REPUBLIQUE DU NIGER

OFFICE OF THE
PRIME MINISTER
*********
PERMANENT SECRETARIAT
OF THE PRSP
FRATERNITE–TRAVAIL -PROGRES

POVERTY REDUCTION
STRATEGY

Full Poverty Reduction Strategy,

Prepared by the Government of Niger

Niamey, January 2002

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Contents Page

List of Acronyms and abbreviations..............................................................................................7

List of tables....................................................................................................................................9
List of boxes....................................................................................................................................9
List of figures ..................................................................................................................................9
Methodological Note ....................................................................................................................10
Introduction...................................................................................................................................12

PART I: Diagnosis of Poverty in Niger ......................................................................................17

I. Characteristics of Poverty in Niger....................................................................................18

1.1. Definition and various perceptions of poverty...................................................18
1.1.1. Definition of poverty........................................................................................18
1.1.2. People's perception of poverty.........................................................................18
1.1.3. Knowledge of poverty in Niger .......................................................................19
1.2. The Poverty Profile ....................................................................................................20
1.2.1. Monetary poverty .............................................................................................20
1.2.1.1. Sources of income.............................................................................20
1.2.1.2. Income...............................................................................................21
1.2.1.3. Household consumption...................................................................21
1.2.2. Poverty in living conditions.............................................................................24
1.2.2.1. Malnutrition.......................................................................................24
1.2.2.2. Access to drinking water and sanitation..........................................24
1.2.2.3. The health situation...........................................................................27
1.2.2.4. Education...........................................................................................30
1.2.2.5. Habitat ...............................................................................................33
1.2.3. Regional disparities ..........................................................................................33
1.3. Other Causes of Poverty............................................................................................34
1.3.1. People’s Perceptions of the Causes of Poverty...............................................34
1.3.2. Vulnerability .....................................................................................................36
1.3.2.1. Rural development............................................................................36
1.3.2.2. Food security.....................................................................................37
1.3.2.3. Rapid population growth and demographic pressure .....................37
1.4. Poverty by Gender .....................................................................................................38
1.4.1. Forms of discrimination against women.........................................................38
1.4.2. Low income levels for women ........................................................................39
1.4.3. Girls’ low education levels and women’s illiteracy .......................................39
1.4.4. Women’s poor health .......................................................................................40
1.4.5. Greater vulnerability of women.......................................................................40

II. Trends in Principal Aggregates Over the Past Ten Year..................................................41

2.1. Supply of Goods and Services ..................................................................................41
2.1.1. Production.........................................................................................................41
2.1.2. Imports ..............................................................................................................42
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2.2. Demand for Goods and Services...............................................................................42

2.2.1. Consumption.....................................................................................................43
2.2.2. Investment.........................................................................................................43
2.2.3. Exports ..............................................................................................................44
2.3. Public Finance ............................................................................................................45
2.3.1. Revenue.............................................................................................................45
2.3.2. Expenditures .....................................................................................................46
2.4. Balance of Payments 1990–2000..............................................................................47
2.5. Domestic and External Borrowing ...........................................................................49
2.5.1. Domestic Debt ..................................................................................................49
2.5.2. External Debt ....................................................................................................50
2.6. Net Foreign Assets.....................................................................................................51
2.7. Credit ..........................................................................................................................51
2.8 Interest Rate................................................................................................................52
2.9. Monetary indicators ...................................................................................................52

PART II: Niger's Vision of Its Development..............................................................................54

III. National Priorities and Poverty Reduction Objectives .....................................................55

3.1. Objectives of the Poverty Reduction Strategy .........................................................55
3.2. Priorities Expressed by the Population.....................................................................56
3.3. National Priorities Within the Framework of Poverty Alleviation.........................57
3.3.1. Creation of a stable macro-economic framework as a prerequisite
for sustainable growth...................................................................................57
3.3.1.1. The foundation of growth.................................................................57
3.3.1.2. Objectives and policies.....................................................................59
3.3.2. Promotion of rural development objectives .......................................................60
3.3.3. Development of the social sectors ......................................................................61
3.3.3.1. Education...........................................................................................62
3.3.3.2. Health.................................................................................................63
3.3.3.3. Water and sanitation .........................................................................63
3.3.4. Development of road transportation, mining, and energy.................................64
3.3.5. Promotion of the private sector, tourism, and handicraft..................................64
3.3.6. Urban development..............................................................................................64
3.3.7. Promotion of good governance, the strengthening of human
and institutional capacity and decentralization............................................65
3.3.7.1. Political governance..........................................................................65
3.3.7.2. Economic governance.......................................................................65
3.3.7.3. Local governance and decentralization ...........................................65
3.3.7.4. Strengthening human and institutional capacities ..........................66

PART III: Strategic Policy Orientations and Priority Actions, 2000-04...................................67

IV. Strategies for Poverty Reduction to the Year 2015...........................................................68

4.1. Strategy Principles .....................................................................................................68
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4.1.1. Gender considerations .........................................................................................68

4.1.2. Promoting good governance ...............................................................................68
4.1.3. Redefining the role of stakeholders ....................................................................68
4.1.3.1. The State ............................................................................................68
4.1.3.2. The population ..................................................................................69
4.1.3.3. The civil society ................................................................................69
4.1.3.4. The private sector..............................................................................70
4.1.3.5. Development partners.......................................................................71
4.2. Comprehensive Poverty Reduction Strategy in Niger by the year 2015................71
4.2.1. The PRS macroeconomic framework.................................................................71
4.2.1.1. Baseline scenario ..............................................................................71
4.2.1.2. Short and medium-term perspective in a slow growth scenario ....72
4.2.1.3. Fast growth scenario .........................................................................73
4.2.1.4. Financial sector and growth strategy ...............................................75
4.2.2. Development of production sectors strategies ...................................................77
4.2.2.1. The rural sector and food security ...................................................77
4.2.2.2. Road transport, mines, and energy...................................................78
4.2.2.3. The private sector, tourism, and handicraft.....................................79
4.2.3. Securing the poor’s access to basic social services ........................................79
4.2.3.1. Education...........................................................................................79
4.2.3.2. Water and sanitation .........................................................................80
4.2.3.3. Health, HIV/AIDS, and the population ...........................................80
4.2.3.4. Access to safe drinking water ..........................................................81
4.2.3.5. Urban development...........................................................................82
4.2.4. Promotion of good governance and strengthening human
and institutional capacity and decentralization............................................82
4.2.4.1. Political governance..........................................................................82
4.2.4.2. Economic governance.......................................................................82
4.2.4.3. Local governance and decentralization ...........................................83
4.2.4.4. Transparency and combating corruption.........................................83
4.2.4.5. Building human and institutional capacities ...................................83
4.2.4.6. Information and communication technology development............84
4.3. Risks to the Strategy ..................................................................................................84

V. Priority Actions, 2002-04 ...................................................................................................85

5.1. Priority actions Related to the Macroeconomic Framework...................................85
5.1.1. Improving budget preparation and programming..............................................86
5.1.2. Streamlining budget execution ...........................................................................87
5.1.3. Enhancing budget management..........................................................................87
5.1.5. Strengthening the management of human resources.........................................88
5.2. Priority Actions Related to the Productive Sectors .................................................88
5.2.1. Rural sector .......................................................................................................88
5.2.1.1. Agro-sylvo-pastoral development and food security......................89
5.2.1.2. Desertification control and management of natural resources.......89
5.2.1.3. Income generating activities development......................................89
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5.2.2. Road transports, mines, and energy sectors .......................................................89

5.3. Priority Action in the Social Sectors ........................................................................90
5.3.1. Education ............................................................................................................90
5.3.2. Priority health and HIV/AIDS actions ...............................................................90
5.3.2.1. Health.................................................................................................90
5.3.2.2. HIV/AIDS .........................................................................................92
5.3.3. Priority actions in the area of access to safe water and sanitation....................92
5.4. Priority Action in Support of Improving Governance and
Building Up Human and Institutional Resources........................................92
5.4.1. Good governance.................................................................................................92
5.4.2. Decentralization ...................................................................................................92
5.4.3. Building up human and institutional resources..................................................93
5.5. Reaching the HIPC Completion Point by End-2002 ...............................................94

VI. Strategy Implementation and Monitoring/Evaluation Arrangements..............................95

6.1. Context........................................................................................................................95
6.2. The Poverty Reduction Information System (SIRP) ...............................................95
6.3. Main Types of Indicators...........................................................................................96
6.3.1. Monetary poverty indicators ...............................................................................96
6.3.2. Indicators of poverty in the standards of living .................................................96
6.3.3. Indicators of poverty of socioeconomic opportunities ......................................96
6.3.4. Intermediary poverty indicators or process indicators ......................................97
6.3.5. Gender indicators .................................................................................................97
6.4. Institutional Arrangements Required by the SIRP ..................................................97
6.4.1. The existing information system.........................................................................97
6.4.1.1. The periodic administrative surveys................................................98
6.4.1.2. Light national surveys ......................................................................98
6.4.2. Strengthening the current system........................................................................98
6.4.2.1. Statistical data requirements with respect to poverty reduction ....98
6.4.2.2. Implementing new institutional arrangements..............................100
6.5. The Institutional Framework for the SRP Implementation...................................100
6.6. SRP Implementation Instruments ...........................................................................101
6.6.1. National and sector programs ........................................................................101
6.6.2. Budget framework ..........................................................................................103
6.6.2.1. Baseline ...........................................................................................104
6.6.2.2. High growth scenario......................................................................104
6.6.2.3. Low growth scenario ......................................................................105
6.7. Periodic Updating of the SRP .................................................................................105

Conclusion...................................................................................................................................107

Bibliography................................................................................................................................108
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Annexes
1. Poverty Maps.....................................................................................................................113
2. Macroeconomic Framework .............................................................................................123
3. Budget reform matrix ........................................................................................................132
4. Quantitative targets for poverty reduction .......................................................................139
5. Core set of indicators for the monitory of the PRS.........................................................140
6. Action plan of the poverty reduction strategy .................................................................145
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LIST OF ACRONYMS AND ABBREVIATIONS

AEP :Drinking Water Supply System

AfDB :African Development Bank
AGHRYMET :Regional Center for Agronomy, Hydrology, and Meteorology
AIDS :Acquired Immunodeficiency Syndrome
APRM :Accelerated Participatory Research Methods
BCG :Bacillus Calmet-Guérin vaccine
CAFER :Road Maintenance Financing Fund
CARE :CARE (International—U.S. NGO)
CFAF :African Financial Community Franc
CNCA :National Agricultural Credit Bank (CNCA)
CUN :Niamey Urban Community
DAEFP :Directorate of Economic and Financial Analysis and Forecasting
DDS :Departmental Directorate of Health
DEP :Directorate of Research and Programming
DHSN :Demographic and Health Survey of Niger
DIEPA :International Drinking Water Supply and Sanitation Decade
DIGOH :Directorate of Water Works Inventories and Management
DPP :Directorate of Programs and Planning
DPT :Diphtheria, Pertussis, Tetanos
DSCN :Directorate of Statistics and National Accounts
ECAE :Agricultural and Livestock Environment Survey
ECOWAS :Economic Community of West African States
EDF :European Development Fund
ENBC :Budgetary Consumption National Survey
ENSI :Informal Sector National Survey
EPCES :Economic and Social Environment Permanent Survey
EU :European Union
EVP :Expanded Vaccination Program
FAO :Food and Agriculture Organization of the United Nations
GDP :Gross domestic product
HDI :Human Development Index
HIMO :Highly Labor-intensive
HIPC :Heavily Indebted Poor Countries
HIV :Human immunodeficiency virus
HPI :Human Poverty Index
ICRISAT :International Crop Research Institute for the Semi-Arid Tropics
IEC :Information-Education-Communication
IFAD :International Fund for Agricultural Development
IMF :International Monetary Fund
IPF :Women’s Participation Index
MD/SPPF/PE :Ministry of Social Development, Population, Advancement of
Women and Child Protection
MDA :Ministry of Agricultural Development
MDR :Ministry of Rural Development
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ME/LCD :Ministry of the Environment and Combating Desertification

MEN :Ministry of National Education
MF/E :Ministry of Finance and Economy
MFP/MA :Ministry of the Civil Service and Government Modernization
MICSS :Multiple Indicator Cluster Sample Survey
MP :Ministry of Planning
MSP :Ministry of Public Health
NGO :Nongovernmental organization
NHDR :National Human Development Report
OHADA :Organization for the Harmonization of Business Law in Africa
OPVN :Niger Office for Food Products
PAC :Community Action Program
PADEM :African Program to Establish a Household Survey Mechanism
PCLCP :Framework Program to Combat Poverty
PEM :Modern Water Points
PM :Prime Minister
PNCD :National Program on Communication for Development
PNEDD :National Environmental Plan for Sustainable Development
PNLCP :National Poverty Reduction Program
POLIO :Poliomyelitis
PRAP :Regional Priority Action Programs
PRS :Poverty Reduction Strategy
PRSP :Poverty Reduction Strategy Paper
PS/PRSP :Permanent Secretariat of the Poverty Reduction Strategy Paper
RINI :Niger Rice
SAP/GC :Early Warning System for Disaster Management
SIGNER :Niger Geographic Information Systems
SNE :National Water Company
SNIS :National Health Information System
SOSA :Operational Strategy for Food Security
SSP :Primary Health Care
STD :Sexually Transmitted Disease
UNCDF :United Nations Capital Development Fund
UNDP :United Nations Development Programme
UNFPA :United Nations Population Fund
UNICEF :United Nations Children’s Fund
USAID :United States Agency for International Development
WAEMU :West African Economic and Monetary Union
WB :World Bank
WSC :World Summit for Children
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List of Tables
1. Sources of household monetary income.........................................................................21
2. Poverty indices and incidence by place of residence.....................................................21
3. Distribution of monetary consumption expenditure by place of residence ..................22
4. Rural water supply in Niger, August 31, 2000...............................................................26
5. Gross enrollment trends by region ..................................................................................31
6. Literacy rates by region and gender................................................................................32
7. Sources of energy for cooking, by place of residence ...................................................33
8. Gender-specific HDI by region, 1996-1999...................................................................38
9. Income trends by gender for Niger’s regions, 1997-1999 .............................................39
10. Trends in GDP structure, 1990-2000 ..............................................................................41
11. Composition of imports ...................................................................................................42
12. Supply and use of resources at current market prices....................................................43
13. Savings and investment financing...................................................................................44
14. Composition of exports....................................................................................................44
15. Principal fiscal balances...................................................................................................45
16. Trends in budget resources..............................................................................................46
17. Trends in government expenditure..................................................................................47
18. Structure of the balance of payments..............................................................................48
19. Debt stock .........................................................................................................................50
20. Solvency and liquidity indicators ....................................................................................50
21. Trends in credit to the economy as a percentage of GDP in
the countries of the subregion ...................................................................................52
22. Baseline allocations........................................................................................................104
23. High case allocations .....................................................................................................104
24. Low case allocations ......................................................................................................105

List of Boxes
1. The participatory tradition in Niger ................................................................................15
2. Public debates on poverty................................................................................................53
3. The civil society in the development and poverty reduction process in Niger ............70
4. Public finance stabilization measures in 2000................................................................75
5. The special program of the President of the Republic .................................................102
6. Public debates on decentralization ................................................................................102
7. Linkage between the macroeconomic framework, the medium-term
expenditure framework and the plan of actions.....................................................106

List of Figures
1. Structure of urban household consumption.......................................................................22
2. Structure of rural household consumption.........................................................................23
3. Comparison of infant and child mortality indicators in the subregion ............................28
4. Trends in vaccination coverage of children aged 12-23 months......................................28
5. Regional disparities.............................................................................................................34
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METHODOLOGICAL NOTE

In undertaking to prepare a comprehensive Poverty Reduction Strategy, the authorities of the

Fifth Republic were fully aware of the importance of this document for Niger’s future.
Having prepared in 2000 an interim paper that was endorsed by its development partners
including the Bretton Woods institutions, the government officially launched work on the full
Poverty Reduction Strategy Paper in February 2001, following a national workshop.

Since March 2001, an institutional mechanism linked to the Executive Office of the Prime
Minister has been established, and the actual work is in the hands of a Permanent Secretariat,
which has designed a working methodology.

This methodology is based essentially on the participatory approach, and covers the
following aspects: preparing a schedule of activities; establishing 11 thematic groups with
specific terms of reference; organizing a series of meetings and discussions with the various
committees of the institutional mechanism; holding meetings with domestic and foreign
partners; and preparing the draft document.

The work schedule has been designed to cover the period from March to December 2001, or
ten months. This deadline is consistent with the government's commitment to finalize the
PRS by the end of 2001, for submission on schedule to the boards of both the International
Monetary Fund and the World Bank. The goal of this approach is to produce a sufficiently
comprehensive document that commands national consensus, and that makes it possible to
determine clear and precise objectives, based on a coherent poverty reduction strategy and
action plans to better target the determinants and causes of poverty.

The thematic groups are comprised of experts in each field, drawn from all levels of their
profession (government, private sector, civil society, universities, rural organizations,
political parties, development partners).

In order to encourage broad participation, the Permanent Secretariat also undertook a series
of information and discussion sessions on the PRS preparation process and its content with
all the concerned stakeholders. This approach involved a series of meetings and public
discussions on poverty, and served to spark lively debate that has helped to enrich the basic
document and make sure that specific local and regional concerns are reflected in the design
of the strategies.

The present document which was submitted to the National Assembly for information and
discussion, was validated in a national workshop (November 26-27, 2001). It was examined
by the cabinet before transmission to the IMF and the World Bank for submission to their
Boards of Directors.

The Permanent Secretariat's approach to preparing the PRS for Niger has allowed to respect
the deadlines and to produce a quality document. This has been made possible in part by
drawing upon existing studies and surveys, while taking advantage of the valuable
participation by society stakeholders.
 - 11 -

In addition, Canada, Belgium, France, the UNDP, and the World Bank supported the
Permanent Secretariat through the financing of some activities, in particular the
communication plan, studies, consultations and workshops.

Time constraints, however, made it impossible to conduct the necessary research and collect
the most up-to-date and reliable data for certain diagnostic studies.

The monitoring and evaluation mechanism also needs to be enhanced, particularly by

determining accurate and relevant indicators of process, results and performance.

Furthermore, the PRS process is continuous and iterative, and the government has no
illusions about completing the work in such a short time (ten months). What it has done is to
establish a strategic framework, which will be updated regularly on an annual basis. This is
particularly important, since the results of the third general census will not be available
before 2002, the first year of PRS implementation. The same is true for the household
expenditure survey and other important surveys (agricultural survey, demographic and
health, supplementary surveys, etc.) planned for the period between 2002 and 2003.
 - 12 -

INTRODUCTION

Niger has suffered a series of social and political upheavals over the last ten years. The
decade was marked by a number of political events causing major disruptions: a national
constitutional conference, four Republics, two coups, two military regimes, and two armed
rebellions in the North and East of the country.

These crises have led to political and institutional instability that has severely hindered the
implementation of reform and economic recovery measures. They have resulted in a decline
in economic output and a deterioration in public finance and in the country's natural
resources. They have also been responsible for shortcomings in the implementation of
structural reforms and development programs. This situation has contributed to the
exacerbation of poverty in urban and rural areas alike.

Widespread poverty

The household consumption survey conducted in 1990 and 1993 under the PADEM 1 shows
that of the 8,299,600 residents of the country at that time, 5,269,300 people, or 63 percent
(nearly two-thirds) are living below the poverty line and 2,824,800, or 34 percent (one-third)
are below the extreme poverty threshold. Poverty is more severe in rural areas than in the
cities.2

No survey of this kind has been conducted since 1993, but it would appear that the situation
has deteriorated sharply since then. Data on mother and child health show the extent of
extreme poverty in which the people of Niger are living.

Successive Human Development Reports (NHDR) have measured poverty in terms of the
Human Poverty Index (HPI)3 for Niger: that index stood at 64.31 percent in 1997,
66.73 percent in 1998 and 62.16 percent in 1999.

A strategy for sustainable human development and combating poverty

In the face of the situation described above, the Government of Niger undertook in the mid-
1990s to make the strategy of sustainable human development and fighting poverty a central
theme of its economic and social development policy.

1
This survey was conducted in two phases: an urban phase (1989-1990) and a rural phase
(1992-1993).
2
In rural areas, 66 percent of the people are poor and 36 percent are extremely poor; in urban
areas (except Niamey) 58 percent are poor and 31 percent are extremely poor.
3
The HPI is a poverty indicator used by the UNDP. See NHDR 4, page 69 [French version].
 - 13 -

Consequently, in 1997 the authorities first drafted and then started to implement a large-scale
Framework Program to Combat Poverty (PCLCP) with the active participation of all the key
development players (government, the private sector, civil society, and development
partners). This program, formulated and validated through a participatory process, received
the support of a significant number of countries and institutions present at the Donors Round
Table held in Geneva in 1998.

Despite the unfavorable political climate in 1999, encouraging results have been recorded in
implementing the PCLCP.

The Poverty Reduction Strategy (PRS)

Implementation of the PCLCP is a step forward, relatively speaking, but the approach used is
not equal to the challenge of significantly reducing poverty in Niger. That challenge will
require an overall, concerted, consensus-based frame of reference for implementing effective
economic and social development strategies.

The Poverty Reduction Strategy (PRS), prepared in the context of the Initiative for the
Heavily Indebted Poor Countries (HIPC), has been designed to meet this challenge. Rather
than replacing framework programs or specific strategies now in place or in the process of
being finalized for each sector, the intention is to integrate those strategies in a coherent
framework of government priorities, so as to constitute the principal set of guidelines for
economic and social policy. At the same time, the sectoral objectives pursued by each
ministry will be confirmed.

Preparation of the PRS involved broad participation by all segments of society. A transparent
process of this kind, indeed, is the only way to ensure that the people of the country will
assert ownership over the entire poverty reduction strategy at all levels.

The PRS has set itself ambitious objectives in terms of economic growth, reducing poverty
and extreme poverty, and making basic social services accessible to the poor. It is based on
four key components: (i) sustainable and sustained economic growth; (ii) development of the
country's productive sectors; (iii) guaranteed access for the poor to basic social services;
(iv) strengthening of human and institutional capacities, promotion of good governance, and
decentralization.

The formulation of the PRS is based on a diagnosis of the poverty situation emerging from
quantitative data as well as a qualitative participatory assessment. This diagnosis has led to
the identification of the PRS’s medium and long-term objectives and to the definition of
adequate strategies to achieve these objectives. Next, priority actions were singled out for the
period 2002-2004. Finally a detailed action plan will be the basis for the implementation of
the PRS. It is noteworthy however, that this action plan is preliminary and dynamic and that
it will be refined or revised as the PRS is being implemented.
 - 14 -

Implementation of the PRS will be monitored and evaluated using a battery of poverty
reduction indicators. This monitoring and evaluation system will involve all stakeholders
committed to reducing poverty in Niger.

Participation, the cornerstone of PRS preparation

The Poverty Reduction Strategy was prepared on the basis of a broad consensus involving all
parties to the process: the government and its specialized and deconcentrated agencies;
assemblies representing all elected bodies; the "Republican Institutions"; the general public,
including members of different social groups and people of both genders and all ages; the
poor; rural organizations; civil society organizations, including the NGO collective, other
NGOs and national and international associations that are not members of the NGO
collective, grassroots community organizations (OCBs), labor unions, farmers’ groups
(farmers and/or herders, and fishermen), etc.; the private sector, represented essentially by
private professional associations; development partners, bilateral and multilateral
representation; multilaterals; political parties; the University (institutions and university
resource persons); religious denominations; and traditional structures.

This concern for ensuring the involvement of all experts and stakeholders led the authorities
to put in place an institutional mechanism embracing all components of society at every
level.

At the national level, there is the Steering Committee, the guiding and directing body,
chaired by the Prime Minister; the Government/Donors Committee (a permanent
framework for dialogue with the country's development partners, chaired by the Ministry of
Finance); the Committee for Domestic Dialogue and Joint Action (the key discussion
group, expanded to include all stakeholders, i.e. government, private sector, political parties,
civil society as a whole, chaired by the Minister of Social Development, Population,
Advancement of Women and Child Protection); the Permanent Secretariat (the working
body for the entire institutional mechanism, responsible for preparing the PRS, coordinated
by the Deputy Chief of Staff to the Prime Minister). At the regional and subregional levels,
there is the Regional Steering Committee with senior representatives of the government and
of civil society, and the Subregional Committee for Domestic Dialogue and Joint Action,
comprising all local stakeholders.

A participation plan was prepared by the Permanent Secretariat, to inform and raise the
awareness of stakeholders and the general public to the various aspects of preparing,
implementing and monitoring the Poverty Reduction Strategy. It was also expected to define
procedures whereby each target group could take part in the process. Thanks to this broad
involvement of different target groups, the resulting Poverty Reduction Strategy Paper enjoys
broad consensus within the country.

The participation plan was underpinned by a communication plan that assured wide publicity
for the entire preparatory process. The network of specialized communicators that was set up
in June 2001 for this purpose includes the public and private media, right down to the
 - 15 -

community level. Concrete implementation of the participation plan has involved a series of
meetings and workshops at the national, regional and subregional levels.

A discussion forum on the role of NGOs in the PRS was held in Tahoua from June 18 to 21,
2001. Discussion sessions on poverty were organized by the labor unions, the Abdou
Moumouni University and the media, with the assistance of the Permanent Secretariat.
Public debates on poverty were organized throughout the country from August 6 to 13, 2001.
This entire approach was aimed at involving the most disadvantaged groups in the process of
preparing the PRS.

Box 1. The Participatory Tradition in Niger

In 1962, on the eve of independence, the Government of Niger declared its intention to pursue a
participatory development policy that would place priority on people, working through rural
communities. The instrument used for this purpose was the "Mobilization for Development” agency
(Service d’Animation au Développement) created in 1963 with the following objectives: to institute
dialogue between government and the people; to organize the people; and to promote participation in
development.

"Mobilization for Development" worked in close cooperation with the literacy education services of
the Niger Cooperative Credit Union (UNCC) and the Niger Radio Club Association (ARCN), to
inform, raise the awareness, train and empower people to work for development in the collective
interest.

Messages were transmitted through a self-standing network of facilitators. Villagers were invited to
express their needs and to find answers to them through a consensus-building process that would take
account of their own realities and the local environment. This exercise involved three stages:
initiation, discussion and programming

The military regime that took power in 1974 opted for a "development society," basing its slogan on
the three pillars of consultation, joint action and participation. It relied essentially on the traditional
system of youth organizations, the Samaria, and on rural cooperatives. This approach was justified by
the high proportion of youth in the population—particularly in the rural areas. It represented a
"bottom-up" approach to development, using structures for which the Samaria and the cooperatives
formed the backbone, together with other components of society, namely women, and socio-
professional associations.

