Niger - Current economic position and development prospects (Vol. 2 of 3) : The agricultural sector (main report)

Report No. 487a-NIR Current Economic Position and Fit. c py Development Prospects of Niger (In Three Volumes) Volume 11: The Agricultural Sector (Main Report) Aug&st 20, 1974 Western Africa Regional Office Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group It may not be published, quoted or cited without Bank Group authorization.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 EQUIVALENTS Before 1969: US$1.00 = CFAF 247 1969-1971: US$1.00 = CFAF 278 1972: US$1.00 = CFAF 252 1973: US$1.00 = CFAF 222 1974 and after: US$1.00 = CFAF 250 WEIGHTS AND MEASURES (Metric System) 1 hectare (ha) = 2.469 acres 1 kilometer (kmn) = 0.6215 miles 1 kilogram (kg) = 2.2047 pounds 1 ton (t) = 1.1023 short tons = 0.9842 long tons 1 liter (1) = 1.057 US quarts FISCAL YEAR October 1.- September 30  NIGER CURRENT ECONOMIC POSITION AND DEVELOPMENT PROSPECTS TABLE OF CONTENTS LIST OF ABBREVIATIONS COUNTRY DATA MAPS SUMMARY AND CONCLUSIONS i - viii INTRODUCTION Production and Income ...................... 1 Foreign Trade ............................................ 2 Public Finance .......................................... 3 PART ONE: RECENT DEVELOPMENTS IN AGRICULTURE ..... ........... 5 I. Production and Trade ............................... 5 Overall picture .................................... 5 Main crops ......................................... 6 Millet-Sorghum ................................ 6 Rice .......................................... 7 Beans ......................................... 8 Groundnuts .................................... 9 Cotton ........................................ 10 Onions ........................................ 11 Tomatoes ...................................... 11 Livestock .......................................... 12 Fisheries .......................................... 13 The Drought ........................................ 13 II. Rural Development Structures and Institutions ...... 15 The farm system .................................... 15 Rural development institutions and services .... .... 16 III. Current Rural Development Policies ..... ............ 20 A - Development Programs ............................ 20 General coverage programs ..................... 20 Specific agricultural projects ..... ........... 21  Table of Contents (Cont'd) Page Specific schemes for livestock .... ............ 24 Irrigation projects ........................... 26 Agro-industries ............................... 27 Industrial projects in preparation .... ........ 28 The "drought program" ... ........................ 30 B - Investment and External Aid ..... ............... 31 C - Economic Policy Instruments: Prices, Subsidies, Taxation, Credit ............................... 34 Prices .......... .............................. 34 Subsidies ........ ............................ 36 Taxation ........ ........................... . 37 Agricultural credit ........................... 38 D - Training ................... .................... 39 E - Agronomic Research ............ .. ............... 41 PART TWO: LONG-TERM RURAL DEVELOPMENT PROSPECTS ............ 43 IV. Government Policy - Directions and Objectives ..... 44 A - Historical Background .......................... 44 B - Apparent Objectives ............................ 46 V. Problems and Constraints of Long-term Rural Development .................... .................... 48 A - Natural Constraints ............................ 48 B - Population Constraints ......................... 50 C - Water Resources: Constraints .... .............. 51 D - Economic Dependence ............................ 52 E - Institutional Constraints ...................... 53 VI. Strategy and Prospects ............................. 56 A - General Objectives and Development Styles ...... 56 B - Overall Development Strategy .... ............... 59 General coverage programs ..................... 59 Productivity operations of integrated rural development projects .... ................. 