For more than two decades sub-Saharan Africa, with its deep-rooted development constraints, has been experiencing a deteriorating socio-economic performance. Life expectancy is 51 years, more than ten years lower than the world's average, and sub-Saharan Africa lags behind other regions on all other main indicators of socio-economic development. Over the past two decades, in all but a few years, the region's economic expansion remained well below the population growth rate. Indeed, sub-Saharan Africa's real per caput GDP declined from US$630 in the early 1980s to about US$500 in 1994.
Against this background, the vastly improved economic performances in much of Africa in 1995 were the main positive feature of the current world economic landscape. The economic growth rate for that year in sub-Saharan Africa is estimated at about 3.8 percent, up from 2 percent in 1994 and 0.5 percent in 1993. In fact, it is the first time during the 1990s that the economic expansion for sub-Saharan Africa has exceeded the level of the yearly population growth rate of 3 percent. GDP growth rates of 5 percent or more were recorded in about one-quarter (12) of the countries in sub-Saharan Africa.
Underlying the region's improved economic performance was the dynamic behaviour of the export sector. The region's exports were boosted by higher export prices for non-oil primary commodities; the economic upturn, however modest, in developed countries (especially in western Europe to which two-thirds of the region's exports were directed); and, in the case of countries in the CFA franc zone, the devaluation of the CFA franc combined with remarkable success in containing inflationary pressure in the countries concerned (seven of the 12 countries with GDP growth above 5 percent are in the CFA franc zone - inflation rates for the zone as a whole were -0.5 percent in 1993, 33.0 percent in 1994, 11.8 percent in 1995 and are a projected 3.5 percent in 1996). Other contributory factors to the economic improvement were much-improved weather conditions in vast areas previously affected by drought, further progress in economic reform programmes in some countries and, to a certain extent, progress in intraregional cooperation (through both bilateral ties and the renewed emphasis on intraregional trade agreements).
While civil unrest and armed conflicts eased in some countries, particularly in southern Africa, new ones emerged or worsened in others. In Sierra Leone rebel attacks severely disrupted economic and agricultural activities. Civil strife and political crises also affected Burundi, Liberia, Somalia, the Sudan and Zaire. Coups and coup attempts in the Comoros, the Niger, Sierra Leone and Sao Tome and Principe also highlighted the fragile political situations prevailing in large parts of the region in 1995. Unsurprisingly, grave food shortages and food insecurity situations emerged in many of these countries, requiring emergency assistance from the international community (see World Review).
The agricultural sector dominates the economies of most countries in sub-Saharan Africa, contributing about one-third of the region's GDP and employing about two-thirds of the economically active population. As was the case for other sectors, however, the performances of agriculture have been faltering in recent years, following a disquieting long-term trend.
Preliminary data for 1995 suggest a less dynamic performance of agriculture than other economic sectors. Aggregate agricultural production was estimated to have expanded in 1995 by about 2.3 percent compared with 2.1 percent in 1994 and the exceptionally high 4.5 percent in 1993. However, a marked contrast was observed between the performances of export crops vis-à-vis food products. Indeed, the overall production increase accrued mainly to cash crop production. In particular, sub-Saharan Africa coffee production increased by 9.7 percent, cocoa by 7.6 percent, tea by 6.8 percent and cotton by 3.8 percent compared with 1994. Improved market and price conditions accounted primarily for the good performance of export crops. The 1994 devaluation of the CFA franc was also an important influence, as farmers in the CFA franc zone responded favourably to higher local prices paid for export commodities. The devaluation also contributed to an increasingly dynamic intrazone trade. In particular, Côte d'Ivoire and Cameroon benefited greatly from the expanded trade in 1995 with other CFA franc zone members. In addition, Senegal imported rice from Mali in 1995 rather than from Thailand, which had previously been its main supplier.
As regards food products, preliminary estimates indicate that production in 1995 virtually stagnated at the 1994 level, as the net result of an 11 percent fall in cereal production and expanded output of other food products. The cereal shortfall stemmed from a sharp (16 percent) decline in coarse grain production offset by increases in rice (7 percent) and wheat (9 percent).
Cereal production performances in 1995 varied substantially among subregions. While cereal production in western Africa declined slightly from 1994 levels, it increased by 15 percent in central Africa. In eastern Africa cereal production increased by 2 percent, with above-normal harvests in both Kenya and the United Republic of Tanzania, reduced increases in Uganda and Ethiopia and reduced crops in other countries. In southern Africa cereal production decreased overall by some 38 percent, although Botswana and Mozambique recorded cereal production levels close to those of 1994 and in Madagascar production actually increased. The coarse grain harvests were affected by the severe drought conditions in southern Africa which were prevalent until late 1995. The production of maize, the staple food, was sharply reduced - by more than 60 percent in South Africa and by over one-half in Zimbabwe - compared with 1994. In Zimbabwe 1995 was the fourth consecutive year of drought.
Crop expectations for 1996 are much improved in southern Africa, thanks to abundant rainfall in late 1995 which continued into 1996. In fact, a favourable crop season is expected throughout the continent, except for in those countries affected by civil strife. Agricultural recovery should contribute to a significant revival of the region's economy as a whole, expectations being for GDP growth in 1996 once again to exceed population growth by a significant margin.
In 1995, policy reforms continued in most countries. Various degrees of progress in liberalizing trade, price, foreign exchange and investment regimes in the context of structural adjustment were recorded in particular in Ethiopia, Ghana, Kenya, Tanzania, Uganda, Zambia and Zimbabwe. Reform, however, especially in the public sector, has been generally slow for technical and socio-political reasons: in Zimbabwe relations with the International Monetary Fund (IMF) became strained because of pressures for reform; in the Congo, Ghana and Djibouti there was social unrest; and in Benin, the parliament voted against a structural adjustment loan of US$98 million because of opposition to a programme of national marketing restructuring. These events underlined the difficult task of pursuing necessary but painful measures of reform in a region where the past record of achievements in this area remains at best inconclusive, margins for fiscal restraint are slim and large segments of the population are unemployed and/or close to subsistence levels. Indeed, only a few countries can be credited with clear progress in achieving stabilization and adjustment (Kenya, Mauritius, Uganda, Zambia and Ghana), while others still have a long way to go towards restoring macroeconomic equilibrium (notably Nigeria, Zaire, Tanzania and the Niger).
