Burkina Faso - Economic development

Development of the agricultural sector and of infrastructure have been the priorities established by Burkina's recent development plans. The 1991–95 plan estimated that 75% of the investment total would be allocated to agriculture. A 1995–97 plan, developed with support by the International Monetary Fund (IMF), included a goal of 5% real annual growth in gross domestic product (GDP), with inflation controlled to a maximum of 3% per year. The plan placed emphasis on privatization and encouragement of foreign investment, particularly in industrial mining. As of the early 2000s, there was considerable interest in mining, especially of gold.

The country regularly receives bilateral and multilateral aid, primarily in technical assistance. France and the United States are the leading bilateral aid donors. Since 1991, Burkina Faso has been supported by relief from the IMF's Enhanced Structural Adjustment Facility (ESAF), and a Poverty Reduction and Growth Facility (PRGF). Burkina Faso reached its completion point for assistance under the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative in 2000. The country completed a PRGF arrangement in 2002 that was fully disbursed. A three-year $34 million PRGF arrangement was approved in June 2003 to support the government's economic reform program for 2003–06. The 2002–03 political crisis in Côte d'Ivoire, Burkina Faso's major regional trading partner, had repercussions in Burkina Faso, particularly with regard to the collection of taxes, and to the need for increased humanitarian assistance, border control, and security spending. Spending in 2002 was for goods and services including telephones, electricity, and water. Spending was also necessary for education, health, and other poverty-reducing initiatives.

Also read article about Burkina Faso from Wikipedia

User Contributions:

Comment about this article, ask questions, or add new information about this topic: