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USAID Information:
External Links:
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Benin
The Development Challenge: Benin is at a critical point in its efforts to build a pluralist democracy after abandoning a Marxist-Leninist military regime 14 years ago. On one level, prospectives are positive. Healthy GDP growth rates are expected to continue. The International Monetary Fund (IMF) figures show GDP growth at 5% or better for 2000-2003. The projection for 2004 is 6.5%. Benin continues to enjoy a reputation as a democratic model for the region. Municipal elections in December 2002 marked a critical step in decentralizing government and giving the Beninese people a greater voice in managing their democracy. The country serves as a model for freedom of the press as evidenced by the proliferation of radio stations and newspapers which offer scope for lively public debates on issues ranging from education reform to decentralization to corruption. Notable progress has been achieved in health and education over the last decade. Benin has experienced a reduction in infant mortality from 116 per 1,000 live births in 1996 to 89 in 2001. World Bank figures show that gross enrollment rates for primary school have been steadily rising over the past decade and in 2001 stood at over 98%, significantly higher than the average 78% for Sub-Saharan Africa.
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Yet Benin faces formidable challenges. The economy is vulnerable to external economic shocks, primarily due to its continued reliance on cotton as a source of income and foreign exchange. While Benin qualified for the last payout from the IMF Poverty Reduction and Growth Facility, there were notable weaknesses. Fiscal performance was off track. This was attributed to overruns in the election budget and weak customs administration. These two factors brought the fiscal deficit to 0.4% of GDP. Benin's reputation in governance must be balanced against other considerations. Toward the end of FY 2003, speculation in the local and international press was mounting that there may be a serious effort put forward to amend the constitution and remove the existing age limit which bars the current president from standing for re-election. However, this effort is expected to meet with stiff resistance from opposition parties and the independent press. Observers of the local political scene believe that an amendment is not likely to be accepted. Nevertheless, the fact that this amendment is being seriously discussed does confirm a growing awareness of political debate. Corruption is endemic throughout Benin's political system and continues to pose a serious threat to long-term development efforts, despite rhetoric and some steps by the government to combat the problem. The country was recently rocked by revelations that numerous high-ranking officials may be implicated as accomplices in an international car theft operation. The government faces formidable constraints to implementing key pillars in its poverty reduction strategy. Donors have specifically noted constraints in management and implementation capacity. They have also noted that priorities often focus on investments in infrastructure.
The World Bank estimates that Benin's population was about 6.8 million in 2002. Annual population growth is estimated at 2.5%. Per capita income stood at $380 in 2001. The economy is dependent primarily on agriculture which in 2002 accounted for 35.5% of GDP. The predominant cash crop is cotton which accounted for 76% of exports on average over the period 2000-2002. Services account for about 50% of GDP. This reflects Benin's role as a transit hub for goods destined for Nigeria, Niger, and Burkina Faso. Benin's debt service to GDP ratio is an estimated 2.3% for 2002.
U.S. government interest in Benin lies in continuing to support democracy, economic growth, stability, and security in the region. Benin is a supporter of the United States in the war on terrorism. Trade between Benin and the United States is small but interest in U.S. products is growing. U.S. interest in promoting trade with Benin is tied to increasing trade with Benin's neighbors, particularly Nigeria, Niger, and Burkina Faso. Large amounts of the imports for these countries pass through the port of Cotonou. The U.S. Government works to stimulate American investment in key sectors such as energy, telecommunications, and transportation. Benin is eligible to benefit from the African Growth and Opportunity Act (AGOA) and the U.S. Mission has been working to bring training and technical expertise that would enable Benin to take better advantage of this benefit.
The USAID Program: The Program Data Sheets that follow cover the three objectives for which USAID/Benin is requesting FY 2004 and FY 2005 funds. These programs include: 1) improving the quality of education with an emphasis on educating girls; 2) improving family health by preventing the spread of HIV/AIDS, encouraging the use of modern family planning methods, and promoting children's health; and 3) improving government management and participation of community groups in governance issues that touch on education, health, and livelihoods.
Other Program Elements: USAID activities financed by Agency bureaus in Washington and under the West Africa Regional Program (WARP) are also underway in Benin. In health, the Bureau for Global Health in partnership with a U.S. university has funded an experimental program in natural family planning in selected public and private health clinics. This year a new Child Survival and Health activity funded by the same Bureau has started up in Borgou-Alibori, a focus region for the Mission's health activities under its bilateral program. The HIV/AIDS bilateral program in Benin is complemented by the WARP health and HIV/AIDS regional activities, as well as the "Corridor Project," a program linking five countries on the transport corridor connecting Abidjan to Lagos. Benin benefits from P.L. 480 Title II food resources which go toward improving parents' involvement in managing schools, extending micro-loans to vulnerable groups, especially women, and improving the health of women and children. This year Benin was selected as one of four focus countries for an activity funded by the Office of Women in Development. The Women's Legal Rights initiative is aimed at improving the status of women.
Child Trafficking: A child trafficking activity is now being implemented to do the following: (1) provide institutional and operational support to the Ministry of Family, Social Protection and Solidarity; (2) assist local civil society organizations in the development and implementation of income generating and literacy programs in target rural areas; and (3) provide alternatives to Beninese young women and children who are vulnerable to traffickers working for cocoa plantations in Ghana and Cote d'Ivoire.
Trade Promotion: USAID's West Africa Regional Program (WARP) based in Ghana provided support with the launching of the West African Gas Pipeline which will run from Lagos, Nigeria to Abidjan, Cote d'Ivoire. The pipeline will also provide access to Benin, Togo, and Ghana. WARP also provided support with the conduction of AGOA trade seminars in Benin at the request of the Embassy.
Other Donors: The principal multilateral donors in Benin are: World Bank (macro-economic planning and policy, budget support, environment, education, rural development, private sector small/medium enterprise, urban management, and health); European Union (macro-economic planning and policy, budget support, decentralization, rural development, roads, health); African Development Bank (environment and natural resource management, roads, and education); West African Development Bank (agriculture, industry, roads, port rehabilitation, telecommunications, urban sanitation); and International Monetary Fund (macro-economic reform, structural adjustment).
The principal bilateral donors are: China (textiles, roads, agriculture, energy); Denmark (water, rural development, roads, elections); France (justice and rule of law, environment and natural resource management, education, agriculture, community development, roads, urban management, water); Germany, (decentralization, environment and NRM, water, agriculture, rural/community development, health); United States, (health, primary education, governance, decentralization, micro-credit, micro-enterprise); Switzerland, (micro-finance, rural development, decentralization, micro-enterprise, health); and the Netherlands (community development, environment, social development, poverty reduction).
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