Mauritania - Second Education Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-3153a-MAU REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT IN AN AMOUNT EQUIVALENT TO US$4.6 MILLION TO THE ISLAMIC REPUBLIC OF MAURITANIA FOR A SECOND TECHNICAL ASSISTANCE PROJECT September 1, 1982 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Ouguiya (UM) US$1.00 = UM 47.00 UM 1 million = US$21,277 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS DEP Direction des Etudes et de la Programmation DP Direction des Projets DTF Direction de la Tutelle Financiere EEC European Economic Community FAC Fonds d'Aide et de Cooperation ILO International Labor Office- MP Ministere du Plan et de l'Amenagement du Territoire MIFERMA Mines de Fer de Mauritanie OPEC Organization of Petroleum-Exporting Countries SNIM Societe Nationale Industrielle et Miniere UNDP United Nations Development Program FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY ISLAMIC REPUBLIC OF MAURITANIA SECOND TECHNICAL ASSISTANCE PROJECT CREDIT AND PROJECT SUMMARY Borrower: Islamic Republic of Mauritania Amount: SDR 4.1 million (US$4.6 million equivalent). Terms: Standard Project Description: The proposed project would help the Ministry of Planning (MP): (a) formulate and monitor macroeconomic policy; (b) implement the Fourth Five-Year National Investment Plan (1981-85); (c) support the technical ministries in strengthening their sectoral planning capacity, and in identifying and preparing sound development projects; (d) continue the rehabilitation of 20 key public enterprises; and, (e) train Mauritanian professional staff in MP. The project would provide for 16 staff-years of services by expatriate resident advisers, 58 staff-years of services by local professional staff, about 110 months of short-term consulting services, and related expenditures for vehicles, office equipment and supplies, local support staff, and operating costs. Benefits and Risks: The major benefits expected from the proposed project would be the continuation of improvements in financial and economic management following the example set under the ongoing technical assistance effort; establishment of a pipeline of well-programmed directly productive investment projects (including increased attention to project implementation); improvement in the functioning of major parapublic enter- prises; and carefully planned training of local staff. The principal risks to achieving the project's objectives involve possible difficulties and delays in recruiting qualified expatriate resident experts; in attracting and retaining competent Mauritanian staff in the public service; and inadequate response by Government to policy recommenda- tions to be proposed under the project. Experience gained in implementation of the ongoing operation has helped the Government and the Association to agree upon appropriate measures to reduce these risks to a minimum. This document has a restricted distribution and may be used by recipients only in the performance of | their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Project Cost: Local Foreign Total --- (US$ million)---------- Resident Advisers 0.19 1.73 1.92 Local Professional Staff 0.37 - 0.37 Consultants' Budget 0.14 1.25 1.39 Training and Scholarships 0.12 0.28 0.40 Secretariat 0.20 0.12 0.32 Vehicles and Equipment - 0.10 0.10 Operating Costs 0.05 0.07 0.12 Total 1.07 3.55 4.62 Physical Contingencies - 0.01 0.01 Price Contingencies 0.24 0.53 0.76 Total 1.31 4.09 5.39 Taxes (0.17) ( - ) (0.17) Total Project Costs 1.14 4.09 5.22 (net of taxes) Financing Plan: Local Foreign Total ------(US$ million)---------- IDA 0.5 4.1 4.6 Government 0.8 - 0.8 Total 1.3 4.1 5.4 Estimated Disbursements FY83 FY84 FY85 FY86 ---------(US$ million)--- -- Annual 1.0 1.3 1.2 1.1 Cumulative 1.0 2.3 3.5 4.6 Estimated Completion Date: October 31, 1986. Economic Return: N.A. Staff Appraisal Report: There is no Staff Appraisal Report. Map-: IBRD 16452  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE ISLAMIC REPUBLIC OF MAURITANIA FOR A SECOND TECHNICAL ASSISTANCE PROJECT 1. I submit the following report and recommendation on a proposed Development Credit to the Islamic Republic of Mauritania for SDR 4.1 million (US$4.6 million equivalent) on standard IDA terms to help finance a Second Technical Assistance Project. The Credit would be on standard IDA terms. PART I - THE ECONOMY 2. A report entitled "Islamic Republic of Mauritania: Recent Economic Developments and External Capital Requirements" (2479a-MAU) dated June 4, 1979, has been distributed to the Executive Directors. Since then, a number of missions have visited Mauritania to monitor the economic and financial situation and prospects of the economy. Updated country data are given in Annex I. The Land and its People 3. Although not classified among the "Least Developed Countries" given its per capita GNP (US$486 in 1981), 1/ Mauritania bears many of the characteristics of those countries in terms of its physical and human re- sources. Most of the country is desert; agriculture, while supporting some 85 percent of the population, is generally limited to the sub-Saharan zone in the south, where rainfall is nonetheless sparse and irregular. Pockets of modern economic activity are found in the mining complex of Zouerate, the fishing center of Nouadhibou, and the administrative capital of Nouakchott. These activities largely account for the income level referred to above (mining and public administrative services alone account for a little more than 30 percent of total output). Yet only about 10 percent of the country's labor force is engaged in the modern sector, and the shortage of trained manpower poses a major constraint on economic development. Moreover, the centers of modern activity are geographically separated from the agricultural zone, and there is little economic interaction with the traditional sectors. 4. The extremely low standard of living of Mauritania's population (est. 1.5 million in 1981) is reflected in key social indicators: life expectancy at birth is estimated at 43 years, infant mortality is 143 per 1,000, less than 30 percent of school-age children attend primary schools, and only 17 percent of the population is literate in either Arabic or French. 1/ A major upward adjustment in estimated per capita income has been made following official adoption of a revised national accounts series and a downward revision of population estimates to accord with the results of the 1977 census. For comparison, GNP per capita in 1980 is estimated at US$440 ("Atlas Methodology"), as against US$320 previously recorded.  -2- Past Economic Performance 5. Stimulated by increases in iron ore production and the rapid expan- sion of livestock resources, Mauritania sustained an average annual growth rate of 8 percent during the 1960's. The economy experienced a sharp decelera- tion in growth in the mid-1970's, however, and a period of marked financial instability in the latter part of the decade. The economy stagnated over the four-year period, 1977-80, then began to recover modestly in 1981 (by an estimated 5.5 percent) with improved performance in the agricultural sector and fisheries. Nonetheless, given an annual population growth rate of 2.5 percent, real per capita incomes in 1981 were no higher than they had been ten years earlier. 6. Mauritania's generally poor economic performance of recent years is due chiefly to reduced world demand for iron ore, on which the country has traditionally been dependent for 70-80 percent of its export earnings, and severe and repeated drought in the agricultural sector. The effects of these factors were compounded in the 1970's by the prolonged military conflict in the Western Sahara and by an ill-conceived investment policy. 7. The Government's investment policy was undertaken with heavy inflows of assistance from abroad, particularly from OPEC sources, as well as borrow- ing from foreign commercial lenders. These resources were used largely to nationalize the mining sector in 1974-75 and to finance ambitious projects in transport infrastructure and a few large industrial ventures which proved unviable. As a result, external debt obligations accumulated to a peak of $77.4 million in 1976, as against $12.9 million in 1973, while the capacity of the economy to service these obligations failed to expand. 