2.2.1. Macroeconomic results

On the whole, Burkina Faso has consolidated trust with the Breton Woods institutions. Burkina’s performance regarding the implementation of the macroeconomic program (with the IMF) remains overall satisfactory, thanks to the successful implementation of structural reforms and the consolidation of private sector involvement in the country’s development. In addition, the 2007-2010 program is being signed. Macroeconomic results in 2006 were also satisfactory in spite of falling prices in the international cotton market and the increase in oil prices. High levels of cotton and cereal production, as well as the strengthening of public investment made it possible to foster growth and control inflation.

The real sector

Real GDP growth rate was 6.4% in 2006 (for a forecast of 6.7%) against 7.1% in 2005, equivalent to an increase in per capita GDP of 3.9%. This growth was carried by all sectors on the supply side, as well as by demand -particularly household consumption-, and by an increase of exports. The vitality of the economy resulted in real GDP per capita growth as indicated in Chart 1 below:

Per capita income increase from 2000 to 2006

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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Per capita income increase from 2000 to 2006

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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Per capita income increase from 2000 to 2006

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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On the demand side, economic growth benefited significantly from an increase in exports (24.2% in 2006), as well as in consumption (10.1% in 2006), and gross fixed capital formation (10.4% in 2006). Table 2 below shows the contribution of demand to real GDP growth from 2003 to 2006, and the importance of private final consumption.

Table 2:

Contribution of demand to GDP growth (in %)

Source : MEDEV/DGEP/DPAM, March 2007

Table 2:

Contribution of demand to GDP growth (in %)

	2003	2004	2005	2006
Private final consumption	6,0%	6,6%	-1,8%	6,7%
Public Admin. Fin. Cons.
(“Cons. Fin. Admin. Publique.”)	-1,4%	2,6%	2,1%	0,8%
Gross fixed-capital formation	3,3%	2,0%	1,6%	2,1%
Exports goods+services	0,3%	1,9%	0,5%	2,4%
Imports goods+services	-1,5%	-3,5%	-1,4%	-1,6%

Source : MEDEV/DGEP/DPAM, March 2007

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Table 2:

Contribution of demand to GDP growth (in %)

	2003	2004	2005	2006
Private final consumption	6,0%	6,6%	-1,8%	6,7%
Public Admin. Fin. Cons.
(“Cons. Fin. Admin. Publique.”)	-1,4%	2,6%	2,1%	0,8%
Gross fixed-capital formation	3,3%	2,0%	1,6%	2,1%
Exports goods+services	0,3%	1,9%	0,5%	2,4%
Imports goods+services	-1,5%	-3,5%	-1,4%	-1,6%

Source : MEDEV/DGEP/DPAM, March 2007

Production sectors on the whole recorded a positive growth between 2005 and 2006. In terms of added value, primary sector production amounted to 823.1 billion FCFA, with an increase in cereals and cotton productions due to the good pluviometry recorded during the 2006/2007 crop year. Seed cotton production estimated at 814.900 tons rose 8.5% in comparison to the previous year. With a fiber production estimated at 315.400 tons in 2006-2007, Burkina Faso remains for the third time (in four years), the leading cotton producer in Africa, before Egypt (212 000 tons) and Mali (194 000 tons). Burkina Faso, Benin, and Cameroon are the countries contributing the most to the increase of Cotton production in West and Central Africa, contrary to Mali, Togo, and Ivory Coast, which recorded a decrease in their productions.

As to the secondary sector, value added increased by 6.3% in 2006 to reach 634.1 billion FCFA, due mainly to manufacturing industries (+6.2%), but also to construction and public works (+11.8%), and mining (+7.9%) under-sectors.

The tertiary sector added value has increased from 1050.1 billion FCFA in 2005 to 1116,4 billion FCFA in 2006, raising by 6.3%. This increase was brought more by commercial than noncommercial services, increasing respectively by 8.9% and 3.3% in 2006.

Table 3 below shows that the contribution of the tertiary sector (2,6%) to GDP growth in 2006 was more important than that of the primary and secondary sectors, respectively 1.3%, and 1.5%. The contribution of the primary sector to GDP growth has declined significantly due primarily to the decline of the food agriculture and animal husbandry under-sectors contribution. The contribution of the tertiary sector in GDP increase is due to the good performance of the commercial services under-sector.

Table 3:

Sectoral contribution to GDP growth (in %)

Source : MEDEV/DGEP/DPAM, March 2007

Table 3:

Sectoral contribution to GDP growth (in %)

		2003	2004	2005	2006
PRIMARY SECTOR		3,3%	-0,9%	3,5%	1,3%
	Food agriculture	-2,4%	-2,0%	2,6%	0,6%
	Cash crop	0,4%	0,7%	0,2%	0,2%
	Animal husbandry	5,2%	0,3%	0,6%	0,3%
	Forestry products	0,1%	0,1%	0,1%	0,1%
	Fishing	0,0%	0,0%	0,0%	0,0%
SECONDARY SECTOR		2,0%	2,1%	1,7%	1,5%
	Mining and quarrying	0,1%	0,1%	0,1%	0,0%
	Modern drinks and tobacco	0,1%	0,0%	0,2%	0,0%
	Cotton ginning	0,6%	0,4%	-0,7%	0,0%
	Electricity, gas and water	0,8%	-0,4%	0,5%	0,1%
	Other modern manufacturing industries	0,7%	0,4%	-0,1%	-0,1%
	Informal manufacturing industries	-0,7%	0,7%	1,4%	0,8%
	Construction work	0,5%	0,9%	0,3%	0,7%
TERTIARY SECTOR		2,9%	2,7%	1,7%	2,6%
MARKET SERVICES		1,9%	2,9%	1,2%	2,0%
	Commerce	0,8%	0,8%	0,4%	0,4%
	Transport	0,1%	0,3%	0,1%	0,2%
	Post and telecommunications	0,1%	0,2%	0,1%	0,1%
	Financial services	0,1%	0,2%	0,1%	0,2%
	Other market services	0,7%	1,3%	0,6%	1,1%
NON MARKET SERVICES		1,0%	-0,2%	0,5%	0,6%

Source : MEDEV/DGEP/DPAM, March 2007

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Table 3:

Sectoral contribution to GDP growth (in %)

		2003	2004	2005	2006
PRIMARY SECTOR		3,3%	-0,9%	3,5%	1,3%
	Food agriculture	-2,4%	-2,0%	2,6%	0,6%
	Cash crop	0,4%	0,7%	0,2%	0,2%
	Animal husbandry	5,2%	0,3%	0,6%	0,3%
	Forestry products	0,1%	0,1%	0,1%	0,1%
	Fishing	0,0%	0,0%	0,0%	0,0%
SECONDARY SECTOR		2,0%	2,1%	1,7%	1,5%
	Mining and quarrying	0,1%	0,1%	0,1%	0,0%
	Modern drinks and tobacco	0,1%	0,0%	0,2%	0,0%
	Cotton ginning	0,6%	0,4%	-0,7%	0,0%
	Electricity, gas and water	0,8%	-0,4%	0,5%	0,1%
	Other modern manufacturing industries	0,7%	0,4%	-0,1%	-0,1%
	Informal manufacturing industries	-0,7%	0,7%	1,4%	0,8%
	Construction work	0,5%	0,9%	0,3%	0,7%
TERTIARY SECTOR		2,9%	2,7%	1,7%	2,6%
MARKET SERVICES		1,9%	2,9%	1,2%	2,0%
	Commerce	0,8%	0,8%	0,4%	0,4%
	Transport	0,1%	0,3%	0,1%	0,2%
	Post and telecommunications	0,1%	0,2%	0,1%	0,1%
	Financial services	0,1%	0,2%	0,1%	0,2%
	Other market services	0,7%	1,3%	0,6%	1,1%
NON MARKET SERVICES		1,0%	-0,2%	0,5%	0,6%

Source : MEDEV/DGEP/DPAM, March 2007

Price levels

The general price level has increased moderately in 2006 compared to 2005. Indeed, the inflation rate was 2.4% in contrast to 6.4% for the previous year, which represents a reduction of 4.0 points, thanks to the 2005-2006 good crop year, which led to a reduction in cereal products prices, which in turn mitigated the effects of the increase of oil prices.

The decrease in the general price level is also the consequence of the price fluctuation of various consumption functions. Regarding the function “Foodstuff and soft drinks”, the decrease in prices is due to the ones of cereals (thanks to a good agricultural season), meat, and especially fresh vegetables. Regarding the function “Alcoholic drinks, tobaccos and narcotics”, the decrease in prices is due to a reduction in price of other “stimulants”, in spite of the increase of artisanal alcoholic drinks prices. As for the function “Housing, water, gas, electricity and other fuels”, the fall in other fuels prices combined with the rise in the price of liquid fuels (hydrocarbons price increase) better explains the decrease in prices for this function.

Transport prices increase resulted from the rise in fuel prices, whereas for restaurants and hotels, the rise is due to the increase in drinks prices. The other consumption functions remained stationary as to their prices.

Chart 2 below shows that inflation is well controlled in Burkina Faso, the evolution of price index is within WAEMU convergence zone.

Evolution of consumer price index

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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Evolution of consumer price index

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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Evolution of consumer price index

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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Evolution of public finance in 2006

In terms of public finance, the Government budget for year 2006 approved initially with an estimated financing deficit of 99.1 billion FCFA, has been modified through an amendment to finance law in order to take into account budgetary supports by the CGAB-CSLP partner members as confirmed by the signature of several conventions during the first nine months, and the expenditures related to wage increase, the regularization of [government employees] promotions, operating expenses (water, electricity and telephone) and the subsidy to SONABEL.

On the basis of the initial finance law capital contributions, approximately 27.6% of the total budget -not including debt, tax exemptions and externally financed projects- were allocated to the two basic social sectors of health and basic education in 2006, against 25.2% in 2005. As to the health sector’s share of the budget, it increased from 10.9% to 12.3%, and the Ministry of Basic Education and Literacy Training from 14.3% in 2005 to 15.03% in 2006, representing an increase respectively of 1.4 point and 1 point. The contributions to the other priority sectors have also increased, as shown in Chart 3 below:

Evolution of social spending from 2003 to 2006

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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Evolution of social spending from 2003 to 2006

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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Evolution of social spending from 2003 to 2006

Citation: IMF Staff Country Reports 2008, 212; 10.5089/9781451803969.002.A001

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The government financial operations for year 2006 were carefully managed as was the case for previous years, because of the persistence of uncertainties in the sub-regional and international environments, characterized in particular by the weakness of cotton prices (in FCFA) and the high prices for petroleum products. However, the government accentuated its efforts in the priority sectors of poverty reduction by significantly increasing their expense ratio. The resources drawn from the implementation of the Multilateral Debt Relief Initiative (IADM) were used to support the sectors driving growth.

The Government financial transactions at the end of December 2006 are characterized by a deficit of 7.2 billion FCFA for a forecast of 99.1 billion FCFA. This deficit is explained by an important increase of total expenditures and net loans, estimated at 733.2 billion FCFA against 642 billion F CFA in 2005, which constitutes an increase of 14.2%; and by the weakness of the government own resources (in spite of a rise of 7.4%) which are lower by about 20% compared to the objective laid down in the budget law 2006 (473 billion FCFA).

Revenue evolution in 2006 is characterized by the weakness of budget covering in relation to the program objectives supported by the IMF through the Poverty Reduction and Growth Facility (PRGF). Indeed, the Government own revenue amounted to 391.9 billion FCFA, an increase of 7.4% in relation to 2005 (365.2 billion), but lower than the 443 billion objective. This poor performance is mainly explained by the difficulties encountered in the cotton sector that affected most other sectors, with a negative impact on tax revenue, in particular the VAT and the BIC. Tax revenue progression decreased, but non-tax revenue exceeded the forecasted 28.3 billion, generating instead 35.2 billion.

In terms of budgetary supports, important improvements have been recorded overall in 2006. The estimate of total budgetary supports programmed for 2006 rose to 97.876 billion FCFA, including 53.944 billion FCFA (55%) in grants and 43.932 billion FCFA CFA (45%) in loans. The situation is clearly improving compared to the forecasts provided by the CGAB-CSLP partners in 2005. As of December 31, 2006, budgetary supports effective disbursements rose to 100.952 billion FCFA; in comparison to year 2005, the amounts disbursed increased by 9.85% with a performance ratio (103,1%) higher than that of 2005 (99,1%).

Government expenditure, (not including debts, but including HIPC resources) was established at 745.7 billion FCFA in 2006; increasing by 16.4% compared to the previous year, with an overall satisfactory level of performance (89.3%). Recurrent day-to-day expenses (interest on the debt not included) increased significantly (18.2%), because of transfer expenditure (15.9%) and staff costs (12.5%). The increase in staff costs is related to regularizations, advances, and basic social sectors employees redeployment previously paid on HIPC resources.

Table 4:

Government spending (interests not included), debt repayment, including HIPC

(based on commitment determined by financial audit, and in billion FCFA)

Source : SP-PPF/MFB

Table 4:

Government spending (interests not included), debt repayment, including HIPC

(based on commitment determined by financial audit, and in billion FCFA)

Headings		2004	2005	2006		Implementation rate (%)	Growth rate(%)
			Commitment	Commitment	Allocations	Commitment
Recurrent day-to-day expenses (interests not included)		275,1	326,8	375,6	386,4	102,9%	18,2%
	Salaries	123,5	142,2	150,2	160,0	106,5%	12,5%
	Operating expenditure	65,0	75,1	80,2	82,2	102,5%	9,5%
	Current transfers	86,6	109,5	127,9	126,9	99,2%	15,9%
Investment expenditure		284,4	313,8	459,1	359,3	78,3%	14,5%
	On own resources	133,9	139,3	127,7	154,8	121,2%	11,1%
	On external financing	150,5	174,6	331,5	204,5	61,7%	17,1%
Total		559,5	640,7	834,7	745,7	89,3%	16,4%
	including HIPC IADM	43,5	39,8	41,0	39,8	97,0%	–8,6%
	including budgetary supports (IMF not included)	89,9	93,1	97,876	100,952	103,1%	9,85%

Source : SP-PPF/MFB

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Table 4:

Government spending (interests not included), debt repayment, including HIPC

(based on commitment determined by financial audit, and in billion FCFA)

Headings		2004	2005	2006		Implementation rate (%)	Growth rate(%)
			Commitment	Commitment	Allocations	Commitment
Recurrent day-to-day expenses (interests not included)		275,1	326,8	375,6	386,4	102,9%	18,2%
	Salaries	123,5	142,2	150,2	160,0	106,5%	12,5%
	Operating expenditure	65,0	75,1	80,2	82,2	102,5%	9,5%
	Current transfers	86,6	109,5	127,9	126,9	99,2%	15,9%
Investment expenditure		284,4	313,8	459,1	359,3	78,3%	14,5%
	On own resources	133,9	139,3	127,7	154,8	121,2%	11,1%
	On external financing	150,5	174,6	331,5	204,5	61,7%	17,1%
Total		559,5	640,7	834,7	745,7	89,3%	16,4%
	including HIPC IADM	43,5	39,8	41,0	39,8	97,0%	–8,6%
	including budgetary supports (IMF not included)	89,9	93,1	97,876	100,952	103,1%	9,85%

Source : SP-PPF/MFB

According to provisional data, investment spending increased by 14.5% in 2006, but implemented at only 78.3%. This rate can be explained by externally financed projects low rate of implementation (61.7%). Projects funded by internal resources have been better implemented during the same period (121.2%). In addition, the mobilization of budgetary supports, part of expenditure financing on internal resources, was more important comparatively to the programming made at the beginning of year 2006 (103.1%). This clearly emphasizes the effectiveness of this method with regards to development programs implementation, compared to the Project Approach. Investment spending has been financed by the government own revenue (154.8 billion FCFA), increasing by 11.1% in comparison to 2005. External financing amounted to 204. 5 billion FCFA, increasing by 17.1% in comparison to 2005.

As was the case for previous years, budgetary resources were allocated mainly to priority expenditures as stated in the PAP-CSLP. In terms of allocations, including HIPC and other projects externally financed and with interests not included, repayment of debts, and tax exemptions, the spending ministries have been agriculture, hydraulics and fishery resources, basic education, infrastructures, basic education and literacy, health, secondary education, higher education and scientific research. In examining the distribution structure according to financing sources, a great disparity appears between externally financed projects and those funded through the Government budget.

Taking into consideration these facts, the government, conscious of the necessity to bring more coherence in resource allocation, will pursue reforms aimed at improving the resource allocation process with poverty reduction as a priority, and in order to meet the Millennium Development Goals, particularly by providing appropriate tools.

On the whole, the government financial transactions in 2006 shows a deficit (grants not included) of 342 billion FCFA, against 277 billion FCFA in 2005, a difference of 65 billion FCFA. Expressed as a percentage of nominal GDP, the deficit increases from 8.6% in 2005 to 9.8% in 2006.

Absorbing the deficit has been achieved thanks to both external and internal financing. External financing has been ensured by the disbursement of 286 billion FCFA, an amortization of external debt of 24.7 billion FCFA, with 723.5 billion cancellation debt, under the IADM and HIPC initiatives.

Table 5:

Government financial operations 2005 – 2006

(in billions FCFA)

Source : SP/PPF

Table 5:

Government financial operations 2005 – 2006

(in billions FCFA)

	2005	2006
		Budget law	Implementation
Current revenue	365	443	392
Net expenditures and loans	642	836	733
Budget balance (grants not included)	- 277	- 393	-342
External financing	268	202	286
Domestic financing	9	- 7	55
Nominal GDP	3 030	2 838	3 192

Source : SP/PPF

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Table 5:

Government financial operations 2005 – 2006

(in billions FCFA)

	2005	2006
		Budget law	Implementation
Current revenue	365	443	392
Net expenditures and loans	642	836	733
Budget balance (grants not included)	- 277	- 393	-342
External financing	268	202	286
Domestic financing	9	- 7	55
Nominal GDP	3 030	2 838	3 192

Source : SP/PPF

Status of the criteria of convergence

Based on an estimation of expenditure and revenue at the end of December 2006, the criteria of convergence profile shows that regarding the criteria of first rank, only one is not respected (budget balance to GDP), while it is the case for two second-rate criteria (wage bill to tax revenue and to tax ratio). The details of this situation are presented below, and in table 6

First rank criteria: Budget balance

• - Basic budget balance (solde budgétaire de base) expressed as a percentage of nominal GDP: Burkina Faso’s objective is 3.6% of deficit as stated in its 2006-2008 program. Rectified by budgetary supports and HIPC resources, this estimated deficit has been fixed at 1.1%. Based on estimates made at the end of 2006, this objective would not be achieved. Indeed, budget balance would indicate a deficit of 1.4% for a community objective of 0% minimum;

• - Favorable price trend for foodstuffs following the 2005/2006 good crop year, and the stability of petroleum products prices starting in September 2006, indicate an estimated inflation of 2.4%, lower than the Community’s standard of 3% ;

• - Effective implementation of the G8 Multilateral Debt Relief Initiative makes it possible for Burkina Faso to benefit from a reduction of 70% in terms of its multilateral debt, starting in year 2006. According to the last estimates of the outstanding external debt, the indebtedness rate at the end of 2006 accounts for 17.1%, clearly below the program objective of 70%;

• - For year 2006, Burkina Faso did not accumulate arrears, internally as well as externally, over that management period.

Second rank criteria :

• - Ratio wage bill to tax revenues: the objective is not achieved because the ratio is 41.2% (rectified at 36.3%), above the Community standard of 35% maximum;

• - With the government stated commitment to continue making growth-related investments, estimates in terms of implementation of financial transactions by the said government by the end of December 2006, give a 38.7% ratio investments financed on internal resources to tax revenues for an objective of 36.9%, while the Community standard is 20% minimum;

• - According to the last estimates regarding the country’s external status, the external deficit ratio (grants excluded) to nominal GDP was 11.3% in 2006, slightly more than the objective of 11,1%, and higher than the Community standard of 5% maximum;

• - In spite of measures to improve revenue collection, the tax ratio in 2006 was 12.0%, inferior by 0.4 point to the objective laid down in the program, and by 5 points to the Community standard.

