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Benin report - Institut Africain de la Gouvernance

Benin report - Institut Africain de la Gouvernance

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CHAPTER EIGHT: GENERAL CONCLUSIONS: CONSTRAINTS AND PROSPECTS__________________________________________________________________________results expected from the implementation of the Private Sector RecoveryProgramme, which is a full component of the GPRS (2007-2009).1007. Despite an economic situation that, on the whole, is currently experiencing afavourable trend, progress registered at the macroeconomic level has notsuccee<strong>de</strong>d in significantly reducing the phenomenon of poverty – anothermajor constraint and challenge of <strong>de</strong>velopment in <strong>Benin</strong> that affects more than30% of the popu<strong>la</strong>tion. This situation is a consequence of the concentration ofproduction around one branch, as well as poor redistribution of the benefits ofgrowth, which makes it impossible to effectively fight poverty in <strong>Benin</strong>. Anaverage growth of more than 5% is expected un<strong>de</strong>r the GPRS, and this willsignificantly reduce the inci<strong>de</strong>nce of poverty. To that end, and with the supportof <strong>de</strong>velopment partners, the strategy of the government must continue to relyon a stable macroeconomic framework in the medium term. The governmentshould pursue the improvement of the basic economic infrastructures, and givepreference to expenditure sectors that contribute directly to poverty reduction.To that end, the reforms implemented will help to address the constraints inthe area of improvement of the legal protection of business, fiscalresponsibility, customs duties, management of public utility services, andfinally, the <strong>de</strong>velopment of infrastructure.1008. To reduce the cost of production factors, the government p<strong>la</strong>ns to pursue themo<strong>de</strong>rnisation of its financial and banking system and improve theperformance of public structures that supply strategic goods. <strong>Benin</strong> shouldaccelerate the pace of implementation of its privatisation and liberalisationprogramme in or<strong>de</strong>r to establish the long-term bases for its <strong>de</strong>velopmentthrough: (i) the actual sale of ginneries of SONAPRA; (ii) the concession ofthe current electricity company; (iii) the completion of the privatisation oftelecommunications; (iv) the implementation of the second phase of the studyon the privatisation of port management, and the preparation of an action p<strong>la</strong>nto implement its main recommendations; and (v) the <strong>de</strong>velopment andoperationalisation of a new regu<strong>la</strong>tory framework for the electricity andtelecommunications sectors. Apart from these measures – which thegovernment intends to pursue in or<strong>de</strong>r to promote the different sectors thatconstitute sources of growth – the government should be able to takeadvantage of the AGOA initiative, which offers markets for textile products.1009. Another important risk concerns the <strong>de</strong>pen<strong>de</strong>ncy of the <strong>Benin</strong>ese economy onpolitical and economic <strong>de</strong>velopment in Nigeria. As <strong>Benin</strong>‟s main tra<strong>de</strong> partner,Nigeria constitutes an opportunity but also a risk for <strong>de</strong>velopment and povertyreduction in <strong>Benin</strong>. The risk will, however, be reduced by the success of thestructural reforms – notably those concerning improvement of thecompetitiveness of the Cotonou Port Authority with a view to making it acommercial p<strong>la</strong>tform. Furthermore, <strong>Benin</strong> p<strong>la</strong>ns to strengthen its customssystem in or<strong>de</strong>r to get the most it can from its strategic position as the gatewayto the Sahelean countries.1010. Concerning the fight against corruption, consi<strong>de</strong>rable efforts are stillnecessary in or<strong>de</strong>r to eliminate the many constraints at this level. In thisregard, the government has adopted a national strategic p<strong>la</strong>n for the fight309

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