RESTRICTED

- tIa e ffiAIA14 0

l Vol. 1I.

!~~~~~~~~~~~~I Th;rprBa rprdfruewti h ank and its aff:.'ioted organiza.iona.|They do not accept responsibility for its accuracy or completeness. The report may

liv not Fm be sulsed nor may it lbe quotedU as represenfing offal, views.

INTERNATIONA:L BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTE:RNATIONAL DEVELOPMENT ASSOCIATION

THE ECONOMIC DEVELOPMENT

OF

T TD TYMLD IT r% T '1r A

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(in four volumes)

VOLUME I

A X A TNkT T) LT-11-%n InIV1I.t1.±N VXxrx %JI\ 1

ov etmbu er 2 7 ,1 7 1970

Western Africa Department

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CUFR'1COY EQU:IVALHTITS

Currency Unit: CFA Frawc (CFAF)

Before August 11, 1969:TUS$ I.00 = GFAF aL4'.'

cFaF 1,000 = US$ h5of

After August 11, 1969:VO,p -L .w - £ c .1

CFAF l,C00 =US$ 3.60

WFIGHTS AND t'IASUREES

i Metric Ton (t) = 2,205 lbs.1 Kilogran (kg) = 2.2 lbs.1 Kiloiieter (km) = 0.62 mile1 Meter (pi) = 3.28 feet

COWPOSITIOII OF MISSION

This report is based on the findings of a iMissionwhich visited Upper Volta in November-December 1969 and which consistedof:

John C. de Wilde Chief of MissionFr6dy. R. G. Holin EconomistH. Casati Consultant-Agricultural Economis-: (FAG)A. Guinard Consultant-hgronomist (FAO)G. Lazarev Consultant-Rural Sociologist (Fr O)A.H. Rob:inet Consultant-Livestock Exnert (FhC)S. Picker Consultant-Education AdviserN. .Raphaeli Adviser on Planning

The report consis-ts of the following volumes:

I Main ReportIT Agri cu t.umrp

III LivestockTV Euctio rn

TABLE OF CONTENTS

MAP S Page

Economic Resources and Rainfall

Roaid Network

Regional Development Offices

Density of Land Occupation and Area ofMossi Settlement

BASIC DATA

STMMARY AND CONCLUSIONS(.i - iii

I. BACKGROUND ........................................... 1

Resources and Climate ............................... 1

Minerals . ....................................... 1

The Population and its Characteristics .... .......... 2

Migration ...................................... 3

Level ofE Education and Skills .... .............. 4

Health Conditions .............................. 5

Structure of the Economy ............................ 5

Political Evolution ................................. 6

II. THE PERFORMANCE OF THE ECONOMY ...................... 7

Agricultural and Livestock Output .... ............... 8

Industrial Production ............................... 9

Foreign Trade and Balance of Payments .... ........... 9

Public Finances ..................................... 11

III. DEVELOPMENT EXPENDITURES AND FOREIGN AID .... ........ 14

The 1967-70 Plan . ... ....... 14

Lagsoq in Devlelonment Exnpndirtirpq-15

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Financing of the Plan .............. ................. 16

Foreign Assistance ........... .. ................ 17

IV. FUTURE ORIENTATION OF DEVELOPMENT AND FOREIGN AID ... 20

Infrastructure Investment Requirements ...... ........ 20

Exploitation of Mineral Resources (Manganese) ....... 21

Rural Development ................ ................... 26

The Population Problem ........... .............. 26

Promotion of Internal Migration and Settlement . 28

Regional Development ............. .............. 29

Diversification of ORD Programs ....... ......... 31

Broadening the Scope of ORD Operation .......... 34

Development of the Livestock Sector ............ 35

Rural Education and Training ........ ........... 37

Foreign Aid and its Terms .......... .. ............... 38

STATISTICAL APPENDIX

Liqt of Tables

500- --~~~~~~~~~~~~~10

°t , 5i0 , 0ogl) , 50 =o 50o \ k s ronqao 1* 0 -- -_ - --

KI LCMETERS A CAT TLE E

( ~~~~S HEEP

Dpbo o'