Table 6:

Status of the WAEMU convergence criteria

Source : DGEP, March 2007

Table 6:

Status of the WAEMU convergence criteria

Criteria		2003	2004	2005	2006	Standard
First-rank criteria
	Ratio budget balance (based on commitment, including grants) to nominal GDP	-1,3%	-2,5%	-3,2%	-1,4%	Min 0
	Annual inflation rate (IHPC)	2%	-0,4%	6,4%	2,4%	Max 3
	Ratio total outstanding debt to nominal GDP	43,6%	39,7%	41,3%	17,1%	Max 70
	Accumulated arrears (internal and external)	0	0	0	0	0
Second rank criteria
	Ratio wage bill to tax revenue	41,5%	38,1%	43,2%	36,3%	Max 35
	Ratio public investments financed on own resources to tax revenue	33,2%	41,9%	41,4%	38,7%	Min 20
	Ratio current external deficit (grants not included) to nominal GDP	12,6%	13,2%	11,5%	11,3%	Max 5
	Tax ratio	10,8%	12,0%	11,3%	12,0	Min 17

Source : DGEP, March 2007

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Table 6:

Status of the WAEMU convergence criteria

Criteria		2003	2004	2005	2006	Standard
First-rank criteria
	Ratio budget balance (based on commitment, including grants) to nominal GDP	-1,3%	-2,5%	-3,2%	-1,4%	Min 0
	Annual inflation rate (IHPC)	2%	-0,4%	6,4%	2,4%	Max 3
	Ratio total outstanding debt to nominal GDP	43,6%	39,7%	41,3%	17,1%	Max 70
	Accumulated arrears (internal and external)	0	0	0	0	0
Second rank criteria
	Ratio wage bill to tax revenue	41,5%	38,1%	43,2%	36,3%	Max 35
	Ratio public investments financed on own resources to tax revenue	33,2%	41,9%	41,4%	38,7%	Min 20
	Ratio current external deficit (grants not included) to nominal GDP	12,6%	13,2%	11,5%	11,3%	Max 5
	Tax ratio	10,8%	12,0%	11,3%	12,0	Min 17

Source : DGEP, March 2007

Public debt in 2006

Year 2006 was marked by the implementation of the Multilateral Debt Relief Initiative (MDBRI) which made it possible to bring government debt outstanding to 533.1 billion FCFA by the end of that year in comparison to 1,217.9 billion FCFA in 2005, which constitutes a significant decrease of 56.2%. On the whole, the country benefited from a total debt cancellation of approximately 708.1 billion FCFA by the ADF and IMF at the end of 2004, and by the IDA by the end of 2003.

This initiative considerably improved the debt viability ratios, given that government debt outstanding at the end of 2006 constitutes approximately 16.9% of GDP compared to 38.5% in 2005. As for total debt service, it accounted for approximately 10.1% of budgetary revenue against 25.0% in 2005. The external debt servicing ratio to exports of goods and services was 13.1%, compared to 39.1% in 2005

Balance of payments

Burkina Faso’s balance of payments in 2006 is still affected by the international economic situation, marked by high petroleum products prices, and persisting decline in world cotton prices. However, thanks to satisfactory economic activity, particularly the implementation of the infrastructures work program and the revival of the mining industry, and, more important, the Multilateral Debt Relief Initiative (IADM), Burkina Faso’s had exceptionally a balance of payments surplus of 50.7 billion FCFA in 2006, against a deficit of 103.7 billion FCFA in 2005.

In particular, the trade balance, although structurally passive, improved by 13.3% in 2006, compared to 2005, with 254.5 billion FCFA. This improvement is attributable to an important increase in exports (+24.5%) compared to that of imports (+4%).

Monetary situation

At the end of December 2006, the monetary situation was characterized by an increase in net external assets, internal credit, and money supply, respectively by 29.4%, 5.8% and 10,1%, compared to 2005. The improvement of net external assets, which reached 221 billion FCFA, is mainly due to the mobilization of external resources that occurred during that period, and to a reduction of external liabilities following the cancellation of the national debt by the IMF.

Outstanding credits increased by 67.1 billion FCFA, reaching 542.4 billion FCFA by the end of December 2006, against 475.3 billion FCFA by the end of December 2005, in order to finance year 2005/2006 agricultural season of 75.5 billion FCFA by the end of December 2006, against 62.6 billion FCFA by the end of December 2005, constituting an increase of 12.9 billion FCFA. Main estimates increased by 45.1 billion FCFA (+18.8%), and 285.6 billion FCFA by the end of December 2006, against 240.4 billion FCFA by the end of December 2005, an increase of 60,6 billion FCFA (+10.1%) due to deposits (+11.6%) in spite of the decrease in fiduciary circulation (-7.7%).

Growth, inequality and poverty reduction in 2006

Based on the parameters derived from the last macroeconomic projections developed using the automated forecast tool (instrument automatisé de prevision --IAP) and under the assumption that each household income increases at the same rate as the average net income (minus taxes and plus transfers) of the household category to which it belongs, (income distribution in each group does not change), the simulations made with the PAMS model (macroeconomic and poverty analysis simulator) indicates a lowering of the incidence of poverty, from 46.4% in 2003 to 40.8% in 2006, that is a decrease of 5.6 points between 2003 and 2006. The cumulated effects of economic growth observed in 2003 (8%), 2004 (4.6%), 2005 (7.1%), and 2006 (6.4%), contributed to a reduction of the total incidence of poverty. One also observes a tendency to a more marked decrease of the incidence of poverty in rural areas (- 5.4 points) than in urban areas (- 3.6 points) between 2003 and 2006. Between 2005 and 2006, depending on socio-economic groups (GSE), the impact of growth on incomes has been positive. Indeed, the cotton farmers, food farmers and stockbreeders incomes have improved by about 6.1%, 4.9%, and 5.7%, respectively. In the same way, the incomes of public sector employees, and of those in the private structured and non structured sectors have increased by 8.5% for the first one, and 10.1% for each of the other two categories. Moreover, deep poverty has been reduced by 0.7 point, and severe poverty by 0.3 point, between 2005 and 2006. The minimum amount necessary to make up the “deficit” of resources of the poor compared to the poverty line has consequently decreased. The average deviation of the poor compared to the poverty line in 2006 appears less important than last year. Under these conditions, the efforts meant to reduce poverty were less important in 2006, compared to 2005. However, taking into consideration the current tendency and in comparison with the Millennium Development Goals (reducing by half the number of people living with less than one dollar per day before year 2015), the variation is important and the road ahead is relatively long, and relevant strategies are needed for faster reduction of the incidence of poverty.

Finally, simulations have shown that a 1% increase in real GDP in 2006 led to 0.6% in poverty reduction, all things being equal. However, inequalities between various households groups have slightly increased between 2005 (Gini index at 0.23) and 2006 (Gini index at 0.24). These satisfactory results may be due to the good policies applied since PRSP implementation.

Table 7:

Evolution of poverty indicators

(based on the PAMS simulation model)

Source : DGEP/DPAM, March 2007

Table 7:

Evolution of poverty indicators

(based on the PAMS simulation model)

	2003 Reference	2004 Estimation	2005 Estimation	2006 Estimation
Poverty indicators
P0 - Total incidence of poverty (%)	46,4	44,4	42,7	40,8
P0- Incidence of rural poverty (%)	52,3	50,4	48,6	46,9
P0- Incidence of urban poverty (%)	19,9	18,5	17,8	16,3
P1 – Depth of poverty, total	15,6	14,7	13,9	13,2
P2 – Severity of poverty, total	7,1	6,7	6,4	6,1
Absolute poverty line (in FCFA)	82 672	82 347	87 609	89 712
Annual variation (%)		–0,4	6,4	2,4
Inequality and incomes Gini (inter-groups)	0,22	0,22	0,23	0,24
Middle incomes (at current prices)
Per capita and per year	123 114	127 713	140 493	148 697
Per capita and per year in US$	212	239	269	283
Impact of growth on incomes
Variation of real middle incomes		-2,4%	6,0%	6,7%
GSE-10 (public sector employees)		-4,6%	6,7%	8,5%
GSE-20 (structured private sector employees)		0,3%	3,5%	10,1%
GSE-30 (non-structured private sector employees)		-2,0%	6,3%	10,1%
GSE-40 (cotton farmers)		-6,3%	11,7%	6,1%
GSE-51 (food farmers)		-3,6%	5,7%	4,9%
GSE-52 (cattle raisers)		-0,7%	4,1%	5,7%
GSE-60 (independent or non-farm employers)		1,7%	4,1%	8,0%
GSE-80 (non-active)		0,7%	6,2%	8,7%
Decomposition of poverty
Total variation of poverty (%)		-4,3%	-3,9%	-4,3%
Total variation of poverty (points)		-2,0	-1,7	-1,8
Growth impact (average variation)		-2,7	-2,3	-2,5
Redistribution impact (inequality variation) and residual		0,7	0,6	0,6
Elasticity
Elasticity of poverty/ real middle income		1,8	-0,6	-0,6
Elasticity of poverty / real GDP growth		-0,9	-0,5	-0,7

Source : DGEP/DPAM, March 2007

View Table

Table 7:

Evolution of poverty indicators

(based on the PAMS simulation model)

	2003 Reference	2004 Estimation	2005 Estimation	2006 Estimation
Poverty indicators
P0 - Total incidence of poverty (%)	46,4	44,4	42,7	40,8
P0- Incidence of rural poverty (%)	52,3	50,4	48,6	46,9
P0- Incidence of urban poverty (%)	19,9	18,5	17,8	16,3
P1 – Depth of poverty, total	15,6	14,7	13,9	13,2
P2 – Severity of poverty, total	7,1	6,7	6,4	6,1
Absolute poverty line (in FCFA)	82 672	82 347	87 609	89 712
Annual variation (%)		–0,4	6,4	2,4
Inequality and incomes Gini (inter-groups)	0,22	0,22	0,23	0,24
Middle incomes (at current prices)
Per capita and per year	123 114	127 713	140 493	148 697
Per capita and per year in US$	212	239	269	283
Impact of growth on incomes
Variation of real middle incomes		-2,4%	6,0%	6,7%
GSE-10 (public sector employees)		-4,6%	6,7%	8,5%
GSE-20 (structured private sector employees)		0,3%	3,5%	10,1%
GSE-30 (non-structured private sector employees)		-2,0%	6,3%	10,1%
GSE-40 (cotton farmers)		-6,3%	11,7%	6,1%
GSE-51 (food farmers)		-3,6%	5,7%	4,9%
GSE-52 (cattle raisers)		-0,7%	4,1%	5,7%
GSE-60 (independent or non-farm employers)		1,7%	4,1%	8,0%
GSE-80 (non-active)		0,7%	6,2%	8,7%
Decomposition of poverty
Total variation of poverty (%)		-4,3%	-3,9%	-4,3%
Total variation of poverty (points)		-2,0	-1,7	-1,8
Growth impact (average variation)		-2,7	-2,3	-2,5
Redistribution impact (inequality variation) and residual		0,7	0,6	0,6
Elasticity
Elasticity of poverty/ real middle income		1,8	-0,6	-0,6
Elasticity of poverty / real GDP growth		-0,9	-0,5	-0,7

Source : DGEP/DPAM, March 2007

2.2.2. Improving the business climate to promote the private sector

With the purpose of promoting the private sector, the government has maintained a dialogue with that sector in 2006 on the theme of the “Adequacy between increasing public revenue and providing incentives to investment through attractive taxation”. The government efforts contributed to simplify business operations, particularly in improving private sector promotional tools and the legal environment. Thus, the Ouagadougou National Agency for Assisting Company Creation (CEFORE) was launched on January 9, 2006, and made it possible to reduce by 1/3 the time needed to comply with the formalities and procedures required to create a business, which are now carried out within a maximum of 7 days instead 23 to 34 days as was previously the case. The costs of these formalities were also reduced by more than 40% under the September 15, 2006 decree. The number of administrative formalities to create a business were reduced from 8 to 4. These efforts made it possible for CEFORE to process 3.865 demands related to creating, buying, taking over, or expanding a business; and 2.582 new businesses were created with the assistance of Ouagadougou CEFORE, including 16.5% by women.

The Shared-Cost Support Fund (FSCP) and the “chèques services” (service vouchers) mechanisms have allowed 585 interventions to benefit the private sector during year 2006. These means of support, provided as subsidies by the World Bank and the European Union, mobilized a total budget of 850.049.145 FCFA, generated approximately 400 new jobs, allowed significant improvements in productivity, return on turnover, management, and access to markets for businesses.

Regarding the “cheques services’’ created on March 29, 2006, the following results are to be mentioned:

• - Meeting of 15 approval commissions to examine requests for “cheques services”;

• - Approval of 410 requests for financing from 17 provinces, for an amount of 160,160.090 FCFA.

• - Promotion of 15 development services (“services de développement ‘’) for effective use by the service beneficiaries;

• - Participation of 51 service providers for business capacity building

The actions taken within the framework of the Shared-Cost Support Fund ranged from analysis to follow-up of submitted dossiers. The project selection committee held 27 sessions. In quantitative terms, the FSCP subsidized 175 projects for an amount of 690,788.379 FCFA.

The physical transfer of the one-stop shops (CGU) to the Burkina Faso Business Centre, which is not effective yet, could have contributed with the Ouagadougou CEFORE, FSCP and the “cheques services” (service vouchers) to even better improve the business climate.

The merits of the Trade Point and Fasonorm, created at the National Foreign Trade Office (ONAC) level, have been recognized beyond national borders in 2006. Thus, thanks to the various partnerships it has developed, Burkina Faso Trade Point has been chosen as reference for the ECOWAS Trade Opportunities Management System (SIGOA-TOPS) Web sites for electronic trade. In May 2006, Burkina Faso has been selected as the Commercial and Agricultural Information Focal Point (PICA) by the IFCD regional program MISTOWA. In the same way, the Central African Economic and Monetary Union (CEMAC) and the West African Economic and Monetary Union (UEMOA), through their collaboration with the International Trade Centre (ITC), have chosen Burkina Faso Trade Point as the focal point for their sub-regional Web site Relais info.com.

In 2006, Fasonorm has created in accordance with the procedure recommended by ISO (International Standardization Organization) six standards, approved by decree n^o06-053/MCPEA/SG/ONAC for almonds, shea butter, nuts, cashew kernel, sesame, and cowpeas.

Other new structures have been created during year 2006 to assist the business community. One example is the Ouagadougou Arbitration, Mediation and Conciliation Center (CAMC-O) created to provide businesses with a structure to resolve their disputes by way of arbitration. CAMC-O has now offices (that have been renovated), and the board of directors as well as the permanent secretariat are functional. An escrow fund has also been set up to support institutional measures in order to better implement employment contracts.

Finally, in year 2006, the decree on the creation, organization and operation of an Approved Management Center (CGA); the statutes and procedures of the Ouagadougou CGA pilot; the drafting of the subsidy contract; and the adoption of an implementation timing chart, have all been finalized. The CGA purpose is: (I) to assist members in terms of management and accounting tasks, (II) to keep regular accounts for the members who require that service, and (III) to prepare tax returns for them. The decree is being adopted to allow effective implementation of CGA centers. These centers, according to their mission statement, will contribute to the formalization of informal businesses, and thus to the improvement of government revenue. The setting-up of these CGA centers in Burkina Faso has many advantages, which are, among others:

• - Improving businesses access to credit and competitiveness;

• - eliminating the informal economy or reducing its size;

• - widening the government’s fiscal base by improving the quality of tax returns and reducing tax avoidance.

The decision to create commercial courts within all district courts could not be implemented because of constraints in terms of human resources, but the government had the option to strengthen the capacities of the existing commercial chambers (chambres commerciales); which it started doing in year 2006.

The measures and actions undertaken to improve the investment climate that were referred to in the report ‘Doing Business’ (as the 10 measures), have been successfully implemented in year 2006. In particular:

• - The Ouagadougou CEFORE became operational, and another one has been created in Sore-Dioulasso, and in terms of business creation, the need for an administrative notice/opinion has been suspended and the license procedure simplified;

• - a Urbanism Code has been adopted by the National Assembly on May 18, 2006, in order to regulate the building sector;

• - a special procedure for the delivery of land titles in the cities of Ouagadougou and Sore-Dioulasso has been set up to facilitate the transfer of property;

• - a ministerial study committee on the issues of the cessation of business activities, and the training of judges and clerks on the matter has been set up;

• - a center for arbitration, mediation and conciliation for commercial disputes, and the escrow fund, in cases of labor disputes has been launched, in order to facilitate and ensure proper contracts implementation.

Fiscal reforms resulted in several significant achievements, such as: (I) the reduction of the registration, royalties and license fees from 10% to 5%; (II) the widening of the tax base thanks to the ongoing taxpayers’ census, 80% of which has been achieved; (III) the cost of a company incorporation, the extension of its duration, and its merger with others, has been set at 6.000 FCFA (iv) the reduction by half (from 2% to 1%) of the BIC advance payment for the structured sector importers, and to 5% for the informal sector and occasional importers; (v) the reduction of the single tax on fire-insurance contracts from 30% to 20%, and the insurance for road public transport from 24% to 12%.

Within the framework of the program “Doing Better Business in Burkina Faso” initiated by the International Finance Corporation (IFC) through the Partnership for Private Enterprise in Africa (PEP - Africa), these achievements will be consolidated and the ongoing efforts continued, in order to improve Burkina Faso’s ranking in the first quartile of African countries, where the legal environment is favorable to investments. This program started in March 2006 will be carried out over thirty months. All the achievements made in year 2006 will make it possible for Burkina Faso to improve its ranking in the Doing Business report. The report published in 2007 has already noticed these achievements, and Burkina Faso improved its ranking by 8 and 23 positions respectively, in the indexes “easiness of doing business”, and “business creation”.

In order to vigorously promote the private sector, an action plan, part of the Policy Paper on Private Sector Development (LPDSP) implementation is being prepared, and will be discussed in a round table with technical and financial partners to mobilize the necessary resources for its financing.

Some actions could not be finalized in the course of the year under review, such as the revision of the investment code, the review of the basic texts on trade for which a necessary dialogue is still taking place; the development of a new General Tax Code; and the physical transfer of the one-stop shop to the Maison de l’Entreprise du Burkina Faso after completion of the building renovation work. The fact that several actors are involved in the implementation of this plan, the cross-sectoral character of some measures and actions, the complexity of some administrative procedures, the sluggishness of some administrative agencies to proceed with major reforms as well as budgetary constraints are the main difficulties encountered, which resulted in the delay observed in the implementation of the actions and measures under consideration.

2.2.3. Improving the economy’s competitiveness and reducing the cost factor

The Government and its partner’s efforts to improve the economy’s competitiveness were pursued in 2006. The Chamber of Commerce is considering the construction of an international business district in Ouagadougou, called “World Trade Center”. The Maison de l’entreprise has also undertaken business capacity building activities through the cheques services and the Shared-cost support fund.

In order to regulate the market and disseminate information about shadow prices, the government set up a system to collect and analyze the prices actually practiced on national markets. The main target cities for this purpose were: Ouagadougou, Bobo-Dioulasso, Koudougou, Ouahigouya and Koupéla, and staple products prices (food, industrial or others) are collected in these cities every two weeks. To fight fraud and promote a healthy competition, in addition to the information on staple products prices trend for consumers, periodic controls of fixed prices staple products (generic essential drugs, hydrocarbons and stationery) are also carried out. Measuring instruments, and imported or locally manufactured foodstuff, are also subjected to quality control. Thirteen rice imports companies have been controlled and all the above-mentioned cities supermarkets checked regularly. Quality control of staple products seasonings, milk, flours, oils, cooking salt, bread, etc. will intensify during year 2007.

The Chamber of Commerce, Industry, and Crafts of Burkina (CCIA-B) that contributes to the fight against fraud, set up a data bank on imported goods. This data bank is currently tested at Ouagadougou international road station. The National Competition and Consumption Commission has pursued its activities in terms of information, and training in the whole country.

As part of the efforts to strengthen the economic information system, CCIA-BF started setting up an Economic Intelligence Master Plan (SDIE) that aims at providing diversified economic information to CCIA-BF technical departments and other users. A study on that matter has been performed and data collection started in year 2006. Thus, the production of press kits (articles dealing with the Burkinabé business environment) was pursued. As of 12/13/2006, the data file NERE included nearly 7.329 press kits. Since February 2006, information on ship movement in the ports of Tema and Lomé is put on line on the Chamber of Commerce website (www.ccia.bf), in addition to business opportunities posted there. Moreover, the Internet site for the international promotion of Burkinabé craft industry available at www.artisanat-burkina.com has received a substantial number of hits, thus contributing to artisanal production visibility.

