Country Gets US$40M for the Fourth Poverty Reduction Support Operation

from All Africa

The World Bank’s Board of Executive Directors today approved an International Development Association (IDA) credit of US$40 million to support Benin’s poverty reduction strategy.

The fourth Poverty Reduction Support Credit (PRSC4) is the first in a series of programs that will support the Republic of Benin’s new Strategy for Growth and Poverty Reduction (SCRP) adopted by Government in February 2007. Since 2003, the Bank has provided direct budget support to the Republic of Benin through a series of three Poverty Reduction Support Credits (PRSC1-3) that helped the country to maintain macroeconomic stability.

Like its predecessors, PRSC4 will complement the resources of the Republic of Benin and other Development Partners to fund priority programs covering three key areas of the Strategy for Growth and Poverty Reduction:

* Improving the policy environment for private investments
* Improving access to basic services and ensuring greater efficiency of public expenditures on human capital formation
* Promoting better governance through financial management, civil service and justice reforms.

According to William Experton, the World Bank Task Team Leader of the PRSC4: “The one shift of emphasis most strongly articulated by the Beninese Government in its Strategy for Growth and Poverty Reduction, is the development of a favorable business environment. This central element requires an increase in competitiveness of the economy, which means improvement in the business climate and private sector development. We believe that through this operation Benin will get back on a steady path to economic growth, as government continues its efforts to promote good governance and reduce corruption.”

The first PRSC for Benin, totaling to US$20 million contributed to the country's macroeconomic stability through the strengthening of public expenditure management and private sector development. It also provided crucial expenditure for basic human development programs in education, health, water and sanitation.

The second PRSC (US$30 millions) mainly supported agriculture, rural transport, and the justice sector.

The third PRSC (US$30 million) focused on economic growth, good governance, improved public expenditure management, and financial decentralization.

With the newly approved PRSC4, the Government of Benin has received a cumulative total of US$120 million (around FCFA 60 millions) in direct budget support from the Bank since 2003.

For more information on the World Bank’s work in sub-Saharan Africa visit: http://www.worldbank.org/afr

For more information on the World Bank’s work in Benin visit: http://www.worldbank.org/benin

For more information about this project visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSi