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Benin
>> Regional Overview >> Benin Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 19
THE DEVELOPMENT CHALLENGE: After a decade of renewed democracy, including a third presidential election in March 2001 and market-based economic growth, Benin is making the transition towards political and economic freedom. Human rights are guaranteed and respected and socio-economic development is occurring, although pervasive corruption has a negative impact on public management. Notwithstanding the significant progress over the past decade, Benin is tackling ongoing problems of poverty. Literacy and school enrollment are low, especially for girls, although advances have been made. Private investment has been insufficient to encourage sustainable economic growth. Inadequate public transparency and accountability, ineffective public management and low utilization of budget resources thwart the provision and sustainability of public services, especially for education and health. Lack of civil society participation in national and local decision making limits the pressure on the Government of Benin (GOB) to improve accountability and inhibits communities from actively influencing national development efforts. The population growth rate is 3% and child mortality is 156 per 1000. While only 2.5% of the population in Benin was infected with HIV/AIDS at the end of 1999, the trend, if left unabated, could mirror that of other countries ravaged by HIV/AIDS.
Life expectancy is 53.6 years. The adult literacy rate was 39% in 1999 while female literacy was 23%. Benin is a poor country with a per capita income estimated at approximately $380. It ranks 147 out of 162 countries according to the 2001 United Nations Human Development Index, an indicator that ranks overall quality of life. One third of the population lives under the poverty threshold. However, Benin is managing its economy well in terms of macro-economic factors and has maintained an average economic growth rate of 5% per year. Much of the public investment budget is financed by donor contributions while debt servicing in 1998 was 35% of gross domestic product and 218% of exports. Debt servicing is expected to decrease due to Benin's participation in the Heavily Indebted Poor Countries Initiative (HIPC), under which the Government of Benin (GOB) is to receive an equivalent of $460 million in official debt relief. Under HIPC, Benin received $5.6 million of debt relief in FY 2000 and $18.7 million in FY 2001. A large portion of the debt relief is to be used for increased spending in the social sectors. Efforts in Benin will continue to combat poverty by improving health and education services and the provision of other public services. The structural reforms will continue along with strong efforts to improve private sector development, increase private investment, and improve sectoral policies, especially in agriculture. These measures will help set the stage for high and sustainable growth.
Benin continues to be of interest to the United States for the promotion of democracy, stability and security in the region, and the promotion of U.S. exports and investment. Benin is an ally of the United States in the fight against terrorism.
THE USAID PROGRAM:
FY 2002 Estimate: $ 18.598 million FY 2003 Request: $16.284 million The Program Data Sheets provided cover the three objectives for which USAID is requesting funds and will be used to finance ongoing programs in: 1) primary education reform and education of girls; 2) family health for family planning services, HIV/AIDS prevention and improvement of health sector policies; and 3) governance and accountability to support GOB and civil society anti-corruption efforts, the promotion of new communication technologies, micro-finance, technology transfer, and agriculture to increase rural incomes.
OTHER PROGRAM ELEMENTS: The Program for Innovation in Microenterprise (PRIME fund), financed by the USAID/Washington Office of Microenterprise Development, is complementing USAID/Benin bilateral resources to increase access to micro-financing for the development of microenterprise and other local private initiatives. USAID/Benin participates in West African Regional Program (WARP) activities that promote trade (including cross border women's activities), harmonize commercial law, stimulate regional economic development, and improve energy availability through a regional gas pipeline. WARP will help Benin to understand and profit from the Africa Growth and Opportunity Act and World Trade Organization activities. Funding from the Leland Initiative will supplement USAID/Benin bilateral resources to promote new communication technologies and increase Internet connectivity. Benin benefits as well from an Africa-wide Africa Bankers Training Program. Through USAID/Washington support to a U.S. university, a new method of natural family planning is being introduced in selected public and private health clinics. The HIV/AIDS bilateral program in Benin is complemented by the WARP health and HIV/AIDS regional activities, as well as the "Corridor Project," a program linking five countries and connecting Abidjan to Lagos. Through the Africa Bureau-funded Basic Support for Institutionalizing Child Survival (BASICS) activity, technical assistance is provided to the Ministry of Health to adapt BASICS-produced pilot nutrition materials for national use. Benin benefits from P.L. 480 Title II food resources which serve to increase girls' primary school enrollment, improve nutrition, increase community access to micro credit, and improve food security in food deficit areas of Benin.
OTHER DONORS: In 2000, the United States was ranked first among bilateral donors in terms of annual development expenditures, while Denmark was the largest in terms of annual financial obligations. Donor coordination is successful. Denmark focuses on agriculture, road construction, judicial reform and private sector development. Other bilateral donors and their principal areas of focus are: France (secondary and higher education, agriculture), Germany (hydraulic and rural water, forestry, bridge construction, government decentralization, and national park management), Canada (administrative reform and micro-enterprise development), Switzerland (health, adult literacy, rural development, artisan development, institutional/structural reform), Netherlands (community development, women in development, infrastructure), Japan (judicial reform, food support, agriculture promotion), and Belgium (health, rural development, education, sanitation and water).
The principal multilateral donors and development financiers include the United Nations agencies, World Bank, International Monetary Fund (IMF), European Union, African Development Bank, and the West African Development Bank. The European Union provides budget support in health and project financing in transport, judicial reform and government decentralization. The United Nations Development Program is focused on the environment, women and development, HIV/AIDS prevention, and communications. The World Bank supports the promotion of girls' education, construction of primary schools, judicial reform, private sector development, HIV/AIDS prevention, and budget reform, while the IMF supports structural reform and privatization of parastatals. The African Development Bank supports human resource development, construction of secondary schools and technical skills training centers and the West African Development Bank supports private sector and infrastructure investment.
Program Data Sheets
- 680-001 More Children Receive a Quality Basic Education on an Equitable Basis
- 680-002 Increased Use of Family Health Services and Prevention Measures within a Supportive Policy Environment
- 680-003 Improved Governance and Reinforced Democracy
Country Background Information Resources
CIA Factbook
National Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