What made the system peculiar was that it was placed under the responsibility of non-elected
representatives at various levels. Whether in the communes, the districts, or the provinces, designated
authorities systematically presided over the institutions, thus influencing the decision-making process.
Following the Sovereign National Conference in 1991, a civil society came into being, which over
time has become increasingly involved in the management of public affairs, notably through actions
aimed at increasing the level of awareness and ownership of grassroots communities.

At each stage of implementing the participation plan, participants were interviewed and
asked for their opinions, advice, information and comments. In addition, procedures were
 - 16 -

established for assessing this information and providing feedback to participants, so they
would know that their concerns were being taken into account.

Preparation of the PRS coincided with that of the ninth EDF (European Development Fund)
and the Common Country Assessment under the U.N. Development Assistance Framework
(CCA/UNDAF). This allowed for fruitful exchanges of views with these agencies, and in
particular with the United Nations Development Program, which provided the thematic
groups with very useful documentation.

The participatory process will also be used to implement, monitor and evaluate the Poverty
Reduction Strategy. Broad stakeholder involvement will guarantee greater transparency in
decision-making and empowerment of the players, which will help to instill in the people a
sense of ownership of the program.
 - 17 -

PART I:

DIAGNOSIS OF POVERTY IN NIGER

 - 18 -

I. CHARACTERISTICS OF POVERTY IN NIGER

1.1. Definition and Various Perceptions of Poverty

1.1.1. Definition of poverty

Because poverty in Niger is such a complex and multidimensional phenomenon, it is very

difficult to assign it a single, fixed definition. In light of the current state of affairs (diagnosis
of thematic groups, reports of international institutions, people’s perceptions), it can be
defined as a deterioration in people’s purchasing power and living conditions resulting
mainly from: a lack of economic growth; permanent structural imbalances between the
growth of GDP which is generally weak, and the growth of the population;
underdevelopment of sectors and factors of production, in particular, barriers to rural
development, which is the engine of the economy; degradation of natural resources and
modest-to-declining credit to the economy; limited access of the majority of the population to
basic social services; weak human, institutional and governance capacity (these weaknesses
are much more pronounced at the level of grassroots rural and urban local communities).
Poverty is also reflected in the lack of sufficient income (monetary poverty) to cover the bare
necessities of food security and nutrition, education, health, and access to basic
infrastructure. It is also reflected in lack of opportunity to participate in social and economic
life. In the end, poverty is a condition of individual or collective destitution in which human
beings are unable to meet their essential and vital needs.

These manifestations of poverty become clearer and more comprehensive with the addition
of people's perception of their poverty status. These perceptions may differ sharply from
statistical measurements or may clarify them in some cases. A qualitative survey 4 conducted
in 2001 revealed how people themselves view poverty.

1.1.2. People's perception of poverty

Overall, people define poverty as the opposite of well-being, which they take to mean
sufficiency of material resources, opportunity, and social and psychological balance. Poverty
is intimately linked to "ill-being", which is reflected through: "…lack of food, lack of surplus
supplies, resources, lack of influence,…,nothing is certain; everything is random…". As
people see it, poverty has its causes and makes itself felt in many ways.

4
This was a qualitative survey on people's perception of poverty in five villages, two of them
in the district of Mayahi (Maradi) and 3 in the area of Bankilaré (Tillaberi). A total of
1363 people were covered, (893 through individual interviews and 470 through focus
groups). This survey, conducted in June 2001, represented a pilot project: a national survey
was scheduled for August-September 2001.
 - 19 -

In the poverty analysis, 54 percent of the people interviewed attempted to define poverty.
Yet a single person might refer to several attributes in defining poverty (dependency,
marginalization, want, restrictions on rights and freedoms, incapacity).

Thus, 40 percent mentioned dependence in their definition: “…a poor person always has to
seek out others…;” “…a poor person is one who always works for somebody else….”

Thirty-seven percent referred to marginalization in defining poverty: “…a poor person is

one who is alone…,” “…with no support…;” “…a person who does not feel involved in
anything…;” “…someone who is never consulted….”

Thirty-six percent of the people defined poverty as scarcity: nothing to eat; lack of means to
meet clothing and financial needs; lack of food, livestock, and money; having nothing to sell.

Twenty-six percent associated poverty with a restriction on rights and freedoms, stating that
“…a poor person is someone who does not have the right to speak out….” They believe that
“…a poor person is someone who will never win a case or litigation against someone
else….”

Twenty-one percent of the interviewees likened poverty to incapacity: the incapacity to take
decisions; the incapacity to feed and clothe oneself; the incapacity to act on one’s own
initiative.

In some instances, people tried to represent their opinions in illustrations that would support
their definitions of poverty. Poverty was thus represented as a shed with a ragged roof
(symbolizing the lack of clothing), bolstered by two pillars, one being a single CFAF 10 coin
(lack of money) and the other a virtually empty sack of grain (lack of food); the shadow of
the shed is black (making it easy to overlook); a man caught in the shadow does not know
which saint to pray to and asks himself a thousand questions. “…Heaven help anyone who
lets himself get caught in the shadow of that shed,…” some farmers conclude.

1.1.3. Knowledge of poverty in Niger

Over the last ten years, a number of studies and surveys have been conducted,5 representing a
significant data collection effort. Yet the information system still has shortcomings in terms

5
These include the National Budget-Consumption Survey (ENBC 89/93), the 1994 Poverty
Profile, the Farming and Livestock Survey (ECAE, 1993), the Permanent Survey of
Economic and Social Conditions (EPCES 1994 and 1995), the National Survey of the
Informal Sector (ENSI, 1995), the Multiple Indicators Survey (1996 and 2000), the
Household Consumption Survey in Niamey, 1996; the Demographic and Health Surveys
(1992 and 1998), surveys to evaluate the security of household living conditions in different
regions (between 1997 and 2000), the General Population and Housing Survey of 2001 and a
qualitative survey on people's perception of poverty in 2001.
 - 20 -

of monitoring poverty and household living conditions in general, because much of the data,
and in particular those from the 89/93 National Budget-Consumption Survey (ENBC), is out
of date.

Moreover, while Niger has survey data covering households for the period 1989-2001, efforts
to analyze trends in living conditions have been constrained by lack of comparability among
the available sources of data. The surveys differ in their design and methodology, and it is
not always possible to estimate incomes over time. Some of the surveys provide national
coverage, while others are limited to rural or urban areas; some focus on demographic and
social aspects, while others concentrate on the dynamics of the informal sector and on living
conditions, for example.

1.2. The Poverty Profile

1.2.1. Monetary poverty

1.2.1.1. Sources of income

The household livelihood security (HHLS) 6 surveys conducted by Care International between
1997 and 2000 provide information on the structure, level and distribution of incomes by
type of activity and agro-ecological zone. Unfortunately, the surveys do not cover all regions,
and the analytical methods used are not always the same. Moreover, they do not make it
possible to identify place of residence (urban or rural).

Generally speaking, the HHLS surveys show that the principal sources of household income
in Niger are still the sale of farm produce and animals, other income generating activities,
migrants' remittances and the sale of livestock byproducts. Households engage in these
activities in all regions of the country, as the following table shows.

The principal income generating activities found in the six regions are: small business (sale
of condiments, fabric and wrappers, manufactured goods, etc.); agricultural paid labor;
processing agro-pastoral products (food and beverages, pressing peanut oil, manufacturing
local beer, etc.); production of cords and plaits; marabout and fetichist services; sale of wood
and coal; hairdressing and braiding; husking and milling grain; construction; transportation
(carts). According to the results of these surveys, the principal categories of activities
involved in the formation of the income of households in Niger are: sales of plant and animal
products, and other income generating activities.

6
French: Sécurité des conditions de vie des ménages.
 - 21 -

Table 1. Sources of household monetary income

Zone Agricultural Animals Income- Livestock Rented fields Contributions Migrants

produce generating production
activities
Agadez 4.4 46.2 39.6 2.7 - 2.8 4.3
Diffa 39.9 25.5 25.6 4.4 0.1 1 3.5
Maradi 43.4 18.5 13.1 2.5 7.4 7.2 7.9
Tahoua 38.1 24.4 22.1 3.3 - 1.8 10.3
Tillaberi 45.6 18.8 22.1 1.4 - 1 11.1

Source: Based on the Care International HHLS surveys

1.2.1.2. Income

Based on the poverty profile prepared in 1994, the urban poverty line was set at
CFAF 75,000. For rural areas, it was set at two-thirds of the urban level, or CFAF 50,000, in
order to reflect the price differences for such factors as caloric unit value. The extreme
poverty thresholds are set at roughly two-thirds of the poverty line (or CFAF 50,000 for
urban areas, and CFAF 35,000 for rural areas). According to these cutoffs, 63 percent of the
population is poor, and 34 percent is extremely poor.

Poverty is primarily a rural phenomenon, and 86 percent of poor people (36 percent of whom
are considered extremely poor) live in the countryside. The urban poverty levels are slightly
lower (52 percent and 26 percent respectively). The incidence (P0), depth (P1) and severity
(P2) of poverty follow the urban/rural split, in the sense that they are higher in rural than in
urban areas, as can be seen in the following table:

Table 2. Poverty indices and incidence by place of residence

Percentage Poverty indices Share of Number of

of the national poor people
Population poverty
P0
P0 P1 P2
Urban 16.60 0.52 0.181 0.084 13.65 714,000
Niamey 5.94 0.42 0.134 0.060 3.95 207,000
Other Cities 10.65 0.58 0.207 0.098 9.70 507,000
Rural 83.40 0.66 0.225 0.104 86.35 4,514,000
Niger 100 0.63 0.217 0.101 100 5,228,000
Source: ENBC 1993

From the regional viewpoint, three departments, namely Tillaberi (80 percent), Dosso (76
percent), and Maradi (65 percent) account for two-thirds of national poverty.

1.2.1.3. Household consumption

While the figures are out of date, an analysis of the structure of household consumption
reveals the priorities of families in Niger. According to the survey, the structure of
household consumption is similar in urban and rural areas. As the following graphs show,
 - 22 -

food is by far the most significant item of expenditure, regardless of place of residence. Food
accounts for 55.5 percent of total expenditure in the cities relative to housing, transportation
and clothing, at the top of the list of household consumption items

Table 3. Distribution of monetary consumption expenditure by place of residence

Urban Rural
Food 55.5 46.9
Housing 15.1 11.1
Clothing 10.9 11.5
Health and Hygiene 3.0 4.6
Transportation 12.7 9.7
Education 0.9 0.3
Tobacco and Leisure 0.9 3.4
Miscellaneous 1.0 12.5
Total monetary consumption 100.0 100.0

Figure 1. Structure of urban household consumption

Tobacco and
leisure
Education Miscellaneous
1%
Transportation 1% 1%
13%
Food
55%
Health and hygiene
3%

Clothing
11%

Shelter
15%

Source: Ministry of Planning, ENBC 1989-1990 and 1992-1993

 - 23 -

Figure 2. Structure of rural household consumption

Miscellaneous
13%
Tobacco and leisure
3%
Food
46%
Education
0%

Transportation
10%

Health and hygiene

5%
Clothing
Shelter
12%
11%

Source: Ministry of Planning, ENBC 1989-1990 and 1992-1993

Household consumption can also be analyzed from data provided by the household
consumption survey for the city of Niamey in 1996, and the multiple indicators survey.

The 1996 survey shows consistency in the ranking of urban household expenditures, and
changes in their structure. The downward trend in food spending, in circumstances where the
minimum caloric requirement is not met, reflects a loss in purchasing power that could affect
people's well-being.

The multiple-indicators survey, with its participatory aspect, clearly confirms the rising trend
of household expenditure between 1995 and 1996. An increase in overall spending can be
observed in both urban and rural areas, regardless of the region. Nearly 56 percent of rural
households declared that their spending increased during that period.

This figure is even higher in urban areas (60 percent), where inflationary pressures are more
acute and the channels for transmitting macroeconomic shocks to the meso- and
microeconomic levels are more direct. Yet price effects (inflation) on standards of living
must be interpreted carefully. The rate of change in the incidence of poverty will also
depend, in rural areas, on the share of tradable goods in the household shopping basket.

The agricultural survey, which constitutes the basis for calculating changes in rural poverty,
indicates that farming output has declined steadily since 1992. At the same time, livestock
production, which accounted for more than 35 percent of agricultural GDP, has been
declining at nearly 2 percent a year.

As indicated above, agricultural production declined following low rainfall and the resulting
reduction in cultivated acreage and crop yield. The production of millet and sorghum, which
are the main components of the household basket in Niger, declined by more than 31 percent
and 26 percent, respectively, between 1994 and 1997. Millet production dropped from
 - 24 -

1,968,136 to 1,351,868 metric tons and sorghum production from 393,630 to 298,662 metric
tons during that period.7

1.2.2. Poverty in living conditions

This section examines those implications of poverty that are objectively perceptible, and
presents the induced effects listed and described by people themselves during public
consultations and the participatory survey. The issues addressed are: malnutrition, access to
drinking water, health and education, and substandard housing.

1.2.2.1. Malnutrition

The nutrition situation has deteriorated steadily since 1992. The percentage of children
exhibiting stunted growth rose from 32 percent in 1992 to 40 percent in 2000, while the
percentage of underweight children rose from 36 percent in 1992 to 40 percent in 2000. The
DHSN 1998 and MICS 2000 surveys show that malnutrition among children under five years
remains a major problem in Niger.

Nationwide, about 40 percent of children are underweight and undersized for their age. The
rate is 41 percent for rural children; in urban areas, 30 percent of children are underweight,
and 27 percent show stunted growth.

Child malnutrition is most severe in the regions of Diffa, Zinder and Maradi, where
underweight rates are 49 percent, 40 percent and 45 percent, respectively, and stunted growth
rates are 42 percent, 47 percent and 48 percent. Low weight and stunted growth afflict 41
percent of children living in poor households, and slightly more than 32 percent of those in
wealthy households.

1.2.2.2. Access to drinking water and sanitation

1.2.2.2.1. The status of water resources

Niger has considerable potential in terms of its water resources, but they are highly variable
over time and from region to region. Given the difficulties in mobilizing these resources, and
maintenance problems with the facilities that are in place, needs are far from being covered,
and productive capital is deteriorating at an accelerating pace. Average annual rainfall varies
from north to south, from less than 100 mm in the Sahara zone to 700 mm in the Sahel-Sudan
zone.
Surface waters, nearly all of which depend on the Niger River and its right bank tributaries,
amount to about 30 billion cubic meters per year, and less than 1 percent of this is exploited.
Because it is difficult to manage rivers that cross international boundaries, the water potential

7
These data are produced by the Ministry of Agriculture and Livestock: Production Analysis
and Statistical Coordination Unit.
 - 25 -

consists essentially of ponds and artificial reservoirs, numbering more than 1000, of which
175 are permanent. Underground waters represent 2.5 billion cubic meters renewable, and
2.0 billion nonrenewable. It is very difficult to take advantage of these reserves, however,
because the water table lies at such a great depth. Underground waters are generally of good
quality, but the annual replenishment rate is low, and sustainable flows are less than the size
of the reserves would suggest. Throughout the country, underground waters represent the
principal (and often the only) water resource that can be used continuously.

Integrated management is needed, given the limitations on the quality and quantity of the
resource, and also the gaps in the institutional and legal framework governing it. This is
clearly a major problem that will have to be addressed by any poverty reduction strategy.

1.2.2.2.2. The water and sanitation sector

Statistics from the Department of Waterworks Inventory and Management (DIGOH), dated
August 31, 2000, indicates that barely one-half the country's population has access to
drinking water. Moreover, national coverage has declined steadily in recent years. From
54 percent in the early 1990s, it had fallen to 51 percent in 1998. There are great
interregional disparities. The departments of Zinder and Tillaberi, where the coverage rate of
modern water points (PEM) is 56 percent and 51 percent, are above the national average; the
most poorly provided regions are Diffa and Tahoua, where drinking-water coverage is less
than 45 percent.

1.2.2.2.3. The rural water supply subsector

Nationwide, there are 18,248 modern water points (open wells plus drilled wells with pumps)
and 306 mini-AEPs: the coverage of drinking water needs in rural areas is 52 percent. These
figures must be regarded as theoretical, however, and when pump breakdowns are taken into
account the real coverage rate is likely no more than 40 percent. The overall figure also
masks significant disparities between and within regions. Regional figures may differ by a
factor of 1 or 2, and more than 3 for subregions.

Virtually no rural dwellings are equipped with a private faucet, while the figure for urban
areas is 35 percent. Water distribution facilities do little for health in rural areas, because of
lack of an integrated approach combining water supply with sanitation and health education.

The lowest water supply coverage rates for people and livestock are to be found in the central
zone, namely the farming and herding region. The major problems with this subsector are in
the harnessing of water resources and the use of pastureland, poor distribution of waterworks,
overgrazing near major pumping stations, and socioeconomic problems, such as ownership
of waterworks and conflicts between herders and farmers.
 - 26 -

Table 4. Rural water supply in Niger, August 31, 2000

Department Existing PEM needs PEM MINI-AEP Mini-AEP Mini-AEP

PEMs coverage (%) needs coverage (%)
Agadez 380 794 48 4 31 12.9
Diffa 716 1,601 44.7 10 23 43.48
Dosso 2,965 5,992 49.49 46 118 43.8
Maradi 3,387 6,853 49.42 28 159 17.61
Tahoua 2,890 5,272 40.8 82 420 20.48
Tillaberi 3,747 7,372 51.23 66 232 28.45
Zinder 4,163 7,572 56 67 189 35.45
Niger 18,248 35,456 52 306 1172 26.11

Source: National HDR 2000

1.2.2.2.4. The urban water supply subsector

Fifty-one urban centers are currently equipped with a drinking water supply system. Total
annual consumption is 25 million cubic meters, or an average of 38 liters per person, except
in Niamey, where consumption is 58 liters per capita. The SNE estimated the needs coverage
rate at 70 percent in 1997. 8 In secondary urban centers, the proportion of households
dependent on public water points is much higher than in Niamey (87 percent versus
26 percent) and fewer people buy water from vendors (3 percent). Currently, water shortages
are a regular occurrence in Agadez, Tillaberi, Zinder and to a lesser extent in Diffa, because
of the lack of available supplies and the condition of the infrastructure.

There is still work to be done in the area of resource management, drinking water supply, and
water service to urban centers. A great number of large villages with over 2,000 inhabitants,
equipped with rudimentary drinking water supply networks, aspire to becoming a part of the
urban water supply subsector.

One of the major problems in using existing facilities is the age of the equipment and its
limited production capacity; maintenance and management of this infrastructure is also
inadequate.

1.2.2.2.5. Rural and urban sanitation

This is grossly inadequate, thanks to accelerating urban growth and the depletion of
municipal resources. These difficulties mean that enormous quantities of waste are produced.
Most neighborhoods have no sewage system, and accumulated household waste represents a
vector for many diseases. Factories and other unhealthy installations in urban areas also
constitute sources of pollution of surface and underground waters.

8
It is worth noting that SNE was privatized and split into two companies: an investment
company and an operating company.
 - 27 -

A recent World Bank survey showed that only one-third of Niamey's inhabitants are satisfied
with their sanitary facilities. Nearly 90 percent of them use conventional latrines and only
8 percent have access to flush toilets. The rural sanitation situation is much worse. The
sewage treatment rate was barely 5 percent in 1996, while additional efforts regarding
laterization are just beginning in a few major rural centers. Sanitary conditions for rural
dwellers have been steadily deteriorating, with the development of disease vectors in swamps
and irrigation facilities and the deterioration of drinking water quality as a result of improper
transportation and conservation. The number of villages requiring sewage services is
estimated at close to 30,000 today.

In light of this situation, the water and sewage sector must be regarded as severely
underdeveloped, despite the efforts that were made between 1981 and 1990, the International
Drinking Water Supply and Sanitation Decade (IDWSSD). In reality, however, the
IDWSSD, which targeted the preparation of sanitation guidelines for the departmental
capitals and sanitation plans for other cities only produced plans for the Niamey Urban
Community and for the Zinder and Maradi communes. Furthermore, some sanitation
infrastructures that could have survived are often outdated and poorly maintained.

1.2.2.3. The health situation

The state of public health remains precarious, despite the efforts that have been made in this
area, as is clear from an analysis of the main health indicators, the condition of health
infrastructure, the functioning of services and the behavior of households in terms of their
health. A further problem relates to water quality control in rural areas, where waterborne
epidemics are resurgent, particularly among young children, as is the case in Tibiri, Nadara
and Koundoumaoua.

1.2.2.3.1. Child mortality, ages 0-5 years

The MICS survey shows that Niger has very high infant and child mortality rates, at 126 and
280 per mil, respectively, in 2000. These are in fact the highest rates in the subregion. They
are attributable to several diseases, including malaria, various forms of diarrhea, acute
respiratory infections, measles, tetanus, yellow fever, diphtheria and chickenpox.

Mortality rates for children under five years show enormous discrepancies between urban
and rural areas, and between different regions of the country. The probability that a child will
die before its fifth birthday is higher among rural children (293 per mil) than among urban
children (168 per mil), and is highest in areas where vaccination coverage is most limited.
 - 28 -

Figure 3. Comparison of infant and child mortality indicators in the subregion.

300

Per 1,000 births 250

200

150

100

50

0
Burkina Faso Guinea Mali Niger

Infant mortality Under-five mortality

Source: WBDI

1.2.2.3.2. Vaccination coverage

Vaccination coverage has a major impact on the infant and child mortality rate. Even though
the DHSN and the MICS are not strictly comparable, they show that in rural areas where the
infant and child mortality rate is high, vaccination coverage is at a low level—15 percent. In
urban areas where mortality is relatively low, vaccination coverage is 61 percent. The highest
infant and child mortality rates are in the regions where vaccination coverage is lowest,
namely Zinder (10 percent) and Maradi (14 percent).

Figure 4: Changes in vaccination coverage of children aged 12-23 months

70

60

50
Percentage

40

30

20

10

0
EDSN 1992 EDSN 1998 MICS 2000

Fully immunized children Children without any immunization

 - 29 -

Vaccination coverage and the percentage of children not inoculated have been inversely
proportionate in recent years. In 2000, they changed from 17 percent to 22 percent and from
59 percent to 45 percent, respectively.

1.2.2.3.3. Maternal health

Maternal health is also a great concern in Niger. The MICS-2000 survey shows that only
36 percent of women have received prenatal care 9 in rural areas, compared to 89 percent in
Niamey. In terms of asset wealth quintiles, only 29 percent of women in the lowest group
have received prenatal care, compared to 77 percent among the wealthiest segment of the
population. Niger consequently has one of the highest maternal mortality rates in the world
(700 deaths per 100,000 live births).

Only nine percent of rural women are assisted at childbirth by qualified personnel, compared
to 65 percent in urban areas. The participatory survey highlighted the importance that people
attach to childbirth services: more than 55 percent of those surveyed felt that the numbers of
nurses and midwives were grossly inadequate

1.2.2.3.4. HIV/AIDS

Health Ministry data show that, from the first notification in 1987 until 2000, health facilities
recorded 5,626 cases. In contrast, the WHO estimated the number of adults and children
infected by HIV at 165,000, and the number of AIDS orphans at 20,000, as early as 1997.
The most severely affected age groups are 19–24 years and 29–45 years. Women seem to be
more severely affected by the pandemic (SNIS): the male/female ratio among the infected
population is 0.85: for the 15–19 years age group the ratio is 0.25, or four girls for every boy
infected.

According to the United Nations AIDS office, the infection rate in Niger stood at 1.4 percent
at the end of 1999. The real rate would seem to be even higher, at close to 4 percent.
Moreover, a comparative analysis of recent data shows that the HIV/AIDS situation is
evolving rapidly in Niger. From 293 reported cases in 1987–90, the count was 4,584 reported
in 1999, including 474 cases of full-blown AIDS. Some sources say that the number of
infections has been doubling each year in certain regions of the country. In 1999 alone, the
number of new cases reported nationwide rose to 940 from 425 in 1998 (SNIS data).
According to the MICS-2000 survey, 74 percent of women have heard of AIDS but only
26 percent are familiar with protective methods. In terms of knowledge of HIV/AIDS and
protective measures, there is an apparent discrepancy between the poorest women
(69 percent and 37 percent) and the wealthiest (91 percent and 58 percent).

In fact, the infection is spreading ever further in the country, because of several factors,
including harmful practices (traditional and modern); denial and silence; poverty, which

9
Prenatal care provided by a physician, a nurse or midwife, or a trained birth assistant.
 - 30 -

encourages risky sexual behavior: sexual relations with multiple and often secret partners;
internal and external migration; prostitution, particularly clandestine; ignorance and
illiteracy.

1.2.2.3.5. The availability of health services

Both the coverage and the quality of health services have improved significantly in recent
years, thanks to the government’s efforts. Nevertheless, coverage remains inadequate (at
48 percent) and masks significant disparities between regions, within regions, and between
urban and rural areas.

There is a persistent shortage of health personnel (one doctor for every 32,432 people, one
nurse for every 4,488, one midwife for every 6,393 women of childbearing age). Particularly
serious is the lack of specialists and of facilities and infrastructure, which greatly affects the
availability and quality of service. Yet it has been noted that even when health services are
available, they are not always put to effective use, because of prevailing economic, social and
cultural factors.

The qualitative survey confirms this assessment. Most of the people interviewed recognize
that the availability of integrated health centers (CSI) and services has contributed greatly to
improving their health situation. Yet 51 percent complained of the high cost of drugs, the
unhelpful attitude of care personnel, and the lack of adequate medical evacuation means. An
analysis of financing for the health system shows that resources allocated to it are inadequate.
Between 1994 and 2000, on average, the government earmarked only 6 percent of its budget
for health, far below the 10 percent recommended by the World Health Organization.

To address these numerous health challenges, the government intends to revise its sectoral
health policy in light of the poverty reduction strategy.

1.2.2.4. Education

1.2.2.4.1. Enrollment

The gross school enrollment rate in 2000 is estimated by national education statistics at
34 percent and by the MICS-2000 survey at 38 percent. This is one of the lowest rates in the
region. It rose relatively steadily between 1960 and 1980, but in the early 1980s it began to
decline. Official data show that girls account for only 40 percent of primary school
enrollment, representing a rate of 27 percent compared to the national average of 34 percent.
The DHSN-1998 and MICS-2000 surveys confirm this situation. The enrollment rate has
been estimated, according to these two sources, at 36 percent in 1998 and 45 percent in 2000
for boys, and at 25 percent in 1998 and 30 percent in 2000 for girls.