8. The repercussions of the unfavorable developments of the 1970's were immediately reflected in exceptional budgetary and balance of payments defi- cits. By 1977, the Government's current expenditure requirements alone reached a level nearly double its receipts, producing a current budgetary deficit of US$88 million, equivalent to 16 percent of GDP. On external account, despite massive inflows of foreign grants and loans, the country suffered a severe drain of US$43 million in net foreign reserves that same year. The Rehabilitation Plan and Subsequent Financial Stabilization Efforts 9. In mid-1978, the economic and financial situation led the Government, with the assistance of the Bank, to prepare a Financial Rehabilitation Plan which proposed as immediate priority the renegotiation of external debt totalling US$215 million, more than 40 percent of the disbursed debt outstand- ing at the time. The Plan also called for strict conditions on the Govern- ment's future borrowing, tight control of public expenditures and major revisions in public investment priorities. 10. Since the second half of 1978, Mauritania has regained a conside- rable degree of financial stability, largely through Government adherence to measures recommended under the Rehabilitation Plan and a subsequent IMF Stand-By arrangement of 1980-82. The improvement has also been facilitated by  - 3 - Mauritania's formal withdrawal from the Sahara conflict and, very importantly, by external debt relief and a continued flow of fresh concessional assistance from abroad. The earlier drain on the country's reserves has been curtailed or reversed in each of the past three years; for 1981, the net loss of reserves was a comparatively modest US$8.2 million. Secondly, the growth of the Government's current budgetary expenditure has been curbed: its level has in fact remained constant over the past three years (1979-81) even in nominal terms, and the current budgetary deficit has consequently been reduced by 40 percent from its level of 1977. 11. With respect to the investment program, the Government has pursued a relatively prudent course over the past four years. In accordance with recommendations of the Rehabilitation Plan, priority has been given to projects in the directly productive sectors, notably the Guelbs Project. Apart from Guelbs, the Government has declared that it will leave projects in the industrial sector to private interests, in contrast to its policy of the 1970's, and that public investment will be concentrated in those sectors which hold greatest potential for long-term growth -- agriculture and fisheries (para. 13). Medium-Term Outlook 12. Despite progress towards restoring Mauritania's financial equilibrium, the country will continue to rely heavily on concessional assistance from abroad, including local cost financing, through the medium term. At the same time, the economy should be significantly strengthened towards the mid-1980's as a result of expanded iron ore production. Although no improvement in real terms in international prices is expected before 1985, it is projected that by the mid-1980's, the volume of Mauritanian exports could climb to a level about 55 percent above that of the past three years as the Guelbs Project comes on stream. In the latter 1980's, production capacity would level off as the presently mined deposits (Kedia) approach depletion and their production is merely replaced by the Guelbs operation. 13. Throughout the medium term, careful management will be required on the part of Government to make optimum use of resources gained in the mining sector as well as the substantial foreign capital expected to be available for new investment elsewhere in the economy. Given the long-run outlook for a levelling out and eventual decline of iron ore production, the Government's strategy in this period inevitably calls for a transfer of resources to those sectors which coufld in time constitute a renewable base for economic growth. The fisheries sector offers considerable development potential, especially as a foreign exchange earner. Present Government policy is to encourage joint ventures in the sector. So far, results are encouraging: 1981 recorded fish exports reached US$100 million, double the amount posted for 1980, and accounted for close to 40 percent of the country's total merchandise exports. With.a longer term perspective, the Government is currently examining possible investments in fisheries infrastructure to permit further expansion of the sector. A second sector which holds considerable potential for growth is irrigated agriculture, particularly expanded paddy production. Climatic vagaries in the major food producing zones of the Senegal River Basin are such  - 4 - that fully controlled irrigation is considered by the Mauritanians to be the most feasible means of narrowing the food deficit. (In a year of poor weather conditions, cereal production may meet only 20-25 percent of the national requirement). Whereas less than 2,000 hectares were under irrigation in 1980, Government plans call for irrigating an additional 10,000 hectares by 1985. The rate at which land can be brought under irrigation which the Government's targets imply may be optimistic for the medium term, given the high cost of infrastructure required, the paucity of indigenous technical expertise and the very fundamental socio-economic changes indicated by development of irrigation. 14. In a country which confronts as severe ecological and institutional constraints to development as does Mauritania, special efforts are required to identify sound projects, to make effective use of external resources and to maximize the potential of its respective economic sectors as the bases of renewable growth. The extent to which the Mauritanian economy can be released from its constraints in the medium term will depend heavily on the availability of technical expertise to assist management of its investment program and thereby facilitate implementation of the very difficult structural changes called for in the Government's development strategy. PART II - BANK GROUP OPERATIONS IN MAURITANIA 15. The Bank Group has had 17 operations in Mauritania for a total of US$220.2 million. Of these, two were Bank loans for mining operations (US$66 million for MIFERMA in 1960, and US$60 million to SNIM in 1979 for the Guelbs Iron Ore Project). Fourteen others are IDA credits totalling US$70.2 million. Of the IDA operations, five have been in the transport sector, five in the rural sector, two for education, and separate projects for urban and rural development, petroleum exploration, and a First Technical Assistance Project to the Ministry of Planning (MP). Annex II contains a summary state- ment of Bank Loans and IDA Credits as of March 31, 1982, and notes on the execution of ongoing projects. 16. Implementation of Bank Group projects has often been delayed by administrative inefficiencies within the Government. Moreover, project costs have tended to be very high and often to incur large overruns, due to the long distances involved within the country, the pervasive lack of basic infrastruc- ture, the small number of contractors in operation, and the need to recruit large numbers of expatriates to implement works and to staff projects. These factors have been aggravated by the exceptional political situation which prevailed in Mauritania throughout the 1970s. The historical pattern of disbursements of IDA funds has remained extremely slow over the years. So much so, that in the mid-1970s, the Association responded to the clear need for strengthening the implementation and management of ongoing operations by sending more frequent supervision missions to provide support to the Government. There has recently been some improvement noted in overall project implementation and in the levels of Credit disbursements.  17. The Mauritanian authorities are well aware of the many difficulties being encountered in project execution, and recognize that some of these will persist for several years for reasons outside of the Government's control, particularly those related to the country's peculiar geographic characteristics, the poor infrastructure base, and the lack of skilled manpower. The Government has in fact been making studied efforts to tackle the manpower problem, and IDA assistance has been provided under the Second Education Project approved earlier in FY82, and is planned under the project described in the present report, as well as a separate operation now being prepared for technical assistance to the rural sector. These projects are all expected to improve Government's capacity for project preparation and monitoring in key sectors of the economy, and will thereby help the Government to make prudent invest- ments in operations which are well adapted to the particular circumstances of Mauritania. The proposed Second Technical Assistance Project would spe- cifically identify ways in which procedures within the administration can be improved, and the traditional bottlenecks in project execution eliminated. 18. The Bank Group presence in Mauritania was fairly substantial in the early seventies, and in 1970-72 it was the third largest donor (providing about 18 percent of Mauritania's external capital assistance) behind France (21 percent) and the EEC (19 percent). Since then, external financial assis- tance to Mauritania has increased rapidly, and in recent years the Bank Group's share has decreased to about 6 percent. The importance of the Bank's economic and technical advice remains strong, however, and there exists sub- stantial scope for implementing a country development strategy which empha- sizes: (a) dialogue with the Government on financial and economic issues, all in cooperation with the IMF and other external aid donors; (b) technical assistance to help improve national economic management and increase the country's absorptive capacity; and (c) direct project assistance for a few high-priority operations, with special emphasis on mobilizing and coordinating the provision of large amounts of external aid from the Arab OPEC countries and from traditional donor agencies. PART III - THE NEED FOR TECHNICAL ASSISTANCE IN MAURITANIA 19. The Mauritanian Government has made considerable efforts since Independence to improve the national education system and to increase the quantity of trained local manpower; nevertheless, primary school enrollment of school-age children remains less than 30 percent, and the population's literacy rate in Arabic or French is only 17 percent. The total number of secondary school graduates remains low, and they eventually satisfy only about 30 percent of the demand for skilled-worker and middle-managerial and profes- sional positions. This shortage of skilled manpower affects all segments of economic life, but is particularly acute in Government services. The various problems caused by the shortage are compounded in the case of the public administration and parapublic agencies by rapid expansion of the sector in the past three or four years, and by high staff turnover caused by frequent political changes. Therefore, while Government would wish to gradually free itself from the influence of large-scale external support, it nevertheless recognizes that the need for technical assistance in all areas of domestic public administration and economic management will continue for some time to come.  - 6 - 20. Technical assistance in Mauritania is provided by several bilat- eral and multilateral agencies, with France giving the single largest share. This assistance is particularly crucial to the functioning of the education system, where expatriates still comprise a full 60 percent of secondary school teachers. Technical assistance personnel also feature largely in many Minis- tries (notably Finance and increasingly in Rural Development) and in public agencies, where they provide active operational support to local staff. This support has been overwhelmingly for the provision of specialized technical expertise, although a few expatriate personnel have been in positions where they could offer policy advice and important managerial assistance. Of these latter, two advisers financed by the French FAC have been assigned to the Cabinet of the Minister of Economy and Finance for the past two years to work on fiscal policy; but even in this case, their responsibilities are more directed to improving tax assessment and recovery procedures than with overall public finance policies. There is therefore a clear and continuing need for an operation which can offer the Government at the same time both important technical guidance and broad policy advice. 21. While the technical assistance efforts as noted above have con- siderable merit, overall effectiveness of the operations in which they are involved remain limited by cumbersome administrative procedures and constant reshuffling of the Government and restructuring of its institutions; by the high turnover of technical staff, and continuing difficulties in finding competent expatriate candidates; and by the general shortage of, and lack of incentive among, qualified Mauritanian counterpart personnel. This has resulted in a widespread concentration of the work of expatriate advisers on routine administrative tasks, and a relative neglect of more substantive issues. In addition, since the country has access to considerable resources in the form of official development assistance and suppliers' credits, there has been a tendency to enter into investments which are not based on adequate sectoral priorities or rational selection criteria. 22. Within this overall context of technical assistance activities, the Association has played its most active role at the operational level, mostly in the provision of project managers. In an extension of this effort, IDA has financed technical assistance to help the Government build up its capacity for investment planning, and to strengthen project preparation and selection in the rural sector. Particular sectoral operations (notably in education, highways, and petroleum development) have also included financing for studies and services of long-term advisors to help improve sectoral planning within particular technical ministries. 23. The First Technical Assistance Project to the Ministry of Planning (MP) was identified and prepared during the mid-70s when the serious deterio- ration in Mauritania's public investment performance became apparent to the Bank and to key officials in the Ministry. It was clear that efforts to remedy the deficiencies would have to be undertaken at several levels: (a) a better perception was needed of where Mauritania's long-term comparative advantage existed; planning efforts would have to be re-oriented, and proj- ect identification work undertaken, on the basis of a realistic assessment of development potential and priorities; (b) the overall process for project  - 7 - selection, preparation, and monitoring needed to be gradually improved; and (c) expert assistance was needed to advise Government on a broad range of economic and financial policies. Following discussions with Bank staff on macroeconomic policies, the Government requested IDA to provide a five-man team of resident experts (two macroeconomists, and three sector economists in industry, agriculture, and transport). In making this request, the Government expected that the team would review and help implement the new Third Five-Year Investment Plan (1976-80), assist both MP and the technical departments and parapublic agencies with project identification and preparation, and train a few selected Mauritanian economists and project officers in macroeconomic management and project evaluation. Although the Association had some reserva- tions about the sectoral composition of the Third Plan, it agreed to finance the proposed team, assuming that the project content of the Plan and the overall structure of future investment programs could be positively influenced by sound economic advice and expertise. Credit 665-MAU (US$2.7 million equivalent) was approved by the Executive Directors in November 1976 and became effective in April 1977. 