ECONOMIC GOVERNANCE AND MANAGEMENT Mobilisation of domestic resources 62. Domestic resource mobilisation efforts may not yield solid results as easily as would be expected. This is because low incomes tend to reduce savings and taxable income, both absolutely and in relation to gross income. In addition, in the typical African country, many persons from all income levels prefer to hold their savings in instruments outside of the financial system, or purely in cash, rather than in instruments such as government treasury bills or saving bonds. In spite of such obstacles, savings, tax revenue and holdings of bank deposits and government securities could all be increased in relation to income. This can be done by: ? ? ? Instituting measures that strengthen the banking system and reform the financial sector in general; Improving tax administration, and Carrying out various sensitisation efforts to encourage the general population to pay taxes. Strengthening of analytical capability 63. The analytical capability, in and outside of the government, for national economic policy-making could be strengthened in a number of ways. The need for improving the Statistical Services is widely recognised, also by the authorities. In particular, it has been pointed out to the CRM that labour statistics such as employment and unemployment figures and productivity are lacking, and detailed information on expenditure trends in the national accounts need to be improved on. A concerted effort in this regard is, therefore, recommended. Other actions include measures for attracting qualified persons and improving the facilities available to them to perform their tasks at a high level. Budgetary challenges will obviously not be easy to overcome, but given the future benefits, the mission would urge the authorities to do their utmost to galvanise public support for any short-term sacrifice that this may entail. Promoting domestic regional equitability 64. From a macroeconomic perspective, policies that foster domestic regional equity are good for economic growth. On the one hand, they promote socio-political stability; on the other hand, they enhance economic efficiency in resource allocation and in the marginal efficiency of investment in both human and physical capital. The efficiency 65