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afrol News, 17 October - IMF Director Horst Köhler on his first visit to Mauritania's President Ould Sid'Ahmed Taya in Nouakchott, praised the accomplishments of the country's government. Mauritania is one of the IMF's principal success stories, where economic theories are turned into practice. Mr Köhler and President Taya had had "a very fruitful meeting" on Tuesday, where the IMF Director had noted "a shared understanding of Mauritania's accomplishments and of the challenges that lie ahead." There was agreement on continuing the existing economic reform programmes and poverty reduction strategies. According to Mr Köhler, Mauritania had made "strong progress under the Poverty Reduction and Growth Facility (PRGF)," the latest of a series of IMF-supported economic reform programs over the past decade. Thanks to the President's efforts, "Mauritania has achieved robust economic growth and low inflation, and - most important - made progress in reducing poverty," Mr Köhler said in Nouakchott. He added he was "impressed that the President made clear that fighting poverty is Mauritania's top priority." He further congratulated President Taya "on your achievements." - His Excellency the President and I share the view that while a stable macroeconomic economic environment has benefited Mauritania, and remains a prerequisite for growth - major challenges remain, both to quicken the pace of sustainable growth and to reduce poverty, said Mr Köhler. The two leaders had agreed upon the need to continue efforts to improve public expenditure management, "in part to better target social and poverty-reducing expenditure." They also agreed on the need to improve the operation of the foreign exchange market as "an essential step for improving the business environment, enhancing growth and reducing poverty."
Mr Köhler said he was "struck by the commitment of the authorities" to continue the course of opening up the economy and integrating it into the global economy. Mr Köhler and President Taya had agreed that advanced economies should make more rapid progress in opening their markets and in phasing out trade distorting subsidies. In this regard, they also agreed on the importance of "ensuring that globalisation works for all, including small, developing economies." The IMF stood "ready to assist Mauritania in completing its reform agenda," Mr Köhler assured. "We are confident that the authorities will meet these important future challenges and we wish you every success." During its long cooperation with the IMF and the World Bank, President Taya's government closely has stuck to the recommendations of these to institutions. Reforms have been successful, when measured in economic growth. Mauritania has had one of the region's highest growth rates over the last decade. Successes have however been more limited in other fields. Although the percentage of people living in poverty was reduced somewhat during the 1990s, little of the decade's economic growth reached the country's poors. Environmental degradation has increased and desertification has pushed a great number of farmers and herders into poverty and misery. For the first time in decades, Mauritanians are currently facing starvation.
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