24. As it turned out, the project was implemented in an environment that was very different from the situation during its preparation. Escalation of the Sahara conflict in 1977-78 destroyed tthe country's political stability and created acute short-term economic and public finance problems which needed urgent solutions, and which took priority over long-term investment programming and attention to careful project identification and preparation. The work of the IDA-financed team was therefore diverted from revision and implementation of the Third Plan, and focussed instead on: (i) providing the macroeconomic framework for the 1978 Financial and Economic Rehabilitation Program; (ii) contributing to design of the Program's austerity measures; and, (iii) helping to monitor their implementation. Consequently, instead of preparing a large number of new projects as intended, the team spent considerable time reviewing the economic and financial viability of ongoing projects, including the sugar refinery which in the end never started production, and the oil refinery for which more detailed studies (to be financed under the Petroleum Exploration Project) will be carried out. 25. Another major task undertaken by the team (assisted by short-term consultants) was a comprehensive review of the situation and prospects of 20 public agencies and parapublic enterprises in several sectors, including the design of recovery programs to provide additional working capital to selected enterprises as necessary. In addition, in a situation where there was little room for large new investments, the team helped Government to re-orient its industrial policy towards labor-intensive small-scale enterprises and revise the Investment Code, and studied the need for and implications of price and incentive policies required to improve food production. Finally, the tech- nical assistance operation allowed development of a system of data collection on ongoing projects to facilitate monitoring and supervision. Ex-post evalua- tion and sectoral studies carried out under the team's supervision have provided the basis for several elements of the Fourth Five-Year Investment Plan now under preparation. In view of the above, the project did not (and could not have) achieve all its initial objectives, but it has nevertheless contributed substantially to the recent improvement in Mauritania's public finance and investment performance.  - 8 - 26. One weakness in project implementation was in the area of training. The technical assistance did make an important contribution to the training of a small number of Mauritanian economists who worked directly with them in the Planning Ministry; however, the experts had little time available to orga- nize formal seminars and training programs that could reach a larger group of administrative and technical specialists. This shortcoming has been recog- nized in the design and preparation of the proposed second project, and special efforts will be made to ensure effective training of counterpart personnel. Organizational Structure of National Planning Functions 27. Responsibilities for national development programs are assigned to MP, but the organizational structure to carry out these responsibilities has changed frequently over recent years. Even within the implementation period of the First Technical Assistance Project there were several reorganizations, and the team found itself having to make frequent adjustments to these changes. Within MP, two departments remain primarily responsible for planning and project preparation. The Department of Studies and Programming (Direction des Etudes et de la Programmation - DEP) is responsible for monitoring macroeco- nomic developments, formulating national plans and sectoral investment pro- grams, and coordinating investments at the regional level. The Department of Projects (Direction des Projects - DP) is responsible for project evaluation and supervision, and for negotiations with external financing agencies. This organization is, in fact, a simple one and would normally be expected to function effectively; however, there have been several cases of considerable overlap between the functions of the two departments on important and sensi- tive issues, and this has considerably diminished the effectiveness of their respective functions. Government has agreed to establish and maintain clear and distinct terms of reference for each department, and will ensure that each professional staff member understands his particular function in execut- ing these terms of reference (Section 3.08 of draft Development Credit Agreement). 28. A significant organizational point concerns the parapublic sector, for which the technical assistance team under the first project carried out a comprehensive review. Since then, a Department of Financial Control (Direc- tion de la Tutelle Financiere - DTF) was established in 1981 within MEF with responsibilities for monitoring the situation of the parapublic sector, includ- ing evaluation of the economic and financial prospects of public enterprises. Specialist services in accounting, management, and training will be provided to the Department by the International Labor Office (ILO) with funding from UNDP. The technical assistance team to be financed under the proposed second IDA project will work closely with the ILO team and with DTF itself to carry out a comprehensive analysis of investment planning and project programming for the parapublic sector, and to prepare medium-term recovery programs for individual public enterprises as appropriate.  - 9 - PART IV - THE PROJECT 29. The proposed Second Technical Assistance Project would continue efforts started under the first operation to establish a competent analysis of Mauritania's macroeconomic situation, to make realistic projections of available domestic and external resources and, on this basis, to effect improvements in short- and long-term investment planning and monitoring. The project was identified in September 1980, and appraised in July 1981. Since then, continuing discussions have been held with Government to establish clearly its objectives and expectations for the project, and to prepare the groundwork for efficient implementation. Negotiations were held in Washington D. C., on June 17, 1982, with a Mauritanian delegation led by S.E. Dieng Boubou Farba, Minister of Economy and Finance. There is no Staff Appraisal Report. 30. The proposed project, to be implemented from 1982-86, includes provision for: (a) four expert advisers. A team leader (general economist) to co- ordinate and supervise the work program, and to advise the Minister of MP on macroeconomic policy (para. 32). Two sector specialists to provide advice in: (i) industry, fisheries, and small-scale enterprises; and, (ii) rural development including livestock, dry-land farming, and irrigated agriculture (paras. 33-35). A financial analyst to assist in: (i) updating recovery programs for about 20 key public enterprises; and, drafting "program-contracts" (para. 36); and, (ii) providing support to the team's sector specialists. (b) about 110 man-months of short-term consultancies for feasibility studies and review of particular aspects of sectoral issues. Specialized consultants would be engaged from time to time to help fill gaps in the expertise of each adviser in their respective fields, and to work on special development issues, for example, in urbanization, health and nutrition, and human resource development; (c) services of 16 local professional staff (including 12 presently employed in DEP and DP, and 4 to be recruited during project imple- mentation). These professional staff would work closely with the expatriate experts, and would participate actively in training programs provided under the project; and (d) scholarships for short-term overseas training programs, and pro- vision for planning and implementing local training seminars on issues related to public finance, parapublic enterprises, and economic development generally. Project Organization and Implementation 31. The project would be directly attached to the Cabinet of the Minister for Planning, and would be managed by the leader of the technical  - 10 - assistance team under the supervision of the Minister. The team leader would continue to have the Government's agreement to exercise appropriate power and authority in carrying out his obligations as spelled out in the team's terms of reference (Section 3.03 (b) of draft DCA). The team would be expected to work in close collaboration with the MP departments responsible for planning, project operations, and financial control (paras. 27 and 28). An annual work program including training would be established in agreement with the Govern- ment and IDA by June 30 of each year. This program would specify how much of the team's time would be allocated to the respective MP departments, taking into account the nature of their responsibilities (Sections 3.10 and 3.11 of draft DCA). 