Resource information
This report has the following
objectives: (i) identify the underlying constraints to
strong and sustained growth, in particular, the dynamic
circles that lock Niger in a low-growth/high poverty
equilibrium; (ii) understand the key determinants of growth
and poverty traps and the role increased foreign aid could
play to promote growth and help achieve the
MillenniumDevelopment Goals (MDGs); and (iii) help
the Government of Niger design a strategy to accelerating
growth and human development: Strategy Paper for Human
Development (SPAHD). This report is organized as follows:
Chapter 1 describes the main features of Niger's
economy from a Social Accounting Matrix perspective. It aims
to analyze the potential linkages between sectors and the
impact a policy shock of an increased public investment
could have on Niger's economy. Chapter 2 reviews
Niger's growth performance over the past three decades.
It draws some policy lessons critical to the design of a
growth strategy for Niger. Chapter 3 provides a snapshot of
where Niger stands in achieving the MDGs with less than a
decade remaining. It examines the reasons why Niger is
falling short of the goals, describes the recent progress,
and highlights the challenges ahead. Chapter 4 analyzes the
constraints to strong and sustained growth with particular
focus on poverty traps. Chapter 5 discusses the macro and
micro foundations for strong growth and achieving the MDGs.
It examines the post stabilization macroeconomic policy
required to enhance the macroeconomic foundations of growth.
It also identifies the engines of growth and highlights the
cross-cutting issues for improving the business environment.
In addition, the chapter discusses the role the private
sector can play in Niger's quest to achieve the MDGs.
Chapter 6 analyzes the potential impact that increased
foreign aid would have on growth, poverty, and other MDGs
using Niger's macroeconomic model. It focuses mainly on
the links between foreign aid, the level and composition of
public investment - which is disaggregated into education,
infrastructure, and health -- the supply-side effects of
public capital, growth, poverty, and other MDGs.
Furthermore, it discusses the impact of three policy
experiments on growth and the MDGs, including an increase in
foreign aid (namely grants), debt relief, and a combined
increase in foreign aid and tax reforms. Finally, it
highlights the importance of improving governance to
maximize the impact of domestic reforms and increased
foreign aid on growth and the MDGs. Chapter 7 concludes the
report and draws up policy recommendations, highlighting the
policy priorities needed to accelerate growth and achieve
the MDGs.