One difficult area of reform, with major implications for agriculture, has been the privatization of public enterprises. Such privatization has been an important precondition for obtaining structural adjustment lending from international financing institutions, since the dominant role of public enterprises in many sub-Saharan countries is seen as a significant factor behind poor economic performances. Indeed, a large proportion of lending from these institutions has been earmarked for privatization purposes. Most countries are still in the early stages of their privatization programmes, however. A major concern limiting progress in this area has been over the implications on employment, given the fact that the state is the main employer in many countries. It is generally assumed that, in the long term, better-managed and more profitable private companies may actually create jobs. The short-term problems are, however, how to re-employ or otherwise compensate public enterprise employees who initially lose their jobs as a result of privatization. As regards the latter, policies and procedures differ substantially from country to country - at one extreme Togo applies no compensation at all, while at the other extreme Guinea has an elaborate scheme in place.
Mozambique has the lead in sub-Saharan Africa regarding the total number of privatizations. Since 1992, more than 550 public companies, of which 45 are large ones, have been privatized. The privatization in Mozambique extended to agricultural enterprises such as those dealing in tea and copra. The rate at which firms have been sold off has increased recently and is expected to accelerate further in the near future. Companies up for sale in the second half of 1995 included large tea plantations of the state company Emocha, citrus groves, the Boror Copra plantations and processing plants. Finally, a new land policy approved by the government makes it possible to transfer land titles between citizens or from a foreigner to a national. While the principle that land is state-owned still prevails, the new policy is seen as a significant move towards privatizing land.
Other significant examples of privatization moves in 1995 include that of Côte d'Ivoire, where measures to liberalize the coffee-cocoa network were confirmed in August 1995. This represented a radical departure from the previous system instituted after independence, through which the marketing of these crops had been managed entirely by the state. The World Bank, France and Germany will provide financial assistance for this purpose and the government will no longer intervene in producer prices, which will instead be negotiated in the market.
In Uganda the government is turning to the private sector to revive its cotton and garment industry. Nine state industries operating in this area were put on sale and measures to liberalize cotton marketing were introduced. These are to be achieved with financial assistance, particularly from the International Fund for Agricultural Development (IFAD) and the World Bank.
In Mauritania the remarkable progress achieved by the agricultural sector in recent years has been largely attributed to a strong entry of the private sector and the privatization of agricultural credit. These have encouraged national authorities to aim for the difficult objective of achieving self-sufficiency in food by 2000. Major investment programmes are under way in irrigated agriculture, agricultural credit and environment projects with assistance from international financial institutions.
In Rwanda, after a period of paralysis following the civil war, market liberalization and privatization returned to the policy agenda and a national privatization commission has been created to deal with what is considered to be a particularly delicate issue. Supported by the European Union (EU) and international financing institutions, the state has significantly liberalized the coffee sector and authorized private-sector collection, transportation, processing, financing and exportation of the crop.
The Government of the Congo decided to privatize the fisheries sector, a decision that will entail the dissolution of the National Department for Continental Fisheries and SAGAP, a state management and vessel company, both agencies having encountered major financial difficulties for several years. It is hoped that the move will reduce the fish import needs of the country, currently in the region of 50 000 tonnes per year.
Finally, Senegal's national groundnut company, SONACOS, which after a particularly large turnover in 1994 had become the country's largest enterprise, is being put up for sale.
Along with the above important moves towards market liberalization and privatization, examples also abound of serious problems faced by governments, which have often forced them to backtrack on previous policy decisions in that direction. In many cases the process has been hindered by deteriorating economies and social protest at the rising cost of living. For instance, in Gabon price controls on essential food products (bread, rice, flour, sugar, milk, tinned sardines) were enforced in order to counter the effects of inflation and the imposition of value added tax (VAT), which led to huge price rises especially of rice. Similarly, Zimbabwe's consumer council pressed for the reintroduction of food subsidies and price controls, in the face of sharply rising prices of maize.
In other cases, the process of privatization was hindered by conflicting views on its effects. An example was the announcement in late 1995 that a large number of farmers in Kenya had dropped the state-owned Coffee Board, the only agency mandated to market Kenyan coffee, and turned to private marketing agents, raising a debate over the risks involved in dismantling the system. A strong body of opinion, chiefly among small farmers and cooperatives, believes that private traders, who may initially offer better purchasing conditions, would be free to manipulate prices once they have a firm grip on the market. Similarly, the ongoing debate over the privatization of the Cameroon state agencies SODECOM (cotton), HEVECAM (natural rubber) and SOCAPALM (palm oil) centres to a large extent on the implications of losing control over markets (as in the case of cotton already plagued by large illegal exportation) and the risks for farmers of losing employment and social services provided by those agencies.
