Niger - Annual progress report of the Poverty Reduction Strategy and Joint assessment - Advisory note on the annual progress report

In 2003-04, Niger continued to implement its reform agenda, which is guided by the four strategic pillars of its Poverty Reduction Strategy (PRS). Fiscal imbalances were slightly reduced, steps were taken to strengthen economic governance, important structural reforms were initiated, and, social indicators were moderately improved. Moreover, key sectoral strategies premised on the 2002 PRSP were prepared in collaboration with the Bank, and, steps were taken to harmonize programs supported by development partners with the PRS. Despite these achievements, there is a long way to go to fully implement the PRS, and achieve its objectives. The economy remains susceptible to external shocks, macroeconomic imbalances are still relatively large, and the implementation of key structural reforms has been slow. Also, notwithstanding progress in developing growth-enhancing strategies for key sectors, such as the rural and infrastructure sectors, related programs are yet to be costed, and other complementary strategies in export promotion and tourism development are yet to be fully defined. Moreover, other shortcomings, including lack of adequate understanding of the poverty profile, and the impact of growth on poverty, have yet to be fully addressed. Further, despite the open, transparent, and consultative manner in which the PRSP and its progress reports were prepared, the process continues to be weak in several respects, including lack of adequate coordination with key stakeholders such as nongovernmental organizations (NGOs) and regional authorities. Looking ahead, the above-noted concerns should be addressed to enhance the effectiveness of reforms, and move forward the full implementation of the PRS. This annual progress report broadly reflects Niger's achievements and shortcomings in the implementation of the PRS, and underscores the authorities' commitment to address identified weaknesses in its implementation. Recommendations include: updating of poverty analysis; expeditious implementation of the growth-enhancing strategies; continued reduction of the fiscal deficit in 2005 by expanding the tax base; improvement in the preparation of budget programs; adoption and implementation of the priority action plan for improving public finance management; adoption of a strong population and reproductive policy; and, continued integration of the President's Special Program into sectoral strategies.