Benin report - Institut Africain de la Gouvernance

CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT__________________________________________________________________________increase in the incomes of the citizens (particularly civil servants). TheMinistry of Finance seems to be sceptical about this, arguing that the burdenof arrears and the lack of career prospects, among others, are all factors thathelp to mitigate the impact of the increase in state revenue that results from thesuccesses in meeting the macroeconomic convergence criteria. However, theCRM believes that this argument does not carry much weight when consideredin the light of the losses incurred by the state through corruption, financialmisappropriation and illicit enrichment – all due largely to the low salaries ofcivil servants. The state of Benin should find ways and means of combating allforms of corruption in the „lower categories‟ and especially in the „highplaces‟.429. Still at the level of macroeconomic policies, the implementation of the policyof the transfer and privatisation of public enterprises is sinuous and opaque,thereby indicating that policies are unpredictable and not transparent. This isanother area where corruption and illicit enrichment abound.430. Generally speaking – and with the exception of the preparation process forGPRS II that was recently adopted – the participation of stakeholders inpreparing and implementing economic policy remains low in Benin. Veryoften, the people do not identify with these policies, but they are neverthelessoften required to bear the consequences of policies that they did not help todevelop and which, therefore, seem to be imposed on them. This tends togenerate resentment or resignation. It is expected that the initiative, by thepresident of the republic, to institutionalise permanent dialogue in the form of„concerted governance‟ will solve this problem and pave the way for buildingconsensus around economic and social policies.431. Another challenge in the GGE concerns the weight and place of the informalsector in Benin‟s economy and society. This sector is recognised as playing animportant role. Estimates of its importance vary, but all confirm its importancein the economy, in employment, in the mobilisation of savings, in investment,in social peace, and so on. The sector is, therefore, important at the economic,social and even political level. Implementers of the country‟s economicpolicies tend to have an attitude of acting as „fiscal police‟ towards thisimportant sector, and thus seek to „formalise‟ policy forcefully. It is necessaryto develop a constructive policy that meets the needs of this sector and makesit a partner in the effort to build the Benin of tomorrow. The objective shouldbe to study constructive ways and means of involving the informal sector inthe development of economic policies, as it is obvious that the sector will notdisappear soon. In the meantime, the major economic efforts are leading tomarginalisation, exclusion and the development of survivalist activities in thissector.432. The effective implementation of sound, transparent and predictable economicpolicies also requires state machinery with sufficient institutional capacity tobuild the „emerging Benin‟ of 2025. Apart from the problems of human,technical, material and organisational capacities, there is also the problem ofthe level of commitment and functional efficiency of this machinery for itreally to become a „development administration‟ capable of conducting and156