In 2006, the Government continued implementing the privatization and enterprise reform program in order to provide more incentives to produce and invest. Apart from ONATEL whose first privatization stage has been completed according to schedule, the other large companies providing commercial public services have experienced problems in 2006. This situation is explained primarily by the persistence of constraints related to procedures designed to obtain declaration of no objection from support partners. Another factor is the slowness of the consultants/experts recruitment process. The ONEA process being halted, the situation for each company is as follows:

National Telecommunications Office (ONATEL)

The most important fact in year 2006 was the implementation of ONATEL privatization process first phase, with the signature on December 29, 2006, of the convention regarding the transfer of 51% of the company’s shares. Thanks to this operation, it was possible for the Burkinabé Treasury to garner the sum of 144.310.540 000 FCFA, significantly contributing to the improvement of public revenue.

After completion of the transaction with the strategic buyer, MOROC TELECOM, the following stage will concern the transfer of 20% of ONATEL shares through a public offer for sale (Offre publique de vente - OPV) for public shareholding at the national and sub-regional levels, and its listing on the regional stock exchange as well as the transfer of 6% of its shares to the staff. Accordingly, the Burkinabé financial intermediation company, selected as a national intermediation and management company to implement the transaction, has prepared the required documents to that effect. The effective implementation of OPV on the money market should take place in year 2007.

The National Electricity Company of Burkina Faso (SONABEL)

Leasing is the strategy adopted for the privatization of this company. Preliminary studies (audit for fiscal years 2002 to 2005, infrastructures technical audit, assets inventory, and human resources audit) could not be carried out in 2006 because of the late release of the no objection statements. Other reasons for the delay are related to the fact that some financial partners required a review of the law on electricity, and the setting up of a regulatory body for the sector. Thus, the leasing of SONABEL initially planned for the end of 2006, will happen, at best, only in 2007 if not in 2008

The Burkinabé National Hydrocarbons Company (SONABHY)

The service contract for auditing fiscal years 2002 to 2005 was signed on November 17, 2006, and notification was made to the consultant to start his work on January 10, 2007. The assessment of the company in order to proceed with a partial opening of its capital could not be carried out in 2006

The Bureau of Mines and Geology of Burkina Faso (BUMIGEB)

The actualized final report presented by the firm SOFIDEC envisions two possible scenarios in terms of government divestiture strategy : (I) the winding up of BUMIGEB with, as a consequence, the realization of the commercial assets, in particular water well drilling, and the settlement of liabilities; (II) the transfer of commercial assets, including the possibility of selling a portion of the land, with the preservation of BUMIGEB as an autonomous EPA entity, and the settlement of the liabilities by the government, while taking into account the workers rights. These proposals still need to be refined.

The international airports of Ouagadougou and Bobo-Dioulasso

The airports privatization process as initially conceived (concession of the Ouagadougou international airport and leasing of that of Sore-Dioulasso) is suspended because of interactions between international airports privatization and the construction project of the new Ouagadougou airport.

With regard to the new airport, the privatization strategy was presented on July 10, 2006. The conclusions of the study relating to the strategy for moving the Ouagadougou international airport, developed by the firm LUFTHANSA Consulting were presented on September 22, 2006, to the members of the Government involved in implementing the project (Minister of Transport, Minister of Trade, oEnterprise Promotion and Crafts, Minister of “Desenclavement” (opening-up of the territory), of the Economy and Development).

The Control Center for Motor Vehicles) (CCVA)

The privatization strategy definition and evaluation report is available. The strategy envisions the opening of CCVA capital by transferring shares to the private sector, together with other measures like maintaining the monopoly status as regards to vehicle inspection for the privatized CCVA, and the creation of an entity in charge of the management of the activities related to road safety and environmental protection.

The Silmandé Hotel Operating Company (SEHS)

The board of directors met on December 28, 2006 to acknowledge the selling of their shares by the small shareholders (Groupe Accord, SONAR, SGBB) to the Government of Burkina Faso for one symbolic franc, and the signature of the deeds of transfer by the aforementioned shareholders. The Government becoming the only shareholder, the following adaptations will be carried out: (I) updating the company’s statutes; (II) developing a reorganization plan; and (III) amending the leasing-management draft contract which was submitted to the tender. The effective implementation of these adaptations will be completed in the course of year 2007

The situation of the enterprises that will be liquidated is as follows:

National Cinema Company (SONACIB)

SONACIB has been presented with several privatization schemes, among them one by the Council of Ministers following its meeting of June 25, 2003, which included an administrative liquidation of the company and cinematic projection activities to be performed by professional private operators, organized in an African Association of Actors, Producers and Directors (ARPA).

As a consequence of the multiple difficulties encountered by the liquidator and ARPA, the Council of Ministers, in its meeting of February 15, 2006, put an end to ARPA mandated, and authorized the privatization commission to complete the liquidation. Thus, the liquidator undertook the following actions: (I) sale of SONACIB movie theaters; (II) payment of the loans due to third parties and to the CNSS.

It is important to note that the lengthy search for buyers for some movie theaters contributed mostly to delay the completion of the process. In spite of this, the liquidation was implemented and a completion report was presented by the liquidator, which shows a profit in the amount of 102,946.762 FCFA.

Burkinabé Precious Metals Agency (CBMP)

The Council of Ministers has designated the AMC/SOFIDEC group as the CBMP liquidator during its December 8, 2005 meeting. The group began its work on January 31, 2006, and proceeded with workers payment on February 15, 2006. The final liquidation report is now available. The liquidation has generated some 228,327.808 FCFA

Computer Processing National Center (CENATRIN)

The completion report presented by the liquidator included a description of the activities performed as well as the difficulties faced during the liquidation process. The liquidation generated an amount of 10,692.924 FCFA.

On the chapter of liquidations, in spite of the recorded delays, the current liquidation process will be completed by mid-year 2007. For the privatization process to proceed efficiently, it is important to set up legal assistance and communication programs in order to increase the capacities and competences of the privatization commission, and to give more visibility to the remaining operations, which are expected to be completed by 2008.

With the aim of contributing to the diversification of export earnings, as well as the organization of production and marketing chains, the fruit terminal of Bobo-Dioulasso became functional. Moreover, specific areas have been created in Bittou and on the borders with Ghana and Mali, in order to respond to demand. In Dakola, an area for the reception of goods has been set up near the customs.

In terms of the energy sector refrom, the Government has decided to improve the energy sector management, and cover the country’s energy needs, as well as to reduce the cost of energy and create the best conditions for private sector participation in the development of energy infrastructures.

Concerning this sector management, the 2006 due dates could not be respected. As for the setting up of the energy sector regulatory entity, legal experts are being recruited who will develop its legal content. This regulatory entity should be ready by June 2008. The development of a National Electrification Plan (PNE) follows its course, and the last version has been submitted by the international experts working on this task. The Plan will have to take into account the multisectoral approach being developed with the support of ECOWAS and the European Union. The ongoing studies on the sector (BAD) are based on this document.

On the topic of energy supply to the country, during the year 2006, the Government has continued to provide subsidies in the amounts of 108 million FCFA for butane gas to contribute to preserving the environment, and 21,462 billion FCFA to SONABEL for fuel oil and DDO in order to extend the network to rural populations, and mitigate the impact of the rise in oil prices. The decrease in acquisition prices following trade negotiations, the suppression of the CPVI, and the reduction of the waste rate are also factors that contributed to attenuate the impact of the rise in the price of oil.

Moreover, CRCO benefited from an additional capacity of 18 MW, financed by Danish mixed loans and finalized in 2006, which contributed to increase its output. The construction of a 225 Kv transport line connecting Bobo-Dioulasso to Ouagadougou has started; the negotiation process (including contracts signature) is in progress and construction work should be completed by October 2008. In addition, the construction of the Ouagadougou 90 Kv loop is completed. The strengthening of the Kompienga - Bagre - Ouagadougou transport lines is in progress, and the tender documents for the selection of a company to perform the work will be ready soon. Similarly, the electrification of the agglomerations located on the line as well as the tender documents are being finalized.

With regard to wood energy, year 2006 was devoted to pursuing capacity building actions in favor of the national federation of forest management groups, in terms of forest legislation and sensitizing campaigns on HIV-AIDS. Activities related to the wood energy component of the of Danish support program to Burkina Faso energy sector (Exit Phase, PASE Oméga) were also launched in 2006. Moreover, the formulation of the biomass component of the World Bank project “Access to energy” has been completed.

Concerning heating wood, and charcoal energy saving, 200 000 improved furnaces have been distributed in the towns of Ouagadougou, Bobo-Dioulasso and Koudougou, and training provided to ten Ouagadougou craftsmen to manufacture of a new energy efficient type of furnace.

Concerning the telecommunications and ICT promotion sector, year 2006 saw the organization of this sector through the creation of a Ministry of Posts, Information Technology and Communications (MPTIC), the adoption of a letter of sectoral policy and an operational plan for the promotion of information and communication technologies, 2006-2010. Since January 1, 2006, the sector is open to competition.

In the transport sector, the requirements to gain access to the public carrier profession have been reviewed in order to increase the performance of the sector through the adoption of a regulatory framework. Thus, a framework law (loi d’orientation) to allow the transport sector to play its part in support of industrial and commercial activities is being developed (with an implementation rate estimated at 50%).

Moreover, Burkina air services have been strengthened through the resumption of the operations of the Gabonese airline company AVIREX, and the increase in ANTRAK AIR flights. In the same vain, an agreement on non double taxation on incomes from international air transport activities was signed with the Ethiopian authorities in anticipation of the resumption of ETHIOPIAN AIRLINES activities. The same agreement has been signed with Chad in anticipation of the opening of the Ouagadougou-N’Djamena connection

With regard to road safety, the need to improve urban and intra-urban traffic conditions has resulted in the development of a national policy for road safety, the implementation of two public awareness campaigns on road safety, and the strengthening of the regulatory framework on road traffic, including the introduction of helmet protection.

Pursuant to governmental instructions to improve traffic fluidity, it has been decided to temporarily suspend road controls on all trunk roads in Burkina Faso, in order to better organize them within the framework of the new road control system in progress. However, this measure (of control suspension) had negative side effects, as many carriers had a tendency to violate road safety regulations, in particular with regard to documents aboard a vehicle. Moreover, five weighbridges were acquired, three of which were installed at border posts allowing to control the flow of goods weight.

As part of the efforts to improve the performance of road sub-sector Small and Mid-Sized Enterprises (SME), three hundred and fifty private actors attended training seminars on modern management techniques and rules, thanks to a support from the second sectoral transport program.

With regard to the reduction of factors cost, efforts were made to control these costs. Thus, in terms of energy, prices at the pump decreased in January 2006 from 632 FCFA and 573 FCFA respectively for super 91 and gas oil, to 590 FCFA and 551 FCFA in December 2006, a reduction of 7% for super and 4% for gas oil. High prices of petroleum products prompted the government to diversify sources of supply and to look for products to substitute for fossil fuels. Thus, a study is currently being done to determine the possibilities for biofuel and bioelectricity development from the various types of biomass available in the Sourou and Bagré valleys.

In relation to the water sector, the efforts made by ONEA to supply drinking water allowed to reach a rate of accessibility of 67% during year 2006, with an average price of 540 FCFA per cubic meter including all taxes. The number of customers increased from 101 755 in 2005 to 127 326 in 2006, that is a rise of 25,12%. This rise can be explained in part by the promotional activities organized by ONEA in 2006, which made it possible to get an ONEA connection at a lower cost.

As to telecommunications, mobile communications tariffs fell in 2006 compared to 2005 for intra networks, inter networks, and local fixed communications, by respectively 22%, 30%, and 26%.

However, regarding SONABEL, the price per kWh in 2004 increased from 86 FCFA for a single-phase 2Wire Type B 5A low voltage connection, to 96 FCFA in 2006, which constitutes an increase of more than 11%. The total cost of the subscription has known an increase of 22.55% for the same type of connection in the same period. This indicates that efforts must be made in this area, since energy is an essential factor in the production process and companies operations.

For primary factors such as labor, the objectives in terms of reducing labor market rigidity (75% incidence) were almost achieved in 2006 (64% incidence). The sessions of the advisory commission on labor led to the adoption of implementing provisions regarding the Workers’ Statute, in particular: (I) the decree concerning overtime payment and methods of remuneration; (II) the decree laying down implementing provisions regarding the 40 hours week in nonagricultural sectors, and (III) the decree on layoff conditions and procedure, and related compensations.

2.2.4. Promoting regional integration to develop a service-based economy

In order to promote Burkina Faso as a destination of first choice, the “Ouaga International” project was initiated by CCIA-BF. It is a structure whose purpose is to promote Ouagadougou international outreach, with regional institutions and large companies with regional activities choosing Burkina Faso’s capital as their headquarters. The CCIA-BF has worked on identifying technical and financial partners for this project, and invited them to visit Burkina Faso. These are : “Montreal International” and “Bretagne International”.

In year 2006, Burkina Faso has pursued actions in promotion of the country’s commercial interests. After the setting up of the AGOA at the national level and the adoption of appropriate regulatory texts, Burkina Faso has obtained the textile visa in July 2006, while the process for obtaining category 9 visa for handmade articles (traditional textiles and crafts) is in progress. Burkina Faso also took part in discussion meetings on the cotton issue with the West African Economic and Monetary Union (WAEMU) member states, and the C4 member countries (Benin, Burkina Faso, Mali and Chad). Burkina Faso representatives also attended various meetings dealing with trade issues, organized by regional organizations such as the Economic Community of West African States (ECOWAS), the African Union (AU), and the African, Caribbean and Pacific Group of States. In spite of the suspension of negotiations with WTO that occurred in July 2006, Burkina Faso continued, with the other countries member of the cotton sectoral initiative, to promote its views on the occasion of regional, sub-regional and international discussions.

With regard to Economic Partnership Agreements (APE), the negotiations between the European Union and West Africa benefit from a rigorous and regular follow-up by Burkina Faso. During year 2006, Burkina Faso took part in various negotiations, adding its voice to that of the other countries of the area to affirm the need for APE becoming a genuine development instrument for the region.

In order to promote a harmonious and accelerated integration of Burkina Faso into the global economy, the Diagnostic Trade Integration Study (EDIC) was launched on February 2, 2006 during a workshop organized to inform and sensitize the private sector about the program’s objectives and priorities. The EDIC provisional results have been reviewed during a technical workshop held on December 12, 2006.

The study on saving determinants and private investment in Burkina Faso, and the one on APE medium-term impact, could not be carried out in 2006 as envisaged, because of financial constraints. The same constraints applied for the study on export promotion through the upgrading of the various export channels (filières) and sectors, part of Burkina’s national strategy for export promotion. These studies will be renewed in 2007, given their importance.

2.2.5. Supporting productive sectors to improve their contribution to economic growth

In terms of rural development and food safety, crop year 2006/2007 was characterized by:

- late seeding operations in most areas, and many self-sowings;

- floods in several regions that caused losses in terms of areas under wheat (surfaces emblavées), in particular in the Sahel, Center-North, Top-Basins, Boucle de Mouhoun, South West, Center South and North regions;

- pockets of droughts, particularly in the Sahel, Center-North, the East, and Center-East regions;

- attacks by anti-crop pest groups in the Sahel and Center-East regions, which have been contained however.

In spite of these constraints, the crop year estimated results indicate a net surplus of 1,099.206 tons-cereals (approximately 43% of the country’s needs) for a gross output of 3,858.224 tons-cereals, that is an increase of 6% compared to the previous year.

Other crops were estimated at: 750,502 tons for cotton, 211,029 tons for groundnut, 23,037 tons for sesame, 5,648 tons for soy, 429,818 tons for cowpeas 38,240 tons for earth pea (voandzou), 20,110 tons for yam, and 80,807 tons for potato.

In terms of meeting the needs of the population, an assessment of the situation in the various provinces shows that 23 provinces have reached or exceeded a coverage ratio of their needs of 120%; 14 provinces have rates ranging between 90% and 120%, and 8 provinces a rate lower than 90%.

The mechanism set up for food security management was used in year 2006. The National council for emergency assistance permanent secretariat (SP/CONASUR) provided assistance to the areas affected by floods in the forms of free food, food against work, food for training, cereals banks, and support to school canteens. Year 2006 saw the reconstitution of the national food safety stocks and the national intervention stock, up to 15,928.64 tons and 6,721 tons respectively.

In 2006, most markets have been adequately supplied, sign of a good crop year. Moreover, the information system on prices performed well, in particular: (I) the collection and dissemination of information on agricultural product prices concerning 48 markets, and (II) the publication of 52 weekly news bulletins, 4 quarterly reports on agricultural product prices and a statistical directory of cereal prices. In terms of the evolution of cereal price index, a rather substantial dispersion of prices during the year through the country can be observed. Compared to the previous year, we notice a fall in prices of about 35% on average.

The new food safety mechanism was operationalized in 2006 through:

• the official setting up of the National Council for Food Safety (CNSA) on April 7, 2006;

• the signature of the decree concerning the organization and operations of CNSA decentralized structures (November 2006);

• the preparation and finalization of a program for the appointment and training of CNSA decentralized structures members.

With regard to animal husbandry, there is a relative abundance of fodder resources and water, with, however, pluviometric deficits in the northern areas of the country. Prices trend in the country’s cattle market showed an increase in the price of animals in 2006 compared to 2005.

The cotton sector of West Africa is going through a crisis without precedent in terms of duration and intensity, with falling prices on the world market combined, for more than three years, to an unfavorable exchange rate of the euro vs. the dollar. Because of the exhaustion of the internal support funds for the cotton sector, producer prices have reached levels that are becoming discouraging, and cotton companies found themselves in an extremely critical position.

Burkina Faso’s cotton sector can be considered, since September 2004, as a multi-operators sector, with mainly three companies (SOFITEX, SOCOMA and FASO COTTON) working in strong partnership with the cotton producers organized in 8 000 cotton producer groups (GPC), present in the whole country, and federated in the Burkina Cotton Producers National Association (UNPC-B). The two last crop years of 2004-2005 and 2005-2006 were marked by a crisis due to the fall of the dollar combined to the subsidies provided by industrialized countries to their producers. After considerable losses during these two consecutive crop years, the main cotton company net worth, SOFITEX, fell to zero.

This financial crisis of two consecutive years led to a reduction in the price paid to producers, from 10 FCFA per kg to 175 FCFA per kg in 2005/2006, and to 165 FCFA per kg in 2006/2007. This situation had drastic consequences for the producers in terms of living conditions, access to basic social services, cereals supply, and poverty reduction. In addition, the cotton companies had to defer their investment programs, with a 37% investment decrease in 2006 in Burkina Faso’s agribusiness sector. The macroeconomic consequences of this crisis has generated a fall in tax revenue, and negatively impacted year 2006 national growth rate by about 0,7% in comparison to year 2005, because of a reduction in household consumption in the last quarter of year 2006. However, the cotton crisis has been solved and the prerequisites for its sustainable development are now in place.

The organization of the cotton sector was strengthened through the creation by the actors of an interprofessional association on February 26, 2006. This association gathers cotton producers national union and the cotton trade association of Burkina Faso. A certain number of measures were introduced, in particular a new mechanism to determine the price paid to producers based on a ‘smoothing’ fund designed to prevent the effect of the world market fluctuations and to proceed with the recapitalization of SOFITEX. The first phase of SOFITEX recapitalization was implemented with an amount of 34.4 billion FCFA, and the two cotton ginning private companies should be recapitalized by their shareholders.

In the area of microfinance, year 2006 saw the adoption of the national microfinance strategy 2006-2010 action plan, the organization of the microfinance week (October 3 to October 10, 2006), the dialogue on the financing of the microfinance national strategy with the technical and financial partners, and the recruitment of the implementation unit technical staff.

Public sensitization campaigns were also carried out (production of brochures, TV and radio, programs, information and sensitization of local authorities and the various actors on the Micro finance institutions (IMF) regulation). The fact that the Economic and Social Council devoted a session to this issue testifies to the interest for this mode of financing.

