduce studies and assisted co-operatives in negoti- the cost of infrastructure and progress towards ating export contracts for mangoes, meat and the goal of greater regional integration. onions. The project is also scaling up earlier Ouagadougou Water Supply Project As part of a US$205 million program involving 13 donors, IDA contributed US$70 million toward the Ouagadougou Water Supply Project. The project, which closed in 2006, achieved outstanding results. Within six years, the project successfully turned around the national water utility in Burkina Faso, closed the gap with the best performing utilities in the region (Côte d’Ivoire and Senegal), and put Burkina Faso on track to meet the Millennium Development Goal (MDG) target for potable water by 2015. The project also contributed towards an increase in access to piped water in urban areas covered by ONEA, the public water utility, from 57 percent in 2001 to an estimated 73 percent in 2008. In Ouagadougou, the number of people with direct access to piped water through household connection has more than tripled in six years from 300,000 in 2001 to 1,040,000 people in 2007. Compared to the situation in 2001, when the water service in Ouagadougou was chronically intermittent with insufficient pressure, 24/7 water supply service is now assured to 94 percent of the population. This service is close to water access levels found in Abidjan and Dakar. There is improved sector management operational performance as a result of the successful implementation of a Service Contract; the bill collection ratio improved; unaccounted-for-water decreased; the commercial staff productivity index improved and financial equilibrium was restored. Today, ONEA is considered as one of the best managed public enterprises in Burkina Faso. 7 investments in export infrastructure, such as implementation of policies and programs for cold storage rooms at airports and a meat- sustainable development, to strengthened slaughtering center in Ouagadougou. civil society engagement in the sector. With the International Finance Corporation (IFC) Mining. Mining is poised to replace cotton and the Multilateral Investment Guarantee as Burkina’s biggest export, increasing total Agency (MIGA), IDA is also supporting efforts export earnings by around 25 percent, an to encourage private sector investment injection of US$450 million in fiscal revenue through investment climate reforms, guaran- between 2010 and 2015. By 2015, Burkina is tees and mining linkages programs. likely to be situated between the 15th and 20th largest gold producing nations in the Education. IDA support has contributed to world. The expansion of the mining sector expanding access at the primary and second- and the flow-on tax revenue benefits are ary levels, improving quality and pertinence expected to have a positive impact on growth and strengthening management of the educa- and equity by increasing poor people’s access tion system. At the primary education level, to basic services and employment (the sector IDA support targeted girls and the poor in the provided 3,350 jobs in 2008). provinces with the least coverage. The gross enrollment rate (GER) in primary education IDA has provided technical and financial sup- rose from 60 percent in 2006 to 72 percent port over the past 10 years to eliminate the in 2008 and the completion rate rose from 40 state monopoly on mining, opening it up to percent to 44 percent in the same period. competition and facilitating private mining exploration and investment in gold, manga- Although the country continues to have one nese, phosphates, and zinc. Investments in of the lowest gross enrollment rates in post- the sector rose by US$700 million between primary education in Africa, the GER in lower 2006 and 2009, with additional investments secondary education increased from 20 per- in the order of US$250 million over the next cent in 2006 to 28.5 percent in 2008, exceed- two years. IDA is also supporting efforts to ing initial targets. IDA remains one of the few ensure transparency, good governance and donors supporting post-primary education. environmental and social safeguards in the sector. The Competitiveness and Enterprise IDA has supported reduced school fees and the Development Project is supporting capacity promotion of girl enrollment at the secondary development within the Ministry of Mines and level. IDA is also supporting quality improve- a revision of the legal and regulatory frame- ment in both primary and post-primary educa- work to incorporate social and environmental tion, which is essential to support increased safeguards. IDA has also supported the coun- economic growth. In addition to increased try’s candidacy to the Extractive Industries provision of better quality school inputs, sup- Transparency Initiative, which promotes port is being provided to strengthen pre- and public reporting of extractive industry rev- in-service teacher training and teacher sup- enue. A regional project under preparation port at the school level. Monitoring of student will take this a step further by addressing learning in both primary and post-primary the entire value chain of natural resource education has also been introduced to help extraction and utilization—from the award identify learning weaknesses and to increase of exploration and production rights to the accountability for outcomes in the sector. 