Niger - The economy of Niger

RESTRICTED FILE COP-Y Report No. AF-77a 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 The report may not be published nor may it be.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 THE ECONOMY OF NIGER July 8, 1968 Africa Department  TABLE OF CC]NTENTS Page No. BASIC DATAoooooooooo.ooooo.ooooooo oooooooooooo.oooooo MAPS (3)00000o0 00o00o000000o0ooo.oo.o.oa. . .o0 0 0 0 SUMMIARY AND CONCLtJSICNS ......0oooooo0o0o0oooooooooooo0i - vi I. GENERAL BACKGROUNDo 0 o0.0.0.00 00 00 0 0ooooo0ooo0ooo 1 Natural0000o0 00.0.0.0000o0oo...0..0... 0 00000 1 Soc jal.0000000000000000o... 0000 0...0 000 .. 0000 .o.o 2 Government and Policies000.......0000000000000 2 II. OVERAL ECONOMIC STRUCTURE AND DEVELOPMENTS00...00 4 A0 Overall view 1956-66oo0000o00Q0 00 0 00 00000 00000 4 B0 The use of resources and growth000o000....00.0 B General: the primary generation of income0000 8 Factors of growth0000o000000..0000000000000000 9 Induced effects o.00000000000000000000000000ooO 12 CO The achievement of financial equilibrium000000 13 Public finance.00o00oo00000000000000 0000 0000000 13 External finance000..0000. 000000- 00ooo .0000000 18 Monetary developmento00000000000000000000000.. 24. Savings and Investmentoo00000000000000000000oo 27 III DEVELOPMENT PROBLEMS AND PROSPECTSo.......o.....Oo 31 A0 Overall review of planning0o00 .0000....0..O... 31 B0 The sectoral development strategy0000000000000 32 C. The budget and development policy0000000000000 35 D. External balance.0.00..0..0...0.0000..00.00 a .. 38 ANNEXES Note on the Uranium Mining Company..0.....0.o0 1 Notes on Projections00000Ooooo0oo0Oooo00000 00 1 - 8 APPENDIX-TABLES This report was prepared by a mission which visited Niger in November/December 1967 and was composed of: Luis de Azoarate Roger Adams  RASIC DATA Area: 4909000 sq. miles; 1,3009000 sq. kms. Pfopuation (1966): 3,350,000 rate of growth: 2.5% to 2.8% p.a. school attendance - 1957: 4% 1967: 10.5% Political Status: Independent since 1960 Gross Domestic Product: (billion CFA francs, current prices) 1956 1960 1966 (est) Total 45.9 50.1 77,0 Estimated real growths 0 32% GDP per head (1964): approximately CFAF 20,000; $80 Structure of GDP (1964): Orgin % Uses % Agriculture 62.0 Private consumption 73.0 Secondary sector 11.0 Public consumption 13.0 Tertiary sector 20.0 Gross investment 14.0 Government 7,0 Exports 15.5 Imports -15.5 100.0 100.0 Savings and Investment (billion CFA francs) 1960 1964 1. Domestic savings 4.7 9.1 2. Public transfers (net) 4.0 4.3 3, Private "transfers" (net) -3.7 -4.5 4. Available savings 5,0 5. Adjustment (+) -_4 -ol 6. Gross investment 4.6 9.0 7. Investment rate as % of GDP 902 14.0  Central Government Budget (billion CFA francs) 1960 1965/66 1966/67 10 Current revenue 3.9 8o4 8.5 20 Current expenditure 501 7.8 8.5 30 Balance -1o2 +07. - 40 Investment expenditure -0.5 -lo9 -loO 5. Total excess expenditure -li7 1o0 =.O 6. External contributicns 1.4 0.25 0o15 70 Of which: French (loO) (Oo25) (015) 8. Internal financing 0o4 0035 0.85 Money and Credit: Niger is a member of the West African Monetary Union (UMOA) within the Franc area. billion CFA francs (e-nd of-y-e-ar)T 1962 966 1967 Money supply 4,9 7.3 7 9 Credit to economy 4.6 9.8 900 Credit to government -009 -lol 1 0o9 Net external assets (within UMOA) 106 -0,5 -03 External Trade (Goods): billion CFA francs 1964 1965 1966 Estimated exports f.oobo 103 8,53 ll191 Estimated imports coiofo 102 10023 1156 Ool -l 70 +Oo35 (Note: estimates of exports and imports vary considerably) Commodity concentration of exports (1964-66): one product (shelled groundnuts): 41% two products (groundnuts and livestock): 75% Balance of Payments (rough estimates) billion CFA francs 1964 balance on goods and services 01 factor payments (identified) -o.6 private "transfers" -405 public transfers -4.8 BALANCE -0.2 change in reserves (decrease) +1.0 errors and omissions -008  -3- External Aid (1960-1966): Cormitments Disbursed billion CFA francs Total 30