BOX 9 Growing awareness of the long-term consequences of environmental degradation in Africa has prompted intense debate and a proliferation of new national and international initiatives to counter the problem. The ravages caused by recurrent droughts in recent years have created a new sense of urgency over the problems of desertification. Evidence of massive areas of forest land disappearing, and with them thousands of species of fauna and flora, have also induced national authorities to reinforce legislation to conserve the forests, limit timber cutting and exporting and encourage alternative uses for forests, such as wildlife tourism. Recent international action to address these problems has included that under the International Convention to Combat Desertification, drawn out on urgent request of the African representation at the United Nations Conference on Environment and Development (UNCED) (see section The threat of desertification on p. 70). Another important intraregional move in this direction has been the Desert Margins Initiative, initially involving Botswana, Burkina Faso, Kenya, Mali, Namibia and the Niger. More countries are to be included at a later stage. Led by six research centres with the participation of the Consultative Group on International Agricultural Research (CGIAR), the United Nations Environment Programme (UNEP) and other organizations including FAO, the project is intended to cover 1.3 billion ha and benefit 400 million people threatened by environmental degradation. Research is to be carried out in each of the countries concerned on various aspects of the problem and this will constitute the basis for coordinated policy action. At the national level, recent measures to prevent resource degradation included the adoption by Côte d'Ivoire of an environmental action plan for the period 1996-2010. The first phase (1996-2000) aims at finding solutions to the rapid disappearance of forests. The government is also considering issuing an environmental code to update current inappropriate and incoherent legislation. In Burkina Faso, under the reforestation programme initiated in 1994 with the objective of planting 15 million trees in five years, three-quarters of the 6 million trees planted so far have taken root. An additional million trees are being planted as part of the programme to combat desertification, with the participation of young volunteers from France and western Africa. The implementation of initiatives to preserve the environment has encountered considerable difficulties, however. These derive from both financial constraints and administrative weaknesses in the public sector and from the fact that, in a region beset by pressing economic problems, short-term profitability objectives tend to prevail over long-term conservation concerns. For instance, for years the Congolese Government has had a national forestation programme which has enabled 50 000 ha of savannah to be replanted, but the programme has been beset by enormous financial difficulties and has been able to limit to only a small extent the acute problem of deforestation, which is estimated to affect between 20 000 and 30 000 ha yearly of a total forest area of 20 million ha. Another example illustrating the dilemma that often faces governments in the region is the project to develop a large-scale titanium dioxide mine in Madagascar. On the one hand, the project would involve an investment of US$350 million, would create 500 direct and 1 500 indirect jobs and would yield up to $20 million a year to the government's treasury when fully operational. On the other hand, the project would mean considerable forest destruction and, according to the Minister of Environment, the likely disappearance of 23 species of fauna and 30 species of flora, several of them unique to that section of the forest. This would occur against a background of a past record of forest exploitation that has already resulted in the disappearance of 85 percent of the forest that once grew on the island. |
Burkina Faso is a landlocked country with a total land area of 274 000 km2. The topography of the country is characterized by its relative flatness with altitudes ranging from 125 to 749 m above sea level. The main characteristic of the climate is the scarce and irregular rainfall. The total population in 1995 amounted to 10.3 million, according to UN estimates, and had been growing at a rate of 2.8 percent over the preceding decade. Since colonial times labour migration, particularly to other countries of western Africa, has been a constant characteristic of the country so that today nearly half of Burkina Faso's nationals live abroad, making expatriate remittances a major source of foreign exchange.
With GNP per caput in 1993 estimated at US$300,1 Burkina Faso is one of the poorest countries in the world. The poverty of the country is also reflected in the low level of social indicators. In 1992 Burkina Faso ranked as number 169 out of a total of 174 countries in the United Nations Development Programme's (UNDP) human development index. Average life expectancy, infant mortality, adult literacy and school enrolment rates compare unfavourably with those of the least-developed countries and sub-Saharan Africa as a whole.2 The country faces major constraints to development with a poor resource base, unfavourable climatic conditions and low levels of human development.
Within sub-Saharan Africa the development experience of Burkina Faso presents a number of points of particular interest. The agricultural population still represents a larger portion (at more than 80 percent) of the total population than it does in the majority of African countries. Burkina Faso is also a country with a long tradition of relatively prudent macroeconomic management through which it has managed to avoid macroeconomic imbalances of the magnitude experienced by many other developing countries. It has achieved steady rates of economic growth, above those of Africa as a whole, even though it started at an extremely low level of development at independence
in 1960.
The government, with the assistance of the international lending organizations, is currently involved in a series of major policy reforms aimed at creating improved conditions for growth and development. The framework for current economic policies is provided by the structural adjustment programmes negotiated with the World Bank, together with sectoral adjustment programmes for the agricultural sector, the transportation sector, public sector management and the environment.
The role of the agricultural sector in the economy
Few countries are as dependent as Burkina Faso on agriculture. The contribution of agriculture and livestock to GDP was estimated at 27 percent in 1992, while a further 6 percent was accounted for by forestry, fisheries and hunting.3 At the same time, the food, beverages and tobacco industry represented 9 percent of GDP. Some 86 percent of the economically active population have agriculture as their main occupation; livestock production is the main occupation of a further 3 percent of the active population.
No less important is the role of the agricultural sector in the external accounts. In recent years the share of agricultural products in total merchandise exports has oscillated around 50 percent (Table 2). The main export crop, cotton, has in recent years accounted for around 70 percent of agricultural export revenues, with livestock products (mainly live animals and hides and skins) accounting for the bulk of the rest. The main exception to this pattern was observable in 1994, the year in which devaluation of the currency, the CFA franc, provided an immediate boost to livestock exports while cotton exports were slower to react.
On the side of imports, in recent years foodstuffs have accounted for a share of around 20 percent of total merchandise imports with cereals alone representing from 5 to 10 percent, depending on the year (Table 3). In years of adequate rainfall Burkina Faso is largely self-sufficient in cereals, the only major exception being rice, which is consumed mostly in the urban areas and for which approximately three-quarters of domestic food needs are met from imports. Cereal imports in the period 1990-94 have corresponded in volume terms to roughly 6 to 8 percent of domestic production and between 5 and 11 percent, depending on the year, of food needs.4 Imports of rice alone, however, represent between one-half (in years of high cereal import levels) and three-quarters (in years of lower aggregate import levels) of total cereal imports in quantum terms and between 65 and 85 percent in value terms.
TABLE 2 | |||||
Merchandise exports (billions of CFA francs) | |||||
1990 |
19911 |
19921 |
19931 |
19941 | |
Total merchandise exports Of which: |
96.4 |
75.9 |
62.2 |
74.3 |
125.4 |
Cotton |
23.4 |
29.3 |
25.0 |
22.2 |
32.8 |
Livestock products |
9.5 |
8.2 |
8.7 |
8.2 |
32.9 |
Other agricultural products |
1.7 |
1.1 |
2.7 |
2.5 |
5.2 |
1 Estimates. | |||||
TABLE 3 | |||||
Merchandise imports (billions of CFA francs) | |||||
1990 |
19911 |
19921 |
19931 |
19941 | |
Total merchandise imports Of which: |
141.8 |
138.4 |
131.1 |
133.4 |
202.7 |
Cereals |
9.4 |
13.4 |
12.2 |
9.9 |
14.7 |
Other food products |
17.1 |
11.5 |
10.8 |
18.2 |
31.0 |
1 Estimates. | |||||
Characteristics of the agricultural sector
Agriculture is essentially rain-fed and dependent on limited rainfall which in addition is highly irregular in both time and volume. Average annual rainfall ranges from a minimum level of approximately 400 mm in the northernmost part of the Sahelian zone to about 1 200 mm in the southeast. About one-third of the total land area is cultivable. The potential for irrigation is estimated at 165 000 ha, of which only one-tenth is currently utilized.
