Upper Volta - Education Project

CIRCULATING COPY i l 70 BE RETURNED TO REPORTS DESK DOCUMENT OF INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. P-1230a-UV REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF UPPER VOLTA FOR AN EDUCATION PROJECT June 7, 1973 This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY BQUIVALENT Unit = Franc CFA (GFAF) US$ 1 C CFAF 230.2 CFAF 1 = US$ 0.004344L CFAF 1,000 = us$ 4.344 CFAF 1,000,000 = US$ 4,344 Fiscal Year: 1973  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF UPPER VOLTA FOR AN EDUCATION PROJECT 1. I submit the following report and recommendation on a proposed development credit to the Republic of Upper Volta for the equivalent of US$2.85 million on standard IDA terms to help finance an education project. PART I: THE ECONOMY 20 The basic problems of economic development in Upper Volta were setout in a report entitled "The Economic Development of Upper Volta', dated November 27, 1970 (R70-237 and R71-2). An updating memorandum of January 13, 1972, was distributed to the Executive Directors on March 2, 1972 (R72-47). Annex I contains country data, including data on foreign aid. Background 3. Upper Volta has been classified by the United Nations as one of the 25 "least developed countries" in the world. It suffers from a number of serious growth constraints: a landlocked situation, limited domestic markets and marketing facilities, poor soil, lack of water and natural resources, endemic diseases, uneven population distribution and a low level of education and technical ability, particularly in the rural areas. Moreover, the country's poverty is characterized by an insufficient nutri- tion level (animal protein intake is only half that of neighbouring Mali and Niger). 4. Upper Volta's economy is and will remain for some time almost entirely dependent on agriculture and livestock. Together these two sectors account directly for over one third of GDP and make the economy particularly vulnerable to adverse weather conditions. A further 10 percent of GDP comes from the manufacturing sector which is closely linked to agri- culture. A succession of droughts in the past few years has caused a severe setback in agricultural (cotton, food crops, and livestock) production, with consequent adverse effects on exports, and has contributed largely to the stagnation of the econony. With population growing at the rate of about 2 percent a year, real GDP per capita has revuai.ned virtually un- changed since the early 1960's.  _2- Last year's drought, the most serious so far in the past few yeas, has aggravalted an already critical situation. Food production drop4ped 8 percent compared with 1971 and half the country's natural 'last" s were destroyeed It is feared that the loss of cattle may eXCeed l9691s catastrophic level when about 100,000 animals died. Because of the limited economic opportunities at home, parti- czIi;xlarl in rural areas, young people frequently choose to migrate more or less permaxtently to coastal countries, where wages are much higher than in Upper Volta, It is estimated that over half-a-million Voltaics have migrated to neighbouring countries, the majority being i, the Ivory Coast. Although, their contribution to Upper Voltats balance of pay- ip=_ts in the form. of forei,n exchange remittances is substantial, the rurl&L ecaonrmy of -the country is thus drained of its most dynamic elements. Public Fi.nxece Econvouic development had been further hazpered by poor mana- gaemnt of public finances during the first years of independence (1960- 66) and since then by strict controls over public expendituires. In1 the early 1960's expenditurzes outran revenues to the extent thatt by the end of 1965 the Govewrment was heavily in debt an short-term account and could no longer pay the salariee of its employees. The rdlitary Governmt. which as- sumed power i. 1966 gave first priority to adoption and implementation of a stabilization program aimed at reducing outstanding debts and at bringing public expenditures and income into better balance. As a result t-he uoverm.rit has been able to repa:y all its short-term debt and has accundated re'latfrvely large liquid reserVes and foreign assets (at the end of' 1972 official. foreign exchange reserves were equivalent to about 7 monthst imorts), However, this has been achieved at the cost of cut- ting back development expenditures, and a number olf projects largely financed by external assistance have been held up for want of local counterpart funds. 