600°> 100 -- j _ .4 N I E3 R

tO 0 Kong ,~ > T T O N U

0o0 ) SORGHUM U

. Nounaoa To ) -. A

Oddugo 0 OUAG AMDUGOU,ooo- 9 ' ' 2.9, X M X : U.D6dou,( "I,

(P Solenzo 0 5KUOGU . ~ - - JI,000- - 4 uG ofae - -< 100

Koundoug a OYuomoko So y aHUM a NgourmA

Koundou, soB'U 4'f A T TLE*O (nd 0. SHEEp

00 0 /V~~~~~~~50 ~GUfOBO-D4 ULASSS 0 RG H)UL

0.10, - L6o~~~~~~~~~~~~~~%-

-TI ~ ~~~~~~~~~Diebou ou

i00 \ C FREPUBLIC OF UP'PER VOLTAm 8sfort \ \ ~~~~ C O RNi -j \4 A N A ECONOMIC RESOURCES

-Z-_* , /? °\oaN\N s N U T S AND RAINFALL/> { - -g =-I tInter-state roads

* ~~~~~~-i~~2oo Ra:Liway

- q ---- | _Average annual rainfall.-~~~~~~ ~ ~ ~ ~ ~ ~ \j..~~~~~~~~~~~~~~ ~nmi lma~ters

(I \ 7 R Y \ I 9!7jR

1111IV 1 Q7n I RRn 97IR7

| RIEPUBLIC OFUPRTO.A /.mb.o 1O *_7 _- - ~ ~ ~ '-

| ~~~R OAD N E T'WORK_.- rogns -1 1I RAILWAYS \ *

_ NATIONIAL ROADSj

-DISTRI(:T ROADS -Arbindo Rn/J <$ ,- # oW~~~~~~~~~~~%DJIBO n s w e : 1

4 I ~~~~~OUAHI GO BAtSLOH

Jo, _ ._ 1 cB iOLO H

tOe / Dl1brsso I/

Do Dirnb-o\ jt - n -F ->1 > /s. K

Feloen Nou a %Torno; s >>KNCAI,

. ~ ~ ~ ~~ ~ ~ ~~~~~ G A<GAlA §t > ° ) ( ( 3 & [0 @ b

0i m @oor 1 Sl 0 A-- $ b7°u' S.P 7 50ISS < IERI NGORMEPTEM3ER 1970 IBRD 312~~~~~~~ati

I ~~REPUIBLIC OF UPP"ER VOLTrA .~

IRE(,IONAL DEVEILOPMENT OFI:ICES (tORD) !'.

0 20 40 60 80 100 , *"0OKI

!I 1! ';- '9#- (SAHEL) -. _ ORD 8OlD-I-A.KILOMETER'S * -A1M1 RTVA

i K v N 8 ~~~~~~~~~~~~~~~~~OoUAHIGoIJYA , ._t 'l - _ IT~~~~~~(ATENG.A) j -1.

4 o~~~~~~~~~TOUGAN r _ D~ KstAYA~ .r

.r oO~~~~~~EDOUOU60 ^ ~~~~~~~(V. NOIRE) r2 > e OUAGADOsUGOU

v \ WoU~~~~~~~~~ ~ ~ ~ ~~~~OOU60U , 19 _ (< 5 iF~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~OUP[f!A - FABA-N'GOURNtA,

_- f I < / v v 9 r' | 14'

5 ~~~~~~~~~~~~~HOUIIE_N 8j u\.fi

r- BOB/)-DOIULSSO r)i~~~~~~~~~~~~~~~~~~D f lBOU60tlI ., ._ . -. _,.. JO,_ \A>

j ~~~~~~BANFORA I. \ ~~~~~~~~~~~~~~~~~~~~ ~ ~ ~ ~~~~~~~~~~~PEG10NA~L DVELOPMENT _ DEVELOPN,ENT SOUNRCECOF

.se ) . DFFI~6 rCES NiEAGENC f FlNANCE

. [ 9 ~~~~~~~~~~~~~~ ~ ~ ~~~~~ ~ ~ ~~~~~~~~~~~~2 ':. "!'SATE(: FAC, J * w ~~~~~~~ ~ ~~~~~~~~~~~ ~ ~~~~ ~ ~~~~EXISTING 3 Yat;!ira BOPA FACO

;^ > 9 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~5 Ka v , CFDT FAC> ^ s ~~~~~~~~~~ ~~~~~~~~ ~~~~~~~~~~~~~~~~6 Banfori SOTE!iA FED

- Si_ ~~~~~~~~~~-~~~--_- ) 7 ~~~~~~~~~~~Fadgl N'"G.urm _ | Na "U Bdge> ._. S1. . $ TO BE 8~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Diebougo CIDR NtoilBud3et / \ / | ES1'ABEISHED 10 Sahlsl CF~~~~~~~~~~~~E T 0sso DT/C DR,tIH FAC

I V O R Y ic O.Ai S -r >,L~~~~~~

SE PT E M BER 1 97 0

kre,-J UU I U0 squarle IIU_Les j 2 74,20UV saU e kllo.mets11 U.I J

Po,mulation (1(970): 5.1 million (of wnich about half Onl 3,50UU squarekilometers in Mossi area).

Growth rate ca. 2 p.a., mortality 30.5%-

Density: average 49 per scuare mile, 19 per square kinin Mossi area: 108 per square mile, 42 per sq.km.

Political status: Independent since August 5, 1960.

Member of the -"Banque Centrale des Etats de l'Afrirquede l'Ouest", "Union Mon6taire Ouest Africaine".

Associated member of the European Community.

Gross Domestic Product at current price (estimated 1966):

Total: CFAF billion 58.2 US$ million* 235

Per head CFAF 12,400 US$ 50

Origin of GDP:

Primary sec-tor 49.1l

Manufacturing and handicraft 5.51

Commerce 20.1%

Government 8.2%

Other 17.0%Annual Increase

Foreign Trade: 1966 1967 1968 196871(in CFAF billion)

Export (recorded) 3.99 4.43 5.29 15%Import (recorded) 9.29 8.97 10.12 4.4XDef-icit good and services -5.30 -4.54 -4.83

* Based on exchange rate prevailing nrior to August 10. 1969. of CFAF 2L7 perUS$1.0. At the currently prevailing exchange rate of CFAF 278 per US,$1.0,the 1966 GDP wou1ld have amounted to the equlival ent of US$210 million and theper cap:ita GDP to US$45.

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B.O.P. in percent of GDP at market price: 1966

Exports (and re-export) recorded 6.9%Imports recorded 16.o0vDeficit good and services -9.1;Unrenuited transfers +1,_hNet monetary movement (increase -)1.47v

AnnualMoney, Credit and Price: Increase(in hillion C(FA) Dec.1966 Dec 196 D eQA .n 19 6 loi4 o37 1 q9I/AA

Money 6.53 7.!5 R. 9.1.0I,Quasi money 0.63 0.92 1.05Domestic credit to private

sector 3.63 4.06 5.69 16.2,oRate of change in price 109.8 114.1 ... 1.9(1964 100; european family)

Public Sector Operation:(in_ b,ilio nFAF) 196A 1967 I OAS 1969 1970

Gove.LIM.ent current receipts- 7. 7.5 8'.26 ;. .6

Government current expenditures 7.93 7.01 7.29 t.22 t.t5Surplus /Deflc,i-; + 0. 55l C) 0.7 C'71 " .79

Government capitalexpenditure * 0.76 1.03 1.16 1.26 1.35

Foreign aid expenditure 5.03 4.90 5.51 ... ...

External Public Debt: (US$ million)

Total debt (including undisbursed at December 31, 1968) 20.1|~ ~ ~ ~ ~ ~~_ (S Iv _L UGL b G- U \1 u7 :,,GUG . -)I0U d1 Ut,U U pectedLi 77' AJ~9~U .

Debt service ratio (in 1968) 3.9% of recordedmerchandise export

Commodity concentration of Exports: 196_ 1968

Livestock; cotton 5=6; 7, 48,; I7j0

Foreign Assets:(net) 1965 1969 Annual increase

US$ million (Dec.) 10.5 21.3 i9.3,v

DLiF Position:(US$ million) Feb. 28, 1970

Wuota 10Drawings None

* Including capital expenditure from foreign resources, amounting to CFAF 0.45billion annually in the years 1967-70 inclusive.

SUMMARY AND CONCLUSIONS

i Upper Volta suffers fromn a number of serious devlonnmpnt con-straints -- a geographic position far from overseas markets and sourcesof supply, a general poverty of natural re-ources over-population overmuch of its area, inadequate development of skills, and a rather highincidence of debilitating diseases. Wdhile land and water are the principalresources, they are in many respects seriously deficient. Some mineralresources are availablle, but t he economic expl0tation of the most promis-ing of these -- manganese -- is for the time being impeded by the high costof| tanso and t1le low crret price of t4S mierl> ;Ao- th eh w-rid market.r

* L.L * C L&- LLL1.~ SV_~ L L w--L L^ WG O hAL 65&l aa L a Uz .- - _a. - ._ a .* _ .L' DesOpite. these~ ~.onstrL.Caints some= progress &has been ----- pa-i-ularly since the advent to power, early in 1966, of the present militarygovernmuent. rPubilic fir,ances, which ,,ad bUeen al'lowedu to deteri-orat-eseriously, have been put back on a sound basis and considerable budget_S_.ay .LJa it_ _ U_ v1 Lk ~a.LL .LIUL _~ L± _L LL1~ . . v savinsa^ hsa-v ': e ure: sallze:ud although part-ly at , Ll expen;se of essentiFal

operating and maintenance expenditures. Exports have generally expandedmore rapid]-y thLILL imports, dILU thLie r esuLLL reductLon ofL the trade de

cit, together with receipts of considerable foreign aid, have made possjiblea suIbsLtLial iLicrease n foreign exchanLge assets. Expenrditures ondevelopment, although lagging markedly behind targets, have been accel-erating recently. Regional Development OffLices (ORDs) largely directedby foreign firms, have been estab'Lished to provide extension services,marketing facilities and credit LO improve agricultural output, anu a

notable increase in cotton production has taken place. In industry,which is not of great importance to the economy, a number of new ventureshave been launched.. Some improvements in the main arteries of communi-cation have been eifected. A special program for the establishment ofrural. education centers, still seriously deficient in many respects, hasbeen carried out.

iii. However, Upper Volta, with a per capita GDP of only around $5(,remains exl:remely poor and is beset by many problems which are extremelydiffl.cuit Lo resolve. Progress is bound to be very siow. In the fuLureorientationi and scope of development every effort will have to be made coremedy some of the critical deficiencies revealed by past experience. Aconsiderable number of pre-investment studies and surveys should be comr-pleted and newly undertaken for the purpose of providing basic informat:ion -

e.g. on population, migration and rural production -- essential to sounderplanning, and of formulating concrete development projects. The organiza-tion or staffing for execution of projects must be greatly improved. Infurther planning more attention sliould be centered on the population prob-lem. Labor migration to the Ivory Coast and Ghana is unlikely to providein the future the same relief for excess population and deficient incomesas in the past. It has accordingly become more urgent to intensify effortsto raise production at home and to promote internal migration with a viewto bringing about a better distribution of population in relation to land

resources. in this connection it will be particularly important Lo developplans for the settlement of river valleys, notably that of the White VoltaRiver, which are now largely unoccupied owing to the prevalence of oncnio-cerciasis but which would be opened up if projected programs for the eradi-cation of the vector of this disease are realized.

iv. The rural areas which support the vast majority ot the peoplewill have to remain the primary focus of development efforts. fthe scopeand orientation of the Regional Development Oftices will have to begradually changed. Continued emphasis on the production of such cashcrops as cotton will undoubtedly be necessary; and thie cotton projectproposed for IDA financing will make an important contribution to thisend. However, more attention should be paid to other crops, includingfood grains and fodder crops, and a beginning must be made with the inte-gration ot livestock into farming tor the dual purpose of providing moreand better draft animals and fattening animals for slaughter. Tile ORDsshould become increasingly the vehicles for the realization of more com-prehensive, integrated rural development programs extending to all aspectsof rural life. Means should be found to finance within the ORDs numeroussmall projects in which the rural population itself can be intimatelyinvolved and which are now neglected owing to their number and small sizedespite their substantial potential contribution to development.

v. Far more attention should be devoted to the livestock sectorwhich has been greatly neglected in the past and shows many signs ofserious deterioration. A special livestock ORD for the grazing and breed-ing areas of the North should be established. A comprehensive campaignto combat the widely prevalent livestock diseases and parasites, coupledwith efforts to improve livestock management, should be seriously consid-ered. The development of livestock routes to reduce marketing losses andensure the arrival in good condition of livestock at points of slaughterand export should be accelerated. Bush slaughter and the preparation ofhides and skins need to be improved. The possibilities of intensivefattening of cattle on feed-lots must be carefully studied. Fortunatelymany of the studies essential for a more effective livestock programhave been completed or are under way and projected.

vi. Education and training must also be improved. Upper Volta un-doubtedly cannot afford a rapid expansion of its system of formal educa-tion despite the existing low level of school enrollment. The majoremphasis will have to be on practical training. Upper Volta has beencarrying out an interesting program to provide such training, combinedwith some academic education, at rural education centers designed for boysand girls in the 14-17 year age groups. While the results have been verydisappointing in practice, the conception is sound in principle. In-stead of abandoning this program, measures should be taken to improve thequality of the teaching, the curriculum and the equipment of these centersso that young people leaving them are really better equipped to take uprural occupations.

vii. I.nA view of the pos sibil of a4esf .eleratina development Upper

Volta may well be able to absorb an increasing amount of foreign aid

wI-wlc'ch 'Ln recent years i'iavs avau around $20 million a year. T should

provide some scope for Bank Group financing complementing that of FAC and

FED wIhich nave DeeniC the pr.nc'pal sources of external assistsrce. Coord.i-

nation of the activities of all the agencies concerned -- principally, the

Volta.ic Government, FAC, FED, UNDP and the Bank Group -- will be rneeded toensure that the needed pre-investment studies and projects are properly

financed and carried out. In view of Upper Volta's owlL lim,,ited resources,it will be necessary to provide more effective technical assistance andalso to finance part of the local costs and current expenditures which are

esserntial to development and which are beyond the capacity of the Voltaiic

Government to meet. Although the country's external debt is not yet hiLgh,

the poverty of Upper Volta makes it extremely desirable to provide virtually

all of the external aid on a grant basis or on other concessional terms so

that as much as possible of the increment in output can be reserved to

increase the domestic resources available for future development and to

provide for a graduial rise in the deplorably low standard of living ofthe population.

I. BACKGROUND

1. Upper Volta is a land-locked country of 274,200 km2 situatedNorth of the Ivory Coast and Ghana and with a population of about 5.1million. Apart from the handicap of its distance from overseas suppliersand marketst (the capital, Ouagadougou, is 1,181 kilometers from the near-est seaport, Abidjan), Upper Volta suffers from two serious constraints ondevelopment -- a pcverty of national resources coupled with an unfavorableclimate; and a population which over a considerable part of the country istoo large in relation to available resources, whose skills are as yetpoorly developed and whose vitality is sapped by a number of endemicdiseases.

Resources and ClimaLte

2. Although land and water are the country's principal resources,,they are deficient in quality. On the densely populated central Mossiplateau in particular soils are poor and shallow, devoid of humus andfrequently characterized by a hard pan. In the West and Southwest soilsare better, but relatively rich, alluvial soils are found only in theriver valleys and in scattered depressions (bas-fonds). The annual rain-fall ranges from 1000-1400 mm (39 to 55 inches) in the extreme Southwest:(southern Soudaniarn zone) to 500 mm (.19.5 inches) in the North (Sahelianzone) and extends over only a limited season -- from 90 to 150 days. More-over, there are very wide fluctuations in annual rainfall and in its dis-tribution during the season, causing great variations in crop outturns.The intense heat over most of the vear causes high rates of evano-trans-piration, so that the water balance is positive during only 3-4 months int'he Soudanian zone and two months in the Sahelian zone and stronglv negea-

tive everywhere for the year as a whole. Topography, limited rainfalland the high rate of eusnoration restrict the nonsibilities of waterstoraLge for irrigation. Conditions do not permit the cultivation of high-vielding oerennial crons- and the range of annual cron. that can be grownis limited.

Minernlct

3. Upper Volta's mineral resources offer some possibi1ities ofevent:ual exploitation, although their extent is still under investigationand !O organized mining artivity has been umnder-take-. Pronablyr the mosn:

promlsing :Ln the long run are the high-grade manganese deposits in theNorth at Trmnhano their poscible rdevelo1pment- wfll b1 e dAj,isc,used later iin che

report. In the Southwest, near Gaoua, there appears to be a fairly exten-sive copper deposit, about 200- killometers from the raiway to AbldA4an,

which is being actively explored by an international consortium in whiclha French group, ArAglo-A e14can anA the Voltaic gover,-ment have a.n inrterest.

In the Kaya region a porphyric copper deposit, containing also molybdenuam,

is beiing ianvesti ga:edd by thae Frencht B,RGJM (Bur a de Rcrh Geolog4q;es

et Minieres) which may be able to indicate in the second half of 1970whether commercial exploitation is likely to be warranted. In the North,at Tin Edia, there is a 50-million ton deposit of magnetite, which mayprove worth exploiting not so much for the iron as for the vanadiumassociated with it. There are also indications of other minerals such asbauxite, lead, nickel/chrome, copper/nickel and gold, but investigationshave not yet advanced far enough to determine possibilities for commercialdevelopment, except perhaps in the case of certain bauxitic clays whichmight be mined in modest quantities for use in refractories and abrasives.

4. It is improbable that the eventual development of mineralresources will make a significant direct contribution to the country'seconomic development. The employment created is likely to prove small inrelation to the total number of people for whom some form of productiveemployment must be provided. Experience indicates that expatriate miningconcerns will retain all the proceeds of export sales, except those whichmust be spent to meet their operating outlays in the country and to makesuch payments to the Government as might be due under profit-sharing androyalty arrangements or as export taxes. Provided mining is profitablesuch payments could be considerable. Their value, however, will have tobe measured in terms of an increase in the Government's capacity tofinance a larger development program of interest to the majority of thepopulation, particularly in the rural areas. Broadly speaking, therefore,the potentialities for rural development will determine the pace ofprogress in Upper Volta.

The Population and its Characteristics

5. The population, which a sample census conducted in 1960/61 putat nearly 4.4 million, is now (1970) estimated at 5.1 million. The annualgrowth rate, approximating 2 percent, remains relatively modest, largelybecause the death rate is apparently still 30 per thousand. The averagepopulation density -- 19 per square kilometer or 49 per square mile --does not appear to be high, but the maldistribution of the population inrelation to land resources has created serious problems. 1/ Probably onehalf of the population is concentrated in the Mossi country, which com-prises less than a quarter of the total land area and has the poorestsoils. There are districts with a population density ranging between 50and 100 per square kilometer. In the more densely populated areas, thecompetition for land for grazing and cropping is intense, leading tocontinual friction between livestock herders and cultivators. Moreover,soil fertility in many areas is deteriorating because there is no longersufficient land for fallowing and other means of restoring soil fertilityare not economically feasible. On the other hand, there are considerableareas in the South and Southeast which are virtually empty, and extensiveriver vallevR which were deDonulated for various reasons in the nast andwhich have remained unoccupied largely owing to the prevalence ofoncnhrPrriAn 8 (rivur h1indness)= The Western nart of the country is

still for the most part underpopulated.

1/ See the 1mTp -4n +tyof T On ccrutpin:at4nn L Are nf MnQaSIQ CDtt ment"±L1 -- . - , _ -t ..- -- ~ ---- ---- r---

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1`Mi r at ioni

6. Labor migration abroad has provided some relief. UnfortunateLy,reliable and up-to--date information on the extent and economic impact ofthis migration is not available. While economic necessity has become in-creasingly the dominant motivation of labor migrants, the desire of youngmigrants to emancipate themselves from the constraints of a traditionalsociety dominated by elders has been an important contributing factor.For the most part ithe labor migration is temporary in character, rangingfrom a single season to a number of years, although some of the migrantseventually settle permanently abroad. People often work abroad for severalperiods before retuirning home to settle permanently. Some of the migrantsremic money to their families from time to time, largely to enable themto pay taxes. The greater part, however, apparently bring home money andgoods only upon their return. The annual amount remitted or repatriatedby labor migrants is not known, but is usually estimated at around CFAF 3billion, a sum that is close to 30 percent of the money income of theruraL population.

7. The 1960/61 sample census estimated the number of residentstemporarily absent abroad at 160,861 of whom 56 percent were in the IvoryCoast, 31 percent in Ghana and the balance in other countries. There areindications that the total has since increased to well over 300,000; the1967-70 Plan document, in fact, projected the total for 1970 at 372,000.The proportion wor'king in the Ivory Coast has probably risen significantlyat the expense of Ghana. Moreover, fragmentary data point to the prob-ability that both the number and the duration of stays abroad by labormigrants have increased.

8. Labor migration is by no means an undiluted blessing. About87 percent of the migrants are men, and nearly all come from the younger,most active, age groups. Their absence undoubtedly results in a consid-erabLe loss in agricultural production in Upper Volta. Considering thestate of under-equipment of Voltaic agriculture, the principal determinantof produiction is manpower. Since the agricultural season is short, timelyland preparation and sowing is extremely important. The peak labor re-quiremenits occur at this time, and, subsequently, when weeding becomesnecessary. The women and older men left on the farm are frequently notequal to t'he task. The area under cultivation and the timeliness of farm-ing operations therefore tend to suffer. Moreover, although most of themigrants work abroad as agricultural laborers, the skills they acquire,principally in the cultivation of coffee and cocoa, are not relevant toUpper Volta. Work abroad does accustom people to mnoney income, however,so t'hat returning migrants appear to be more inclined than other to takeup the cultivation of a cash crop such as cotton.

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9. To what extent internal migration is contributing to a betterdistribution of population within Upper Volta is largely unknown. The

1960/61 demographic survey showed that about 26 percent of the rural

residents were born in another village and that this percentage was high-

est in those areas to which Mossis, the people occupying the denselypopulated central region, tend to migrate. The Mossis are undoubtedlypushing into areas bordering their own, but the rate at which this ishappening can only be determined by new surveys. There are seriousimpediments to rapid internal migration. Tribes and lignage groups whichhave the paramount rights to land within their jurisdiction are reluctantto admit "strangers" and to allot these lands on a scale that might en-

