Dahomey - Domestic situation and prospects of Dahomey

RESTRICTED FILE COPY Report No. AW-9a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION ECONOMIC SITUATION AND PROSPECTS OF DAHOMEY April 13, 1970 Western Africa Department  CURRENCY EQUIVALENTS (a) Until August 11, 1969 US$ 1.00 = CFAF 246.85 French Franc 1.00 = CFAF 50.00 (b) After August 11, 1969 US$ 1.00 = CFAF 277.71 French Franc 1.00 = CFAF 50.00 ABBREVIATIONS BCEAO Banque Centrale des Etats de l'Afrique de l'Ouest BDPD Bureau pour le Developpement de la Production Agricole CARDER = Centre d'Action Regional pour le Developpement Rural CFDT Compagnie Frangaise pour le Developpement des Fibres Textiles FAC = Fonds d'Aide et de Cooperation FED = Fonds Europeen de Developpement FSSPPE = Fonds de Stabilisation et de Soutien des Produits a l'Exportation ICODA = Industrie Cotonti6re du Dahomey OCAD = Office de Commercialisation Agricole du Dahomey OCDN = Organisation Commune Dahomey Niger (Railways) SATEC = Societe d'Aide Tecnnique et de Cooperation SNANDA = Societe Nationale des Huileries du Dahomey SODAK = Societe Dahomeenne du Kenaf SONADER = Soci ete Nationale de Developpement Rural UNDP = United Nations Development Programme  TABLE OF COTTEBNTS Page No. BASIC DATA ........ ei - ii SUJ1MARY AND CONCLUSIONS ................. . ........... **.* i - iv I. POLITICAL DEVELOFMENTS .. .......................... 1 II. MAIN ECONOMIC DEVELOIEldNTS .................2...... 2 A. - General .........2 B. - Agriculture ........ .****. . 3 Development of production . .3 Agricultural policies ........... ..5 C. - Other Sectors **6* .. .*........ . 6 D. - Money, Trade and Aid ....................... 0 7 III. THE BUDGETARY PRDBLEM ................ . ............ . 10 A. - Recent budgetary performance 10 B. - Financing of the deficit - Public debt .... 12 C. - Financial position of public institutions ......... 11 IV. PROSPECTS ..... .............. ................. 15 A. - Prospects for improvement of Government finance ........ 15 The problem for 1969 and 1970 ......... 15 The budgetary outlook for the mid-seventies ............ 16 B. - Overall prospects for 1975 .............. 17 Exports ..... .o ......... 17 General 0 19 ANNEX- PROJECTION OF EXPORTS ........... ................. 1 - I'ABLES This report is based on the findings of a mission to Dahomey in May 1969 by L. de Azcarate and C. Bourgin caid on further information colle-ted b-7 H. "azin during a mission i:Ll Jainuary 1970.   BASIC DATA Area: 450,000 sq. miles; 116,000 sq. kms. Population (1968) mid-year est. 2.571 million Rate of growth: 2.8% p.a. Birth rate: 55 o/oo Mortality rate: 27 o/oo School attendance rate (1965): 24% Gross Domestic Product and Exenditure: Total GDP at market prices (1966): CFAF 48.9 billion;$198 million Per Head: CFAF 19,020; $77 Rate of growth 1960-68: 4h5. at current prices Origin of GDP factor cost (1966) Expenditure on GDP (1966) Agriculture 50 Private consumption 79 Manufacturing & construction 9 Public consumption 18 Services & transport 27 Gross fixed capital fonration 16 Government 14 Change in stocks Exports 16 Minus imports -29 100 100 Government Finance (billions CFAF) 1966 1967 1968 1969 (estimate) Current revenue 5T5 6T1 77 7.9 Current expenditure 7.3 6.9 7.5 8.7 Deficit (-) -1.8 -0.8 -1.0 -0.8 Money and Credit: Member of the West African Monetary Union (U4IOA) within the Franc area. billion CFA francs (end of year) 1966 1967 1968 Money supply 6.2 -0-6 -h94 Credit to economy 4654 4.84 5.14 Foreign assets (net) 1.67 1.09 1.90 Balance of Payments billion CFA francs 1966 1967 1968 Exports (f.o.b.) 4T.8 - y20 6e90 Imports (c.i.f.) -10.87 -13.80 -10.00 Current balance-' -6.52 -7.60 -6.30 Transfers 4.81 5.00 5.00 Capital (net) 0o15 (1.80)A/(2.30)-/ l/ ' fter non-factor services and factor payments. 27/ Incomplete.   - ii - .ro nocltcncentration of_exports (1965-67): As % of estimated As % of recorded exports exDorts Palm produce 37 55 Cotton 8 12 External Debt: Total outstanding as of June 30, 1968 Disbursed Total $ million 37.2 38.1 CFAF billion 10.3 10.5 Bank Group Operations IDA credit, (l44-DA, 1969) $4.6 million (Grand Hinvi Project for oil palm dcvelop,>eont)   DAHOMEY AGRICULTURE i H I & E RC AFRICA 'Lo^