3 Foreign sources have supplied more than two-thirds of total investment- expenditures effected under the first Development Plan (1967- 7O). The principal sources of aid have been tne "Fonds d'Aide et de Cooperation" (FAC) of France and the "Fonda Euarop6en de D6veloppement" (FE) of the 3uropean Economic Community, These two agencies together have so far provided about 80 percent of all foreign aid to Upper Volta (Annex i) About half of their aid has been in the fom of grants. About half of it was capital aid and one fourth technical assistance, A substantial part of French grants (a third in 1972) was for assistance to the public administration; the rest was distributed (in 1972, almost equally)I bletwee.n agriculture, road maintenance, education, and telecom- i*inLeications. IM2s contributions were primarily for water supply (urban -s well as rural) anrid roads, For the 1967-69 period the average  - 3 - concessionary element for aid commitments was about 95 percent. This reflects the conviction of aid donors that Upper Volta needs the softest possible terms in foreign assistance. 9. In addition to this development aid, the international com- munity is currently undertaking special action to assist Upper Volta as one of the six sahelian countries affected by last year's drought (Chad, Mali, Mauretania, Niger, Senegal and Upper Volta). The FAO has announced an emergency program with which the World Food Prograxne and UNDP are also associated. Under the program 50,000 tons of food grain have already been allocated to these countries. This amounts to 77 percent of the WFP emergency resources for the current year. A task force is being sent to the area to ward off potential human starvation and to build a nucleus of generating stock for future herds. Helicopters will be used to transport grain. A further 32,000 tons of food are being supplied by FED, and other bilateral aid donors are also contributing. Prospects 10. The second five-year Development Plan (1972-76) was approved in June 1972. Like the previous plan it is essentially a list of pro- jects to be presented to foreign aid donors for financing. Proposed total investments amount to an average of about bS$40 million per year. A minimum per capita GDP growth of 3 percent per year in current prices is envisaged. The plan also gives increased attention to the problem of planning recurrent costs and the necessity of a closer cooperation than in the past between the Ministries of Finance and Planning. 11. On the basis of the past correlation in Upper Volta between the rate of growth and investments it seems that the planned investment level would be too low to achieve the growth target. However, it is doubtful whether an increase in the planned investment target would be compatible with Upper Volta's absorptive capacity or with the availability of domestic and external resources. The Government is hoping to interest foreign investors in the exploitation of the country's mineral deposits, parti- cularly the manganese deposit near Tambao, but there is considerable doubt about the economic feasibility of such investments in view of the heavy transport costs involved. On the other hand, agriculture should benefit substantially from the international campaign for the eradication of riverblindmess, planned to start in 1974. Large areas currently made uninhabitable by the disease are likely to be resettled, and in view of the scarcity of good agricultural land, development of these areas should yield high returns. 12. Foreign aid will continue to play a decisive role in the development of Upper Volta, but if this aid is to be truly effective, there will be need for better coordination within the Government and for  some relaxation of present budgetary controls over development expenditures, possibly linked with additional revenue measures to cover the increase in recurrent costs. An economic mission organized by the UNDP visited Upper Volta towards the end of 1972, and a follow-up mission from the Bank is tentatively planned for late 1973 to continue the identification of projects suitable for external financing, together with related tech- nical assistance requirements. _130 In view of the prospective resource gap, the level of poverty of the country and its limited growth potential, foreign aid should continue on concessionary terms. External debt service at present absorbs about 7 percent of Upper Volta's export earnings, and although this figure is fairly low in absolute terms, it is high in relation to the country's very limited creditworthiness. Equally, Upper Volta cannot be expected to make any large contributions to the financing of public investment, and external;lending agencies must continue to finance a high proportion of local costs if development projects are to move forward. PART II: BANK GROUP OPERATIONS 14. To date the Bank Group's contribution to Upper Volta's develop- ment consists of four projects (Annex II). The telecomnmications project, for which an $0.8 million IDA credit was made in 1969, was initially delayed by difficulties in recruiting expatriate experts, but is now proceeding satisfactorily. The West Volta cotton project, for which a a $6.2 million IDA credit was made in 1970, is also proceeding satisfacto- rily, although drought conditions have kept production so far below expec- tations. The other two projects are only just starting: one is a road project (42.8 million) and the-other a rural development fund ($2.2 million) for both of which IDA credits were approved in FY1972. So far indications are that they are proceeding satisfactorily. 15. The Bank Group's strategy in Upper Volta is dictated by the extreme poverty of the country and the need to raise productivity in agriculture and animal husbandry on which the bulk of the population depend for a livelihood. A certain minimal infrastructure is required for the operation of the econony, and the IDA projects for telecommunications, and a possible future road project, are designed to help in providing this. For the rest, IDA lending is directed principally to the rural sector for projects in agriculture, education and village improvements. The campaign for the control of riverblindness in the Volta River basin should open up new opportunities for investment in land settlement and agricultural development, and the Bank Group will be ready to consider assisting in the preparation and financing of projects in this field when they are identified. 160 A second telecommunications project is being submitted to the Executive Directors for their consideration concurrently with the proposed  education project. This would help finance a major part of Upper Volta's 197h-1977 telecommunications development program. The project consists mainly of improvement and expansion of local telephone lines and switching facilities, provision of microwave links for national and international communications, training of personnel and consultants' services. The project would particularly improve telecommunications services between the rural areas and the principal regional centers. 17. A number of other projects are also under consideration for IDA financing. A second cotton project is currently being appraised and is scheduled for presentation to the Executive Directors in FY7h4 The feasi- bility of a livestock project and a rice project is being reviewed, and road studies now being carried out with financing from credit 316-UV are expected to lead to a second road project in due course. 18. The Bank Group is also considering active participation in the international agsistance program aimed at alleviating the effects of the current drough in the affected sahelian countries,including Upper Volta. A mission is currently in the field discussing such participation, and pro- posals for IDA assistance will be formulated in the coming weeks. 19. Upper Volta nevertheless remains one of the countries in which external assistance is limdted at present more by shortage of projects than by shortage of external fund B. The Bank Group has been a relatively small lender to date by comparison with the FAC and the FED, and it is not proving easy to raise substantially the level of IDA assistance. There is an acute scarcity of trained people in the country, and the administration is not geared to a high level of public spending. PART III: THE EDUCATION SECTOR 20. Upper Volta has both a formal educational system and a much smaller system of non-formal rural training. The formal system closely follows the French pattern; it emphasizes general knowledge as a preparation to higher studies, and is geared primarily towards the need of the civil service for clerical and administrative workers rather than towards supplying agricul- ture, industry and public services with managers, technicians and skilled workers. Besides being ill-adapted to the economic needs of the country the formal system is also very costly. Primary school teacher salaries are, for instance, up to 30 times per capita GDP. At this cost, formal education will always be the privilege of a minority. 21. Under the present Government, education has enjoyed high priority. While the GovernmentTs operating budget has been expanding by 5 percent a year current expenditures for education have been growing by 10 percent a year, and those for primary education by 17 percent, so that education's share increased from about 18 percent in 1964 to about 28 percent in 1972. At the same time the percentage of enrollment of school-age children has only rea- ched about 10 percent in primary and 2 percent in secondary education. More- over, class repeating and drop-out rates remained very high, with 18 percent  - 6 - of those who enter the primary cycle actually graduating from it. Therefore, to educate more of its people and fit them for relevant economiic occupations, Upper Volta will have to turn to a less expensive syry texi of education better adapted to the country's needs. 