X hits on this document

218 views

0 shares

0 downloads

0 comments

47 / 86

Base Case

High Case (Base Case plus)

Monitoring Mechanisms

Transparency and accountability in public finance management: Preparation o f action plan to implement CFAA, CPAR, and Anti- corruption Report recommendations. Government and Parliament adopt this action plan and provide sufficient financingand support for its implementation.

Strong implementationof the action plan with the following achievements: (itiming for the Lois de Rsglement should be

CFAA follow-up CPAR follow-up Anti-Corruption Report follow-up

Portfolio management: 25% or less o f projectsat risk; disbursement rate 1 15%

20% or less of projectsat risk; disbursement rate 2 20%

CPPR Regular portfolio analysis

V.

RISKS & RISK MITIGATION

104.

M a l i enjoys relative stability, both inpolitical terms and interms o f macroeconomic

management, thus considerably reducing overall risk. However, there are both exogenous and internal risks to Mali’s development and the successful implementation o f the FY04-06

CAS, which the Bank’s program proposes to mitigate.

The PRSP appropriately signaled the

following four major exogenous risks that could compromise the achievement o f development and poverty reduction objectives, and thus also CAS objectives.

105.

Natural risks (drought and pest infestation, etc.), which influence agricultural output.

To mitigate these risks, the emphasis in the PRSP i s on further developing Mali’s largely untapped hydrological potential and on ensuringfood security i s primarily intendedto address this vulnerability. The Bank’s program supports this goal through the several agricultural and rural infrastructure operations either already under implementation or proposed.

106.

The volatility of commodity prices (mainly cotton and gold). Mali’s vulnerability to

volatile commodity prices stems from the lack o f diversity inits agricultural production and product transformation. The Bank’s program i s focused around developing sources o f

growth and diversifying the economy.

Moreover,

the B a n k ’ s

continued support

t o the

cotton

sector

t h r o u g h the

SAC-3 i s

strengthening

further the competitiveness

  • o

    f the

sector.

The

CAS also

mitigates

the e c o n o m i c

risk through promoting stable

macroeconomic policies

and

ensuring sufficient structural adjustment assistance to respond to the negative impacts. Finally, the availability o f IDA grant financing inIDA-13 will also contribute to ensuring that Mali’s debt levels remain sustainable.

107.

Uncertain external assistance, which i s especially important for the strategy’s

success, giventhe ambitious government revenue projections and growth rate.

This risk can

best be mitigated by M a l i demonstrating that it i s increasing its absorptive capacity and improving the efficiency o f public expenditure management. The thrust o f the CAS with

Document info
Document views218
Page views218
Page last viewedMon Dec 05 04:26:28 UTC 2016
Pages86
Paragraphs3095
Words30862

Comments