EXECUTIVE SUMMARY _____________________________________________________________________ coordinate their interventions in countries so as to be in accordance with the principles of the Paris Declaration. 6.23 The country’s decision to decentralise offers a timely instrument. It should enable all components of the population to be better associated with the development of their localities through the construction of classrooms, health centres and water points, and through environmental protection projects. 7. OVERARCHING ISSUES 7.1 Decentralisation. Regarded as a major component of local development and deepening of the democratic process, decentralisation has been integrated into the major public policies of Burkina Faso. It is based on the 1991 constitution, which advocates the organisation of Burkina Faso into territorial communities. However, the current reform is based on the General Code on Territorial Communities (CGCT), adopted in 2004. The decentralisation process was generalised in 2006. It involves dividing the country into 13 administrative regions, 45 provinces and 351 communes, of which 302 are rural communes and 49 are urban. However, if it is to serve as a real developmental approach, decentralisation should allow for human and financial competences and resources to be transferred effectively. 7.2 The decentralisation process is, however, facing various challenges, above all: (i) To provide accessible and quality services to the people. This means that the local communities must be strengthened and the deconcentration exercise completed. (ii) To transform the territorial communities into frameworks to promote local economies. This means that financial resources must be mobilised properly. (iii) To transform the territorial communities into frameworks to promote sustainable development and equitable access to national resources. 7.3 The informal sector. The informal sector (IS) in Burkina Faso comprises all units that are not registered. It includes micro and small enterprises with a turnover of CFAF 15 million. As in other countries, it is characterised by a variety of activities and employs, in particular, a great number of women. The importance of the IS in Burkina Faso is quite obvious. It offers opportunities to reduce unemployment, to fight against poverty and to ensure the equitable redistribution of incomes. It also allows households to buy goods and services cheaply. It contributes about 30% to the creation of national wealth. It remains a source of job creation, with a rate of 11% in 2003. 7.4 The state initiated fiscal reforms in its favour in 1993 to facilitate its movement into the formal sector. However, these reforms have been counterproductive and have caused a relative decline in the production of the sector. Economic operators, in both the formal and informal sectors, believe that the passage from the informal sector to the formal sector is very expensive. This is compounded by a sluggish tax system, competition and accounting requirements. The informal sector is based on socio-cultural values 27