59 Irrigation projects ........................... 61 Livestock policy .............................. 66 Drought control ............................... 68 Processing of agricultural products .... ....... 69  Table of Contents (Cont'd) Page C - Outline of the Rural Development Program and Projected Results ...... ........................ 71 Expected results: agricultural production and exports ...... ........................ 79 Agricultural growth and population .... ........ 82 Prices .......... .............................. 82 Investments ........ ........................... 84 D - After the Next Decade .......................... 86 STATISTICAL APPENDIX This report is based on the findings of an economic mission that visited Niger in October-November 1973. The mission included Messrs. L. de Azcarate (chief), P. Streng (economist), and R. Sordoillet (agronomist, consultant). This volume was prepared by Messrs. Sordoillet and de Azcarate.   LIST OF ABBREVIATIONS BDRN Banque de D6veloppement de la R6publique du Niger CCCE Caisse Centrale de Cooperation Economique (France) CFDT Compagnie Frangaise pour le Developpement des Fibres Textiles CNCA Caisse Nationale de Cr6dit Agricole CSPPN Caisse de Stabilisation des Prix des Produits du Niger FAC Fonds d'Aide et de Cooperation (France) FED Fonds Europeen de Developpement FNI Fonds National d'Investissement IRAT Institut de Recherches Agronomiques Tropicales MER Ministere de 1'Economie Rurale NITEX Societe Nig6rienne des Textiles OCDN Organisation Commune Dahomey-Niger des Chemins de Fer et des Transports OFEDES Office des Eaux du Sous-Sol OLANI Office du Lait du Niger OPVN Office des Produits Vivriers du Niger SEPANI Societe d'Exploitation des Produits d'Arachide du Niger SHN Societ6 des Huileries du Niger SICONIGER Societe Industrielle et Commerciale du Niger SNC Soci6t6 Nationale de Cimenterie SONARA Societ6 Nigerienne de Commercialisation de l'Arachide SONERAN Societ6 Nigerienne d'Exploitation des Ressources Animales SONICERAM Societ6 Nig6rienne de C6ramiques SONIFAME Soci6t6 Nigerienne de Fabrication de Meubles M6talliques SONIPRIM Soci6t6 Nig6rienne des Primeurs SOTRAMIL SocietW de Transformation du Mil et du Sorgho UNCC Union Nigerienne de Cr6dit et de Cooperation   page 1 of 3 pages COUNTRY DATA - NIGER ARRA POPULATION DENSITY 1,267,000 ka7 4.25 million (mid-1972)3 32 /a Per lanlof arable land SOCIAL INDICATORS Reference Countrie. Niger 197l Sund Son=E ; ONP PER CAPITA US$ (ATLAS bASIS) a 130 90 100 /b 120 /b 260 /b DEMOGRAPHIC Crude birth rate (per thoueand) 52 /c 52 d 49 /d e 49 44 Crude death rate (per thousand) 27 7 23 7_ 24 _! 18 22 InWant mortality rate (per thoueand live birth.) 200c .. -. 94 156 /I Life expectancy at birth (year.) 37 7j; 42 39 48 42 Groan reproduction rate /2 3.1 3.5 3.2 3.4 3.0 Population growth rate s 3.0 2.9 /26 2.8I 2.1I Population growth rato - urban 6/h 7 7i 4 Age etruoture (percent) 0-14 44 /I 45 /a 44 /i 45 42 15-64 53 7! 52 7i 52 7ii 52 54 65 and over 37! 377 4 77 3 4 Depondency ratio A 1.6 7-n 1.0 7 ,n 1.1 7;i 1.0 /n 1.1 /n Urban population as percent of total 6 h 8 /h 6 /i 12 29 /I Family planning: No. of acceptors cumulative (thou.) No. of users (% of married worsen) EXPLOYIENT Total l.bor force (thoseands) 770 /o 1,900 /a 2,000 /I 7,40C /e 1,600 /e,q Percentage employed in agriculture 97 7o 91 7pi 88 8 7 73 Percentage un-nployed 7 INCOME DISTRIBUTION Percent of national income received by highest 5% 23 Percent of national income recoived by highest 20% i42 Perc.nt of national income received by lowest 20% 6 Percent of national income received by lowest 40% 18 DISTRIBUTION OF LAND OWAERSNIP % ouned by top l(S of owners S owned by smallest 10% of omners HEALTH AND NUTRITION Population per physician 71,000 /r 58,260 75 25G /a 15,940 14,940 Population per ursing person 7,500 7'r 77,040 16,090 77 1,950 2,110 Population por hospital bed 1,830 =t 2,230 640 1,0410 /u 730 /A 0ur capita calorie supply as % of requirements 5 90 /r 98 85 1v 96 /v Per capita protein supply, total (grams per day . 