danger their control. Socio-religious factors also limit migration.While men are willing to go far in search of temporary work, the familiesthat migrate internally are reluctant to move far from their nativehomesteads. In particular, the need for ceremonial visits to family altarsrestricts the distance of migration.

Level of Education and Skills

10. The level of education and skills among the population still

leaves much to be desired. According to the 1960/61 census only 1.6

percent of the male and 0.1 percent of the female population 14 years ofage and over in the rural areas could read or write French which, in view

of the existence of around 60 indigenous languages and dialects, remains

the official language and is, along with Mossi, the principal means of

communication. Owing to the limited resources available, formal educationhas made only slow progress. In 1967/68 the proportions of children in

the 6-11 and 12-18 age groups attending school were only 10 and 6.3 per-

cent respectively. In 1969/70 total enrollment in all educational insti-

tutions was 137,950, and of these only 9,500 were in secondary and techni-cal schools and 450 were pursuing higher education (including 350 abroad).

As in many other African countries, the drop-out and repeater rates inprimary and secondary schools are very high. Adult education is confinedto that provided by the agricultural extension services as a supplement to

practical work experience. However, the nomadic and semi-nomadic live-

stock herders have hardly been touched either by extension services or byformal education. Moreover, while the expansion of agricultural extension

over recent years has helped to make farmers more receptive to innovations,notably with respect to the adoption of cotton as a cash crop, progress isinhihited by a number of factors. The fact that farming is sublect to

considerable risks and that much of the rural population lives perilouslyclose tn the hare subsiRtence level creates a reluctance to accent innov-

ations which might endanger basic livelihood. Farmers must be convincedby contin.ued demnnatrAtinns that the innovations will not epnnardize

their security and are both practicable and profitable. Under the extendedfamily system, , -hich in only gradually oiuina wav tn the "nuclear" familythe influence of the older, more conservative people, tends to be predom-

Inant. ThIs, as well as the attendant pooling of at least part of theincome from the extended family's land, curbs to some extent initiativean… enterprise among the younger, more dynamic elements of the rural

population.

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ii. The low level of education and comparative lack of experiencealso impairs the quality of the government service and tends to make itstill excessively dependent on foreign technical assistance. Much of theforeign personnel is inadequately utilized and the quality of such personnelhas tended to deteriorate. Moreover, the assignment of Voltaic counterpartsto foreign personnel and their attendant training still leaves much to bedesired.

Health Conditions

12. The prevalence of endemic diseases seriously impairs the efficiencyof the population, principally by reducing the availability of manpower foragriculture at critical times during the cropping season. While notableprogress has been made in combatting smallpox, measles and trypanosomiasis(sleeping sickness), such debilitating diseases as malaria and bilharziaare still endemic iLn much of Upper Volta. Parasitic infections such asguinea wonn are also prevalent, particularly in the Southwest. About400,000 people are estimated to be infected in various degrees by onchocer-ciasis, and of these probably 40,00 have become entirely unproductive owingto b:Lindness. The most marked effect of this disease, however, has beento deny people access to the productive river valleys infected by the flywhich is the vector of this infection. There is also a rather high in-cidence of trachoma in Upper Volta, and some 50,000 people are said to betubercular. Government health services are seriously handicapped by alack of medicines and other supplies, as well as by a shortage of qualifiedpersonnel. About 85 percent of the health budget is paid out in salaries.There are only six fully qualified Voltaic doctors; five out of elevenpublic health districts were without a chief medical officer in 1969, andten did not have an assistant medical officer.

Structure of the Economy

13. The economy of Upper Volta is overwhelmingly rural in character.Only about 5 percent of the total population can be regarded as urban.According to the 1960/61 census, among the active population 90.8 percentof the men and 82.6 percent of the women were engaged in farming and live-stock raising (the latter accounted for only 4.1 and 2.3 percent respec-tively). It is unlikely that this percentage has diminished significantly.Estimates of the gross domestic product at market prices for 1966 1/, thelast year for which reasonably accurate figures are available, show thatagriculture and livestock accounted for 48.7 percent of the total value:of output. However, their share of primary and secondary production,which in turn largely determine the output of the tertiary sector, was 80percent. In 1966, the contribution of commerce to GDP was 20.1 percent andthat of public administration 8.3 percent. Manufacturing industry accounted

1/ See Table I, Statistical Appendix.

for only 5.4 percent. Although the share of livestock in GDP was only 11percent, livestock and livestock products represented, in 1968, 54.5 per-cent of the total value of Upper Volta's recorded exports. However, thisshare has declined over recent years and is in large part due to corres-ponding imports of livestock from Mali and Niger.

14. The poverty of the economy is illustrated by the low level ofper capita income. Per capita GDP in 1966 was the equivalent of about $50and has probably experienced only a marginal increase since tihen. Monetaryincome is significantly less. In 1966, subsistence production accountedfor 41 percent of private consumption and about 35 percent of total GDP atmarket prices.

Political Evolution

15. In the colonial period the area now known as Upper Volta wascomparatively neglected. For a time -- from 1932 to 1947 -- it was evendismembered into three parts administered from Niger, French Sudan and theIvory Coast. Upper Volta became independent in 1960. From that year toJanuary 1966 the country was under the control of a legally electedGovernment headed by Maurice Yameogo, the leader of the only authorizedpolitical party, the "Rassemblement Democratique Africain". Uowever, theGovernment was increasingly criticized for corruption and financial mis-management; and the austerity measures which it finally felt obliged totake precipitated a general strike and street demonstrations which broughtabout its fall and succession by a military regime headed by GeneralSangoule Lamizana. The military government hias remained in power andhas given the country a period of political stability characterized by arehabilitation of public finances and slow but steady economic progress.In March 1970 the Government submitted to a Consultative Committee adraft constitution providing for a gradual return to civilian rule butunder conditions which stipulated that non-political bodies as well aspolitical parties would be represented in parliament and that for aninterim 4-year neriod the Dresidency and certain key ministries, includingthe Ministry of Finance, would continue to be held by the military. Des-nit-e thp failuirp of the Conqultative Committee to agree and the oppositionof the political parties, the draft constitution was submitted to a popular

eoforenA1im n n -TJimna 1/ snA nuprwhelmincglv pnnrnupd- Elprtinnn are .rhedtilpd

for November 1970.

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16. Despite th coLnUL8£lrIILS mtULLioned ta eL.LLel, LLh ecUImULy hs madt!

some progress, particularly since the advent of the present Government.In the absence of reliable data and a consistent series on national accounts,it is difficult to provide any overall measure of this progress. From 1964to 1967 total output: probably just kept pace with population growth, butone may hazard the guess that the economy has since expanded at a rate ofarounci 3 to 4 percent. Some specific indicators or the expansion in tradeand of the :mprovement in government finances and the balance of paymentsare given in Table J. below.

Table 1: I-NDiCATORS OF ECONOM1C PRUGRESS

Average Annual1965 and 1966 1968 and 1969 Growth rate

Volume of agriculturalproducts marketed('000 tons)

Seed cotton 8.25 24.65 44.0Groundnuts (shelled) 7.25 10.35 12.6Sesame 2.15 2.80 9.2Sheanuts 10.15 17.50 15.0

Exports (billions of CFAF)f.o.b. 3.83 5.31 11.4

Imports (billions of CFAF)c.i.f. 9.23 11.49 7.3

Net foreign assets (billionsof CFAF) /a 2.60 5.94 23.0

Government budget savings(millions of CFAF) /b 134 959 92.0

Net government claims on thebanking sector (billionsof CFAF) -0.13 +2.24

/a Figures are for end 1965 and 1969.

lb Yigures are for 1966 and 1969 (estimated) respectively. Debtamortization is included in budget savings.

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Agricultural and Livestock Output

17. Within the framework of decentralized Regional DevelopmentOffices (Offices Regionaux de Developpement, or ORDs). extension servicesdirected largely by foreign companies working under contracts financedby foreign aid, have had some success in promoting the nroduction andmarketing of cash crops. Seed cotton production has increased mostmarkedlv -- from 7.436 tons in 1965/66 to 36-250 tons in 1969/70 --particularly in the Black Volta ORD where the French CFDT l has been

active in promoting this crop for a considerable n.m.ber of yars- A

modest increase in groundnuts production has also been obtained, principallywith the haelp of the TuIuO 2/ .nA the collectio of sheanuts f__ _4id trees

has considerably increased, presumably in response to a growing desire forcash, A incomUe on the part of the rurai popul a til on. However, tIe prolt,ucLor

of cash crops has made relatively little progress in those parts of UpperVolta wh,-..i4c are Che mostl heaV4l; populaete .T n thLe abasence ol an agrlcul-

tural census and annual crop sampling, it is difficult to determine how theproduction ofL floodu crops andu particularly that ol sorgh'luri andu millet, theprincipal food grains, has developed. In some of the cotton growing areasgraLn crops hIave probably UenefitLLed to some extent froul thile resid'ua'L eifects

of the application of fertilizer to cotton. A FED-financed campaign fortLh-1e UdLsinLection oLf seedl alas allso probably ha.OUad some effect Lin .L proving

yield. On the other hand, in view of the continuing deterioration of soilfertility, especially in the Mossi reg'on, it is unlikely that food pro-duction has on balance improved significantly. The production of ricehas undoubtedly risen, but rice ls still a coumparatlively minor crop.

18. The livestock sector appears to have made little progress,

although the available data are somewhat confusing and contradictory.While the number of livestock has continued to increase -- cattle by 1-2percent and sheep and goats an average of 3.5 percent per year -- and thetotal herd now (1970) comprises about 2.5 million cattle and 4 millionsheep and goats, annual offtake rates remain modest -- probably only 10-11percent for cattle and 25 and 30 percent for sheep and goats respectively.Overgrazing, particularly in the North, has become a serious problem andthe incidence of disease has increased. Official statistics do show thatthe value of exports of livestock and livestock products increased on theaverage_ hv 74 npercent from 1965 to 1968. 3/ While the valuip of Pxnorts

of livestock on the hoof increased according to the customs statistics,data cnllprtpd by the T.ivesttoek Service show that- in termcz of nnmhers

exports of both Voltaic cattle and cattle in transit actually declined.4/

1/ Compagnie Francaise pour le Developpement des Fibres Textiles.9!/ T-stitut de Recherches pour 1es Huile et Oleaginec Tropicax.

3/ See Tables XII and XIII, Statistical Appendix.T/ A -- 4-rso of the aver-g --.ber of hesd 4xore in !965/6 anA that

in 1968/69 shows declines of 12 percent for Voltaic cattle and of 49percent flor cattle iLn transit. rhe average number of Vloltaic sh-eepand goats exported remained about the same, between 245,000 and249,000, while exports of ani.als iLn transiLt LUroppedU sharply iromu64,564 to 19,601. For the relevant figures, see Volume III of thisreport.

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The Livestock Service aiso reported tnat tne number or Voltaic sheep andgoats exported remained about the same 1/. Perhaps these discrepanciesare explained in part by the difficuity of coliecting reiiabie riguresfor livestock exported or, the hoof. Exports of beef and poultry, forwhich more accurate statistics are available, have definitely increased.On balance, however, the livestock export of the Mission concluded thatthe livestock sectDr evidenced little or no development and in some re-spects even deteriorated.

Industrial Production

19. Industrial production, which, as already noted, is not verysignificant, appears generally to have stagnated in the 1966-68 period,except for the ginning of cotton, the production of soap and the outputof galvanized sheets. 2/ The output of vegetable oils other than sheanutbutter actually dropped considerably. In 1969, however, there appears tohave been a more general increase in output. In recent years a few newindustrial plants have been established. The most important of these isa cotton textile plant at Koudougou (VOLTEX) which began operating towardthe end of 1969 and is to produce in the first year about 600 tons of yearnand 275 tons of cloth. The Government has a 40 percent equity interest inthis mill. The second is a small plant at Banfora for the conversion cfimported sugar into cube sugar. This may eventually be incorporated in amuch larger venture comprising a cane sugar plantation and mill which isstill under study. A brick plant and small cigarette and match factorieshave also been established. The National Development Bank (Banque Nationalede Developpement) has sought to stimulate some indigenous industries andartisan enterprises, but with rather indifferent results owing to thelimited capacity of local entrepreneurs.

Foreign Trade and Balance of Payments

20. Foreign trade has developed favorably over recent years, as i8shown in Table 2. Exports of cotton and cottonseed rose rapidly, partic-ularly in 1967 andi 1968, and those of other agricultural commodities, in-cluding groundnuts and sheanuts, also increased. The share of livestockand livestock products in total lexports significantly declined, althoughtheir recorded value, as already noted, continued to rise. Imports as awhole have increased rather slowly, except in 1969, when there was a sharpbut perhaps temporary spurt. 3/ Imports of foodstuffs and beverages havedeclined, and impcirts of consumer goods as a whole dropped in both 1966and 1967. The value of investment goods imported almost doubled fromCFAF 1,185 milliorL in 1965 to 2,001 million in 1968. With the consider-able increase in exports, it was possible to stabilize and even reducethe overall trade deficit until 1969 wnen the rise in imports produced amarked increase. It should be noted that all these figures bear onofficially recorded trade. In a country like Upper Volta, which has exten-sive land frontiers, a significant percentage of the foreign trade escapes

1/ See Tables XII and XIII, Statistical Appendix.2! See Table III, Statistical Appendix, for some statistical data

on production in the 1966-68 period.3/ Imports in the first quarter of 1970 were CFAF 2.94 billion compared

to CFAF 3.34 billion in the corresponding period of 1969.

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official control. The balance of payments for 1968 prepared by the centralbank shows total exports and imports that are respectively 21 and 31 percenthigher than the official trade figures, although it is not altogether clearto what extent these adiustments reflect, if at all, allowances for un-controlled trade.

Table 2: RECORDED FOREIGN TRADE(CFAF million)

Cotton and Agricultural Livestock and Imports ImportCotton commodities livestock Food /a & Total deficitseed _Products Total beverages

Year Percent Percent PercentValue of Value of Value of (value) (value) (value)

total total total

1965 305 8.3 805 21.9 2,319 63.0 3,680 2,550 9,169 5,4891966 336 8.4 890 2. 2,61 5 .5 3,985 2,610 9,294 5,3091967 940 21.2 1,466 33.1 2,615 59.0 4,429 1,970 8,970 4,5411968 1 ,07 1 96 1 92 36-4 2,882 v 54.5 5 ,2n 1,86A 10,13A0 A4R,n

1969 5,330 12,860 7,530

/a Excluding live animls.

Source: VTTles -YI and VITT Statistic AppeA..4dx 196° traAe t-otals arefrom IMF.

21. Lack of data makes it impossible to determine precisely howUpper VoJ.lta's balance oil international paymAents hLis developed. LiIowever,the fact that the country's net foreign exchange assets have steadly risen

%LU ,.rftr 1. *UV UJ.LL.L.LUL ~LLI 1u to. LUJL 5.J `q Ujon.U aL `eL en'U oJ.ru o-rAr 26b'lon at the en' ofz 1965 to 5.4 bill'on1 L. the en of1969 and further to 7.11 billion in March 1970 shows that the overallualance has been strongly -favOrabOle. DdB.a1Lan VL pfyut:L1L etL.LLmate sUL J.r71

were prepared both by the IMF and the BCEAO (Central Bank of the WestArrican Monetary Union) 1/1. irnese two estimates, reprouuceu in Table AIAof the Statistical Appendix, roughly agree in putting the total deficit ongoods and services account at a figure somewhat in excess or CFAF 5 billion,but only because the BCEAO, unlike the Fund, includes in "other services"migrant remittances (CFAF 3.1 biiilon gross) wnich the Fund inciudes (inthe sum of about CFAF 4 billion) under "private transfers". The BCEAOfigures, which may be somewhat more reliable, indicate that the totaldeficit on current account for 1968, including "private transfers", wasabout CFAF 3.2 billion. rhe trade deficit was around CFAF 5.J, while"services" and "private transfers" showed a positive balance of aboutCFAF 2 billion. Substantial expenditures on travel and transport underservices provided under foreign aid programs and remittances of investmentincome and trade commissions were more than counterbalanced by receipts,including principally remittances of labor migrants (CFAF 3.1 billion:,

I/ cee maule VTVX, Statistical Appendix.

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military pensions (nearly CFAF 2 billion) paid by France to former Voltaicsoldiers, and foreign government outlays in Upper Volta (about CFAF 1.4 bLl-lion). On capital account the BCEAO figures show a net import of capital in1968 amounting to CFAF 5.59 billion, all but CFAF 0.75 of which represented"public" capital. Of the latter net drawings on loans accounted for onlyCFAF 0.23 billion. Capital imports permitted Upper Volta to add CFAF 1.23billion to its net foreign exchange assets after allowing for "errors andomissions" totaling CFAF -1.13 billion.

Public Finances

22. The present Government has been notably successful in puttingpublic finances back on a sound basis and in generating some budgetsavings for investment. At the beginning of 1966 the Government had tocope with a serious deterioration in public finances which had resultedin a cumulative deficit of nearly CFAF 4.5 billion financed in a varietyof ways, including the accrual of unpaid bills in an amount of almost CFAF1.5 billion. 1/ It has not only liquidated virtually the entire arrearsin unpaid bills, but it has accumulated substantial cash balances despiteincreasing budget outlays on investment. While the Government's netindebtedness to the banking sector was CFAF 130 million at the end of 1965,by the end of 1969 its claims on the banking sector amounted to CFAF 2.24billion (Table 1 above).

23. Table 3 gives a summary of the evolution of government financesfor the period 1966-69 and Tables III-IX in the Statistical Appendix pro-vide further details. While ordinary revenues rnoe at an average annualrate of 20.2 percent, principally clue to an increase in indirect taxcollections- current exnenditures grew at a ratp of only 37S npercent.General administrative expenditures were kept down; outlays on social andcultural services (nunhlir health and eduicationn) and on defens,e were cut

in 1967 and 1968; and expenditures on economic services were reduced in1967 and virtually kept stablp thprpafrpr The numhpr of civil servantshas remained approximately the same; and the proportion of governmentpersonnel expenditures (salaries and oensions) to the current outlays

(about 56 percent in 1968 and 60 percent in 1969) is not surprisingly highconsidering the limited revenues of this nnor cotintrvy 21- Largelv due ro

these measures the Government was able to achieve budget savings (domesticresoutrces 1 s current eynpndiituires for all nurnposec other rhan debtamortization) averaging more than CFAF 1 billion in the years 1967-69.

I/ 5,PP Tbl ep TV CSt:iati-tiern1 Anndix.

2/ The 1970 budget, however, envisages personnel expenditures which areCFAF 756 million or 15 percent higher than those provided for in 1969.lhis increase was due in part (probably to the extent of about CFAF212 million) to government assumption of direct responsibility forpayment of salaries of teachers in confessional schools which pre-vtiously had been indirectly paid through subventions, and in part tothe revision, in December 1969, of minimum salary scales.

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Table 3: GOVERNIENT BUDGET AND SAVINGS(in millions of CFA francs)

1966 1967 1968 1969 (est.)

1. Ordinary budget resources 7,429 7,565 8,260 8,926

2. Ordinary budget expenditures 7,926 7,008 7,288 8,224of which debt amortization (125) (179) (105) (153)

3. Ordinary budget balance (1-2) -497 -557 +971 +703a. excluding debt amortization -372 +738 +1,076 +856

4. Extraordinary resources - total 1,121 712 547 554a. Domestic (506) (262) ( 97) (104)b. Foreign * (615) (450) (450) (450)

5. Investment and equipmentexpenditures 784 1,037 1,156 1,257

6. Total budget balance (3+4-5) -160 +232 +362 -

7. Domestic budget savings (3a+4a) 134 998 1,173 959

* French budget aid except for a receipt in 1966 of CFAF 92 million fromthe Fonds de Solidarite de l'Entente.

Sources: Tables V and VI, Statistical Appendix.

