   |
|
afrol News, 28 April - While Niger has benefited from a good agricultural year, and the national economy therefore shows substantial growth, government's fight against poverty is showing poor results. Privatisation remains one of the main goals of these policies. According to the latest assessment of the International Monetary Fund (IMF), Niger benefited in 2002 from good climatic conditions that led to a bumper crop for the second year in a row. Economic growth rebounded, inflation had declined to less than one percent per annum, and the external current account deficit was contained. Improved policy implementation contributed to the generally good economic outturn. The program supported by the Poverty Reduction and Growth Facility however "was confronted in the second half of 2002 by a difficult socio-political environment, including labour strikes and a mutiny by part of the military," noted Eduardo Aninat, acting regional chairman of the IMF. Nevertheless, implementation of the program to fight poverty had remained "broadly on track at end-September 2002." The authorities were encouraged to strengthen further their institutional capacity and reinforce their monitoring of program implementation. - The authorities' economic and financial program for 2003 is broadly in line with the objectives of the three-year arrangement under the Poverty Reduction and Growth Facility and the poverty reduction strategy, observed Mr Aninat. The program's underlying macroeconomic objectives include sustaining the rate of economic growth, containing inflation, and limiting the external current account deficit. Achievement of program objectives would be helped by a lasting resolution of the crisis in Côte d'Ivoire, Mr Aninat however noted. Fiscal policy in 2003 aims at achieving further adjustment while imparting greater momentum to implementing the poverty reduction strategy and protecting the social sectors, according to the IMF report. "At the same time, it will be important that the planned large increase in capital outlays be supported by strengthened domestic spending implementation and monitoring capacity, and with attention paid to the ongoing current spending commitments that capital spending typically generates." The Nigerien authorities were to continue to pursue "a prudent monetary and credit policy in the context of Niger's membership in the Central Bank of the West African States and the West African Economic and Monetary Union," Mr Aninat observed. Developments in the banking sector further were to be monitored closely by the government, and surveillance activities to be stepped up. "Central bank advances to the government are to be reduced in line with the agreed policy at the regional level. The government will begin auctioning treasury bills on the regional securities market." Structural reforms to be implemented in 2003 included the opening of an operational multisectoral regulatory agency, and the privatisation of the electricity and petroleum product import companies. Privatisation remains the IMF's main recipe for poverty reduction although this is met by heavy critiques from other stakeholders. Tax and customs administration and treasury and budget management were also to be reinforced within the structural reform framework. "Efforts to strengthen institutional capacity and monitoring, including through Fund technical assistance, will support the structural reforms going forward," according to Mr Aninat. The IMF leader says the government will "need to continue to pursue a prudent external debt-management policy, and to make strong efforts to reach the floating completion point under the enhanced Initiative for Heavily Indebted Poor Countries (HIPC Initiative) in the third quarter of 2003." The HIPC Initiative debt relief secured by Niger to the end of 2002
amounts to 80 percent of the total relief required in net present value
terms to put Niger's debt burden on a sustainable footing," Mr Aninat
said.
|
