High Case (Base Case plus)
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
RISKS & RISK MITIGATION
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.
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.
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.
the B a n k ’ s
t o the
t h r o u g h the
SAC-3 i s
further the competitiveness
the e c o n o m i c
risk through promoting stable
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.
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