Agriculture in Burkina Faso is to a large extent a subsistence agriculture and is centred on cereal production for domestic consumption. Indeed, out of a total cultivated area of 3 431 000 ha, 3 014 000 ha (88 percent) are planted to cereals as the main crop.5 The most important cereals produced are millet, which occupies some 43 percent of the total area planted to cereals, followed by white sorghum, occupying 38 percent of cereal area, red sorghum (10 percent) and maize (6 percent). Rice covers less than 1 percent of the area planted to cereals. After cereals, the largest portion (347 000 ha) of remaining cultivated area is occupied by cash crops. Some 120 000 ha are planted to cotton, but because of climatic constraints these areas are concentrated in the western part of the country. Groundnuts, which cover 217 000 ha, are produced across the country and are commercialized mostly within the country itself. Other, less important, cash crops are sesame and soybean, while smaller areas are occupied by fruit, vegetables and root crops. The above distribution of cultivated area is, however, simplified from a somewhat more complex reality, which is that of mixed cropping.
Livestock production is practised across the entire country and comprises cattle, sheep, goats, donkeys, pigs and poultry. Livestock numbers are not known with precision but were estimated in 1995 to be about 4.4 million head of cattle, 5.8 million sheep, 7.2 million goats, 500 000 to 600 000 pigs and 400 000 to 500 000 donkeys. Cattle raising is to a large extent transhumant, particularly in the Sahelian zones of the country.
As well as unfavourable climatic and environmental conditions, agricultural and livestock production are seriously constrained by archaic and low-technology methods of production and the low education levels of producers. Agriculture is based on small-scale family farming. Some 72 percent of agricultural households are composed of more than six persons and households of 20 or more members represent 7 percent of the total.6 No less than 87 percent of agricultural household heads are illiterate and only some 36 percent of household heads have links with extension services (the percentage is even lower for female family heads).
BOX 10 The natural resource base for agriculture in Burkina Faso is facing increasing pressures. Two major problems are water scarcity and population pressure on the land, phenomena which present themselves in different degrees and with somewhat different implications in the various regions of the country. Since the early 1970s and the period of prolonged drought 1970-73 a decrease in rainfall levels has been observed. Among the consequences of this are a diminishing potential for agricultural production and smaller quantities of surface water leading to a reduction in the recharging of groundwater and a consequent decline in the water table to the order of 20 m since 1970. In addition, the reduction in vegetative cover has led to overgrazing in the traditional Sahelian livestock area to the north of the country and to the movement of grazing to areas further south. Population pressures have reduced per caput availability of land, causing land to be worked beyond its capacity. This is the case especially for the central areas of the country which have particularly high population densities. Among the consequences are a reduction (or elimination) in fallow time and the underutilization of production factors that enhance soil fertility. Other effects are massive land clearing and conversion of pasturelands to crop production as well as emigration to the less densely populated southwestern areas of the country. In these areas the natural environment has been profoundly modified by the introduction of cash crops, human settlements and increasing livestock herds in ways that do not adequately consider the need for conservation of productive resources and, in the longer term, threaten the productive potential of the area. The rate of deforestation has been rapid. Over the last 15 years (from 1980 to 1995) Burkina Faso has lost more than 50 percent of its forest cover. The government estimates the forest area cleared for agricultural purposes at more than 50 000 ha a year, while shortages of fuelwood are increasing. Concern for the environment led to the adoption in 1991 of the first National Plan of Action for the Environment, which was subsequently revised in 1993 following UNCED held in Rio de Janeiro in 1992. Recently the government has taken steps to strengthen its capacity for devising and implementing environmental policies with the institution of a new Ministry for the Environment and Water. In late 1995 the new ministry was in the process of preparing a global strategy paper for the environment and water, some of the main elements of which would concern the implementation of the International Convention on Desertification Control, reforestation and forest management and water management, with the priority to be given to the rehabilitation and maintenance of existing infrastructures. |
Landholdings are extremely fragmented; each household farms an average of 9.6 plots of land, the average size of which is approximately 0.4 ha. Farm equipment is very limited; less than 30 percent of households own a plough (the total number of tractors in use in the country was estimated at 135 in 1993) and 70 percent of families own no traction animals (oxen or donkeys). Likewise, fertilizer use is restricted. Nitrogen, potassium and phosphate fertilizers (NPK) and urea are applied. Total NPK use is estimated at about 26 000 tonnes, corresponding to 7.5 kg per hectare of total cultivated area. Use is concentrated on cash crops (mainly cotton), however, and total NPK application corresponds to 74 kg per hectare sown to cash crops.
Historic performance of the economy and the agricultural sector
Although still at very low levels by international comparisons, in terms of incomes and social indicators, Burkina Faso has nevertheless achieved steady but slow economic progress since independence in 1960. GDP growth has been consistently higher than the average for sub-Saharan Africa, although subject to quite significant annual fluctuations caused by the dependence of the most important economic sector, agriculture, on erratic weather conditions. Thus, GDP increased in real terms by an average annual rate of 4.4 percent over the period 1970 to 1980 and 3.7 percent from 1980 to 1993, compared with rates for the two periods of 3.8 and 1.6 percent respectively for the whole of sub-Saharan Africa.7 This means that, in spite of a certain slow-down of growth in the 1980s relative to the preceding decade, Burkina Faso, unlike the subcontinent as a whole, maintained positive rates of per caput GDP growth. This was achieved in a context of moderate inflation, with an average annual rate for the 1970-1980 period of 8.6 percent compared with a weighted rate of 13.8 percent for the whole of sub-Saharan Africa. Over the period 1980 to 1993 Burkina Faso saw the average rate of inflation decline to 3.3 percent, while the weighted average for the whole of the sub-Saharan region increased to 16.1 percent. The merchandise trade performance of Burkina Faso has also been consistently superior to that of the subcontinent as a whole, with merchandise exports increasing at an average annual rate of 7.2 percent (compared with 1.0 percent for sub-Saharan Africa) over the period 1970-1980 and 4.1 percent (compared with 2.5 percent) from 1980 to 1993.
