liberalization and structural reforms and investedin economic diversification and infrastructure, particularly inthe rural sector. These interventions contributed to the strong economic growth rates since 1998. At the same time, the Bank providedfinancial and technical support to the health and education programs inM a l i which facilitated the improvement in some social indicators. Moreover, duringthe previous CAS period, M a l i reached the Completion Points o f the Original and Enhanced HIPC Initiatives in September 2002 and March 2003, respectively. The debt relief provided under the Enhanced HIPC Initiative was sufficient to allow the debt sustainability ratio to drop to an acceptable level.
Objectives. The progress achieved to date and the continued reform program
outlined inthe PRSP provide an excellent starting point for the Bank’s CAS for FY04-06.
The CAS i s fully aligned with the PRSP and selectively focuses on three main themes which directly support the PRSP pillars: (ipromoting growth; (iideveloping human resources; and (iiipublic finance management and governance. The CAS combines a mix o f Bank instruments including: (iprogrammatic support (through SWAPs and PRSCs); (iicommunity driven development operations; (iiispecific lending operations that target the growth objective and support necessary infrastructure; and (iv) a wide-ranging AAA program which i s focused on building the knowledge base for the three main themes. In particular, the CAS concentrates on capacity building and strengtheningthe framework for programmatic support to Mali: firstly, to strengthenthe sector-wide approaches inthe social
sectors and, moving on from there, to finalize the necessary core diagnostic work and establish the appropriate framework for a full move to PRSCs.
Lending Scenarios. M a l i i s currently inthe base case. The base-case scenario
allocates up to US$390 million, o f which up to 29 percent could be inthe form o f IDA grants during IDA-13. This scenario i s predicated on continued good macroeconomic performance, satisfactory implementationo f the PRSP,progress on strengthening governance and strong portfolio performance. Lendingcould increase to US$462 million under the high-case scenario ifthere i s accelerated progress on these criteria. It i s possible for M a l i to reach the highcase given: (ii t s strong track record in implementingmacroeconomic and structural reforms; (iithat the PRSP provides a more comprehensive and cohesive framework than in the past, focusing on outcomes and the MDGs; and (iiithat progress on key sectors - such
as health and education - has been strong since 1998,providing a solid platform for continued good performance and achievement o f PRSP targets, particularly with stronger programmatic support from donors inthe years ahead.
Risks. The implementation o f the CAS faces several risks: (inatural risks from
adverse climatic conditions which influence agricultural output; (iivolatility o f commodity prices, exacerbated by agricultural subsidies inthe industrialized countries; (iiiuncertain external assistance; (iv) continued negative impacts o f the CBte d’Ivoire crisis; and (v) weak capacity. The Bank will take all necessary steps described inthe CAS to help mitigate these
Measuring Results. The CAS focuses on definingand measuring results in the
framework o f the overall monitoring and evaluation o f the PRSP. The CAS measurable indicators are the PRSP targets for 2006 which focus on makingprogress towards the MDGs. Inparallel with the annual PRSP Progress Reports and related JSAs, the Bank will assess the achievements o f the CAS.