32. Terms of reference of the technical assistance team would specify that the team leader would help the Minister of MP to formulate and monitor macroeconomic policy, in full collaboration with the Directors of the relevant MP departments. Periodic meetings of the departments would be organized with the Chief of the External Debt Service and representatives of the Central Bank to review recent developments in the fields of public finance, investment planning, balance of payments and debt management, and to propose recommenda- tions to Government on macro-economic and investment policies. 33. The project team would help DEP to formulate medium- and long-term development strategies and annual investment programs and to monitor their execution. Assistance would also be provided to DEP in implementation of short-duration studies (in coordination with the technical Ministries) to determine what institutional and administrative reforms may be needed in particular sectors to allow a significant increase in the country's absorptive capacity. The desired cooperation with technical Ministries is particularly relevant for several other ongoing IDA-financed projects, and will be assured in particular sectors by the presence of advisers in planning units financed under the Second Education Project, the Technical Assistance Project to the Rural Sector, and the Petroleum Exploration Promotion Project. 34. As regards the Department of Projects (DP), the proposed technical assistance operation would continue and expand earlier efforts to strengthen the system for data collection, processing, and analysis. The Government is making its own deliberate efforts to strengthen DP, including drafting a decree which makes the Department solely responsible for seeking official development assistance for all projects, and authorizing the Department Director to sign all withdrawal applications for externally-financed development projects. In order to execute these responsibilities effectively, DP will have to provide assistance to help the technical ministries improve their methods of project identification, preparation and analysis, of presenting documentation request- ing external assistance, and understanding the policies and procedures of external aid agencies. 35. The Department of Studies and Programming (DEP) now serves as the Secretariat to the Investment Commission. However, the Commission reviews only those investment proposals which seek access to benefits offered under the Investment Code, so that many large and important public investments are in fact made outside of the Plan. The Government now wishes to emphasize the importance of efficient development planning and to improve methods of project selection. It has therefore agreed under the proposed project to  - 11 - establish a system in which all public investments of over US$3 million equivalent would be subject to a detailed economic review. A draft proposal for such a system would be submitted to the Association for review and comment by June 30, 1983, and the agreed procedures would be officially established by December 31, 1983 (Section 3.12 of draft DCA). 36. Parapublic Sector. The technical asistance team would also work in close collaboration with the ILO advisers in the new Department of Financial Control. Particularly, they would assist in promoting the use of a systematic accounting procedure among the key public enterprises, and would complement ILO's management and training program as necessary, using provisions under the project for scholarships and for the organizing of local seminars (para. 37). The team would also be responsible for updating recovery programs prepared under the first project for 20 major enterprises, and for helping to implement these programs as appropriate, including required management reforms. The team would also assist Government and selected public enterprises in establish- ing and implementing a system of "program-contracts" which would transform the recovery programs into detailed action plans and performance indicators to be monitored by management of the enterprises and by the appropriate ministries. 37. Training. The proposed project envisages three types of training activities as follows: (a) on-the-job training. Staff of DEP and DP would be increased by four new Mauritanian graduates (with the equivalent of Master's degrees in macro or sector economics) to be recruited by Government (Section 3.06 of draft DCA). The Government has provided a program of recruitment for these staff members and a list of duties to be performed. The project would also provide a specialist in training on periodic short-term assignments to establish a detailed program to be carried out during specified times (say 4-6 months) for each of the 12 existing staff in the two Departments. Government would carry out an annual review of performance by the respective staff members on their agreed work programs (Section 3.07 of draft DCA). The resident project advisers would offer continuing assistance and guidance to local staff. (b) Scholarships. The project makes provision for short-term overseas scholarships to allow selected staff members who respond well to the on-the-job training, and who have had at least one year of service in MP, to develop specialized skills. Scholarship funds would also be made available to the technical ministries for quali- fied staff with at least one year of service, and with priority given to personnel responsible for sectoral planning and project preparation. Following Government's recommendations, the Associa- tion would approve the qualifications of each candidate, and the objectives and program of the proposed training (Section 3.10 of draft DCA). Additionally, in an attempt to increase the exposure of Mauritanian staff to the workings of a large organization and a large group of financial interlocutors, the project includes provision for periodic short trips to World Bank headquarters by staff of MP, to be planned in agreement with the Association.  - 12 - (c) Training Budget. The project includes funds for recruitment of short-term specialized training consultants, and for office supplies and other operating costs to prepare in-country seminars dealing with macro-planning, the project preparation cycle, business manage- ment, and related financial or economic issues. The resident advisers would arrange and supervise the seminars, and would guide the preparation of appropriate programs. Detailed proposals for all training programs to be financed under the project would be submitted to IDA for review and approval (Section 3.10 of draft DCA). Project Costs and Financing 38. Total project costs (net of taxes and duties) are estimated at US$5.2 million equivalent, including foreign costs of about US$4.1 million (about 80%). The proposed IDA Credit of SDR 4.1 million (US$4.6 million equivalent) would finance 100% of the foreign costs and about 39% of the local costs, representing about 85% of total project costs; remaining local costs of US$0.8 million equivalent would be provided by the Government. Cost estimates are based on actual experience and disbursement records under the ongoing First Technical Assistance Project. Cost of consultants (including allowances and travel) would average about US$10,000 per man-month for resident advisers, and about US$12,500 per man-month for short-term experts. Costs for vehicles, materials, and equipment include physical contingencies of 10%, and price contingencies of 8.0% annually for 1982-83, 7.5% for 1984 and 7.0O for 1985. Costs for resident advisers, consultants, local salaries, scholarships, and operating costs include price contingencies of 8.0% annually for 1982-83, 7.5% for 1984 and 7.0% for 1985. 39. In response to the clear need to induce staff to remain in the public sector and also to motivate new personnel to join MP, the project would finance salary premiums for Mauritanian professional staff in the DEP and DP. This is a practice which already exists for local staff of the DTF as part of a UNDP-financed technical assistance operation. Government has therefore agreed to prepare a reward system which would provide adequate incentives to the staff of DEP and DP by December 31, 1984 and to have implemented the system by October 31, 1986 (Section 3.09 of the draft DCA). Procurement and Disbursements 40. Selection of resident advisers and short-term consultants would be done in consultation with, and under terms and conditions satisfactory to IDA (Section 3.03 (a) of draft DCA). however, the team leader and the two sector specialist advisers have already been working effectively under the first project, and Government has agreed that their contracts would be extended under the proposed second operation. IDA supports the Government's wish to use qualified local consultants as much as possible, either independently or in collaboration with foreign firms. Nonetheless, because of the shortage of qualified consultants in Mauritania, most technical assistance would have to come from foreign consulting firms. Because of the small size and proposed timing of individual purchases of vehicles, equipment and materials, amounting to a total of US$100,000, procurement would be by local competitive bidding procedures acceptable to IDA. For contracts under $10,000 equivalent, local shopping would be employed (Schedule 3 of the draft DCA).  - 13 - 41. Proceeds from the proposed IDA Credit would be disbursed as follows: (a) for resident advisers and short-term consultants, 100% of total expenditures (US$2,980,000 equivalent); (b) for equipment and vehicles, 100% of total expenditures (US$110,000 equivalent); (c) for operating costs: - office supplies, 54% (US$55,000); - special staff allowance, 100% (US$76,000); - fuel and maintenance costs, 54% (US$40,000); - secretarial services, 89% (US$166,000); (d) for training: - consulting services, 100% (US$37,000); - operating costs including office supplies, 54% (US$70,000); - scholarships, 100% (US$200,000); (e) initial Deposit into the Special Account (US$100,000). After refinancing advances under the PPF (US$500,000), an amount of US$266,000 would remain unallocated. Disbursements would be fully documented, except for those made against special allowances, secretarial services, office supplies, and operating costs for the project and for training, where certified state- ments of expenditures would be used. Detailed documentation for the latter would be retained by the Borrower and made available for inspection by supervision missions (Section 4.01 (b) of the draft DCA). 42. Following the practice under the First Technical Assistance Proj- ect, MP would establish and maintain accounts for all project expenditures, except for salaries of the resident advisers which would be paid directly in order to avoid delays in salary payments. For other project expenditures, two revolving funds would be established to facilitate project implementation. The first revolving fund, referred to as the Special Account, would cover all items financed by IDA, except consultant services for which direct payment procedure can be used, and salaries and allowances of resident advisers. Opening of the Special Account in a treasury account, on terms and conditions satisfactory to IDA, would be a condition of effectiveness of the proposed Credit (Sections 2.02(c) and 5.01(a) of the draft DCA). Upon Credit effective- ness, an amount of US$100,000 equivalent would be withdrawn from the Credit account for deposit into the Special Account. Further replenishments would be made by IDA on receipt of satisfactory evidence that expenditures paid out of the Special Account were eligible for financing out of the proceeds of the Credit. However, should any disbursement from the Special Account fail to meet eligibility criteria, the Government would have to deposit the correspond- ing amount into the account from its own resources (Section 2.02(d) and (f) of draft DCA).  - 14 - 43. As an additional condition of Credit effectiveness, the Government would open another account, referred to as the Borrower's Account, in a treasury account for payment of its own counterpart contributions. Govern- ment would make an initial deposit of US$50,000, and would replenish the Borrower's Account every quarter on the basis of supporting documentation for expenditures incurred and project expense forecasts (Sections 3.02 and 5.01(b) of draft DCA). Both the Special Account and the Borrower's Account and supporting records, as well as certified statements of expenditures, would be audited annually by independent auditors acceptable to IDA (Section 4.01 (b) and (c) of draft DCA). The proposed Credit includes provision for the required auditing services. Project Benefits and Risks 44. The proposed project has been designed primarily to help the Mauritanian Government focus on the country's financial and economic problems, and to formulate a coherent macroeconomic policy and implement it efficiently. By so doing, the project is expected to go a long way in strengthening the skills and experience of local staff, so that tasks similar to those under the project could be continued on a systematic and sustained basis. Consequently, the major benefit expected from the proposed project would be the continuation of prudent financial and economic management, and carefully planned training of local personnel. Additional benefits are expected from improvements in the parapublic sector, from the establishment of a pipeline of well-prepared directly productive projects, and from more efficient use being made of domestic and external resources due to better screening of planned investments and increased attention to project implementation. 45. To ensure that the benefits as suggested above are realized, par- ticular care has been taken during project preparation: (a) to recruit a highly qualified team leader and to introduce him to the job under the First Technical Assistance Project; two other advisers would continue their assign- ments as sector specialists (rural and industrial), since they have proved their effectiveness under the first operation; and (b) to give a substantial amount of financial autonomy to the project so that neither the Government's financial difficulties nor delays in administrative procedures would seriously jeopardize implementation. 46. The most serious project risk concerns the recruitment and retention of competent local staff, given the existing shortage of qualified personnel, and the fact that the opportunities open to them in the parapublic and private sectors are more attractive than the proposed project can offer. This problem will continue to be a difficult one for some time; but to some extent, the risk is limited by the small number of new local staff to be recruited under the project, and the fact that continued financing of salary premiums is proposed. There is an additional risk that the policy and program recom- mendations which would arise from the work of the project would not be adopted by Government, but it is expected to reduce this risk through a well-designed work program in which the local professional staff will have fully participated. IDA would also make special efforts in this regard by carrying out regular reviews directly with the authorities concerned on the results of feasibility studies and the recommendations proposed for sector policies and programs, and then by ensuring that appropriate follow-up measures are taken.  - 15 - PART V - LEGAL INSTRUMENT AND AUTHORITY 47. The draft Development Credit Agreement between the Islamic Republic of Mauritania and the Association, and the Recommendation of the Committee provided for in Article V, Section I (d) of the Articles of Agreement of the Association, are being distributed to the Executive Directors separately. 48. Special conditions of the draft Development Credit Agreement are listed in Section III of Annex III of this report. Special conditions of Credit effectiveness include: (i) opening of the Special Account (para. 42); and, (ii) opening of the Borrower's Account together with an initial deposit of US$50,000 (para. 43). 