In addition, the national strategy objectives were pursued with more sector supervision activities and increased participation from regional treasury offices, and an authorizations was granted to eleven new operators. Indeed, the total number of microfinance institutions operating legally increased to 320, and 769 600 people benefited from their services, with outstanding credits worth 35 billion FCFA.

In the area of transport infrastructures, programmed measures and actions related to road, railway, airport and cartographic infrastructures were carried out, and their implementation improved the road network and ensured improved Burkina Faso’s access to the ocean. In addition, the improvement of the feeder corridors contributed to reduce travel time and vehicles expenses. Several other initiatives for the development of airport and railway infrastructures were undertaken.

However, difficulties in programming measures and actions, the financial and technical capacities of some actors, and financing issues, somewhat limited the implementation of the programmed actions. With regard to road infrastructures, implementation results are :

• - 14 161 km network roads have been maintained, representing a 100% rate of implementation;

• - 259 km dirt roads, for 901 Km scheduled, received routine maintenance, representing a 28.75% rate of implementation;

• - 301 km dirt roads have been rehabilitated for 1 079 km scheduled, that is a rate of 27.9%;

• - 195 km asphalt roads were reinforced;

• - 244 km of roads were asphalted, that is a 145.5% rate of implementation ;

• - The demarcation of the road network was pursued;

• - the building of the access road to the railroad station of Bobo-Dioulasso was started but is not completed;

• - the study for a road maintenance fund was initiated;

• - the payment procedures for the promotion of SME have been improved;

• - the study for “road maintenance contracts by level of service (GENiS)” in order to perform timely maintenance programs was completed.

Finally, the Ouagadougou international motor freight terminal (Ouagarinter) is being rehabilitated, to become more functional and better adapted to the needs of the business community. The CCIA-B has also started the construction works of the Bobo-Dioulasso international motor freight terminal, with a cost of more than 5 billion FCFA.

With regard to railway infrastructures, initiatives for the interconnection of the railroad network Burkina-Ghana were carried out, with the completion in November 2006 of the technical and economic feasibility study for the interconnection between Ouagadougou and Kumasi. In spite of the feasibility study pessimistic conclusions, the engineering bureau has pointed out to several possibilities in order to reduce infrastructure construction and equipment costs and to improve project effectiveness and carry out detailed technical studies, and develop tender documents.

On the institutional level, it should be noted that the 2006 consultation meeting, Burkina Faso/SITARAIL, contributed to reengage a productive dialogue between the government of Burkina Faso and SITARAIL Directorate-General in order to address the main unresolved issues, namely:

- the payment of the right of user to the SOPAFER-B;

- the implementation of the mediation and appraisal mission regarding the “Real levels” issue of the Burkinabé employees working with SITARAIL;

- the initiation of the review procedure and the adoption of the Single Statute of SITARAIL uniform Staff Regulations.

In the area of airport infrastructures, in year 2006, the studies concerning the new airport project were carried on, and contacts with various donors likely to support the government in the realization of the project were established. The following related activities should be mentioned:

- the launching of the air terminal and presidential pavilion architectural studies;

- the finalization of the access roads study ;

- the launching of the study on the impact on the environment and population resettlements;

- the finalization of the technical study;

- the presentation of the project at the international airports association annual conference held in Cape Town, South Africa, in November 2006. This presentation is part of resource mobilization efforts.

With an aim of facilitating harbor-related operations for the business community, harbor facilities are being built in the port of Téma. They consist of:

- a 6.000 m² metallic structure covered warehouse;

- a 5.000 m² maneuvering and storage area;

- a 1.200 m² office building on two levels.

The financing of the project phase 2 concerning the construction of a dry port (site preparation for the construction of manufacturing units) is also being negotiated with local banks.

About cartographic infrastructures, the programmed acquisitions (a cartographic production chain, and a plane for aerial photography) could not be completed. However,

- 200 geodetic network boundary mounds were rehabilitated;

- 400 leveling network boundary mounds were rehabilitated; and

- 3 city plans were produced.

In the mining sector, in order to allow the small-scale mining sub-sector to contribute efficiently to increasing production and reducing poverty, the government adopted in 2006 three implementing decrees of the new mining code, while eight other decrees remain to be adopted.

The organization of the mining sector was pursued in 2006. Thus, regarding large mines, a favorable opinion was issued by the national mining commission to grant three new extraction permits. They concern Mana (Mouhoun) and Inata (Soum) for gold, and Nantou Mining (Sanguié) for zinc.

With regard to small-scale mining, two hundred gold washers have been trained in ore processing. Moreover, in year 2006, social facilities have been built on three sites, Bagassi (Basle), Dano V3 (Ioba), Fandiora III (Comoé), in particular water drilling and water towers. In addition, forestation and pollution control actions were carried out on these gold bearing sites.

In the industrial and commercial sectors, the government efforts have focused on the consolidation of the industrial base through the rehabilitation of industrial companies which started in 2005, particularly FILSAH, JOSSIRA, GMB and FASOTEX, all promising companies. In addition, significant efforts were made in order to proceed with the transformation of Burkina Faso’s cotton, and promotion missions were carried out in Morocco and Turkey to support partnerships. Activities to promote biofuel production in Burkina Faso were also performed, and year 2007 will see the implementation of production facilities to that effect.

In order to offer more space (industrial parks) to investors and particularly industrialists, the “Larger Ouaga” urban plan includes an industrial site at Zagtouli However, no study has been undertaken to concretize this project yet.

With regard to small and medium-sized enterprises (SME), and small and medium-sized industries (SMI), the terms of reference for a study to define a support program for these enterprises in agriculture, animal husbandry, fishery, forest, and faunal resources are being determined (2006). The search for financing for this study is in progress. The invitations to tender are also in progress, under the supervision of the Faso Baara agency for the creation of a technopolis for the promotion of SME in the ZAD II area of Ouagadougou. Some actions programmed in the PAP 2006 - 2008 could be discarded to the benefit of others, in order to rationalize the various interventions. They concern:

• - the establishment of a support fund for SME development, a concern which will find its solution with the reorganization of the support program for small and medium-sized companies (PAPME) that will become the National Agency for the Promotion of SME (ANP/PME);

• - the creation of a risk-capital company, which is not needed because there will be duplication with the SME bank in project that will naturally include related financial mechanisms (subsidy funds, guarantee funds, risk-based capital system);

• - the development of a national support program for SME/SMI development which lies within the scope of the support program for the promotion of SME/SMI in industry, animal husbandry, fishery, forest, and faunal resources;

• - the legal provisions providing tax incentives for the acquisition of small agro-industrial units and spinning mills equipment, which will be included in the investment code under revision.

In the craft industry, the government efforts deployed in 2006 aimed at supporting the commercial promotion of artisanal products, the implementation of support projects to the craft industry, and the organization of the sector participants.

In terms of commercial promotion, the International Africa Fibers and Materials Exhibition (Salon international des fibres et matières d’Afrique --SAFIMA) was held in Ouagadougou in June 2006, and the Ouagadougou International Handicraft Exhibition (Salon international de l’artisanat de Ouagadougou -SIAO) in October-November 2006. The two exhibitions provided opportunities to meet professional purchasers and to reflect on the positioning of Africa on the world trade stage.

With regard to the sector’s projects and programs, the implementation of the Burkina craft industry promotion program (PROM art-Burkina) and the artisanal textile promotion program (Profita) includes the following 2006 achievements:

• - financing of craftsman initiatives for an amount of about 127,000.000 FCFA;

• - training of 685 artisans, including 426 craftswomen and supervision of 50 artisanal units, part of the support provided to emerging artisanal micro-enterprises;

• - providing new equipment to 53 artisanal manufacturing units (sewing machines, mills, welding machines, anvils, soap cutting machines, weaving machines, hand vices, screw clamps, shea butter presses, spinning wheels, baker’s ovens, etc.

These two support programs to the craft industry will be completed in 2007.

With regard to the culture and tourism sectors, the main activities carried out in 2006 included: (I) strengthening synergy between culture and tourism, (II) valorizing the country’s ecological heritage, (III) supporting and supervising the sectors’ operators, (iv) setting up an international structure for tourism and promoting tourist companies access to credit, and (v) implementing a tourist development policy.

Concerning the activities achieved in 2006 to strengthen synergy between culture and tourism, an inventory of cultural sites with a tourist vocation, including 12 new inventoried sites, was carried out; the Bobo-Dioulasso SNC was organized, while studies about safeguarding and promoting cultural tourism in the villages of Koumi, Gani, and Tiébélé, part of the ST-EP (Sustainable Tourism-Eliminating Poverty) program, have been performed.

As to the activities related to valorizing Burkina’s ecological heritage, the Pobé Mengao, Koro, Sindou camps, and the tourist relay of Gorom-Gorom were built, thus expanding the receptives park at the local level. Moreover, a study regarding the construction of the Bazoulé and Oursi ponds was done, and is part of the ST-EP program. The Arly camp project is being studied and will be implemented in collaboration with MECV.

In terms of support activities, the technical services in charge of tourism provided daily assistance and supervision to the sector’s actors, while ONTB helped insuring their participation to international tourism fairs and exhibitions. Moreover, other actions have been carried out, including hotel infrastructures census, developing professional competencies, and sensitizing hotel managers/owners on the regulatory framework. The third edition of the Ouagadougou International Tourism and Hotel Show (SITHO), November 30 to December 3, 2006, included a workshop on tourism financing, part of the activities promoting access to credit for tourism companies.

Finally, regarding the implementation of a tourism development policy, the reviving of relationships between Burkina Faso and the World Tourism Organization (WTO) made it possible to prepare a master plan for tourism development. In addition, a WTO regional conference has been organized on November 3, 2006, in Ouagadougou on the topic “tourism and the crafts industry for development”, with173 participants from 23 country.

In order to promote an off-shore economy, the Government has organized a symposium in 2006 on migrations, with substantial participation of the Burkinabé Diaspora, an important actor in the transfers of money and material goods, and contributor to national GDP. Moreover, the guidelines for the development of a national policy on migration were formalized. Within this framework, nine studies on various dimensions of migration as they relate to Burkina Faso were carried out and the results disseminated.

2.3.1. Access to education services by the poor

In year 2006, the government started preparing the education system reform. The first education reform draft document was made available in May 2006, and has been widely disseminated at the decentralized level. The reform process will include in particular the extension of basic education to the first cycle of secondary education, in accordance with the directive law (loi d’orientation) on education, which stipulates that basic education concerns children from age three to sixteen. The new directive law was submitted to the educational community. The government has also adopted a Medium Term Expenditure Framework -CDMT Education (2006-2008)- to better sector allocations with the PRSP priorities. The preparation of a specific MTEF for the Ministry of Secondary and Higher Education, and Scientific Research (MESSRS) is in progress. The consolidated sectoral MTEF for the whole sector including primary, secondary and tertiary education will be designed only after the adoption of the two sub-sectoral CDMTs.

With regard to artistic education and national book policy, it is worth noticing a renewed general interest for artistic awakening in primary and secondary schools, particularly for music, dance, theater and poetry.

Thus, during year 2006, in addition to the hundred CNAA apprentices, more than 20 young people have been trained in artistic professions, and more than 40 schools benefited from initiation sessions to these professions during school holidays. In addition, 78 people (students, professionals, etc) were trained in various artistic professions (music, dance), and 137 children, boys and girls, took part in artistic holidays aiming to contribute to children’s awakening and education.

Finally, in terms of book promotion, year 2006 saw the effective organization of the 6th edition of the Ouagadougou international book fair (FILO), from November 23 to 28, with 60 exhibitors in various book professions: editors, booksellers, documentalists, authors, librarians.

At the preschooling level, the preschooling rate, though low, is in constant evolution, from 1.34% in 2005 to 1.45% in 2006. As for the preschooling, non-formal structures called “Bisongo”, they are in constant demand by the communities. The number of “Bisongos” was 48 in 2005 and increased to 59 in 2006, and the number of provinces with “Bisongos”, from 9 to 14 for the same period. New texts regulating the opening and operation of these structures were finalized. They are:

• - decree concerning the creation, composition, attribution and operation of the commission granting authorizations to open day-care centers;

• - decree regulating day-care center;

• - decree concerning the creation, organization and operation of day-care centers, and preschooling education;

• - decree concerning the creation, organization and operation of a permanent committee on preschooling education;

• - decree concerning the creation, composition, attributions and operation of the committee granting authorizations to teach in and manage day-care centers and other purveyors of preschooling education.

With regard to basic education, the main purpose is to implement the axes presented in the Basic Education Ten-Year Development Plan (PDDEB). These axes concern the financing of basic education, improving access to formal education, improving the quality of formal education, improving access to nonformal education, improving the quality of nonformal education, and management capacity building.

In terms of basic education financing, the sector budget increased by 8.7%, primarily because the operational budget increased by 24% compared to 2005. It accounted for 15.03% of the total budget for a forecast of 14.5%. For improved effectiveness in management, a special account (CAST) was set up for basic education.

Primary education statistics from the 2006/2007 statistical directory, indicate an improvement in the reception capacities of the primary education system. In term of infrastructures, 2 481 new classes were built for a forecast of 2 062 classes and of 298 new schools were opened, which necessitated the recruitment of 2 328 teachers (for a forecast of 3 000) in 2006, indicating a deficit in terms of teachers with a higher student-to-teacher ratio of 54 in 2006 against 52 in 2005. In order to respect student-to- teacher ratio as envisioned, approximately 1,542.662 textbooks including 640 952 calculus textbooks and 901 710 reading textbooks were distributed.

These efforts allowed an increase in school enrolment in 2006 (from 1 390.571 children in 2005/2006 to 1 561.258 in 2006/2007, including 44.8% girls) with a CP1 enrolment increase of 12.3%. This CP1 enrolment increase resulted in 7.6 points increase in gross school admission ratio (TBA), which reaches 78.3%, against 70,7% in 2005, because of the strong variation in girls enrolment (TBA increase of +8.3 points compared to 2005).

The increase in school enrolment induced a Gross School Enrolment Ratio (TBS) of 66.6% in 2006/2007 against 60,7% in 2005/2006, representing a rise of 5.9 points, with however enormous disparities between regions (43.6% in the Sahel against 99.7% in the Center). Girls enrolment rate has reached 61.2% in 2006, against 55% in 2005.

In the same way, the rate of completion increased by 2.3 points, and reached 36.4% in 2006. Inequalities in terms of gender were slightly reduced, with an increase in gender parity index of 0.84.

In the priority provinces, TBS increased by 5.6 points to reach 52.3% in 2006, and the girls rate by 5.8 points over the same period, to reach 47.3%. As for TBA, it has increased by 5.1 points to reach 65.1% (60.8% for girls).

In general, these results were reached thanks to sensitizing efforts and various complementary measures carried out within the PDDEB (meeting the cost of parents contributions for girls, providing a minimum of school books (cartable minimum), school funds, food rations, grants for textbooks, etc). The educational system effectiveness improvement indicators (increase in promotion rates, and decrease in repeating classes and dropping out rates) will increase the current TBS level over the next years.

With regard to the finalization of PDDEB phase II, a work committee set up by decree N^o2006-0008/MEBA/CAB (July 21, 2006) prepared phase I assessment report and a framework note (note de cadrage) for the preparation of phase II, which were approved by the Council of Ministers of January 12, 2007. The first draft of phase II is being finalized.

With regard to post-primary education, the measures and actions taken have concerned the expansion of educational offer, improvements in teaching quality and effectiveness, and institutional capacities.

With regard to educational offer, expectations were not met in year 2005-2006. Indeed, four CEG for a forecast of fifteen were completed, sixteen classrooms for twenty forecasted were standardized, and seven schools were rehabilitated for a forecast of three. The weak performance recorded in the implementation of the CEG is explained by the fact that project Education V whose purpose was to implement ten CEG has not started. In addition to the government, efforts by communities and NGOs such as Plan Burkina, Ile de Paix, Bornefonden and ADRA-FILSY contributed to the implementation of 15 CEG, all of them opened their door at the start of school year 2006-2007, and at the same time to an increase of secondary education admission capacities. As for technical education, the project to build a technical training and further education center could not be completed because of a non-satisfactory implementation evaluation. However, a larger program for the development of technical education and vocational training whose financing agreement has been signed is about to be implemented. Lastly, concerning higher education, an amphitheatre with 500 seats, located in Bobo-Dioulasso, is completed, and will be opened for academic year 2006-2007. The government has also been able to open the University of Koudougou (UK), but the University of Ouahigouya could not be opened in 2006, and will be ready for next academic year 2007/2008, at the same time as the University of Fada Gourma.

In terms of improvement of the quality and effectiveness of post-primary education, the cost of laboratories and technical schools equipment was met, which contributed to the optimal functioning of the country’s publicly-owned secondary education schools.

On the institutional level, the halls of residence construction project in Ouagadougou, has not been satisfactory, as it should have started in 2006 but will only begin in 2007. The construction of the three MESSRS regional directions could not be completed, due to delayed start of the post-primary education project II. The education projects have experienced a difficult implementation because of the many delays in the execution of the Education Project IV/BAD. With regard to project Education V, the resources which were allocated to this project were not spent because implementation didn’t start according to the schedule of activities.

Harmonizing the “Education” sectoral approach with decentralization is being considered, as it will contribute to fostering ownership among all those involved in the implementation of the ten-year basic education development plan. Thus, ownership and accountability principles will have to be stressed.

With regard to secondary education, the reform process of the education system has significantly moved forward, thanks to the dialogue initiated between the government and the main partners. In the same way, a national meeting took place in January 2007 to deal with the education system legal framework. The draft of the document titled “reform of the Burkina Faso education system” as well as the new education direction law (loi d’orientation de l’éducation) are currently being reviewed by the education community. The system that is described in it extends basic education to secondary education first cycle.

Concerning the formulation of a national policy on teaching, technical and vocational training, the terms of reference and the framework note (note de cadrage) were prepared and adopted by the coordinating committee. The policy document will be available as of September 2007.

According to the 2006 QUIBB survey, education indicators continue to improve, particularly with regard to school access time and the literacy rate of students older than 15 years.

Overall, indicators of physical accessibility show improving trends between 2005 and 2006; with + 1.9 points for primary education and +4.05 points for secondary education, even if these efforts made must be sustained in urban areas for primary education (- 3 points) and in rural areas for secondary education(- 11.4 points).

Indeed, in 2006, 67.8% of households live less than 30 minutes from a primary school, against 65.9% in 2005. With regard to secondary schools, statistics show 25.2% and 21.2%, respectively for 2006 and 2005. Physical accessibility to primary schools improved in seven areas out of thirteen. Improvements are more perceptible in 2006 in the following regions: Boucle du Mouhoun (+2.8 points), Sahel (+0.99 point), Center North (+11.39 points), Plateau Central (+1.72 points), North (+17.41 points), Center East (+10.93 points), and Cascades (+7.86 points).

The literacy rate has reached 28.3% (36.7% for men and 21% for women) in 2006, that is an increase of 4.7 points compared to year 2005. The rate has improved by 4.7 points in rural areas and 3.7 in urban areas, reaching respectively 19.2% and 62.9% in 2006. Two regions, Center North and Center South recorded a decrease in literacy rate (respectively 16,6% and 15.9% in 2006, compared to 18.7% and 16% in 2005). Progress is more important in the East (+10.9 points) and South West regions (+6.5 points), which recorded literacy rates of 28.5% and 18.1% respectively.

2.3.2. Access to health and nutrition services by the poor - Fight against HIV/AIDS

The implementation of the programmed activities in 2006 was done in accordance with the eight PNDS intermediate objectives: (I) to increase national medical cover; (II) to improve the quality and use of health services; (III) to support the fight against transmissible and nontransmissible diseases; (iv) to reduce the transmission of the HIV; (v) to develop human resources in health; (VI) to improve the public’s financial access to health services; (vii) to increase health sector financing; and (viii) to strengthen the institutional capacities of the Ministry of Health.

With regard to increasing national medical cover in 2006, five complete CSPS were built and 20 others were equipped in positive drillings. As to the standardization of incomplete infrastructures, 20 dispensaries, 13 maternities, 23 MEG storehouses, 40 houses and 21 drillings were built. Six centers for young people at Ziniaré, Gaoua, Pô, Boulsa, Tenkodogo and Batié were built, and numerous infrastructures were rehabilitated or strengthened. To these achievements in terms of infrastructures were added capacity building in terms of human resources, with the training of 19 doctors in essential surgery, and 17 doctors in district management. In terms of supervision, twenty doctors were supervised in essential surgery and 16 in district management.

