EXECUTIVE SUMMARY _____________________________________________________________________ 4.8 Despite the importance of the challenges it is facing, the country has succeeded in reducing the general level of poverty from 46% to less than 43% during the same period, which may seem slow to some people. This relatively slow economic growth, with some persistence of poverty – which Burkina Faso itself calls the ‘great social deficit’ – can be explained. In fact, 80% of the population of Burkina Faso functions in the primary sector (agriculture, stockbreeding, fishing, forestry and hunting). This sector produces less than a quarter of the national wealth (or GDP). The fact that about 80% of the population shares less than 25% of the national wealth – and this has been the case for more than 10 years – explains the persistence of poverty. What is more, the contribution of the primary sector to GDP growth has been 6% over the past 10 years. This is, on average, less than 2% (less than a third), which is far lower than the current population growth of 2.9%. This can only result in persistent poverty, despite the commendable efforts being made by the authorities of Burkina Faso. If we add to this the effects of the inequality in the distribution of wealth at the social and regional level, the policy on unfavourable prices paid to producers, the low productivity of activities in the primary sector, and so forth, we have the cocktail of elements that contribute to this situation. 4.9 It is also important to note the restoration of the viability of the external debt. However, the deterioration of the total budget balance remains an issue of concern. Finally with a current balance virtually always in deficit, the trend of the balance of payments is marked by the vulnerability of the country to internal and, especially, external shocks. 4.10 The main social indicators improved slightly. There is a very high illiteracy rate (74% in 2004), the gross rate of education was estimated at 67% in 2007, life expectancy is about 48 years, and more than 42% of the population lives below the poverty belt. On the other hand, the country made some progress in reducing infant and maternal mortality and in controlling HIV/AIDS. 4.11 The macroeconomic policies should aim at increasing the growth in GDP with a view to reducing poverty and the social and regional inequalities significantly by promoting the sectors with a great number of producers (agriculture and cattle breeding). The gross fixed capital formation (GFCF) has registered an average growth rate of about 9% during the decade following public investment. This achieved an average rate of more than 37% since 2004 based on fiscal revenues. This is higher than the WAEMU criterion of 20%. However, the public investment policy should respond to the need to promote the emergence of multi-polar centres of growth in order to reduce regional inequalities, strengthen regional integration, and create a framework that promotes private investment around these poles. To that end, one of the major challenges is to increase (i) the output of the tax system and (ii) the productivity and efficiency of public expenditure. 4.12 The vulnerability of the economy to both internal and external hazards is a major issue of concern. The government has made considerable efforts to reduce this vulnerability. It should pursue macroeconomic policies that 12