49. I am satisfied that the proposed Development Credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 50. I recommend that the Executive Directors approve the proposed Development Credit. A. W. Clausen President Attachments Washington, D.C. September 1, 1982  - 16 - ~~~~~Annex I Page 1 of 5 pages TABLE 3A MAURITANIA - SOCIAL INDICATORS DATA SHEET MAURITANIA REFERENCE GROUPS (WEIGHTED AVlAGES AREA (THOUSAND SQ. KM.) - MOST RECENT ESTIMATE)- TOTAL 1030.7 MOST RECENT LOW INCOME MIDDLE INCOME AGRICULTURAL 394.5 1960 /b 1970 /b ESTIMATE lb AFRICA SOUTH OF SAHARA AFRICA SOUTH OF SAHARA GNP PER CAPITA (US$) 100.0 200.0 440.0 250.8 1053.2 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 18.0 170.0 195.6 66.5 610.1 POPULATION AND VITAL STATISTICS POPULATION, HID-YEAR (THOUSANDS) 889.0 .1138.0 1462.0 URBAN POPULATION (PERCENT OF TOTAL) 3.4 12.8 23.0 17.8 28.3 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 2.7 STATIONARY POPULATION (MILLIONS) 9.9 YEAR STATIONARY POPULATION IS REACHED 2135 POPULATION DENSITY PER SQ. KM. 0.9 1.1 1.4 27.7 54.7 PER SQ. KH. AGRICULTURAL LAND 2.2 2.9 3.6 86.7 129.9 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 44.0 45.3 45.8 44.8 46.0 15-64 YRS. 53.3 52.0 51.5 52.3 51.1 65 YRS. AND ABOVE 2.7 2.7 2.7 2.9 2.8 POPULATION GROWTH RATE (PERCENT) TOTAL 2.2 2.5 2.5 2.7 2.8 URBAN 16.2 15.8 8.4 6.2 5.2 CRUDE BIRTH RATE (PER THOUSAND) 50.7 49.9 50.3 47.3 47.2 CRUDE DEATH RATE (PER THOUSAND) 27.1 23.9 21.5 19.5 15.7 GROSS REPRODUCTION RATE 3.4 3.4 3.4 3.2 3.2 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. .. USERS (PERCENT OF MARRIED WOMEN) .. .. FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1969-71-100) 107.0 102.0 75.0 88.7 90.7 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 101.2 94.9 93.8/c 90.2 93.9 PROTEINS (GRAMS PER DAY) 87.5 83.6 77.17W 53.1 54.8 OF WHICH ANIMAL AND PULSE 55.2 54.3 46.37W 18.4 17.0 CHILD (AGES 1-4) MORTALITY RATE 42.7 36.1 30.6 26.7 23.9 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 37.2 40.3 43.2 45.6 51.0 INFANT MORTALITY RATE (PER THOUSAND) 184.5 161.9 142.9 129.9 118.5 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 17.0 .. 23.9 URBAN .. 98.0 16.0/d 54.9 RURAL * 10.0 .. 18.5 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. .. .. 25.8 URBAN .. .. .. 63.1 RURAL .. .. .. 20.2 POPULATION PER PHYSICIAN 37041.7 16735.3 13697.0/c 32097.3 14185.2 POPULATION PER NURSING PERSON 4994.7/e 4199.3 1982.57W 3264.6 2213.2 POPULATION PER HOSPITAL BED TOTAL 4379.3 2709.5 2488 1/c f 1225.0 1036.4 URBAN .. 653.5 1250.67W' 249.5 430.8 RURAL 4797.9/1ef 5036.9 3536.87Wt? 1712.1 3678.6 ADMISSIONS PER HOSPITAL BED .. .. HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. .. URBAN .. .. RURAL .. .. AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. URBAN .. .. RURAL .. .. ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. URBAN .. .. RURAL .. ..  - 17 - Annex I Page 2 of 5 pages TABLE 3A HAURIY1TF -SOCIAL INDICATORS DATA SHEET MAURITANIA REFERENCE GROUPS (WEIGHTED AVl AGES - MOST RECENT ESTIMATE )- MOST RECENT LOW INCOME MIDDLE INCOME 1960 /b 1970 /b ESTIMATE lb AFRICA SOUTH OF SAHARA AFRICA SOUTH OF SAHARA EDULATION ADJUSTED ENROLLMENT RATIOS PRlMARY: TOTAL 8.0 14.0 28.0 63.2 83.3 MALE 13.0 20.0 36.0 72.7 96.1 FEMALE 3.0 8.0 20.0 50.3 80.4 SECONDARY: TOTAL 0.4 2.0 6.0 10.2 15.3 MALE 1.0 3.0 11.0 13.2 19.4 FEMALE 0.04 0.4 2.0 6.6 11.3 VOCATIONAL ENROL. (X OF SECONDARY) .. 12.5 .. 7.9 4.7 PUPIL-TEACHER RATIO PRIMARY 20.0 24.0 41.3/c 47.4 38.6 SECONDARY 16.8 24.0 25.0C 26.2 23.4 ADULT LITERACY RATE (PERCENT) 5.0 10.0 17.0 34.0 35.6 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 0.4 3.6 .. 3.0 31.9 RADIO RECEIVERS PER THOUSAND POPULATION 13.5 48.3 77.1 34.8 71.8 TV RECEIVERS PER THOUSAND POPULATION .. .. .. 1.7 17.9 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION .. 2.5 .. 2.9 19.1 CINEMA ANNUAL ATTENDANCE PER CAPITA .. .. 0.3/c 1.1 0.6 LAbOR FORCE TOTAELLABOR FORCE (THOUSANDS) 274.4 339.2 418.2 FEMALE (PERCENT) 3.8 4.1 4.3 34.1 36.3 AGRICULTURE (PERCENT) 91.0 88.0 85.0 78.4 56.5 INDUSTRY (PERCENT) 3.0 4.0 5.0 9.2 17.7 PARTICIPATION RATE (PERCENT) TOTAL 30.9 29.8 28.6 41.4 37.0 MALE 59.8 57.8 55.6 53.9 46.9 .ZMALE 2.3 2.4 2.4 29.1 27.2 ECONOMIC DEPENDENCY RATIO 1.5 1.6 1.7 1.2 1.3 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS HIGHEST 20 PERCENT OF HOUSEHOLDS .. LOWEST 20 PERCENT OF HOUSEHOLDS .. LOWEST 40 PERCENT OF HOUSEHOLDS .. POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. 134.3 507.0 RURAL .. .. 110. 82.9 200.6 ESTIMATED RELATIVE POVERTY INCOME LEVEL (USS PER CAPITA) URBAN ,. .. 330.0 96.4 523.9 RURAL .. .. 120.0 60.4 203.6 ESTIMATED POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN .. .. .. 39.3 RURAL .. .. .. 69.0 Not available Not applicable. NOTES /a The group averages for each indicator are population-weighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1978 and 1980. /c 1977; /d 1976; /e 1962; /f Government hospital establishments only. May, 1982  - 18 - Annex I DEIIISOFSM ICTR Page 3 of5 pages Mae:Although the data ate draw fre soresgneal judged the mast authoritative and reliable, It should als be notd that they may not he inter- nationaly -a,perabie~ becaus of the lark of stsdaedleed definition and concept, used by difftLeretcn isIt collecting thedae, "r.The daaer.. ec the le..s . usful to describe orders of egnitude. indicate ttends. and haracteris certain major differences atenconrr The eeec 1:1~Iguoups re ll t'~,he naeconr goP of rho nub Jeoc cou.t. and (2 (anntygru t omwa ihigheraverge, Incom that the . co lyr group of the sub] et country lenept for "HIghIncome OilEtportrn" group attre 'Middle IncomeNorth AfrIca and Mlddle an"Ich.se. because of stron.ger soclo-culural all olciesI.In the rfcuegroup data the a-rges are pop,laflJo vishfed aithmetic means foe each odlcacor ao1d nhaZ olI ae majoriy o thI outn l a group has data for thatL itdi-atr.- tioce the coverage of conre Rno the Lud Ic_tor depensonte nlei 'hy'f at and is not f.lrs, cauion muc he enercised in relating aoegsof one indicator toarthr Thes.. eae reolusfL.I opro th dolu f. on Indicatr. an time a-o the country and r eec groups. AREA Ithbou.and nq.km.l ouainprHsIa ed -ttl es,adrol-Pplto ttl Totl. - Tonalcur ac ae cwtn laud are aod inland wate..; 1979 data, ura,ad rarel dloded bytheLIr respect irenmbru hosptlbd Agrirultr-l - Estim-t of agricu1itur.l area used te,mpurstily or permansany arolable to putic sed petosne genera ao .d specialimed hospitll. ade- foe -proes patre,mrket and kitchet gardens or to II. fallow; 1919 data, hubitlitatio cetrs. Nopitu,ayes a sh-,n,, pemntletflfed byatleston Physiciar. Establisheut proiigpicplyomo GNP PiER CAPITA 10111 - GOP Per cep ita es Ltna Loyren market plicru. cal- din nar ar o nlde.RrlhsItl.h nr intlude healeb rlatefd hy-y nm ovrsion method As World Bank Atlas (1971940 hasinl; 1960, and medica cenersno permanenly steffed hy a physficia (but by A 1910 ..ad 19L daa,mdiasustn . us, Iwfe et. itih offerL t-patintaroe dation wed proide a Limtd range at medica ifacil!itie. Poertts ENERGY CONSUMPtTION PiR CAPtTA - onAl. cronsuPtion of Corcla1 eneryj (ca.ie upue ra opinaLn -Inlde WtHOn prIncplgnrlhmie and ligniteP.... pet .em natural gan andhydro- .nulear en.d geothera n1c-_ and ruraL hos~pitals, Lnc or rareI hospitlsl and medical end maternity cc~ Iciy) in kilograms of coleqialn per capital 1960i 1970, nod 1909 centrs.. Spe Lalleed hospitals era includedonly underut1 data,Admissions per nospita1 Bad - Totl1 number of adnisnions to or discharges from hospitlsl divided by the number of beds. POPUILATION ANDO VITAL. STATISTICS Total Populatan., Old-Year (th ...a.d.) - ho of July 1; 1960. t970, nod 1960 HOUSING data. Average Sine of Hleasehold (pelrsons pr hu-ebod). 1-toal utben, end rural- urban Populaion (percent o1 tota) - BAcllo of urton to ro-n pupulan ion A house hold consists of agroup of idivIdual. nh share livying quete different deftlicinnu of urban arean may ffec co`Patablicy of data andtheir malt mels A boarderorlo.dger may or may not he included In ameng count ries; 1960, 1970 ..ad 1II dalf. the hh..sebhid for-tatistca pupoes Paualo nyer20 - CurrentL population projectiuns ure hated on 19Sf her of prospero nalubn n rua Louped onnnt.onL' total Popullaion by ag -n e nd: thi or ttyadletdiy ue.wlins _ePwtt..e... Y, eel ings eul ldr o-emnn srcue n PrJectionprmeesfor sml ty race copi f three anlseso- uocpepats. Log lIfeepcay anbrrinr tg hat onr's" peronpica Income Accent to ilorc pecnfo elIns -ttt urban, and ral -. leel ad "al Lf enpctnc annbl len t0. er. The pata- CotnRo1delnsnbeecrct nlvn uresa meters for fectlityrat als hae hreeelatnngdcieI of tota.1 urben, and rura d-ellings epctv ahcutYIste L sngnd oe f _et tre ohia lt ofwrtly tlllCATIONi and fertility trends forpoecinpupsn Adj..tad Rnolmngllon Statinaryyopoaclo-Inacuc coar poplaIo ter I cgotaLie Prmr coo oo . mALe and fensu-irn toa P. maean eml rhe birth rate isequal cc the dethrue and -lto he ageururu r- enoleto lI gea h rmr evla ecnae f rasPertn mains conn.an.. Thi in achieved only afterfertilIty -aren dectins to primay school-age pnp.uILars -oralY includes chitdean aged h-1li rhe raplacement le-1 of colt ve reprodution rate, h..n each generation Yena u adjusted foe differeo1t E leghs ot primary educa ion; for Tl ome rrlaeuinef enly. Th nninnay Populatio Ileewascoutries wIh Itura duu o nrlmn ay enceed 101 percent estimaedonrh lhanbis of- the rjce hratruso tho olco nince som ppila are eo bo hv the officiLe scholge In the year li00. and therein of decline of fertiliy rene no yrplace Srcdondry nchool - total, male and female - Computd as above; secodarr men level. edction require at ALe..es four years of appeoed primaryisrcin Vetsat- ns ponularico in reached- Th. yea when .tin ..usty population provides genrl.. a onl or1 teac.L L.herl trining instruct lots for PuPIs uise till be reahed. usualy tf 12 L. 17 years of agel cores.pond.enc corss e genatelly Per an k. - l-erppuIlatio pee sqnekilom ete 1100 hectarasl of voatonl_ en.roile (rercent of mcodey) - Lfrio... Ins.titutions ttlue;1 .1970 and 197da. include technical, IndutIl or hr proram ahIch operate ind.pnd- Per s. A. ag Iuno l lod - Cop_cd an alon for agricultural laud e-tly or em depsemnno.ncuayInttto onZlY;l1960.S1971 and 1979 dan. Puptl-teacher rAtio - primay, and letondwry- Totl std,, Isentled LIn PopultIon ge Stuctue 1 percen) Childrlen 10-CA yearL.) .