The relatively high rates of per caput growth are also reflected in improvements in a number of social indicators, which nevertheless tend still to compare unfavourably with the averages for sub-Saharan Africa. Thus, for example, life expectancy at birth increased from 36 years in 1960 to 47 in 1992, compared with an increase from 39 to 51 for the whole of sub-Saharan Africa, while the infant mortality rate per 1 000 live births fell from 205 in 1960 to 130 in 1992 (from 165 to 97 for the whole subcontinent).8 Over the period from 1970 to 1992 the adult literacy rate doubled from 8 percent to the still modest rate of 17 percent, while the improvement made by the whole of the subcontinent over the same period was a doubling from 27 to 54 percent.9 Quite a significant improvement has, however, been achieved particularly in the primary education enrolment rate, which from an extremely low level of 13 percent of the age group in 1970 was brought up to 31 percent in 1992, while the whole of the subcontinent managed an increase from 50 to 67 percent. At the secondary level, education enrolment rates over the same period were brought from 1 to 8 percent, compared with an increase from 7 to 18 percent for the whole of sub-Saharan Africa.10
The contribution of the agricultural sector to overall economic growth has not been uniform throughout the postindependence history of Burkina Faso. Amid major annual fluctuations, imputable primarily to uncertain climatic conditions, agricultural production rose only 1.2 percent during 1961-1984, well below population growth. Agricultural production growth accelerated from 1984 to 1994 to an average annual rate of 4.8 percent, with a particularly strong expansion in 1985, but with a certain slow-down after 1992. Per caput food production over the same period increased annually by an average 2.1 percent. The major factor behind the accelerated growth was cereal production, which increased from 1984 to 1994 by an annual rate of no less than 6.9 percent, following the mere 1.3 percent per annum recorded from 1961 to 1984. This rapid rise in production was the result of increases both in harvested areas (3.8 percent annual expansion compared with 0.3 percent annually from 1961 to 1984) and in yields (2.9 percent per annum compared with 0.9 percent during 1961-1984). In particular maize production expanded very significantly over the decade 1984-1994 with an annual growth rate of 14.0 percent (8.7 percent in yields and 4.8 percent in area harvested), although this cereal still covers only 10 to 15 percent (according to the year) of total cereal production in tonnes. Other coarse grains, millet and sorghum, however, contributed the bulk of the total increase by expanding by 5.8 and 6.4 percent per annum respectively. Among cereals a much more limited expansion of 3.9 percent per annum was recorded for rice, as area expansion was restricted to an annual rate of only 1.6 percent.
Agricultural production growth from 1984 to 1994 has not been restricted to cereals however. At the same time, production of the most important cash crops expanded, with cotton production increasing by an annual rate of 3.7 percent, although it peaked in 1990, and groundnut production expanding at a rate of 6.0 percent.
The accelerated agricultural and food production growth from the mid-1980s translated into a significant increase in per caput dietary energy supplies, which through a particularly strong improvement in 1985 and 1986 shifted from an average level (although with significant annual fluctuations) of 1 600 to 1 700 calories per caput per day during the decade 1975-1984 to 2 100 to 2 200 calories in the period 1986-92.
The marked acceleration in agricultural production growth since the mid-1980s was largely the result of new development policies based on a strong participatory grassroots approach, embodied initially in the new Programme Populaire de Développement for 1983-84. These policies granted absolute priority to agricultural and rural development with 44 percent of the investments foreseen by the programme allocated to agriculture and water development.11 The focus on agriculture was continued with the Plan Quinquennal de Développement Populaire 1986-90, under which approximately 42 percent of the investments executed went to rural areas.12 The heavy investment focus on agriculture translated, inter alia, into the construction of a large number of small- and medium-scale water reservoirs. The investment efforts in the agricultural sector were accompanied by other policy measures in support of the sector in fields such as dissemination of production techniques, strengthening of farmers' organizations and improved producer prices.
Current economic policies: structural adjustment
As in many other developing countries, current economic policies in Burkina Faso are conducted within the framework of structural adjustment programmes agreed with the Bretton Woods lending institutions. Compared with most other African countries, however, Burkina Faso came relatively late to "orthodox" structural adjustment. Preparations for a World Bank-supported structural adjustment programme began in 1988, with actual negotiations with the Bank starting in 1989 within a context of a far lower degree of economic emergency than was the case in the majority of other countries.
Since 1984 macroeconomic policies had been characterized by attempts at self-imposed economic adjustment without external assistance, aimed at restoring fiscal discipline and reducing the budget deficit while at the same time promoting the productive sectors of the economy (in particular agriculture) and improving social services and education.13 Overall performance of the economy during the period 1984-1988 had not been unsatisfactory, with favourable GDP growth rates accompanied by low rates of inflation and, in particular, significant increases in agricultural production. Nevertheless, in spite of an initial significant improvement in 1985, the budget deficit in the following years remained persistent, while payments arrears accumulated. From the point of view of the external accounts, although the current account (excluding grants) gradually worsened during the second half of the 1980s, external indebtedness remained moderate. Indeed, in 1989 the total external debt stock corresponded to 33 percent of GNP and total debt service to 9.6 percent of exports of goods and services.14
Structural adjustment in Burkina Faso differs from that of most other countries not only in the overall less critical macroeconomic situation in which it was implemented, but also in the modalities and timing of its preparation. Indeed, the absence of a real economic emergency situation, in spite of the worsening internal and external imbalances, allowed a careful preparation of the programme, in particular at the political level. For this purpose, the government took the time to submit the proposed structural adjustment programme deliberately to open debate by the civil society and to provide careful information to the public prior to the programme's finalization in order to ensure widespread support. Thus, with initial contacts with the World Bank dating from early 1988, the government drew up its own proposed adjustment programme in September 1989 and a final agreement with the World Bank was reached in March 1991.
