Mali - Agricultural Sector Adjustment - Investment Project

Dcument of The World Bank FOR OFF1CDAL USE ONLY Rqent No. P-5324-NLI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS FOR A PROPOSED DEVELOPMENT CREDIT IN AN AMOUNT OF SDR 40.7 MILLION TO THE REPUBLIC OF MALI FOR AN AGRICULTURAL SECTOR ADJUSTMENTIINVESTMENT PROJECT May 25, 1990 lThis document has a restricted distribution and may be osed by redpients only In the performance of their official dutdes. Its contents may not otherwise be disclosed without World Bsok aui,orization.  CURRENCY EQUIVALENTS Currency Unit G CFA Franc (CFAF) 1 US$1.00 - CFAF 290 (March 1990) CFAF 1 million - US$ 2,900 GOVERNMENT FISCAL YEAR January 1 - December 31 1 The CFA Franc is tied to the French Franc (FF) in the ratio of FF 1.0 to CFAF 50.0. The French Franc is currently floating.  FOR OMCIAL USE ONLY ABBREVIATIONS AND ACRONYMS ADB African Development Bank AV Association Villageoise BCEAO Banque Centrale des Etats de l'Afrique de l'Ouest (West African Central Bank) BDM Banque de Developpement du Mali (Development Bank of Mali) BIC Impot sur lea B6ndfices Industrie's et Commerciaux BMZ Bundesministerium fuer virtschaftliche Zusammenarbeit (Federal Republic of Germany dinistry for Economic Cooperation) BNDA Banque Nationale de D4veloppement Agricole (National. Development Bank for Agriculture) CCCE Caisse Centrale de Coop4ration Economique (French Aid Loan Agency) CKDT Compagnie Malienne pour le Ddveloppement des Textiles (National Company for the Development of Textiles) CNAUR Comite Nationale d'Aide trrgence et de Developpement Rurale DIGIS Directoraat Generaal vocr Internationale Samenwerking (Government of the Netherlands International Aid Agency) DNHE Direction Nationale d'Hydraulique et d'Energie du Ministere de l'Industrie et de l'Hydraulique (National Directorate of Hydraulic Power and Energy) FAC Ponds d'Aide et de Coop6ration (French Aid Agency) GREA Groupe Rdgiortal de l'Eau et de l'Assainissement pour l'Afrique de l'Ouest (West African Regional Group for Water and Sanitation) IER Institut de l'Economie Rurale (Rural Economy Institute) IFAD International Fund for Agricultural Development IMF Interniational Monetary Fund 1fW Kreditanstalt fuer Wiederaufbau (Federal Republic of Germany Aid Agency) NGO Non-Governmental Organization ODIK Operations de Developpement Integre du Kaarta ODIPAC Office de Developpement Intdgre des Productions Arachidieres et Cerealieres (Office for the Development of the Production of Groundnuts and Cereals) ODR Opdrations de Developpement Rural (Regional/Commodity Development Agencies) OHV Operations Haute Vallee OPAM Office des Produits Agricoles du Mali (National Office for Agricultural Products) ORSP Office de Regulation et de Stabilisation des Prix (Price Stabilization Fund) OTER Operation des Travaux d'Equipement Rural eFP Policy Framework Paper PRMC Programme de Restructuration du Marche CdrEalier au Mali (Cereals' Market Restructuring Program) SPA Special Program for Africa WAMU West African Monetary Union ZAER Zone d'Animation et d'Expansion Rurale REPUBLIC OF MALI This document has a restricted distribution and mar oz usc- by recipients only in the performance of their official duties. Its contents may not othewle be dis; -.ed without World ank authorization.  - iii - AGRICULTURAL SECTOR ADJUSTMENT IINVESTMENT PROJECT PROJECT SUNMARY PART I. THE ECONOMY PART II. THE AGRICULTURAL SECTOR PART III. THE SECTOR ADJUSTIMENT/INVESTMENT CREDIT A. Objectives and Origin B. Justification for Hybrid Concept C. The Policy Agenda - The Cotton Sector Adjustment Program - The Cereals Sector Adjustment Program - Natural Resource Management Issues Reforms of Rural Development Instituti')ns (ODRs) - Eft