24. However, the austerity measures in public finance have had someundesirable consequences. It has already been noted that expenditures oneconomic services have been severely curtailed. The ordinary budget pro-vision for supplies, equipment and maintenance has been inadequate, amount-ing, for instance, to about 13 and 17 percent of current expenditures in1966 AnA 1969 rpenpetivelv. A considerable nart of the French aid (CFAF450 million annually in recent years) allocated to the budget has had tobe used to make upn de ificlenri in supplies reniiired hv rprtain serviresfor their operation. Key government services such as those concerned withlivestock and public health have plaid out v_rtually n1i their appropriationsfor salaries and wages, leaving little for operating expenditures. Theagricultural services operating in those regiorns where programs are notsupported by foreign aid have also been starved of operating funds. Main-tenanc hA__s g AllyA A11 suffreA Th Aat '' m_ ,A,A nhn,rnLC..t. *.o 15L L°-Sfl, tA ku *. &t''' .^ v .&b ~...t..cannot be regarded as altogether real because they have to some extentb .een reali4lzed. a- thle expense of necessary mainte-ance, anA have helped to

Lu CCL.LLCU L. LLix I J. UO* .&,Sl. O - I.a . jJ A %

finance expenditures under the "investment and equipment" budget whichhiave in part bUeen of a "maintenance" rather than an "investment" character.

-- 13 -

The ordinary budget should in the future make a more realistic allowancefor essential maintenance and operation. At the same time, however, care-ful control of current expenditures will continue to be necessary, partic-ularly since there is unlikely to be much scope for increasing the rateof taxation under conditions where current government revenues alreadyprobably amount to about 20 percent of monetized GDP and import taxationaveraLged, in 1968, 28.5 percent of the value of recorded imports.

25. The size of the equipment and investment budget, inclusive ofthe French budget allocation mentioned above; increased from CFAF 784million in 1966 to CFAF 1,257 and 1,354 in 1969 and 1970. Apart from theexnPnditnres financPed from the French hiidct allocratinn and some relativtely

minor outlays, this budget has been distributed almost evenly betweenpr,prPn,dtjr§zc of thce Rnr,il Fuined Ani nttl v for "1inve-Rtmentc anti ctludipes"l

The latter include the Voltaic counterpart contribution to the cost of ORDdevelopment progr-mc and agrricult-ural research ai-t-ivitiec fnnned with

foreign aid 1/. Tthe substantial foreign funds made available for specific….- ..t... ~ ~ ~ ~ ~ ~ I -Jprojects ar-e not included iLn th'e investment and' equip-mUent budget .

LU. DUUgeLS oLtner tnan LnaL o0 t'ne centra'. government neeiu LU 'Dt

notecd only briefly. The Office of Posts and Telecommunications has itsown autonoMous budg,et which has been approximately baianced. The social.insurance funds, which provide family allowances and accident and old a,geinsurance for wage and salary workers, have together tended to run adeficit which in 1968 amounted to about CFAF 64 million 2/. Local urbanand rural governments, of which there are 82, have their own budgets.Their resources, aiEter taking into account the allocation of part of theirtax collections to the central government, are extremely slender, amount--ing in 1968 to only about CFAF 940 million or less than 13 percent of thecentral government's current expenditures in that year. 31 Nearly all oftheir outlays are on current services. Less than 10 percent is devoted to'new works", primarily in the fields of education, public health andadministration.

1/ rhus of the CFAF 425 million provided for "investments and studies"under the 1970 budget, CFAF 199 million was allocated co the ORDs,GFAF 153 million to foreign aid ronunternart and CRAF 62 million toresearch institutes.

2/ See Table XII, Statistical Appendix.

3/ :Se Table Y ttsi3 A-nend4-

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II1. DEVELOPMENT EXPENDITURES AND FOREIGN AID

The 1960-70 Plan

27. Upper Volta's first development program, extending over a three-and-a-half year period from mid-1967 to the end of 1970, was launched in1967. The Plan was projected on the basis of an annual growth rate of 4percent which, considering the probability that the economy had previouslybeen expanding at a rate of only around 2 percent, appeared rather optimis-tic. In addition, the hope was expressed that it would lay the foundationsfor more rapid progress in the ensuring periods.

28. The Plan envisaged a development expenditure of CFAF 32.,97 billion,including an "optional tranche" of CFAF 5.46 billion. Its progress, inItems of actual ependitures up too the ed of 1969, 4 .. a al .

Actual outlays during the first two and a half years of the Plan reachedon. I t JJ.L.Ll LL~~lJt .' V 1.At I-*A 4. LIF Lf* e JJ Sp * 4 RJ- only VW percent of the expected I-eve! (566 percent if the optonall trancheis excluded). The actual rate of expenditure, which did considerablyiLncrease iLn 196U92, comjpares as follows with the targets (.in billlons of CFtA

francs): 1/

1967 1968 1969

Target 41 .581

Actual 3.31 4.18 6.21

m _ -_ fli, r aI t 7 n f f_yn -1 A-e f_ AXThYOTf Ann- A -f ATIaOle i; n 1no/-iv r1,JU. rlL'clLlr lull AtIUAI, EXlPJIAlURL± S

(in billions of CFA francs)

PercentagePlanned Expenditures Actual Expenditures of target

achieved

Sector (1) (2) (3) (3) + (2)1967-70 1967-69

ProductionRural sector 9.i1 6.16 3.17 51.4Modern sector 5.95 4.66 2.97 63.7

Economic infra-structure 11.40 7.15 4.29 60.0

Social (health,education, etc.) 4.84 3.65 2.07 56.7

Re-search, studies

and information 1.67 1.26 1.20 95.2

Total 27.5 22.89 13.70 59.8

1/ Th~ese figures, -which came to th-e r.otice_ of the. M.ssior. aft-- 4it had.it I LIC .1.LU a, w,...Li . S. - - _ -_.- -_ -. - -* .

completed its field work, indicated for 1967 and 1968 a total that isCr-Ar i.2 bi'lion be.Low tih.at shlown iIn Table XT.I. of th.e Statistical

Appendix. The discrepancy may be partly due to the fact that Table XXVIIincludes expenditures "outside tne Plan".

- 15 -

The increase in output also seems to have lagged considerably behindexpectations, although, as already noted, accurate indices on the develo?-ment of GDP and of total agricultural and livestock production are almosttotaliLy lacking. The only signiticant production target tnat is Ilikely

to be surpassed in the Plan period is that for cotton.

Lags in Development Expenditure

29. The most serious lag in development expenditures has occurredin the rural sector to which, quite correctly, the Plan accorded priority.In this sector only slightly over half of the target amount for 1967-69was spent by the end of 1969. Progress was undoubtedly made in theorganization and staffing of the Regional Development Offices, and as aresult: useful agricultural extension programs were continued or initiated.In the livestock sub-sector, however, little or no progress has been made,and the proportion of the targeted expenditures achieved has been farbelow that for the sector as a whole. In almost every respect performancehas lagged -- in equipping the Livestock Service to permit it to carryout more effectively its activities with respect to disease control,supervision of bush slaughter and improvement of hides and skins prepara-tion; and in the implementation of projects for livestock routes, abattoirs,holding grolunds and ranches. Fortunately a number of studies that are likelyto produce projects in this way have by now been completed or are under way.

30. In the modern sector (i.e. industry) the record has been better.The major investments realized were, as already noted, the textile plantand the sugar-cube mill. Planned investments in cotton ginning and themanufacture of cigarettes, matches, bricks and shoes were realized. How-ever, the long-planned new abattoir for Ouagadougou and the vegetable oilmill were seriously delayed owing to reasons largely beyond the controlof the Government, and are unlikely to get started before 1970/71. Anumber ol smaller ventures were also non-starters -- some probably withiustification.

31. Expenditures on infrastructure during the years 1967-69 reached60 percent of the target, or 75 percent if the "optional tranche", whichwas primarily allocated to this sector during the period, is excluded.Investment in roads, which accounted for the major part of the outlays,was somewhat delayed but nevertheless made reasonable progress. Investmentin the existing RAN railway exceeded expectations, but for the entire Planperiod railway investment is likely to be far below the target since con-struction of a new railway to the Tambao manganese deposits will certainlynot start before the end of the Plan as originally envisaged. Urban invest-ments, such as these in water supply and housing, have been substantiallybelow expectations-

32-. Ottlayv on the sonial scrtnr, nrimarily niphir health andeducaltion, reached only 56.7 percent of the target. On the other hand,Pxnpn.ituirpq nn studies rpqearch and information have devplnnped acordingto plan. By and large it is clear that the Plan as a whole will take oneor two years longer to com-lete than was originall- expected. Currentprojections indicated that about 65 percent of the planned expendituresw-il probably be realized by the end of 19'70

- 16 -

Financing of the Plan

33. Finance has not been the principal bottleneck. By the end ofOctober 1969, for vxamnlen 70 npercnt nf t-he- external pbnihll, and private

financing projected by the Plan had already been committed. 1/ Whiledomestic financing has been difficult, it, too, has not so far been aserious impediment. The causes of delay in carrying out the developmentprogram are many. One of them is the somewhat dilatory and omplIcatedprocedures of the foreign aid agencies. In large part, however, the lagbetween cor,..JitmentS andG disbursement. s is dAue tJ* o th[A e faillure to workJA. outL

the necessary details of development projects and to set up and stafforganzatins aA ag_. 4_ ies_ eqipe to car t.Le ou Afiet lr C4_ X__X..vLorWaLL.LLa LJ.LJD ~LLU C..LL . JD LU ..QL L y *LLIL JULL C X . X.CLA L . -L LC

Ministry of Planning and Public Works is not yet effectively organized toensure or superviLse the adequate andu promLpt preparatLLon andU execut'Lon of

projects. The Bank Mission itself encountered considerable difficultyin obtaiunig fromi t1his LL nistr-v reliable andu up-to-udate LnLouiat'Lon on

actual and potential projects and on disbursements in relation to commit-

ments. EssentiLal data on projects are ofLten scattere'd through the ministries

and departments. The Bank has already suggested that a properly staffedprojects bureau be establishea to direct the preparation, and follow up onthe execution, of projects and that all the essential information on thePlan ana its component parts be centralized in a "doc-umentation center"

in the Ministry of Planning. Some steps in this direction have apparentlybeen taken. However, the problem of obtaining sufficient experienced staff,both foreign and indigenous, is unlikely to be resolved for some time.Tne Bank has also recommended the estaDlisnment of a Programming Bureau inthe Ministry of Finance in order to synchronize regular and developmentbudgets on the one hand, and to estimate recurrent expenditures arisingfrom development investment on the other hand. 2/ These proposals havesince been adopted by the GoverLm-ent, which has been negotiating Wlth UNDPfor financing a technical assistance expert needed to establish the Bureauand to train Voltaic counterparts.

34. According to the Government, the means employed to finance Planexpenditures up to the end of 1969 have been the following (in millions ofCFA francs): 3/

1/ See Table XXIX, Statistical Appendix.2/ C. J. Martin, "Proposals for the Improvement of Development Planning

in Unoer Volta -- The Creation and ODeration of a Proeramming Bureauin the Ministry of Finance" (February 18, 1970).

3/ Smenwhat differFnt brpakdowns of the sources uned in finanoing expendi-tures in 1967 and 1968 are given in Table XXVI and XXVII of theStatistirnl Anppndix= Tahlep XVTT indiratep that thp Inoal *ontri-

bution (after making a rough allowance for foreign private investmentunder "enterprises and other privata") woa abott '33 perent of the

total but that the "national budget" contributed a much smaller sharein these two yersy whe i i - figures in the text forthe entire 1967-69 period. However, Table XXVII does show that thebuudget conttribution i.. 1968 was substantially hihr hnin167 nL.~~A.... ~ ~ 4~ 1O~~Q ., ~ .- "..g'er than in 1916-7, and

it is reasonable to suppose that the national and local budget allo-cations to UeCve'Lop,uent rose sharply ir. 1969.

- 17 -

Amount Percent of total

Domestic sources

National budget 2,098 15.3

Local government budgets. BNDand local private investment 1,950 14.2

External sources

France (FAC and Caisse Centrale) 4,969 34.3EUtrOpean GOmmOn Market (FWD) 2,874 21.0UNDP/IJN 619 4.5Other bilateral sources 1,102 8.0Private foreign investment 365 2.7

Total 13,704 100.0

The ].ocal contribution to development expenditures has been much higherthan originally expected. It should be noted, however, that the budgetshare of development outlays includes a significant amount of operatingexpenditures such as those for salaries of Voltaic personnel assigned tothe various ORDs, and that the BND, which provides credit for agr culture,industry and construction, operates in part with foreign funds. 1J

Foreign Assistance

35. The figures in the preceding paragraph indicate that CFAF 9,656million or 70.5 percent of total development expenditures in 1967-69 werefinanced by foreign aid. Of this, private investment provided but a smaLlshare. Other sources indicate that total foreign aid disbursements, in-cludLng technical assistance, amounted to CFAF 4,900 million in 1967 andCFAF 5,511 million in 1968 2/. Some part of this assistance, however, wasevidently provided for purposes other than the Plan. Since 1966 foreignassistance has considerably increased in terms of both commitments anddisbursements. In the four-year period 1963-66, for example, totalcommitments averaged only CFAF 2,436 million per year. 3/

36. The principal sources of foreign aid have been France (FAC andCaisse Cpntralp) snirid the Eu,rnnpen rnm=on Ma,rket (PFET)h- The TTNDPITN hasbeen the t'hird most important source, though ranking far below the firsttwo. Arcording tn the figures presented in paragraph 34, France, FEn andUNDP contributed respectively 48.6, 29.8 and 6.4 percent of the foreign

1 / riD xr- .n . 1y - 1-A4- b th C Tzmn rose S... fromr LI A4 1 A Q . -v *U.Lv--

1965/66 to CFAF 1,475.2 million in 1968/69.2/ See Table VVTI, Statistical Appendix.3/ See Table XXX, Statistical Appendix.

- 18 -

financing of Plan expenditures up to the end of 1969. However, the dataon total aid disbursements in 1967 and 1968 given in Table XXXI of theStatistical Appendix show a much larger share tor France (65.4 percent)and a smaller share for FED (17.1 percent). This is due to the fact thata considerable portion of French technical and other assistance has notbeen used for the Plan. In 1967 and 1968 French "investment aid", forexample, amounted to only 44.4 percent of total French assistance; andwhen the cost of technical assistance, used in part for development, isadded, the proportion rises to 88.7 percent.

37. An exact breakdown of FAC investment aid was not made availableto the Mission. However, during 1967 and 1968 roughly 5 percent went forresearch and studies. About one-third was devoted to the development ofagriculture and livestock, although of this only a small portion was allo-cated to the livestock sector and even that has been disbursed ratherslowly owing to the ineffective organization and coordination of theservices concerned. Public health and education absorbed somewhat morethan 10 percent. Investment in infrastructure, largely in the form ofequipment for road maintenance, accounted for about a sixth; and suppliesand equipment for various ministries for around a fourth.

38. Of allocations under the second FED, which served primarily tofinance the 1967-70 Plan, over 60 percent went to various road projectsand studies. 1/ Roughly 14 percent was allotted to water and electricitysupply and somewhat over 10 percent to rural development, includingagricultural extension programs in two ORDs and a national campaign forseed treatment. While a substantial portion of the first FED was allocatedto public health and education, including the construction of 225 ruraleducation centers, less than 3 percent of the second FED has been devotedto these sectors. In the public health field, however, FED has continuedto finance a noteworthy and successful pilot program to eradicate thevector of onchocerciasis. Generally, the FED program has been character-ized by a long lag between commitments and disbursements. Under thesecond FED program, for examDple, commitments up to the end of 1969 totaledthe equivalent of $28.3 million. Of this sum, contracts had been placedfor S20.5 million, and disbursements had been made for only $9.8 million.In large part this lag is due to the fact that commitments are made beforethe details of nroiects have been worked out.

A3onric nc1nd souirePs nther than Franrp and FFD acrrrmntrPd for

slightly less than 18 percent of total aid disbursed in 1967 and 1968.A-0- *-I-p tho mnat 4mnnrtant onntrihn,tor hAa hpon TTNTP ythirh has flnnced

major studies in the field of minerals focusing largely, though not ex-clusively on th.e possibilitie4s of exploiting and tran-sporting the m.anganese

ore at Tambao.

1/ See Table XXXII, Statistical Appendix.

19 -

A4A. Thie effe.tvre ss of_ forig ai ;11lavssmehrgobVWJ A.LtL 1. 4.V=LZ Uk LULM.L6LL CLJt bL.LJ.L. JtCV t 50UMLAL4LLr,L LWu c

desired. However, over the last three years the situation in this respe!cthUas cons deraby improved. Prev'ously a numler of il-cons'dered ,nves-ments were made. Both FAC and FED, for instance, financed a large numberof reservoirs which for the most part nave remained unutilized largelybecause complementary investment in irrigation facilities were never under-taken; arid FED financed a rather expensive soil conservation program inthe North which yrie!lded few lasting benefits. At times hospitals, schocolsand other facilities have been established without ensuring adequate pro-vision for their staffing, operation and maintenance. The provision ofsufficient funds for operation and maintenance still remains a seriousproblem.

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IV. FUTURE ORIENTATION OF DEVELOPMENT AN-D FOREIGN AID

41. The development of the rural areas with a view to maximizingboth production and employment on the land should continue to be thedominant preoccupation of the Government and people of Upper Volta.Future efforts in this sphere should move gradually in the direction ofmore integrated and broader rural development programs and should lay farmore emphasis on more effective utilization of the country's livestockpotential. They should at the same time take much more cognizance of theneed to bring about progressively a better distribution of population inrelation to land resources by developing opportunities for settlement inless densely populated areas. However, before turning to a discussion ofrural development, a brief comment should be made on investment needs intransport and communications infrastructure and in mining.

Infrastructure Investment Requirements

42. The Mission did not have the opportunity to give more thanincidental attention to the transport sector. By and large, however,major new investments in transport infrastructure (apart from the possibleultimate extension of the railway to Tambao) do not appear to be needed.The country will be reasonably provided with main roads when existingFED-financed projects (roads linking Bobo-Dioulasso with Faramana andOuagadougou with Koupela and with the Ghanaian frontier) are completed andif, as seems likely, certain additional roads (Koupela to the Togo frontierand Koupela to Fada N'Gourma) are included in the third FED program.The proposed IDA credit for cotton development includes provision forfeeder roads. Apart from these existing and prospective commitments, theMission considers that the principal need will be for the improvement oflocal roads and tracks within the existing ORDs and, eventually, for thebuilding of certain roads that will facilitate the settlement of therelatively empty Fada N'Gourma region and the White Volta River Valley.

43. Although the telecommunications sector was also not specificallyvxamin4td by thp missionj therp will uindnouhtpelly be neAe fnor fuItih- invst-

ment supplementing the program now being carried out with the help of anTIDA cre4t 4o-f $0. millio 4 n. The -- 4.f-4- telecomm.un4-atio4- 4ytmisvr*a.,n y-- - - - - -o ~ - - 0, L LU t -V

limited. It is largely confined to the two principal cities of OuagadougouanA. Bobo-Dioulasso, an.A uto l.inks between th.ese anAdWl* , with J. the Ivory Coast

along the railway to Abidjan. Telephone density is about the lowest inkmLIr iLca. LIxcept 'or overseas services in Oaaogu xsigisaltosJ~LL ±1 F, L. L.j LJ 1VL 8O U L AA.' & VU =61JU8 AVU6VLA, CA± .L.L&16 .LL1ZSLaL.L±8LaLU11b

are inadequate for the present traffic. A FAC-financed study by SOFRECOMwill determine fluture domestic requiLremwents, andU studies oxL L'Lnks with othnerEntente countries are being considered.

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Exploitation of Mineral Resources (Manganese)

44. While mineral research and exploration has proceeded on a numberof fronts, most of the attention in Upper Volta in recent years has focusedon ways and means of exploiting the manganese deposits at Tambao. Succes-sive UNDP-financed projects, the first of which was initiated in 1966, haveaddressed themselves to this problem.

45. The manganese ores at Iambao are found principally in two hillsand continue below the level of the peneplain. While final investigationsare still being completed, they are likely to confirm the existence ofaround 10 million tons of merchantable oxidized ores.l/ These ores areof a grade superior to most of those now being mined in the world. About51 percent are of "chemical grade", containing more than 56 percent man-ganese and 85 percent manganese dioxide. Of the balance, 32 percent areof superior metallurgical grade, averaging 51 percent manganese, and 17percent of standard metallurgical grade, averaging 46 percent manganese.Impurities are well within commercial specificationst although the phos-phorus content of some ore is rather high but still acceptable.

46. Below the oxide ores there is a considerable body of carbonateore, interspersed with oxides. The size of this ore body is still sublectto investigation, but it is believed to total about 10 million tons. Thisore, renorted to assay 36-52 nercent manganese. could be oxidized on thespot by calcination and subsequently pelletized at a total estimated costof SB ner ton; thus raininv the manganese content to nearly 59 nercent onthe average.