The first structural adjustment programme covered the period 1991-93 with the quantitative goals of an annual GDP growth rate of about 5 percent throughout the period, a current account deficit (excluding transfers) not exceeding 12 percent of GDP (compared with the 10-11 percent prevailing at the beginning of the programme)15 and a rate of inflation to be kept within 3 percent (a rate of some 3.2 percent was recorded in 1991). At the same time the budget deficit was to be reduced to 1 percent of GDP by 1997 from the 2.4 percent estimated in 1991. Other objectives were the elimination of national and foreign debts and an attack on some of the major constraints to sustainable economic growth, such as the high rate of demographic growth, the poor development of human resources and environmental degradation. The strategy envisaged for reaching these objectives was centred on improved management of public finances, increased agricultural production, stronger incentives for investments and private enterprise, the promotion of human resources through better education and health services and enhanced management capacity in the public sector. The first structural adjustment programme for 1991-93 was followed by a subsequent one for the period 1994-96.
Within the context of structural adjustment a number of reforms have been undertaken or are envisaged in various sectors and fields of economic management. These include budget reforms - affecting, on the one hand, revenue collection through reforms of taxation and customs tariffs and, on the other hand, improved expenditure control and management - restructuring of the banking system and restructuring and privatization of public enterprises. Another important area of reform, where significant steps have been taken, concerns liberalization of external trade and prices which, together with a revised investment code and new (enacted or under preparation) commercial and labour codes as well as legislation on land security, aim at stimulating private investment and enterprise. Within structural adjustment, particular emphasis has also been put on the development of human resources with the reallocation of budgetary expenditures in favour of education and health. The structural adjustment programme has been accompanied by a series of sectoral adjustment programmes, most notably a sectoral adjustment programme for agriculture, a national plan of action for the environment, a sectoral adjustment programme for transport and a programme for promotion of the private sector.
In the middle of the structural adjustment process the devaluation of the CFA franc in January 1994, with a change in parity with the French franc from 50 CFA francs to 1 French franc to 100 CFA francs to 1 French franc, introduced a new element into the macroeconomic context and enabled Burkina Faso's economy to improve its international competitiveness significantly while contributing to restoring external balance. Among the expected benefits were increased production and exports of cash crops such as cotton, fruit and vegetables, groundnuts and other oil crops as well as of livestock products. This should be accompanied by reduced imports of foodstuffs, especially rice, together with a stimulus to domestic production and a shift in consumption towards locally produced cereals. Other expected effects were a shift in import composition towards intermediate goods and inputs and an overall improvement in the trade balance and the balance of payments.
Current economic policies, as spelled out in the government's Policy Framework Paper for 1995-97 endorsed by the IMF, are in the direction of further efforts towards reducing financial imbalances and a deepening of economic and structural reforms to improve the economic competitiveness of the country, liberalize the economy and improve public-sector management. Among the quantitative policy objectives for the period are an annual real GDP growth rate of 5 percent, a consumer price inflation rate of 3 percent and a current account deficit not in excess of 12 percent of GDP. The deepening of the structural reforms and of economic liberalization is hoped to lead to a consolidation of the gains in competitiveness resulting from the CFA franc devaluation and accelerated growth in exporting and import substituting sectors. The main objecitves of the continued reform efforts are planned to be in the improvement of government efficiency and financial management, further deregulation of the economy, the development of health services and education and the strengthening of basic infrastructures.
Recently the Government of Burkina Faso, recognizing the insufficient progress in improving the living conditions of the population, has put added emphasis on policies for human development. The new emphasis is expressed by the Letter of Intent on a Policy for Sustainable Human Development 1995-2005, presented to the donor community at the third round table conference of Burkina Faso with its aid donors, held in October 1995. The Letter states the government's main objectives and strategies for human development, while indicating that additional studies will be needed to lay out the strategic guidelines and formulate specific programmes and projects. It emphasizes an appropriate macroeconomic setting as a precondition for reducing poverty and stresses the need for continuing current macroeconomic and structural reforms. The fairly ambitious main objectives laid out for the year 2005 are to increase per caput GDP by at least 3 percent per annum, to double the literacy rate from 20 to 40 percent of the population and to add about ten years to life expectancy. The Letter spells out the main elements for the development of human resources on the basis of sustainable economic growth: a strategy for containing population growth; policies for job creation and income generation; an enhanced role for women; and improved access to education (with the objective of increasing the school enrolment to 60 percent by 2005), health services and drinking-water. The government estimates the financial resource requirements to meet the objectives at 68 billion CFA francs per annum from 1996 to 2000 and 102 billion CFA francs from then to 2005.
Agricultural policies: sectoral adjustment
Reforms in the agricultural sector and in agricultural policies are an integral and essential component of the ongoing economic policy and structural reforms. Preparatory work on a sectoral adjustment programme for the agricultural sector began in 1989 leading to the formulation of a programme, endorsed by the World Bank in 1992, containing a series of measures to be implemented over a three-year period.
The three main objectives for the 1992-95 agricultural sector adjustment programme were: modernization and diversification of production; strengthening of food security; and improved management of natural resources. To achieve these objectives the programme laid out five main lines of policy action: intensification of production and natural resource management; liberalization of trade and prices for agricultural products and inputs; restructuring of the institutional environment; improved efficiency in public finances; and consolidation of a food security policy. These were translated into a series of specific actions, to be undertaken in the course of the programme, affecting the main agricultural subsectors. Almost all of the proposed actions had been implemented by late 1995.
In the context of the sectoral adjustment programme for the agricultural sector a series of important reforms have already been carried through. For the purpose of improved resource management, new framework legislation and regulations on agrarian organization and community land management have been introduced, although large-scale implementation and application of such legislation must necessarily be a longer-term proposition and traditional systems for land-use rights and land management remain the rule. Major liberalization has taken place in trade and price setting. The measures adopted include the elimination of all export monopolies on agricultural products except cotton and of all import monopolies except for rice (although in late 1995 a partial opening of rice imports to private traders was agreed), wheat and sugar. In addition, the state fixing of producer prices and approval of retail prices were eliminated and trade in agricultural inputs was liberalized. Administrative obstacles to exports have been lifted and export taxes on livestock and meat abolished.
Other measures include the putting in place of regulations governing private supply of veterinary and pharmaceutical products as well as the introduction of market prices on behalf of the parastatal Office National d'Approvisionnement et de Distribution des Intrants Zootechniques et Vétérinaires (ONAVET). At the same time, work, partly preparatory, is being carried out to reorganize the institutional environment for the agricultural sector, with the disengagement of government and the reformulation of its activities, focusing on research, extension and advisory services, agricultural training, land-use and natural resource management and the creation of infrastructure. The majority of other government interventions are to be transferred to producers' associations and private operators. This has been accompanied by efforts to improve public financial management in the sector. In addition to the sectoral programme for agriculture as such, important activities for the sector are being implemented within the context of the sectoral programme for the transport sector, with an increase in budgetary allocations for road maintenance and construction.
