This Selected Issues and Statistical Appendix paper on Burkina Faso reviews background information and analytical support for key policy issues. This paper extends the results from the debt sustainability analysis for Burkina Faso and develops two alternative debt ratios that are suitable for assessing the impact of discount rate changes on the debt burden of the country. To better understand the implications of discount rate changes on the debt situation, the set of available debt ratios by developing two new measures of debt burden were extended.
Hilary Devine, Adrian Peralta-Alva, Hoda Selim, Preya Sharma, Ludger Wocken, and Luc Eyraud
The Covid-19 pandemic has aggravated the tension between large development needs in infrastructure and scarce public resources. To alleviate this tension and promote a strong and job-rich recovery from the crisis, Africa needs to mobilize more financing from and to the private sector.
The process of economic development is characterized by substantial reallocations of resources
across sectors. In this paper, we construct a multi-sector model in which there are barriers to the
movement of labor from low-productivity traditional agriculture to modern sectors. With the barrier
in place, we show that improvements in productivity in modern sectors (including agriculture) or
reductions in transportation costs may lead to a rise in agricultural employment and through terms-oftrade
effects may harm subsistence farmers if the traditional subsistence sector is larger than a critical
level. This suggests that policy advice based on the earlier literature needs to be revised. Reducing
barriers to mobility (through reductions in the cost of skill acquisition and institutional changes) and
improving the productivity of subsistence farmers needs to precede policies designed to increase the
productivity of modern sectors or decrease transportation costs.
The paper evaluates the impact of HIV/AIDS on welfare in several countries affected by the HIV/AIDS epidemic. Unlike studies focusing on the impact of HIV/AIDS on GDP per capita, we evaluate the impact of increased mortality using estimates of the value of statistical life. Our results illustrate the catastrophic impact of HIV/AIDS in the worst-affected countries and suggest that studies focusing on GDP and income per capita capture only a very small proportion of the welfare impact of HIV/AIDS.