Macroeconomic Management for Poverty Reduction : Chad, Mali, Niger
The three countries covered in this first report, Mali, Chad and Niger, share a number of common characteristics and face a similar set of challenges, which provides the foundation for this joint-review approach. All three are low-income landlocked...
| Main Authors: | , , , , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26299154/chad-mali-niger-macroeconomic-management-poverty-reduction http://hdl.handle.net/10986/24401 |
| Summary: | The three countries covered in this
first report, Mali, Chad and Niger, share a number of common
characteristics and face a similar set of challenges, which
provides the foundation for this joint-review approach. All
three are low-income landlocked economies. Each relies
heavily on the agricultural sector as its primary source of
income and livelihoods, and each has a large livestock
subsector that is based in part on traditional nomadic
pastoralism. All countries have important natural resource
industries, gold for Mali, uranium and oil for Niger, and
oil for Chad, which represent the bulk of export earnings
and public revenue. This dependence on the primary sector
renders these economies highly vulnerable to weather-related
shocks and volatile commodity prices. Each is struggling to
overcome a legacy of instability and violence, which is
complicated both by the fragility of domestic
socio-political conditions and the severity of regional
security challenges. Finally, all three countries are
members of a monetary union that uses a regional currency
pegged to the euro and exercises significant influence over
the macroeconomic policies of its member states. At the
center of the trade-off between stabilization and
development lies public investment management, at
macroeconomic and financial management levels. Faced with
repeated negative shocks, countries tend to cut ongoing and
planned public investment projects which are often designed
to reduce drivers of fragility and strengthen the resilience
of economies, thus perpetuating risks of falling into
fragility traps. Hence, Section three discusses the impact
of public investment volatility on its quality in Chad, Mali
and Niger, and explores possible options in terms of
macroeconomic and public financial management to smooth
public investment budget execution. |
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