Of particular importantance, given the crucial role of the sector, are reforms undertaken in the cereal sector. Until recently the government had an interventionist role in the sector, attempting to control or influence prices. The national cereal agency, Office National des Céréales (OFNACER), was responsible for distributing food aid, managing national food security cereal stocks, guaranteeing prices to producers and stabilizing prices. The interventions of OFNACER on the domestic market were, however, generally of limited effect, as purchases were effected at fixed official prices but with funds that were too scarce to allow any appreciable market impact. In June 1994 OFNACER was liquidated within the context of a complete restructuring of the cereal market.
The cornerstones of the new cereal market policies are the liberalization of prices and trade in cereals and an enhanced role for the private sector in marketing and stocking (both at the village level and commercially). Up to now, the main exception to the liberalization of trade and prices has been rice, which occupies a special situation in the food balance of the country being the only major cereal the majority of which is imported. Rice occupies a significant place in the consumption pattern in urban areas, and the increasing levels of consumption, together with the consequent increasing import bill, have given rise to concern. Hence the caution in liberalizing this subsector, alongside special efforts now being devoted to expanding domestic production favoured also by the improved competitive position of domestically produced rice, following the CFA franc devaluation in 1994. Thus, in 1995, domestic prices for rice continued to be controlled and imports to be subject to monopoly. Nevertheless, late in the year a partial opening of imports to private traders was decided as the first step in a gradual liberalization of imports.
Together with the liberalization of the cereals market, a new institutional framework has been established for conducting and monitoring cereal and food security policies in close coordination with the donor community and the private sector. A committee, with a permanent secretariat, for consultation and monitoring of such policies, Comité de Réflexion et de Suivie de la Politique Céréalière et de Sécurité Alimentaire (CRSPC), has therefore been instituted with the participation of the government, external donors and representatives of national private agents and non-governmental organizations (NGOs) intervening in the cereals subsector. A newly created company, Société Nationale de Gestion du Stock de Sécurité Alimentaire (SONAGESS), has been charged with managing national food security cereal stocks of 35 000 tonnes and financial resources allowing the purchase of a further 25 000 tonnes. Emergency and rehabilitation interventions for food security are to be conducted by a national committee for emergency aid and rehabilitation, Comité National de Secours d'Urgence et de Réhabilitation (CONASUR), which in case of emergency takes charge of cereals from the stocks managed by SONAGESS. Types of intervention envisaged, depending on circumstances, are free distribution and sales at subsidized or market prices. A coordination committee for information on food security, Comité de Coordination de l'Information pour la Sécurité Alimentaire (CCI), is responsible for an integrated information system. It manages and coordinates the generation of information necessary for the management of food security policies. In this context the statistical department of the Ministry of Agriculture and Animal Resources prepares a monthly bulletin on the food situation and has been working to improve its early warning system through a diagnostic model developed by the department with the assistance of the World Bank.
Cereal and food security policies are supported by a cereal development fund, Fonds de Développement Céréalier (FODEC), which is constituted from national budgetary allocations, counterpart funds from food aid and financial assistance from donors and is managed by a committee with equal representation of the government and donors. FODEC funds are used to finance emergency food distribution and the national food security stock managed by SONAGESS, as well as to finance activities for the promotion of the cereal sector. The latter include the opening of credit lines to support the production, transformation and distribution of cereals, as well as contributions to the financing of projects for cereal development.
With implementation of the first sectoral adjustment programme for agriculture largely carried through, work has been under way for the preparation of a second adjustment programme, to take effect in 1996. The main lines of policy action will remain unchanged, while the reforms commenced under the first sectoral adjustment programme will be continued and deepened. Among the areas to be emphasized in the new programme are the restructuring of agricultural services - comprising both central structures within the Ministry of Agriculture and Animal Resources and technical support services to producers - and the development of a rural credit system, for which studies are currently under way and which should lead to the formulation of concrete policy proposals. At the same time the process of privatization of parastatals and publicly owned companies in the sector will be continued. Other areas subject to preparatory studies with a view to policy formulation are the distribution of inputs and technical equipment, the enhancement of professional capacities in the rural areas and the levels of tariff protection to be applied to imported food products (rice, wheat, sugar) and agricultural inputs subsequent to liberalization of the import regimes.
Following the CFA franc devaluation, particular importance is assumed by the strengthening of the export sectors, which have seen their potential enhanced. This applies to the traditional main export sectors, livestock and cotton, but also to fruits and vegetables, for all of which measures of promotion and strengthening are envisaged in the context of the new agricultural adjustment programme. In addition, it is proposed to undertake a study on support to the oilseeds sector (groundnuts, sheanuts, sesame). These have a potential as cash crops, largely complementary to food crops and not as geographically limited as cotton, that is largely underexploited as a result of underdeveloped production techniques and support and distribution services.
Overall, the impact so far of policy reforms and the devaluation in terms of reducing macroeconomic imbalances has been positive if somewhat short of expectations. In particular, a reduction has been recorded in the external trade deficit since the beginning of the decade, while the current account deficit has been kept within the set limits of 12 percent of GDP.16 The major danger arising from the devaluation, that of a fuelling of inflation, appears to have been controlled as the inflation rate was reduced in 1995 after an initial, expected, rise in consumer prices in 1994 of 25 percent. The budget deficit, on the other hand, has been more persistent than planned and actually increased between 1990 and 1994.
The economic reform efforts have been slower than hoped for in providing a sustained stimulus to economic growth. Indeed, the real GDP growth rate was only 1.2 percent over the period 1992-94 following a jump of close to 10 percent in 1991.17 An acceleration in GDP growth occurred in 1995 with the rate of expansion for the year projected at 4.3 percent,18 lower however than the average of 5.5 percent estimated by IMF for the entire West African Economic and Monetary Union (UEMOA).19 This expansion in 1995, however, occurred in spite of a 1.6 percent drop in cereal production, as production of other crops, particularly cotton and groundnuts, increased significantly and contributed to a 6 percent expansion of the primary sector.
