Acronyms I – INTRODUCTION
II – ANALYSIS OF THE MACROECONOMIC SITUATION
Economic Performance in 2006
Economic Outlook for 2007
III – ANALYSIS OF NPRS ACTION PLAN IMPLEMENTATION 3.1 Status of NPRS implementation 3.1.1. Pillar 1: “Reform of public institutions, capacity-building, and promotion of ” 9 9 a good governance policy. 3.1.2 Pillar 2: “Accelerated Redistributive Growth” 10 13
The central objective of this pillar is the creation of a favorable climate for private sector development, with emphasis on the following aspects: (1) government divestment of the productive sector; (2) transformation of the government into the regulator of the economy; (3) government intervention in infrastructure to create opportunities for private sector development. In this context, the arbitration court was created in 2006 by promulgation of the arbitration law and installation of an arbitration center. This made it possible to update the legal framework for trade, which will in turn improve the business climate and promote competition and the private sector. To foster export production by the poor, develop international trade by reducing commercial costs, and strengthen infrastructure and public services that underpin that activity, the government continued to implement the Diagnostic Study on Trade Integration and to conduct complementary activities that would permit integration at the 13 13
lowest possible cost for the country.
There are plans to implement the new Investment Code after its approval by the Assembly. This will facilitate, among other things, equal treatment for nationals and foreigners with regard to tax and customs incentives, which will in turn stimulate investment in the country: investors will have less to pay back and investment will become more economically and financially feasible. To create a business fabric, a sectoral strategy was adopted for development of the proper infrastructure for establishing industry, for development of the transport sector, and for improved and expanded power distribution. The same strategy used business modalities that guarantee strong participation by the private sector in the electricity sector. The success of those modalities will then help promote public private partnerships (PPP). The result of this action involves decentralization of production costs by the government and improved productivity in the 13 13
supply of public goods by private entities.