EXECUTIVE SUMMARY __________________________________________________________________________ implementation of macroeconomic and sectoral development policies, as well as poor coordination. 3.23 Economic growth seems to be picking up again, but poverty remains at an alarming level. Economic governance should deal with the fundamental structural problems of Benin’s economy and spare the country the long-term risk of being rooted in satellisation and being a transit economy without a solid productive base. It should also, in a realistic manner, deal with the problem of the informal sector, which plays an important economic, social and even political role. Since the informal sector will continue to play this role for a long time in Benin’s economy and society, it is necessary to ‘use it well’ in solving the country’s problems. This sector should be made a recognised component of the economy by keeping only a watchful fiscal eye on it without trying to formalise it. Chapter Four of the report discusses these issues and proposes ways of addressing the challenges observed. 3.24 Ratification and implementation of standards and codes. Benin has adopted most of the standards, codes and principles relating to economic governance and management, with a few exceptions – which are noted in the report – particularly in the areas of corruption, money laundering and regional integration. In this regard, the APR Panel makes recommendations, particularly for the adoption of standards and codes that have not yet been adopted; the strengthening of transparency and the dissemination of economic, budgetary and financial information in general; modernisation of the statistics system; dissemination of prudent data on the financial sector; and capacity building for the organs concerned. 3.25 Promotion of macroeconomic policies that support sustainable development. The government’s efforts towards improving the macroeconomic framework are indisputable and, consequently, Benin has a good image among its development partners. However, the expected results have not increased production in a sustainable manner, nor significantly reduced the level of poverty. Production remains undiversified with cotton accounting for more than 50% of exports. For several reasons, progress in economic activity has remained below the projected performance indicators. 3.26 In its GPRS (2007-2009), the government defined a baseline scenario with a costed reflection of the various sectoral strategies to be implemented to accelerate growth and reduce poverty, while simultaneously maintaining macroeconomic stability. In the strategy, the acceleration of growth will be based on diversification of production, economic liberalisation, support to the private sector, reinforcement of economic and social infrastructures, and strengthening of good governance. 3.27 Public finance management has certainly made some progress, particularly in results-based management and the preparation of Medium-Term Expenditure Frameworks (MTEFs). However, there are still major constraints on the auditing of public expenditures. The government is implementing a vast programme on revenue collection, broadening the tax base, and taking 12