The results of the 2006 QUIBB survey show that the indicators of physical accessibility have generally deteriorated in 2006, compared to 2005. Thus, 38% of households are located less than half an hour from the nearest health center, against 39.5% in 2003. The situation has deteriorated more in urban areas (- 3,5 points) than in rural settings (- 1 point), at 29.6% and 69.3% respectively. In seven areas out of the thirteen, accessibility to health centers has deteriorated compared to 2005, and more in the Cascades (- 13.8 points), the Center South (- 13.6 points) and the Hauts bassins (13.2 points). The best performance was recorded in the North where indicators increased by 11.3 points to reach 49% in 2006

The use of health services has also improved with the reduction of the childbirth at home practice (-3.1 points) compared to 2005, in rural (- 3,3 points), and urban areas (- 3.1 points). Only 41.8% childbirth took place at home in 2006 against 44.9% in 2005. The rate of childbirth at home remains very high in the Sahel (77.6%), the South West (68.7%) and Center West (53.2%) areas. In the Hauts bassins, East, Center West and Cascades regions, indicators deteriorated respectively by 9.5 points, 15.7 points, 5.8 points and 5 points.

With regard to the efforts to improve health services quality, the reference centers were strengthened, the structures supplied in drugs and consumables, and support for emergency care in hospitals continues. In addition, hospital pharmacy regulatory texts and the dissemination of the 2006 national drugs (authorized in Burkina Faso) nomenclature, are being finalized.

In order for urban medical districts and those in the CHR to become more operational, administrative texts and directives have been formulated. Moreover, a minimum package of community-based integrated activities has been defined.

The opening of the new “formations sanitaires” (health formations) requires more staff since CSPSs do not always respect the minimum standards in terms of staff. CSPSs standardization rate is 77.05% in 2005 against 75.85% in 2004 and 76.80% in 2003 (the 2006 rate is not available yet). The break rate for the 45 essential products for CAMEG is 0.74% in 2006 against 2.96% in 2005 and 1.63% in 2004. This good performance is due to an improved estimate for stock orders by CAMEG.

With regard to strengthening the fight against diseases, the various priority programs have been satisfactorily implemented. Regarding the PEV (Programme élargi de vaccination) immunization program, vaccine coverage has shown considerable progress for all the antigens in the past three years. Since 2004, the BCG vaccine rate has always been higher than 100%. The rate for the measles vaccine (VAR) increased, from 84% in 2005 to 88% in 2006, an increase of 4 points. As for the anti amaril vaccine (VAA), the coverage increased by 12 points, from 84.09% in 2005 to 88% in 2006. The achievements of the anti tetanus vaccine (VAT2) and the polio oral vaccine (VPO3) are also satisfactory. In year 2006, a new vaccine combined to DTC has been introduced, and is called DTC-Hep-Hb (pentavalent3); with a rate, for the first year it is used, of 95% for an objective of 85%.

In relation to the fight against tuberculosis, the combined efforts of the various partners made it possible to obtain good results in 2006, with a 25.26% rate of detection against 21.61% in 2005, a 63.8% rate of cure against 60.6% in 2005, and a rate of success in treatment of 69.7% against 67.1% in 2005. For dracunculosis or “Guinea Worm”, five cases were detected in 2006, that is an 83% decrease compared to 2005, thanks in particular to the efforts by the population and health structures for program ownership.

With regard to the fight against leprosy and malaria, many financial difficulties prevented the implementation of the activities (40.71% rate of implementation for the activities related to leprosy and 23.5% to malaria). However, two major activities were carried out concerning malaria: the supply of some districts and CHR with impregnated mosquito nets (352 100 nets) and 3 500.000 sulfadoxine-pyrimethamine tablets were made available in all the districts for malaria prevention among pregnant women.

In terms of epidemiologic monitoring, the regular follow-up of the diseases with epidemic potential trends allowed at the time of the implementation of the 2006 action plan, to detect and fight against meningitis epidemics in 34 health districts in 11 health regions. On the whole, regarding diseases with epidemic potential, a reduction of the lethality rate has been observed. Meningitis recorded 8.5% in 2006 against 21% in 2005; measles 0.57% against 2%. As for yellow fever, it did cause any death in 2006.

With regard to reproductive health, programs and strategies have been developed, particularly the 2006-2010 PTME program, the youth health intervention plan, the action plan to fight tobacco use among young people, the roadmap for the reduction of maternal and neonatal mortality, the subsidy strategy for childbirth, SONU, and the guide and management tools (SIGL) for SR products. The result of the efforts to ensure a good geographic coverage of the prevention of mother-to-child HIV transmission (PTME) national program, is that 45 districts were covered. As to the strategy for medical care services in relation to children diseases (PCIME), 34 districts on 55 were covered. The effective implementation of the subsidy strategy for childbirth and the SOU; the Sore-Dioulasso, Fada Gourma CHU/CHR capacity building efforts to treat obstetrical fistula, and the existence of a national and regional pool of trainers (in PF/SIGL, PTME, Teenagers Health, PCIME), are all achievements worth mentioning.

With regard to the fight against HIV-AIDS in 2006, the government revised the first strategic framework for the fight against HIV-AIDS and STI (2001-2005). Thus, year 2006 was a transition period primarily devoted to advocacy actions for resource mobilization to finance the 2006-2010 CSLS, as well as to the improvement of the institutional and organizational framework for the fight against HIV-AIDS and STI, to review reference documents, and to implement the national communication strategy.

Most measures and actions envisaged in 2006 were taken into account in the ongoing process, and considered as priority components in the 2006-2010 CSLS implementation.

The general assessment shows satisfactory results, given that the recommendations of the CNLS-IST fifth session were taken into account, to a certain extent.

i) With regard to improving HIV/AIDS and STI transmission prevention and the promotion of voluntary tracking, the measures and actions taken made it possible to extend PTME to 45 districts. Thus, 98 358 women have received advice with a rate of adhesion to tracking that increased from 47.8% in 2005 to 49.2% in 2006. Only 4.7% tested women partners agreed to take a tracking test, and their number seems to drop compared to 2005 (5.13%). Among HIV positive women having given birth, 81% mother-child couples received a complete ARV treatment to reduce HIV transmission from mother to child, against 70,73% in 2005.

With regard to the voluntary tracking council (CDV) within the health and community structures, the promotion of CDV was done through CDV sites established as independent and autonomous sites, integrated in the health formations (formations sanitaires), or the mobile sites. The total number of CDV increased from 51 in 2004 to 93 in 2005, and to 116 in 2006, spread in 37 health districts, representing a coverage rate of 67.23%. Approximately 83 centers are integrated in the health formations against 33 autonomous tracking centers managed by associations, which represents 28% of total sites. The availability of reagents and consumables was assured in terms of quantity and blood transfusion standards. Thus, 100% of transfusion bags were tested seronegative, for HIV, syphilis, hepatitis B and C, and 15 313 pockets were collected in 2006, more than the expected 15 000.

With regard to prevention, 20 699.976 male condoms and 73 692 female condoms were sold, of which 3% and 5%, respectively, were distributed at the national level. A pool of trainers in infections prevention in the work environment was set up. Training of trainers on AELB prevention was carried out; 3 million people were reached by sensitizing meetings, and at least 5 000 villages and 8 500 people were trained. Programs targeting vulnerable and/or specific groups reached more than 650 000 people, 273 146 young people from the expected 105 000, and 327 445 women from the expected 28 000, as well as 53 406 handicapped from the expected 4 000.

With regard to strengthening training on the fight against HIV/AIDS and STI in the education sector and vocational training schools, programs have been developed within the framework of MAGPIE. These programs will be used for the two ministries in charge of education (MEBA and MESSRS) and the Ministry for Health.

II) With regard to providing medical care to PVVIH, (People living with HIV/AIDS) the number of medical structures providing ARV treatments increased by about 40.9% in comparison to year 2005, to reach 62% in 2006. There were 13 616 PVVIH in the active file at the end of 2005 with 8136 patients under ARV treatment; that number increased to 30 113 with 12 842 patients under ARV at the end of December 2006, including 534 children (82% ratio). People living with HIV and under ARV treatment account for 42.6% of the total active file. The World Fund and TAP ensure the treatment of 41.69% of patients under ARV. The number of laboratories with a CD4 meter increased from 5 in 2004 to 22 in 2006, an increase of 77,27%.

Finally, year 2006 recorded a strong involvement at the community and association levels; which contributed to strengthening the support brought to the PVVIH in the form of income generating activities (AGR), school fees, supply for OEV, supply of milk and food, etc. In particular, the number of people having been taken care of is rather remarkable:

• - 132 people by the Ministry of Health;

• - 20.256 PVVIH treated by the community sector;

• - more than 45 000 various community support for PVVIH.

In spite of these remarkable efforts, the PVVIH context is characterized by limited resources in time and space. Indeed, most initiatives will end in 2007, which does not allow to ensure a all PVVIH coverage in need of treatment. Thus, the government will have to pursue advocacy efforts with technical and financial partners to ensure financing the treatment over the long term.

III) With regard to strengthening partnerships, mobilizing resources and coordinating their allocation, and expanding access to health care, other partners are expected to join in 2007, such as the Clinton Foundation and UNITAID with 1500 new pediatric treatments, AXIOS for HIV1 and HIV2 tests, and the World Bank with its Support Program to the Health Sector and the Fight against HIV/AIDS.

Multisectoral coordination required, among others, the organization of a workshop on the issue of integrated CDV, the homologation of the reagents used for tracking AIDS in Burkina Faso, the finalization of the research protocol on the harmonization of medical PEC by ARV, the organization of two discussion meetings with traditional medicine practitioners in Ouagadougou and Sore-Dioulasso, the promulgation on January 23, 2006 (decree n^o2006-011 /PRES) of the December 21, 2005 Law on reproductive health in Burkina Faso. This law defines among others the rights and duties with regard to reproductive safety.

Efforts were carried out to strengthen the organizational and institutional capacities of the structures involved in the fight against HIV/AIDS and STI, in terms of equipment, materials and other means of operation. The setting up of the new coordination mechanism required the development of new sectoral structures, the strengthening of operational capacities, the training in planning, monitoring/evaluation in the sectors of intervention, the setting up of several frameworks for dialogue with and orientation of the main actors, the implementation of technical support missions with the sectoral coordination structures, the development of provincial action plans in the 45 provinces by the CPLS, and the setting up of two SP/CNLS-IST regional branches.

The multisectoral coordination of the actors and partners in the fight against HIV/AIDS and STI was strengthened through the ongoing creation of new structures, the organization of brainstorming meetings on specific subjects, the setting up of the national monitoring/evaluation system, and the coordination of the different projects and programs dealing with the fight against HIV/AIDS and STI on various levels.

Advocacy actions carried out at the national and international levels bore fruit, with 22.9 billion FCFA mobilized in 2006 against 21.6 billion FCFA in 2005 (15%). The estimated total budget for PNM 2006 implementation was mobilized entirely. Cumulated expenditures amount to 20.3 billion FCFA in 2006, against 17.8 billion FCFA in 2005. The absorption rate is 88.5% in 2006 against 82.3% in 2005. The number of partners involved has increased with the involvement of ten international NGOs, and bilateral partners. Thus, on 68 key partners, only 6 don’t carry out specific interventions in relation to the fight against HIV/AIDS and STI.

iv) The continuation of epidemic monitoring, as well as monitoring and evaluation and research promotion resulted in: (I) sentinel notification of cases in the three national hospitals, the nine CHR, and the Ouagadougou CTA, (II) training of 40 agents in 2006 on AIDS cases sentinel notification, (III) the supply of sentinel notification cards for AIDS cases to 3 CHU, 9 CHR, and the Ouagadougou CTA. The monitoring of the epidemic was provided in 13 sentinel sites, including 43 health formations (formations sanitaires), since October 2005, which became a routine activity for these structures, using the second generation monitoring protocol. In the course of year 2006, supervision of these activities were carried out by CMLS/Santé in collaboration with SP/CNLS-IST and the results of the serosurveillance (of 2006) will be made available in the beginning of year 2007.

With regard to human resources development in health, the government budget allowed to recruit 1038 agents (all categories) in 2006 against 788 and 927 in 2005 and 2004 respectively. These agents are firstly affected in the health formations (formations sanitaires) of first level. On the 1038 agents for year 2006, 727 of them were recruited on direct contest and 311 on ‘new measures’.

In terms of the population’s financial access to health services, in addition to the rights and advantages acquired (free preventive care for pregnant women and children from 0 to 5 years old, mechanisms to share disease risks, and subsidies for childbirth and obstetrics emergency care), 6 DRS, 16 districts, DGHSP and 15 care private structures were controlled by the Health Services General Inspection (IGSS) to ensure that related measures are properly applied.

With regard to increasing the health sector financing, efforts were made for a better control of the sector financing needs through the development of a health financing policy and the updating of the 2006-2010 and 2007-2010 health CDMT. In 2006, budget appropriations within the ministry of health reached 12.3% against a forecast of 11%. Moreover, the sector continues to benefit from the resources resulting from debt relief.

With regard to institutional capacity building, in 2006, the Ministry of Health prepared a 2006-2010 PNDS implementation plan, as well as several planning tools. The document regarding the requirements for NGO/Associations to intervene in the health sector was validated. Moreover, human and institutional capacity building activities of several “directions” are carried on (EPD, DAF, DRH and DGHSP).

Children nutrition indicators according to the 2006 QUIBB survey show a favorable evolution with regard to growth retardation (-15.4 points) and ponderal insufficiency (- 14.4 points), and an unfavorable evolution for wasting (+0.9 point).

Indicators relating to growth retardation indicate that 35.9% of children (against 51,3% in 2005) are too small for their age. Their evolution is favorable in all regions except in the Center North and the Center, where the indicator has degraded compared to 2005, from 1.8 and 2.5 points respectively, to reach 39.1% and 30.2% in 2006.

Indicators relating to ponderal insufficiency are in the same trend as those of. In 2006, 31.7% of children (against 46.1% in 2005) were found too thin for their age. Improvement of ponderal insufficiency is found in all regions except in the East (46.8% against 42.3% in 2005) and in Cascades (46.3% against 30% in 2005).

Indicators relating to wasting (children ratio weight/size), an improvement in urban settings (-0.9 point) is noticeable against a deterioration in rural areas +1.8 points). Only four regions record an improvement of indicators: The Sahel (- 23.85 points), Center North (- 12.46 points), North (- 8.23 points) and Center South (- 0.97 point)

2.3.3. Access to drinking water and sanitation by the poor

With regard to drinking water, the inventory of AEPA achievements carried out in 2005 made it possible to build a base year reference frame for all the stakeholders’ practices and interventions, which in turn allowed enacting standards, criteria, and indicators to support strategic planning, design, monitoring and evaluation. The inventory enumerated approximately 48 000 modern water points and 472 AEPS. It also established new access rates for rural and urban areas, and defined the objectives to be reached by PN-AEPA up to year 2015. These results made it possible to develop and adopt the AEPA (PN-AEPA) national program, which, today, is the instrument through which Burkina Faso seeks to reach the Millennium Development Goals (MDG) in the AEPA sector. The investment program development process for 2015 came to completion with its adoption by the Council of Ministers on December, 18, 2006.

The program management tools are the following: an institutional arrangement based on the existing structures and that strengthens them, in order to ensure, on the one hand, program ownership by government agencies within the framework of their governing powers (missions régaliennes), and, on the other hand, the assertion of the local authorities, private sector and civil society roles. An implementation manual, as well as monitoring and evaluation tools are being developed. The principle of a common basket fund (panier commun) within the framework of the program budget approach is being considered by the government.

In the course of year 2006, approximately 801 new water wells were drilled, 38 rehabilitated, and 33 AEPS developed, through various projects and programs. These achievements remain however well below initial forecasts, with implementation rates of 72.4%, 47.2%, and 46.9%, respectively for drillings, rehabilitations, and AEPS. The rate of access to drinking water has only slightly improved to reach 75% in urban areas and 62% in rural settings in 2006, against respectively 74% and 60% in 2005, according to the inventory carried out that year.

Moreover, the beneficiaries involvement in the infrastructures implementation and management process through their management committee, materialized in the creation of 801 CPEs this year. Moreover, in 2006, the national AEPA program was completed. It includes four components: (I) supply to urban areas; (II) supply to rural areas; (III) sanitation in urban areas; (iv) sanitation in rural areas. In addition, the policy document regarding the sanitation component is being validated. For both the national AEPA program and the policy document, a framework for dialogue with NGOs and associations involved in the AEPA (CCEPA) field, allowed 24 NGOs and associations to participate actively in the development process. It should also be mentioned that private operators were involved in the management of AEP services in the Hauts-Bassins, Center North, and Plateau Central.

With regard to drinking water, indicators show different evolutions between 2005 and 2006, according to the 2006 QUIBB survey. Indeed, 74.3% of households use a source of drinking water against 74% in 2005. If the proportion of households using a source of drinking water improved in urban settings (91.8% against 89.8% in 2005), the situation seems to have stabilized in rural areas, 69.7% in 2005 and 2006. At the regional level, six regions recorded an unfavorable evolution between 2005 and 2006. They are: Hauts bassins (-2.04 points), Boucle du Mouhoun (-15 points), East (region) (-18.1 points), Center West (-1.9 points), Centre East (-4.7 points), and Cascades (-5.5 points). A particular attention should be given to the Boucle du Mouhoun and the Hauts bassins regions, where 60% and 40% of the households still don’t have access to a source of drinking water in 2006, and use primarily water from ordinary wells. This situation is serious all the more because these two regions are the main cotton production areas, and are the most populated in the country with the Center region. Another specific region is the South West where 13.1% of households use water from dams and rivers for drinking water.

Similarly, access indicators have deteriorated overall with only 88% of households spending less than half an hour to reach the nearest water source, against 88.8% in 2005. The deterioration of access indicators is more important in the East (- 10.5 points) and Center West (- 5.5 points) regions, with access rates respectively of 82.3% and 77%%, against 92.8% and 82.5% in 2005.

With regard to sanitation, a national sanitation policy and strategy document is being finalized (technical committee of February 14, 2007). A draft action plan is also available. The action plans concerning the other actors (the Ministry of the Environment and Human Environment, and the communes) will be coordinated by the ministry in charge of the environment following the adoption of the global strategy. However, the major constraints facing the sector remain the lack of human resources, including for the companies involved.

According to the results of the QUIBB 2006 survey, more than half households (56.6%) use "nature’s bathroom". Although decreasing in relation to 2005 (63.5%), this indicator remains high, particularly in rural areas (70.4% in 2006). However it has been decreasing more in rural areas (- 8 points) than in urban settings (- 2 points).

At the regional level, the proportion of households using "nature’s bathroom" has been decreasing in general, except for the East region with 83.7% households in 2006 against 72.2% in 2005, a reduction of 11.5 points

2.3.4 Improving living conditions for the poor : Housing and the fight against pollution

With regard to housing and urbanization, measures and actions taken were related to planning, regulation, development, housing, cities construction and modernization.

In the area of urban planning and regulation, the planning and construction code was adopted by the National Assembly on May 18, 2006, and promulgated on June 28, 2006, by the President of Burkina Faso, thus opening a new era in terms of efficient urban management in our country. Four new urban planning master development plans (SDAU) are being developed in Dano, Garango, Gorom-Gorom, and Boussé.

With regard to urban development, the main activities in 2006 have concerned:

• - the creation of allotment sites in eight localities (Titao, Absouya, Sangha, Nagréongo, Dialgaye, Safané, Zégnèdougou, Lankoué) with 5 584 plots for a total cost of 129.026.570 FCFA;

• - the development of a relay (relais/cité) in Basséko, in the Ouagadougou commune, with 2000 fully serviced plots for a cost of about 1.5 billion FCFA

• - the development of fully serviced plots (parcelles viabilisées) by SONATUR, with 1 000 plots in Boussé and Sore-Dioulasso, 1 500 in Ouahigouya, 2 000 in Saaba, 2000 in Ouaga, 750 in Garango, for a total cost of 4.2 billion FCFA;

• - the development of building plots for the improvement of the populations’ living conditions.