There are sharp disparities from one region to the next, and between rural and urban areas.
Education ministry statistics show that the urban community of Niamey had the highest
enrollment rate in the country in 1999/2000, at 99 percent. In that same year, the department
of Zinder had the lowest rate, at 24 percent.
 - 31 -

The disparity between urban and rural areas is also significant: 52 percent of children living
in the cities are attending school, compared to only 28 percent in rural areas. This
discrepancy is confirmed by data from the DHSN-98 and the MICS-2000. The DHSN
estimates the urban gross enrollment rate at 71 percent, versus 20 percent in rural areas,
while the figures from the MICS-2000 are 89 percent and 28 percent respectively. An
analysis of the MICS-2000 data betrays not only a significant gap in enrollment rates
between the poorest and richest quintiles, but also a great disparity between genders in those
two population categories. The gross enrollment rate is 21 percent for the poorest quintile,
compared to 78 percent, or four times higher, for the wealthiest quintile.

Standard of living seems to influence enrollment for girls. In fact, the poorest boys are twice
as likely to go to school as the poorest girls, while the enrollment rates for boys and girls are
equivalent among the richest families. Social and cultural realities thus conspire with
economic conditions to hold back schooling for girls.

With one of the highest demographic growth rates in the world (3.3 percent), Niger’s
economic situation has stagnated and even regressed. The country's financial capacity is very
weak, and its education needs are pressing. Niger is one of the few developing countries
where education is financed almost entirely by the government. The enrollment rate at all
levels of education in Niger is very low: it stood at 15.41 percent in 1998, and remains
roughly at that level today. This rate masks significant disparities between genders, regions,
zones and levels of instruction.

Table 5. Gross enrollment trends by region (percent)

Regions 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000

Agadez 38.5 38.8 41.2 42.4 43.2
Diffa 27.7 28.2 29.1 29.8 30.7
Dosso 27.9 28.82 29.7 33.1 36.8
Maradi 24.3 25.2 25.3 28.3 30.7
Niamey 99.5 100.7 100.0 99.9 99.9
Tahoua 26.5 27.8 27.5 29.0 29.5
Tillaberi 22.9 23.5 23.7 25.5 28.9
Zinder 21.2 21.4 21.5 22.5 23.6
Urban 52.9 52.4 51.4 51.5 50.9
Rural 21.6 22.3 22.8 25.1 27.8
All zones 29.5 30.1 30.3 32.2 34.1

Source: Education Statistics Yearbook DEP/MEN/2000

This weakness in enrollment rates at all levels, and the various inequalities that it conceals,
provide ample confirmation of the country's educational deficit and its state of structural
poverty. An examination of the main indicators for primary education would be useful to
improve understanding of this state of affairs, which represents a serious obstacle to the
country's development prospects.
 - 32 -

The participatory survey reveals that education is a priority for poor people. As they see it,
schooling is not only a means of combating ignorance but also of making the village more
representative. However, people are not very confident in terms of the schools' ability to
improve their living conditions. In fact, most people interviewed felt that "children who start
school do not finish it, and when they do, their chances of finding a job are very slim".

1.2.2.4.2. Adult literacy

The national literacy rate is 19.9 percent, and has risen slightly since 1996. Fifty-one percent
of the urban population is literate, compared to only 14 percent of rural dwellers. Fewer than
one adult in 5, and one woman in 10, knows how to read and write. Women are much less
literate than men. The respective rates are 12 percent and 22 percent. This situation is even
more marked for women in rural areas, where only one woman in 20 is literate. Comparing
literacy rates with standard of living shows that the pattern is similar to that for school
enrollment. The richest 20 percent have literacy rates more than four times as high as those
for the poorest quintile.

As the following table shows, there are great discrepancies between departments and
between genders. The Urban Community of Niamey and the Department of Agadez rank
highest, with rates of 59.1 percent and 46 percent. The lowest rates are to be found in the
departments of Tahoua (11.5 percent) and Dosso (15.6 percent).

Table 6. Literacy rates by region and gender

Literacy rate 1996 Literacy rate 1999

Male Female All Male Female All
Agadez 41.5 20.5 30.9 59.7 33.0 46.0
Diffa 19.3 11.1 14.9 34.7 7.4 20.2
Dosso 14.8 8.8 11.7 24.4 7.7 15.6
Maradi 21.2 7.1 13.8 29.2 7.5 17.7
Tahoua 17.5 8.3 12.3 17.5 6.3 11.5
Tillaberi 14.2 11.5 12.8 25.3 7.8 16.3
Zinder 17.4 9.0 13.0 34.7 7.4 20.2
Niamey 67.3 53.2 60.1 69.3 49.2 59.1
Niger 21.5 12.1 16.6 30.4 10.6 19.9

Sources: MICS 1, MICS 2 and National HDR 2000.

In comparison to 1996, literacy in Niger has shown a generally upward trend. Apart from the
department of Tahoua and the Urban Community of Niamey, which have slid backwards, the
other regions have recorded significant increases in literacy levels for their people. Female
illiteracy remains a major problem in Niger, as the data in the table below show, and there
are broad gaps for this indicator between men and women. Nationally, the literacy rate for
women is 10.6 percent. This is far below the rate for men, which was 30.4 percent in the
same year. Generally speaking, the gap between men and women exceeds 11 percent for the
country as a whole.
 - 33 -

1.2.2.5. Habitat

Habitat conditions are measured in terms of the quality and comfort of dwellings 10. The
MICS-2000 survey indicates that 95 percent of households use firewood as the principal
source of energy for cooking, regardless of their residential setting or the region. Firewood
and its derivatives are used by more than 92 percent of urban households and 96 percent of
rural households, while oil and gas are very little used (1 percent to 5 percent, depending on
the urban area in question). The National Human Development Report for Niger, 1999,
estimates that national demand for firewood will exceed supply by a factor of 5 in 2010. If
no steps are taken before 2010, the deficit could be more than 3 million tons.

In terms of sewage disposal, the MICS 2000 survey shows that only 18 percent of households
have a proper system for handling human waste. This percentage conceals important
disparities depending on place and region of residence. Seventy-five percent of urban
households have a proper sewage system, compared to only 7 percent in rural areas.
Moreover, 84 percent of families in Niamey have such services, while the rate for other
regions varies between 6 percent and 10 percent. This coverage is inadequate, given the
known links between sanitation and waterborne diseases. Generally speaking, more than
80 percent of the country's households have no toilets. This percentage is higher in rural
areas (94.1 percent) than in the cities (20 percent). Only 2.6 percent of urban households
have a private toilet. In rural areas, the most common facility is the improved latrine, with
which 52 percent of households are equipped.

Table 7. Sources of energy for cooking, by place of residence

Electricity Gas Oil Charcoal Wood Other Total

Niamey U.C. 4.3 1.4 3.8 85.6 4.8 100
Other Cities 1.6 1.3 0.7 1.8 91.5 2.9 100
Urban 1.1 2.1 1.1 2.4 89.6 3.5 100
Rural 0.1 0.1 0.1 0.2 95.9 3.2 100
All Niger 0.2 0.4 0.2 0.6 95.0 3.2 100

Source: MICS 2000

1.2.3. Regional disparities

The following graph shows that the Urban Community of Niamey stands clearly apart from
other regions in Niger. Among those other regions, disparities in terms of school enrollment,
health and poverty indicators differ relatively little. The Zinder region has the greatest deficit
in terms of its people's poverty and vulnerability, according to infant mortality and child
malnutrition indicators. At the regional level, the greatest disparities relate to infant and
child mortality indicators.

10
Walls, floor, roof, wastewater drainage system, type of toilet, electricity, type of energy
used for cooking.
 - 34 -

Figure 5. Regional disparities

Zinder Tillabéri Tahoua Diffa Maradi Dosso

Agadez Niamey

Primary Gross Enrollment

1.00

0.80

0.60

0.40

0.20

0.00
Infant mortality Water
-0.20

-0.40

-0.60

Literacy Malnutrition

Source: Graph based on data from MEN and MSP.

1.3. Other Causes of Poverty

A number of other factors contribute to worsening poverty. These will be analyzed below in
light of the views expressed by public and in terms of vulnerability.

1.3.1. People’s Perceptions of the Causes of Poverty

The causes of poverty most frequently cited by people in the June 2001 qualitative survey
were the greater number of mouths to feed, successive droughts, poor harvests, declining
production capacity, isolation, significantly less solidarity and mutual assistance, the shortage
of capital and income, and out-migration.

Population growth was cited by people as a factor contributing to the pauperization of rural
communities. To clarify, the popular thinking is that “…if people are poor…it is because of
the increase in the population….” Others indicated that “…poverty is linked to the
overpopulation of villages….”. It should be noted that the backdrop for these debates is quite
simply the correlation made between population size and land as a resource, since the
demographic pressure on land capital is a reality in rural areas.

For the people consulted, endemic drought, poor harvests, and locust and pest attacks are
major constraints that compromise the already difficult living conditions of rural populations.
“…The droughts…,” they say, “…are responsible for the destruction of productive potential
(water, land, animals)….” Poor harvests, locusts, parasites, and crop enemies, in their
opinion, plunge and precipitate farmers into a state of deprivation because, under such
circumstances, they devote all their resources to facing the crisis: “…How can we avoid
 - 35 -

poverty?…” some ask, and others respond by saying that “…with each bad

The degradation of production capacity is a cause of widespread poverty “

arziki karkara, karim yaduar talaw tchi” (the degradation of production capacity in rural
areas introduces additional ramifications for poverty), this view was widely held by the
people. Those who supported this argument think that soil degradation, with the attendant
decline in yields from agriculture and herding, is the root of poverty. Some point out that:
“…in places where 100 sheaves of millet used to be harvested,…today,…with the soil
depleted,…we can only harvest five sheaves….” Some nomads in the sample observed that,
in their opinion, “…with insufficient water supply…,…diminishing pastureland…,…
livestock rearing just barely feeds herders….”

Villages in isolation or enclaves are a persistent obstacle to the development of opportunities

and initiatives in villages, considerably limiting access by rural populations to social services
(training for development, health, education, etc.).

Several arguments in favor of the opening up of remote areas were advanced by the
interviewees, and can be summarized in the following terms: “…the lack of roads means that
government authorities have not been able to come to our village. As a result, the authorities
would hardly be aware of our problems and even less motivated to solve them…”; “…the
accessibility constraints on our village have left the income generating activities we women
engage in without outlets.…You know, …here in the village, it’s hard ;
“…The cost of transportation of goods, particularly foodstuffs, is becoming increasingly
; “…to move one sack of millet from one market to another costs on average
CFAF 2000, regardless of the route…. If I were to sell that sack to someone else, what would
it cost that person?…”;“… you keep telling us to get health care or to enroll our children in
school, but, if many of us don’t do this, it’s because we live far from your services…”;
“…because our roads are practically impassible, some agencies have great difficulty
reaching us….”

The following analogy, “Bani guangnay, talkatarey hama” (poor health is the grandchild of
poverty), is also a widely held opinion. Those who put forward this saying agree that chronic
and/or incurable diseases (probably AIDS) undermine the living conditions of those affected.
These pathologies, they note, result in “… patients spending or having to spend all their
resources in the hope of recovering their health…”; “…we have even seen wealthy families
impoverished in such circumstances….”

The scarcity of paid employment, specifically labor-intensive work in rural areas, and the
lack of opportunities for practical and vocational training were seen as bottlenecks that make
it harder for the underprivileged to extricate themselves from poverty, by 59.75 percent of
respondents and 26.82 percent of focus groups.

Insufficient capital and income prevent those who have been brought to their knees from
rising up again “… We do not have the resources… to undertake anything,…” the people
 - 36 -

say. They cannot be successful under such conditions. Some women wonder “… how can
someone who has been brought to his knees rise up again, if he has no resources, no
business?…”

1.3.2. Vulnerability

Vulnerability can be defined as the inability to protect oneself against the high risk of
poverty. Surveys and studies indicate that a number of socio-economic groups within Niger
are highly vulnerable, including women who head households or are destitute, children in
distress, the handicapped, elderly and unemployed, and those shut out of the school system.
Vulnerability is dynamic, and in Niger it arises out of the uncertainty of such factors as
natural resources, available food, health, education, and social relationships. This
vulnerability analysis will focus on rural development, food security and the population.

1.3.2.1. Rural Development

Rural development has been a major policy concern in Niger for the past forty years. Thus,
agriculture, livestock rearing, and combating desertification were clearly identified as the
areas driving that development. As a result of drastic climatic constraints, intense population
pressures, reduced soil fertility, and difficult access to inputs and farming equipment, today
the acreage under cultivation has doubled, farming has shifted toward “marginal” lands in the
North, and pasturelands have shrunk. Degradation of natural resources such as water,
farmland, pastureland and forests has also gone a long way toward making populations more
vulnerable. All these factors have led to the near-pervasive impoverishment of land capital,
the dwindling or disappearance of fallow land, overexploitation of wood resources and
overgrazing, which have accelerated the process of desertification.

Livestock breeding is the second-leading rural activity after farming and is subject to the
same natural constraints, such as recurrent droughts that decimate livestock and the
dwindling or disappearance of pastureland, etc.. Consequently, its share of GDP has fallen
sharply by nearly 50 percent in 30 years (from 20.7 percent in 1961 to 12.8 percent in 1991).

Population pressures on the land have also resulted in disminishing pastureland and, in some
cases, to the narrowing or even disappearance of transit corridors for animals. This has led to
a decrease in feed crop production, while the livestock population has increased and placed
more of a burden on plant cover than it can normally sustain.

Another environmental concern apart from the adverse impact of desertification and
population pressures leading to deforestation through brush fires and the clearing of new
farmland, game resources are seriously endangered in a fragile ecosystem. For example,
forestlands shrank from 16 million to 14 million hectares over 14 years (1984–1999).

1.3.2.2. Food Insecurity

In Niger food security is addressed in terms of each of its three dimensions: food availability
in terms of quantity and quality (production, imports); stable food supplies (aid management,
 - 37 -

food prices); and food access both physically (storage, transportation, serving remote areas)
and financially (income level). Given the need for a healthy and balanced diet, the nutritional
dimension is associated with food security.

Food security is of constant concern, as attested by long years of recurrent grain shortages (2
out of 3 years), despite increased overall agricultural production in the past ten years (1990–
1999). With strong demographic growth, food production has trailed behind actual
consumption needs. This has led to food dependence, especially in rural areas, and frequent
appeals to foreign aid in emergencies or when facing the threat of famine.

1.3.2.3. Rapid population growth and demographic pressure

Niger’s population is distinguished by rapid growth, a young age structure and uneven spatial
distribution. According to 1988 general census figures, nearly 50 percent of the population is
under 15 years old, and only 3.9 percent is over 60. The population is also predominantly
rural, with 82 percent living in rural areas and only 18 percent in urban areas. The average
population density nationwide is 7.7 inhabitants/km². Average density ranges from fewer
than 2 inhabitants per km² in departments such as Agadez (0.5 inhabitants/km²) and Diffa
(1.3 inhabitants/km²), to over 40 inhabitants/km² in Maradi and Dosso.

In 1977 the growth rate was 3.1 percent; today it is estimated at 3.3 percent. This rapid
growth in Niger’s population is due primarily to the high fertility rate, which was
7.5 children per woman in 1998. Infant, child, and maternal mortality rates are still high,
despite substantial progress in healthcare. This rapid population growth has created new
needs to be taken into account, while national production and wealth are failing to keep pace
and are trending downward to the point that poverty has become widespread.

Since the 1980s, however, there has been ever greater awareness of the population’s
importance in economic and social development and, especially, in poverty reduction. In
1983 that awareness was given expression in a political commitment made in the historic
speech made by the Head of State in Matameye on the need for family planning and its
usefulness.

With that goal in view, in 1992 a national population policy was adopted and promulgated
which proposed strategies in six sectors: health, nutrition, living conditions, education and
literacy, vulnerable groups, and raising awareness of population issues. But despite numerous
efforts, the basic issue of the misalignment between demographic and economic growth
remains.
1.4. Poverty by Gender

Social reports on gender offer a way to assess and explain the inequality of status observed
between women and men. These reports show that the poverty level in Niger is highly
dependent upon the gender of the individual.

Despite the lack of disaggregated data by gender in the principal surveys, secondary surveys
have shown that poverty in Niger has a woman’s face. Accounting for more than half the
 - 38 -

population, women are especially affected. Poverty among women is marked by a series of
inequalities which stand as obstacles to the fulfillment of their needs.

1.4.1. Forms of discrimination against women

Discrimination occurs in both the formal and informal sectors with respect to the
employment rates of women relative to men, to income gaps between genders, to excessive
workloads for women and their inferior legal status, and to sociocultural factors that
adversely impact all aspects of women’s economic and social lives in one way or another.
Women are marginalized in the distribution of resources and the benefits of development.

This discrimination is illustrated by the Gender-Specific Human Development Index (GDI).

Analyzed from this perspective, the status of women is as follows: Diffa, Agadez, and Dosso
have the greatest disparities between the HDI and the Gender-Specific GDI. These disparities
are reflected in strong discrimination against women in these zones. This discrimination is
manifested in major differences in income and literacy levels between men and women.
Indeed, while men have an income of 1028-1408 purchasing power parity dollars (PPP$),
women’s income amounted to a mere PPP$800 in the three zones indicated. The disparities
in literacy between men and women in the three zones are as great.

Table 8: Gender-Specific HDI by Region 1996-1999

Gender- Gender- Gender- Gender-

Specific HDI Specific HDI Specific HDI Specific HDI
1996 1997 1998 1999
Agadez 0.297 0.300 0.372 0.410
Diffa 0.163 0.165 0.214 0.218
Dosso 0.162 0.163 0.211 0.220
Maradi 0.151 0.153 0.210 0.219
Tahoua 0.175 0.176 0.238 0.237
Tillaberi 0.228 0.229 0.309 0.312
Zinder 0. 187 0.187 0.251 0.260
Niamey 0. 435 0.432 0.508 0.504
Niger 0.203 0.204 0.278 0.284
Source: Niger’s Fourth National HDR, 2000.

Overall, the table above shows near-pervasive discrimination against women with respect to
men over time. From 1996 to 1999 the gap between the HDI and the gender-specific HDI
widened everywhere except in the department of Tillaberi and the Niamey Urban
Community, where it narrowed from 1997 to 1998. The outcome is marginalization of
women in space and time within Niger’s socioeconomic sphere.
 - 39 -

1.4.2. Low income levels for women

Income gaps between men and women are wide, ranging from 23 to 727 from one region to
another, with a nationwide income gap of 175. This is a reflection of local conditions such as
fewer women in the economic circuit and their restriction to domestic work, thus limiting or
understating the value of work done by women. Many household activities are not factored
in, since they cannot be quantified in monetary terms within the existing accounting system.
Placing a value on such household activities, which are often for home consumption or small
business purposes, would further narrow the income gap between men and women. These
gaps widened considerably from 1998 to 1999 for all regions except the departments of
Maradi and Tahoua.

Table 9: Income Trends by Gender for Niger’s Regions, 1997 1999.11

Income 1997 Income 1998 Income 1999

Men Women Both Men Women Both Men Women Both
Agadez 1,286 648 1,214 1,334 672 1,259 1,408 710 1,329
Diffa 939 713 914 973 739 948 1,028 781 1,001
Dosso 1,249 585 785 1,295 606 814 1,367 640 860
Maradi 576 553 572 598 573 594 631 605 627
Tahoua 638 617 638 662 640 662 699 676 699
Tillaberi 1,236 793 1,197 1,282 822 1,241 1,353 868 1,285
Zinder 529 449 522 549 465 541 579 491 571
Niamey 1,791 1,224 1,721 1,857 1,269 1,785 1,960 1,340 1,884
Niger 806 647 795 836 671 824 883 708 870
Source: Niger’s Fourth National HDR 2000.

1.4.3. Girls’ low education levels and women’s illiteracy

Girls’ low education levels and women’s illiteracy can be attributed to the substantial amount
of work done in the home, which limits women’s access to basic education and functional
literacy services. Household chores are also closely tied to the low enrollment ratio for girls,
who are often kept with their mothers to help with housework. The low education level of
girls and women’s illiteracy can also be attributed to persistent socio-cultural factors (such as
forced marriages and the confinement of women), misinterpretation of Islamic precepts
governing society, and women’s ignorance of their rights.

11
Gross data reported in the table correspond to household expenditure data from the
permanent economic and social survey (EPCES) of 1995. This data was extrapolated on the
basis of regional production and price indices. For additional information on the
methodology, see NHDR 2000, pages 108-9.
 - 40 -

1.4.4. Women’s poor health

Poor health among women can be attributed to their limited access to health services.
Although this does not show up in surveys that do not disaggregate access by gender, women
are faced with a number of obstacles relating to the substantial amount of work done in the
home, which leaves them without enough time to obtain basic healthcare and reproductive
health services, as well as to the persistence of practices harmful to women’s health (such as
early marriage, excision, dietary taboos and prohibitions, and force-feeding). These
circumstances point squarely to the conclusion that women’s access to basic health and
reproductive health services is restricted.

1.4.5. Greater vulnerability of women

Women are more vulnerable, because they have the least formal education or ability to raise
the resources needed to develop their full potential, especially when they head households
and live in rural areas. It follows that there is a need for awareness and participation. At the
root of the various inequalities described above are obstacles to services, access,
participation, control, and awareness for women.

A strong communication effort is needed to raise awareness among women and enable them
to effectively engage in the struggle against marginalization and poverty.
 - 41 -

II. TRENDS IN PRINCIPAL AGGREGATES OVER THE PAST TEN YEARS

2.1. Supply of Goods and Services

2.1.1. Production

The performance of Niger’s economy over the decade from 1990 to 2000 was marked by
weak growth with an average annual real growth rate of 1.9 percent. This ten-year trend was
not smooth. Beginning in 1994 with the first timid implementation of reforms, growth was
2.5 percent. This disappointing growth lagged behind demographic expansion (3.3 percent)
and was insufficient to raise real income per capita significantly. This poor performance is
linked particularly to such key factors as unfavorable weather conditions; inappropriate
economic policy marked by delayed reforms; unfavorable, even hostile, external
environment; and an often unstable social and political climate.

In structural terms, the GDP was distinguished by a preponderance of the business-driven

tertiary sector, which contributed 45.2 percent of GDP on average during the 1990s.

Table 10: Trends in GDP Structure, 1990–2000 (at current market price)

1995 1996 1997 1998 1999 2000

In CFAF billions
Primary sector 377.8 415.2 381.8 484.9 491.8 488.6
Secondary sector 165.7 178.7 172.7 178.9 177.6 201.4
Tertiary sector 395.3 423.0 528.4 561.2 573.6 610.0
All sectors 338.8 1,016.8 1,082.9 1,225.0 1,243.0 1,300.0
Share in GDP (in percent
Primary sector 40.2 40.8 35.3 39.6 39.6 37.6
Secondary sector 17.7 17.6 15.9 14.60 14.3 15.5
Tertiary sector 42.1 41.6 48.80 45.8 46.2 46.9
All sectors 100 100 100 100 100 100
Annual charge (In percent)
Real GDP, at market
prices 2.6 3.4 3.3 10.4 -0.6 0.1
Primary sector 1.09 0.17 0.77 21.0 -5.0 2.6
Secondary sector 3.0 5.8 4.2 3.1 2.7 3.4
Tertiary sector 3.20 4.52 4.78 1.85 1.25 -6.89
Source: Ministry of Finance and Economy.

The primary sector employs more than 80 percent of the population and comprises primarily
of agriculture and livestock rearing. This sector grew by 2.2 percent on average from 1995 to
2000, owing mainly to good rainfall in 1998 and 1999. Nevertheless, farming and livestock
remain subject to climatic conditions. This exposes them to frequent external shocks and is
the leading factor in income instability.
 - 42 -

The secondary sector’s contribution to GDP began a steady decline in 1995, leveling off at
15 percent in 1997, three years after the change in CFA franc parity. An international
economic climate that was especially hard on the mining sector helped stabilize sector
growth around 3 percent, one year after the devaluation. Niger’s economy is also becoming
increasingly informal. The informal sector accounted for 70.8 percent in 1990, and
74.2 percent in 2000. Such a structure has led to a loss of tax income that jeopardizes the
government’s ability to cover its operating expenses and fund investment.

2.1.2. Imports

The import rate (imports as a percentage of GDP) averaged 18 percent prior to the
devaluation (1990-1993), and 23 percent from 1994 to 2000. The import structure shows a
predominance of capital goods (25 percent on average), food (23 percent), petroleum
products (12 percent) and intermediate goods (6 percent).

Table 11: Composition of Imports

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Total imports
(in CFAF billions) 145.9 123.0 110.7 113.8 233.3 228.2 238.6 257.3 292.0 264.0 271.8
As a percentage of total imports (%)
Petroleum products 3.96 4.39 5.21 5.74 4.84 7.53 6.88 6.34 5.03 4.71 -
Grains 4.52 7.15 5.37 5.42 3.82 4.03 4.14 6.09 7.36 7.00 -
Consumer goods 17.01 19.92 22.40 22.85 27.83 24.49 33.11 29.38 28.56 0.00 -
Interm. consumer goods -
and capital goods 37.50 32.93 30.71 30.40 26.04 28.99 21.50 25.53 27.77 22.50
Origin of imports in percent (%)
France 24.0 32.0 25.0
Nigeria 15.0 14.0 12.0
Imports/GDP (percent) 18.7 17.8 18.1 26.9 24.3 23.5 23.8 23.8 21.2 20.9
Memorandum items:
GDP at market prices 675.2 656.7 620.7 628.8 867.9 938.8 1,016.8 1,082.9 1,225.0 1,243.0 1,300.0

Sources: Ministry of Industry and Energy; BCEAO; Fund staff estimates.

2.2. Demand for Goods and Services

The supply-use balance shows strong domestic demand (absorption) averaging 105 percent
of GDP. Consequently, Niger is constantly drawing on external savings to make up for the
deficit.
 - 43 -

Table 12: Supply and Use of Resources at Current Market Prices (in CFAF billions)
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Supply 821.1 779.7 731.4 742.6 1,101.2 1,167.0 1,255.4 1,340.2 1,517.0 1,507.0 1,571.8
GDP at current market
price 675.2 656.7 620.7 628.8 867.9 938.8 1,016.8 1,082.9 1,225.0 1,243.0 1,300.0
Imports of non-factor
goods and services 145.9 123.0 110.7 113.8 233.3 228.2 238.6 257.3 292.0 264.0 271.8
Use 821.1 779.7 731.4 742.6 1,101.2 1,167.0 1,255.4 1,340.2 1,517.0 1,507.0 1,571.8
Consumption 646.7 638.4 584.4 604.0 867.5 937.3 984.9 1,047.6 1,177.8 1,181.7 1,237.4
Private 533.3 541.3 476.0 504.7 729.0 804.9 870.0 899.2 1,015.4 1,018.4 1,067.1
Public 113.4 97.1 108.5 99.3 138.6 132.4 114.9 148.4 162.5 163.3 170.3
Investment 74.4 49.1 43.0 40.3 90.2 68.7 98.2 117.0 139.8 138.8 145.6
GFCF 76.7 51.4 45.3 42.6 77.2 65.7 95.2 114.0 136.8 135.9 142.7
Private 27.0 27.0 12.0 12.0 20.1 16.9 48.2 51.6 57.3 59.6 60.4
Public 49.7 24.4 33.3 30.6 57.1 48.8 47.0 62.4 79.5 76.3 82.3
Changes in stocks -2.3 -2.3 -2.3 -2.3 13.0 3.0 3.0 3.0 3.0 2.9 2.9
Exports of non-factor
goods and services 100.0 92.3 104.0 98.4 143.5 161.1 172.3 175.7 199.3 186.5 188.8
Resource gap -45.9 -30.7 -6.7 -15.4 -89.8 -67.2 -66.3 -81.6 -92.7 -77.5 -83.0
Percentage of GDP -6.8 -4.7 -1.1 -2.5 -10.3 -7.2 -6.5 -7.5 -7.6 -6.2 -6.4

Sources: Fund staff estimates and projections based on discussions with Niger authorities.