47. The Tambao deposit has a number of other advantages. All ofthe oxides and part of the rcrhonate cnuilti h mined by ospen-cut methodsand, owing to the configuration of the ore body, the amount of sterilematt-er excavated per ton of ore would probabl- be on!- 2.25 tons as com-pared with 5 tons in many other mining sites. The ore also has an ab-normallv lnw hm-midify cnntpnt (1 prcrnt) and wonuld yield very little"fines" which woulid have to be sold at a discount. Finally, the bulk ofthe ore wouuld rpn,qire no treatment. Since Nedeco m.ade its economic fea-

sibility study of the project in 1967, it has been demonstrated that littleor nfo water would be required for bene-fication.

48. 'The princ ipal3 diisadvantage of Tambao 4s its distance from the- sea

(Abidijai) - 1,514 kilometers. Exploitation of the deposit would require theconstruction of a 353 ki- lometer- r4alway from T-m- to A--A,..,,_2/ whence

the existing RAN railway runs to Abidjan. Nedeco gave some consideration toa combined ro-ad-r-aill rout-e but camLe to the conclusiLon that 9 despite a lower

initial investment, such an alternative would entail higher transport costs

1/ More recent data point to a reserve of 12.6 million tons averaging54.5 Mn, but a breakdown of this tonnage by grade was not availableat the time of this report.

2/ Via Dori, a major cattle market. A direct route, bypassing Dori,would be 340 kilometers long.

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per ton-kilometer. A more detailed study of this railway is now beingcarried out under contract to UNDP by Omnium Technique d'Amenagement (OTAM).This covers the detailed alignment, cost and specifications of the first91-kilometer stretch from Ouagadougou to Kaya and a somewhat less detailedstudy of the balance of the railway, including the economic feasibilitv ofa branch from Dori to Niamey in Niger. This entire study which is to befinished by late 1971 or early 1972 should provide a reasonably reliableestimate of the investment required. Estimates of the fixed investmentin the railway (i.e. excluding locomotives and rolling stock) now rangefrom about $24 million to $28 million, though OTAM apparently believes thatthe lower estimate will prove more valid since the alignment will encounterfew topographical difficulties and will not necessitate the construction ofmany bridges.

49. The critical question is whether the costs of production, trans-port and handling will make it possible to achieve an f.o.b. price atAbidjan which, taking into account actual and prospective ore prices, willmake it possible for the eventual mining concern to earn an attractiveprofit and for the Government to obtain a significant amount of revenue.Since the direct employment generated by the mining and transport has beenestimated at only 1,500, the revenue likely to be obtained from the miningoperation should be the principal consideration in Upper Volta's decisionto proceed with the project. True, the railway will also be able to carrysome general cargo and to transport livestock and agricultural producefrom the North. However, this is likely to be a marginal consideration,particularly since the agricultural potential of the area north of Ouaga-dougou is extremely limited.

50. Pending completion of the UNDP feasibility study, prospectivecosts can only be approximately indicated and primarily for the purposeof giving a rough order of magnitude of the various component elements.They will be Riven on the assumption that around 500,000 tons of ore willbe produced and shipped annually, which is generally accepted as the mostfeasible total.

51. The costs per ton of ore f.o.b. rail car at Tambao were original-ly estimated by Nedeco at $9.49 or, with a 10 percent contingency, at$10.44. The composition of this total was as follows:

Development, mining and handling $2.05BRpnficiatinn (water. energy and other) 2.59

Overheads 0.50Intereset- and amortization 1.71

General expenses (sales, etc.) 2.55Extra costs for chemical and/or battery ore 0n09

Total 9.49Contingency 0.95

Total $10.44

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On the basis of more recent evidence, Nedeco may well have overestimated thecost of beneficiation. Little beneficiation is now believed to be necessary.This will reduce the amount of water that will have to be supplied essenr:ial-ly to that for potable water. Moreover, current hydrological investigationsare expected to confirm that water can be obtained from underground sourcesinstead of by a long pipeline from the Niger River as originally envisaged,because a limestone aquifer discovered near Oursi apparently extends toTambao. Tentatively, beneficiation costs may be reduced by $1 per ton.AssumLng that all the other cost components remain valid, the cost f.o.b.rail car would be around $9.50 per ton.

52. Rail transport costs would consist of (1) the operating costsof the railway per ton of ore carried over the whole length of the railwayfrom Tambao to the 'Vridi port of Abidjan, and (2) the cost per ton of in-terest and amortization on the new portion of the railway.

53. The RAN indicated to the Voltaic Government in 1968 that it wasprepared to haul ore at a marginal operating cost of CFAF 2,100 per ton($8.40).l/ While there is some question whether RAN will be nrenared toadhere to this figure, it has been retained for the purpose of this roughcalculation. Tt shoiild hp noted, hnweveur that thi4 does not nrnovde forinterest and amortization of the ore wagons and their maintenance, both ofwhich will hp at thp expenQe nf the mining company. Thoe r_trrpnt UTNDP pro-ject director has estimated these items at $0.38 and $0.33 per ton re-snpert1vply. rais4ng the total os~t to $9.11 prtn

54. The intereat and amnvrnt4n chvar n thle f4,rbA lrnwomtm.t in

the new railway that would have to be charged per ton will depend on (1)the cost of the inVest ment, 4- /eLes rate an d flC #./ -ICd-

amortization. Based on level annual combined interest and amortizationpaytrnOts -cot- per ton under various al ternat ives would b1 e approxi--.-tas follows (in all cases assuming an annual ore volume of 500,000 tons):

Rail Investment of $24 million Rail Investment of $28 mi.llionAmnortizationi of Am.ortzti~on4C of

20yrs. 40yrs. 20yrs. 40yrs.In.terest at 6% $4.18 $3.19 $4.88 $3.72Interest at 7% $4.53 $3.60 $5.28 $4.20

l/ Here as elsewhere prices or costs in CFA francs have been convertedaLiL the roundAedu rate ofCF 250 qc = $1.00, b ecause they were fixedbefore L he part:ial Levaluation of the CFA franc in August -1969

before the partial devaluation of the CFA franc in August 1969.

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55. The bearing of the interest rate and the period of amortizationon costs is thus readily evident. In particular, doubling the amortiza-tion period would reduce costs per ton by approximately $1. Whether thiscan be achieved depends on the outcome of investigations into the economicutilization of the carbonate deposits. If these deposits can be economical-ly beneficiated, or if the carbonate can be sold as carbonate at attractiveprices tor direct use in the metallurgical industry (there is some evidencethat in some cases carbonate is now used in blast furnaces without trans-formation), a 40-year period of amortization should prove feasible.

56. Railway interest and amortization charges per ton of ore couldalso be reduced if, in addition to marginal quantities of non-mineralcommodities, other ores could be transported over the new railway. Forthis reason a current UNDP project (UPV6) is making additional miningstudies in the areas that could be served by the new railway, includingthe Tin Edia deposit already mentioned; and BRGM is, as previously in-dicated, surveying the porphyric copper-molybdenum deposit in the Kenyadistrict. Of relevance also is another UNDP minerals project which isexploring another porphyric copper-molybdenum deposit near Kourki inNiger, 40 kilometers from Tambao. Hypothetical speculations regardingthe outcome of these investigations are fruitless. However, it is expect-ed that sometime in 1972 a reasonably reliable evaluation of the prospectsof commercial exploitation of both the Kaya and Kourki deposits will bepossible. If considerable quantities of ore can be mined at either orboth these locations, this would presumably have an important bearing onthe costs and benefits of developing and transporting the Tambao ore.

57. Consideration has also been given to the possibility of trans-porting over the new railway cement from a new plant that could be es-tablished in the North on the basis of limestone deposits found at TinHrassan. Such a plant, however, would even at a minimum annual capacityof 70,000 tons, considerably exceed Upper Volta's consumption of 30,000tons and would therefore have to compete in the export market of thecoastal countries which are likely to be more economically served by aprojected plant in Togo. A cement plant constructed in Niger has ex-perienced considerable difficulties in view of the limited market forits output.

58. Without taking into account the possibiiity or transportingother non-manganese ores or of extending the railway amortization periodto 40 years, the cost of Tambao ore f.o.b. Abidjan could be roughly esti-mated as follows (per MT):

Production, administration and overhead costs $9.50Transnort costs (exyluding interest and amortization) 9q10Interest and amortization ($24 million over 20 yrs)

on no rAilw U-5E

6 percent 4.18(7 percent) (453)

Storage and shiploading at Vridi port, Abidjan 0.55

Total 23.33(23.78)

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It should again be emphasized, however, that this figure of around $23 perton is only indicative and that it is possible that the favorable outcomeof current investigations may reduce it.

59. The other crucial element in the equation is the price at whichit will be possible to sell the Tambao ore f.o.b. Abidjan. Although theTambao deposits contain a large amount of ore of chemical and batterygrade, all but a small quantity will presumably have to be sold formetallurgical purposes. since the chemical and drv-battery industriesaccount for only about 5 percent of total consumption. In recent yearsthe prices of metallurgical grades have fallen sharplyv apparently inlarge part because substantial new supplies have been opened up. Unlessprices rise conRiderablv in the future ore costs can be sianificantly re-duced, it is unlikely that Tambao ore will be able to compete on thewnrlcI markPts

60. fiyen thse txpnaa of ore nt Tnmbhan it hba hben ostimAtPd that

the proportion of sales at different grades would be as follows: 17 per-cent with a manganese content of 46 perce.nt (stAndA meatalluirgical raude)

32 percent with 51 percent manganese; and 51 percent with 57 percent man--ocyanee A Te p e t w h t…h-c._a i-4n .- O 9 o QI- A ̂ ,1A . 1 n I e

are difficult to determine, particularly since most manganese ore is soldon long--term contract or is prodiued by "capt4ive" mines beloning to con-suming companies. The spot price of 46 percent manganese ore in the USduring July 1970 was approximately 50 per unit of manganese content perlong ton, equivalent to $22.64 per metric ton. If it may be reasonablysa--,eA thart 51 -- tcnt m-n--a-ne o- -n-d 57 perc-nt ---n.,nn ore car

fetch prices respectively 20 percent and 40 percent higher (or $27.17and .3J1. U70 SC. anA maS. 4me freigbht ch.arges range bC-etlween $-5- aznA 4. per. t.on,the composite f.o.b. price of Tambao ore f.o.b. Abidjan would be approximatelyas fol-lows:

Per.ienagc of rade s.ipped Tr-ice f~.o.b. U4 4bida Total~ 04. ~0Sfl- 015cA 0 11~pe= E A.L A.. L. U M1LJ±IL%JCLI J. L. 1.0.5

(in US$) (in US$)117%' 1A.6-7.A4 282.88-299.8832% 21.17-22.17 677.74-709.4451 'Y7 70-26. 70 13A 107A-1, 3Il 7

Composite price for 100 tons 2,271.32-2,371.02Composite price per tor, 227 1 -23.71

,.III..u, on1 ,.e UasLs. jo.L pL ces curen. .Ln mL±U L71U UL wuu LU LLIGL 8.1

composite price at which Tambao ore could be sold f.o.b. Abidjan wouldabloul equal Ile cost ofL such ore L.o.u. Auudjan without allowing for anyprofit to the mining company or revenue to the Voltaic Government.

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61. Manganese prices may, of course, rise again. Much will dependon the evolution of steel demand and the availabilitv of manganese oresfrom other sources. While low manganese prices may force out marginalproducers, J/ other mining companies such as the Groote Eylandt MiningCompany in Australia are still increasing their capacity. It is alsopossible that with even a modest rise in prices some existing mines willfind it profitable to expand their output when they can do so with com-paratively little supplemental investment.

62. In the last analysis the exploitation of the Tambao depositswill depend on the willingness of a qualified foreign concern to invest.Union Carbide has displayed some interest in the past, but is apparentlynot prepared to invest on the basis of current market conditions. Whenall of the investigations essential to a determination of the appropriatecost of transport have been completed in Upper Volta, the best coursefor the Government would presumably be to communicate the findings tocompanies potentially interested in mining the ore. Such companies willthen be able to determine their course in the light of the cost of trans-port and of their own appraisal of production costs and market prospects.However, since the Voltaic Government will have to pledge its limitedcredit to borrow a considerable amount of money for the railway, it willneed in its own interest to make sure that the exploitation of the Tambaodeposits will take place on terms giving it substantial revenues.

Rural Development

The Population Problem

63. In the future the population problem, broadly conceived must bethe central preoccupation of any development effort. As yet the Governmentis insufficiently aware of the importance of this problem. There is nodisposition to consider family planning as a long-run necessity. It mustbe recognized that many factors make initiation of such a program extreme-ly difficult. In traditional African society the prestige and influenceof kinship groups is considered to depend largely on their size. On thetribal plane, the dominant Mossi tribe which inhabits the most denselypopulated area of Upper Volta, may well feel its relative position threaten-ed by population control measures. Moreover, in the rural areas familiesattach great importance to a large number of children because survivingmale children are the only source of support in old age. Perhans mostimportant of all, large families are considered essential to agriculturalproduction. narticularly considering the lack of eauinment in Voltaic

1/ The Gompagnie de Mokta which has bepn onerating a mannoanep mine atGrand Lahou in the Ivory Coast is reported to have closed down aftereXn.rtQ fall rnnticos from 15S618 mptrir tons in 19Q6 tn 71,021metric tons in 1969.

- 27 -

agriculture. W[file! Lamifly agricultur1al labUoL lb ULlUerL oyeIUdU UL eVenLA

unemployed during most of the year, there is hardly enough labor avail-able at critica. times in the agricultural season, especially at tne tiMeof sowing, which must be timely and compressed in a brief period, anclagain when weeding must be done.

64. While family planning cannot be neglected forever, populationpressures over t:he foreseeable future are likely to be relieved only byirnternal. and external migration and by improvements in agricultural andlivestock output:. The first step is to obtain a more accurate conceptionof the magnitude and nature of the demographic problem. A new demographicsurvey is urgently needed to determine what changes in the rate of growthand distribution of population have occurred since the last sample censusof 1960-61. This must be coupled with a survey of migration to ascertainthie trends in irnternal and external migration over the last decade and theextent to which such migration has met, or failed to meet the problem.Up-to-date information must be obtained on the magnitude, causes, duration,origin and destination of both internal and external migration flows.. Asciciological inquiry should seek to illuminate the factors that determinearLd limit spontaneous internal migration both in the "originating" and inthe "receiving" areas. It is unfortunate that attempts to obtain thesedata so basic to future planning have commanded no external support, al-th,ough the proposed demographic survey would require only around $300,000in foreign aid.

65. A new demographic census could also provide the basis for asample agricultural census which would provide the necessary informat:ionon agricultural and livestock production, the size of holdings, the areasdevoted to cultivation, grazing and fallow, and the equipment available..It would provide more reliable information for planning programs forvarious areas and a basis for a much more accurate assessment of futureprogress.

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Promotion of Internal Migration and Settlement

66. In the future, labor migration to the Ivory Coast and Ghana isunlikely to provide as much relief of overpopulation as in the past. With-in the last year growing urban unemployment in both these countries hasproduced measures directed against foreign workers. Fortunately, the vastmajority of Voltaic laborers work in agriculture and other occupationswhere the supply of local workers is short. In fact, a recent Bank studyof the Ivory Coast indicates that agricultural development targets inthat country are unlikely to be achieved without additional Voltaic labor.Similarly, a considerable increase in cocoa production in Ghana probablvdepends on a continued influx of Voltaic migrants. So far the number ofVoltaics actuallv expelled bv both countries does not aDpear to haveexceeded a few thousand. Nevertheless, net Voltaic migration to the citieswhich may have absorbed somewhat over 20 percent of the labor migrants inthe Ivory Cost and perhaps 10 percent in Ghana, is unlikely to expand; andthe rate at which total migration has been increasing in the nast may welldiminish significantly.

67. An acceleration of internal migration is therefore essential forthe mnst densely nonulated areas of Upper Volta, all the more because thepossibilities of raising production in such areas are extremely limited.For ex^mple; the noorlv endowed central Mossi region has few notentialitiesApart from developing rice and garden produce in restricted and scatteredareas where there are gond soils and water for irrigatinn, the only pos-

sibility appears to be to disseminate certain varieties of higher-yieldingimported sorghts whose a.^^pntabilitv by the nonulation has not vet beentested. Past experience has shown that the Mossi region is not well suitedto the cultivation of cotton, Upper Volt,a's princial cash vrop. Voliimn II

of this report points out (paragraph 183) that if average population densityi4s r.ot to exceed the desirable m-aximm of 40 per .vm2 some i,300,000 f,-m

dwellers will have to be resettled on nearly 150,000 farms over the period-1 a07Ynl1 000.LJ2IV '.J*~ .J W .

6o8. "".e prilnclpal directions of internal migration anA resettlementshould be toward the relatively empty Fada N'Gourma region in the Southeastand tbne rivez vall'-eys where gooA land 4s still1 available. It. would3 berean. LA.C 04ACOWCC

5S*t 0SA* - ar.LUaALC ALL W.U± ue pre-

mature and rather costly to establish and staff a Regional DevelopmentOffice for Fzda N'Gou,ma anA carry out a full=scale eeoretpormLJ.A.L.. jL L% GU LC& ACL - AUL CL.. t.&Ly. 'JL A. L ~C C L= UAC-V=.LVPJtILLLA4. PLogrtUH

there. Serious consideration should be given, however, to developing aprIJditL I.LLJ..L.Ly LUL LeC mUUcLl IUmrC UCLLeCsLy populateU anlU aUJoinLLing Noupe'.d

region whence migration to Fada N'Gourma can be encouraged through a gradualextensLon ofL tlhle prograu, coupledu with thle construction of pen tion r-ads.

The French Government has expressed some interest in providing assistanceror such a program.

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69. The settlement of river valleys, which offers the most promise,is contingent on an, effective campaign to eradicate Simulium damnosum, thefly that is the vector of onchocerciasis. Pilot programs, particularly theone financed in recent years by FED in an area covering the southwesternpart of Upper Volta! and adjoining parts of Mali and Ivory Coast, havedemonstrated that the vector can be effectively controlled by treating itsbreeding sites with insecticides. WHO is to commence, early in 1971, afield. study which will last about a year and which, it is hoped, willlead to the formulation of an effective program for combatting onchocer--ciasis in an area embracing parts of Niger, Mali, Ivory Coast, UpperVolta., Ghana, Togo and Dahomey. An essential part of this program shouldbe the development and re-settlement of river valleys where the vectorwill have been eradicated. For Upper Volta this means, above all, thevalleys of the Red and White Volta Rivers. Of the two, the White VoltaRiver Valley is entitled to prior attention because it has the bettersoils -- some 160,000 hectares of good, and 300,000 hectares of fairsoils; -- and there are, in the immediate vicinity of the valley denselypopulated areas inhabited by the Bissa and Mossi tribes who are mostlikely to take advantage of the settlement opportunities. It is thereforeimportant that a pre-investment study to determine the best ways and thecost of developing this river valley be promptly undertaken. In Annex 5of Volume II the scope and nature of this study is set forth in some de-tail. To avoid excessive costs, resettlement should as far as possible tospont:aneous and the Government should provide only the minimum guidanceand infrastructure essential for effective development of the valley'spotential.

Regional Development

70. An accelerated increase in production and employment in thealready settled areas should, of course, be a major objective of develop--ment., Detailed proposals in the fields of agricultural and livestockdevelopment, and in the related field of rural education and trainingare made in Vols. II, III and IV of this report.

71. It has a:Lready been noted that the Regional Development Offices(ORD!,), financed largely by foreign aid and directed, with one exception,by foreign firms, have provided the framework for the develonment of theruraL areas. The seven functioning ORDs-Y are listed below, togetherwith information on1 the agency or firm responsible and the princinalsource of financing:

1/ The boundaries of existing and projected ORDs are shown on a mapprefacing this volume.

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Volta Noire (Black Volta or Dedougou) - agency, CFDT; financing, FAC.

OuaRadougou - agency. formerly SATEC1/ but now the Voltaic G,overnmpnt-financing, FAC.

