Annex V World Bank Group Technical Assistance to CFA Franc Countries

Stéphane Cossé, Johannes Mueller, Jean Le Dem, and Jean Clément
Published Date:
June 1996
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Since fiscal year 1990, the World Bank Group has provided support for improving economic management under the following technical assistance operations (to September 1995).


The fiscal year 1995 Economic Management Project (US$6.0 million equivalent) focuses on investment programming, budgeting, national accounts and procurement policies. In the context of the project, the Ministry of Planning will be reorganized around the main missions of economic analysis, public investment programming and monitoring, and supervision of the remaining public enterprises. The project will include an action plan to restructure the debt agency and the statistical office. All the budgeting procedures will be reviewed; the relationship between the Ministries of Plan and Finance, and the spending ministries will be reviewed with the purpose of ensuring better budgetary preparation procedures.

Burkina Faso

The fiscal year 1992 Public Institutional Development Project (US$15 million equivalent) provides support for capacity-building in budgetary management, civil service reform, statistical information, and business law reform. The fiscal year 1993 Private Sector Assistance Project (US$7 million) focuses on institutional support for banking, public enterprise, and private sector reforms.

Côte d’Ivoire

The fiscal year 1992 Privatization Support Project (US$15 million equivalent) provides critical institutional and technical support to the government’s privatization program, which is a key component of Côte d’Ivoire’s medium-term macroeconomic adjustment program. The project also provides assistance to acquaint the authorities with up-to-date debt reduction and restructuring options. The fiscal year 1993 Economic Management Project (US$17 million equivalent) provides support for improving macroeconomic management, including parapublic enterprise reform, a revamping of the statistical apparatus, civil service reform, and legal and judiciary reform. The fiscal year 1993 Human Resources Development Management Project (US$6.7 million equivalent) is designed to increase the capacity of social sector ministries that account for a large share in government recurrent expenditure, to better prepare and execute their budgets, and to better manage the related human resources. The fiscal year 1994 National Agricultural Services Support Project (US$21.8 million equivalent) provides help for restructuring government agricultural services and increasing farmers’ participation in the policy making process. The fiscal year 1994 Labor Force Training Support Project (US$17 million equivalent) aims at improving the employability and productivity of some categories of workers through skill training.


The fiscal year 1991 Structural Adjustment Loan I (US$70 million equivalent) has a technical assistance component that aims at strengthening the institutional capacity to implement the economic reform agenda. The government requested and has been granted permission to use the remaining funds of this component for the construction of customs posts in border areas.


The Public Institutional Development Project (under preparation, about US$10 million equivalent) aims at strengthening economic management (budgetary process, resource mobilization), civil service reform, and the legal/regulatory framework for business activities.


The fiscal year 1988 Development Management Project (US$17 million equivalent) supports institutions responsible for macroeconomic management and the civil service. Key activities include consolidating public investment programming, strengthening debt management and statistical systems, and improving civil service efficiency through organizational audits of selected ministries.


A public expenditure review will commence shortly to analyze the structure of public expenditure and present recommendations to restructure its composition. To strengthen public management in the areas of planning, programming, and budgeting, an Institutional Assessment Study will be undertaken in 1996. The study will review the government’s organizational structure, assess the development needs of key ministries and support the government’s decentralization objectives.


The fiscal year 1990 Economic Management Project (US$9 million equivalent) aimed at improving the government’s macroeconomic management, public investment programming, debt servicing, and statistical information as well as restructuring the civil service, key government agencies, and the public enterprise sector.

Central African Republic

The fiscal year 1995 Economic Management Project (US$13.2 million equivalent) provides assistance in (i) public investment programming and monitoring; (ii) reform of management of the civil service; (iii) revenue collection and spending control improvement; and (iv) public enterprise reform.


The fiscal year 1988 Economic and Financial Management Project (US$12.8 million equivalent) aims at strengthening government institutions and coordination mechanisms. After its recent restructuring, the project focuses on revenue enhancement (including for customs duties and petroleum taxes), strengthening expenditure control and treasury management, and support for the formulation of medium-term reform programs.


In FY 1994, the World Bank declared the Congo IDA eligible and supported a first-phase economic recovery program through a US$100 million Economic Recovery Credit (ERC). The ERC aimed at curtailing public expenditure and implementing key structural measures to prepare the ground for a deeper transformation of the economy and reduction in the public sector. The second phase of the economic recovery program will be supported by a privatization and capacity building project that is tentatively scheduled to be submitted to the Board in July 1995. The project aims at accelerating divestiture of public enterprises, introducing a competitive environment in the utility and petroleum sectors, and facilitating private sector development. Specifically, the project will provide support to the government in: (i) preparing regulatory frameworks for the five major public enterprises in control of petroleum distribution, transportation, telecommunications, power and water distribution and opening up the sectors to competition progressively; (ii) conducting the privatization of these major public enterprises; (iii) liquidating other nonviable PEs; and (iv) supporting regulation and competition in the financial sector and reforms in banking institutions.


The fiscal year 1990 Economic Management Project (US$5 million equivalent), recently concluded, provided support to the government’s structural adjustment program by strengthening the ministries in key areas of economic management. Civil service reform and small- and medium-scale enterprise development were the core elements. Following the adjustment of the parity of the CFA franc on January 12, 1994, a quick-disbursing economic recovery loan (US$30 million equivalent) to support the immediate accompanying measures that are part of the adjustment program was approved by the Board on June 21, 1994, and has been fully disbursed. In addition, a transport sector technical assistance loan (US$5.2 million equivalent) was approved on July 7, 1994. A public expenditure review (PER) with a view of helping the government formulate a high-return and sustainable program of public expenditure that supports its development objectives was conducted by the World Bank in April 1995.


The current and ongoing assistance provided under the MERCAP involves strengthening the economic management capacity of the government through capacity building and on-the-job training in the Ministry of Finance and the Planning Directorate, which has included: (1) budget preparation and the monitoring of its execution with a computerized system; (2) preparation and monitoring of the rolling three-year public investment program; and (3) technical support and training in the areas of debt and treasury accounts management, national accounts compilation, and macroeconomic analysis and forecasting.

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