2.2.1. Consumption

Final consumption accounts for 95 percent of GDP on average. Final consumption is

essentially subsistence consumption that cannot easily be reduced, and so offers little
opportunity for savings. Note that public consumption has decreased down slightly due to
efforts by the government to reduce spending in line with reforms.

2.2.2. Investment

Low levels of domestic savings attributable mainly to insufficient resources is a major

constraint on investment financing. The rate of investment is relatively low, erratic and
highly dependent on foreign assistance. It averaged 11 percent in 1990 and 2000, when the
typical figure for developing countries similar to Niger was on the order of 25 to 30 percent.
Private investment reacted more strongly to the devaluation in 1994, increasing its share of
GDP from 5.5 percent in 1994 to 8 percent in 1998, while the government’s share fell. Still,
such performance is not significant enough to substantially reduce poverty in the medium
term.
 - 44 -

Table 13: Savings and Investment Financing (as a percentage of GDP).

1993 1994 1995 2000

Domestic savings 3.9 0.1 0.1 4.8
Rate of investment 6.4 10.4 7.3 11.2
Domestic savings deficit 2.5 10.3 7.2 6.4
Source: Ministry of Finance and Economy, 2001.

2.2.3. Exports

This breakdown shows that Niger’s exports are highly concentrated in raw materials with
very low added value, such as uranium (67.4 percent in 1997), livestock products
(14.8 percent in 1997) and agricultural products (10.4 percent in 1997). These are exported
primarily to France and Nigeria. This low level of diversification of products and trading
partners leaves the country constantly open to external shocks.

Table 14: Composition of Exports

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Total exports (in CFAF billions) 100.0 92.3 104.0 98.4 143.5 161.1 172.3 175.7 199.3 186.5 188.8
Percentage of total exports
Uranium 60.4 60.9 46.4 46.5 52.7 46.9 40.6 43.5 38.4 35.0 -
Cattle 11.0 11.1 20.7 29.7 21.1 12.3 11.8 11.6 12.1 4.7 -
Leather and hides 1.2 1.3 0.2 0.1 1.1 0.6 1.1 1.5 2.0 0.2 -
Cowpeas 3.8 4.1 2.5 2.7 5.2 4.6 6.1 5.9 8.3 2.7 -
Other exports /1 23.6 22.7 30.2 21.1 19.9 35.7 40.4 37.5 39.1 12.1 -
Destination of exports in percent
France 44.0 46.0 51.0
Nigeria 21.0 16.0 11.0
GDP at market prices 675 657 621 629 868 939 1,017 1,083 1,225 1,243 1,300
Exports/GDP in percent 14.8 14.1 16.8 15.6 16.5 17.2 16.9 16.2 16.3 15.0 14.5
Sources: Ministry of Trade, Transportation and Industry; Ministry of Mines and Energy.

Consequently, tradable goods sectors were unable to fully benefit from the boost offered by
the devaluation of the CFA franc in 1994. For example, the positive impact of the 1994
monetary realignment caused the export rate in Niger to rise slightly from 15.6 percent in
1993 and 16.3 percent in 1998, whereas elsewhere it rose more sharply, from 16 percent to
24 percent in Mali, from 22.2 percent to 32.2 percent in Senegal, and from 28.7 percent to 43
percent in Côte d'Ivoire over the same period of time. The demand for food absorbs a large
share of the funds available for financing imports.
 - 45 -

2.3. Public Finance

Public finance management in Niger calls for substantial funding due to the chronic deficit
recorded throughout the 1990s. Even so, the principal balances have improved, especially
after 1994, when a series of actions were taken to rein in spending in collaboration with the
Bretton Woods Institutions.

As shown in the table below, the current fiscal balance has improved gradually from -8
percent of GDP in 1994 to -2.5 percent, while the overall balance excluding grants has
recovered from -13.8 percent to -7.6 percent. The size of the deficit is tied to poor
performance by the agencies collecting domestic and trade revenue, particularly given the
weight of the informal sector in the economy, against a backdrop of slippages in government
expenditure and a weak revenue collection rate.

Table 15: Principal Fiscal Balances (as a percentage of GDP)

1990 1993 1994 2000

Primary balance/GDP -10.3% -7.5% -11.3% -5.7%
Current fiscal balance/GDP -3.5% -5.7% -8.0% -2.5%
Overall balance (excluding
grants) / GDP -12.4% -9.2% -13.8% -7.6%
Overall balance (including
grants) / GDP -6.9% -3.7% -7.4% -3.4%
Source: Ministry of Finance and Economy, 2001.

2.3.1. Revenue

Total revenue fell at an annual average rate of 12.6 percent from 1990 to 1993, rising in 1994
by only CFAF 6.3 billion, or 0.7 percent of GDP, with the devaluation. This can be attributed
essentially to tax evasion and the erosion of government authority that encouraged it. The
trend began to reverse in 1994 with an almost steady rise in revenue from 52.3 billion to
110.1 billion in 2000. The tax base is still small, however, which keeps the ratio of tax
revenue to GDP at under 10 percent, far from the 17 percent WAEMU convergence
threshold recommend for end-2002. The tax base was not extended to cover the real and
permanent assets such as real estate (land and buildings) in rural and urban areas. Only urban
property is partially taxed as taxes on public and private property owned by the state do not
revert to the local governments where the property is located. The main handicap is that there
is no effective system to take stock of and assess real estate.

Changes in total fiscal revenue have been driven by tax revenue, which has accounted for
nearly 90 percent since 1990. Contributing 53 percent and 47 percent, respectively, customs
duties and domestic taxation have traded places over the course of the period following a
decisive shift in collection activity in the international trade sector. This shift is a result of
tighter customs controls, and was further accentuated by the refocusing of many domestic
 - 46 -

activities on the informal sector and the recovery of imports in spite of WAEMU large
contraction measures such as the devaluation and the Common External Tariff.

Table 16: Trends in Budget Resources.

1990 1993 1994 2000
Total revenue and grants 106.1 81.2 102.6 161.4
Total revenue 69.3 46 52.3 110.1
Tax revenue 53.5 41.3 46.6 102.7
Taxes on foreign trade 27.3 19 21.7 58.5
Domestic taxation 26.2 22.3 24.9 44.2
Grants 36.8 35.2 50.3 51.3
Ratios (as a percentage of GDP)
Total revenue and grants 15.9 12.5 13.0 12.4
Tax revenue 8.0 6.4 5.9 7.9
Source: Ministry of Finance and Economy.

In response to insufficient current revenue, grants averaged 30 percent of total fiscal

resources for the period, making Niger highly dependent on foreign partners. This has led to
instability in the management of government resources, since local authorities have no
influence over such a sizeable portion.

2.3.2. Expenditures

Trends in government expenditures were mixed from 1990 to 2000. From 1990 to 1993 they
declined at an average annual rate of 11.4 percent, for reasons that included the absence of a
sustained program supported by the international financial community. After a jump in 1994
with the influx of project funding from abroad, in 1995 government expenditures began
responding to efforts to rein them in, falling by 9.8 percent each year on average from 1994
to 1996.

This trend reversed from 1996 to 2000, during which time expenditures rose at an average
annual rate of 11.9 percent from CFAF 131.1 billion in 1996 to CFAF 205.8 billion in 2000.
In 1990 current expenditures represented 58.5 percent of the total, and capital outlays
39.6 percent. By end-2000 these two categories accounted for 66.8 percent and 32.2 percent,
respectively. Payroll accounted for 42.2 percent of current expenditures in 1990 and
53.2 percent in the early 1990s, falling over time to 37.7 percent. These changes can be
attributed to control over remunerations and the size of the civil service.
 - 47 -

Table 17: Trends in Government Expenditure (in CFAF billions)

1990 1993 1994 2000

Total expenditures and net lending 152.1 105.3 161.1 205.83
Current expenditure 89 80.7 111.2 137.4
Wages and salaries 36.7 40.3 47.4 51.85
Capital expenditure 60.3 26.8 50.2 66.3
Ratios (as a percentage of GDP, unless otherwise indicated)
Total expenditure 22.8 16.3 20.5 15.8
Current expenditure 13.3 12.5 14.1 10.6
Capital expenditure 9 4.1 6.4 0.6
Current expenditure / Total expenditure 58.1 72.6 66 66.8
Current expenditure / Total revenue
excl. grants 127.6 166.3 204 124.8
Wage bill / Tax revenue 68.6 97.6 101 50.48
Source: Government table of financial operations, Ministry of Finance and
Economy.

The wage bill as a percentage of tax revenue fell from 68.6 percent in 1990 to 50.48 percent
in 2000. Capital expenditure was funded mainly through inflows from abroad, with loans
averaging 31 percent, and grants 57 percent, for 1990-2000. The public investment rate as a
percentage of GDP fell from 9 percent in 1990 to 5.1 percent in 2000. The ratio of locally-
financed government capital expenditure to tax revenue also fell to 7.9 percent at the end of
the 1990’s. Niger is noncompliant with this other WAEMU convergence criterion as well.

The government’s deficit financing system reveals a high level of external dependence.
Recurrent cash shortages have also made the accumulation of arrears another exceptional
means of financing part of the government deficit. Domestic loans from the private sector
and the banking system have been relatively modest. This attitude is related to the low level
of local savings and lenders’ or investors’ general lack of interest given the government’s
cash shortages. Under such conditions, treasury bills issued in 1995 to settle the arrears did
not achieve the desired results.

2.4. Balance of Payments 1990–2000

Niger’s balance of payments for 1990 1999 reveals a chronic deficit of the current account
balance with a rate of -6.6 percent of GDP at the end of the reference period. The current
balance of payments fell from CFAF -32.2 billion in 1990 to CFAF –77.1 billion in 2000.

From 1990 to 1993 the ratio of current balance of payments to GDP improved substantially
from -8.1 percent in 1990 to -4.0 percent in 1993. The balance of payments position
worsened from 1994 to 1999, however, to stabilize around an average rate of -8.0 percent,
and therefore did not benefit from the devaluation of January 12, 1994, which it had been
 - 48 -

hoped would boost exports and shrink imports through changes in relative prices favoring
tradable goods.

Such poor performance on transactions with the rest of the world is the result of the steady
decline in the trade balance (-2.7 percent of GDP in 1999, compared with -0.5 percent in
1993), revenue (-1.1 percent, compared with -0.2 percent six years earlier) and the unilateral
transfers balance (which has declined 1.3 points) slightly improved by better performance of
services (up 0.6 of a point). Careful analysis indicates that the cause is structural in nature.

Table 18: Structure of the Balance of Payments

As a percentage of GDP 1990 1993 1994 2000

Current account -5.0 -4.0 -8.7 -6.8
.Trade balance -0.7 -0.5 -3.1 -2.4
.Balance of services -7.6 -6.5 -8.4 -5.2
.Income -2.0 -0.2 -1.9 -1.1
.Current transfers 5.4 3.3 4.7 1.8
Foreign direct investment 1.7 0.9 0.3 0.02
Source: BCEAO.

Despite policies at different times to reverse the trend (support infant industries, protect local
products, food security), the balance of goods and services has continued to run a deficit.
Exportable production is very low, with exports averaging 15.6 percent of GDP for 1988–
1999. Exports gained 2.2 percent in value on average from 1989 to 1999, but the cost of
imports (20.0 percent of GDP for 1988-1999) increased at a rate of 3.9 percent, much faster
than revenue from sales to foreign countries over the past ten years. Expenses incurred for
service transactions have usually weighed heavily on current payments. The current
payments deficit did not fall below 5.2 percent of GDP during the reference period.

Financial transactions have usually limited the need for current transactions, but have not
lived up to expectations. Development aid has dried up in response to the general lack of
interest by industrialized countries in the wake of the collapse of the Berlin Wall and other
such events. In 1998, for example, while Niger received more aid per capita than the average
for countries in sub-Saharan Africa, the results were not very good in comparison with
neighboring countries such as Mali or Burkina Faso, and trailed far behind Senegal.

Foreign direct investment recovered only moderately in 1994–1999 to an average of

2.5 percent of GDP, from -4.4 percent of GDP for 1990-1993. FDI was still US$1 million in
1998, far below Chad (US$16 million), Mali (US$17 million), Senegal (US$40 million) and
Côte d'Ivoire (US$873 million). In light of the positive mobilization of economic resources,
economic operators frequently had to rely on foreign borrowing to cover their structural
financing requirement.
 - 49 -

The causes of the structural deficit on current account are related mainly to exogenous
factors, such as generally low and irregular rainfall causing drought and food shortages and
resulting in high levels of food imports.

Similarly, the following trends can be observed: declining terms of trade; poor influence over
foreign demand, particularly in the sector of Niger’s main export product, uranium; scarce
diversification of export products; domestic characteristics such as lack of autonomy in
energy products, transportation, insurance, requiring a high volume of imports, while
worsening cost factors and undermining the country’s efforts at competitiveness; poor past
external debt management, which led to the current accumulation of payments arrears
(resulting in a heavier burden of current debt service); political and institutional instability
over the last 10 years, which was a disincentive to massive inflows of external capital.

2.5. Domestic and External Borrowing

2.5.1. Domestic Debt

In 1995, the Republic of Niger began to experience problems with domestic arrears that were
sufficiently serious to warrant consideration in the adjustment programs of that time. Based
on a number of surveys of domestic debt and arrears, the World Bank has provided financial
and technical support for clearing the debt.

Debt estimates prior to an IDA reform credit in 1997 already indicated outstanding debt and
arrears of CFAF 225 billion. Most of these government liabilities were to the financial sector
in general (CFAF 70 billion) and to public and private suppliers (CFAF 70 billion). Of the
latter amount, pending invoices which had not been formally controlled accounted for
CFAF 40 billion, and accounts payable for CFAF 30 billion. Wage payments of the
equivalent of four months, i.e. CFAF 17 billion were late as of December 31, 1997.

Domestic debt changed considerably in terms of structure and amount between December 31,
1997 and December 31, 1999. During that period and during 2000 the Government took
action in conjunction with the Bretton Woods Institutions to better manage government
expenditures, and so prevent arrears.

That action was interrupted or delayed. Action was also taken to deal with accumulated
arrears, culminating in the establishment of the domestic debt settlement agency (CADIE),
which today is the focal point for the policy of clearing arrears. The government has adopted
a plan to reduce arrears which sets priorities and establishes procedures for settling arrears
with quantitative goals that are consistent with the macroeconomic and financial program.

As part of the strategic plan, CFAF 34 billion has been slated for the implementation of this
plan in 2001 through a transparent mechanism for verifying and validating the arrears. The
Government is also committed not to incur any new arrears.
 - 50 -

2.5.2. External Debt

In general, debt indicators changed little over the course of the five years leading up to 2000,
and are expected to be lower as a result of Niger’s admission to the HIPC Initiative.

Table 19: Debt Stock

Debt indicators 1995 1999 2000

Domestic debt o/s (in CFAF billions) 117.9 295.5 302.1
Domestic debt as a percentage of GDP 13 24 23
External debt o/s (in CFAF billions) 693.3 1,022.8 1,010.9
External debt as a percentage of GDP 74 82 78
External debt service (in CFAF billions) 52.3 45.8 52.3
External debt service / Tax revenue (percent) 84 46 51
Source: Debt Directorate, Ministry of Finance and Economy.

Niger’s outstanding external debt was estimated at CFAF 1,022.8 billion as of December 31,
1999, or 82 percent of GDP. Domestic debt was close to CFAF 295.5 billion, or 27 percent
of GDP. The public sector alone had contracted CFAF 912.2 billion in foreign liabilities,
equivalent to 8.7 times the total fiscal revenue for that year.

Government debt servicing accounted for CFAF 46.5 billion, or 26.1 percent of total fiscal
revenue. The structure of the outstanding debt (68 percent multilateral and 32 percent
bilateral) has long been a handicap in debt restructuring negotiations undertaken by Niger,
since multilateral lenders have raised statutory issues. Niger’s estimated debt-to-GDP ratio
for 2000 is 78 percent.

Table 20: Solvency and Liquidity Indicators.

HIPC
Indicators 1993 1994 1999 2000 Threshold
Solvency
.Outstanding debt / GDP 54.4 85.8 82 78
.Outstanding debt / Total
exports 355 495 322.4 327 <150%
Liquidity
.Interest / Budget revenue excl.
grants 20.7 35.4 17.1 14.6
.Debt service / Total exports 26 33.2 25 28 < 20-25%
.Debt service / GDP 4 5.8 3.7 4.0
Source: Debt Directorate, Ministry of Finance and Economy.
 - 51 -

To get a true picture of the difficulties facing Niger in the medium and long term, one needs
to consider the other indicator of the country’s solvency. Outstanding external debt
represented 322.4 percent of exports of goods and services in 1999. Liquidity indicators are
even more alarming.

Debt service was 4.0 percent of GDP, or CFAF 45.8 billion, for the reference year. Even so,
in 1999, the poor performance of exports and government revenue raised the ratios of debt
service to exports and of public debt interest payments to fiscal revenue excluding grants to
levels of 25 percent and 17.1 percent, respectively, above the thresholds usually considered
critical by international standards. Such indebtedness has an enormous cost, since debt
servicing clearly has an adverse impact on private consumption and investment. Access to
the capital market is also limited by the solvency and liquidity risks associated with Niger.

2.6. Net Foreign Assets

After improving in 1992 and 1993, net foreign assets declined steadily to CFAF -22.8 billion
in 1999. With the resumption of cooperation with development partners such as the Bretton
Woods Institutions, this trend was reversed in 2000 bringing net external assets to
CFAF -10.3 billion. The enhanced competitiveness expected from the 1994 monetary
readjustment was quickly eroded.

The trend in external assets can be attributed mainly to the pace of repatriation of revenue
from exports such as uranium and to the use of foreign resources. Consequently, Niger’s
position as a net importer means that more foreign exchange goes abroad, thus further
depleting the country’s exchange reserves.

2.7. Credit

Domestic credit has followed an erratic course. Outstanding domestic credit fell from
CFAF 109.2 billion in 1990 to CFAF 71.7 billion in 1994, then rose to CFAF 111.6 billion in
2000. The share of net bank credit extended to the government rose from 24.0 percent in
1990 to 60.0 percent in 1999, giving rise to a persistent cash shortage. Credit extended to the
economy contracted sharply (-42.5 percent) from 1990 to 1999, reflecting the seriousness of
the economic, political and social crisis Niger experienced during that period. As a result of
this contraction, a number of public enterprises went bankrupt and several banks were
liquidated, including BDRN and CNCA.

In 2000, rising oil prices and a strong dollar hurt the cash position of a number of companies
in the oil, gas and energy sector and others, thereby increasing demand for new credits. The
existing structure of credit extended to the economy is poorly suited to the financing of long-
term productive activities. Like bank resources (in 2000, 60 percent of deposits are short-
term), most credit extended is short-term. The share represented by medium- and long-term
credit continued its downward trend to 18.2 percent in 2000, compared with 69.9 percent in
1990. The rate of utilization of long-term resources for investments has averaged 60 percent
over the last decade.
 - 52 -

Trading activities remain the principal beneficiary sector (averaging 53 percent of all
credits). Industry accounts for barely 11 percent on average. The agricultural sector, which
generates income for over 80 percent of the population, receives only about 1 percent.

The ratio to GDP of credit to the economy is relatively low, and appears insignificant in
comparison with the countries listed in the table below.

Table 21: Trends in Credit to the Economy as a Percentage of GDP in the Countries of
the Subregion

Country 1992 1993 1994 1995 1996 1997 1998 1999

Niger 11.7 10.3 8.2 4.5 4.3 3.3 4.0 3.8
Burkina Faso 12.3 11.1 7.2 6.9 7.0 11.9 12.0 11.8
Mali 12.3 12.6 8.9 10.7 12.9 13.9 16.6 18.4
Nigeria 8.9 6.7 9.3 8.7 7.6 9.1 11.7 13.8
Source: Calculations based on WDI 2001 data.

2.8. Interest Rate

The restructuring of monetary policies and instruments undertaken in 1989, and strengthened
in 1993, did away with administrative methods for managing credit such as credit control and
preferential rates, in favor of market mechanisms. In such a context the principal intervention
tool of the BCEAO is the interest rate backed by a system of reserve requirements. Thus,
banking conditions are liberalized subject to fixed attrition rates of 18.0 percent for banks,
and 27.0 percent for other economic operators. The minimum rate of return on personal
savings is 3.5 percent.

In practice, the lending rates charged by banks have no direct link to the Central Bank
reference rates. The discount rate of the central bank has been fixed at 6.5 percent since
June 19, 2000. The encouraging signals thus sent by the monetary authorities have not been
followed in the rate policy applied by lenders.

2.9. Monetary Indicators

Niger’s economy is marked by very little financial deepening. The liquidity ratio, for
example, is the lowest in WAEMU and has eroded steadily from 18.1 percent in 1991 to
7.9 percent in 2000. In 1997 the liquidity ratio was 10.4 percent for Niger, 27 percent for
Burkina Faso, and an average of 25 percent for WAEMU as a whole. This is due in part to
trends in counterparts to the money supply, and in part to substantial home consumption of
the principal agricultural products.

Another indicator testifying to the scant financial development of the national economy is the
rate of financial deepening, which measures the number of bank account holders in relation
to the total population. In 1994 this rate was 0.2 percent for Niger, compared with 1.9 percent
 - 53 -

for Mali and an average of 2.5 percent for WAEMU, reflecting a marked preference for cash
by Niger’s economic operators in their transactions, as well as difficulty in gaining access to
the banking system.

The structure of the money supply is characterized by a tendency to resort to the cash
component. Currency represented 28.2 percent of the money supply in 1990 and 31.2 percent
in 2000.

Box 2: Public Debates on Poverty

The public debates organized in August 2001 as part of the activities of the Permanent Secretariat of the DSRP
included an element of social research aimed at obtaining the views of target populations on poverty. These
debates involved target groups made up of eight “disadvantaged” people (four men and four women) chosen
from each of the country’s districts. They offered the opportunity for the target populations to express their
concerns.

Traditionally, the scientific community defines a poor person as one who cannot meet all or some of his basic
necessities: food, clothing, housing, health care and education.

The opinions gathered on poverty and the means for its alleviation provide a better insight into the phenomenon
as experienced by these people. The analytic substance of the study involved not just an evaluation of poverty
through the themes of the public debate, rounded out more specifically with individual interviews and focus
groups, but also a search for correlations between different facts. The “whys” and “hows” of each aspect
determined the content of the analysis.

The analysis of the content of the discussions that took place during the debates pointed to a wide variety of
definitions of poverty, of needs expressed with a few variations from village to village, by target groups and
based on each individual’s specificity. In short, the main elements gathered revolve around the perceptions and
representations of poverty, the causes, consequences, attitudes and reactions, as well as the expectations and
suggestions on what has been done or what might be done to deal with this phenomenon. Many respondents
were appreciative of the various forms of interventions in rural communities (projects, programs, aid/support).
However, they punctuated their positive comments with criticisms and sometimes with proposals for
improvement.
 - 54 -

PART II:

NIGER'S VISION OF ITS DEVELOPMENT

“Despite the formidable challenges described above,

we remained convinced that poverty can be overcome”
 - 55 -

III. National Priorities and Poverty Reduction Objectives

Poverty reduction is the backbone of economic development in Niger. This vision and
conviction are determined by the socio-economic context of the country, as outlined by the
diagnosis presented in this PRS. The Government of Niger is aware of the vast number of
measures to be put in place in order to adequately face this challenge. The priorities
expressed by the people have been the basis for defining national priorities and are in line
with the resolutions and recommendations of world summits.

In the case of Niger, poverty reduction is one of the objectives set out by the world
summits.12 Indeed, the Millennium Summit, organized in New York in September 2000,
which was the most recent world encounter, summarized all the previous world summits and
took into consideration the latest important developments in society and the world economy
in a post cold war and globalization context. It brought into focus the main concerns of the
international community in its common quest for ways and means of reducing the poverty
and misery that affects large populations, in order to safeguard the environment as the
common heritage of future generations, and to put an end to injustice and inequality.

The Government of Niger is convinced that its battle to reduce poverty will only be won if
objectives are set out based on a proper diagnosis of the situation. Also, key principles are to
be respected. That is why the government does not intend to spare any effort in respect of
human rights, consolidation of the ongoing process of implementation and reinforcement of
the democratic institutions as well as the promotion of good governance. These values have
been set out as the guiding principles for the implementation of the current PRS.

3.1. Objectives of the Poverty Reduction Strategy

As its main objective, Niger intends to improve the living conditions of the poor
communities with the aim of reducing their number to at least 50 percent by 2015. Achieving
this overall objective rests on the attainment of a certain number of specific intermediate
objectives linked to the four (4) strategic pilars outlined in the PRS.

With respect to the macroeconomic framework, there is, on the one hand, a need to increase
growth and preserve economic stability in the medium and long term, and on the other hand,
the imperative of improving the income and standards of living of populations, especially in
the rural areas. As far as development of the productive sectors is concerned, the challenge is
to ensure food security based on an integrated development of natural resources, to preserve
the environment by fighting desertification, to reduce fluctuations and to increase the income
of the population. With respect to access by the poor to basic social services, the focus is to
improve the overall level of education and health of the population, to broaden the access of
12
Relates to the World Summit on Social Development, World Summit on Food and
Nutrition, 3rd World Conference on Least Developed States, the Millennium Summit and the
New African Initiative.
 - 56 -

communities, in particular rural ones, to safe water by strengthening water harnessing for
production and household needs, and to improve the quality of life of both urban and rural
populations. Finally, good governance and strengthening of the human and institutional
capacity will require improvements in the management of public affairs, a resolute stance
against corruption and true commitment to decentralization by empowering communities.

Indeed, in order to achieving national objectives that are in line with international objectives
for poverty reduction, the Government of Niger’s strengthened efforts combined with the
renewed support from the international community will allow the creation of optimal
framework conditions for poverty reduction in our country.