8 IDA support also includes establishing the of the government’s Ten-Year Education foundations for further developing programs Sector Development Plan in collaboration for enhancing the vocational and technical with others partners in the sector and civil skills of the labor force partly through the society. In this context, IDA helped mobilize Post-Primary Education Project. A new project over US$ 100 million from the Education for in skills development is also being initiated. All—Fast-Track Initiative (EFA/FTI) Catalytic Progress in this area includes more efficient Fund in 2008, which is being provided through utilization of institutions and resources, a series of three budget support operations to which would provide a solid basis for cost- support the government’s efforts in deepen- effective development of the system. Efforts ing reforms in the education sector. in this area would help promote diversifica- tion and growth of the economy. However, achieving basic education for all remains constrained by large disparities The diverse demographic and geographic between provinces and urban/rural areas conditions in Burkina are a challenge to and issues related to quality of education at further expansion and quality improvement both primary and secondary levels. Literacy especially for girls, the urban poor as well as levels in Burkina are amongst the lowest in for students in areas with difficult access. IDA the world, falling below 30 percent. is helping to strengthen administrative and pedagogical management capacity through Health & HIV/AIDS. Despite its low ranking support for improved planning and fiduciary in human development indexes, Burkina has systems and decentralized management of seen some of its health indicators improve in the education system, including participation the past five years, including wider vaccina- of communities in the management of schools tion coverage, improved prenatal care, and at the primary level. lower child mortality (from 219 to 104 per 1,000 between 1999 and 2009). With support To maximize the impact of IDA’s interventions, from debt relief and poverty reduction cred- the programs and projects are being imple- its, child vaccination became free in 2002, as mented through support for implementation did prenatal care in 2003. A Rapid Response to the Meningitis Outbreak Recurrent outbreaks of meningitis have been reported over the last 20 years. The most recent and most devastating outbreak occurred in 1996 and left over 25,000 dead across the “Meningitis Belt” (from Senegal to Djibouti) and another 60,000 with severe neurological consequences. Epidemics occur every year, with more severe epidemics occurring every 8 to 12 years. The year 2008 was particularly bad for Burkina Faso, with meningitis taking the lives of nearly 8,400 people. In the early stages of the 2008 epidemic, Burkina appealed to donors for a more concerted and robust response to the crisis. The donor community, led by the World Bank and the United Nations Children’s Fund (UNICEF), responded quickly by allowing the country to use its existing credit proceeds to purchase 2.5 million doses of vaccines through a direct financing with UNICEF to make sure that the availability and quality of the vaccines were guaranteed. This crucial partnership prevented the deaths of thousands of people. After the crisis was contained, the World Bank proceeded to allocate an additional US$5 million for the purchase of additional vaccines to prevent shortages in the event that another epidemic might occur. 9 HIV rates in urban areas have significantly period and the ongoing global financial crisis declined, from a peak of over 7 percent in have resulted in lower productivity, weaker 1997 to about 1.9 percent today. Other trends world market prices for cotton and the are also encouraging: the percentage of men potential for a future diminution of the levels using condoms during their most recent of foreign direct investment and foreign aid high-risk sexual contact increased from 59 levels. to above 70 percent from 1999 to 2007, and the number of infected persons receiving The country’s continuing dependence on cot- anti-retroviral treatment has dramatically ton, low agricultural productivity levels and increased. Thanks to a concerted effort weaknesses in the investment climate are by donors led by IDA, over 21,000 people chronic problems that require immediate and received treatment between 2002 and 2006. sustained attention. The struggling school system falls short of preparing a competitive Other health challenges persist: malaria workforce and the need for a stronger entre- remains the major killer of children, followed preneurial culture holds back