Sanitation efforts with regard to plots previously prepared, allowed the resurfacing of 32 Km of roads in inhabited areas (mainly in Ouagadougou), at a cost of approximately 150,000.000 FCFA.

With regard to housing, the financing tools for a vigorous housing policy were strengthened and consolidated through the creation of the housing bank -Banque de l’habitat du Burkina Faso (BHBF) in July 2006. The Cities Management Center (CEGECI) started a low cost dwelling construction program, but is mainly involved in social housing development, with a test operation planned in the Ouagadougou commune (sector 19), on a site with 144 dwelling plots. These actions are accompanied by a construction and animation program of specialized housing centers, whose animation component focuses on remedial work and training of out-of-school youth from age 12 to 16.

Three centers were built in 2006, in Kamboinsé, Zagtouli and Tanghin-Dassouri, and 140 learners in structural steel, carpentry, and building construction were involved in the works. Two other centers are envisaged for 2007 in the Sore-Dioulasso region.

With regard to our cities construction and modernization, modernization efforts materialized by the development of large community facilities, undeniably improving the quality of our large cities urban landscape. These efforts include:

• - the construction of a National Heroes Memorial, with provisional acceptance of works scheduled for July 2007. This remarkable monument will be enhanced by the development of its immediate surroundings, called Place de l’Afrique, whose architectural plan has already been developed, and whose construction should be completed in the course of year 2007;

• - the construction of the Martyrs’ Memorial (40% completed);

• - the construction of the Ouaga 2000 Sports Hall whose carcassing work is entirely completed.

With regard to housing, the indicators provided by the QUIBB 2006 survey show a general improvement in the quality of household’s housing in all regions. However, a deterioration of housing quality mainly in the Center and Hauts Bassins regions is evident. This deterioration concerns: roofing (- 2.7 points and -2.2 points respectively), walls (- 9.5 points and -4.2 points) and lighting (- 1.5 points and +2.2 points). This degradation could be explained by high urbanization in these areas, with the two main urban centers of the country.

With regard to the fight against pollution and improvement of the living environment, the main activities implemented in 2006 included:

• - the commission of two waste burial facilities in Ouagadougou and Bobo-Dioulasso;

• - the fight against plastic hazard with the construction of waste storage facilities in the Bobo-Dioulasso and Ouagadougou districts, and the regions principal towns ;

• - the launch of the Ouagadougou air sampling and analysis campaign, part of the « initiative on air quality in sub-Saharan Africa »;

• - the training of regional forestry departments agents to familiarize them with qualifying environmental themes;

• - the development of an action plan for the reduction of substances that deplete the ozone layer, and the effective implementation of an environmental inspection for educational purposes by sworn inspectors in the two Ouagadougou gas stations, in order for them to get acquainted with methods and inspection tools used in the case of dangerous and nuisance-causing establishments (EDII);

• - the promotion of eco-citizenship in schools and through information, education and communication activities targeting the general population, and through the development and dissemination of messages via the media..

In order to mitigate negative impacts of human activity on nature, the government made environmental evaluations one of its main concerns through the following activities, undertaken in 2006:

• - the development of 8 technical guides for environmental evaluation, and the definition of guidelines for the development of environmental safeguard policies for Burkina Faso;

• - the analysis of the impacts on the environment of projects and programs, and the follow-up of environmental and social management plans (PGES);

• - the adoption of a decree concerning the creation of a technical committee on environmental evaluations (COTEVE) and the launch of the committee’s activities.

With regard to legal, regulatory and institutional aspects, the actions taken to improve the living environment are the following :

• - adoption by the government of a National Environment Policy (PNE), and validation of the Environmental Plan for Sustainable Development (PEDD);

• - adoption of the decree n^o2006-232/PRES/PM/MECV/MFB/MJ/MATD of May 30, 2006, defining the infringements of the environment code in Burkina Faso;

• - adoption of the decree n^o2006-347/PRES/PM/MECV/MCPEA/MATD/MCE/MFB of July 17, 2006, classifying the dangerous, unsanitary and nuisance-causing establishments in Burkina Faso;

• - adoption of the decree N^o 2006-222/PRES/PM//MFB/MECV/MATD/MCPEA/MS of May 19, 2006, fixing the rates of the single tax and the annual fee perceived on scheduled establishments;

• - adoption of the law n^o 005-2006/AN, of March 17, 2006, regarding safety policy for biotechnology in Burkina Faso

Other major challenges with regard to sanitation and the living environment are:

• - reduction of pollution by ozone depleting chemical substances, the Persistent Organic Pollutants (POPs), dangerous chemicals, waste oils, waste water, and plastic waste;

• - environmental inspection of dangerous, unsanitary and nuisance-causing establishments (EDII), and the promotion of regulations to reduce industrial pollution;

• - reforestation and the fight against industrial pollution particularly in the gold bearing sites of Bagassi (Basle), Dano V3 (Ioba), Fandiora III (Comoé); and

• - promotion of landscape design.

The growing adhesion of Burkinabé citizens to the concept of eco-citizenship will significantly help change people’s behaviors, particularly households and youth with regard to waste management, as well as to improve hygiene in urban areas, schools, and work places.

2.3.4. Social protection for the poor

The approach with regard to social protection aims at reducing the obstacles faced by underprivileged and/or vulnerable groups to effectively participate in the development process, and is resolutely “in rupture” with the traditional notion of the welfare state, by stressing promotional and participatory social action. Moreover, social protection also refers to the improvement of working conditions.

With regard to the promotion and protection of children and teenagers, educational counseling and monitoring of children in particularly difficult circumstances has been pursued. Approximately 1000 children and young people in difficulty are regularly monitored through the outreach education program Action éducative en milieu ouvert (AEMO) in the ten main cities of the country. Within this program, training in modern and traditional basket making, mechanics, and carpentry was provided for 101 street children, while seventy-seven children were placed with craftsmen or engaged in income generating activities, and eighty-one other children re-inserted into their family. The Center for Specialized Education and Training (CESF) of Gampèla and the Maison de l’enfance André Dupont d’Orodara (MEADO) trained 150 pupils in various courses throughout the year with a success rate of 100% at the CEPE exam for the 38 pupils who took it. In these two centers, 300 children were trained in masonry, carpentry, seam and weld, while 68 others joined the labor market with an equipment kit for each one of them according to his/her specialty, acquired for a total cost of 150 million FCFA, thanks to PPTE resources

Safeguarding children from danger was ensured with the construction of a reception centre for abandoned children in Ouagadougou, the validation of a national program designed to look after the OEVs, the drafting of legal texts on orphanages and host families, the setting up of a central authority in charge of international adoptions, and the identification of at least 80 host families in the various provinces. The strategies adopted in favor of orphans and other vulnerable children (OEV) resulted in the placement of 267 children in host families or institutions, with government support in the amount of 35 million FCFA for food, health care, and clothing. Moreover, it should be pointed out the sponsorship of 50 children and the adoption of 71 others in accordance to the Hague International Convention. In addition, approximately 149 requests for international adoption have been processed.

The actions undertaken within the framework of the fight against internal and trans-border traffic in children, included, in 2006, the dissemination of legal texts on traffic in children, the support for the implementation of the integrated communication plan (PIC) in 14 provinces, and the holding in Ouagadougou of the third sub-regional meeting devoted to the fight against this traffic. In 2006, nine hundred and twenty seven (927) children victims of the aforementioned traffic were intercepted and turned over to their family, against 844 children in 2005.

With regard to taking care of “social cases”, eight hundred and ninety nine (899) visits to schools and 1 541 to residences were conducted. Thus, 4 021 social cases have been recorded and taken care of. Ten thousand (10 000) vulnerable orphans and other children (OEV) benefited from the payment of their school fees, while six thousand (6 000) OEV were provided with school supplies.

In addition, children parliaments were instigated and 201 work meetings with provincial children parliaments were organized.

Finally, a permanent system for data collection on children is under development, in order to gather all experiences gained in the field, and to initiate synergies.

With regard to national solidarity promotion, the third solidarity month was officially launched in Kaya on January 5, 2007. Among the main activities carried out, pupils and teachers of eighty (80) Koranic schools were provided with food and financial support in the amount of 4 million FCFA. Support was also given to the handicapped with the distribution of fifty-nine (59) tricycles and four hundred and thirty two (432) “voiturettes”, and seven hundred (700) blood bags were collected for the national blood transfusion centre (Centre National de Transfusion Sanguine) was also carried out. Moreover, two hundred and three (203) bicycles were given to orphan pupils and other vulnerable children. In addition, food support was provided to children through the NGOs Compassion, and Arche de Nongremasson, as well as to the National council for the elderly (Conseil national des personnes âgées), and to other organizations supporting people with difficulties, with the supply of thirty four (34) tons of food.

With regard to the promotion and protection of specific groups, the assistance offered to vulnerable groups allowed to subsidize seven (7) micro-projects for deprived people, while spot assistance was provided to eighty seven (87) disadvantaged people. Additional assistance was given for the acquisition of old clothing, and basic pharmaceutical products. Follow-up activities were carried out with associations that benefited from subsidies. Ten (10) orthopedic prostheses, and thirty (30) tricycles “voiturettes” were provided to handicapped people. In addition, specific groups and people in distress received support in equipment and food for a value of 19,832.610 FCFA. Three hundred (300) handicapped people, among them one hundred (100) students, were equipped with mobility equipment (wheel chairs, crutches, etc). The International Day for the Elderly was organized in October, as well as the International Day for the Eradication of Poverty. Furthermore, a study on social exclusion was carried out in order to better understand this phenomenon and how it manifests itself.

With regard to the management of emergency assistance, the monitoring/evaluation of CONASUR interventions was carried out in five provinces, and nine provinces out of twenty-five were supervised as part of the termination of the emergency food aid operation (2004-2005). Fifteen (15) repatriated people were accommodated, including six (6) from Cameroon, eight (8) from Guinea Bissau and one (1) from Italy. Forty eight thousand six hundred and sixty seventeen (48 677) victims of humanitarian crises and catastrophes were recorded, in particular during the rainy season. Eleven thousand five hundred and seventy (11 570) victims were provided food and survival equipment for a cost of approximately 600 million FCFA.

In terms of social protection of workers, the main activities performed in 2006 have focused on the implementation of the health and work safety policy, and on the national social protection policy.

The national safety and health at work policy document was reviewed to take into account institutional changes. This included more precisely the development of draft laws about the composition and functioning of the national technical advisory committee for hygiene and safety, the development of draft laws regarding the safety and health at work structures within companies and corporations, and a study on the new legal framework on child labor.

With the aim of strengthening social security institutional and legal frameworks, three major texts were adopted by the National Assembly:

• - law N^o015-2006/AN of May 11, 2006, regarding the social security scheme applicable to salaried workers;

• - law N^o016-2006/AN of May 16, 2006, regarding the setting up of the category social welfare public institutions (EPPS);

• - the law regarding occupational hazard prevention and reparation applicable to government employees, military personnel and magistrates.

The adoption of these legal texts made it possible to widen social security coverage to other population groups, improve the quality of the services provided, and strengthen social partners participation in the management of social welfare organizations. Moreover, two implementation laws fixing the amount of the family and prenatal allowances were adopted by an advisory commission. The reform of the social security system made it also possible to improve social security benefits and to answer working people concerns. Thus, the annual installment of the old-age pension provided by the Social Security Fund increased from 1.33% to 2% of the wages, the amount of the family allowance was multiplied by two (2), increasing from 1000 to 2000 FCFA per child, and the prenatal allowances amount from 750 FCFA to 1 000 FCFA per month. In addition to these important measures benefiting workers, which are the outcomes of negotiations between the government and the private sector, a new social security code has been adopted.

Finally, the social protection policy was finalized, and is in the process of being adopted by the Council of Ministers.

2.3.5. Promotion of women

Year 2006 was marked by the adoption of the action plan for the 2006-2010 national policy for the promotion of women, organized around 5 objectives: (I) improvement of the social and legal status of women, (II) promotion of the access of women to decision-making spheres., (III) promotion of women education, and strengthening women capacities and expertise, (iv) reducing poverty among women, and (v) strengthening the framework and institutional mechanisms for the promotion of women.

i) With regard to improving women social and legal status, the activities carried out in 2006 included sensitizing 7000 people on the respect of basic women and girls rights, on the Personal and Family Code (CPF), and on violence against women. More than 1500 women from the 13 DRPF were informed of their basic rights.

II) As part of the promotion of women access to decision-making spheres, Burkina Faso celebrated the Pan African Women’s Day in the 13 regional directorates for the promotion of women (DRPF), whose theme was “obstacles and challenges to women access to decision-making spheres”. Moreover, 60 policymakers (for a forecast of 250) were trained in gender and development, and 300 women (for a forecast of 200) on the notion of citizenship, in the 13 regions. The listing of women executives is under development and should contribute to better valorize Burkinabé female expertise.

III) Promotion of women education, and strengthening women capacities and expertise included literacy training (basic complementary training, and initial literacy training of 2164 women for a forecast of 900). In addition, approximately 510 officers/mangers in charge of women associations and members of the board of the maisons de la femme (women centers) were trained on the various axes and orientations of the national policy for the promotion of women. Moreover, 14 women members of female associations were retrained, and 24 others trained (for a forecast of 130) in village hydraulic drilling equipment management and maintenance. In addition, 1647 women belonging to shea butter producer groups were trained in good quality shea butter production technique, by the National Shea Project (PNK). With regard to the maisons de la femme (women centers), training and production units are now functional and a guide on how to operate these centers was validated by the ministry this year.

iv) The women poverty reduction program provided them with appropriate production technologies. Thus, 110 grain mills, 80 motor-driven pumps, 15 soap-making units, 100 rolls of mesh, 20 zigzag sewing machines, 5 embroidery sewing machines, 100 donkey carts, 20 weaving machines and 3 positive drills (forages positives) were offered to women. Moreover, 7 million FCFA (against 3 million in 2005) were granted to women by the PNK. Furthermore, 4 women promotion centers were built in the localities of Tangaye, Zogoré, Youba and Poa. Finally, sensitizing meetings were held regarding the commemoration of health and forestation days for women associations, in order to improve women participation in environmental management as well as quality of life in the 13 regions.

v) In order to strengthen the institutional framework and mechanisms for women promotion, a 2006-2010 action plan for women promotion has been developed and is being disseminated in the 13 regions. The monitoring and evaluation system for this action plan is being finalized.

2.4.1. Reducing the vulnerability of agricultural activity

With regard to crop year 2006-2007, measures have been taken to reduce the vulnerability of agricultural activity. Such as:

• construction of 601 280 manure ditches (implementation rate of 100,2%);

• recuperation of 4 260 ha of degraded soil (through plowing and fixing plants) on 49 sites that became suitable to farming;

• erection of stony cordons on 270.75 ha;

• fixing sand dune on 135 ha;

• protection of 163 km long banks (367 ha), through the growth of plants;

• recuperation of 61% of degraded soil.

With regard to rural hydraulics, the implementation of the Samendéni Valley Integrated Development Program (PDIS) resulted in the construction of a storage dam, a hydroelectric power station, and a 53 km long irrigation inlet rill. The on-going construction of the Andékanda dam (since December 2006), and the Pensa and Liptougou dams envisaged in the Water Valorization Project in the North (PVEN) will also contribute to reduce agricultural vulnerability.

On an institutional level, the review of the implementation texts and the dissemination of the law on plant seeds are ongoing activities. The locust infestation vigilance device set up since 2004, is functional and covers the critical zones of the Sahel and the North. This device is reactivated at the beginning of every crop year.

The Saaga program contributed to reduce the effects of pockets of drought, the cause of poor harvests and cereal deficits. This program was strengthened in year 2006 through the acquisition and installation of a radar covering a radius of 240 km on the program site of Sore-Dioulasso. A third aircraft (type King air 200) was also acquired.

2.4.2. Safeguarding access to land ownership

The main achievements in this area are:

• A report on titles requests and deliveries in rural areas.

• A cross study of the main legal texts regarding land and natural resources management, which was completed, and is being adopted, while a law safeguarding rural land ownership is being prepared.

• A national policy document on safeguarding rural land ownership (PNSFMR) that provides the overall orientation of a strategy and the action plan for its implementation. The terms of reference for the development of the said strategy and of its action plan are being finalized. The adoption of the law on PNSFMR will allow a review of RAF.

• Information and sensitizing sessions on the national policy to secure and safeguard land.

Along with these main results, other measures and actions were implemented, such as: land safeguarding in practice (in the field), safeguarding pastoral activities, and land policy.

With regard to land safeguarding, the achievements are:

• - extension of the ‘palaver’ minutes procedure to the 26 provinces with a direct PNGT2 intervention, which is a legal tool in the process of land security;

• - creation of 3 departmental and 39 village commissions to settle disputes between farmers and cattle farmers;

• - organization of 3 provincial workshops on the settlement of disputes between farmers and cattle farmers, and 6 provincial information and sensitizing workshops on land security, and land management regulations;

• - performance of 11 studies on land security experiences in various sectors, and on the social and land (ownership) situation in the provinces of Kénédougou and Soum

With regard to safeguarding pastoral activities, the activities undertaken include : infrastructure development, sector organization, stakeholders sensitization. The details are:

• - development of 95 cattle roads (1335 km long), 22 delimited grazing grounds, 65 access passages, 19 “boulis”, 47 water drillings, and 23 wells;

• - creation of 45 transhumant pastoralists organizations;

• - organization of 654 sensitization meetings, and participation to 49 transborder meetings on transhumance;

• - LORP dissemination and popularization among all categories of cattle farmers, whith however only three (3) radio broadcasts and 72 documents disseminated;

• - creation of a natural pastures management board;

• - development of natural pastures management tools;

• - development of management plans, as well as the requirements and special conditions needed for pastoral zones;

• - management of conflicts related to access to natural resources (492 noted conflicts, 176 conflicts solved amicably, and 571 sensitization meetings held).

2.4.3. Intensifying and diversifying crop production

The programmed measures included primarily an action plan for the rice sector, an action plan for rural communities financing, a cereals action plan, the development of rainfed rice growing, and support for the production and dissemination of improved seeds.

• Action plan for the rice sector (PA/FR)

Started in year 2000 as part of the action plan for agricultural sector organization (PAOSA), this plan has shown relatively satisfactory results between 2000 and 2006, with a rate of implementation (in relation to forecasts) of 89% for lowlands development (ha), 60% for seeds production, 106% for the supervision of lowlands producers, and only 26% for the supervision of producers on large perimeters.

In addition to this action plan, the development of rainfed rice made it possible to develop 6 216 ha of lowlands (104% rate of implementation); to build 10 stores, 10 drying surfaces, 151 market-garden wells; and to buy 14 decorticators, 28 threshing-machines and 4 tractors.

• Action plan for the financing of rural communities (PA/FMR)

This plan aimed at ensuring continuity of support provided to microfinance institutions (IMF) during the transitional period from March to July 2006, before the effective implementation of the microfinance national strategy action plan. The plan results included, in particular, the financing of a PACT, and the preparation and financing of two business plans.

• Cereals action plan (PAC)

This plan was worked out in 1999, and brought up to date in 2002; financing was provided and implementation started in June 2004, with the first 5-year phase. The PAC overall objective is to increase the economic and financial profitability of the cereal sector in order to contribute in a sustainable way to food safety. Its specific objective is to increase performance within the sector through the development of a favorable environment, and the improvement of the main actors organizations.

The efforts aimed more specifically at supporting capacity development to gain access to credit (in terms of organization and management, financial capabilities, etc.), improving information and communication, and developing quality standards.

In terms of information and communication, the following actions were carried-out:

• - development of a communication strategy for the CIC-B;

• - assessment of the main actors within the cereals sector in terms of their information needs;

• - publication of illustrated educational documents on the CAP and the CIC-B, in French, Mooré and Jula, and preparation of informational radio broadcasts.

With regard to the development of quality standards, the achievements are :

• - development of standards for processed cereal products, in collaboration with FASONORM and the technical standardization Ad Hoc committee;

• - development of technical specifications for unprocessed and processed cereal products.