3.2. Priorities expressed by the population.

Quantitative studies carried out over the past few years have facilitated the assessment of the
extent and scope of poverty. Qualitative research and public debates were later organized to
allow target groups to express themselves in terms of their perception of poverty initiatives
taken to date and future actions.

These consultations revealed that the various aspects of poverty are privation, vulnerability,
seasonal constraints, fatalism and social exclusion. Men and women are affected differently
by these factors and their effects vary depending on age, socio-economic situation, the agro-
ecology of specific areas, their natural potential and the target groups. Poverty, therefore
takes extremely diverse and complex forms.

Overall, the priorities identified by the communities relate to the promotion of rural
development (especially in the areas of food security, agriculture, livestock) improvement of
the social sectors through health, education and literacy, environment (notably the fight
against desertification), opening up of remote areas with high potential, improvement of the
living conditions of the people (in particular alleviating the work burden on women), access
to safe water, job creation and training for the youth as well as action in the most deprived
communities and improved access by women and youth to the means of production.

On the basis of aspirations expressed by the people, the Government has defined its national
priorities. It has attempted to deal with most of the concerns expressed by the communities,
while focusing on desertification and the environment, the management of hydraulic
resources, decentralization and opening up of remote areas. Although not specified by the
communities, decentralization is one of the fundamental pillars of the struggle against
poverty insofar as it allows the communities to take charge of their own destiny.
Decentralized projects and programs provide vivid examples of the people's satisfaction with
participating structures they have themselves put in place to express their needs and
expectations. The promotion of good governance is one of the cardinal principles upon which
the government intends to build its poverty alleviation campaign.
 - 57 -

3.3. National Priorities Within the Framework of Poverty Alleviation.

Several developmental programs and policies have been implemented in Niger, but the
results obtained have fallen short of expectations. With the realization of these limitations
and taking into consideration the priorities expressed by the people, the Government of Niger
is today convinced that in order to deal with poverty in an effective and sustainable way, it
must target the productive sectors and factors, as well as the macro-economic aggregates.
The development of the rural sector, stabilization of the macro-economic framework and
restoration of growth, development of the social sectors and road networks, urban
development, promotion of good governance and decentralization will underpin these
actions.

3.3.1. Creation of a stable macro-economic framework as a

prerequisite for sustainable growth.

3.3.1.1. The foundations of growth

During 2001–2005, it is expected that growth will be essentially driven by the agro-pastoral
sector and the private sector.

In agriculture, irrigable land is estimated at 280,000 hectares, of which only 13,700 hectares
are currently irrigated. Irrigation efforts to tap this considerable potential would pay off in
terms of increased food security and increased exports that would lay the foundation of
sustainable economic development. In 2001 alone, 6087 hectares of land have been irrigated,
a level that had never been reached in 41 years since independence (1960–2000).

This development effort has been carried out as part of the President of the Republic’s
Special Program thanks to the HIPC Initiative resources. It will continue during the period of
execution of the poverty reduction strategy. Substantial external demand for agricultural
products from countries of the sub-region (Nigeria, Côte d’Ivoire, …) is also a considerable
advantage which Niger can use to promote growth from the agricultural sector.

In the area of livestock also, the potential cannot be ignored. In fact, despite being affected
by the severe droughts of the 1970s and 1980s, livestock is estimated at 4.5 million head and
the stock’s total value at CFAF 420 billion. The bulk of the sectors’ revenues comes from the
sale of live cattle in Niger or the sub-region. Exports from Niger to Nigeria are essentially
made up of agricultural and livestock products and they represent more than 90 percent of
total exports for cyperus, cowpeas, hides and skins, and cattle.

In the environment sector, since 2000 the government has begun implementing a policy of
promoting the production of arabic gum, associated with the fight against desertification. The
ongoing implementation of the World Bank funded project for the promotion of agro-pastoral
exports, which is part of the growth strategy, will be followed by other measures aimed at
fostering a wider application of the trade liberalization scheme within the ECOWAS.
 - 58 -

Nigeria, with its 120 millions population is obviously a key trade partner for Niger. In the last
20 years, trade with Nigeria has averaged 14 percent of imports and 20 percent of official
exports.

From 1990 to 1999, key exports to Nigeria have averaged the following growth rates in
volume: cattle (3.7 percent); goats and poultry (0.3 percent), camels (12 percent); raw hide
and skin and leather (6.0 percent); cowpeas (-6.3 percent) and onions (-6.0 percent). The
determinant factor of cattle exports to Nigeria is the under-populated sahelian zone in
Northern Niger, a comparative advantage over a similar ecological zone in Nigeria where
high population density constrains livestock development.

With respect to agriculture products, key exports include cowpeas, cyperus and onions.
Cowpeas have become the top agriculture export, replacing groundnuts in decline due to
droughts in the early seventies and agriculture policies unfavorable to export crops. By
contrast, cowpeas production has benefited from the development of new varieties, more
resistant and easier to grow. As local consumption is low, excess production can be exported.
Nigeria is a destination of choice for two reasons: on one hand, increase in the purchasing
power in Nigeria has boosted demand for cowpeas, while its local production, already
insufficient, has remained unchanged; and, on the other hand, the price differential, in
particular with Nigeria' southern regions, favors Niger.

Only recently has cyperus become an important export to Nigeria. It is mostly produced in--
and exported from--the Maradi region. A Nigerian company, NAMCO, is the main purchaser
of this commodity, using it as an input in the biscuit industry. However, knowledge on
cyperus marketing is scant at this point due to its very recent expansion.

Onion production has been strongly developed in the context of promoting counter-seasonal
crops. Several projects (including in particular the Lower Tarka Valley Project) have
provided farmers with large parcels of irrigated land and have made financing available to
them through integrated credit schemes. As a result, Niger has become a net exporter of
onions, primarily to Côte d'Ivoire, Ghana, Togo and Benin. Statistics on onion exports to
Nigeria are not well known.

It should be emphasized that the development of the agricultural potential for a return to fast
growth in Niger is synonymous with private sector development. In fact, development
models, based on a multifaceted and permanent action by the state and its agencies in
production operations, have all proven to be ineffective because of the confusion (and
conflicts of interest) between the roles of policy formulation, regulation and production.
Niger acknowledged this reality a long time ago through policy statements in favor of the
private sector, which date back to the end of the 1980s, and through the successive
liberalization policies that have been implemented.

In this respect, the government will pursue its policy of macroeconomic and fiscal
stabilization, and continue to implement the privatization program, to reorganize the financial
sector in order for growth to be financed, to improve infrastructure (roads,
 - 59 -

telecommunications, air transport, electricity, water, etc.), to simplify the regulatory

framework, to improve the legal and judicial system and to assess the achievements of the
financial sector reform program.

In sum, during the 2002–2005 period, the government intends to continue implementing a
strict budget policy that will make it possible to maintain overall demand at a level
compatible with available resources and with the international goals of poverty reduction as
well as with the regional objectives of macroeconomic stabilization.

A healthy and well developed financial sector is a prerequisite to macroeconomic growth and
stability, providing payment mechanisms to economic agents, mobilizing savings and making
financing available to investment and consumption, and therefore contributing to the
expansion of trade and increase in savings and investments. Insurance services are also a key
component that helps protect operators against all kinds of risks, such as theft, fire, and
accidents.

Decentralized financial sector (microfinance) development plays also a key role in poverty
reduction. Local financial intermediation mechanisms (such as micro-finance institutions and
the financial branch of the Post Office) help people in rural areas, small scale entrepreneurs
and the poor to protect their meager resources and obtain the small amount of financing they
need to meet their needs in education and health, to purchase seeds, to develop small scale or
micro-enterprises, and locally market their products. Insurance companies and social security
institutions offer a protection against illness and work-related injuries while providing
support to young children and senior citizens.

An analysis of the sector shows that despite the existence of financial institutions and legal
and regulatory systems, the sector remains fragile and cannot efficiently mobilize savings
and make them available to economic agents and rural communities. Thus Niger's population
in general, and its private sector in particular, have neither an adequate number nor the
appropriate type of financial services they would need to finance their activities and to
improve their standards of living.Removing such a roadblock on the path of development
requires creating conditions needed to stabilize the financial sector, make it viable and
promote its participation into wealth-generating activities.

3.3.1.2 Objectives and policies

The Government will continue its policy of stabilizing the macro-economic framework,
which has been in force since 2000 while promoting quality growth based on a better
allocation of public funds, reduction of the vulnerability of agricultural production and more
dynamism for the private sector. With this in mind, the Government has targeted an average
annual growth of 4 percent during the period 2001–2005. This growth objective would
increase per-capita income by an average of 1.2 percent annually over the period 2001–2005,
compared to a reduction of more than 1 percent between 1994 and 2000. This would result in
growth in private consumption at an average annual rate of 4 percent, in other words, an
increase of nearly 1 percent of per capita consumption.
 - 60 -

In total, through better distribution of income and public expenditure, the people would have
greater access to basic social services. For example, the Government intends to increase
schooling from 34.1 percent in 2000 to 45 percent in 2005, and health coverage from
47.6 percent in 2000 to over 60 percent in 2005.

The targeted inflation rate is 3 percent, in line with the convergence criterion established by
the WAEMU.

As far as the budget is concerned, the streamlining process undertaken in 2000 will be
strengthened and expanded to all public agencies. The Government expects to achieve a basic
primary balance (excluding HIPC expenditures) that could reach 6 percent of GDP in 2005,
compared to –7.5 percent in 1999, to concomitantly reduce the domestic arrears accumulated
in the past and to avoid the accumulation of new arrears.

To this effect, taxation will be increased from 8 percent in 2000 to 10.7 percent in 2005,
notably by way of a broadening of the tax base in order to restore fiscal equity that is more
conducive to a balanced development of the private sector. In addition, current expenditure
will be brought back to levels that are more compatible with the trends in revenues. The level
of current expenditures has therefore been targeted at 10.8 percent of GDP in 2005,
compared to 11.4 percent in 2000, while taking into account the expected increase in social
expenditure that are implied by the poverty reduction strategy. With regard to the wage bill,
the objective is to limit it to 28.7 percent of fiscal revenue in 2005, compared to
50.39 percent in 2000, by maintaining a strict policy over the wage bill while pursuing the
freeze in new civil service hiring that has been in place since 2000.

At the same time, transfers will be made to decentralized bodies to help them meet the
recurrent expenditure requirements that will be generated by the investments undertaken to
reduce poverty at the local level. Within this framework, the use of locally managed
contractual hiring in replacement of the traditional civil service recruitment will be
encouraged in order to attract the personnel necessary to achieve the dual objective of
increasing coverage and improving the quality of basic public services. With respect to
investment expenditure, the objective is to achieve a level of public investment of 7.1 percent
in 2005, compared to 5.2 percent in 2000. The choice of investments will scrupulously take
into account the priorities of the economic growth policy. With improved tax revenue
collection and a strengthened fiscal administration, total budgetary revenues revenue should
increase from 110.1 billions in 2000 to 170.3 billions in 2003 and 203.2 billions in 2005. At
the same time, fiscal revenue should increase from 81 billions in 2000 to 160.8 billions in
2003 and to 192.4 billions in 2005.

3.3.2. Promotion of rural development objectives

The high concentration of the population of Niger in the rural areas (85 percent of the
population lives in the rural areas, and at least 80 percent of that number is involved in
agriculture) shows clearly that the rural sector must constitute the main growth engine in the
short and medium term. Indeed, the agricultural sector alone accounts for 40 percent of the
 - 61 -

GDP of Niger. Agriculture must therefore serve as a springboard for economic growth in the
rural areas. Nevertheless, given the climatic uncertainties and the fragility of the ecosystem
of Niger, the focus of efforts towards agricultural development remains the proper
management of surface water and better channeling of underground water.

This strategy must be accompanied by effective measures to fight desertification in order to

preserve the productive lands bases (agriculture, livestock and forest) as well as to increase
arable land and agricultural production. These are prerequisites to promoting rural
development and to achieving and strengthening food security in the rural population. Within
the context of this national priority, specific objectives will be pursued:

With respect to agriculture, livestock, forests, fish and fauna activities, achieving and
increasing food security will rest on: improving production systems and developing
production factors; promoting irrigated agriculture; developing the trade of crops by
reinforcing marketing capacity; increasing production and income for each agriculture
commodity; further improving the current system of prevention and mitigation of food crises,
reinforcing food crisis management capacity at the regional level; promoting changes in
economic behaviors with respect to nutrition; improving the quality of food; and
strengthening research capacity.

With respect to environment, improved control of desertification and an environmental

management fostering a more integrated development of natural resources will be targeted
through: restoring and protecting the environment in order to increase the bio-mass and bio-
diversity, creating the conditions of a sustainable development of land resources for
agriculture, livestock and forestry.

With respect to other production related to the agricultural economy, the main priority is to
develop income generating activities by: improving trade and processing of agriculture
product, increasing locally manufactured agricultural equipment, and enhancing farmers’
non-farm income generating activities, including handicraft, and developing decentralized
rural credit.

Improving health and education (access to social services) and opening up remote production
and consumption areas are conditions to achieve these objectives, which could be modified
during periodic review of the PRS to reflect the emergence of new trends in rural
development (appropriate adaptation).

3.3.3. Development of the social sectors

The development of the social sector is one of the national priorities of Niger. The weak
performance in these sectors explains the country’s unfavorable ranking with respect to the
Human Development Index, in comparison to other countries. In order to reduced poverty,
access to health care, education, and safe water must be available to the most impoverished
communities.
 - 62 -

As far as education is concerned, the level of instruction severely affects the individual’s
economic status. Health however, is a key determinant of a country’s level of development.
Emphasis should therefore be placed on the condition of the most deprived communities.
Access to safe water has a direct effect on the health of the people, hence the need to ensure
that the most needy communities have access to it in urban and rural areas alike. Several
specific objectives will be pursued.

3.3.3.1 Education

The major objectives are the following: (i) increasing the gross primary school enrollment
ratio from 37 percent in 2001 to 48 percent in 2005 and 84 percent in 2015, 13 (ii) increasing
the primary school enrollment ratio in rural areas from 32 percent in 2001 to 43 percent in
2005 and 84 percent in 2015; (iii) increasing the enrollment ratio for girls from 29.6 percent
in 2001 to 42 percent in 2005 and 84 percent in 2015, with gender parity being achieved in
2005; (iv) increasing the adult literacy rate from 19.9 percent in 2001 to 28 percent in 2005
and 44 percent in 2015; (v) increasing the primary school completion ratio from 24.5 percent
in 2001 to 44 percent in 2005 and 85 percent in 2015. Achieving this objective requires
raising the first grade enrollment ratio from 40 percent in 2001 to 63 percent in 2005 and
100 percent in 2015 and increasing the primary school (CI to CM2) survival rate from
54 percent in 2001 to 69 percent in 2005 and 85 percent in 2015, (vi) increasing the gross
enrollment ratio from 13 percent in 2001 to 18 percent in 2005 and 28 percent in 2015;
(vii) increasing the proportion of enrollments in rural secondary schools from 19 percent of
overall secondary (CEG) enrollments in 2001 to 25 percent in 2005 and 49 percent in 2015;
(viii) increasing the proportion of enrollments in technical and vocational training schools
from 8 percent of secondary school enrollments in 2001 to 20 percent in 2005 and 50 percent
in 2015; (ix) steering 20 percent of secondary school students toward practical vocational
training; (x) promoting early childhood supervision and management by raising the
supervision ratio from 1 percent in 2001 to 3 percent in 2005 and 10 percent in 2015;
(xi) laying the groundwork a renovation of higher-level education.

13
It is worth noting that these targets does not mean that the international universal primary
enrolment objectives for 2015 have been abandoned. In fact, the Millennium Declaration had
decided that by 2015, “children around the world, girls and boys, will be able to complete a
full cycle of primary education and boys and girls will have equal access to all levels of
education.”. In that context, the objectives of 48 percent in 2005 and 84 percent in 2015 were
established in order to be realistic, based on an assessment of the country’s institutional
management capacities, which are currently as limiting as its financial capacities. Moreover,
the hope is that the combination of several strategies in the context of the 10-year Education
Development Program (PDDE) may help exceed the objectives for 2005, furthering progress
towards achieving the "Education for All" objective by 2015.
 - 63 -

3.3.3.2. Health

Since the 1990s, the government and its development partners are paying an increased
attention to the health sector. This is reflected in the evolution of health expenditures, which
have averaged 13 percent of the investment budget or 6.5 percent of the general budget,
between 1995 and 2000. Although some results have been achieved, most essential health
needs of the population are fare from being covered. Health service coverage is often
insufficient; infections and parasitic diseases still represent serious threats for the people’s
health. Visits to health services are falling as drugs are often out of stock and as increasing
poverty make it hard for the common man to pay the costs of health care.

Important disparities divide urban and rural areas, as well as the rich and the poor. They
show most vividly in indicators such as infant and child mortality, immunization and
availability of health services. Human resources throughout the health system are in
insufficient number and poorly distributed (lack of specialists, poor motivation of health
staff), over-centralized (35 percent stationed in Niamey). The system is further hampered by
a limited capacity to promote health research and the persistence of risky health practices,
often related to traditions (female sexual mutilation, early marriages, taboos, etc).

To eliminate these constraints, the government will pursue its effort toward an equitable
access to health services for all, in order to improve the population health status.

The Millennium Declaration recommends reducing maternal mortality by three quarters and
the mortality of children under five years of age by two thirds from the current levels.
Despite their relevance, these objectives seem unrealistic for Niger. But this unique situation
notwithstanding, the following specific objectives will be pursued as part of the PRS:
(i) increasing health coverage from 48 percent to 60 percent by 2005; (ii) increasing
vaccination coverage from 18.4 percent to 50 percent by 2004; (iii) reducing maternal and
infant-child mortality by at least 25 percent by 2004; (iv) facilitating fair access to care and
services at all levels of the system by 2004; (v) eliminating poliomyelitis by 2002; (vi)
cutting the rate of protein-energy malnutrition (PEM) in half by 2015 and eliminating
vitamin A and iodine deficiency; (vii) increasing financially affordable access for the poor to
health care and services; (viii) ensuring that essential, high-quality medicines are available at
affordable prices; (ix) expanding the number of visits to health services.

3.3.3.3. Water and sanitation

The priority objectives of the water-sanitation sector in the PRS are the following:
(i) enhancing and maintaining knowledge of water resources; (ii) increasing the surface water
mobilization rate from 1 percent to 10 percent; (iii) increasing the coverage ratio for runoff
water in rural areas to 70 percent in 2005; (iv) raising the coverage ratio for the sanitation of
rural centers to 50 percent in 2005; (v) improving the coverage ratio for safe water and
service quality in urban areas; (vi) ensuring adequate sanitation in urban areas;
(vii) supporting production sectors in collaboration with other sector stakeholders; (viii)
adapting the institutional and legal framework.
 - 64 -

3.3.4. Development of road transportation, mining, and energy

Considering the size of the territory (1,267,000 km²) and the fact that it is landlocked (the
closest sea port is over 1,000 kilometers away), opening up the country both internally and
externally is a priority. For a more economically viable development of its natural resources
in general and marketing of its agricultural products in particular, the country’s rural areas
must be opened up. This should lead to more intense construction of rural roads as well as
major highways that would serve as the backbone of the road network. Because of the mining
and energy potential, opening up all regions in the countries is also an important factor in
fighting poverty.

To this end, the priority objectives are: (i) ensuring the long term availability of investments
and developing the road network; (ii) focusing on opening up densely populated rural areas
with high economic potential; (iii) getting the population to participate in the construction
and maintenance of roads, in order to augment the positive spin-offs; (iv) enhancing the
quality of service and performance of the transportation industry; (v) improving urban
mobility and developing rural transportation; (vi) improving road safety.

As for the energy sector, the main objective will be to improve access to electricity and
reduce the consumption of wood fuel. Finally, with respect to mining development, the
objective will be to maintain the current production units and to diversify mining resources.

3.3.5. Promotion of the private sector, tourism, and handicraft

This national priority applies to several specific objectives set out in the framework program
for the development of this sector: (i) developing local resources that could potentially have a
strong impact on poverty reduction; facilitating access to financing and the creation and
development of micro, small and medium-sized enterprises; taking advantage of
opportunities offered by regional integration and satisfying the WAEMU convergence
criteria; (ii) facilitating access to modern financing for micro and small handicraft enterprises
(MPEA); developing packages comprising training, technological dissemination and market
penetration; (iii) completely liberalizing the hotel sector; tripling the number of international
tourists in three years and attracting 10 percent more tourists every year; diversifying tourism
products and facilitating access to financing in this sector.

3.3.6. Urban development

Considering the number of poor people with no resources (nearly 40 percent of the
population) who will be living in urban centers by 2010, urban development is a priority for
Niger. Improving the standards of living in urban centers will require a policy for the
development of adequate infrastructures and facilities. The strategy adopted for housing and
sanitation is to improve the standards of living of households by means of two overall
objectives: improving housing conditions, and planning urban development. Promoting the
use of wood substitution techniques in housing construction will be a priority in the context
of urban and rural towns and villages located in environmentally fragile areas.
 - 65 -

3.3.7. Promotion of good governance, the strengthening of human and

institutional capacity, and decentralization

Good governance entails “participation, transparency and accountability, efficiency and

fairness, and the rule of law. Good governance ensures that social and economic policies are
based on a broad consensus in civil society and that the voices of the most disadvantaged and
the most vulnerable are heard as part of the decision-making process concerning the
allocation of development resources.” In short, good governance rests on the following key
components: participation, rule of law, transparency, capacity to adjust, consensus building,
fairness, reform of the judicial system, accountability, restoration of social peace, and
consolidation of civil peace. However the coming into existence of good governance also
rests on the meeting of specific objectives.

3.3.7.1 Political governance

The specific objectives in support of the democratic process are as follows: strengthening the
capacities of civil society organizations for effective social control; strengthening and
consolidating the state of law; promoting the civic culture of citizens at all levels, for
responsible participation in the management of the nation’s affairs; strengthening the
political and democratic culture of the citizens, in order to create conditions for a peaceful
political life; reinforcing the republican nature of the army.

3.3.7.2. Economic governance

As for economic governance, the objectives will be as follows: reviewing public

expenditures in all sectors; reforming public procurement; establishing commissions or
committees responsible for controlling and auditing the activities of the various government
administrations; drafting and submitting budget review laws to the Supreme Court’s audit
office (Chamber of Accounts); strengthening the capacity of the state to manage and control
public finances; giving the Chamber of Accounts the adequate means to control the
management of public finances and the funding of political parties.

3.3.7.3. Local governance and decentralization

The following objectives are being pursued as part of the decentralization and the
establishment of sound local governments: (i) expanding, strengthening and consolidating
democracy and good governance at the local level, (ii) organizing local elections and
establishing the future local governments; (iii) empowering grassroots communities in
promoting local development; bringing government closer to the people; (iv) creating
homogenous economic, social and cultural development centers.
3.3.7.4. Strengthening human and institutional capacities
The main objective in this regard will be to strengthen the management and institutional
capacities of the state, of decentralized agencies and civil society. It translates into the
following specific objectives: improving the administration by reorganizing administrative
structures and human resources around the essential missions of the state; refocusing the
priority functions of the state on the management of economic development; stimulating
 - 66 -

economic growth by harnessing the macro-economic framework and sector policies that have
a direct impact on poverty reduction (health, education, employment, income-generating
activities, etc.); reforming the public service of Niger in an effort to improve its performance
and strengthen the management of national resources; modernizing the administration so that
it is more apt to meet the challenges ahead, notably the implementation of the PRS;
guaranteeing the effective participation of the people and territorial communities in the
management of the country’s development through the decentralization and/or
deconcentration of state agencies and economic management tools and instruments;
empowering civil society to ensure that it performs social functions and plays a role of
mediation between individuals and the state.
 - 67 -

PART III:

STRATEGIC POLICY ORIENTATIONS

AND

PRIORITY ACTIONS 2000-04

 - 68 -

IV. STRATEGIES FOR POVERTY REDUCTION TO THE YEAR 2015

4.1. Strategy Principles

The poverty reduction strategy in Niger is based on three principles: taking gender into
consideration, redefining the role of various stakeholders and promoting good governance.

4.1.1. Gender considerations

The government believes that poverty reduction requires taking full advantage of all the
facets of the nation. To this end, it is necessary to create favorable conditions based on an
analysis of social gender relations. This will make it possible to highlight and explain some
of the disparities noted in the diagnostic phase, stemming from differences in the situation of
men and women. The strategies to be developed will be based on the elimination of obstacles
that make it difficult for women to meet their needs, in order to create necessary conditions
for their participation in the nation's development process.

4.1.2. Promoting good governance

Niger has been involved in a democratic process for about a decade. The hurdles it has faced
make the consolidation of this process even more compelling. Democracy cannot be
achieved in a sustainable manner if the standards of living of the majority of the population
are not improved. Such an improvement demands the promotion and implementation of good
governance in all its forms (political, economic, etc.). It is a continuous process to which the
government is committed.

4.1.3. Redefining the role of stakeholders

Defining effective and sustainable poverty reduction strategies requires the implementation
of the broadest participatory approach possible which must involve all stakeholders, i.e. the
civil society, the private sector, political parties, development partners, etc. During the
development of the PRS, the involvement of all socio-professional categories gave to a wide
range of stakeholders the opportunity, at every stage, to voice their criticisms and concerns.
For a successful implementation of the strategy there will also be a need to mobilize all
stakeholders and to redefine their role.

4.1.3.1. The State

The poverty reduction strategy must consider the evolution of the state's role subsequent to
the profound structural reforms implemented in the 90s, and to the international context. This
evolution includes, among others, the relinquishing by the state of some of its roles to the
private sector as part of its gradual disengagement, the implementation of the private sector
promotion policy, the liberalization of the economy, and the emergence of a civil society that
is becoming more and more involved in all matters concerning the nation.
 - 69 -

However, implementation of the poverty reduction strategy requires maintaining the state's
strategic and exclusive role in designing policies, development strategies and standards
initiatives, laws and regulations to govern economic activity. As a result, the state's role as
arbiter, regulator and promoter of a favorable investment climate should be strengthened.

The state should assume its new role mainly in areas directly under its responsibility and
which have a direct impact on poverty, namely: rural development, education, health,
infrastructures. This role will further enhance the state's function of efficiently allocating
public resources, within the context of a poverty reduction strategy that seeks to reduce
inequalities. The state will strive to avoid slippage and worsening the inequalities.

4.1.3.2. The population

Reducing poverty and seeking sustainable results require the involvement of all stakeholders,
chiefly the target population groups. This new form of participation demands that population
groups play a significantly more active role at all the stages of the process. This may be
achieved through more extensive consultation and dialogue with the target population groups
in order to record their perceptions of poverty, its causes and determinants, as well as
strategies and measures to be implemented by the state, communities, projects, NGOs and
associations, and other stakeholders. This approach will enable the population groups to
assume greater responsibilities for measures and strategies.

4.1.3.3. The civil society

The formulation and implementation of economic and social policies have very often been
based on two fundamental institutions: the market and the state. Since the priority given to
the law of supply and demand has shown limits in a certain number of cases, the state has
intervened to correct market deficiencies. However, the persistence of areas where neither the
market nor the state can produce satisfactory results has created the need to resort to a third
key institution commonly called the civil society.

The main comparative advantages attributed to NGOs lay notably, on the one hand, in the
affinity that can develop between them and grassroots communities because of their
proximity to the recipient population groups, and on the other hand their readiness to ensure
that results from development activities are sustained after the project has closed.

However, it must be pointed out that the rapid expansion of the staff of these organizations in
Niger overshadows an important qualitative dimension inasmuch as barely a quarter of
established organizations are considered operational because of a lack of institutional and
organizational capacity.
 - 70 -

Box 3: The civil society in the development and poverty reduction process in Niger.
The policy implemented by Niger to promote a strong civil society comprises two main phases:

1st phase: emergence period. The main components of this phase are:

- the creation of an incentive legal, administrative and fiscal framework with a flexible law enacted in 1984.
In the meantime, the state decided to grant tax preference to NGOs. This preference consisted in subsidies
and tax exemptions.
- the organization of a seminar in 1990 on the emergence of Niger's NGOs and the launching of a biennial
roundtable process on State/Partners in Development from 1994 to 1996.

2nd phase: period of consultation and effective involvement of NGOs in development strategies.
The main components of this phase are:

- the participation of civil society organizations in some international negotiations and conferences beside
government delegations;
- the definition of an action framework for development NGOs and associations, which was the topic of a
conference held from June 23 – 26, 2000 in Niamey;
- the determination of the role of development NGOs and associations in poverty reduction strategies
during a conference organized from June 16 – 21, 2001 in Tahoua.

These various meetings have notably defined some conditions necessary for greater involvement of NGOs
in the development process. They are:

- the development and implementation of a capacity building program for development NGOs and
associations as well as their supervisory authority;
- the creation of an information system on development NGOs and associations;
- the involvement of development NGOs and associations in the decentralization process;
- the development of lobbying actions by NGOs;
- the adoption and implementation of a code of conduct for NGOs;
- the harnessing of opportunities provided by the HIPC Initiative, the 20/20 Initiative, and the Cotonou
EU/ACP Agreement;
- the creation of a consultation chamber for NGOs;
- the development and strengthening of partnerships with the state, namely the concerted formulation
and implementation of poverty reduction strategies.

4.1.3.4. The Private Sector

The state’s withdrawal from the business arena and the refocusing of its role on a limited
number of activities, initiated with the launching of the structural adjustment process, put the
private sector at the center of Niger’s economic development. This position has provided the
private sector with every opportunity to play the lead role, namely in the areas of production
and commercial activities. Unfortunately, it is not yet dynamic enough to take over. To
remedy this situation, the government has set up a private sector development program, the
objective of which is to have the private sector play a key role in economic growth and
poverty alleviation.
 - 71 -

4.1.3.5. Development partners

For the poverty reduction strategy to succeed, partners must tailor their actions to fit the
prescribed framework for their participation. Development partners share equal responsibility
with Niger authorities for the achieving the ambitious goals set by the Millennium Summit.
In fact, it is only through their optimal mobilization that Niger will be able to meet these
goals or even come close.

To that end, the supports of development partners will help: mobilize complementary
resources needed for poverty reduction in particular and development in general; effectively
implement measures through information sharing on the latest technological innovations, and
human capacity building; lobby financial institutions or international meetings for technical
assistance.

4.2. Comprehensive Poverty Reduction Strategy in Niger by the Year 2015

4.2.1. The PRS macroeconomic framework

Work on the development of the PRS takes place in a context of ongoing implementation of
the 2000–2003 program supported by the Poverty Reduction and Growth Facility (PRGF) of
the International Monetary Fund (IMF) and the preparation of new economic management
monitoring instruments, particularly a macroeconomic projection model and a medium term
budget framework methodology based on the programmatic approach and consistent with
macroeconomic objectives.

In this respect, the selected macroeconomic framework is realistically confined to the 2001–
2005 period, and it fully takes into account the program objectives supported by the PRGF,
inspired by the interim PRSP, and is based on some assumptions, especially the
implementation of economic reforms of the current economic and financial program and of
the Letter of Development Policy.

The PRS macroeconomic framework is predicated on a range of growth scenarios reflecting

both the historical evolution and the government’s commitment to alleviate poverty through
adequate economic policies. The lower limit of the range of growth is the average annual rate
of growth during 1994–2000 following the CFA franc devaluation, i.e. 2.5 percent,
corresponding to a low case, slow growth scenario. The upper limit is an average annual rate
of growth of 6 percent, a high case, fast growth scenario such as would be required to alter
significantly the spread of poverty. Within the range, the current economic and financial
program with its corresponding 4 percent average growth over the period has been retained
as the PRS baseline.

4.2.1.1. Baseline scenario

In the context of the program executed by the government with the support of the Bretton
Woods Institutions, Niger’s economy would grow at an average 4 percent over the 2001
 - 72 -

2005. Economic recovery would come from a higher level of activities in agriculture,
assuming favorable climatic conditions and better harnessing of ground water, infrastructure
rehabilitation and construction and a dynamic service sector (trade, transport, etc.). Given the
current economic conditions, achieving such a growth rate would require an investment rate
of 15 percent by the year 2005 (against 10.4 percent in 2000). The government intends to
support such an effort by increasing public investment from 5 percent in 2000 to 7 percent in
2005.

If agriculture production grows as expected, export growth should average 3.3 percent
despite an international environment clouded by a deterioration of the terms of trade. With
respect to public finance, the government is committed to a 21 percent increase in budget
revenues in 2001 and 2002. Moreover it will pursue its effort, in particular toward improving
basic social services (education, health, water) and reducing domestic and external arrears,
which should increase expenditure significantly.

The baseline scenario forecasts an increase in the revenue-to-GDP ratio (from 10.7 percent in
2002 to 11.9 percent in 2005), a stabilization of expenditure at about 18 percent of GDP and
an improvement of the overall budget deficit from 7.7 percent of GDP in 2002 to 6 percent in
2005.

Given the population growth (3.3 percent), the 4 percent growth expected in the context of
this program would result in a 0.7 percent net increase of the income per capita, or a
maximum reduction of poverty by 2 points14 over the next four years.

4.2.1.2. Short and medium-term perspective in a slow growth scenario

The above scenario, although realistic and conservative, is not without risks: adverse weather
and international environment could result in less favorable outcomes, ruining the chances of
achieving government’s objectives during the life of the program and of the PRSP.
Observation of performance in recent years indicates that growth remains volatile, given
Niger's sensitivity to natural constraints (rainfall) and erratic changes in world prices for its
export products (uranium cowpeas, livestock). For instance, GDP growth has fluctuated
between a high of 10 percent in 1990 and a low of –1 percent (2000) and has just been
revised upwards at 5.1 percent in 2001. Given such volatility, macroeconomic and financial
performances, even when they are encouraging, have little tangible, durable impact on the
standards of living of household, and therefore on poverty.

14
A gain of one point in per capita income is estimated to translate approximately into a gain
of one point in per capita consumption and 0.67 points in terms of poverty reduction. These
analyses take into account the consumption elasticity with respect to income, as well as the
poverty elasticity with respect to per capita consumption. In turn, these parameters depend
upon the sector distribution of growth and therefore a concomitant distribution of incomes.
 - 73 -

Furthermore, with a slowdown in the world economy and related uncertainty made worse by
the September 11, 2001 events, trends in the prices of primary products are not encouraging.
Niger is affected by a constant decline in uranium exports. Given such trends, one cannot
exclude a slow growth scenario, with a 2.5 percent growth over the 2002–2005 period, lower
than expected in the context of the above program.

Simulation results (see table on the slow growth scenario) indicate that slow growth would
severely compromise macroeconomic and poverty reduction objectives. An average
2.5 percent annual growth of GDP, combined with a 3.3 percent population growth would
result in a reduction of the per capita income and consumption, leading to deterioration of the
poverty rate and of the standards of living.

In this context, domestic budgetary resources would be significantly lower than in the
baseline scenario. In order to maintain the stability of the macroeconomic framework,
expenditure would be lowered to attain the same overall budget balance and basic budget
balance than in the baseline scenario. In that extent, the government will implement a fiscal
policy compatible with the objectives of the stabilization of the macroeconomic framework.

Nevertheless, the appropriations for sectors contributing the most to poverty reduction will
be secured. Non-priority sectors (classified as ‘others’ in the medium-term expenditure
framework) will mainly be affected by the adjustment.

4.2.1.3. Fast growth scenario

Niger's government understands the risks associated with the current economic environment,
and is determined to deploy the level of efforts required to implement a forceful medium
term strategy that could reverse these tendencies, diversify the economy, reduce poverty and
improve social indicators. To better inform such a strategy, the government has engaged into
an intensive reflection process on the sources of a more sustainable growth with greater
impact on the population as a whole. During the PRSP preparation, it has consulted with
representatives of all social categories in the country and has laid down the foundations of an
accelerated growth and poverty reduction strategy. The key strategic elements are:
(i) macroeconomic stability, (ii) strengthening the human capital and economic and social
infrastructures, (iii) liberalizing market of goods and infrastructure services
(telecommunications, energy, road transport etc.) and factors (labor and financial market) in
the context of globalization and regional integration (WAEMU and ECOWAS).

The government also plans further improvements in governance with policies strengthening
democratic institutions. Similarly, it intends to foster the emergence of an environment
enabling the private sector to become the true engine of growth (design of a private sector
development strategy). Finally, the government will provide a strong social sectors
(education, health, rural) focus to its infrastructures development program designed to
facilitate the development of sectors with strong growth potential such as agriculture, tourism
and handicraft.
 - 74 -

In this context, the GDP growth rate would increase from 5 percent in 2001 to 6 percent in
2005, driven by a more robust agriculture sector, private sector promotion, and
infrastructures rehabilitation and construction (see the foundation of growth,
paragraph 3.3.1.1). Investment rate would increase to 15 percent in 2005, of which
6.7 percent in public investment, and the export rate would reach 17 percent over the same
period. Assuming 3.3 percent of population growth, such a voluntarist scenario would result
in a per capita growth rate reaching at least 1.2 percent over the period. This in turn would
translate into a net gain of 4 to 5 points in poverty incidence reduction between 2002 and
2005.

In this scenario, with more revenue, the government could spend more. As a matter of fact, if
the assumptions of this scenario materialize, government revenue will be higher than in the
baseline scenario over 2003-05. But the policy envisaged by the authorities is to refuse to
increase expenditure in order to improve budgetary balances and avoid in the future the
problems generated by recurrent expenditure. In view of the importance for the government
to clean up its relations with the private sector and in order to stimulate the economy, these
additional resources will allow to accelerate the reduction of domestic arrears and to diminish
the government indebtness vis-à-vis the banking system.

In sum, in the three scenarii the fiscal policy aims at improving the budgetary balances in
order to strengthen the macroeconomic stability and preserving in the same time expenditure
to reduce poverty.

The PRS process undertaken by the government is participative and iterative, an approach
that government will pursue to update and adjust the strategy. In this context, it plans to
finalize in 2002 an exhaustive study on the sources of growth, allowing a better definition of
priorities and greater consistency among sector strategies. Simultaneously, the government
has started to strengthen the economic management capacity, establishing an Economic
Management Technical Support Group (GAGE). The latter has started working toward
making available economic monitoring instruments, including a macro-economic framework
model and an economic, monetary and financial database.
 - 75 -

Box 4: Public finance stabilization measures in 2000

Several fiscal consolidation measures were adopted in 2000. They involve:

- strictly separating previous budget exercises from that of 2000 and suspending domestic
arrears payments accumulated as of December 31, 1999 in order to audit the regularity of
accounts payables;
- creating a Domestic Public Debt Amortization Center (Centre d’Amortissement de la
Dette Intérieure de l’Etat—C.A.D.I.E) with a view to implementing the domestic arrears
settlement plan;
- developing a new mechanism to control the rhythm of budgetary commitments;
- eliminating exceptional practices in budgetary execution, notably advance payments;
- improving the regular monitoring of budgetary execution;
- preparing a rigorous budget on the basis of more realistic mobilizable resources
assumptions;
- reinforcing the management autonomy of public corporations in the telephone, water and
electricity sectors by granting them the right to subject government administrations to the
regulations and measures applied to their private sector customers in matters of debt
recovery;
- regularly closing government accounts and taking the initial measures to reestablish
parliamentary control over budget management by forwarding to the National Assembly
settlement bills for 1997, 1998 and 1999, after a hiatus of more than ten years;
- gradually reestablishing discipline in the accounting of treasury transactions.

4.2.1.4. Financial sector and growth strategy

Given that appropriate financing mechanisms are essential to the growth strategy,
government will pay a special attention to the evaluation of the financial sector reform
program to be supported by the World Bank. The program is made of six strategic
components, each supported by several actions and measures:

Improving the environment in which financial institutions operate. This implies the
settlement by the state of its due obligations through securitizing the debts of the banking and
insurance sectors, and improving the legal environment. To that effect, a study will be
undertaken towards establishing concordance between the national legal system and the
regional OHADA framework. The national regulatory framework will be revised. Another
study will contribute to the preparation of new laws regarding loan recovery, credit
guaranties and contracts. Other measures will also contribute to improvements in the sector
environment, including strengthening the judiciary inspectorate, organizing a round table on
the justice system and financial institutions, and training judiciary staff on banking, insurance
and stock exchange;
 - 76 -

(b) Banking sector restructuring, including building the capacity of commercial bank and
of the Directorate of Money, Credit and Savings in the Ministry of Finance, and
completing the restructuring of the Crédit du Niger (CDN) and the Caisse de Prêts
aux Collectivités Territoriales (CPCT). This will entail the restructuring of the
balance sheet these two institutions, estimating the actual cost and sources of
financing for the restructuring, completing a study to prepare a strategy towards the
financing of housing and local collectivities, which should eventually lead to a
broadening the mandate of both institutions while making sure that they can deliver it.
Also, a market study on the financing of SMEs and SMIs as well as of real estate
transactions will be envisaged.

(c) Developing the insurance sector will include an awareness and information campaign
on the role of insurance companies that would be an important first step in developing
the insurance market; completing the restructuring of insurance companies,
strengthening their capacity as well as the capacity of the Directorate of Insurance
Companies Supervision in the Ministry of Finance and that of the insurers’
association.

(d) Developing local financial intermediation including an in-depth audit of micro-

finance institutions that would identify potential problems and conditions for their
viability and sustainability. The national micro-finance development strategy as well
as the restructuring of the National Post Office and Savings Bank (ONPE) will be
implemented. The Restructuring of the Office will rehabilitate its savings bank and
postal checks branches and lay the foundation for their merger into a new branch of
the post office with separate legal personality and internal organization, new
accounting and information systems and separate management and auditing
procedures. Since financial services are offered in postal offices, other postal services
(mail, transfers, etc.) will be restructured simultaneously, with accompanying public
information campaigns.

(e) Social Security System reform, including an actuarial audit, internal restructuring of
CNSS, and preparation and implementation of a social security strategy in Niger. The
reform strategy will be based on the review of the existing system (internal
organization and management, the structure of social security contributions, service
delivery etc.), introduction of capitalization in addition to the pay-as-you-go system,
extension to new beneficiaries and introduction of new products.

(f) Broadening the scope of the financial sector, based on a long term financing supply
and demand study to identify how financial institutions could promote promising
investments, a study on the financing of SMEs and SMIs as well as an information
campaign on the opportunities offered by the regional financial market to national
economic operators (companies and individuals) to encourage their fuller
participation in that market as it constitutes an appropriate framework for the
mobilization of long term resources needed to finance the national economy.
 - 77 -

A specific timetable established for the duration of the program will guide the execution of
actions and measures included in this strategy.

4.2.2. Development of Production Sectors Strategies

4.2.2.1. The rural sector and food security

In the face of all the challenges to be met in the area of rural development and food security,
the overall goal is to contribute to the improvement of the standards of living of the
population.

The choice of strategies to be developed in order to achieve the overall goal must take into
account the specific context of a hostile natural environment and the scarcity of natural and
financial resources in Niger, requiring very tight management. The strategies must also take
into consideration the existing potential, notably the 15 million ha of arable land and 270,000
ha of irrigable land, as well as a livestock inventory of approximately 4.5 million heads with
nearly 60 million ha of potential grazing area.

Any rural development strategy to be implemented must above all seek to minimize if not
break with the dependence of rural production (agricultural and pastoral in particular) on the
highly uncertain rainfall cycle. In the medium and long term, strategies will have to be
geared towards improving irrigated farming, which is necessarily conditional upon a policy
of water resource mobilization.

It is worth recalling the strategic options envisaged and sometimes implemented by the
authorities namely through the Guiding Principles for a Rural Development Policy for Niger
(Principes Directeurs d’une Politique de Développement Rural pour le Niger) in 1992; the
National Environment Plan for a Sustainable Development (Plan National de
l’Environnement pour un Développement Durable, PNEDD) in 1998; the Framework
Program to Fight Poverty (Programme cadre de lutte contre la pauvreté) in 1998; the
Sustainable Agricultural Growth Strategy (Stratégie de Croissance Agricole Durable) in
1999; the Food Security Operational Strategy for Niger (Stratégie Opérationnelle de Sécurité
Alimentaire pour le Niger SOSA) in 2000; development strategies for irrigation and runoff
water collection in 2001; the Framework Paper for the Rehabilitation of the Livestock
Industry in Niger (Document cadre pour la relance du secteur de l’élevage au Niger) in
2001; the Development and Microfinance Strategy (Stratégie de Développement et de la
micro finance) in 2001; the Water and Sanitation Policy and Strategies (Politique et
Stratégies pour l’Eau et l’Assainissement); the National Comprehensive Food Security
Program (Programme National global sécurité alimentaire) starting in 2002; the Food
Security National Strategy (Stratégie Nationale de Sécurité alimentaire) starting in 2002 ; the
National Integrated Research Extension Program (Programme National intégré de Recherche
Vulgarisation); the Agricultural Research Long Term Plan (Plan à long terme de la
Recherche Agronomique); the National Action Plan on Soil Fertility (Plan d’Action National
sur la Fertilité des sols) and runoff water collection, and the National Action Plan on
 - 78 -

Desertification Control (Plan d’Action National de Lutte Contre la Désertification). In

addition, a rural development strategy will be designed in 2002.

From the strategic orientations provided by these documents as well as on the basis of the
diagnosis presented in this document, the following strategic pillars have been identified as
areas of priority: the expansion of agro-pastoral production; the fight against desertification
and natural resource management; le development of productive activities related to the rural
economy (other income generating activities).

To achieve sustainable development in the rural sector, an increase in and a diversification of

agricultural, pastoral, forest and fish production, biodiversity conservation will be considered
according to the agro-ecological zones of Niger.

To complement these opportunities, the development of income generating activities in rural

areas, namely by means of processing and marketing agro-sylvo-pastoral products, is likely
to significantly improve and increase the income of rural populations. However, to
complement and support all of these strategies, a financing system adapted to the rural world
is indispensable to Niger. In the country's current context, credit granting decentralized
financial systems (DFS) and local savings must be complemented by financial systems
devoted to bringing industry into rural areas, including the agro-processing industry.

4.2.2.2. Road transport, mines, and energy

Road transport contributes to reducing poverty by fostering economic growth and

complementing the bulk of activities targeting poverty. It also plays an important role in food
security and in providing access to basic services.

For the implementation of these goals, the selected strategies aim to (i) improve road
maintenance programming and performance methods; (ii) ensure performance regularity;
(iii) build rural roads and national roads, the construction of which has a positive impact on
the standards of living of the population; (iv) involve recipient population groups in project
implementation; (v) design and implement a national transport plan; (vi) liberalize the
industry by eliminating institutional barriers and improve the transport logistic chain;
(vii) strengthen the supervision and testing of equipment, improve the public information
system, education and awareness; (viii) promote means of intermediary non-motor transport
and mass transit.

The mines and energy sectors have potential which can bring about qualitative
transformations in the economy to the point of serving as a lever for poverty reduction,
particularly through the development and promotion of new and renewable energy sources
(solar, wind, etc.) and the potential of mines in terms of inputs. The following strategies have
therefore been adopted: (i) reform of the energy sector; (ii) promotion of alternative fuel to
wood fuel; (iii) creation of competitive conditions in the uranium sector; (iv) exploitation of
substances that can be used as input in the agricultural sector.
 - 79 -

4.2.2.3. The private sector, tourism, and handicraft

The private sector, handicraft and tourism are three sectors with an important job creation
and income generating potential; they thus constitute a significant lever in the revitalization
of economic growth in Niger.

The program strategies will concentrate on the following actions: (i) creating an incentive
institutional and legal environment; (ii) improving the organizational autonomy of the private
sector; (iii) supporting the creation and development of private enterprises; (iv) developing
human resources and improving managerial and technological capacities; (v) developing
local resources; (vi) promoting and developing regional integration opportunities;
(vii) consolidating the banking and financial industry; (viii) accelerating the privatization
process of public corporations; (ix) laying the foundations for developing pleasure tourism
and eco-tourism; putting Niger on the consumer market using the expertise of private tourism
operators; (x) promoting handicraft through the demand and supply of user sectors;
promoting craft products among the population of Niger. Finally specific events such as
conferences, forums, etc. will be organized in collaboration with private sectors partners to
better publicize Niger’s opportunities, assets and potential for investments in the areas of
tourism, handicraft, food processing and infrastructure services.

4.2.3. Securing the Poor 's Access to Basic Social Services

The development of social sectors is one of the national priorities of Niger. The weakness of
indicators in these sectors explains the unenviable position of the country in the world
community, based on the Human Development Index. To improve the performance of the
social sectors therefore, it is necessary to ensure that the most disadvantaged groups have
access to health care, education and safe water.

4.2.3.1. Education

Education is an indispensable tool that will enable citizens to pursue the ideals of peace,
freedom, social justice, and to aspire to a state of well being, and in so doing break away
from poverty. Education is a continuous process of the human development, of knowledge
and skills with a view to ensuring full participation in sustainable development.

To combat poverty, through education the government will implement strategies geared
towards: developing basic education which constitutes the educational level that is the most
beneficial to the nation, notably to the most disadvantaged groups; building an educational
system that can better develop human resources for a harmonious economic, social and
cultural development of the country; developing physical, moral and intellectual skills;
improving training for social and professional integration and the full enjoyment of
citizenship.

The Ten-Year Education Development Program (Programme Décennal de Développement

de l’Education, PDDE) focuses specifically on the quantitative and qualitative improvement
 - 80 -

of the education and training of the most disadvantaged layers of society, namely rural
dwellers and particularly women, in order to actively reduce poverty. Thus, the priority given
to basic education is justified by the fact that this level is the most beneficial to society and
notably to disadvantaged groups.

Conscious of the difficulty of implementing strategic measures in a country where limited

resources, a high illiteracy rate and poor sector management capacities constitute major
constraints, Niger has undertaken a quest for the most cost-efficient solutions through a
rational choice of investment priorities and adequate planning of reforms to be implemented.

A main goal is to develop partnerships in order to leverage the resources of the education
sector (parents, communities, territorial communities, NGOs, private sector, etc.) and to
create conditions for accountability and better involvement of communities receiving
educational services in expressing their needs and implementing appropriate solutions.

4.2.3.2. Water and sanitation

Sector policies and strategies defined by the government of Niger in its National Water
Program (Programme Hydraulique National, PHN) on water and sanitation are spelled out in
a medium-term (5 years) and a long-term (10 years) program whose priorities are: improving
knowledge on water resources so as to manage and protect them, and to preserve the
environment; meeting the water needs of the population in order to improve the health
situation and to prevent water related problems (supply of safe water, rural and urban
sanitation, anti-erosion protection against flooding and drought and against water-borne
diseases and pollution); production sector support (pastoral hydraulics, rain-fed crops,
agricultural water management, fishing and fish-farming, industry and mines, hydro-
electricity, navigation); adaptation of the institutional and legal framework (creation of water
management units, implementation of the Water Regime and other statutory instruments
relating to water); gradual transfer of responsibilities and government structures to local
communities and the private sector.

4.2.3.3. Health, HIV/AIDS, and the population

4.2.3.3.1. Health

The strategy for this sector will be based on the improvement of health conditions for the
most vulnerable (the poor) by: (i) improving supply and demand as well as the quality of
services and health care for the poorest groups, and reducing morbidity and mortality
associated with major diseases; (ii) developing an equitable policy for access to essential
services and care; (iii) creating a suitable health environment and promoting health
information; (iv) pursuing decentralization of health services to ensure better involvement
and effective accountability of communities in the management of health measures;
(v) increasing the availability of resources and pursuing public expenditure reviews to assess
the cost and analyze its impact on beneficiaries.
 - 81 -

4.2.3.3.2. HIV/AIDS

In the absence of a national HIV/AIDS policy, the government has used the context of the
PRS to initiate a strategic planning process as a first step towards the implementation of a
national strategic plan that would address some of the shortcomings already identified. The
main deficiencies are: absence of a national policy master plan and of a legal framework
governing the fight against the infection; misunderstanding of the actual dimension of the
epidemic; the lack of integration of STIs to the plant based treatments offered in health
centers; uncertain condoms availability and accessibility; IEC messages not always adapted
to the social and culture contact and ill adapted dissemination channels; weak if not absence
implication of other sectors outside health in the fight against AIDS (Ministry, civil society
including communities, development program and project, production facilities); non
accounting for the aspirations of persons living with HIV/AIDS and their families in
designing and implementing AIDS program; and absence of a system to assist, including in
social and economic terms, people living with HIV/AIDS.

The strategy will aim to ensure the accessibility to health units, and the integration of
STI/AIDS services. The goal will also be to encourage greater coordination and cross-
support among interventions. Its implementation will require the involvement of stakeholders
at all levels.

4.2.3.3.3. The population

Today, the major challenge lies in identifying actions that could bring sustainable solutions to
some of the difficult problems currently faced by the country: harmonious economic, social
and cultural development in a context of high demographic growth; an alarming health
situation with a mostly illiterate population; a constantly deteriorating environment with an
impoverished economy.
In keeping with the findings of the International Conference on Population and Sustainable
Development (ICPD, held in Cairo in 1994) and the guidelines of the Government's General
Policy Statement, Population Program will fall within the framework of the PRS.

Therefore the population strategy will aim essentially at: i) creating conditions for all couples
and individuals to enjoy better health with regard to reproductive health, including minimum
risk pregnancy, contraception, youth and teenage sexual health; creating an environment
conducive to the improvement of the status of women in terms of equity and equal
opportunity; improving the production and use of reliable statistics for accurate assessment of
relationships between population and development in poverty reduction strategies.

