Niger - Second Poverty Reduction Strategy and joint IDA-IMF staff advisory note

In January 2002, the government of Niger adopted a Poverty Reduction Strategy (PRS) aimed at diminishing the incidence of poverty and improving the living conditions of the people. The Accelerated Development and Poverty Reduction Strategy (SDARP) provides a thorough poverty diagnosis and presents sectoral plans, reform policy measures, costing, and a policy matrix for 2008-2012, which is linked to achievement of the Millennium Development Goals (MDGs). It also examines the constraints and risks to its implementation. The SDARP has an adequate focus on slowing down population growth which was omitted in the previous Poverty Reduction Strategy (PRS), an important shortcoming in a country which has one of the highest fertility rates in the world. The SDARP acknowledges the significant challenges to achieve the MDGs. The strategy also stresses the importance of pursuing reforms to improve the legal and regulatory framework for the financial sector and the implementation of the national microfinance strategy adopted in March 2004. The SDARP adequately stresses the importance of improved infrastructure (roads, energy and telecoms) to encourage growth and facilitate access to social services. The SDARP clearly identifies the major obstacles to poverty reduction in Niger and provides a reasonable framework for implementing the Government's growth and poverty reduction agenda over the next five years. It recognizes the considerable challenges to achieve the MDGs and the significant risks to its implementation. To be successful, the strategy requires strong political commitment for the sustained implementation of a core set of reforms and programs aimed at increasing productivity and investment, improving governance, and ensuring macroeconomic stability. The staffs recommend that the authorities identify detailed and prioritized reform actions to address key constraints for the private sector, drawing inter alia on the analysis and recommendations of the Country Economic Memorandum and the investment climate assessment that were recently completed. Efforts to further enhance governance, with particular attention to public financial management and the mining sector, are also needed.