• Support for the production and dissemination of improved seeds

In 2006, approximately 323.4 tons of cereals and leguminous plants improved seeds (14.4 T of millet; 38.4 T of sorghum; 128.8 T of corn; 28.6 T of groundnut; 64 T of niébé; 15.8 T of soy and 33,4 T of sesame) were provided to the poorest farmers in the 13 regions of the country, as part of the PPTE program.

• Development of small irrigation

The development of small irrigation made it possible to ensure a dry season production, thus contributing to reduce food insecurity. More than 26 000 ha have been developed and thousands of peasants trained in irrigation techniques, water management and (developed) perimeter maintenance. This resulted in a 186 000 T harvest of agricultural crops (corn, fruit and vegetables, niébé, etc) and in the improvement of producers income.

2.4.4. Intensifying and diversifying livestock production

With regard to animal husbandry, the 2006 priority actions are: 1) improving animal productivity, 2) improving competitiveness, and access to animal and animal products markets, and 3) improving the sector actors professional skills.

Improving animal productivity

In terms of animal production, year 2006 has seen the emergence of the avian flu in Burkina Faso (March 2006), affecting the poultry sector (eggs, chickens). Consequently, sanitary slaughter has been necessary, affecting 15 835 chickens, while 25 670 eggs were destroyed. In addition, 1447 producers were compensated for an amount of 20 394.000 F CFA. The human, material and financial means deployed by the government with the support of technical and financial partners made it possible to control the epizootic disease, and while it remains a threat for the country, the trend is today to resume the sector’s activities.

With regard to health measures, vaccination campaigns to fight other animal diseases were pursued, with a rate of implementation of 75% for vaccination against CBPP, and 103% for the one against the Newcastle disease, which corresponds to a coverage rate of 27% and 29%, respectively. Sustainable Tsetse and Trypanosomiasis Free Areas (PATTEC) were also developed in the west of the country. The Animal Diseases Epidemiologic Monitoring Network (RESUREP) has included contagious bovine pleuro-pneumonia and the avian flu.

With regard to genetic improvement, more than 200 bovines of improved breed were introduced to the cattle farmers to improve their dairy production (between 5 and 10 liters per cow and per day). Artificial insemination was practiced on 109 cows with performing races sperm. Improved breed of sheep, pig and poultry were distributed to cattle farmers. In addition, a national policy for genetic improvement is being developed.

With regard to animal nutrition, the government facilitated producers’ access to fodder cut, conditioning, and transport equipment (1 164 sickles, 481 scythes, 163 straw-pressing machines, 54 chaff cutters and 162 carts), as well as the acquisition of SPAI (715 tons of bran, and 2231 tons of oilmeals, for 30 and 1531 tons distributed). To improve accessibility to these products, six (06) storerooms were built.

With regard to livestock farming promotion, support has been provided for the improvement of farm housing through the distribution of improved house plans (1159 plans distributed), and for house sanitation through sensitization meetings (1503 meetings held).

In terms of sectoral strategy, action plans for the pig farming and milk sectors were developed and financing is being sought. In addition, a diagnostic study of the cattle/meat and small ruminants sectors was conducted, and action plans are being developed. Moreover, the study regarding the creation of a company for cattle/meat sector development is now completed. It must be supplemented by an economic survey before proceeding with the creation of the company.

Improving competitiveness and access to animal and animal products markets

Marketing and transformation facilities were built: 5 slaughter-houses, 7 slaughter areas, 3 cattle markets, 3 butcher stalls and a milk transformation unit. With the aim of strengthening market information systems, 42 cattle markets are being monitored and 9 new investigators have been recruited and paid by the markets management boards. These achievements aim at improving animal products competitiveness and access to markets; they will contribute to increase the added-value of animal products as well as cattle farmers and other sector actors incomes (cattle meat, small ruminants, milk, leathers and skins).

In order to improve animal products competitiveness, a guide to good practices in dairy transformation was developed and distributed.

The study regarding the construction of a refrigerated slaughterhouse in line with international standards at Bobo-Dioulasso is completed. The site has been selected and the project is in search of financing in the amount of 6 billion FCFA.

Professionalisation the sector actors

The extension activities in terms of animal husbandry techniques included 3188 meetings with 38 723 participants (5 671 women), and 6 601 follow-up activities, as well as 18 030 farm visits (ASVE), with 3 735 farms belonging to women.

Actions have been carried out to support the emergence of OPs and inter-professions (388 sensitization meetings), to restructure existing OPs, to improve the participation of animal husbandry professionals in the local dialogue meetings (268 sensitization meetings).

The producers were trained on several technical topics to improve their capacities (676 training sessions for 19 455 male producers and 5 936 female producers -180 agents were also trained). To support the diversification of service providers in the animal husbandry sector, authorizations to create businesses were granted to four (04) zootechnicians and a veterinarian.

2.4.5. Intensifying and diversifying forest and faunal products

The actions carried out in 2006 related to the regulatory and institutional framework, the production of seedlings, reforestation, forest and faunal productions, and support for small and mid-sized industry.

• In terms of regulatory and institutional framework

Legal texts concerning several areas governed by the forest code have been ready for more than a decade. These texts were supplemented by decree n^o2006-007/MECV/MMCE/MATD/SECU of February 15, 2006, regulating charcoal production in Burkina Faso. The institutional and legal reform plan for decentralization in the forest sector (PRIJD) was adopted, and information workshops on the contents of the document were held in 2006. Finally, the review of the three national forest policy (PNF) sub-programs allowed the adoption of the Burkina Faso forest and faunal resources management program (PCGRFF).

• With regard to plants production, reforestation and reduction of vulnerability

Year 2006 saw a resumption of activity in all areas, compared to 2005: seedling production increased by 34%, planted areas by 41%, producers training by 14%, the number of nurseries by 25%, the recovered degraded land surface by 61%. Populations are more and more motivated by the precepts of responsible ecocitizenry, manifested not only in the plantations of trees, but also in production financing and forestation.

In terms of reforestation, the situation is as follows: production of more than 4 228 kg of forestry seed, 8 056.610 seedlings, laying of 6 837.811 seeds for reforestation (13.026 ha), setting of 1 663 km of hedges and windbreak, creation of 3 communal forests and 113 village forests on a total surface of 11.287 ha

With regard to reducing vulnerability and increasing rural incomes, we can mention the adoption of a national partnership program for sustainable land management (CP) and the test cultivation of utilitarian herbaceous plants on seven (7) sites in 3 regions, with an aim of increasing natural fodder availability for livestock feeding, and rehabilitate large perimeters of degraded land by planting herbaceous fodder from the 3 test regions.

Forest and faunal productions

Forest production for 2006 includes more than 511 600 wood steres, 4 500 billets, 209 000 wooden tools (beams and forks), more than 71 000 quintals of coal, corresponding to more than 140 000 bags and approximately 150 000 fodder bundles. With regard to emergent sectors, 1 219 ha of land have been seeded to grow gum-Arabic tree (acacia Senegal), 2 557 ha were devoted to grow cashew trees, 1 314 ha to local fruit-bearing species, like oil palm, baobab tree, nitta, tamarind tree, “ziziphus”, etc. In addition, 900.000 fruit-bearing species seedlings were exported to neighboring countries in 2006. Moreover, ten species of timber are exploited by craftsmen, and by two sawmills in Banfora, whose annual production reaches 2 000 m3 on average per annum, less than 7% of national demand.

: In year 2006, the faunal population included: 128 species of mammal, 477 species of birds and 60 species of reptiles, which makes Burkina Faso one of the West-African countries with the largest faunal population. In term of production, year 2006 was marked by an increase of the exploitation of faunal resources, which constitutes a great source of proteins in particular for the bordering populations, and of incomes for the game restaurants. The following results were recorded:

• - 850 mammals were killed during the 2005-2006 hunting season, against 938 in 2004-2005 and 663 in 2003-2004. For the same periods respectively, 34 787, 33 293 and 19104 birds were killed;

• - 1501 hunting permits were delivered for all categories (small, big, and village hunting);

• - 1 432 hunters were recorded in 2005-2006 including 686 tourists, 80 expatriates resident and 666 nationals, against 1 391 in 2004-2005

Other activities carried out in year 2006 include:

• - the launch of the Sustainable Natural Resources Management Program) (PGDRN);

• - the launch of the Bobo-Dioulasso Natural Resources Management Project (PGREN) ;

• - the design of the acacia gum (gum Arabic) ten-year development plan, and the fire management national strategy, along with an action plan;

• - the construction of 15 bridges, control stations (etc.), and 2 ponds contributing to the rehabilitation of the faunal zone ecosystem in the East region.

With regard to small and mid-size industry in agriculture, animal husbandry, fishery resources, forestry and fauna

Initiatives taken in 2006 to make the population aware of its responsibilities include:

• - strengthening the partnership with the private sector through the organization of a symposium on the private sector and industrialists implication in environmental management;

• - carrying faunal inventories in the faunal protection areas;

• - organizing of the promotional days of the fauna sector;

• - creating approximately 20 small game breeding units by providing incentives and advice to the public and promoters in the East, Center-South, Center-West, and Hauts-Bassins regions;

• - setting up two faunal resource management associations (AGEREF) to support lucrative farming of their resources by the Center-South and Cascades regions communities;

• - setting up 71 hunting game management areas at the village level (ZOVIC) in 5 regions.

In addition, the development of a draft management plan for the Nazinga ranch; the effective launching of the classified Bangr Weogo forest development activities; the creation of two corridors for the passage of elephants between Nazinga and Red Volta River in Ghana, and between Nazinga and the Kaboré Tambi national park (PNKT) for tourism purposes; and the monitoring of the 24 faunal areas given to the private sector, are all part of private sector development initiatives.

2.4.6. Fishery production intensification and diversification

With regard to fishery production, in year 2006, 50 floating cages were set up, allowing a production of 9 500 tons, in conformity with forecasts. In terms of aquaculture production, 200 tons were produced, with a 133% rate of implementation.

In terms of infrastructure and organization of the sector, four regional fishing supplies and equipment centers (Sore, Di, Diébougou and Pama), and three restocking fish centers (Bilangha Yangha, Douna, Tougou) were built. The PAY of Kompienga and Bagré management boards are operational, with, in particular, a joint management fishery policy.

These achievements in terms of infrastructures and organization will result in a stronger contribution of the fishery sector to the county’s economy. The sector will soon be endowed with a sustainable development strategy for aquaculture, and a preliminary draft has been developed for that purpose in 2006.

2.4.7. Rural incomes increase and diversification

Rural incomes increase and diversification are a consequence of the development of the various sectors mentioned above. However, other activities resulted in rural incomes improvement.

Regarding agriculture and fishery resources, the government is implementing the small irrigation development program, part of “the national policy for the sustainable development of irrigated agriculture”, adopted in 2003, whose 4 components should be implemented by 2015. The total cost of the program is estimated at 87.8 billion FCFA.

The development of small irrigation made it possible to ensure out-of-season production, and to contribute to reducing food insecurity. More than 26.000 ha have been developed and thousands of farmers trained in irrigation techniques, water management and developed perimeters maintenance. The farming of these 26 000ha resulted in the production of 186 000 T of agricultural goods (corn, fruits and vegetables, niébé, etc), and in improving producers income.

With regard to fishery resources development, year 2006 production is estimated at 9 500 tons. In spite of a stagnation in production, a significant increase in fishermen incomes has occurred.

In the area of animal husbandry development, some 91,417.000 FCFA as financial support for micro-projects benefited some 3 377 producers, including 646 women under the PPTE. Support was also provided for the implementation of livestock farming units in peri-urban and rural areas (2 807 units), and access to credit facilitated (965 micro-credit applications from 3 893 producers, including 569 women were approved).

With regard to the environment, construction and development works for the benefit of communities, contributed to an increase in the incomes of rural populations, through the development of 150 881 ha of forests, and to ensure regular supply to households and wood industries.

With regard to the promotion of saving and credit systems adapted to the needs of vulnerable groups, 259 women benefited from 23 million FCFA in micro credit for the financing of income generating activities, in substitution to timber-cutting in the Haut Bassins region. In addition, 221 other micro projects were identified in the South-Center, Haut Bassins, and Cascades, while 8 others have already started in the East

2.4.8. Support to producers organisations

The government continued its support to strengthen rural actors capacities, to set up agricultural professional organizations, and to the effective functioning of regional chambers of agriculture (CRA).

Indeed, the national budget is currently the principal source of CRA financing with 200 million per year. However, from June 2005 to June 2007, regional chambers of agriculture (CRA) are benefiting from the support of the European Union with 980 million. Thus, thanks to these financings, regional chambers of agriculture (CRA) can be equipped and are able to hire the minimum personnel required.

2.4.9. Improving rural women life and work conditions

Production technologies, as well as training activities and sensitization campaigns in favor of women’s promotion have undeniably improved the living and working conditions of rural women, particularly by reducing their workload; and contribute to improve monetization of female activities.

In addition, with UNDP support, the government prepared and implemented the Multipurpose Platforms National Program for the Fight against Poverty (PN-PTF/LCP), which started its activities in January 2005 in the North, Boucle du Mouhoun, East and Center-West regions of Burkina Faso. This program main axis is the supply of energy services in rural areas to fight poverty.

Currently, the program concerns five (5) regions with approximately 120 multipurpose platforms. In February 2006, a program review has been performed regarding 19 platforms in the East and Center-East, whose purpose was to measure the level of ownership reached by the beneficiaries, as well as the contribution of these platforms to local development. Data analysis on the platforms autonomy gave the following results:

Eighty-four per cent (84%) of the platforms show proven performance on the technical level, and 75% on the economic and financial level.

• - 11% of PTF show fair performance on the technical level, and 17% on the economic and financial level;

• - 5% of PTF show weak performance on the technical level, and 13% on the economic and financial level.

Platforms contribute to the creation of wealth at the local level. The amount of activities or services has practically doubled in the villages, thanks to operational platforms. Time saving of two to three hours and half, reinvested in income generating activities, contributed to the improvement of women income.

Incomes, essentially for women managers, rose to approximately 3,5 million FCFA, and at least 120 women benefited from this situation. Approximately 80% of surveyed women (256) had an annual income lower than 10.000FCFA at the time of the platforms implementation, which increased to 30 000 FCFA at the time of the review. This economic-financial progress is apparent within communities.

The implementation of a platform was always accompanied by the opening of a literacy center for the benefit of the whole village community. These centers are more frequented with the reduction of home work for women. The need for collecting data on PTF operations in local languages had an important impact on maintaining literacy levels. The results of the review indicate that, on average, the communities literacy levels increased by at least 10% in general, and by 15% with regard to the female population.

2.4.10. Promoting youth employment and vocational training

With regard to employment, year 2006 saw the implementation of the recommendations of the Extraordinary Summit on Employment and Poverty Alleviation in Africa, held in Ouagadougou in 2004. This was done through the development of a national employment policy. This policy provides Burkina Faso with an orientation framework for the promotion of employment and vocational training

Efforts aimed at promoting employment were pursued through the national fund for micro-enterprises. In this area, the Support Fund for Vocational Training and Apprenticeship (FAPA) has financed 104 companies in 2006 (in the agro-pastoral, artisanal, commercial, services provision, and transport sectors) in the amount of 371 million FCFA, while the total requested was 1,564 billion FCFA. It also pre-financed some markets for the benefit of promoters in the amount of 106 million FCFA (226 million FCFA requested). These actions generated 670 new jobs. Support funds for the informal sector (FASI) financed 1 623 micro-projects for an amount of 755 670.000 FCFA, allowing the creation of 339 jobs and the consolidation of 4 087 others.

With regard to employment applications, the ANPE registered approximately 6 526 applications in 2006 for an annual objective of 8 000, and it was possible to find 295 jobs and offer training courses to 556 applicants. Interviews training sessions, counseling activities, and vocational guidance were organized for the benefit of 781 applicants. Training in entrepreneurship and job search techniques were organized for 704 young promoters and employment applicants. As part of the support provided for project design, 131 projects were developed, 20 of which got financing from the Regional Solidarity Bank.

In order to enhance graduates employability, the government initiated the Top-vacances-emploi project, and the support project for the socio-professional insertion of young graduates. The Top -vacances-emploi project, which was implemented in 2006, made it possible to find employment for more than 300 students from the University of Ouagadougou, in training in public and private companies. They also benefited from training in entrepreneurship and job search techniques.

With regard to professional training, quality vocational training activities in adequacy with the labor market needs were implemented, and training certification tested, in year 2006.

In addition, measures promoting an increase in training offers were pursued with the rehabilitation/building and equipment of the regional and provincial ANPE vocational training centers. The opening in 2006 of the Manga regional training center completed the coverage of all the thirteen (13) regions principal towns. These efforts made it possible to enroll 2 374 young people in initial vocational training in 2006 (against 822 in 2005), to recruit of 692 young people for the 2006-2007 session as well as the further training of 1 306 craftsmen (against 1051 in 2005). This approach, favoring decentralization of training would allow to better respond to training needs in all the country, and it was accompanied by the introduction of new training courses (rural mechanics, refrigeration and air-conditioning).

In order to identify priority areas and prepare training curricula, a study on the sectors in need of workers in Burkina Faso is available; carried out in 2005, it was supplemented by several others in 2006, among which:

• - the study on labor needs in the East;

• - the study on jobs in the craft industry and training possibilities;

• - the study to determine the sectors to support within the “elementary vocational training” project.

Through the Support Fund for Vocational Training and Apprenticeship (FAFPA) set up in 2003, approximately 1106 people (423 of them women) benefited from training for a total cost of 126,698.843 FCFA.. In terms of continuing vocational training, 868 workers were trained at the cost of 95,999.164 FCFA. In terms of training through apprenticeship, FAFPA contributed to the training of 149 people at the cost of 20,678.549 FCFA. In support of rural communities, 89 people were trained at a cost of 9, 021.130 F CFA. Regarding training structures, FAFPA rehabilitated 22 of them out of forty eight (48) recorded requests, in year 2006.

On the regulatory level, decrees relating to professional training programs and the harmonization of their content were prepared. Some are in the process of being adopted:

• - decree adopting dual vocational training;

• - decree adopting training organizational frameworks;

• - decree regarding the creation, mandate, composition and operation of the Professional Competency Audit Board (CCCP), part of the organization of certification (Decree N^o 002/MJE/SG/DGFP of 02-08-07).

• - decree regarding the creation, mandate, composition and operation of the Apprenticeship Training Concertation Committee (CCFPA).

In order to increase labor market visibility, the National Observatory for Employment and Vocational Training (ONEF) capacity to collect and analyze statistical data was strengthened. In 2006, this structure has developed a data bank on employment and vocational training and a Web site in order to improve access to information on employment offers, to statistics, and to other studies about employment and vocational training. Moreover, a job search guide was designed in 2006; it will be supplemented by a series of studies on job opportunities in the various regions, such as the one on the East region of 2006.

An analysis of the link between training and employment in large companies, started in 2006 thanks to the support of the National Statistical System Development Program (PDSSN), has not however been completed. This study aimed to understand the employment structure in our large companies, the downgrading, and deskilling phenomena, in order to identify the workers training needs.

With regard to youth, the government purpose is to develop an orientation and action framework in favor of young people. The national youth policy undertaken within this framework has been reviewed in 2006 to ensure consistency with the provisions of Burkina Faso’s President five-year program. Year 2006 saw the consolidation of the dialogue with young people, and other initiatives. The commemoration for the first time (August 12, 2006) of the international youth day was a great success, with the mobilization of thousands of young people in the various districts of Ouagadougou, Bobo-Dioulasso, and in other regions of Burkina Faso. Dialogue with the young people was also strengthened and pursued through the organization of the young people national forum second edition, held in Ouagadougou from December 19 to December 23, 2006, addressing the topic of “young people entrepreneurial dynamism for development”.

In order to widen young people access to micro-project financing, the government set up in 2006 the Young People Initiatives Support Fund (FAIJ). The purpose is to improve young people access to credit, particularly those trained in entrepreneurship, and will mobilize nearly five billion FCFA over five years, to support micro-projects and improve young people socio-professional insertion. The launching of the FAIJ, initially envisaged during the young people national forum, has been postponed because of the delay in adopting the legal texts pertaining to its implementation.