4.2.3.4. Access to safe drinking water

The commitment to meet water needs has led authorities to adopt a policy based on
principles defined during the Conference on Water and Environment held in Dublin (Ireland)
in January 1999 dealing with the development and integrated management of water
resources. This strategy will make it possible to implement one of the decisions adopted at
 - 82 -

the Millennium Summit on Development and Poverty Elimination and which called for a
"reduction by half", by the year 2015, the number of people who have no access to safe
drinking water or who cannot afford it.

The major objective is to improve water resource development. This will be achieved
through the quality and quantity control of potentially available water, the promotion of
village-level water schemes, and the reinforcement and improvement of actions in the sector.

4.2.3.5. Urban development

Growing urbanization and the increased need for facilities imply better recognition of urban
development in the poverty reduction strategy. These trends require mechanisms of high labor
intensity and optimal use of local resources; they should entail, on the one hand the expansion
of temporary employment in urban areas and, on the other hand, the implementation of useful
economic and social projects.

To meet these objectives, the following strategies have been selected: (i) setting up an
adequate institutional framework and improving the urban structure; (ii) developing a social
housing policy; (iii) designing and implementing sanitation and waste disposal master plans.

4.2.4. Promotion of good governance and strengthening human and

institutional capacity and decentralization

4.2.4.1. Political governance

The national guidelines on governance, democratization and respect for the rule of law stem
from fundamental instruments and major policy papers, namely the Constitution of the 5th
Republic, the Charter of political parties, the Electoral Code, the general policy statement of
the Prime Minister and head of government, etc.

They hinge on the following strategies: (i) building and consolidating the rule of law;
(ii) promoting and defending human rights and civil liberties; (iii) promoting and
consolidating civil peace; (iv) reforming the legal system and strengthening the operational
capacities of the National Human Rights and Basic Freedoms Commission; (v) developing
and implementing a civic and political training program for the army and promoting a
democratic and civic culture; (vi) strengthening the operational capacities of the National
Social Dialogue Commission (CNDS); (vii) pursuing the decentralization process.

4.2.4.2. Economic governance

In the area of economic governance, the following strategies will be implemented:

(i) carrying out prospective studies on Niger society; (ii) establishing a more suitable and
operational procurement central board; (iii) undertaking a general study to better define
growth opportunities for state resources (tax base broadening); (iv) tax and duty collection;
(v) fraud control; exemption; etc.; (vi) strengthening the institutional and legal apparatus for
 - 83 -

stimulating private investments; (vii) continuing the privatization of corporations in the

production, trade and competitive sectors; (viii) creating mechanisms for the systematic
monitoring of public funds.

4.2.4.3. Local governance and decentralization

The goals set out in this area will be achieved by implementing the following strategies:
(i) the definition of institutional powers and the establishment of various decentralization
levels, (ii) the effective transfer of the decision-making power to the decentralized entities,
(iii) the promotion of decentralized cooperation and improvement of grass roots partnerships;
(iv) information, awareness development and training of national life stakeholders as well as
the pursuit of reforms.

4.2.4.4. Transparency and combating corruption

The ongoing reforms, mainly those dealing with public finance management, include
important measures that should foster accountability, transparency, and efficiency in resource
allocation, public expenditure management and delivery of public services.

The population and the civil society will be better trained and will be involved in the
formulation, reform and implementation of macro-economic policies. The strategies
implemented will aim at: (i) ensuring citizens' involvement in budgeting, controlling
expenditures and monitoring delivery of public services; (ii) increasing the capacity of
communities and their organizations to take part in the budgeting process, control
expenditures, and monitor delivery (quality, quantity, efficiency); (iii) demystifying budgets
and conducting analyses to foster information exchange and debates in parliament, the media
and civil society.
To complement the poverty reduction strategy, the procurement code will be reformed. The
goal here is to help to set up conditions conducive to a better use of public funds and to build
the foundations of a credible contracting system, thus contributing to the establishment of
healthy relations among partners.

4.2.4.5. Building human and institutional capacities

The assessment of the various development policies and strategies conducted in Niger reveals
that the substandard performance recorded is partly due to the poor institutional and human
capacities of the main development stakeholders (central government, decentralized
administration, private sector and civil society). In other words, the economic performance of
a country like Niger is closely linked to its institutional and human capacities, the relevance
of its strategic choices and its management efficiency. Therefore, for any sustainable
development policy or strategy to succeed, it must hinge on the triad of "relevant and
participatory economic policy, efficient institutions, and good governance".
 - 84 -

A true sustainable development strategy in Niger also has to be stated in terms of building
institutional and human capacities in the design, implementation and monitoring/evaluation
of development and poverty control policies.

4.2.4.6. Information and communication technology development

The goal is to encourage access to information and knowledge within the framework of
poverty reduction. In this context, it is necessary to support the development of Information
and Communications Technologies in all activity areas so as to make them more available to
disadvantaged communities both in rural and urban areas.

4.3. Risks to the Strategy

In implementing the PRS, it will be necessary to take into account a series of constraints that
can greatly impact the success of the process. These constraints are associated with the goals
that have been set, which may be deemed ambitious if the economic performance over the
last ten years is considered. More specifically, six major constraints may be identified,
namely the vulnerability of Niger’s economy to the vagaries of the climate, the low
institutional and human capacities of ministries and NGOs, the information and
monitoring/evaluation system to be set up, the inefficiency and under-performance of the
monitoring/evaluation system, the unavailability of financial and material resources within
the time limit, and political instability.

As for the vulnerability of Niger’s economy to climatic conditions, it must be pointed out that
with the onset of the sluggish uranium market in the 80s, sources of growth have depended
on rainfall, with the result that a poor rainy season always leads to a famine situation that
increases the vulnerability of the most impoverished.

Low institutional and human capacities of ministries and NGOs entailed in the PRS
implementation have been noted because ministries and particularly NGOs/associations are
suffering today from a chronic human resource shortage and the unavailability of skilled
workers when they exist.

The population’s low educational level and the magnitude of poverty result in people
becoming impatient, and inclined to demand instant solutions to their problems, a result the
PRS projections will not provide. The inevitable outcome will be a dependence syndrome
and a wait-and-see policy that can constitute a real obstacle to the success of the program,
hence the need to set up a PRS information and monitoring/evaluation system.

Even when such a system is established and first implemented, it will need to be monitored.
Because of its novelty, there is a risk that it may not be as efficient or fully operational as
expected.

The unavailability of financial and material resources within the time limit is also an
important risk factor that can have a negative impact on the implementation of the PRS.
 - 85 -

Finally, political instability has been pointed out as being one of the factors to have hampered
the implementation of Niger’s development policies. For two years now, the country has
enjoyed a period of calm that is propitious to the implementation of various poverty
reduction programs. Any tampering with this newfound stability will definitely constitute a
fatal risk for the implementation of the PRS.

V. PRIORITY A CTIONS 2002–2004

5.1. Priority Actions Related to the Macroeconomic Framework

During the 2002–2005 the government plans to pursue the execution of strict budgetary
policies to keep global demand in line with available resources and with poverty reduction
international objectives as well as with macro-economic stabilization regional objectives. In
this context, the overall deficit of government’s financial operations (on a commitment basis
and excluding grants) would be reduced from – 7.2 percent of the GDP in 2002 – 6.0 percent
in 2005. The attainment of this objective implies bringing the tax ratio to 7.8 percent in 2000
and 10.8 percent in 2005 as well as improving public finance.

Improvements in public finance will include measures to: further broaden the tax base, better
canvass tax payers and households, enhance tax collection and strengthen the fiscal
administration; control and restructure current expenditure; effectively implement public
expenditure reviews recommendations in the health, education and rural development
sectors; improve the management of public debt, including domestic and external areas; and
rehabilitate and modernize public finance management.

Improved tax collection and a more operational fiscal administration could result in an
increase in total budget revenues from CFAF 110.1 billion in 2000, to CFAF 165.3 billion in
2003 and 203.6 billion in 2005. At the same time, fiscal revenues would increase from
CFAF 80 billion in 2000 to CFAF 159.0 billion in 2003 and CFAF 192.4 billion in 2005. To
meet this revenue objective, the government will continue its effort to broaden the tax base
by increasing the coverage of the country, streamlining the direct taxation system, improving
the efficiency of the revenue collecting agencies (the régies financières), fighting tax evasion
in all its forms and exercising a stricter control on tax exemptions. Furthermore, studies are
planned to improve the assessment of land and real estate and to streamline their taxation and
make it more effective.

The strategy translates into the following actions and measures to be implemented during the
period under consideration: (i) better monitoring the flow of imports by involving additional
customs offices; (ii) managing re-exports more closely with the use of escorting missions;
(iii) rebuilding trust between the customs administration and the economic operators by
providing taxpayers appropriate information on rules and procedures in workshops to be
attended by both administration staff and economic operators; (iv) managing better and
drastically curbing exemptions by applying more strictly current laws and checking more
systematically the final destination of exempted goods; (v) enhancing the cooperation
between national policy makers and local governments by providing the latter with
 - 86 -

appropriate training and ensuring their involvement in the mobilization of domestic

resources; (vi) improving the coordination between tax offices; (vii) making control
authorities more effective; (viii) identifying new customs revenues; (ix) making de-
concentrated services effective by increasing their share of tax revenues, making evidence-
based on-site controls more systematic, and intensifying tax collection by muti-agencies
collection brigades (DGE, DRI) across the country.

To reflect government's priority to poverty reduction, its public spending policies will
emphasize tighter control of expenditures with increased allocations to essential sectors. Thus
increased budget appropriations in favor of the social sectors will be made possible by a
stricter control exercised on lesser priority expenditures. Special attention will be given to the
key public finance agencies, providing them with a level of staffing and equipment consistent
with their proper operation, as well as to the availability of counterpart funds to leverage the
impact of investments. The main recommendations of the public expenditure reviews in the
education, health and rural development sectors will guide the restructuring of public
expenditures.

Five strategic policy actions have been selected by the government to underlie the execution
of the reform process.

5.1.1. Improving budget preparation and programming

A Medium Term Expenditure Framework (MTEF) constitutes an internally consistent set of

strategic objectives and public expenditure programs to guide line ministries decisions
regarding allocation and use of their resources. To be a successful instrument, the MTEF
must rest on institutional arrangements stimulating decision-makers to align their priorities
with the country resources constraints.

The MTEF helps define the kind of consistent and realistic resources framework that forms
the foundation of a balanced macroeconomic framework. It also helps to: implement a
resources allocation system that better reflects sector and cross-sectors priorities; formulate
more predictable policies and financing plans enabling ministries to draft strategies and put
in place more sustainable programs; allow a more efficient use of resources by operational
services, provided with a greater autonomy in the context of a stricter budget orthodoxy.

In an effort to modernize the budget preparation and planning process, the government has
decided to use MTEF economic and financial criteria to guide the budget allocation. Within
the MTEF, it will then determine medium term appropriations at sector level that are fully
consistent with the macroeconomic framework.

During the 2001–2003 period, such program budgets will be prepared for the health,
education, rural development, transport and infrastructure sectors.

The reform will also include the annual budget preparation--the loi de finances--that will
integrate criteria based on the 2001 physical census of students and audit of scholarships as
 - 87 -

well as performance contracts to be signed with key publicly subsidized institutions. Also
2002 national budget credit appropriations will reflect the poverty reduction objectives in
order to reach the condition for the floating HIPC completion point relative to the
implementation of the PRS by the end of 2002.

Improved budget planning and preparation alone would not result into a more efficient use of
national resources without appropriate monitoring and evaluation systems. To that effect, the
government will implement in 2003 a new budgetary nomenclature and accounting system
more in line with international standards.

5.1.2. Streamlining budget execution

The government is aware that the current finance and budget management system is weak.
Information provided by the system is not reliable enough to ensure a quality expenditure.
Therefore improving the quality of public expenditure will be one of government's priorities.
The on-going reform of the system will be pursued and intensified.

In that context, government's measures will aim at streamlining the budget expenditure
system to ensure a more efficient control of public finance management, with the objective of
having revised procedures in place for the 2003 budget execution. It will pursue its
implementation of a financial information system providing real time information on budget
execution. Budget control and treasury planning will also be improved to curb the use of
exceptional payment procedures and ensure a transparent payment of public expenditures.

Cost effectiveness and transparency will be central to the government's procurement policy
and, together with directives to harmonize procurements at the sub-regional level, will form
the guiding principles of a procurement reform. The reform will include a complete overhaul
of procurement laws and regulations, the preparation and implementation of a training
program for staff involved in procurement, the development of a procurement monitoring
system, complemented, if needed, by further institutional reforms. The overarching objective
of these actions is to ensure maximum cost effectiveness and transparency in public
procurement.

The government also intends to pursue the civil service reform with the primary objective to
contain the wage bill within limits imposed by level of revenues and to enhance the civil
service efficiency to make it a true development administration. Moreover, the application of
new criteria ensuring that scholarships are granted in priority to deserving, underprivileged
students will yield some savings. Future public expenditure reviews will cover other sectors
to identify their needs, strengthen the programming of expenditure and enhance budget
execution procedures.

5.1.3. Enhancing budget management

Public accounting procedures are expected to ensure a transparent monitoring of the budget
execution. In that context, a revised accounting system, consistent with regional standards,
 - 88 -

will be adopted and implemented. Reliable "score boards" will be periodically prepared to
monitor budget execution and better inform government's decisions. A tighter discipline will
govern the accounting of treasury operations. The government plans to prepare a public
expenditure review of the overall budget process and management, and to implement its
recommendations. Physical tracking of expenditures will be undertaken on a pilot base,
complemented by surveys of beneficiaries of public services.

In addition, the government will adopt a clearance mechanism facilitating the efficient and
timely authorization and payment of deconcentrated budget appropriations to ensure their
availability simultaneously to other public expenditures

The closing of accounts is another mandatory step in the budget process and normally
involves an external audit, the parliamentary and judicial control. The government is
committed to continue the production of legally mandated Budget Reviews (Lois de
règlement). The process was restored in 2000, starting with the 1997 fiscal year. From now
on, the production of Budget Reviews will comply with legal timing requirements, starting
with the fiscal year 2001 review to be submitted to the National Assembly and the Chamber
of Accounts in 2002 together with the fiscal 2000 Budget Review. The Chamber of Accounts
is expected to produce its first "opinion decree" during 2002. On that basis, the National
Assembly will organize parliamentary debates on the execution of the current account of the
2002 budget.

5.1.5. Strengthening the management of human resources

To improve service delivery and ensure an efficient implementation of the reforms, the
government will seek the support of its partners, particularly in training and retraining staff in
using the new instruments and equipment needed to develop a model facilitating the
preparation of a macroeconomic framework to guide economic and budgetary management
and to ensure continuing formulation of appropriate poverty reduction policies.

Compliance to this commitment will require the mobilization of external technical and
financial assistance, given the weakness in human and equipment resources in the
administration agencies responsible for the production of these documents. To that end, the
government will contact its partners to seek their assistance for the training of staff, technical
support and data collection and processing equipment as well as communication and
transport.

5.2. Priority Actions Related to the Productive Sectors

5.2.1. Rural sector

Priority actions will be undertaken in four strategic areas: agro-sylvo-pastoral development;

control of desertification and management of natural resources; and development of revenue
generating activities in the rural economy.
 - 89 -

5.2.1.1. Agro-sylvo-pastoral development and food security

Improvement in production systems and development of production factors will help increase
food security. Planned priority actions are: gaining mastery of the productive potential;
preserving and developing genetic resources; creating and rehabilitating poultry breeding
centers; strengthening the research capacity and technology transfer reinforcing and
decentralize existing agriculture equipment manufacturing facilities; creating a motorized
cultivator and mills assembly line; integrated crops protection; stocking ponds and fisheries;
rehabilitating and creating irrigation perimeters; developing better procurement systems for
equipment and input needed in agriculture, forestry, zoo-technology and veterinary medicine;
developing food-crops trade by reinforcing rural infrastructure (slaughterhouses, crop driers,
cattle markets) ; increasing farmers' income through the development of agro-sylvo-pastoral
sub-sectors; enhancing food crises prevention and mitigation mechanisms; developing a
market information system; creating better tools to manage food crises; establishment of
cereals banks; construction of local storage and seed preservation facilities; building feeder
roads to open up production areas; promoting better eating habits, encouraging the use of
substitute food products; developing food preservation and processing technology;
developing forestry and fauna products.

5.2.1.2. Desertification control and management of natural resources

Restoring and safeguarding the environment will involve the following activities: creating
protected areas; rehabilitating degraded land through the generalization of grassroots level
CES/DRS activities; drafting management plans for the development and management of
agriculture, forestry and livestock resources at the grassroots level with some expert
assistance; implantation of geographic and natural resources information systems; multi-
purpose tree planting; agro-forestry and participative development of natural forests;
sustainable land development supported by land tenure commission and appropriate land
management schemes

5.2.1.3. Income generating activities development

Increasing formers production means and income will be achieve by: establishment of
chambers of agriculture; water pants rehabilitation to meet agro-sylvo-pastoral objectifs;
improved access of women and youth to a production factors and other resources; more
active support to the building of the women’s groups capacity; promotion of rural credits and
savings; development of a rural land credit system; active support to producers organizations;
research on agro-sylvo-pastoral products preservation; improving rural health and education
(training/supervision).

5.2.2. Road transports, mines and energy sectors

Priority actions with a focus on poverty reduction in the context of road maintenance and
construction will include: the Special Rehabilitation Program, targeting infrastructure
damaged in 1994 and 1998; routine maintenance of 8.530 km of roads, including urban road
 - 90 -

systems; periodic maintenance of paved and unpaved roads; installation of weighbridges;

implementing a road maintenance programming system; building new paved and unpaved
roads; training of local cooperatives to help them carry out small road repairs; maintaining
current mining operations and diversifying production; expanding the power grid coverage
from 4 percent to 15 percent in 2005 while increasing the access rate from 5 percent to
25 percent over the same period; curbing the use of wood fuel by encouraging the use of
alternative sources of energy.

5.3. Priority Actions in the Social Sectors

5.3.1. Education

A participatory approach and a systemic, multi-sector vision of education underpin priority

actions in education. Measures include: (i) ensuring an appropriate level of national resources
to meet the sector requirements, in particular in basic education (to that end, the government
will allocate each year 4 percent of the GDP and an average 37 percent of fiscal revenues and
20 percent of its operating budget to the financing of education, while 40 percent of monies
made available under the HPIC initiative and at least 50 percent of the total education
expenditures will be allocated to basic education); (ii) making a more effective use of
available resources wherever possible, for instance:

• Increasing the student/teacher ratio from 37 in 2001 to 42 in 2005 and maintaining that
level until 2015,
• Reducing the repeater ratio in the 6th grade from 37 percent in 2001 to 15 percent in 2005
and then to 10 percent in 2015,
• Changing teachers recruitment policies to allow more recruitment of contractual staff for
all classroom positions and recruitment of civil service teachers for supervisory positions
within the limits of savings generated by staff retirement (resulting in a drop of the
average cost per teacher expressed as a share of GDP per capita from 10.1 percent in
2001 to 8.7 percent in 2005 and 6 percent in 2015),
• Shifting to the use of adobe and other similar building materials to lower the unit cost of
new classrooms by at least 15 percent in 2005 and 30 percent in 2015,
• Reorganizing teaching to increase the number of multi-grade classes in rural areas where
the demand is low as well as double shift classes in areas where the demand is high.

5.3.2. Priority health and HIV/AIDS actions

5.3.2.1. Health

Priority action will focus on improving the supply, demand and quality of health services,
insuring equitable access to essential health care, and creating an enabling environment for
the development of grassroots partnership. The implementation of these activities will be
synchronized with other activities in the health policies statement currently being finalized.
 - 91 -

5.3.2.1.1. Improving supply, demand and quality of health services

The goal in improving supply, demand and quality of health services is to insure a more
equitable availability and access to care and service at all levels of the health systems. These
will be achieved by pursuing the deconcentration of the system while preserving gains
already derived from earlier reforms, and actively fostering grassroots participation. To that
end, health district will continue to play a central role in the implementation of the health
policy currently being finalized.

The following actions will be undertaken: increased availability of staff equipment and
financial resources and staff training in this context; establishing a better balance between
operating and investment expenditures and pursuing public expenditure review to evaluate
costs and analyze the incidence on beneficiary; increasing availability of essential drugs
while better controlling and curbing illegal sales of non controlled drugs; promoting and
developing IEC health activities and strengthening the surveillance of potentially endemic
diseases.

5.3.2.1.2. Ensuring equitable access to essential health care

Ensuring equitable access to essential health care will involve pursuing the ongoing re-
organization of health services, including the hospital reform that must now be finalized in
order to speed up the transformation of Reference Health Centers and Reference Maternity
Hospital into administrative public entities (EPA). Health coverage will be extended to
increase the coverage ratio within a five km radius from a health center. Also, the access rate
to basic health services will be increased by improving the physical and financial
accessibility for the poor.

Essential drugs and vaccines will be made regularly available and accessible in health
centers, as a result of a new drug pricing policy based on an analysis of costs and health care
payment capacity of the poor. At the same time, a sustainable cost recovery system will be
established. Finally coated mosquito net and anti-retroviral drugs will be made available to
vulnerable groups. With respect to cost recovery, a new pricing policy will be put in place
following an analysis of the actual capacity and willingness of consumers of health services
to pay for their health cares. Following a feasibility study, a health insurance schemes will be
implemented on a pilot base.

5.3.2.1.3. Creating an enabling environment for the development of a partnership with

population and other health stakeholders

Creating such an enabling environment will involve the enactment of a legal and regulatory
framework regarding partnership in the health sector, generalization of the system of
"contractual recrutment" system as well as strengthening the institutional capacity of
services. With health centers closer to the population, grassroots involvement and
accountability in health management should increase with the decentralization of the health
system and greater community participation in the planning and management of the health
 - 92 -

activities. In particular, management committees will be strengthened and their autonomy

expended.

5.3.2.2. HIV/AIDS

The following actions will be undertaken in the context of health: (i) active support from the
highest authorities to ensure at all levels of the system effective AIDS committees and
committees responsible for promoting reproductive health care (RHC) and family planning
(FP); (ii) improving health officials' understanding of AIDS and population issues as well as
of the inter-relation between these issues; (iii) building capacity among committee members
including NGOs and Associations working in the area of IEC/RHC/FP; (iv) supervising
activities; (v) organizing consultation meetings and exchanges of views between all
stakeholders; (vi) designing a monitoring and evaluation mechanism.

5.3.3. Priority actions in the area of access to safe water and sanitation

In this area, priority action will center around the construction of modern wells in order to
improve the access of the most vulnerable population segments to safe drinking water.
Efforts will focus on intensifying the construction of small-scale water supply systems
which can be maintained easily and cost-effectively even by the most destitute. These actions
are expected to lead to a sustainable improvement in the people’s health situation.

5.4. Priority Actions in Support of Improving Governance and Building up Human

and Institutional Resources

5.4.1. Good governance

Actions in the area of political governance include: (i) building and consolidating the rule of
law; (ii) promoting and defending human rights and civil liberties; (iii) promoting and
consolidating civil peace; (iv) reforming the legal system; and (v) strengthening the
operational capacities of the National Social Dialogue Commission (CNDS).

In addition, the government intends to reinvigorate the judicial apparatus and strengthen the
public litigation office in its capacity to monitor the execution of judicial decisions made in
favor of the state.

In the area of economic governance, actions include: (i) carrying out public expenditures
review; (ii) in-depth reform of public procurement; (iii) regularly preparing Budget Review
Laws for their timely submission to the Court of Audit; (iv) strengthening public capacity to
manage and control public finances.

5.4.2. Decentralization

Achieving the above objectives will require that ongoing and future reforms go beyond the
definition of institutional mandates and administrative boundaries and ensure that local
 - 93 -

governments have been transferred an adequate decision authority. Further actions will be
needed to put in place and modernize administrative and management systems required for
effective local governments while taking full advantage of the significant input potentially
available from traditional institutions (sultanates, provinces, districts, groups, villages and
tribes...).

Additional actions will also be implemented: (i) promoting decentralization as a policy

aiming at broadening the participation to development activities by ensuring grassroots level
participation in the decentralization process itself; (ii) advocating grassroots democracy;
(iii) looking for ways to gradually reduce development disparities among regions;
(iv) promoting a decentralized cooperation and finalizing the institutional and legal
framework; (v) disseminating information as well as raising the awareness of and training all
actors on the national political scene; (vi) building up local capacity (financial, human and
material resources); (vii) forging stronger grassroots partnerships; (viii) making all
decentralized levels operational; (ix) organizing free and transparent elections at all levels;
(x) designing mechanism to monitor and evaluate the operation of local governments.

5.4.3. Building up human and institutional resources

The priorities in building up capacity are as follows: (i) at the level of the political decision
makers: key instruments to build up and reinforce capacity will include effective
communication, greater awareness, civic education, information and training, which will be
stressed and developed during a general government workshop and another workshop
organized for high-level civil servants; (ii) at the level of the central administration, research
will be undertaken, focusing on ways to enhance skills and professionalism in the civil
service and measures will be taken to modernize the administration; (iii) at the level of local
governments, specific instruments adapted to the new requirements stemming from the
decentralization will need to be designed, including a training program targeting elected local
officials; (iv) at the level of the civil society, training will be made available to the civil
society as a whole, with the view to make it more aware of what it will need to do in order to
fill the vacuum left by the retrenchment of the state; (v) at the level the private sector,
training and assistance will need to be available to help the private sector discharge its
responsibilities in the national development.

Necessary changes of mentality and behavior within the civil service with respect to the
public sector, its clients and the citizenry in general will require the implementation of a
program that includes training and practices, awareness campaigns and changes in work
habits. The goal is to have a reformed and modernized administration become the type of
civil service Niger needs to administrate its development, focusing on the efficient
management of human resources needed to carry out the roles and functions of the state. This
in turn requires refocusing the mission and functions of the state to improve public sector
effectiveness and performance.

More specifically, the following actions will be implemented: (i) containing staffing and
wages in the public service; (ii) streamlining human resources management;
 - 94 -

(iii) reorganizing services to improve efficiency and effectiveness; (iv) instituting a sanction
and reward system; (v) improving methods and procedures; (vi) bringing about civil service
reforms needed to boost staff productivity; (vii) integrating civil service staffing and wages
management systems; (viii) renovating logistics by computerizing services.

