Benin - Second Poverty Reduction Strategy Paper Joint Staff Advisory Note
Bossone, Biagio | Cirasino, Massimo
Benin's Second Poverty Reduction Strategy Paper, the Strategie de Croissance pour la Reduction de la Pauvrete (SCRP), provides a good framework for implementing the Government's growth and poverty reduction agenda over the next three years. The SCRP notes that progress under the previous PRSP was mixed. It points out that the fiscal position strengthened during the period, while growth slowed to less than half of the targeted goal. Regarding the mixed results on the social front, the SCRP concludes that the new strategy should improve the institutional framework, budget management, and personnel management for basic services. Benin's external debt sustainability improved considerably. The SCRP sets a good base for monitoring and assessing Benin's performance. It provides key indicators that allow government, civil society, and development partners to assess progress. It presents an extensive institutional framework for implementation and monitoring which builds on existing institutions and usefully defines a role for local officials in the process. The challenge facing the authorities will be to ensure these institutions function as designed. The SCRP faces certain implementation risks. The most important of these relate to the lack of capacity to steer reforms within the sectors and coordinate reforms across sectors. The SCRP could be strengthened in future progress reports. It could provide concrete measures to diversify the economy, stress the need to accelerate reforms in utilities and network services, and improve analysis of new poverty data. To facilitate the achievement of key objectives, the authorities should establish appropriate institutions that implement, monitor, and evaluate progress under the strategy. In considering the authorities' PRSP and associated JSAN, Executive Directors' views are sought on whether they agree with the main areas identified by staffs as priorities for strengthening the PRSP and its implementation and the areas identified as key implementation risks.
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