Mali-EU cooperation

Roads and adjustment

by Theo Hoorntje

For 1990-95, ECU 151.7m was allocated (mainly in project aid) under the seventh EDF National Indicative Programme (NIP). This is equivalent to about 1.5% of Mali's GDP and 13% of its public-sector investment programme for the period in question. European funds from sources other than the NIP-emergency aid, Stabex, European Investment Bank (EIB) venture capital and resources from the structural adjustment facility- reached ECU 87.2m over the same five-year period.

In 1995, support for the structural adjustment programme represented 5.4% of the balance of payments deficit and 7.8% of the budget deficit. Looking at all instruments together, the amount involved in financing decisions taken by the Commission last year was ECU 42m, with the disbursement figure rising to ECU 40m.

The NlP's primary commitment level under the 7th EDF rose from 76% at the beginning of the financial year to 92% at the end, which means that virtually all available programmable resources are now allocated to projects and programmes. The secondary commitment level, which involves the conversion of proposals into concrete agreements and contracts, rose from 33% to 45% by the end of the financial year. Disbursement rates remain relatively low (32% of available resources).

Allocations

Aid is distributed to the various sectors, as follows:

- Roads (29% of the total);

- Support for structural adjustment (20%);

- Rural development / Environment (1 4%);

- Support for the private sector (12%);

- Decentralisation (9%);

-Public health (9%);

-Water supplies (4%);

-Education/Culture (3%).

It is clear that Community aid concentrates mainly on road infrastructures-covering both maintenance and the opening-up of remote regions. Support for structural adjustment, which comes second, is used to finance the State budget's current expenses, particular emphasis being placed on improvement of fiscal and customs income and greater efficiency in health-policy matters.

In other areas, such as rural development, Community aid also makes an attempt to consolidate gains from previous actions, particularly through the development of rice growing and stock rearing, which should improve supplies to the domestic market and offer further export potential. As far as the environment is concerned, the aim is to contribute to the sustainable management of natural resources on the part of basic users, such as farmers, breeders, etc.

The private sector is supported by actions in key areas and by a programme that was recently set up which involves directing resources through a financial institution (Credit Initiative SA). The objective is to promote lending to SMEs, which is in keeping with the general aim of achieving economic growth.

In the context of administrative reform, priority is given to the decentralisation process which aims to promote the emergence of new local decision making centres (which should, in the long term, become key players in project development and implementation), and to give such decentralised bodies the means they require to fulfil these new public-sector missions.

As for health, Community aid has contributed to the PSPHR project financed by other donors. Its main focus is initially on infrastructures and on the policy relating to the supply of essential medicines.

In the water-supply sector, actions are aimed at strengthening village infrastructures, particularly in the Bankass and Koro areas. A solar-pump programme has also been set up in the Mopti and Koulikoro regions.

In addition to a school reconstruction programme in the north of the country, the Commission has been able to support education and culture through a dozen or so film projects.

Under the general 'heading' of non-programmable resources, there have been a number of interventions. These include extra support for structural adjustment, Stabex transfers, deployment of the balance from the 5th EDF and EIB projects. Emergency aid has been deployed in the north of the country where, despite difficult conditions, programmes have been able to continue without interruption.

Finally, Community regional aid is helping to combat rinderpest, as well as being directed towards road maintenance, and the provision of training and information on environmental protection.

T.H.