As regards the devaluation, an FAO study on its impact conducted in 1995 concluded that some 18 months later an increase had taken place in the area planted to export crops (cotton) and import competing crops (rice). An increase was also detected in exports of cotton, livestock, hides and skins, oil crops and fruit and vegetables, as well as a reduction in imports of rice and dairy products, which would probably have been bigger had the government not prevented the increased import prices from feeding fully through into consumer prices. At the same time, agricultural input prices also recorded increases. For local cereals, on the other hand, no effect on prices or production was yet discernible, largely the result of the existence of significant stocks from previous crop years and of the only partial transmission of price increases for imported cereals on to consumers. On the consumption side, in urban areas a decrease had taken place in consumption of meat and imported foodstuffs, while consumption of local cereals had increased. Low-income urban households had been forced to reduce overall food consumption, however, following the increase in the overall consumer price index.
Although there are signs of a recent acceleration in economic growth following economic reforms and the currency devaluation, it must be emphasized that economic performance and the adjustments in the economy over the period following the devaluation are the combined results of many other factors. It should be borne in mind, inter alia, that the devaluation coincided with a strengthening of international commodity prices affecting, among other products, cotton, and that this provided an additional stimulus to the export sector. With cotton prices having peaked in the second quarter of 1995 this additional favourable price effect for Burkina Faso's major export commodity is fading.
In any case, it would still be too early to make any conclusive judgement on the medium- to long-term effects of either the devaluation or the structural reform efforts. Such sharp changes in relative prices in the economy as those introduced by the devaluation implies the need for major adjustments in production and consumption patterns in the economy. These adjustments necessarily require time. The same would apply to the impact of the structural reforms undertaken across the economy as a whole and within the agricultural sector. Particularly in the agricultural sector, where sectoral adjustment has been under way for a shorter period and is still being pursued, it is still too early to expect a significant impact. In the medium term, however, the structural adjustment efforts and the currency devaluation should have a mutually strengthening impact. Indeed, if inflationary pressures can be kept under control, Burkina Faso seems well placed to consolidate the competitive gains deriving from the devaluation.
The Government of Burkina Faso is itself optimistic as far as future growth prospects are concerned. This is expressed by the GDP growth objective for 1995-97 of 5 percent per annum that was spelled out in the Policy Framework Paper for 1995-97 and even more by the objective expressed in the Letter of Intent on Sustainable Human Development of increasing per caput income from the current US$300 to $500 by 2005 through a further gradual acceleration in GDP growth to reach 8 percent per annum from the year 2000 onwards. Although GDP growth objectives spelled out in the past structural adjustment programmes have until now not been met, the 5 percent per annum medium-term growth objective does not seem unrealistic if the process of determined policy reforms is carried forward. Such a growth rate is after all not far from rates historically achieved, such as the average annual rate of about 4.5 percent recorded from 1982 to 1987 and during the 1970s. Although the higher growth objectives of the government for the following years may seem excessively optimistic, the possibility for Burkina Faso of ensuring consistent gains in per caput income in the medium term does seem within reach.
Burkina Faso has been making extremely determined efforts at reforming its economy and laying the foundations for sustained long-term economic growth. Given the country's high degree of dependence on agriculture, reforms in this sector are a crucial element of the adjustment efforts, just as there can be no doubt that for many years agriculture will continue to have to provide the main contribution to economic growth and to the livelihood of the population.
In spite of its extreme poverty and its poor resource base, Burkina Faso has a number of political and social assets that provide reasons for optimism for the years to come. As mentioned above, the country has a tradition of serious and credible economic management which, among other things, has prevented it from running into persistent macroeconomic imbalances of the magnitude experienced by many other developing countries in Africa. Aspects of this are the recognized integrity in the management of public affairs and the fact that corruption, a pervasive phenomenon elsewhere, is recognized as being marginal in Burkina Faso. This tradition should only be further enhanced by the establishment of democratic institutions in 1991. The country likewise has a tradition of participatory development based on community participation from which a strong associative movement has emerged. This is accompanied by a strong commitment to social objectives in development efforts and the similarly strong attention traditionally paid to environmental protection.
The long-term development of the country will continue to depend critically on the overcoming of some serious constraints. Notable among these are the environmental constraints and the still very poor degree of human development in terms of levels of general education and access to adequate health services. The latter, in particular, appears as a critical factor for development, the progress already made since independence notwithstanding. Continuous determined efforts in economic reform and human development, with particular emphasis on agricultural and rural development, will hold the key to sustained economic growth in the long term. In pursuing these efforts, Burkina Faso needs and deserves the full support of the international community.
1 World Bank. 1995. World Development Report, 1995. Washington, DC.
2 Ibid.
3 Institut National de la Statistique. 1994. Annuaire Statistique du Burkina Faso. Ouagadougou.
4 Calculated on data from the Ministry of the Economy, Finance and Planning.
5 Estimates of cultivated area come from the Division of Agropastoral Statistics of the Ministry of Agriculture and Animal Resources. 1995. Enquête Nationale de Statistique Agricole, Rapport Général. Ouagadougou.
6 This and the following data are from the Department of Agropastoral Statistics of the Ministry of Agriculture and Animal Resources. 1995. Enquête Nationale de Statistique Agricole, Rapport Général. Ouagadougou.
7 World Bank, op. cit., footnote 1, p. 108.
8 UNDP. 1995. Human Development Report 1995. New York.
9 Ibid.
10 World Bank, op. cit., footnote1, p. 108.
11 See P. Zagré. 1994. Les politiques économiques du Burkina Faso, une tradition d'ajustement structurel. Paris.
12 Ibid.
13 From January 1985 to July 1988 no new loan to Burkina Faso was approved by the World Bank, see P. Zagré, p. 164, op. cit., footnote 11.
14 World Bank. 1995. World Debt Tables 1994-95. Washington, DC.
15 Data from the Ministry of the Economy, Finance and Planning.
16 According to data from the Ministry of the Economy, Finance and Planning.
17 Ibid.
18 Projection by the Ministry of the Economy, Finance and Planning.
19 UEMOA comprises Benin, Burkina Faso, Côte d'Ivoire, Mali, the Niger, Senegal and Togo.
