The team comprised Messrs. Snoek (Head) and Laporte (AFR), Mr. Arnason (PDR), and Mr. Kinoshita (FAD).
The transition President will remain in office until elections to be held before end-March 2005.
Table 2 provides key economic indicators for the period 1993-2003 and Table 3 compares actual outcomes of the programs against the main macroeconomic objectives. Table 4 provides the main sectoral policies and describes their implementation, and Tables 5 and 6 provide an overview of performance against the programs’ quantitative and structural performance criteria, benchmarks and indicators.
Between 1994 and mid-1998, Fund technical assistance included 40 months of resident experts on monetary and banking issues; seven months of resident experts on the introduction of the general sales tax, and two short-term missions on tax policy and import tariff reform; and one STA multi-topic mission to review macroeconomic statistics.
Also, the UNDP security classification prevented technical assistance missions until early 2000.
Simultaneously with the approval of the PRGF, Guinea-Bissau reached the decision point under the enhanced HIPC Initiative.
The extrabudgetary expenditure may have been related to securing the region on the northern border with Senegal, which was being infiltrated by participants in an armed rebellion in that country. Nevertheless, it is unclear how much of the funds were indeed used for that purpose.
In the event, the wage increase was not implemented, which led to strikes and a further decline in the functioning of the government administration.
Discussions on a new (extended) SMP as a framework for possible renewed donor assistance, that had started in October 2002, were suspended pending the elections and the nomination of a new government.
The amount of financial assistance under the PRGF arrangement was increased by 25 percent of quota, disbursed in the first tranche in December 2000, which the authorities intended to use to facilitate repurchasing the assistance under the 1999-2000 post-conflict assistance. In the event, the authorities did not make the repurchase, and the post-conflict assistance started falling due, as scheduled, at end-2002.
The guidance note on the Fund’s role in governance issues dates from the end of the ESAF arrangement in 1997; this may explain why Fund programs on Guinea-Bissau did not emphasize governance issues and the associated risks at that time, despite growing concerns among donors (see e.g., “Development Cooperation between Guinea-Bissau and Sweden,” SIDA evaluation 97/23, Stockholm, 1997).
“Guinea-Bissau: Ensuring Development Gains and Preventing the Slide Back into Crisis,” Regional Bureau for Africa and the Bureau for Crisis Prevention and Recovery, UNDP, New York, November 2002.