22. Recognizing this need Upper Volta soon after independence es- tablished a non-formal village education system parallel to the expansion of its formal system and built around a network of Centres d'Education .Rurale (CERs). The primary aim of the CERs is to provide rural youth, hitherto mostly illiterate, with a minimum of practical eduLcation so as to assist them in becoming more productive farmers. ;YThe period of sducation in the CERs is 3 years, equally divided between practical training on the CERst own fields and acquiring a basic general education, 23. This system is less costly. The salary of a rural education teacher is abou-t one third that of a primary school teacher, and the cost of a pupil in a CER is about CFAF 5,000 a year as coiWpared with CFA.TT 12,000 in orimary school, Also the drop-out rate is low and the school relates closely to village life; productivity per worker on the CERs con;pares favorably with that of the average traditional farmer. Nevertheless3 and despite this partial success, the CFRs have fallen short of their goals0 The use of French, which is a foreign language for the raral conunmities, as the medium of instruction makes learning co'nsiderablv maore difficult. Recruitment of teachers is based more on academic achievements than on ability to teach agriculture. Pupils have been gradually admitted at a younger age, which has tended to make rural edducation a less desirable system parallel to formal education and to reduce the likelihood that youngsters will thereafter settle in the irual areas. 24. The Government has recently come to recognize the necessity for a major reform of the whole education system* The growth of the formal system will be reduced. At the same timle, with UNESCdOtICEF asslstance, -;he Government will review both structure and content of primary education, and will give to non-formal education (i.e., at this stage, rural education) a higher priority than has been so far the case. Tn secondary education more emphasis will be given to practical subjects including the teaching of science, as a basis for further training at technical and professional levels. 25. The Government intends to raise the entrance ame for CERs to 15 years for boys and 13 for girls, to experiment with teaching in the national languages, to make the curriculum more practical and better related to ,re needs of rural communities and to strengthen the proficiency and interest  - 7 - of the teachers in practical matters relating to rural life. Moreover, the rural education system will be more closely coordinated with rural development services, both at the national and at the regional level. The Government has already undertaken action to place by May 1, 1974 the Direct- orate of Rural Education and the Directorate of Rural Development under the Ministry of Agriculture, which will be responsible for all aspects of rural development; and the Regional Development Offices (ORDs) will provide coordination between the extension services and rural education. 26. Rural schooling will in future lead directly to rural employment or to further training opportunities designed to bridge the interval between adolescence and adulthood. This will be done in two ways. First, there will be the post-school cooperatives (GPS) grouping ex-CER students into small cooperatives, assisted financially and professionally by the Regional Development Offices (ORDs). Second, there will be a small number of centers which would enable selected leavers to have access to further training as rural teachers or other rural development agents. 27. Higher education in Upper Volta is still at a very early stage of its development. In view of the limited number of disciplines offered enrollment is low and cost per student is very high. The Institute of Higher Education (CESUP), created in 1969 as a nucleus of a future uni- versity, prepares students for a diploma in literary studies* Together with two affiliated institutes, the University Institute of Teaching Technology (IUTP) and the Institute of Technology, Management and Ac*nin- istration of Firms, there was in 1970 a total enrollment of abou-t 120 Voltaic students, During the same year about 600 further students were being educated abroad, mainly in France and in Abidjan. 28. The modernization of education in Upper Volta will be a slow process, and there are many obstacles to be overcome before the country can be equipped with an efficient educational system adapted to the re- quirements of economic development. However, the changes now proposed are a move in the right direction and justify the full support of the Bank Group. PART IV: THE PROJECT 29. The proposed project draws from various studies of Upper Volta's rural education system (FAC 1965, UNESCO 1968, FiDES 1969, FED 1970 and 1972, IBRD Report No. AW-19a, Volume IV, November 1970). Two IDA recon- naissance missions visited the country in June/July 1971 and February 1972, and the project was appraised in May 1972.  rormal Fducation, 30. In the formal education sector, the project would strengthen the standards for science education by assisting 21 public secondary schools which require practical facilities, More effective science teaching iS expected to benefit 6,150 secondary students and particularly 950 students enrolled in science streams. %iral Education 39. In the non-formal sector, the project would help the Government improve raral education in the ORD's of Dedougou, Koudougou and Kaya by: (') pro-diding for reconstruction and equipment of 40 CERs and for equipment of 80 other CERs out of abcut 350 now in operation; (ii) creating and equipping about 350 post-school cooperative groutps of 15 CER leavers each; (iii) constructing and equipping 3 Rural Development Training Centers (CPR) for further training of 60 CER graduates in each center towards mzallng them rural development agerts; (iv) providing necessary technical assistance for the success of the project including an evaluation of the rural education program; and (v) studying the feasibility of an appropriate system to train managers for rural development projects. The project would be coordinated with, and complement* FED assistance for rural education of June 1972 (grant of $2.3 million) and the IDA credit for a rural development fumd, which was approved last,year. 32. Prior to negotiations about 30 CERs had already been identified by the Government according to criteria acceptable to the Association. A further 90 would be selected out of the remaining CERs. Criteria for eli- gibility for assistance under the Credit include the enrollment of a suffi- cient number of students at least 15 years old (for boys), 13 years old (for girls), operation for at least 5 years and the development of a variety of crops and raising of small animals on an adequate plot of land. Each center would develop at least four hectares of land with equip*ent provided under -iLhe project, under supervision of rural education supervisors attached to the ORDs. In at least 15 of the CERs teaching would be given in national languages on an experimental basis. A revision of the curriculum, entrance requirements and teacher qualifications would be undertaken and completed by May 1, 1975 i.e. by the time the first group of CERs benefiting from the project will be opened. 33. Since 1963 about 15,000 young people have gone through the CERs fin the project area, and 20,000 are expected to complete their training between 197h and 1977. It is estimated that these numbers will provide  -9- the potential for organizing about 800 GPS of 15 young men or women each having reached at least 18 years of age for men and 16 for women. The pro- posed project would assist in the establishment of a pilot phase of 150 GPSs. The groups are expected not only to provide their members with in- creased earnings and better nutrition, but also to reintegrate them into village life and help them in their role as propagators of improved techni- ques and practices. The groups to be organized under the project would be selected on the basis of annual surveys. Selection methods and criteria have been agreed between the Government and the Association. Each GPS would have a farm of at least 6 hectares and would receive credit, market- ing and extension services, to be financed under the proposed credit. 3l. The 3 CPRs would provide two years of general education and agricultural training for graduates from the CERs. They would enable students to enter the rural education teacher training institutes, the agricultural schools and rural development services, and would provide basic training in management and agriculture for volunteer group leaders within the GPS. 35. Technical assistance of about 16 man-years for the rural education items would include one rural development specialist in each of the three ORDs, with experience in cooperatives, credit and training, and a principal technical adviser to assist the Directorate of Rural Education. It would also include short-term specialists to assist in the initial survey and evaluation of the CERs and GPSs and to assess progress of the project and its final impact on rural communities. Two further man-years of the ser- vices of an equipment procurement specialist would be needed to help admin- ister the project. Foreign specialists would, where appropriate, train local counterparts. 