Koudougou - agency SATEC; financing, FAC.

Kava - agency, CFDT; financing, FAC.

Banfora - agency, SOTESA;2/ financing, FED.

Yatenga - agency, BDPA;I/ financing, FED.

Gaoua - agency, CIDR;4' financing, Voltaic budget.

The available, but somewhat inadequate, data on the progress of productionand marketing in these ORDs are given in Annex 3 of Volume II.

72. While the ORDs have done much useful work, there are a numberof serious deficiencies which should progressively be corrected:

(i) Organization and staffing. The planning, supervision andevaluation of ORD programs at the central government levelby the Directorate of Rural Development of the Ministryof Agriculture and Animal Industries is inadequate. Coor-dination between the directors of the ORDs and the agentsof the various national services is deficient. The person-nel of the ORDs is generally too top-heavy in that the numberof farm-level extension workers in relation to superior per-sonnel is too low. Inadequate attention has been paid to theassignment and training of Voltaic counterparts to foreignpersonnel. Only BDPA and CIDR have Voltaic counterparts forall their foreign personnel. Extension services are likelyto remain excessively expensive so long as efforts to replaceforeign personnel are not accelerated. Finally, farm-levelextension staff often does not have sufficient practicalagricultural knowledge. Experience indicates that in-servicetraining of this staff on the spot yields better results thanformal agricultural education.

(ii) ScoDe of activities. The ORDs have never realized their ori-ginal objective of serving as agencies of integrated ruraldevelonment. They are almost entirely devoted simply to theprovision of agricultural extension and the related creditand marketing facilities. With one or two exceptions little

1/ Societe d'Assistance Technique et de Credit Social d'Outremer.2/ Societe d'Assistance Technique pour le Developpement Agricole.3/ Bureau pour le Developpement de la Production Agricole.4/ Compagnie Internationale de Developpement Rural.

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or no attention has been given to livestock even thoughlivestock is very important to the economy, and the vastmajority of cattle and small stock are found within theexisting CORDs. Too little use is made of animal-drawn im-plements, partly due to deficiencies in equipment and in thetraining cf both men and animals. In general, little efforthas been uLade to diversify production. Problems of infra-structure such as the improvement of roads, tracks and bridgeshave been largely neglected. Efforts to improve rural health,which often adversely affects production, have been inadequate,although some projects for the development of village wellshatve made a useful contribution.

(iii) Involvement of farmers. In general, too much emphasis is laidon "directing" farmers and too little on involving them moredirectly in the development process. A greater effort mustbe made to develop self-reliant farmers capable of managingtheiy own affairs, of participating in cooperative actionsuch as inL the supply of goods and the marketing of produce.The CIDR has been virtually the only agency making a seriouseffort in this field. For its extension work it relies on thepart-time activities of local farmers who must demonstrate modernfarming methods on their own holdings and who are supposed toenioy in their own communities a standing which enables themto exercise some leadership. In extension work more stressshould be placed on what the French call "animation", i.e.activities more directly focussed on creating a desire forprogress and an awareness of onoortunities for improvement.This type of activity canl best be carried out by "animateurs"selected from the local community and given in-service trainingcomplemented by short, but more formal, courses of instruction.In Volume IV it is suggested that consideration be given tothe establishment of a corps of such "animateurs" which wouldparallel and be supported by the more technically-orientedand technically trained agricultural extension service. Sucha corps could be phased out after a period of ten years whenfarmers will be much more disposed to accept innovations thantoday. Volume III also draws attention tn the need to develonas specia]L "pastoral" extension service for the proposed ORD duSahel.

DMvprs1ifirat1in of ORD Prnornmq

73- Thpr,- There a Qesriouis ecolonic-1 1im.it-a to- t-he Adivwrifieat-ion ofproduction. The principal cash crop for which considerable areas in UpperVolta are suitable :Ls cotton. There will undoubtedly need to be continuedemphasis on expanding the output of this crop, not only because farmersare fiinA4nn it- 4nc-4inl- attractive, but also because it will generate

the revenues which will make agricultural extension work increasinglyself-supporting. The proposed IDA project for the deep -et of cotton

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production in the Black Volta ORD and in the newly established Bobo-Dioulasso ORD is therefore of key importance. It is expected to raisethe production of seed cotton, which for all of Upper Volta totaled 36,250tons in 1969/70, by about 24,000 tons both by expanding the area undercultivation and by increasing yields. It would provide funds for expan-sion of the necessary extension services, credit for the purchase ofimplements, insecticides and fertilizers, expansion of ginning capacity,some road improvement, etc. Building on the work that has already beendone to develop cotton cultivation, the project would have a very attractiverate of economic return. There are opportunities for the further develop-ment of this crop also elsewhere in Upper Volta. Volume II suggests thatthe overall target for 1980 might be 120,000 tons of seed cotton.

74. In the end, however, care will have to be taken to avoid ex-clusive reliance on one cash crop which in the long run will undoubtedlyexperience a decline in world market prices. More emphasis is needed onincreasing the yield of the principal food grains. The expansion of thearea cultivated to cotton by each farmer is in itself dependent not onlyon the more effective use of animal-drawn implements, but above all onan improvement in sorghum and millet yields. It has already been notedthat seed treatment and the residual effects of fertilizer applicationsto cotton do have some beneficial effects on food grain yields. However,it is also important, as is pointed out in Volume II, to initiate effortsto multiply and disseminate certain higher-yielding imported varieties ofsorghum that have already been tested on the Saria agricultural station.Such efforts, if successful, could release more land for cash crops andmight even eventually create a surplus of sorghum available for supple-mentarv feedina of livestock.

75. The production of rice and, to a minor extent, of market gardenproduce, can be expanded. For market gardening the size of the domesticm-r1ept and that in nearbv countries is a severe limitation. For naddvyof which output is probably around 35,000 tons, the outlook is more pro-mising because nearly 71000 tnns (in terms of naddvy are imported and con-sumption is increasing rather rapidly. It should be feasible to doubleproduction durirg the seventies. The Chinese Government (Taiwann) hasprovided technical assistance and some financial aid for small riceschemes and iss deopfing -a-somehnat larger sche-me at Kui, nar robno-

Dioulasso. While these schemes have been costly, they have produced highyel,As with intensive methods. The- illustrate the potentialities even

though it remains to be seen whether the yields can be maintained as and-whtIenr Chinese expert-s are wi&thdraw... There are quite a l-arge number ofscattered bottom lands, usually of limited area, as well as areas belowexisting dams, OwhicL cart e developed for rice growing. The …Ission be-

lieves that many small irrigation projects can be initiated for the cul-tivation of rice and other crops under irr'gation and that tiese need notentail high costs as long as there is no insistence on complete watercontrol and farmers participate in the work necessary to their realization.

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/0. A project ror a cane planaLtion and a bugaL Uati near B.forain tthe Southwest has been under active study. It would produce initially15,000 tons, with possible subsequent extensions to 20,000, 25,000 and30,000 tons. Part of the output would be marketed in the northern IvoryCoast. Experiments have indicated that excelient yieids can be obtainedunder irrigation. Initial plantings of 1,500 hectares are planned foreach of the years 1971 and 1972. While the final project is not yetready, the indications are that sugar could be produced and sold at aprice below the cost of sugar now imported under the terms of the OCAMsugar agreement. However, the present plans which would make the Govern-ment responsible for delivering the necessary irrigation water free ofcharge at the border of the plantation are hardly justified.

77. One of the most useful ways of diversifying and raising theoutput of existing Voltaic farms is to bring about, in the long run, aprogressive association of livestock raising and crop cultivation. Thiswill admittedly be a long and difficult process. Farmers are not accustomedto keeping livestock themselves, but entrust them to traditional herdsmensuch as the Peuls (Fulani). Even the use of animal-drawn implements hasmade but slow progress; as of 1969 there were only around 14,000 draftanimals, including some 8,000 donkeys which, owing to their low draftpower, are of limited use, except for working very light soils and fordrawing carts. The methods of training animals and of men in the handlingof animal-drawn implements are so inadequate that the advantages of usingdrafl: animals are seldom realized. The draft animals receive little or nohealt:h care and no supplementary feeding. Equipment is often ill-adaptedto the requirements and poorly maintained. Volume IV of this report pointsout that there are efficient methods of training that can be applied anddescribes an interesting and valuable scheme for the training of ruralartisans that is being carried out in Ouagadougou under the auspices of theILO. In addition, it suggests that the establishment of a center for test-ing and adapting various types of animal-drawn equipment and hand toolsshould be considered in order to improve the poor implements and tools withlwhichi Voltaic farmers now have to work. In the future the ORDs should cer-tainly pay more attention to the training of both man and beast in the useof equipmenit, to the installation of artisans essential to the maintenanceof implement and to the proper care and feeding of animals.

78. However, the integration of livestock into farming should notbe developed simply for the purpose of providing draft animals. As isset iorth in Volume III, farmers should gradually be accustomed to keepingone or two animals for fattening. Young animals should be acquired.trained and used for draft and then fattened for slaughter. This willentail the growing and collection of fodder (Stylosanthes gracilis orBracharia raziziensis), the purchase of some feed concentrates (only forthe cattle being fattened); and; Derhaps eventually; the use of surplusgrairn for feeding if and when the introduction of higher yielding sorghumis successful. Tt will be n eessarv to effprt some changes in land useso as to delimit consolidated areas on a village basis for crops on theone hancd *nd for grazing ani t-he growlng o,f fottdd-er rrons on t-he ontherhand. Collective herding of village livestock will be necessary. All

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this will be far from easy. A start in this direction can be made, how-ever, uy ±launch'ing a few piot projects on a village basis in eacn ORD,especially the Volta Noire ORD.

Broadening the Scope of ORD Operations

79. Progress should gradually be made in realizing the original con-cept of the ORD as an instrumentality for the Dromotion of intearated ruraldevelopment. This involves broadening the activities to include not onlya wider range of crops and measures for improvement of animal husbandry;but also measures in complementary fields such as social and transportinfrastructure. It is important that this be done in a manner that wouldinvolve the rural people as much as possible in their own development. Itwas the imoression of the Mission that within the existing ORDs there were

many small projects which would contribute directly or indirectly to produc-tion; which reflent the interest of the local nonpulation hbut which are nnt-

carried out because the necessary assistance and and funds are not available.Among such rchemeq are (1) small irrivatinn nrojecrtc (2) nilnt villavp

schemes for the integration of livestock with agriculture, (3) village wells,nartircularlv where nnlltited water suinnlv ha led to dphilitating narasiti-

infections such as guinea worm in the Southwest, (4) construction and repairof small bridges and short tracks to facilitate marketing; (5) the estahlish-

ment of rural artisan workshops and animal traction training centers, and(6) the construrtinn nf small stnrage and supply depors

80. Budget or foreign aid resourAcs a arsldm ayila bl to finance

individual small projects of this kind, wlhich in the aggregate could even-tually make a substant 4il contribition to broader and more effectlve OPTprograms. Moreover, in drawing up annual budgets or pluri-annual plans, itis difficult to -Wticipate the needs for projects of this type. The Mission

considers that the best means of providing for their financing would be toentrust a special4 fund for this purpose to thL.i*e Na t 4onal DevelopmLent. Bank.

This is an autonomous, reasonably well-managed institution for which the FrenchCaisse CLentrale lUe (Cooperation Econo.mique h.as provided bothL.1 so.,.e capitalL andsome expert personnel. It would be in a better position than an ordinarygoveL1rmLent agency to aLpply obJective criLtleriLa in assessing tlle soundUness of

the projects proposed for financing. The fund made available for financingsuchi project should be kept entiLre'Ly separate Lfrom BNID's wn fLunds should

be administered by the BND in the capacity of a trustee.

81. According to the Mission's conception, the fund would be used onlyfor projects proposed through the directors of the ORDs. No proJect would befinanced unless the local population were identified with it in the sense ofbeing prepared to make some contribution, either in money, labor or materials,to its realization. Financing would be made available to local rural govern-ments, village groups or other groups of beneficiaries. The terms would needto be flexible, adjusted to the type of the project and the repayment capacityof the recipients. There could be various combinations of grants and loans.The loan component could be high when, as in the case of small irrigationschemes, the beneficiaries would profit from a direct increase in output.Financing of pilot schemes with a large element of risk and experimentation,and of road and bridge repair, might, however, be largely or wholly on a grantbasis.

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82. Im1p]menztatinn of surh a nronosal would necessitate some strength-ening of the BND staff and, above all, the close cooperation of the variousnatfonal servires concernpd to Pnqsrp that nrniert pronosals would beproperly worked out and that their execution would be supervised. The wholenrnrino.-: shouldnir h. concivoxyed as a pilot- scheme. (n.ly arnnll fuind shnouldi

therefore be originally provided, with the understanding that it would beSUlpllmntA if experie - ,--Justified this. O ocedures and methodswould undoubtedly have to be revised at various times in the light of prac-

Developm.ent of thle Li'vestock- Sector

83. The condition of the livestock sector of the Voltaic economy isserious. The growing incidence of disease, overgrazing of parts of thecount-ry's range landi's, 'low takle-off rates a the general poor proAuct ty

of herds all point to this. Data presented in Volume III indicate tha.tunless the deterioration 's arrested and reversed Upper Volta may cease tobe a net exporter of livestock. Apart from transiting foreign livestock,Upper Volta's own net exports in 1966-69 probably averaged no more than

58,000 head of cattle and 190,000 sheep and goats after taking into accountimported animals incorporated into Voltaic nerds and rlocks.

84. Tne main features of any livestock program should be the following:

(i) Creation of a special livestock ORD for the North (ORD du Sahel).This ORD would comprise the Sahelian north which is almost entirelydevoted to livestock raising and accounts for 15 percent of tnecattle and 39 percent of the sheep and goats. The very long-termobjective would be to make this region primarily a breeding areafrom which young males or oxen would go to the South for fattening.The more immediate objectives, however, would be (1) to developand safeguard unpolluted water supplies for cattle, (2) to managewatering points so as to enforce rotational grazing, (3) toorganize livestock owners as far as possible for collective actionin the use of range land and in marketing, (4) to facilitate diseasecontrol, (5) to disseminate improved breeds such as the Azawrackcattle and the Maradi goat which have been introduced from Niger,and (6) to provide extension services for better livestock manage-ment. A pre-feasibility study looking toward the establishmentof this ORD was initiated in 1970 with FAC financing by SEDES andSCET/ Cooperation following completion of a general livestockstudy by the latter. An agrostological survey of the region hasalready been completed; and a promising new aquifer recently dis-covered in the Beli River Valley has been tested.

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(ii) A disease control campaign. Measures designed to combat a specificdisease such as bovine pleuropneumonia, which has become increasing-ly prevalent, would probably not be sufficiently justified. How-ever, a properly minuted and more comprehensive campaign designedto arrest the recrudescence of rinderpest, to deal with the risingincidence of pleuropneumonia and other diseases and to treat younganimals against external and internal parasites would have muchgreater benefits in relation to costs. Preliminary and admittedlysomewhat hypothetical calculations presented in Volume IIIindicate that the cost of such a multi-faceted campaign would befar exceeded by the benefits in terms of increases in the take-off and weight of animals. The presentation of animals forvaccination and treatment could also be used as an opportunityfor providing advice on livestock husbandry and for distributingfeedstuffs and saltlicks. The livestock center at Markoye inthe North has distributed feed and saltlicks on a limited scaleand found livestock owners rather receptive. It should be noted,however, that the feasibility of a comprehensive disease controlcampaign hinges on coordinate and cooperative action by Mali andNiger. This might be worked out within the framework of themeasures for the development of a common market for livestock andmeat which were initiated at the Niamey Conference of February1970 and which includes the Entente countries, Mali and Ghana.

(iii) Fattening of cattle. In principle, cattle could be fattened onranches or on feed-lots, apart from individual farms. The studyof a commercial ranch project near Oursi in the North has demons-trated that commercial ranches within the area would hardly befeasible because sufficient land cannot be found without displac-ing large numbers of traditional herders. A German team hasstudied the possibility of a ranch for fattening Zebu cattle inthe Banfora region of the Southwest, but, though the results ofthis study are not yet known, there is some question whether thenrevalenre of heart water and trvnanosomiasis and the danger ofbush encroachment would make this project practicable. The estab-lichment of a mixpd ranrh for the hrppdino and fattening of

trypano-resistant Baoule and Mere cattle may prove more promising.The naao4h 14tu nf ruvplnnino fape-Int fnttanina nnprntionQ nenrBanfora and Bobo-Dioulasso must be carefully studied. The expe-rlence of IEMT 1/ n4 Se.negal, TE,or Conact andr Madagcycr-ar indiaefa

the potentiality of such operations, although their economics willh ave to b .e careflully examined. By-products for the production of

animal feed are available in some quantity -- groundnut and cottononsd …e t eedA, bran and other illing residues, brewery

dregs, and, if the Banfora sugar project is carried out, cane tipsanda moulasses. Th e water eventually supplied to tIhe B.fanora cane

1/ Institut d'Elevage et de Medecine Veterinaire des Pays Tropicaux.

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planntatinr coiild als80 be iiud to grow irrigAted fodder for useon feed-lots. IEMVT has undertaken, in 1970, a study of thesu pply, cost and nutritionsl valiiu nf all sc1th products aR afiLrst step in surveying the merits of establishing an animalfeedl nl!r.t:. Mea.nt.71ii1 trinal to tsct rlhe feasibilit-y of inten.-sive fattening should be undertaken at the Banankeledaga live-stock stat:ion aid- at- TPAT't Farak R. -xperimet-1 station

under IEMFT supervision and guidance.

(iv) Marketing facilities. Properly equipped and demarcated livestockroutes , olLplemented by lholdl i ng grounds at thS- L.e .teUminal points, I

should be developed in order to reduce losses of livestock andenisure th1-eir arrival in gooA condition at the abattoirs of 0-p-5

dougou and Bobo-Dioulasso or at the points of export by rail oruLck.. s%,C 1/% / 't.L *- ULCALL LLCw PLIPJLtU LWU )LUJCL. ILIL LVD U '

routes in the East which will be financed by FAC and which shouldprovide experience usefu'l in the *i-anageUerit aI[u operatiLon of

other routes. Preliminary evidence indicates that livestocktraders are probably prepared to pay for the services provided onsuch routes. Meanwhile, plans for routes traversing the centraland westeirn parts of the country snould De promptly maue.Measures are also necessary to improve bush slaughter and thepreparation and collection of hides and skins for the market.

(v) Coordinat:ion and management. A comprehensive livestock programwill require. coordination of the activities of a number ofgovernment departments inciuding the Directorate ror Rurai Develop-ment, the Livestock and Animal Industries Service and the WaterResources and Rural Equipment Service. The management of tne OuDdu Sahel, of livestock routes and abattoirs might best be entrustedto an autonomous company. To ensure effective coordination it issuggested in Volume III that a Superior Livestock Council beestablished.

