CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT
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implementation is also perceived by the public as part of the same network of
corruption and illicit enrichment. It should, however, be noted that, for some
people, the slow spending of budget allocations is due mainly to the
sluggishness of disbursement mechanisms, the levels of competence of
budgetary authorities, splitting up of expenditure procedures, and the practice
of making demands that fall outside the specifications.
424.
Compliance with most of the WAEMU macroeconomic convergence criteria
is an accomplishment to be commended in Benin. However, this has been
achieved in a climate of widespread corruption and increasing poverty.
Macroeconomic performance, while the population is being impoverished, is
an obvious sign that stabilising the macroeconomic framework is not the same
thing as stabilising development, which is what the current APRM exercise
hopes to do.
425.
The CRM noted that the macroeconomic convergence criteria of WAEMU, as
well as the requirements and conditions of the programmes of international
financial institutions (the IMF and the World Bank, in particular), also limit
the country’s room for manoeuvre. However, it seems that low salaries cause
‘petty’ corruption as people try to take advantage of state tools at their disposal
to supplement their incomes. Some even assert that this is morally acceptable.
One macroeconomic convergence criterion is that tax should not exceed 17%
of GDP. As Benin is at 14.4%, it is possible for the country to increase its
revenue through taxes – over and above the current efforts to broaden the tax
base – and to reach the level of the WAEMU convergence criterion. This will
enable the country to increase its revenue and possibly contemplate an
increase in the incomes of the citizens (particularly civil servants). The
Ministry of Finance seems to be sceptical about this, arguing that the burden
of arrears and the lack of career prospects, among others, are all factors that
help to mitigate the impact of the increase in state revenue that results from the
successes in meeting the macroeconomic convergence criteria. However, the
CRM believes that this argument does not carry much weight when considered
in the light of the losses incurred by the state through corruption, financial
misappropriation and illicit enrichment – all due largely to the low salaries of
civil servants. The state of Benin should find ways and means of combating all
forms of corruption in the ‘lower categories’ and especially in the ‘high
places’.
426.
Still at the level of macroeconomic policies, the implementation of the policy
of the transfer and privatisation of public enterprises is sinuous and opaque,
thereby indicating that policies are unpredictable and not transparent. This is
another area where corruption and illicit enrichment abound.
427.
Generally speaking – and with the exception of the preparation process for
GPRS II that was recently adopted – the participation of stakeholders in
preparing and implementing economic policy remains low in Benin. Very
often, the people do not identify with these policies, but they are nevertheless
often required to bear the consequences of policies that they did not help to
develop and which, therefore, seem to be imposed on them. This tends to
generate resentment or resignation. It is expected that the initiative, by the
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