private-sector by diarrhea and respiratory infections; and job creation. nearly 38 percent of children are chronically malnourished. The global financial crisis presents a serious challenge to Burkina’s growth ambitions. Challenges Ahead The impact of exogenous shocks was particu- larly significant in the last two years. Low cot- Burkina remains one of the poorest countries ton prices, combined with the depreciation of in the world, with per capita income around the dollar against the euro, a significant drop US$460. Two of every five children are mal- in cotton production and rising food and fuel nourished and two-thirds of the population prices, resulted in a decline in GDP growth to remains illiterate. The country’s social wel- 3.6 percent in 2007. Due to a good cropping fare indicators continue to lag behind Sub- season and a series of government stimulus Saharan averages, placing Burkina near the measures, GDP growth recovered to 5 per- bottom of the Human Development Index. cent in 2008. However, inflation increased to Along with education and health challenges, 10.7 percent at the same time as a result of and, in the wake of recent and ongoing cli- the rising international oil and food prices. matic and financial crises, Burkina Faso will The falling cotton exports only partly offset need to address a key set of constraints and by gold exports, coupled with increased cost vulnerabilities in order to sustain the steady of food and energy imports, also led to the economic and social gains made to date. widening of the current account deficit from 8.3 percent of GDP in 2007 to 11 percent of Vulnerable Growth GDP in 2008. The unfolding crisis has revealed that ultimately over-reliance on the cotton As demonstrated by the recent slow-down sub-sector for economic growth is both risky in economic growth, Burkina Faso’s growth and unsustainable. performance remains highly vulnerable to external shocks. The food and fuel crises in Burkina is at a crossroads. The country can 2007-2008, floods and droughts over the same choose to tackle the distortions that have 10 reduced incentives for investment and pro- ity Action Plan (PAP), an implementation plan ductive activity, create the necessary condi- for the country’s poverty reduction strategy, tions for a shift from low-input/low output aims to accelerate real growth to around 7 subsistence farming to diversified and high percent per year and to reduce poverty levels income-enhancing agriculture, and move to less than 35 percent of the population by towards sustainable and diversified growth. 2015. The Strategy for Accelerated Growth In so doing, the country could build on islands and Sustainable Development, planned for of success and promising cluster initiatives 2011, will enable the country to update and and enclaves that can then pull along the advance its development agenda. rest of the economy (successfully achieved in China and India, Malaysia and being tested To minimize economic vulnerability and in Zambia, Mozambique etc.) or it can ignore promote sustained and shared growth, the the reform imperatives and pay the price of country needs to intensify, diversify and com- having a highly distorted, rentier economy mercialize its agricultural base and expand based on cotton. exports beyond the heavy reliance on cotton. Pursuing regional economic integration will Burkina will need to continue to harness be critical to reducing costs and expanding opportunities actively to promote regional markets. Improving the effectiveness and integration and trade considering the politi- quality of social service delivery will advance cal environment in neighboring countries. human development and enable a redistribu- tion of the benefits of growth. Additional The government’s commitment to improv- resources can be absorbed in the short run ing governance and combating corruption in at least four key areas: (i) agricultural needs to be accompanied by the smooth and productivity; (ii) private sector-led diversi- effective decentralization of identified social fication (in agriculture, mining, and possibly service delivery responsibilities, the capac- tourism); (iii) transport infrastructure; and ity development of local municipalities and, (iv) decentralized service delivery interven- most importantly, broadened opportunities tions. IDA has a key role to play in supporting for local participation in decision-making and the government in laying out the analytical oversight of government functions. road-map for development in the country. Because of its involvement in a broad range A Plan for Transformation of sectors and issues, IDA is well positioned to support the analysis of Burkina’s development A demonstrated commitment to reforms, needs and priorities and to promote greater political stability and proven capacity to harmonization of donor activities. absorb aid effectively offer Burkina an oppor- tunity to accelerate progress and achieve Last updated September 2010. transformative results. The 2009-2011 Prior- http://www.worldbank.org/ida 11