Benin report - Institut Africain de la Gouvernance

CHAPTER TWO: HISTORICAL CONTEXT AND CURRENT CHALLENGES__________________________________________________________________________soon became political demands. The economic and social crisis was, in fact, areflection of the political crisis of the system and the demands for democracy.The entrenchment of the latter became another aim and challenge for modernBenin, and in this it succeeded very well after the National SovereignConference.75. The third period (1990 to the present) – the period of democratic renewal – ischaracterised by a return to liberalism, to multiparty politics and to democraticgovernance. A broad-based sociopolitical order was established and isincreasingly affirming itself. International aid is being provided to support theefforts to achieve economic stability. The economic governance of this periodis marked not so much by a concern for structural transformation as by aconcern to achieve economic stability with a view of creating the conditionsfor economic recovery.76. The macroeconomic results are satisfactory, but the breathlessness of a modeof economic governance which is focused on the management of day-to-dayaffairs could not last in the context of the devaluation of the CFA franc in1994. The SAP and PRSP I could not solve the economic difficulties facingthe country. Its vulnerability to both internal and external shocks and theweakness of the style of economic management in force were expressedmainly in terms of a decline in growth and especially in the standard of livingof the population. The issue of the socioeconomic development and structuraltransformation of the economy was reduced to one of a frantic search forfinancial equilibrium that served as a development policy. The challenge wasto define another vision and other strategies, but especially to put in place astate machinery capable of implementing them in partnership with the otheractors. And this was all the more urgent since Benin – facing reducedcompetitiveness, a decline in its transitional economy and an increase in itseconomic orbit insertion – was obliged to take up the challenge of building anemerging economy capable of benefiting from regional integration andglobalisation. The challenge was, therefore, to avoid entrenching itself in thedynamics of orbit insertion and a transitional economy without a solidproductive base.77. In other words, the challenge of consolidating the democracy acquired afterthe National Sovereign Conference depends on the ability of the democraticgovernment of Benin to improve the conditions and quality of life of itscitizens, and to ensure for all Beninese nationals the right to a minimumstandard of living which goes beyond basic freedoms and other political andcivil rights.78. The authorities are well aware of these challenges and seem determined toconfront them by using the lessons learnt from the history of the country.79. Indeed, between 1960 and 1972 there were many good intentions to achieveindustrial development, but these were often not translated into reality becauseof the recurring political instability. A few state companies were createdbefore this period. They included Société Nationale des Huileries du Dahomey(SNAHDA); Société Nationale pour le Développement Rural (SONADER);53