Rural Education and Training

85. Volume IV presents a number of proposals in the field ofeducation and training. While this volume covers the whole field, hereonly a few of the more important conclusions and recommendations which relateto rural development and have not yet been mentioned will be set forth. Apoor country like Upper Volta, which already devotes 15 percent of itsordinary budget to education despite a relatively low school attendance,cannot afford to expand its system of formal education very rapidly. Primaryemphasis will have to be placed on types of education that are well suitedto rural requirements and on adult education through properly organized andstaffed rural extension services.

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86. In the rural areas, the Gover.menLt [as indeed concentrated onexpanding enrollment in especially designed rural education centers ratherthan in ordirnary primary schools.J The basic conception of these centersappears sound. They are intended to provide a three-year course combiningpractical ana academic training for boys and girls in the 14-17 year agegroup in such a way that they can be more effectively integrated into rurallife. In practice, however, they have fallen far short of expectations.There has been considerable pressure to lower the age of enrollment and makethem more like the usual primary schools. Most of the boys leaving thesecenters have not gone to work on their own or on their family farms, buthave become labor migrants abroad. Part of the difficulty is due to the factthat the "graduates" are too young to obtain their own farms. Severalschemes devised to prolong their training have not been very successfuleither. The paramount difficulty lies in the poor quality of training andeducation afforded by these centers. There are many deticiencies in thecontent and orientation of the practical training, the preparation andsupervision of teachers, methods of instruction, the equipment and size ofthe centers' farms, and the coordination of agricultural extension and thecenters. In Volume IV a number of recommendations to correct these defi-ciencies are presented in the expectation that the graduates of these centerswill find useful employment if their training is really sound and practical.Suggestions for introducing methods for rapid teaching of French or, alterna-tively, for teaching in major vernacular languages are also made. Inaddition, the importance of broadening the opportunities open to both theteachers and graduates of these centers is emphasized.

0/. There are ulany inUstituLL U ULan ranizaLtLLIos LLI Upper VULLa

concerned with various types of training. Their improvement, coordinationand supervision is an urgent problem. In Vol-ume IV the suggestion is madethat serious consideration be given to the establishment of a NationalInstitute for Vocational Training (Institut National Voltaique pour la

Formation Professionnelle). Such an institute could be charged, incollaboration with existing organizations, with perfecting methous oftraining on the farm, in the shop and factory, and in the extension services.it might determine in detail the actual training requirements in variousfields, the duration and methods of training and suitably complement thework already being carried out in this field.

Foreign Aid and its Terms

88. In view of all the constraints and problems besetting Upper Volta,progress will undoubtedly be slow. However, the foundations for somewhatmore rapid growth in the future have been laid. In view of the uncertain-ties affecting the impact of past and future development expenditures andthe receptivity of the population to change, it is difficult to estimate thefuture growth rate. One may hazard the guess that in the years immediatelyahead it will be around 4 percent, with a somewhat higher rate for themonetized sector of the economy.

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89. In the recent past Upper Volta has received foreign aid, inciudingtechnical assistance, amounting to the equivalent of around $20 million peryear. The future volume of aid will depend primarily on the accelerationof project preparation. Considerable work is proceeding in this field butmuch remains to be done. It is likely that the need for external financingwill increase gradually. In the livestock field alone the Mission's experthas estimated that supplemental resources of around $35 million will probab-ly be needied over the seventies. There should therefore be opportunitiesfor Bank Group financing, complementing the continuing aid from FED and FAC.It will be necessary, however, for all the agencies involved -- the VoltaicGovernment, FED, FAC, UNDP and the Bank Group -- to coordinate their actionwith respect both to the preparation and to the financing of projects. Thisreport has proposed a number of studies ranging from demographic and migra-tion surveys and a sample agricultural census, which are essential to properplanning, to feasibility studies of particular projects. It is particularlyimpo rtant that decisions regarding these studies be made at an early date.

90. In assisting Upper Volta in the development process, foreignaid institutions slaould also be guided by the following coonsiderations:

(i) Rates of return cannot be expected to be very high.True, it will be possible to find occasional projects witha high yield. The cotton project proposed for IDA financing,for example, has been preceded by considerable developmentalactivity which has created conditions under wh:Lcl-. incremental"inputs" bring about a large net increase in output. However,considering the general poverty of the country and the consider-able efforts that must be devoted to obtain popular acceptanceof the innovations inherent in development, it is clear thatthe marginal returns on development expenditure will be low,particularly if the total benefits and their phasing over timeare realistically assessed. Just what this marginal rate ofreturn is likely to be is difficult to assess and will depend,of course, to a sianificant extent on the amount of resourcesthat will be devoted to development. One may hazard the guessthat it is well below 10 percent.

(ii) The Government can make only a modest contribution to develonmentexpenditures. True, the data in this report indicate that on,the averaQe budget "savings" of CFAF I billion have been achiev-ed in the 3-year period 1967-69. However, these have been obtain-ed at least in nart at the exnense of essential oneratina andmaintenance expenditures; and it is probably unrealistic toexnect that the- ean be maintained.

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(iii) In financing development expenditures, provision must be madefor current operating costs as well as pure investment outlays.Rural development in particular entails substantial currentexpenditures on personnel which cannot all be carried by thebudget.

(iv) By the same token, foreign aid agencies must provide for thefinancing of part of the local costs. The direct foreignexchange content of development programs is likely to be relative-ly small and the local cost component will almost invariablyexceed the proportion of the total cost that the Voltaic Govern-ment can legitimately be asked to bear.

(v) Aid will need to be provided almost entirely in the form ofgrants or on other concessional terms. This is not entirelybecause present debt service is so burdensome. In 1969, thebudget provision for this purpose was equivalent to about 7percent of total budget resources. The 1968 balance of paymentsfigures prepared by BCEAO indicate that external debt service inthat year amounted to only 2.4 percent of export receipts.According to data reported to the IBRD, Upper Volta's externalindebtedness as of the end of 1969 amounted to the equivalent of$23.13 million. Service payments are expected to decline some-what from $1.98 million in 1970 to $1.50 million in 1976. Inthe latter year they will probably equal 4.6 percent of totalexport proceeds. In principle, the future gross capital inflowcould be large enough to enable Upper Volta to contract someindebtedness on ordinary "commercial" terms. However, thelarger the increment in output and resources that must beset aside for debt service, the slower will be the increase inthe deplorably low standard of living of the Voltaic people.In the last analysis, therefore, the argument for aid on grantor concessional terms rests on the poverty of the country andthe need to raise current low income levels as rapidly aspossible.

STATISTICAL APPENDIX *

LIS'T OF' TABLES

T1abl-e I - GRIOSS DOMESTIC PRODUCT (AT MARKET PRICES) 1966

Table II - INFDUSTRIAL PRODUCTION

Tabl.e III - EVOLUTION OF NATIONlAL BUDGET 1961-i965

Table IV - CUMULATIVE REAL GOVER1IHENT DEFICI'T - ElND 1965 AND ENID ]966

Tahil e V - EVOLUTION OF NATIONAL BUDGET 1966-1969

'aIhl o VT - flf)VE.RMfi0'NT BIGMFT 1966-1970

Tabhe V TI - BT;T(E'ET EXPRNTTIUMRS 1 966-1_970

'Pale VI ITTT - 1REA(n0r\N OF BUTDET ETYPF:TrTTTITJRER 1 96Q6 TO 1968

Table TX - ITNDLTET TAX REV.EJ1TNE 1966-1969

Fab].e X - LOAL. GOVERN'ID."T BUDG-ETS

Table Xl - SC)rTAT INSUTTACE enAnTcqrrTTSQ

Table VAI - iTPTT'LU A,rnl CrOMnTArlT0TM O' R7tcITQmITDITr) -XyrDOSrn (-I C o(J )

" V 'Te X3] D IoI.T !. r- 'VDtD'I' 196 C7 CQ fl¶DITD 1 96-C9Ed UA~~ A±J~ ~ Li~U.L.J ~ £.I EIJ" i .I J .7 U - 4 I " ±AIiU L -L 7 J.'7

1 V 7Tit 11 T ITT L' ~K r(90n?ffDC-r-rn ,,T j - vf' T-mvTCJt'r ,-h,ronrv -rr (-I n4c 1 -I n AlaLleA AAIV - VIA.LUU I-IANDJ CUUVI -I_LUN OF Pi L I j1EL -L ;7X (1965-1u9

`a'ble , "' L.-T) r. T C'n;wII r A Tri,mniC ),no' - i ~,C -I n 1-LdIJl AXV - fu,t)I ".iDj -LI I UO lS 19LI-196UU

Th,-bLe XVI - 'H-rGISimR' 3.'0TS - 1 CTA7 DrnIT?N2 1'36''

P'¢ib1. V 1 -1 1T-,n1nr, T T tb E'nTOTMrnl B' Cn k 7 O 1 'I Oi (9 r' Q A-4 \I A v -1- - 1VU L ELj U Di41~L .AJULk IjL.L. L -; JS 'JJ.iI _LI L_)L,JU/

IT ~';r v .r-- tr T )-LI ;nfl rN T~r n0fl T~ n.y flNyrrm-r1T rlT nf r' iTrT n lI lA 1tTC''*

1d UK' A.V.LJ..L - LELwA 'R LEDJ i!A U1lI10 Di ~UJUIqf1j Ur JU 114.IJ1jI4A1'i \yU>±)

-a.KI AIX -J.UrAP Pi-Li O C h OFU F UP A Vi, , I! ESTLKIl.ON 1i70C

oaOl e X - EXTERINAL PUBLIC DEBT OUTSTANDING AS OF DECEMBER "1, 31±0DEBT REPAYABLE IIN FOREIGN CURRENCYr

* i4ableson arriculture, livestock and education are included in Vols. ,I] I and IV o.f this report.

-2-

Table XXI - ESTDhIATED -'FJRTBE SERVICE PAYIMIENTS ON EXTiHRNAL FUbiLIC _D2'311OUTSTANDING INCLUDING UN7DISBURSED AS OF DLCELB.B` 31. lv

Table XXII - MONSTARY SUIWevEA

Table XXIII - NATIONAL DEVELOPI4EIT S4BANK - LOANS WTSTANDING

Table XXI-V - NATIONAL DEVELOPME1NT BANiK - LOANS GRtANTED TO END Si ri3iI '

Table XXV - OXIGIN. DESTINA1'TION AND FI7IANCiNiGr OF DOIESTIC' CRiEDlT

Table XXVI - ACIUAL DEVELOGMELNiT ELFY 1ZITUkES IN 1967 AiD 1 96L. 5 `Y SL'lpIŽ

OF FINANCING

iable XXVII - DISTRIBUTiON OF DEVELOFHIENT EXPEIDIiUNS 1967 AND 1961,( RY s,:GP(0- R)

Table YYVTTT - T_TCTAPHIG DIrRT1TIORTN OF Afl'TIUT, TW'flk'()PlvikF' 0P i'NL5Il'Pi '.S

IN 1967 AND 1968

Table XXIX - FINANCING OF THE 1967-1970 PLAN - SITUATION AS OF OCTOBER 1.969

Table XXX - EXTERNAL AID FOR INVESTMENT - AUTHORIZATIONS 1961-1966

Table XXXI - DISBURSE2a4ENTS OF FOREIGN AID 1966-1968

Table XXXII - PROJECTS FINANCED BY FED TO END OF 1969

,Tt' Wr T

GROSS DO*wvcSTC PRnODnU (.AT MARmrET P1RT() 1.466

(Tn Millinne o%f (WA Iraneff Ad PFrcantaeans

A. Origin

Branch of Activity Asunt Percentage1. Agriculture, forestry, livestock and fishing 28 360 48-,72. Extractive industries 188 0.33. Manufacturing industries 3,161 5,44. Construction and public works 2,332 4.05. Electricity and water supply 1,305 2,26. Transport 1,922 3.37. Comsaerce 11,726 20,.18. Housing 3,476 6. 09. Administration 4,807 8.3

10. Other services 942 1.6

Total 58,220 100.0

B. Employment

Private consuwption 48,851 83.9Q-ub a 'Laten c a 111i ?J,268. a

Other 28,583 49.1

Public consumption 5,985 10.3Givil administration 5;010 8.6Defense 976 1.7

Gross fixed capital formation 7,041 12.1BuildinR and works 4,243 7.3Equipment 2,799 4.8

Increa3e in stocks 1,530 2.6Total of domestic economic expenditures 63,408 -

Exports (incl. est. for uncontrolled exports) 6,721 11.5Less imports (incl. est:. for uncontrolled imports) -11,909 -20.4

Total expenditures att:ributable to GDP 580220 100.0

Factor inucome payments from abroad (net) S, 107 3,.

Source: Comptes Econotmiques de Haute Volta 1965-1966.

TABLE II

UPPER VOLTA,: INDUSThA PRODUCTION

Tvoe of Product Unit 1966 _1967 1968 1969

BeveragzesGarbonated hectplitres 19.1 17.0 17.8 16.6Beer 35.9 40.3 45.3 44.2

Oils and fateGroundnut oil (crude) Tons 1,137 905 546 606Groundnut oil (refined) n 1,104 759 559 607Groundnut cake 1,343 1055 81L 750Sheanut butter 488 747 868 898Value of sales rXil. C'rA - - i50.2 108.2

Beds7i3. 140 cm wide 000's 3.5 1.9 3.5 4.1No. bO and 90 cm wide OmOSI 1i.6 1.1 1.9 2.1Value of sales NiK. CFAF 25.5 13.0 23.3 26.4

Corrugated galvanized sheetsNumber (5,2, 5.6 & 6.4 kgs) 000's U15.3 195.2 153.4 251.6 1/Value of sales Nil. CFAF 68.5 103.6 96.5 122.8 ,

Manufacturing industriesof which bicycle tubes 000's (784) 950.8 812.5 520.1Value of sales Mil. CFAF (90) 93.1 91.3

Mechanical industriesValue of sales Mil. CFAF 230.7 244.0 323.1 238-. e/

Textile industryClothing sales Mil. CFAF 34.3 20.5 19.3 13.3 2/

Chemica. anoustrySoap Tons 1,220 1,901 2,350 2,062dalue o0 sl £:1. sas - _ 2 L.. .1

Deliveries to network 000 KWH 21,169 20,712 21,977 16.,888 /

brinkina WaterProduction 000 M3 3,448 3,151 3.345 2,480 2

aSix months.J Seven months.

2/1 £Lght mo11rllb.

Source: DirectioWn %de laU SttstC et L dla YV%canoEVMpCieU.0

TABLE III

UPPER VOLTA: EVOLUTION OF NATIONAL BUDGET 1961-1965

(In Millions of CFA Francs)

Ordinary or Extraordinary Resources and Expenditurel/ GrandCurrent: Budget Domestic External Total 1'otal

(].) (2) (3) (4) (5)

1961Receipts 5,465 293 3,051 3,344 8.,v809Expenclitures -6,495 -1.170 -7?665

Balance -1 0';0_ 2-174 1.144

1962Receipts 5,352 355 500 855 6.,207Exneanitrres _7jS76 -793 A _f{,69

RalaAne*_ 9 62 -216

1963Receipts 7,286 1,178 1,150 2,328 9,614Expeiture -8s 115 = 833 -51 QL4

Balane =Q82O 1 495 666

1964Receilpts 7,754 1 422 423 81177

Expenditures -8,6"^ _ -63~~~~~~~~~1 -"l9

84a' an._e )__O 208 -12l..,

Receipts 7,90l 44 671 715 83,615vxper.citrr 8 a 3(7 17 _;5 9A2

Balance 4(798 -309

1/ Extraordinary expenditures are those of the equipment or investMent budg,et.

°ource: Mini,rstere du Plan et des Travaux Publics et Couptes flefinitifs duBudget de 1'Etat.

_i'BLE IV

UP'PER VOLTA: CUMULATIVE REAL GOVERNMENT DEFICIT - END 1965 AND EMD 19166

Enrd 1965 End 1966 Officially Officiasll yAccounted f'or Othier Total Accounted for Other Total

I. Short-term debts1. External: public

Special advance fromFrenclh Tr,easury 4010 ( 600 - )

Deferred settlements (with ]French Payments Office 330 .. ( - _

Special advance of Central Bank 730 137 _ ) 802Unpaid contribution, for ( )

Technical Assistance ( - 65 )

2. Debts to private individualsTreasury notes 60 * ( 6i7 -Deferred settlements 462 ( 624 -)Unp,aid bills 8811.' ( _ 572 )Expenditures coamitted 42 ( 1,445 _ 42 ) 1,356Defaults by Sovolcoa - _ * 50L…

1.2j52 923 2175 L,458 30 2158

II, Long-Term DebtsAdvance from pension funds 450 - ( 450 - )Due to Postal Checking system 668 ( 698 _ ) 2,443Due to Savings Bank 478 5(2,72 486 - )Due to inter-state establishmelnts 73 ,, ( 10.2 - )Due others 7()2 _O`L- L -

Total 3,624 923 4.547 3,87,2 730 4,601 _

JL:1 Deduct cash on hand -522 - -522 - 2 8 L7 , --

IV. Real Deficit 3,102 923 4!l925 358.5 7.30 4,315_

17 Not including CFAF 167 million in debts to variLous pubLic agencies.

Source: Ministere du Plan et: des Travaux Publics.

TABLE V

UPPER VOLTA: EVOLUTION OF NATIONAL BUDGET 1966-1969

(In Millions of CFA Franca)

Ordinary or Extraordinary Resources and Expenditurea/ GrandCurrent Budget Domestic External Total Total

(1) (2) (3) 4:4) (5)

1966Receiptis 7,429 506 615 1,i21 8,550Expenditures 7,926 784 8,710

Balazce -497 I37 -160

Receipti; 7,565 262 450 712 8,276Ex-enditures 7,008 di-I?A 1I,7 8,

Ralanel- 557 -325 232

1968Receipta; 8,259 97 450 547 8,806Expendit:ures 7,288 1jl56 8-444

Balance 971 -609 362

1969 (Budget Initial)Receiptai 8,926 104 450 554 9,480Expendit:ures 8,223 1,257 9,480

Balance 703 -703 _

1 /7t'v+raorn.- r.r orno ,roy are those of the -- ,, ---.--- or Jnvestment budget..

Source: Budget de 1'Etat et orm..ptes DTfinitifs du Budget de 1'Etat de Haute Volta.t

TABLE VI

IMn"uWI'S 11A * Pt DWWU'r Uln-TV,W 1 05.A..1 7Awr rEa v%Oun aw.a Tm 8T

(Tn Willi^nl aof tMA ?vflfE

1Q66 1967 1968 1969 1970(Est's) (Est's)

2/I. Receipts 8,550.3 8,276.4 8,806.5 9,480.5 10,206.9

A. Ordinary T7 428.7 7_564_ 8 259.6 8_926_ 5 9.644.9

1) Tax revenues 6,951.4 6,596.4 7,340.6 8,031.5 8,860.5Direct (2.111.4) (2,095.6) (2,102.4) (2,126.5) (2,213.0)Indirect (4,692.4) (4,355.8) (5,037.9) (5,753.0) (6,506.5)

Stamp andregistration (137.3) (136.9) (193.5) (152.0) (141.0)

Miscellaneous (10.3) (9.0) (6.8) ( _ ) ( _ )2) other 477.3 968.4 919.0 895.0 784.4

State domain (34.6) (33.7) (45.6) (34.4) (39.0)Arrears andmiscellaneous (442.7) (934.7) (873.4) (860.6) (745.4)

B. Extraordinary 1.121.6 71.6 546.9 554.0 562.021) Foreign 615.4 450.0 450.0 450.0 450.O_

r rgn~~ii dlU rq A% gt.i. U, A I Ct 'i, ie'. A%J d1..j. en)Freach' aidU (5J f3. '4) v.#*O (450v.0 (45.0 (450 v)

Fonds de Solidarite

2) Domestic 506.2 261.6 96.9 104.0 112.0RepAa,lnts frnm

neighboringcountrieg (8.4) (3.8) (5.6) (4-5) (5.4)

Liquidation ofFonds de l'AfriqueOccidentaleFran;aise (179.0) (14.0) (-) (7.0) (7-0)

Repayments fromPension Fund (200.0) (169.3) () (-) (-)

Repayments ofLoans (50.8) (5.2) (1.4) (22.5) (24.6)

Profits fromBCEAO (68.0) (69.3) (89.9) (70.0) (75-0)

II. Expenditures 8.710.0 8,044.8 8,444.2 9,480.5 10.206 . 9 21A. Public debt i7.2 511.4 481.7 674.1 710.2

1) Amortization andinterest 411.5 340.9 295.6 430.4 452.9

2) Pensions 145.7 170.5 186.1 243.7 257.3B. Personnel 4nd

Materiel'l 5,964.4 5.440.3 5,744.3 6,358.3 7,078.71) rersonnel 4,60U.5 4,UZU.U 4,z18.z 4,775.7 5,479.0

2) Materiel 1,358.1 1,420.3 1,526.1 1,582.6 1,599.7C. Transfers 1,404.5 1,056.3 1,062.4 1,190.7 1,004.UD. Equipment

(I.-r rvestment)Expenditures 783.9 11036.8 1,155.8 1,257.4 1_35_ 2/

III. Surplus or deficit -159.7 231.6 362.3 --

l/ Including carryover from previous budgets; figures are therefore not directly comparableto those in the preceding table.

2/ Assuming that the amount of French aid will be the same as in the preceding three years.

Source: Budget de 1'Etat and Comptes Definitifs du Budget de l'Etat.

TABLE VII

UPPER VOLTA: EFlRMCUET EXPENDITIURES 1966-197c)

(In millions of CFA francs)

1966 1967 1968 1969 1970(est.) (est.)

1. Drdin-rry Expenditures 7,926 7,008 7,2bc 6,224 o,o53

E Bytytpe1. General Administration 1,735 1,737 1,o99 2,039 2,0!.2

Institutions (l65) (170) (69) (106) (113)Common expenses (1,644) (1,456) (1,624) (1,689) (1,722)Pensions (166) (170) (186) (244) (257)

2. Foreign Aff'airs 329 277 323 393 423Ministry (150) (69) (105) (12c) (1'0)Other ( 179) (10) (216) (265 (2t)

National Defense and Security 1,845 1,622 1,660 1,&96 2,0(6Army (976) (909) (931) (1,045) (1,1 0 2)Interior and Polico (1i6) (669) (67r) (7c7) (612)Justice (53) (4h) (51) (62) (70)

L. Social] Services c01 693 717 819 661Public HEalth (796) (690) (712) (812) (56h)Ot.her (5) (3) (5) (7) (7)

5. Cultural Services 1,504 1,356 1,361 1,636 1,660Educatiorn and Sport (1,046) (906) (971) (1,152) (1,519)Scholarships and subsidies (655) (450) (370) (462) (321)

f,. Economy 1,301 962 1,053 1,015 1,017Finance and Commerce (534) LJ (364) (390) (435) (36,1)Plan and Agriculture (h56) (303) (6b3) (576) (61l2)Public Works (101) (73) (--)9/ (--)/ (-) /Posts ancd Telecommunications (210) (162) (bO) (4) (4 )

Debt 41 1 341 295 430 693

3y economic character]. 'rersonnel 4,559 3,965 6,219 2/6,736 5,4692. Pensions i.146 170 1.c6 266 2',7

=i4a erial 1,006 1, 09 1/ 1,336 1 .

l. Nlaintenance 27 29 35 b5 !,55. Subventione, transfers and loans 1,604 1,056 1,062 1,191 1,00i

C. Carry over from previous budget 375 442 2007. Debt (excluding pensions) 611 341 295 430 6',3

I1. Invest,ment or Equipment Expenditures 7 6h 1,037 1,156 1,257 1, 'I toad maintenance ... 151 326 379 4:Lc

2i E uildings ... 33 102 ?3. Equioment *- -- 20 o

hi. Investment and studies ... 302 206 343 LI 5'. Participat:lons ... 101 54 69 47h .Equipment financed from foreign

aid 5/ 523 450 650 650 650 (prey.)

ill. Total (I + II) o,710 6-045 L,6664 9,2 1 10,2027

2 Including CFAF 93 million in participations.2/ 'inc-' 196 Public, I ''orks have been included in the Min-stry of Planning and Public __ __

/ Inc:ld-ng carry-over.l/ lncLiid-ing that financed by French aid: CFAF 523 million in 1966, and CFAF 650 ,illion _nL6(7, 1968, 1969 and (provisionally) 1970.FiFrom France only. Although entire amount is shown under II, probably talf was actusaLlyllaed to defray ordinary expenditures.

Sooirce : BdrgPtde rip tEtat and Gormntes Definiifj du, Budget de 1'Etat, as adjustted bh Tf1.

TABLE VIII

UPPER VOLTA: BRUDMMN OEF BUDGET EXPENDITURES_ - 1_966 to ]266

(In Millions of CFA Francs and in Percentages)

~ - 1966 is9 1968 I9i69T 19$6/t69 1961/65Amount 7= AmouLnt % Amount 7. Amomnt % kmowat . Aimount 7.

General Administration 1,735 19.9 1,7'37 21.6 1,J899 22.5 2,039 21.5 '7,410 .21.4 12,516 29.0

$iaternal representation 329 3.8 477 35.4 323 SS.8 3593 4.1 12322 3.8 2,059 4.8

Natioral defense andsecIurity 1,845, 21.2 1,622 20.2 1,660 19,7 1J,894 20.0 7,021 20.2 5:72 l372

Social and culturalexpen,ditures 2,305p 26S,5 2,0>49 2'5.5 2,058 24.4 2,453 25.9 8,865 25.6 11,535 26.7

Economic and financialexpenditures 1,0301 14.9 982 12;.2 1,053 12.5 1,015 10.7 4,351 12.5 6,419 14.8

Debt _ 31_ 47 541 4,2 295_5.5 430 4.5 1,4'I_ 4.3 934 2,2

Total Operating Budget 7,p926 9.10 7,(08 8-7.1 7,288 86.3 8,224 86.7 30,446 87.8 39,183 90.7

Total Equipment Budge 9.0 1,<37 12.9 1,156 l3.7 1,257 13?2 4 234 12.2 4 043 9.3

Grand Total 8,71( 100.0 8 045 100.0 8 444 100I.0 9 48l lOO O 34 680 100.0 43 226 100.0

1/ Budget estimates.2/ Including; French contribution, anounlting in :1966 to :L969 to CFAF 450 million annually.

Source: Republique dLe Haute Volta,Comptes diefinitifs du Budget de 1'Etat.

TABLE IX

INDIRECT TAX IEVENUE 1 966-1 969

(in millions of CFAF)

1966~ ~~~~~ -197 1968Q 10969

_. . . . a -~.-'-J - _ _ 7tno I I'1 7 1 2cZ1 QimUporL Ltaxes and uuLeD t eJ70 Lv f J .Sv awJ

Consumption taxes and receiptsof tobUacc6 Monopoly 081 04. °'0 1,S

Turnover taxes - total 2,406 2,153 2,309 2,719on imports (1,121) (1,0 w ) \lL (1,LruJon exports (87) (123) (159) (152)

Export duties 42 31 54 4Miscellaneous import and

export revenue 115 106 123 13Adjustment for interest and

penalties -150 -221 -28 -

Total 4,692 4,356 5,038 5,7;3