-eokig-age (IS- primary and secondary Ieeln dicided by toem o Lechrsi the Alyas.no4eie (1 1yearn and ove) an perenagnof aid-year popc- correponding lerelt. Iair 90 00 go~d 1900 LdAt. Adult li fteLyacr.ae lerceotn - Liteesne Adults lable to red end ante) Pouato IGothgn (p.eren) - total - Aoonla grwtr eaten of tota eid- asparcen-nn of total adult poplation eted IS yearn andovr Yer Fpp fnio fr 1900-hO 196-70. ad 1970-80. Population Growh Bat (percen) -orhat-aevual growth -ren of urban popa- CONSUMSPTION muons. for 1950460. 1960-70. and 1970-8h. Pan..engee Cars (pre thousan d populatlanl rnegor core coprise matt Crude BtInt Bat (pe theusadl) - ou`ual line births Per thousand of mid-year cassaig-esta ight per....n; etc ldes muane,hearses and population; L960. 1970, and 1980 data. lL tray vehilen Crude tenth Rate (pee thounar.d) - a-...I dentht per thousand of mid-year Badl Recivr lee"r thutand population) - All typen of reciversfo radio popultion 1961 197, and1900data,broacast to generalPubLc per thou..od o ausi or ue n crssapeodt cti Ba BeAeeg combr of dautgtrnaenmanill hear LIn liooned recivers In conenad lvyarn rise regintentlo of redio hernormarwproduclnaperidtfhntn.parieoces ,l;.... pceine-pelfIcr- einn a.ine!ffec dain foerec...ent. yern my.t.e.mblesIrce itfy rae;usal fineyeaaerte Lniu in 1960 170, an 90 ot onre blished li ...enstog. Pnitvlnnn- oa'cpotAeul(busns-,uatmen aton TV'R:eci-ers (pee thuad tuo to)TV recivers forhodrst of birt-contrl deoten undr auspice' o naional (ily planning proram gnral puL per thousan.dpouaion; etcludes uli .ce.ned t eevr Pnsir ..nn. -len petino mari"rie oe)-Percernage of married11 in counrIes and In yertn aisrt o of TV sets wani.f.t wome of child-b . eaingoge 1-44 years who.s bi-nh-c-uro devices to Newspaper Circallaiot (ret thousand.po.pulatPion)- Shows the vrg oir- al ineld woe nsm ge group. cIlni-io of '"dailygera iners neeppr'LeInedam peiodical ubrelndevoted yrmal ytoreorig gnlnw.It is conidered POOP ANtD NUTRITION no be "daily" if ir Appel-sti least fourL cte kor. I.d.o of rood.Productiond per Capita 19h-71100( - Irdec ci per.capita annual Ciead lAtndnevrCaiapr erttd on the noehee of pe.odutLinf Lifood cidie.Prrduton etc -Ldesed adfeed and ticketa sold during the year. including admissions to dnne-in ciema in on calendar peat ha.il. Co-dliei tone primary goods (e.g. sugarcave and mabile ila ioateadufunrw ihaedbleordr-vnainuoscienns (e.g. cuff.esand eaeecudd). Aggrgoteproduto oeah c0..0cry in baned o AO O nato-a anLerae pedurer price woight,; 196I-h. 1970, oad 1900 dan.toTal1 Labor Froec (thousan.ds) - Etco.omituy act ive persona, toctluding Per cupito surely of cLor.iea (perceot of rviaet)- Computd fro armd fuec- and ..raployrd hoc eL Lludig hous-inen ,stuen,. tc eargy, equivalen of netIfodupitnnnlaeIncnryeraIa con-ieg populutiou of all agem. DefinItL..n in oar oa onre.r pe a.AvaIlblenplimcmrisedoesi productio.` epor_ lean no i cmpro Ale; 1960. 1970 and 1980 data. euports, andchanges in sock, net nupl ian earlode animal fend.newand, FemaIe leercent - resal labo forca percentage of tote1 I.bor force. quat iteusd i odporso, nod 1o-se in disteIru io. qire- Agriculture (percent) -'thefrei nmi oetry,. huntingan =ent, wre estImated by PAO I..ed ton physooIa, nesfrnomla -fitting us percentge of total inbor forre; h9h0, 1970 and 1900 data. cIty and health cons.idering eornetl teenue,bd egt.ae industry (percent) - tutor force LI siting, co ..c.in . grfac gring and se_dltib. L otl ofpplaln,ed allowing 10 perc_ni for wase a and rlect1tcln9y.0aster nd gas an p-rcetnege of tonal labor force; bou..ahold leve; 1961 -65j.1970 and 1977 dat. 1P_I ...Lo e 9 61, 1900 and 10 aa Per capr ma spnir of Profei (grass pc dan) --Poencnen fprcpita Participation tact (percent) - total, maLIn and fn.ae - Palrtlcipati ionr orsppl of Ifood pot dr. f'nn suply of foodindeine ea above En- activicy rats, ate couted en totL1, male, and female labor forre allowancesof 60 gin of tota prtenper day and 20grs ofaimlad 19160, 190,ad.91980dat. Teeaehtd nIlspricpto ae poise p.rotin, o hirl 10 gume should ha alta1 proteLIn Thssad- reflecthgatetnsrue ofit.oplain,an onrime trend. A anial roninan n verge rtheword, Prooe byru i teThrdIcnoi DependencjBt - Balio of pcpulntiov under 15 and 65 adoe World rood Survy; 196 14, cop an7.d 1977 dat. no the iota o 1 labor force. Per _ndia pronel n_pply iron .nma and pul -rni sploffood de- Lined iron animl,nod pulses LIn gr- per day ; 1961405,1970 and 1977 dana. INCOME DISTRIBUTION ChilId (age 1-A I ah hote (reth ..o.n.nd) - coual deansprthousan d lv Pcetgof PIvate-- Inoe(both Iv cath and kind) - Receli-d by rIchbest ugeg..oulIA years1.nocildren InthinaegoP,forecsnd.evei,intcun- I orrennrnohoslprr-,nrs 72ecn.0nroeib ecn tisdata derived fro. life al, 1960.' 170 nod 1900 dntu. of house hoLds. HEALTHf POVERTY TARGET GR0UPS Lif rinec any.:an P.1b (y.rena rg nuber of yearn of life romainiog the:lllf snge1 imaett re 'eyP"'timt meaue of poverty level. at' birt;190 190nd190dt ad should hel lirpraced:Zy n ..hcosderbl eetin Infant Mortality R-i leer thousand) - Aenu-l deab lifeaudroeyear itmtdAslt oet noetvl(S e apt)-rn n ua of aepee tho.usand, trebirths,; ,1960, 1.970 end 900dat.- Absolute poverty income level Is hbsi _Icm leve beowwich a miniml Aces o Oasatr Leeco orfpplation -talurban no.d rural - Nu.- narteii snlly Adeqonte diet plus... esenial nov-food requiremets is tot her of peeplelit. uthan . ad rursi.with re anbl aces to sale affordAble. lee upy ( includes irnoted sraewtr or rtetdbtucnniedd Eslima= teuivei Panery Iormeeve (0S' perspita) -urban and rutsl eae ,uh asta rmpoetdbrhia pig.adente el)e ua aaiepoverty innon leve i...one-third of enAge Per Pinp, perrwca1m a theirrseciepopulatIons. nnrbsnesepblieroe icm o h country. Urban Lerel in derived-ftethrra fountain or ansdy-nm .. loaed oi -rew then 100 meters frosa.h...ma. e eiwt adjstmntorhighe cost of lining n-h-nerea- tonsidered asb bin.gwishinreoa Lecemof then house. In rural areas Lasmte uPpoeion HL- Absolute Poverty Inom Levl-e1 et urban reamonaie accss woud ilytl that the housewife or members of the house.hold an rd L -. Percen of .popurimit (urbae und lotra( wha.r abeolats do tot hens to spend a dimptopottinAtw pert of she day in feerhing the ycour family' m eater nsds. Aces oRcet Osaac(are: ofpalain -1 toa,ura,ad ruralj - percenna1gen of the ir renpectine poPulan ions Encreta diapomal ma nlu.de th uiniaesdda m.I noaht orwisi -teetet. af bnm ewtr.ta and waste-wter hpetr-on Ysir oe the use of pin privies and mim- Pewpunl.ts eme Phys~icia- Popullaion dinidedi by e't- of preoniming phymi- Rununnir an lnii PeDts Minnie riesquliie Pa a medie srhlatI tericy lv.iaomtAsalysim and Poj Dias tparemes Pnenmein ea NariagPsrwn - Popslatian divided by n.mber of peasitg a 1962 maead Enma:legrae cm names, --tttnu .m p_wonloaIn-rana ad stet _muiap ismd  Annex I Page 4 of 5 Pages - 19 MAURITUIA ECOhOUC IINDICATORS GROSS NATIONAL PRODUCT IN '931Y A1T, RATW OF GROWTH (- constant rices)k US$ Eln. . 1973-76 4977-80 1981i, GNP at Market Prices 7>I.7 10040 f.0 -- 5.2 Gross Domestic Investment 317.1 43.8 2.9 0.3 16.7 Gross National Saving 205.4 28.3 Current Account Balance -111.7 -15.4 Exports of Goods, NFS 362.8 50.1 -1.7 0.8 -1.4 Imports of Goods, NFS -522.8 -72.1 OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1980 Value Added Labor Force V.A. Per Worker US$ Mln. S ~~~~~~Thou. SU Agriculture 140.2 22.4 357.1 85.4 392.6 26.2 Industry 117.5 18.9 20.5 4.9 5,731.7 Services 369.4 58.7 40.6 9.7 08. Unallocated - ... 1,499.5 100.0 Total/Average lw I 0 CENITRAL GOVERNNEN FINANCE UM .N10. i of GDP l