78 7i 63 59 7v7 64 7V Of which, animal and pulse 24 7i 9 24 77 28 7i bath rate 1-4 years /7 EDUCATION Adjusted /@ primary aohool enrollTent ratio 6 14 37 25 /a 44 If Adjust.d / secondary school enrollment ratio 0.3 /w 1 3 9 77 7 77 Yearn of schooling provided, firt and aecond level 13- 13 14 12 13 Vocational enrollment as t of sac, school enrollment 4 /-Y 6 /a 3 1 /a 12 /a Adult literacy rat % 5 19 7 10 7ii HDUSINO Averag No. of persons per room (urban) .. .. 1.9 /la 2.5/s Percent of occupied uoits without piped water 78 ; a 5b 36 Access to electricity (as % of total population) 16 2 6 A Percent of rural pupulation connected to electricity 0.0 CONSDPTIXON Radio receivers per 1000 population 1 36 20 12 If 69 Passenger care per 1000 population o.6 a 1 2 2 11 Electric power consumption (kwh p.c.) 3 9 32 25 84 Newsprint consumption p.c. kg per year 0.03 /a 0.04 0.2 0.08 Notes: Figures refer either to the latest periods or to sosoot of onvironmental temperature, body weight, and the latest years. lateat periods refer in principle to dietribution by age and max of national populations. the yeare 1956-60 or 1966-70; the latest years in prin- /6 Protein atandarde (requirements) for all countries as ostab- ciple io 1960 nd 1970. lishad by LSDA &ecomio Research Service provide for a minimum k The Per Capita GNP estimate im at mrrket prices for ailowanco of 60 grams of total protein per day, and 20 grams of yesrs other than 1960, calculated by the ease conversion animal and pulse protein, of which 10 gresm should be animal tecInique as the 1972 World Bank Atlas. protein. These standards are somewhat lover than those of 75 2 Average number of daughters per woman of reproductive gras of total protein and 23 grams of ainim. protein as an age. average for the world, proposed by FAO in the ibird World Food L Pbpulation growth rates are for the decades ending in survey. 1960 and 1970. s atuiiea have suggested that cude death rates of children & Ratio of under 15 and 65 end over age braekets to agea I through 4 say be wed as . firt approximation index of those in labor force bracket of ages 15 through 64. nalntrition. 5 FAD reference standards represent pbyeiological r- i Percentage enrolled of corresponding population of school age iremente for normal activity end health teaking as defined for each oountry. * Resent Bank mission astaixx for eid1972 is 4.TZL iuin. I 1969; /b 1959-60; /d 1965-70, UK eatimete; /I Estimate; If 19681 / 1960-72; A Definition A not a ale /i -11 teosnhpe and twrn planning rea and TII distriet oemnrs; a S ixty-eight touna; z Cap-Vert region a6g the cities of Saint-Luis, Thies, la1ack, Disurhel and Ziguinchor; Z Estimtae for dejure population, baasd on results of sample survey; /m 1966; & Patio of population under1S and 65 and over to total labor force; /j hetimate baaed an the reslts of a saple warvey and excludes labor foro of Niamey city, nomad population and foreigners; & FAO estiate; /q 1970-n; /r 1962; /e Coverage of data incomplete; A 1963; / Goverosent hospital etablishments; /v 1964J66j /& Not ino!iding private vocational schoolas /x 1965; Public education enly; / let inclu[g teacher training; /aa 19671 /a Urban only; /Ic 1M" Senegal has been selected as an objective country since ita GNP Is about three timea that of Niger; both countries are in the mame geographical area, have similar production patterln (with the same dominant crop -- groundnuts), share the sane monetary system and have about the same population. R2 November 5, 1974 A.X. tjc  Page 2 of 3 pages ECONOMIC INDICATORS GROSS NATIONAL PRODUCT IN 1969 ANNUAL RATE OF GROWTH (%, constant prices) FCFA Bln % 196 -6 196 - 19 GNP at Market Prices 103.0 100.0 Gross Domestic Investment 6.3 6.1 Gross National Saving 4.9 4.8 Current Account Balance - 1.4 - 1.4 Exports of Goods, NFS 10.6 10.3 Imports of Goods, NFS 17.2 16.7 OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1971 Value Added Labor Force V.A. per Worker FCFA Bln % Mln % FCFA Agriculture, Livestock, Fishing 51.95 47.6 Manufacturing 11.92 10.9 Construction 3.07 2.8 Services 40.15 36.8 Public Administration ( 8.24) ( 7.6) Other 2.03 1.9 Total/Average 109.12 100.0 GOVERNMENT FINANCE Central Government FCFA Bln