36. A further component of the rural aspects of the project will be a feasibility study of a scheme for the training of project managers and executive personnel for rural development; this is estimated to require about 15 man-months. An initial study carried out by a French consulting firm has recommended that such training should be given on the job with the trainees assuming responsibility for the management of actual projects. Implementation and Management 37. The project will be implemented over a period of five years. It will be administered by a project unit to be created within the Ministry of Agriculture and headed by the Director of Rural Education assisted by a project manager. The project manager will be assisted by the directors of the project's ORDs, together with the three rural development specialists attached to them, and by an equipment procurement specialist. The project director will be responsible for all aspects of project implementation and will coordinate these aspects within the Government as well as with the Association. The three directors of the project's ORDs are currently not responsible for rural education in the areas under the jurisdiction of their ORDs. Assignment of this responsibility to them with regard to the proposed  - 10 - project, the creation of the project unit as well as the appointment of a suitab-e project manager, are conditions of effectiveness of the proposed credit. 38G Most sites for the project institutions have already been acquired. Land for foarming activities will be provided by the local communities con- cerned. Design and supervision of construction will be carried out by the Ministry of' Public works. Financing Plan 3-9 The costs of the project, including taxes, are estimated as foLlows: (in thousand dollars) Local ForeSR Total Science laboratories 250 430 680 Rural component 655 1,205 1,860 Study on project maanagers 15 85 100 Project admLinistration 130 150 230 Contiungencies 280 440 720 Total. 1,330 ,310,640 .l . The following table shows the costs of the project by type of ex-penditure: (in thousan.d dollars) Local Foreign Total Construction 500 500 1,000 Furniture 50 50 100 Equipment 110 450 560 Water Supply 90 90 180 1'echnical assistance and local personuel 300 780 1,080 Contingencies 280 440 720 Total 1,330 41. The proposed IDA credit of $2.85 million would be made to Upper Volta on standard terms. The credit would finance the foreign exchange costs of the project plus 40 percent of local costs, or an aggregate of 90 percent of total project costs net of taxes. The credit would also finance retro- actively up to $10,000 for expenditures incurred in connection with the survey undertaken by the Government for the selection of project CERs.  Procurement and Disbursement 42. The dispersion of the project schools and the small amount of construction work on each site make it unlikely that firms not already operating in Upper Volta or in neighboring countries would be interested in bidding for the contracts. Therefore civil works contracts would be advertised locaU y with copy to the local embassies of neighboring countries. For furniture and equipment, local manufacturers would be given a preferential margin of 15 percent of the c.i.f. cost of competing imports or the rn'te of import duties, whichever is less; this preference would also apply to members of the West African Economic Community. Small agricultural equipment for the rural education centers would be procured by the project unit after calling for quotations from local suppliers. 43. The credit would be disbursed against 100 percent of total expenditures for fur-iture, cattle and equipment, 100 percent of foreign expenditures or 80 percent of local expenditures for consultant services, 80 percent of total expenditures for the operating costs of the project unit and 73 percent of total expenditures for civil works. The credit is expected to be fully disbursed by June 30, 1979. PART V: LE3AL INSTNM TS AND AUTHORITY 44. The draft Development Credit Agreement between the Republic of Upper Volta and the Association, the Recommendation of the Gommittee provided for in Article V, Section 1 (d) of the Articles of Agreement of the Association and the text of a draft resolution approving the proposed credit are being distributed to the Executive Directors separately. The draft Development Credit Agreement conforms generally to the pattern of credit agreement for education projects. 45. I am satisfied that the proposed credit would camply with the Articles of Agreement of the Association. PART VI: RECONMEDATION 46. I recommend that the Executive Directors approve the proposed credit. Robert S. McNamara President Attachments: 3 Washington, D.C. June 7, 1973   ASl'EX T Page 1 of I COUNTRf DATA - UPPER VOLTA AREA: 274,200 iO 2 POPULATION: 5.49 mIllion (mid-1971) D/ PENSITY: LO per K." Rate of Growth: 2.0%t p.a. (1965-70) 57 per Ka- of arabir land 1 / PO'IULATTON C8ARACTERIdTICS (H3E5-70): I{EALTII: Crude Bi.rth Rote (per .1000) 49 Population Per physician 92,800 (1970) Crodn Death Rate (per 1,000) 29 Popoletino per hospital bed 1.64o (1969) eiz:atn Morta,lity (per 1,000 live births) 120 I PIRITTON (1964-66): EDUCATION: Calorie intake as 9 of reqoi re.ooets 90 Alult literacy rate 5-10%, Per capita protein intsnie 70.3 g/day Primary school eara]lneat tO% GNP PER CAPITA in 1970: 01$60 CROSS DOMESTIC PRODUCT IN 1970:3/ ANNllJAL RATF OP 9ROWTl (%, cansott pries) Udi Mln. ,ti 1945-hir