Benin report - Institut Africain de la Gouvernance

EXECUTIVE SUMMARY__________________________________________________________________________only be very slow. Nevertheless, growth resumed in 2006, reaching a rate of4.1%, with optimistic prospects for 2007 and 2008.2.3 Benin and the challenges facing its government2.8 Despite its encouraging and rapid economic recovery since 2006, Benin hasexperienced severe and persistent problems, including significant levels ofpoverty (one-third of the population is on the poverty threshold); corruption; alarge informal economy; lack of infrastructure; and a barely competitiveagricultural and industrial sector. Moreover, the importance of its trade withneighbouring countries makes Benin vulnerable to upheavals in the region.2.9 Still, the national authorities remain optimistic about Benin‟s inevitableresurgence in the years to come. To this end, the policy of the currentgovernment is based on four priorities: (i) human resources; (ii) consultativegovernance; (iii) development of an entrepreneurial spirit; and (iv) theconstruction of new infrastructure. In the country‟s „Alafia Bénin 2025‟framework, the government‟s ambition is to eventually make Benin anemerging country. This vision is highlighted in a strategic policy document forthe period 2006-2011, which has as its main strategic thrusts thereconstruction of the administration; promotion of economic recovery;resolute continuation of structural reforms (harbours, telecommunications,electrical energy and water); development of human capital (providing freeprimary education); and the promotion of fundamental development throughdecentralisation. Underpinning these thrusts is the Growth and PovertyReduction Strategy (GPRS – second-generation) for the 2007-2009 period.This strategy constitutes the frame of reference for dialogue with the country‟sTechnical and Financial Partners (TFPs) with a view to mobilising andcoordinating resources.2.10 The preferred tool for implementing developmental policies and programmesis an efficient public administration with capacity to fulfil the functions of aresponsible public service. This remains a major challenge to democracy anddevelopment in Benin. Being fully aware of this, the government‟sdevelopmental policy is geared to rehabilitate the administration in its entiretythrough the effective implementation of a series of reforms.2.11 It has to be said that Benin has no shortage of assets to provide a basis for itsdevelopment. In fact, despite its modest economic weight in the subregion,Benin plays a central role as a trade centre for Niger, and particularly for itsneighbour Nigeria. The global business environment is also favourablefollowing the country‟s implementation of a modern commercial legal systemand a new investment code with related tax incentives. Benin‟s politicalstability is an added factor to promote the private sector and attract foreigninvestors.5