This paper assesses the link between public investment and economic growth in Burkina Faso. It also evaluates Burkina Faso's external competitiveness by using a comparison of REER to its equilibrium levels and a survey-based assessment of overall competitiveness. The report attempts to quantify the impact of rainfall and terms-of-trade shocks on the Burkinabe economy and draws policy measures to lessen external shocks. The report assesses that industrial mining has become a source of foreign exchange and government revenue, which requires transparent management and accountability.
This Selected Issues paper underlies the financial sector developments in Niger. The paper presents an overview of the financial sector of Niger and discusses the recent banking developments. It analyzes the recent trends in key microfinance indicators, and investigates reasons behind Niger’s relatively weak growth performance. It uses a growth accounting framework to assess the contribution to growth by factor inputs and total factor productivity (TFP) during 1963–2003. The paper also presents neoclassical growth model estimates of the role of macroeconomic variables and other factors in determining economic growth in Niger.
Mr. Jean-Claude Berthélemy and Mr. Ludvig Söderling
This paper examines past African growth experience and attempts to simulate future ones. In addition to more commonly used determinants of total factor productivity, a measure of the effect of labor reallocation and an index of economic diversification are constructed and included as factors for long-term growth. A simple model is constructed for the purpose of simulating growth scenarios up to the year 2020 for Burkina Faso, Côte d'Ivoire, Ghana, Mali, Tanzania, and Uganda. Even if one makes relatively optimistic assumptions, Africa is not likely to reach "Asian tiger" levels of growth. The results also suggest that growth will depend, to a large extent, on educational investments and productivity gains in agriculture.
Mr. Kevin J Carey, Mr. Sanjeev Gupta, and Ms. Catherine A Pattillo
Growth in sub-Saharan Africa has recently shown signs of improvement, but is still short of levels needed to attain the Millennium Development Goals. Economists have placed increasing emphasis on understanding the policies that promote sustained jumps in medium-term growth, and the paper applies this approach to African countries. The evidence presented finds an important growth-supporting role for particular kinds of institutions and policies, but also highlights aspects of growth that are still not well understood. The paper includes policy guidance for ensuring that the poor benefit from growth.