2.4.11. Improving access to rural areas and collective infrastructures

With regard to rural dirt roads, the following results were reached:

• - the construction of 150 km rural dirt roads, part of the 1000 km rural dirt roads construction project;

• - the launching of the 975 km cotton and rural dirt roads construction work in thirteen (13) provinces;

• - the construction of 80 km of rural dirt roads using the “critical points” technique;

• - the maintenance of 227 km rural dirt roads;

• - the conduct of technical studies regarding 300 km departmental service roads, 250 km of cotton, and 250 km of rural dirt roads;

• - the (ongoing) approval for the construction of 9 provincial antennas;

• - the setting up of a data base within the rural dirt roads directorate general;

• - the effective implementation of technical assistance.

The measures and actions concerning the 800 km construction work, as well as the detailed technical studies related to the 1238 km secondary roads and 670 km rural dirt roads, were not carried out.

With regard to road infrastructures, measures and actions taken contribute to improve the road network, and to ensure better access to the ocean. In addition, improving service road corridors contributes to reducing travel time and vehicles maintenance costs.

In addition to these activities related to road infrastructures, many other actions and measures were carried out in the areas of rural electrification and telephone services expansion. The Multipurpose Platforms National Program for the Fight against Poverty (PN-PTF/LCP) mentioned above is also a powerful means to provide access to rural areas.

The multipurpose platform made of a diesel engine able to propel various tools (cereal mills, decorticators, battery charger, etc.), to produce electricity for lighting, refrigeration and water pumps, allows to perform several activities (grinding, decortications, welding, lighting, pumping water, etc.); and is a “decentralized source of energy” adapted to rural and peri-urban areas, designed to replace human energy, in particular that of women who don’t have access to modern sources of energy yet. This program has positive effects on the OMD and CSLP targets.

With regard to posts and telecommunications, territorial coverage has improved. Three (3) new post offices (Béguédo, Titao and Bittou) were built, and a post office counter opened in Bobo-Dioulasso Polytechnic University. In addition, in order to improve the quality of services, three post offices were connected to the data-processing network (bringing to 13 the number of computerized offices), and a postal items monitoring/tracking system put in place. The various actions implemented contribute to improve mail services quality, to set up new mechanisms for the transfer of funds such us Téliman money order, Money Express, express international money orders, and to pursue the computerization of the postal network in connecting 10 post offices.

The TIC promotion policy and sectoral strategy document was adopted by the Council of Ministers in year 2006. This document stresses the guidelines in terms of the strategies adopted to improve access of the population to TIC. On the whole, sector reform clearly improved the offer of telecommunications services to the population. As of December 31, 2006, fixed telephony covered some 280 localities, against 152 in 2000, and 175 localities by mobile telephony against 16 in 2000. In total, fixed and mobile teledensity increased from 5.5 telephones for 100 inhabitants in 2005 to 8.5 telephones for 100 inhabitants as of December 31, 2006. The international band-width offering by ONATEL for Internet increased from 42 Mbits/s to 197 Mbits/s up-path, and from 60 Mbits/s to 215 Mbits/s down-path, by December 31, 2006.

Moreover, ADSL was introduced, and 1 483 ADSL subscriptions were recorded, increasing the number of subscribers from 314 to 1 797.

ONATEL plan to proceed with fixed telephone network reliabilisation (fiabilisation) and extension to all county towns in 2006 was not entirely carried out. Efforts will be made in 2007 to complete the 2006 plan, and to implement the 2007 plan. On the whole, 8 058 fixed telephone lines were installed, and the number of lines increased from 91 091 in 2005, to 99 149 in 2006. The number of subscribers to mobile telephony networks has increased by 62%, from 630 000 to 1 016.605.

The core of the administration/government national data-processing network (RESINA) was transformed in an integrated network, voice and data, and secured; thus creating the bases for the development of a government Intranet and electronic administration. The application decrees for the national cyberstrategy follow-up entities were adopted. In order to strengthen the government capacity to use computers as a tool, 1 691 government employees were trained in that field. The support program for TIC promotion allowed the installation of computer cabling for the National Assembly, national radio, rural radio, ENAREF, national archives, as well as the acquisition of 100 computers for the primary education system.

Efforts deployed these past years to develop the sector had a significant positive impact on the national economy, and on the government strategy to fight poverty. Access to telephone by the majority of the population contributed to stimulate economic activities. More than 35 000 indirect jobs were also created thanks to telecenters, cybercafés and cards distribution activities. Over the 2000-2006 period, the telecommunications sector contribution to an increase in GDP, from 2 to 3.9%.

The efforts deployed within the second national data-processing master plan (1996-2000) in order to foster ICT utilization in public administration, began to bear fruit. In general, the use of office technology is resulting in an improved productivity on the part of government agencies. With regard to financial matters, the use of ICT improved transparency and accuracy in financial management. Civil servant management, public expenditure management, tax and revenue management (customs in particular) are entirely computerized. With regard to territorial communities, a computerization process was also initiated on the basis of a common software platform for decentralization to be based on rigorous, transparent and efficient management.

The role that the Internet and its applications can play in regional integration processes; in improving competitiveness, good governance and the quality of services, is increasingly considered as crucial.

2.5.1 Political governance

2.5.2 Administrative governance

With regard to management tools, during year 2006, the Civil Service Administrative and Payroll Management Integrated System (SIGASPE) was extended to most ministries and government institutions through their human resources directorate (DRH) or their administration and finance directorate (DAF). In terms of accompanying measures, a training course for 52 DRH and DAF agents was organized. A SIGASPE revision scheme was validated by the users group in August 2006, and will also be validated by the steering committee at a later date.

In order to control the wage bill, the efforts carried out in 2001 to resorb the delays in terms of promotion were pursued in 2006 for all categories, excluding category A, which will be dealt with in 2007.

In order to facilitate civil servants career proximity management, the Ministry of Civil Service and Administrative Reforms has opened seven regional directorates (Haut-Bassins, East, Boucle de Mouhoun, North, Center-West, Sahel and Center-East). In addition, the 11^th exam center was opened (in Manga), and 18 new sites for the reception of candidates applications for public office, thus the 45 province county towns now have reception centers for candidates applications.

With regard to the government institutional framework, decree N^o2005- 203/PRES/PM/MFPRE/MATD/MFB of April 6, 2005, concerning Burkina Faso administrative devolution general principles, has established an interdepartmental committee for service decentralization and a regional decentralization council in every region. However, the formal setting up of these instances was not effective in 2006. The methodology for the development of a national decentralization plan was nonetheless validated and will be useful for the development of sectoral plans to decentralize the various ministries.

The deployment of government’s Intranet in Ouagadougou is done through migration to Gigabits Ethernet voices and data network, and includes a secured Internet connection of 30 administrative buildings, in order to promote electronic administration. An invitation to tender is being prepared for the extension to all government buildings in Ouagadougou and Bobo by 2007. On the other hand, the support program for ICT promotion was pursued with the installation of computer cabling in the National Assembly, national radio, rural radio, and ENAREF. Finally, more than ten ministries have a master plan to introduce ICT, while it has been the case for the ministry of finance for several years already.

2.5.3 Economic governance

In order to promote economic governance the following actions were carried out: (I) strengthening the steering and management capacities of the economy, (II) fighting against corruption and (III) coordinating aid.

2.5.4 Fighting corruption

With regard to the fight against corruption, it was necessary to develop a national anti-corruption policy, as well as an implementation action plan. Although the national anti-corruption policy was adopted in May 2006, the action plan could not be adopted. Indeed, an action plan outline was produced and used for discussions between the various stakeholders, but the final document was not available yet by the end of 2006. This is due in part to divergent views among main actors (government, PTFs, private sector and civil society).

2.5.5 Local governance

Decentralization was consolidated after the two local elections held in 1995 and 2000, starting a process that led to “integral communalization” with the municipal elections of April 23, 2006. More specifically, 302 rural communes were set up after these local elections, and their deliberative organs constitute a turning point in the decentralization process in Burkina Faso.

To support local and regional authorities deliberative organs, in terms of local council members capacity building, a training policy document was devloped. Priority training sessions on issues such as the organization and operations of town councils, the development and implementation of local budgets, and the holding of municipal registry of births, marriages and deaths, were offered in 2006, and will be supplemented by other priority modules in 2007 (mayor attributions, regional planning, local development plans). These modular training sessions will be accompanied by functional literacy courses in easy French (franÇais facile) for local councillors, since more than 15 000 among them are illiterate.

The decentralisation regulatory framework was completed with decree n^o2006-209/PRES/PM/MATD/MFB/MEBA/MS/MASSN/MCAT/MSL, of May 15, 2006, dealing with competency and resources transfer to urban communes with reagard to priority areas; and decree n^o2006-204/PRES/PM/MFB/MATD of May 15, 2006, defining regional or local authorities financial and accounting systems, in Burkina Faso.

Several commune head offices are being built (60 on the government budget, 12 on Danish funds and 6 on their own funds). Several studies were carried out on the strengthening of local governance, including:

• the public expenditures review from the Ministry of Territorial Administration and Decentralization (MATD);

• the study about the set up of regional inspectorates;

• the completion of the strategic framework for decentralization implementation (CSMOD);

• the study about expanding agency lines to peripheral regions;

• the assessment of rural communities startup needs.

Among the actions being implemented, we can mention: the development of a government support policy for local development, and a regional investment promotion policy; the drafting of a local development guide; the setting up of a fund for local sustainable investment; the establishment of a unified government support technical system to local authorities. Moreover, other actions are being developed.

With regard to local development, the implementation of several projects and programs in the various regions, focusing either on local development (local development program in Zoundwéogo, Sanmatenga, Sanguié-Boulkiemdé, Soum, the West, etc.), on “terroirs” management (PNGT2), or on rural development, has been successful. With the adoption and implementation of the decentralized rural development policy document, a tendency towards harmonization of the various projects and development programs on the ground is noticeable. There is an increase in local ownership in terms of development projects and programs, driving local governance improvements.

2.6.1 Gender issues

The national gender policy (PNG) was not developed in 2006, as expected. Many constraints explain this delay, linked in particular to the consultants selection process. The participatory approach adopted requires to reach consensus at every stage of the process, conflicting with the very busy schedule of the PTFs involved in it. Moreover, after the setting up of a technical committee in charge of monitoring PNG development, (ministerial decree N^o2006_07/PM/MEDEV of April 14, 2006) the national gender expert was recruited only in October 2006 and the consulting firm one month later, in November 2006.

However, the PNG process is now on track, and the first phase of the review survey was completed in January 2007. If the other activities are carried out according to schedule, the national gender policy study phase, should be available by May 2007.

In the mean time, various ministerial departments took part in the national gender policy preliminary study, performed by the consulting firm Impact Plus. Some departments have already integrated the gender dimension in their policy, which has been the case for several years for the Ministry for the promotion of women. It is also the case for the departments in charge of human rights promotion, education, health, rural development, etc. The Ministry of defense is also to be mentioned with many related actions carried out in 2006 2007.

Indeed, in 2006, the ministry of defense has started to increase the number of women in the armed forces, in collaboration with technical and financial partners. This project is well integrated in the fight against poverty. Moreover, it allows the armed forces to benefit from women unquestionable abilities. The ministry of defense gender policy should intensify in 2007. Already in 2006, women future officers have been recruited.

2.6.2 Capacity building

Facing human capacity building challenges effectively is necessary to deliver conclusive results in priority areas, in order to meet the Millennium Development Goals, and to efficiently manage the economy.

With regard to results-based management of the economy, many activities were organized in 2006, including two workshops for the directorates of planning and [economic] studies, and the coordination structures in charge of sectoral policies (STC - PDES, SP/PDDEB, SP/PNDS, and SP-CPSA), but their impact has not been assessed yet.

In addition, two training workshops were organized for the unit in charge of the poverty map, with the purpose to build capacity in the treatment of "spatialisable" economic and social data processing, as well as the production and archiving of poverty maps. In these workshops, the geographical information system (SIG) was used in monitoring and evaluation of actions carried out in the fight against poverty, while taking into account the spatial dimension.

5.1.1. Accelerating equity-based growth

With regard to public finance management, the 2007-2009 period will see the implementation of the public finance strengthening strategy. Thus, focus will be put on forecasting, programming and budgetary tools in order to better channel the resources towards priority sectors. Measures like the progressive adoption of sectoral policies within the various departments, the implementation of a new strategy for budget program (budget programme) and sectoral MTEF, the dissemination of a manual on MTEF, and the carrying-out of some public expenditure reviews, will allow to reach the above-mentioned objective.

In order to strengthen the internal resources mobilization system, the government will pursue the modernization of the tax authority with the progressive implementation of a computerized tax system. The deployment of the software for computerized taxation (SINTAX) will allow to improve tax arrears management and the data-gathering activity needed for the implementation of the integrated circuit used for tax revenue (CIR), which is being finalized. With regard to the dynamization of the import tax revenues (“recettes de porte”), SYDONIA++ will continue to be implemented in all its functionalities, and the interconnection of border offices and commission agents will be finalized. Data processing from the tax census undertaken in 2006 will have an impact on fiscal revenue with the widening of the tax basis, and the monitoring of taxpayers.

In order to improve public expenditure management, it will be necessary to (I) improve the debt management system by completing the integrated circuit software for external financings, (II) speed up procedures and improve transparency in terms of procurement by implementing the CPAR action plan, (III) continue the renovation of the public finance legal framework, (iv) finalize CID and revise SIGASPE, (v) improve the quality and transparency of the finance law, and (VI) pursue the decentralization process through the completion and implementation of the new communities financial system, and finalize the financial management software and its deployment.

With regard to improving the business climate to promote the private sector, in spite of the requirements to optimize tax revenues, the government will reduce certain taxes having to provide incentives for investors in Burkina Faso. Thus, the government will:

• - reduce certain taxes;

• - facilitate the acquisition of titles for use of property in extending the acquisition period (currently from February 1 to December 31, 2007), and is considering setting up a one - stop shop for land related matters;

• - complete the revision of the general tax code during year 2007; and

  - continue to reduce administrative procedures.

In addition, the other actions implemented or anticipated in the short or mid term are :

• - extend CEFORE competences to include businesses modification and removal from register (radiation);

• - accelerate the transfer of the one-stop shop centers (CGU) to the Maison de l’entreprise by completing the repair of the CGU headquarters;

• - open Bobo-Dioulasso CEFORE (expected for early 2007);

• - set up a one-stop shop for construction permits;

• - set up the national file for the commercial registry office and for credits based on personal property (crédit mobilier)(RCCM);

• - combining in one form the CEFORE single form and that of the tax authorities;

• - proceed with the interconnection between CEFORE and partner agencies;

• - accelerate the creation and implementation of the approved management centers;

• - proceed with the creation of an observatory of the business climate;

• - proceed with the creation of a Bank for SME;

• - set up a special fund for business start-up;

• - complete the revision of the investments code;

• - complete the revision of the basic [legal] texts on commerce (textes de base sur le commerce)

With regard to improving the economy competitiveness and reducing the factor cost, the main measures and actions considered in the mid-term relate to the improvement of the labor market, the reduction of cost factors in transport, energy, telecommunications, etc.

With regard to the labor market, the actions and measures aim at improving the legal and regulatory framework through the promotion of basic labor rights and a greater legal texts flexibility, as well as the dynamization of dialogue frameworks between social partners. This implies :

• - the drafting of the Employment Code application texts;

• - the consensual adoption of a social charter with the social partners

• - the institution on a regular basis of the government/trade unions and government/private sector meetings, and the improvement of working people education

• - the dynamization of collective bargaining through the inter-professional collective agreement (CCI) of July 9, 1974 revision, the negotiation of new sectoral conventions in the new sectors or those that are not covered by specific conventions such as for banks, bakeries, road transport, press, etc. (expected in 2007);

• - the setting up of the national council for employment and vocational training in 2007, after the adoption of the national employment policy;

• - the actualization of the vocational training centers directory in 2007.

In order to allow young people to have access in 2007 to social services at a reduced cost, as well as to commercial and recreational centers, the government will engage in a dialogue with retailers organizations, the Chamber of Commerce, employers, and the ministries interested in operationalizing the project “carte jeune”.

In the field of transport, the actions and measures aim at creating a legal framework favorable to exercising the transport profession, developing frameworks for dialogue with the sector actors and at continuing to improve access in the country through:

• - the revision of the access conditions to and exercise of public road carrier;

• - the implementation of actions and measures to facilitate transit traffic;

• - the continuation of the multiannual training program for transport SMEs in management of their activities;

• - the dynamization of the existing dialogue frameworks, involving users, transport operators and the government, in order to develop a better synergy among them;

• - the operationalization of the measure concerning the renewal of the taxi fleet, decided by the government at the time of the consultation meeting between the government and the private sector;

• - the continuation of the activities carried out in terms of standardization and improvement of the national automobile park;

• - the completion of the “Road safety improvement project”;

• - the (new) Ouagadougou airport rail Link;

• - the follow-up of the ECOWAS and NEPAD interconnection projects aimed at improving the country external access and its connection to the maritime coast;

• - the continuation of the “Air Transports Safety Program in Center and West Africa” (PSSTAAOC);

• - the study regarding the development of the current Ouagadougou airport site, and to create consistency among all the studies already carried out;

• - the organization of an audit for the certification of Ouagadougou and Sore-Dioulasso airports in order to conform them to ICAO standards.

In the energy sector, the activities carried out relate to sector regulation and investments implementation aiming at ensuring the availability of least cost energy through the following measures and actions:

• - revision of the law regulating electric power supply to Burkina Faso;

• - drafting of (legal) texts implementing the law;

• - drafting of (legal) texts regulating the electricity sector;

• - implementation of the new project regarding rural and peri-urban areas access to energy services;

• - effective launching of the electric interconnection Bobo-Dioulasso-Ouagadougou preparation work;

• - actualization of the feasibility studies regarding the electric interconnection Ghana - Burkina;

• - isolated centers electric connection to the network;

• - completion of thirty localities electrification work.

In the telecommunications sector, year 2007 is marked by the development of legal and regulatory frameworks regulating the post and telecommunications department and the ICT sector various activities. The focus will also be on pursuing the implementation of basic infrastructures for networks and telecommunications services convergence. With regard to the postal sector, a precise diagnosis of the sector will be performed in order to define an adapted reform strategy and a legal and institutional framework to accompany the strategy. Thus, the following actions are envisioned :

• - development of the legal and regulatory framework regarding electronic transactions and the fight against cybercriminality;

• - deployment of government Intranet in Ouagadougou and other cities;

• - development of sectoral CyberStrategies;

• - organization of information and training activities in the ICT area;

• - improve administrative staff capacities in the use of office system tools, with the objective to train 2000 staff members;

• - continuation of the ADEN project;

• - revision of the bill of law on networks and electronic communication services

• - launching of the technical, economic, legal and institutional survey for the construction of the infrastructure for voice, data and video transport;

• - revision of the telecommunications sector regulation procedures;

• - operators tariff supervision;

• - diagnostic study of the postal sector, development of a reform strategy for the sector and definition of a legal and institutional framework of the postal sector;

• - strengthening SONAPOST

With regard to market liberalization and privatization, the government will continue during the 2007 - 2009 period the privatization and liberalization of existing public enterprises from the state residual portfolio.

With regard to promoting regional integration and develop a service economy, the efforts to promote and diversify exports will continue in 2007, particularly through the adoption of the law on standardization (which could not be done in 2006), and the formulation of the Burkina Faso national strategy for export promotion, part of the diagnostic study financed by the World Bank, about the commercial integration (EDIC) of Burkina Faso. Thus, the following studies will be carried out:

• - the study on export promotion to upgrade export capacity in 2007;

• - the study on the determinants of savings and private investment in Burkina Faso, and the analysis on the medium-term impact of the Economic Partnership Agreements (APE) in 2007

In terms of support for the productive sectors in order to improve their contribution to economic growth, the focus will be on the development of the tourist sector, the promotion of microfinance and the development of economic infrastructures.

The development of the tourist sector will include:

• - the development of a master plan for tourism development. The study and the TDR (done by OMT) are available and the partners contribution is requested to finalize the financing estimated at 340 000.000 FCFA;

• - the implementation of the ST-EP program (Sustanaible Tourism - Eliminated Poverty): It is a development program of five (05) tourist sites: Bazoulé, Koumi, Tiébélé, Oursi, and Gani financed by the ST-EP program in order to fight poverty at the local level;

• - the training/recycling of one hundred (100) tourist guides by ONTB, in order to learn the reception and communication techniques, for an amount of 2 647.500F