5.5. Reaching the HIPC Completion Point by End 2002

In 2002, the execution of the poverty reduction strategy will focus on concrete measures
facilitating progress towards reaching the HIPC completion point. These measures include:

• Recruiting staff needed to align the staffing of basic health centers with existing
standards and consolidating gains;

• Financing activities under the Basic Education Reinforcement Program, and more
specifically, the recruitment of education volunteers;

• Carrying out a national household budget expenditure Survey and use updated poverty
data made henceforth available to make the Poverty Reduction Strategy more pertinent to
the evolving context;

Financing the preparation of an HIV/AIDS strategy and program

 - 95 -

VI. STRATEGY IMPLEMENTATION AND MONITORING/EVALUATION ARRANGEMENTS

6.1. Context

Niger does not have yet a national monitoring and evaluation system. However, some line
ministries (Health, Education, Rural sector, Planning) maintain regularly updated
databases,15 that feed into a national information and statistical data collection system, the
Directorate for Statistics and National Accounts (DSCN). The system is supplemented by a
geographical information system (SIGNER) and, since 1997, an Annual National Report on
Human Development prepared and published by Niger. Some International organizations and
NGOs working in Niger also maintain databases.16

This situation has led to duplication, dispersed effort and absence of harmonization among
data collection methodologies, making it difficult to compare information coming from
different data sources. Therefore, the establishment of an integrated monitoring and
evaluation information system is essential.

6.2. The Poverty Reduction Information System (SIRP)

Establishing a poverty reduction information system (SIRP) is a prerequisite for the

successful execution of programs implemented in the context of the poverty reduction
strategy.

The SIRP's key objective is to improve the knowledge on the standards of living of
households and on the extent of poverty in Niger. To achieve such an objective, the SIRP
will need to establish base line data, requiring in turn an update of the poverty profile and an
analysis of the dimensions of poverty (monetary as well as non-monetary).

The system will receive inputs from the existing socioeconomic databases as well as from
future surveys and studies. It will play a critical role in the establishment of a dialogue
between producers and users of data that would lead to better defined information
requirements. A formal dissemination mechanism would be an integral part of the system and
would ensure that government, civil society and development partners as well as the general
public have access on a regular basis to qualitative and quantitative information required to
follow-up the different aspects and evolution of poverty.
Achieving such objectives requires the selection of priority and verifiable indicators, based
on sector diagnostics of poverty. The selection of the indicators, their definition as well as the

15
The National Health Information System (SNIS); Water Database; Education Indicators
Monitoring System; Agriculture Statistics Monitoring System; Early Warning System
monitoring not only the agriculture production, stocks and agriculture imports, but also the
food security situation.
16
AGHRYMET, ICRISAT, ACMAD, CARE INTERNATIONAL, etc.
 - 96 -

data collection methodology used in their calculation have emerged from a large consultation
process and will be eventually validated in the context of a national consultation process on
the PRS.

The types of selected indicators will include outcome indicators needed for a broad follow-up
of poverty (final indicators) as well as intermediary indicators that will help evaluating
processes leading to final results.

6.3. Main Types of Indicators

Indicators selected in the context of the SIRP will be obtained from different sources of
information, such as surveys and studies as well as administrative data sources. The list
below includes both final and intermediary indicators and their description.

6.3.1. Monetary poverty indicators

Monetary poverty indicators are essential to understand the features of poverty and the
inequality in income distribution and in consumption, as well as their evolution. However
theses indicators are sensitive to cyclical fluctuation in income and consumption, whether
due to external shocks beyond the control of any household (natural disasters, structural
adjustment policies, etc.) or to internal problems affecting a specific household (loss of
employment, accidents, death, divorce, etc.).

6.3.2. Indicators of poverty in the standards of living

The indicators of poverty in the standards of living will supplement the monetary poverty
indicators. They "aggregate" successive improvements and capture how the household has
met essential needs over the long term. Therefore, they are useful in measuring the reduction
of structural poverty.

6.3.3. Indicators of poverty of socioeconomic opportunities

Indicators of poverty of socioeconomic opportunities (material, human and social

opportunities), provide an evaluation of the opportunities available to the country, which
could bring about a reduction of poverty (health system coverage, access to credit, etc.).
Information on opportunities help decision-makers to understand the apparatus available to a
household in order to prevent poverty or to escape from poverty.

Such indicators cover in particular the human, education and health capital that the poorest
could use to improve their labor productivity, their capacity to innovate in searching for ways
to increase their income and their integration in society. These indicators provide information
on explanatory factors of poverty and are therefore useful for the government in adjusting
social and economic policies.
These three types of indicators belong are outcome indicators. They will of course be
classified by area of analysis in order to establish a link between the poverty reduction
 - 97 -

strategy and the corresponding objectives of economics policies. The strengthening of the
regional data collection system will help make available regional databases and will facilitate
the formulation of a decentralized strategy for the dissemination of information on poverty.
Monitoring indicators will be broken down by region, gender and socio-professional
categories, etc., according to the instrument used to collect the data.

6.3.4. Intermediary poverty indicators or process indicators

Intermediary indicators or process indicators are designed to measure determinant inputs of

some outcome, contributing to progress in the process leading to the outcome. For instance, a
higher level of literacy, an outcome, will require more schools and teachers and increased
class attendance, etc.

In this example, measuring public expenditures allocated to fund classrooms and teachers as
well as measuring the number of classes built and the number of teachers trained would be
key intermediary indicators. In a nutshell, intermediary indicators are those factors that
contribute to achieving the objective.

6.3.5. Gender indicators

Gender indicators are designed to take into account disparities between men and women, and
include both quantitative and qualitative indicators.

6.4. Institutional Arrangements Required by the SIRP

The SIRP could use the existing information system to meet demands generated by the
poverty reduction strategy. However, the information required in the execution of the
strategy will impose reorganization and strengthening of the existing system. This in turn
demand that efforts be committed to raise the level of synergy among current databases and
new data collected in the course of future surveys and studies.

6.4.1. The existing information system

Information are currently collected either routinely, through administrative surveys, carried
out by some of the line ministries, or through periodic surveys, organized either at the
national level or to target specific population categories or regions. The statistical collections
are generally made by or with the assistance of the Directorate of Statistics and National
Accounts (DSCN), responsible for the integrity of the methodology and the quality of the
outputs. National surveys are generally carried out or at least supervised by DSCN. Outputs
of administrative surveys are periodically exploited, compiled and disseminated by the
DSCN.
 - 98 -

6.4.1.1. The periodic administrative surveys

Line ministries, such as the Ministry of National Education (MEN), Ministry of Public
Health (MSP), the Ministry of Rural Development (MDR), the Ministry of Environment and
Control of Desertification (MELCD) and the Ministry of Civil Service (MFP), are
administratively organized to collect, exploit and periodically publish information related to
their sphere of competence. Together they form a system that must be strengthened and
decentralized to respond in a more timely fashion to emerging requirements in poverty
monitoring.

6.4.1.2. Light national surveys

During the last decade, several surveys and studies have been carried out. While a review of
these operations recognize the importance of efforts deployed in collecting information, it
also shows that information collection requires further strengthening as the current system
meets only partially requirements of poverty monitoring.

6.4.2. Strengthening the current system

Monitoring better poverty and household standards of living require correcting the
deficiencies observed in the current system. In designing the new system, a special emphasis
will therefore be given to broaden the scope of statistical data collection requirements and to
strengthen institutional arrangements.

6.4.2.1. Statistical data requirements with respect to poverty reduction

In the next few years, the production and dissemination of information on the status of
poverty, based on indicators defined in the Poverty Reduction Strategy, will receive a lot of
attention, reflecting government's priority objectives. This has translated into an action plan
designed to make available an information system responding to essential information
requirements with respect to poverty reduction. More specifically, the action plan includes
the analysis of the third general census of population and housing (RGP/P) as well as the
publication of its results, and a program of quantitative and qualitative surveys designed to
improve knowledge in the area of poverty, in the context of the poverty reduction strategy.

The third General Population Census was completed in May–June 2001. To ensure a swift
publication of its results, Census data must now be exploited and analyzed. The results could
contribute to deepening the knowledge on social and economic issues as well as on the
standards of living of the population. This in turn should help update and improve existing
poverty maps.

Once this framework in place, the publication on a yearly basis of national economic
accounts will provide the data needed to estimate economic growth and macroeconomics
stability indicators at the national level. Similarly, a future General Agriculture Survey will
 - 99 -

provide government with quantitative and qualitative data to assess the results of agricultural
seasons, the vulnerability of population and the food security.

The General Agriculture Census and the General Livestock Census are currently under
preparation and should be carried out in 2003–2004. These nationwide surveys will be using
a significant sample of farmers and pastoralists. Their objectives is to make available
information on the structure of farming and livestock, which would in turn be used to
improve the information content of the poverty maps in Niger.

Building on the new sampling frame provided by the RGP/H, the household expenditure
survey would provide a typology of households expenditures needed to construct a
consumption price index and provide essential information on household expenditures and
budgets. Improving our understanding of consumption patterns, availability of nutrients in
the household level food supply and basic needs of the population in terms of food quantity
and nutriments would constitute a major input into the definition of the food security strategy
and the monitoring of its execution.

It would also provide a preliminary description of income distribution, clarifying the role of
different income streams (stated income, savings, assets, investments, etc.) in meeting
households financing needs, and make available macroeconomic information needed to assist
the preparation of income accounts of households in the context of the national accounts.
Finally, it will help forecast the demand at the household level through a model linking
consumption and revenue elasticity.

Finally, the data collected during the household expenditure survey would lead to the
publication of several results, including household consumption and expenditure patterns and
a poverty profile. The preparation of a poverty profile would provide a better assessment of
the extent of poverty in Niger. It will also clarify the structure of the revenue index and of
household expenditures, and provide an analysis of the food expenditures in terms of
quantity, nutrient content, coverage of needs, as well as of key aspects of housing and
education.

A Demography and Health Survey (DHS) will be carried out in 2003. Simultaneously, a 1-2-
3 phases survey on the informal sector, undertaken under the PARSTAT program and
financed by the EDF, will be carried out on a sample of informal enterprises located in the
Niamey metropolitan area, providing reliable and comparable information on employment,
on key features of the informal sector, consumption expenditures as well as poverty in urban
areas. Its results are expected to greatly improve the reliability and comparability of GDP at
the regional level and to better analyze the structure of consumption and the importance of
poverty in the national economy.

Administrative surveys will be routinely carried out by line ministries during the
implementation of the strategy, as part of their ongoing programs of activities. Finally, the
National Quantitative Survey on the Perception of Poverty among Households will be carried
 - 100 -

out in 2001, 2003 and 2005. It will help better understand the determinants of poverty,
providing essential guidance to poverty reduction strategies and actions.

6.4.2.2. Implementing new institutional arrangements

Implementing a new, more efficient poverty monitoring system remains a major challenge
that the government must still address. To that end, it will focus on ways to strengthen the
current organization and capacity of the national statistical system. Putting in place a
consultative body ensuring a sustained dialogue between producers and users of the data is a
priority. Its mandate would include the definition of information requirements, the
periodicity of information production as well as an information dissemination strategy, in
accordance with the Poverty Reduction Strategy objectives.

The design of institutional arrangements in support of poverty reduction information will

need to take into account (i) the multiplicity of existing databases (administrative data,
quantitative and qualitative surveys and studies, reports published in the context of projects
and programs as well as by NGO, etc.); and (ii) institutional arrangement currently in place
for the coordination of the national statistical system, i.e. the National Statistic Committee
(CNS).

Should the CNS be revitalized and further strengthened, it would be the proper body to
discharge very effectively steering and coordination responsibilities with respect to the
poverty reduction information system. In order to make the CNS more operational, its current
configuration needs reinforcement. Its Secretariat (the functions of which are currently
performed by the Directorate of Statistic and National Accounts), properly staffed and
equipped, would monitor the implementation of SIRP's activities. Specific responsibilities
would include managing and maintaining the information system to ensure that indicators
needed to monitor the PRS execution are periodically updated when needed. Moreover, a
special emphasis will be put on the creation and effective operation of the CNS branches at
the regional and sub-regional level.

Finally, CNS coordination and steering responsibilities with respect to the SIRP will be
discharged under the supervision of another body still to be created with overall
responsibility for the implementation of the Poverty Reduction Strategy. This new body will
ensure consistency throughout the Poverty Reduction Strategy implementation and the timely
production of consolidated poverty monitoring reports reflecting the evolution of indicators,
selected in the SRP and periodically updated. The SRP would also be updated as qualitative
and quantitative indicators are made available to monitor its implementation.

6.5. The Institutional Framework for the SRP Implementation

On March 19, 2001, the Prime Minister has issued a decree creating an institutional
mechanism to prepare the current SRP. Its Permanent Secretariat has played the leading role
in supervising the preparation of the SRP by the government and in ensuring the respect of
the agreed timetable, providing a convincing demonstration of its effectiveness. The
 - 101 -

Secretariat has come out stronger from its involvement in this exercise and appears today to
be well suited to play the leading role in coordinating the implementation and monitoring-
evaluation of the SRP.

To play such a role, the overall staffing of the Permanent Secretariat as it currently stands
could be reduced but the monitoring and evaluation function will require additional staff. Its
permanent team would be made of a permanent Secretary, assisted by a few experts
including a rural sector specialist, a social sectors specialist, a macroeconomist, and a
monitoring and evaluation specialist. Support staff as needed to make it operational would be
made available to the team and the structure should be financially autonomous.

To foster synergy among all ministries involved, each would identify a focal point whose
mandate will be to facilitate the exchange of information and the monitoring of program
execution. Given the national importance of the SRP and its multidisciplinary approach, it
appears appropriate to assign the structure responsible for its implementation, monitoring and
evaluation at a very high level in the decision-making hierarchy.

In addition, an effective and operational institutional arrangement will require that the statute
of members in the Permanent Secretariat in charge of coordinating the SRP implementation
be revised. Consequently, priority should be given to a timely mobilization of resources
needed to ensure to the Permanent Secretariat a level of operationality consistent with the
major challenges that lay ahead in the discharge of its responsibilities.

6.6. SRP Implementation Instruments

6.6.1. National and sector programs

In essence, the SRP will be implemented building on ongoing and future programs executed
under the authority of sector ministries. The Special Program of the President that has been
described earlier will be completed as planned and its community based action program will
be stepped up to cover all regions in the country.

At the same time, all ongoing programs that are not directly linked to poverty reduction will
be refocused towards this overarching objective.
 - 102 -

Box 5: The Special Program of the President of the Republic: Implementing the PRS

In 2001, Niger has received about CFAF 8.8 billion under the HIPC interim assistance. These funds, regularly
paid to a special account opened at the BCEAO have been used to finance a Special Poverty Reduction
Program, designed in line with the I-PRSP and launched by the President of the Republic at the beginning of
2001.

The Special Program plans to build 1000 health centers, 1000 primary school classes, 100 village level wells
and 100 mini-dams. It also envisages specific actions in favor of women. It will be implemented in several
phases, and is designed as a community level project fostering grassroots level efforts towards the building of
the nation.

The assessment of the first phase, which includes the construction of 235 village level health centers,
233 classrooms, 24 mini-dams, 25 weirs and 43 pastoral has revealed highly satisfactory execution rates.
According to the current timetable, works under the first and second phases of the program should be
terminated by July 2002 at the latest. If the Program's execution remains satisfactory, Niger would achieve
substantial progress towards meeting the HIPC Completion Point requirements, which could be reached by end-
2002.

The implementation of the Special Program of the President incarnates at the individual level the promise by the
African heads of states to eradicate poverty, to put their country individually and collectively on a growth path
and to ensure its sustainable development and active participation in the world economy and politics. This
promise, rooted in a common vision and by a strong commitment shared by all Heads of State, was made in the
context of the New African Initiative. Collective actions are planned in that respect and Niger is a stakeholder in
the process.

Box 6: Public debates on decentralization

The National Assembly, with the support of the National Democratic Institute and in collaboration with the
government, has just launched a long term consultation process to organize territorial divisions in a way that
would best take into account the specific conditions of the country and that would allow a decentralization as far
down as feasible given the available resources. A specific objective of the process is to achieve a wide
consensus on the number and limits of regions, districts and communes to be created.

The people’s enthusiasm and massive support to the decentralization process, and beyond it to other areas of
development, have been reflected in lively and fruitful debates. Suffering on a daily base from the consequences
of "bad development" and of being far away from the decision centers, people have manifested their impatience
for a speedy implementation of decentralization. At the same time, they have also expressed some regrets for
not having been sufficiently associated in the process, and when they were, for seeing their opinions and
suggestions insufficiently taken into account. Many heads of groups who are supporting the process have
nevertheless expressed some pessimism. This will definitely require adequate attention to ensure that what they
want is properly taken into account and that minorities are adequately represented in the future local
government councils.

The need for the people to be better trained, informed and made aware of key decentralization issues and of the
role of the many actors in the process has been clearly expressed. Finally, during the debates, people have
expressed concerns that the poverty of some communes might jeopardize their sustainability, and have
suggested putting in place the basic infrastructure before establishing the new communes.
 - 103 -

6.6.2. Budget framework

To reflect government's priority to poverty reduction, its public spending policies will emphasize
tighter control of expenditures with increased allocations to essential sectors. Thus increased budgetary
appropriations in favor of the social sectors will allocated, implying strict control over lower priority
allocations. The main recommendations of the public expenditure reviews in the education, health and
rural development sectors will guide the restructuring of public expenditures.

A medium term expenditure framework will constitute a major implementation instrument of the
strategy. Its preparation will be the first of its kind in Niger. Therefore, the allocation of public
expenditure in the context of the SRP will be based on (i) the targets defined under the program agreed
with the IMF and supported by the PRGF for 2000–2003; and (ii) essential needs in the priority sectors
identified in the poverty reduction strategy, such as education, health, rural development, road
infrastructure and private sector development.

The PRS macroeconomic framework rests on three scenarios that have helped define sector budget
allocations. In the base line scenario (or reference scenario) as well as in the rapid growth scenario
(high case), resources allocated to education will represent 4.1 percent of the GDP; health resources
will represent 17 percent of total expenditure; rural development will represent 12 percent of total
expenditure; and road infrastructures 12 percent of total revenues.

The surplus of budgetary resources generated in the rapid growth scenario will be allocated to the
reduction of domestic arrears and of the government’s debt at the central bank through the settlement
of the statutory advances.

In addition. Savings generated by the intensification of adjustment efforts on the non-priority sectors
will in part lead to a reallocation of resources in favor of the education and road infrastructure sectors.

In the slow growth scenario, despite a decrease in resources, allocations for priority sectors have been
maintained at the same level than in the baseline scenario. The adjustment was principally exercised on
allocations for non priority sectors, mainly those under the heading “ “other expenditures” in the
framework. Overall, this item would decrease by CFAF 84 billion compared with the baseline scenario.
 - 104 -

6.6.2.1. Baseline

Table 22. Baseline allocations (in billions of CFAF)

Sectors 2002 2003 2004 2005 Total

Education 61.50 65.26 69.36 73.71 269.83
Health, VIH/ SIDA 67.21 70.40 73.62 74.92 286.15
Rural development 47.44 49.70 51.97 52.88 201.99
Urban development 15.81 16.57 17.32 17.63 67.33
Road infrastructure 19.31 20.44 22.33 24.38 86.46
Reduction of arrears 28.00 25.00 25.00 20.00 98.00
Water 11.86 12.42 12.99 13.22 50.50
Others 144.21 154.35 160.46 163.95 622.97
Total 395.35 414.13 433.05 440.69 1683.22
Source : Ministry of Finances and Economy/DGP

6.6.2.2. High growth scenario

Table 23 : High case allocations (in billions of CFAF)

sectors 2002 2003 2004 2005 Ensemble

Education 61.94 66.54 71.59 77.45 277.52
Health, VIH/ SIDA 67.20 70.40 73.62 74.92 286.14
Rural development 47.44 49.70 51.97 52.88 201.98
Urban development 15.81 16.57 17.32 17.63 67.33
Road infrastructure 19.26 21.10 24.14 27.09 91.59
Reduction of arrears 28.00 30.55 35.00 35.20 128.75
Water 11.86 12.42 12.99 13.22 50.50
Others 143.81 146.85 146.42 142.30 579.38
Total 395.32 414.13 433.05 440.69 1683.19
Source: Ministry of Finances and Economy/DGP
 - 105 -

6.6.2.3. Low growth scenario

Table 24. Low case allocations (in billions of CFAF)

Sectors 2002 2003 2004 2005 Ensemble

Education 61.50 65.26 69.36 73.71 269.83
Health, VIH/ SIDA 67.21 70.35 73.64 74.90 286.10
Rural development 47.44 49.66 51.98 52.87 201.95
Urban development 14.92 15.76 16.25 16.27 63.20
Road infrastructure 16.83 18.06 19.35 20.62 74.86
Reduction of arrears 28.00 25.00 25.00 20.00 98.00
Water 11.19 11.82 12.19 12.20 47.40
Others 125.82 138.17 138.45 136.18 538.62
Total 372.82 394.08 406.21 406.75 1579.95
Source: Ministry of Finances and Economy/DGP

The government will continue reflecting on the medium term expenditure framework during
2002 in order to fine-tune the medium term sector budget allocations. A public expenditure
review will help improve the quality of expenditure. These projections will be progressively
improved as budgetary programming capacity for the main sectors is strengthened.

These activities reflect government’s determination to gradually integrate the general budget
and the investment budget in one unique budget that will become the essential instrument
available to the government in the formulation of poverty reduction policies.

6.7. Periodic Updating of the SRP

Government's intention is to update the SRP every year. First, it offers an opportunity to
refocus its objectives in order to reflect results of its execution and to take into account
emerging expectations of Niger's population. Secondly, it will make it possible to integrate
results of future quantitative and qualitative surveys, of which some will become available as
soon as 2002. The following additional activities are envisaged:

A study on the sources of growth;

The preparation of a rural development strategy;

The study on the financing of decentralization;

The preparation of a medium term expenditure framework and sector program budget.

Finally, an overall PRS review will take place every three years.
 - 106 -

Box 7. Linkage between the macroeconomic framework, the medium-term expenditure

framework and the action plan
1. With the view to ensure a continuous improvement in the quality of public spending, the government has decided
to establish a budget preparation system based, first, on the macroeconomic framework, which, in a second
phase, is then translated into a medium term expenditure framework (MTEF) providing multi-annual spending
envelopes for sectors. In a third phase, sectoral expenditure frameworks will be formulated and made consistence
with the overall expenditure framework.
2. The outcomes of this new approach initiated in course of the SRP’s formulation still bear some divergences that
can be explained mainly by remaining weaknesses in the programming tools currently available, and the
difficulty inherent to every innovative process both at a technical level (capacity by cadres to use the new
approach) and at a political level (difficulty to make intra- and inter-sectoral spending allocations).
3. Concretely, the main weaknesses to take into account when assessing the quality of macroeconomic and financial
projections in the SRP include the following:

a. With respect to the macroeconomic framework.

The macroeconomic projection model is still being formulated. The consistency and reliability of the statistics used for
the framework are generally weak. In addition, knowledge on the sources of growth is insufficient, and a study will be
completed to bridge this knowledge gap.

b. With respect to the medium-term expenditure framework (MTEF)

Sectoral budget envelopes were determined on the basis of aggregate data from the macroeconomic framework. At the
current stage, these envelopes do not fully reflect sectoral objectives to be determined by the concerned line agencies.
Rather, they reflect macroeconomic targets and the objective set forth to reach the HIPC completion point.
At this stage, only two ministries have in fact initiated the formulation of sectoral expenditure frameworks which are
to be generated through an iterative process.
The level of aggregate spending for the MTEF relies on a translation from the table of government financial operations
(Tableau des Opérations Financières de l’Etat, TOFE) into budgetary appropriations, with the balance between
expenditure and projected resources always in check.
On the resource side, the following line items of the TOFE allow to identify budgetary resources: total budgetary
revenue, budget-support grants and loans, debt relief before HIPC, HIPC relief, net lending, financing gap, project
grants and loans, IMF purchases, statutory advances from the Central Bank, and adjustment to investment spending on
domestic resources. On the expenditure side, the TOFE items leading to the identification of total budgetary outlays
include: total current expenditure, total capital expenditure on domestic resources, total capital expenditure on foreign
resources, total capital expenditure financed on HIPC assistance, arrears reduction, and amortization of external and
domestic debt.
It is noteworthy that the capital spending listed in the TOFE is on a commitment basis assuming budget execution rates
of 70 and 80 percent for capital spending on foreign and domestic resources respectively. In order to determine the
budgetary appropriation, the TOFE figures are therefore divided by the assumed execution rate. Therefore, the figures
shown in the MTEF with respect to capital spending do not contradict the objectives of the macroeconomic program
with respect to its investment execution rate assumptions.

c. With respect to the action plan (Annex 6)

An attempt was made to consolidate programs and projects, both ongoing and foreseen in the medium-term within the
framework of the PRS. Given the novelty of the exercise, some discrepancies remain between the sectoral allocations
of the MTEF and the costs estimated in the sectoral action plans. These differences can be explained by various factors:
• the fact that most of the action plans do not fully integrate recurrent spending requirements;
• the partiality of the calculations due insufficient information;
• the fact that certain programs (such as privatization, general public services, national defense and security,
justice financial administration) need yet to be translated into fully costed actions plans.
 - 107 -

Conclusion

The present Poverty Reduction Strategy is the result of a widespread involvement of all
social and political actors in Niger, and constitutes from now on the reference framework for
all actions of economic, social and cultural development, as well as for the permanent
dialogue with development partners. Based on a wide consensus, the Strategy is in fact a
unifying framework for all the sector strategies, existing or in the process of formulation, and
aims at integrating them in line with the government’s priorities.

One of the main pillars of the government’s policy is in particular the fight against poverty
through an improvement in the poor people’s living standards, in view of reducing their share
in the total population to at least 50 percent by 2015.

The expected outcomes of the four strategic pillars sustaining the PRS are: (i) achieving
quality growth based on an improved allocation of public expenditure, the reduction in the
vulnerability of agricultural production and the dynamism of the private sector.

In this context, the objective is achive an average annual growth rate of 4 percent during
2001-2005; (ii) the expansion of productive sectors based on the recovery of the rural
economy, food security, the fight against desertification, environmental conservation and
efficient management of natural resources, the development of road transport, mining and the
energy sector; (iii) guaranteeing access for the poor to basic social service, notably through
the increase in primary enrollment from 37 percent in 2001 to 48 percent in 2005 and 84
percent in 2015, the increase in the health coverage rate from 48 percent to 60 percent in
2004 and the improvement in the access to safe drinking water in rural areas by increase the
corresponding coverage rate to 70 percent by 2005; (iv) the strengthening of human and
institutional capacity and the promotion of good governance as the single pledge towards
proper management of public matters, the fight against corruption and the decentralization.

The various objectives of the PRS will be revisited as the outcomes described are monitoired
and the people’s expectations reassessed. To that end an annual yearly updating of the
strategy is foreseen as well as a general review every three years.
 - 108 -

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 - 112 -

Annexes