CHAPTER TWO: HISTORICAL CONTEXT AND CURRENT CHALLENGES __________________________________________________________________________ Benin, and in this it succeeded very well after the National Sovereign Conference. 75. The third period (1990 to the present) – the period of democratic renewal – is characterised by a return to liberalism, to multiparty politics and to democratic governance. A broad-based sociopolitical order was established and is increasingly affirming itself. International aid is being provided to support the efforts to achieve economic stability. The economic governance of this period is marked not so much by a concern for structural transformation as by a concern to achieve economic stability with a view of creating the conditions for economic recovery. 76. The macroeconomic results are satisfactory, but the breathlessness of a mode of economic governance which is focused on the management of day-to-day affairs could not last in the context of the devaluation of the CFA franc in 1994. The SAP and PRSP I could not solve the economic difficulties facing the country. Its vulnerability to both internal and external shocks and the weakness of the style of economic management in force were expressed mainly in terms of a decline in growth and especially in the standard of living of the population. The issue of the socioeconomic development and structural transformation of the economy was reduced to one of a frantic search for financial equilibrium that served as a development policy. The challenge was to define another vision and other strategies, but especially to put in place a state machinery capable of implementing them in partnership with the other actors. And this was all the more urgent since Benin – facing reduced competitiveness, a decline in its transitional economy and an increase in its economic orbit insertion – was obliged to take up the challenge of building an emerging economy capable of benefiting from regional integration and globalisation. The challenge was, therefore, to avoid entrenching itself in the dynamics of orbit insertion and a transitional economy without a solid productive base. 77. In other words, the challenge of consolidating the democracy acquired after the National Sovereign Conference depends on the ability of the democratic government of Benin to improve the conditions and quality of life of its citizens, and to ensure for all Beninese nationals the right to a minimum standard of living which goes beyond basic freedoms and other political and civil rights. 78. The authorities are well aware of these challenges and seem determined to confront them by using the lessons learnt from the history of the country. 79. Indeed, between 1960 and 1972 there were many good intentions to achieve industrial development, but these were often not translated into reality because of the recurring political instability. A few state companies were created before this period. They included Société Nationale des Huileries du Dahomey (SNAHDA); Société Nationale pour le Développement Rural (SONADER); Industrie Dahoméenne des Textiles (IDATEX); Industrie Cotonnière du Dahomey, which later became Société Dahoméenne des Textiles (SODATEX); and Société des Ciments du Dahomey (SCD). 52