I The livestock tax which yielded CFAF 115 million, 11 million and 113 million in]966, 1967 and 1968 respectively is included in direct taxes.

Source: Ministere des Finances et du Commerce and Direction G6n6rale des Douanes,with adjustments by DqF.

rnA ,nT V VIjU1,DJi A

UPPER VOLTA: LOCAL GOVItiEr4NT BuLDUETS

(In millions of CrA francs and percentage)

A. Final Accounts 1966

Urban Govt. Rural fGovt. TotalAmount Percentage Amount Percentage Amount Percentage

1. ReceiptsAsseSSed taxes 325.6 61.8 621.8 75.7 947.4 70.2Other 201.2 38.2 200.1 24.3 ' 01.3 29.6

Total 526.8 100.0 821.9 100.0 1,348.7 100.0

II. ExpendituresGenera] administration 75.1 1)4.5 100.2 13.5 175.3 13.9

Personnel (41.2) (8.0) (88.9) (12.0) (130.1) (10.3)Ma:inte11ricnance of juO

and private property 157.4 30.4 143.9 19.4 301.3 23.Soc-ial <1 ,.s )cA 0.6 r9 10.l 16.2 161.0 12.-I

EducELtion (14-9) (2.9) (35.6) (4.8) (50.5) (4.0)Economic Services - _ 0 .2 68& 50.2 ."

Miscellaneous 245.0 47.2 18b.0 25.4 433.0 34.4eV-w ub.lic works - - -I .) -18.LI 7 -I *k) * -I - 'S

Total 518.1 100.0 741.6 100.0 1,259.7 100.0

B. Budgets of Local Rural Governments 1968 (estimates)

(by size of budget)

less than CFAF 5-10 CFAF 10-20 CFAF 15-20 CFAF 2O l

UCFA F 5 lJvI'. lIl iILL IILlIUII 11on o.( ver VU1 Total

*To. oI local L 14 34 21 5

Total LomTount of budgets 17.4 265.2 270.6 254.2 129.9 937.3Percentage Of tzotal b-udget- 1.9 2e.3 28.9 27.1 13.'9 10

- continued -

TA3LE X

UPPER VOLTA: LOCAL GOVP.RNI4ENT BUDUETS (continuation)

C. Budgets of Local Ntiunicipal Governments 1968 (estimates)

Revenue AllocationsGross to Central Government Net

Banfora 24.5 7.1 17.Bobo-Dioulasso 176.3 50.6 125.5Kaya - - -Koudougou 32.8 9.7 23.1Ouagadougou 330.4 96.7 233.7Ouahigouya 34.8 10.7 28.1

Total 598.8 175.0 h23.8L

DV. Receipts ofL UtLocadL GUoverrei-,en'Ust - 196U Bud.getU

(Situation as of NIovember 30, 1969)

I. Local Rural GovernmentsTotal receipts 663.0

Local government taxes (727T.)Licensing fees ( 47.6)

II. Local Municioal Governments All G-overments Ouagadougou

Total Receints 137.1 2L2.1a) Taxes & licenses 324.0 174.2

Income (9975) 777-7Real property (82.4) (48.5)Licenslng fes -(107.4) (62.3)

b) Additional "centimes" 14.8 b.5

c) Municipal taxes 98.8 59.8On buildings (24.6) (2.)

1/ Communes of Dori, Fada N'Gourma, Koripela, Tenkodogo and Ziniare.j There are 82 local governments, but budget data for two are unavailable.

Total after allocations to central government is CFAF 678.1 million.

Source: Ministere du Plan for A - C; Di-ection des Contributions Diverses, for D.

TABLE XT

UrPin VOi\TAm SO-CIrL INSU1RANCrr- *r_rS(In millions of CFA francs)

1962 1963 1964 1965 1966 1967 1,968

1l. Famil- Al-!owances

Benefits paid 146.8 172.3 200.2 244.9 263.1 250.5 307.3of which child allowances 112.5 134.0 155.9 191.6 209.2 209,3 21 0=5

contributions to fund 126.8 130.7 128.4 134.7 139.3 133.i 134.11QA1 1QAq 1 QA), i QAC 1 QAA 1Q67 i 968B . Accident Insurance 96 196 196 196 16 1 1

Benefits paid 9.6 18.2 ... 19.0 20.8 20.1 20.5Contributions to find ... ... ... ... ... U.i 5.3

C. Old Age Insurance 1962 1963 1964 1965 1966 1967 1968No. ensured (million) 23.0 24.4 27.6 30.9 33.2 34.6 35.7No. pensions paid (rounded) 300 300 500 600 700 900 1,100Value of pensions paid 5.4 10.3 15.4 23.0 25.7 37.5 4'.0Contributions to fund 94.9 97.3 96.4 104.0 106.3 103.3 104.5

D. Financial Situation of All Three Funds (Year 1968)

itoL2ei pt Expenditures

('u..*i.usws to runds 289On Benefits pad4A out '07. oui1LuAur1 Oriu iu. H4-"- *JY. -' I

Subventions 50.0 Personnel expenditures 30.9Tncome from real pro-Uerty 27.1 1era1ng expendi ures 21.LAll other 15.2 Other expenses 12.9

l'otal 375.2 nvestmentCash carry over Total 389.1

from 1967 202.3 Cash availability

Total 577 5 end 1968 188.4Total 577.5

!*. Surirna.ry Balance Shee-t of Social Insurance -Fund (end 196A)

Assets LiabilitiesLong-term investment 499.7 Reserves 7&3.9Short-term investment 121.5 Receivables 116.2Cash 98.4 Profits on accident andLosses on Familv Allowances old age insurance

Up to :L968 363.1 Up to 1968 241.7From i968 110.8 h73.9 For 1968 51.7 2939l.

Total 1;93-5 Total 1)193_ 5

Source: Caisse de Pr6voyance Sociale.

TABLE XII

UPPER VOLTA: VALUE AND COMPOSITION OF REGISTERED EXPORTS (1965-1.968)

(In Millions of CPA Francs) (In Percentages)_ 1965 1966 1967 1968 19,65 19,66 1I67 1968

Cattle 1,441 1,498 1,501 1,589 39.1 37.6 33.9 30.0Other Animals 702 709 770 936 19.1 17.8 17.4 17-7Refrigerated meat: 66 200 259 280 1.8 5.0 5.8 5.3Hlidesi and. SkiLns 110 204 85 77 3.0 5i.1 1.9 1.5Cotton 257 304 842 913 7.0 7.6 19.0 17.3Cottonseed 48 32 98 123 1.3 0.8 2.2 2.3Sheaniuts 63 155 68 311 1.7 3i.9 1.5 5.9Shearnut Oil and Butter 62 51 12 54 1.7 1.3 0.3 1.0Groundnuts 162 204 283 302 4.4 5.1 6.4 5.7Sesame 88 64 118 118 2.4 1.6 2.7 2.2Gold 248 116 - - 6.7 2.9 - -Other 433 448 393 585 11.8 11.3 8.9 11.1

T'otal; 3,680 3,985 4,429 5.288 100.0 100.0 100.0 100.0

Source: MiniLstire dth Finances et du onmnerce, Situation Economique de la Haute Volta.

LUIn i A AT I L--

VIIIX'iL VOL'IX'>i: -I i.L Lj P A I PltlS 197Saiz 196

(al e ie: il ions oP f CFA france; Qliantity: Tn misarnis ofc Torns)

1967 31960 1969 (i3rd Ouarter)_Value tAi:nt;t, Value Qitantity ValI ue Qua 0tity

x ,or,,i - - * ,o 7 1.85 25.6Lives-ock 2.27 ?. 4 2 1.h2 17.3Catt:le 1. 50 20. 9 1. 59 23.5 0.&2 11.4bl:cep aod . oats 0. (74 65.14 0.71 7. 0. 2 h.5Live poultry 0.12 0.9 0.22 1.4 0.17 1.3

LBe'eral-e(s s and cT(obco 0 0. .5 0. 05 o 4 0.0)4 0.4

Raw v;ate1eriAs 1. O1 27.7 1. -c 41.2 1.79 29.1rou01ld(lkit s (shelled) 0 S ( 0 -;0 ( 0.23 .

Cot Ionseed 0. 10 ) . ( 0.12 0.08 6.oSesare sar e 092 S2.' C 12 9 . 0.ii 2=7Siieaiumts i'o7 7!4 0. <51 15. 1 0.24 6.8GinnTedi ott-on (0.4 5 .9J 2 6. 1.01 7

Minc.:rals an-, Iuel 1/ 1/ 1 /

Aniils and veoeeahle oils a t 0, )'' , 1,* 0,0) r0,.R

(L','!n('1 l Ir (lC ts 1 / 1 I 1-/ 1 / 0.0 0.1-'-1 ~~~~~~~~./ __I _n i ' r

Mi4nFui:a(:t 11-e.; rti,-les 01(9 0 .6).11 r".4 0.,12 1,

8!:l oh I ucry an icta SrlOsrtri CCitilllt R; 07HO _ 0] ')-' 0'.,2 °-- 8 { 1

M , r iscel .l-is i, ( rrpiit71 1/ 0 01 1' 0.02 /t,.v I ~ I II * **n

r C~7 94. 4 .5 U9. 5- 29 o ) '- 0 U 3

t _I

TABLE XIV

IUPPERl VOLTA: VALUE AND COMPOSITION 'DF REGISTERED IMPORTSJ(1965-1968)

-…71-n-i …lions of CFA Fras T7 In PerceWtage1965 1966 1967 1968 1965 1966, 1967 196Ei

Consumer Goods 5, 299 5L506 418 5 653 5 8 59. 2 47 oC 55.9!Food products (2,238) (2,500) (2,112) ( 10T (2441 (R (18.8)Textiles (982) (780) (749) (1,057) (10.7) (8.4) (8.3) (10.4)

Equipment Goods 1,lB5 j1.42 1 Si06 2.001 12.9 12.3 16.8E 19.8Trucks (225) (26D) (220) (3,36) (2.5) (2.8) (2.4) (3.3)Other Vehicles (21,3) (210) (129) (270) (2.3) (2.3) (1.4) (2.7)

Semi-aanufactured goods 2 349 2j102 2,659 1.8 25. 6 22. 6 297 17.Spare parts for bicycles and

motorcycles (241) (18D) (298) (239) (2.6) (1.9) (3.3) (2.4)Cement (2810) (22,0) (214) (237) (3.1) (2.4) (2.4) (2. 3)

Fuels and lubricartts 336 544 58 681 5.9 6.5 6.

Tcotal 9,169 19 294 8970 108 120 100.0 100.0 100.01 100.0

Source: Ministere des F inances et du Qoumerce, Situation Economique de la Haute Volta.

'PA MT 'r T

UPPER VOLTA: REGISTERVD IMPORTS 1964-1966

(Value:: Billions of CFA Francs; Quantity: Thousands of Tons)

1964 1965 1966____,_____ Value Quantity Value Quantity Value Quntit

Food, vege bles and animnalproducts. 2.86 - 2.91 - 3.16Vegetablei, and edible fruits_1/ ZT - 6.90 - 03 Cola nutgZ/ 0.80 _ 0.76 - 0.72Ii?ice 0.90 3.4 0.12 3.2 0.16 2.9Theat and Flour 0.24 6.9 0.28 8.3 0.37 11.2

Livestock 0.15 - 0.36 - o.55 y' -

Fuel and Petroleum Products 0.34 35.9 0.34 30.2 o.55 3.5.2

Semi-finished goods 1.36 _ 1.64 - l.4o-Cement 0.12 26.1 0.23 28.0 7) 25 22-6Cotton yaLrn 0.26 0.6 0.23 0.5 0.25 0.5Fertilizers 0.01 - 0.01 - n1 -

Consumer Goods 2.00 - 1.55 - 1. -

Cotton cloth and prints 1.01 1.7 0.60 1.0 0.9Pharmaceutical products 0.16 - 0.20 - 0.28 -

Cotton bl.ank:ets 0.05 - 0.07 - 0.10

Capital Goc,ds and Durable Con-sumar norids 2-39 - 2-36 - 1 °Vehicles 0.38 - 0.38 - 0TiFe8 and[ Tiubps 0. 27 - O.21 - O 21Metal furniture )Machinery andi pparatus )s O.85 _- 0R2 - 0.70Electrical equipment )

Other and non-classified 0.54 - 0.70 -0

Total 9.49 167.3 9.17 157.5 9.29 15&.2

1/ Including tobacco and beverages.2/ TLargelyv for re-eyport: to Mel 3/ Largely, imported from Mali (cattle, CFAF 425 million; sheep and goats, CFJF 107 mil-

l .ion*.

clure i-.+-r du : eten 1>

'TABLE XVi

UP-PE. VOLTA: RfAEISTEED IMPORTS - 1967/SE TMBER i$)6S9

(Value: billions of CFA francs; quantity: thousands tons)

i (le n - - -. - , V t ;

Al 'fLe ;)'hLnt-~ lytj './.l r :,.!Si ~ , ta.C' ;L9 fT Va i,

Foo(; Prn6ucts 2. 9 -' 40., 1. 9( 3: .1 1. L67 2 5. LLives o. '; i). ;- X . ff ii, ?~~~~~~~~~~~~~~~~~ ~~. I 0.U 6 (1),

Ceieals and Flour 21.. fu. J'-i 1.03 1. .4.

F- r uit s alUJ 'J'c e t ai esID, 1'' - I.

.er'in73¢;I Sugar 4 .2 8, £. 60 12. 0.32 5- 1

Beverages ;i_dl 'lTobarco j- 2. L' L. 2f 7 9 0.17 1.1

u'. -L-e2i>1e ra T T'ateriaS --. _ a 7 0 - 71 28. 6aru-' aIfl ., -x,, , _ , u.uy'3 '/ '

.OC1 "ituts .12.5 0.59 14. 0.36. 9>3

Filel amici Fetrolcuim Product: 0.5', 33.1 0. 68 36.1 o.64 32.4Eetroleu-) and Petroleu!o Pr)-

.=T-, t s .;. ( 7 0.63 32.?

Akn;i-l and Veveta1le 0i3 s C'. !3 1. R, ,.3. 0.08 1.4

CheTical and Allied Proclucts 0.5 5)5 .6 1.17 6.0Medical and Pharmaceutical

products 0.22 0.2 0.32 0,5 0.21 0.2Fertilizers I. u-7 0(.01 (J.4 0.03 -L.1

MIanufacturedl Products 2.66 2.696 3, 6 2 .d6 42.9Cerent 0.21 202, , .2L ; 0.25 25.1

Iron and Steel 0.2 F.20 .9 0.40 7.3Metal Products 0.5 2.1 0.31 o 0.46 3.8Te::tile Yarn anid Cloth 1.22 :- 1.- 5.5 1.07 2.9?Rubber za.,.-factures f.'57 1.' 0.3o ? 1 0.32 0.9

Machinery ond Transport Equip-rnent 3.51 3.;' 2.,0 5>.1 2.36 b

Transport Equipinent 07,3 2. . 'K 2. 1.02 2.7

Ot.er Manufactures 0.40 C). 0 '.6 0.70 2.3

Total .9'7 151.`Y 10.12 16-.5, 10.59 142.1

1/ Doubtful figure; essentially tra-Uel arLicles.

2/ of which 0.59 for "Chemical and Allied Products"1 , i.e. about 10 times more than in

preceding years.

Source: Direction de la Statistique et de la Mecanographie.

TABLE XVII

UPPER VOLTA: DIPORTS BY COUNTRY OF ORIGIN (1965-196-8j)

(In Millions of GFA Franas) (In Percentages_1965 1966 IL967 L968 1965 1966 196 1968

France 4,,909 41,048 4,,029 4,424 53.5 43.6 44.9 43.7

Ivory Coaast 1,505 1,630 1,374 l>623 16.4 17.5 15.3 16.0

Federal Republic of Germny 223 247 291 449 2.4 2.7 3.2 4.4

Mali 543 711 575 424 5.9 7.6 6.4 4.2

Urnited States 191 346 217 419 2.1 3.7 2.4 4.1

Belgium 170 472 168 326 1.9 5.1 1.9 3.2

Senegal 270 330 316 299 2.9 3.5 3.5 3i.0

Netherlands 190 176 179 250 2.1 1.9 2.0 2'.5

Italy, 144 106 242 134 1.6 1.1 2.7 1.3

Eflited Kingdonm 119 136 85 123 1.3 1.5 0.9 1.2

Ghana 212 118 143 108 2.3 1.3 1.6 1.1

Japan 12 11 46 32 0.2 0.2 0.6 0.3

Others 681 963 1,305 1,509 7.4 10.3 14.6 15.0

Total 9 169 9 294 8.970 10 120 100.0 100.0 10c.0 100.0

Franc Zonxe 7,467 7,390 7,218 7,819 81.4 79I.6 80.5 77. 3

West African Monetary Union 1,849 2,015 1,725 1,958 20.2 21.7 191.2 19.3

EEC 5,636 5,049 4,909 5,583 61.5 54.3 54.7 55. 2

….,..e

!f _e:c Ministere des Finances et du Coamerce, Situation Econornique de la Haute Volta, Avri.l 1969.

TABLE XVII[

IUPPEIR VOLTA: REGISTEREDEXPORTS BY COUNTRY OF DESTINATI2N J965-1968)

(In Millions of CFA Francs) (In Percentage)1965 1966 19±L 19168 19165 -1966 19j67 1968

Ivory Coast 1,795 2,010 2,185 2,806 48. 8 50.4 49.'3 53.,1

France 521 717 600 7'49 14. 2 18.0 13. 5 14. 2Ghana 649 5,98 601 532 1I7. 6 15.0 13. 6 LO.0

Japan 48 89 1.20 359 IL.3 2. 2 2.7 6. 8

Mali 155 1.52 1.06 1.34 4. 2 35.8 :2.4 .2.5

United Kingdom 47 46 52 110 I.3 L. 2 L. 2 :2.1

Belg:Lum - 3 69 97 " (.1 1l. 6 I. 8

Italsy 105 54 140 90 2. 8 1.4 :5. 1 1.7Federal Republic of Germany - 2 - 57 - - 1.1

lienegal 10 1 7 8 0.3 - 0.2 O.2

Netherlands - - 15 3 - 0._4 -

Other 350 31i3 534 343 9.5 '7. 9 12,.0 6.5

Total 3 680 3.985 4Q429 5 .288 100.0 100.0 100. 0 100.0

Franc Zone 2,'583 3,045 3,351 3,9!09 70.2 76.4 75.7 73.9IWest Africant Mornetaty Union 1,899 2,167 2,330 2,!323 -1.6 54.4 52.6 55.3

EEC 626 776 824 996 17l. 0 19.5 18. 6 18. 8

3ource6: Minstere cles Frinances et du Comnerce, Situation Economique de la Haute Volta. Avril 1969.

TABLE XIX

lJPPER VO]TA: SUMMARY BALANCE OF PAYMENT ESTIMATES, 1968

(In billions de CFAF)

1968 / 1968 /

A. Goods and services - 5.18 - 5.44Tradle balance -48 - 5.28

Exports f.o.b. (5.29) (6.96)Imports c.i.f. (-10.12) (-12.24)

Other transportation and travel ... - 1.22Interest on public debt - 0.09 - 0.07Investment income:

Direct investment income ... - 0.39Other 0.07

Government n.i.e. - 0.26 - 1.15Services under aid. programs (- 0.68) (- 2.17)Diplomatic personnel expenditures (0.42) (0.93)Other (... ) (0.09)Other services ... 2.60

B. Unrequited transfers 9.74 6.83Private sector 5.70 2.21Central Government .O°4 4.62

C. Nonmonetarv capital ° 4 0.97Private ...Central Government O.hO 0.23

Drawings on loans (0.66) (o.60)Anortization na;vments (- 026) !- 0.27)Capital subscriptions ... ( 0.10)

Loca:L Government ... - 0.01

D. Net errors and omiss:Lons - 69 - ___

E. Totals (A through D) 1-27 1I 9

F. Monetarv movemAnts _ 1-97 - 1.2Central Bank - 1.08 - 1.08

Assets (increase -) (= 1.23) (= 1.23)Liabilities (0.15) (0.15)

Com.m.evri.al hbn1rs and the Nation.alDevelopment Bank - 0.19 - 0.17Assets-- (ln"'ncrs r) (- °-43 (= °43)Liabilities (0.24) (0.26)

Other mor.et;aJr inst.itutions .-. 0.02

j Estimates of the International Monetary Fund.9/ -~ P Lir.nary4± J '.. a of U..LMA J 7.('fAJ

TABLE XX

UPPER VOLTA: EXTERNAL PUBLIC DEBT OUTSTANDINGAS OF DECEMBER 31, 1969 i/

DEBT REPAYABLE IN FOREIGN CURRENCY 2/

(In thousands of U.S. dollars)

Debt OutstarQiDecerlber 31l1960)

SOUr-Ce M; C Tnl^, .. X-Tl>1 _, i

only unclisburs:ed

TOTAL EXTER11AL PUBLIC DEBT 202,L36 23132

Privately held debt . 350 350Publicly issued bonds 31 31Financial ins litutions -

BanqUe International pour l t AfriqueOccidentale 320 320

Loans from international organizations - IDA - 800

Loans fromi goverments 20,086 21,982France ob39 ,o-iGerinany (Fed. Rtep. of) 1,852 2,732Ghana h,J95 b,l95

1/ Debht .with an original or extended maturity of one year or more./ Defined to include the CFA Franc which is freely convertible into the

TABLE XXI

UPELR VOLTA: ESTIMATED FUTURE SERVICE PAYMXNTS ON TEiRNA LPUBLIC DEBT OUTSTANDING INCLUDING UNDISBURSED AS OF

DECEMBER 31. 1969

DEBT REPAYABLE IN FOREIGN CURRENCY

(In thousands of U.S. dollars)PA 1

Debt Oltstanding Payments during periodYear (Begin. period) Total

including Amortization Interestundisbursed

TOTAL EXTERNAL PUBLIC DEBT

1970 22,700 i,694 2u3 1,9771971 21,006 1,206 254 1,4631972 19,80(1 1,228 266 1,4941973 18,573 1,491 286 1,7771974 17,082 1,495 264 1,7591975 15,586 1,608 231 1,8391976 13,979 1,304 196 1,5001977 12,674 1,178 162 1,3401978 11,496 1,062 134 1,1961979 10,434 939 110 1,049

1980 9,495 764 92 856

1981 8,731 757 80 837

1982 7,975 759 69 828

1983 7,215 396 57 453

198l 6,&19 389 54 443

Note: Includes service on all debt listed listed in Table XXprepared on April 28, 1970 with the exception of $432.000(Loans from France) for which repayment terms are notavailable.

- continued -

Table XXI (cont.) - 2 -

Debt OutstandingYear (Begin. of Period) Payments during Period Total

Incl. Undisbursed Amortization Interest

PRIVATELY HELD DEBT

1970 350 209 21 230

1971 141 52 91972 90 52 571973 36 27 2 251974 11 3 1 L1975 5 3 - 31976 5 2 -3

1977 3 1 11978 2 1 _1979 11980

PUBLICLY ISSUED BONDS

1070 31 5 _7

L;1 I - ~~26 5 17971 20 5 6

.L,7 1 - 1 5 3 41973 1 3 1 a

Q71. 134

~L,7 L4 5 3 3 319751976 2 3 1977 3 1 _ 1197 1 _ 11979 11950-

-cont.-

Table XXI (cont.) - 3 -

Debt Cutstandin Payments during PeriodYear (Begin. of Period) Total

Icnl.Undisbursed Amortization Interest

PRIVATELY HELD DEBTFINANCIAL INSTITUTIONS

BANQUE INTERNATIONALE PO-UUR L IARIQUE OCCIDENTALE

1970 320 2014 19 2231971 116 46 7 541972 69 46 4 501973 23 23 1 24

LOANS FROM INTERNATIONAL ORGANIZATIONS

IDA

1- ?'I, 0 800 0 1 11971 800 3 319)72 800 - 5 51973 800 6 61974 00 - 6 61°75 800 - 6 61976 800 - 6 61977 800 - 6 61978 800 _ 6 61.979 800 8 6 141980 792 u 6 14198E,1 784 8 6 141982 776 8 6 141983 768 8 6 1419I'4 760 8 6 14

- cont. -

TableXXI (Cont.) - _

Debt Outstanding Payments during PeriodYear (Begin. of Period) Total

Incl. Undisbursed Amortization Interest

LOANS FROM GOVERNMENTS

1970 21,550 1,4h5 262 1,701971 20,065 1,154 2)43 ',3971972 18,911 1,176 256 1,4321973 17,735 1,464 279 1,743197h 16,270 1,492 257 1,7491975 14,776 1,605 225 1,6301976 13,173 1,302 169 l,4911977 11,871 1,177 156 1,3321978 10,695 1,061 126 1,1691979 9,633 931 104 1,0351980 8,703 755 87 Wi21981 7,947 741 75 8231982 7,199 751 63 8141983 6,447 388 51 4391984 6'059- 381 46 430

FRANCE

1970 14,623 1,303 152 1,4551971 13,320 972 138 1,1oy1972 12,34& 994 155 1,1491973 11,354 1,099 183 1,2821974 10,255 1,053 170 1,2231975 9,202 1,093 147 1,2401976 8,109 790 121 9111977 7,319 664 97 7611978 6,655 549 79 6281979 6,106 41b 64 4831980 5,688 243 56 2991981 5,1444 236 54 2901982 5.208 239 51 2901983 4'969 241 49 2(01984 4,728 234 47 2h1l

- cont. -

Table XXI (Cont.) - 5 -

Debt Outstanding Payments during PeriodYear (Begin. of Period) Total

Incl. 'undisbursed Amortization interest

LOANS FROM GOVERWIENTS

GERMANY (FED.REP .OF)

1970 2,732 -5 51971 2,732 - 5 51972 2,732 -1973 2,732 - 5 51974 2,732 74 5 791975 2,658 148 5 1521976 2,511 148 4 1521977 2,363 148 4 1521975 2,216 148 4 1511979 2,0D68 1)48 3 1511980 1,921 148 3 1501Q81 1,773 148 2 15019282 1,620 148 2 1501083 1,W78 148 2 149198)4 1,331 148 1 149

GHAINA

1970 4,195 182 O2&19'71 4,1013 182 100 2831972 3,830 182 96 21973 3,648 365 91 4561974 3,2 U 44(1975 2,918 365 73 4381'976 2,554 365 64 429

1977 2,189 365 55 4201978 81,24 365 46 4101979 1,459 365 36 401198Q,0 1,094 365 27 3921]981 730 365 18 3831982,~ 365 365 9 374

TA3L3Z XXII

UPF'ER VOLTAL:_ M0NETARY SURVEY

(In Billions of CFA Frarics aLt End of Year)

1965 1966 1967 1968 1969

Foreign Assets (net) 2.60 3.41 3.79 4.97 5.94

Domestic Credit 4.21 3.82 3. 33 ".14 3.45

Claims On, governnent (net:) 0.13 0.20 -0.41 -0.92 -2.24

Claims on private sector 4.08 3.62 "3.74 4.06 5.69

Money supply 6. 27 6. 53 6. 60 '7.45 8.510

Quasi-money 0.14 0.09 0.06 0.14 0. 20

Other itoris (met) C0.40 0).61 0.46 0.51 0.68

Money (seasonally-adjusted) 6.10 6.43 15.40 7.29 8.31

Source: IMF.

UFPPER ;VOLTA`: NA TIONAL DEVE PHNT ANK - LOANS OUTSTANDING

(In millionas of CFA francs and percentage)

End Septem2ber 196' End Septemnber 1966 End September 1967 End Seotember 1-968AmoioUnc fPer centag,e Amount Percentage Amount Percentage Amount Percentage

A. By t.rDe 908. 8 1((.0 1,027.14 100.0 1 159,7 100.0 1 l',3.6 100.0Long-term 30 Q3 3:T ,1 77.3 4 ' 99. 3 .1.2Mediuml-term 370.7 44(J.i 3346.4 33.7 30o.C 26.6 3(3.5 26,3Short-term 21:L.9 23.3 234.t0 22.c 204.C 17.6 167.8 1L.6Doubtful crediLts 22.c, 2.5 32.9 3.2 147.9 12.7 114.3 9.9

B. Bv sector 9085.8 100.0 1,9 277.4 100.0 1 159.7 10.0 1 153.6 100.0Real estate 57. 5J9.3 .6 05 679.2 5Agriculture 213.3 23.5 :222.5 21.6 212. E 18.3 187.9 16.3Commerce and indus,try 122.1 1:3.8 204.3 19.9 267 ., 23.1 1414.6 12.5Small eauipment and

vehdicle loans 38.6 3.8 33.14 3.2 435 3.8 64.5 5.6Public loans 23.9 3.2 24.3 2.4 9.0 C).9 66.4 5.7Other 52.0 5.7 33.6 3.3 25.6 2.2 11.0 1.0

Source: Balance sheets of Banque Nationale de De6veloppement.

TABLE CXIV

UPPER VOILTA: NATIONAL, DEVELOPMENT BANK - LOANS GRANTED TO END SEPTE[IBER qz6j(In mill:Lons of CFA francs and percentages)

Cumulat,ive Total from Inception- Loans Granted in Year ended September 1969

Value Percentage of toltal Amount Percentage of Percentage of'-- - ' - -- anounted granted cumulative

ill Zear amount

A. By ty

.Long-term 1,236.61 21.i7 266'.7 18.1 27.5Medium-term 1,428.59 25.:L 200.3 13.6 16.3Short-term 1,980.2 34.7 30°4.0 20.6 18.1Current account 1,054-2 18.5 704.2 j 47.7 201.2

To-tal 5,700.1 100.) :1,475.2 100.0 34.9

B3. By sector

Agriculture 2,034.2 35.6 78:L.8 53.0 62.4Real estate 1,549.5 27.2 217.7 :14.8 16.3Small eouiprment

& vehicle loans 695.4 12.2 15'7.9 10.7 29.4Commerce & industry 1,C70.4 18. 8 317.2 21.5 42.1PubLic credit 126. E 2. 3 - - 0Oth,er 221.'; 3.'' .6 2y

ictal 5,7U0.1 100.0 1L,475.2 1(0.0 34.9

I) 90) percent for agriculture.cr an '!ineiblel.Scurce: Bancule N,ationale de DeveloD-,ement.

TABLE XXV

UPPER VOLTA: ORIGIN, DESTINATION AND FINANCING OF DOMESTIC CREDIT

(In Millions of CFA Francs)

A. , 7VV A. 7. I() L7AU

Dec. Dec. Dec. March Dec. March

A. Ori&in 4,826.7 4,418.9 4,235.8 3,846.0 3,930.4 3,72$.8i. Central Bank 1, 03.3 705.8 185.6 -296.8 -7v0,0 -1,112.52. Comnercial banks and

National DevelopmentBank 2,385.5 29100.5 2,336.1 2,572.4 2,867.3 3,152.7a. Total credit (3,455.7) (2,731.4)(3,020.i) (3,341.2) (3,225.5) (3,887.5)b. Less financing by

Central Bank (i,047.7) (- 546.1) (-658,3) (-708.0) (-337.7) (-71l.4)c. Less financing by

Other Institutions (22.5) (84.8) (25-7) (60.8) (20.5) (23.4)3. Postal checking system 410.6 384.7 357.0 480.4 378.6 483.24. National Savings Bank 478.5 536.5 696.2 705.3 777.6 797.05. Treasury 542.9 718.4 668.9 405.7 527.5 413.26. Net inter-institutions

float -34.1 -27.0 -8.0 -21.0 79.4 -4.8

B. Destination 4,826.7 4,418.9 41235.8 3,846.0 3Q930.4 3,728.81. To government (net) 866.8 977.2 504.9 131.4 21.3 -614.52. To private sector 4,080.1 3,634.3 3,751.0 3,903.7 4,055.1 4,640.23. Unclassified accounts

(net) -86.1 -165.6 -12.1 -168.1 -225.4 -292.14. Net inter-institutions

float -34.1 -27.0 -8.0 -21.0 79.4 -4.8

C. Financ n 4.826.7 4418.9 23.8 3846,0 3,390,4 3,728.81. Net foreign assets -2,880.1 -3,716.2 -4,188.8 -4,475.6 -5,449.6 -5,806.82. Liabilities to foreign

institutions 283.5 312.2 401.1 480.7 481.2 583,93. Liabilities to private

sector 7,423.3 7,822.9 8,023.5 7,840.9 8,898.8 8,951.7

Source: IMF.

TABLE XXVI

UPPER VOITA: ACTUAL DEV1ELOPMECNT EXPENDITURES IN 196LAND 1968 BY SOURCE OF FINANCING

(In Millions of CFA Francs or in Percent)

National and Coaunul French FED Other PubiLic Enterprises…______gBudets and Human Investment: Alid Aid an(i Other Private Total

Plani 214.3 1,128,,6 337.5 478.9 690.7 2,850,0Outside PlanL 11.9 614,3 187,2 14.4 166,0 993.8

Total 226.2! 1,742.9 524..7 493.3 856.7 3,843.8In Percent 6% 45Z 14% 13% 22% 100%

1968Plalm./ 472.6 1,259,9 691.3 357.9 1,206.2 3,987.9Outside Plan 110.3 284.2 10.0 24,1 327.8 756.4

Totail 5 8 2 .SR 1,544.1 701,3 382.0 1,534 ,' 4,744.3

_ In Percent 12% 33% 15% 8%in 32% 100%

1967 and 1968

Plain 686.9 2,388.5 1,028.8 836. 8 1,896.9 6,837.9Outside Plan 122.2 898.5 197,2 38. 5 493.8 1,750.2

Total 09. IL 3,;287 .0 1, 226.0 875.3 2, 390.7 8,588.1

In Percent 9.4 38.5 L4.3 10,2 27.8 100l0%

1/ Including balance of 1967 Plan anc optional trancihe.2/ Including CFAP' 92.7 million in "human investmant"3/ Including private foreign aid of ClAF 201 5 million.

Source: Ministere dLu Plan et des Travaux Publics.

TYBLS XXVII

UPPER VOLTA: DISTRIBUTION OF DEVEIJPMENT EXPENDITURES 1967 A 1 9 6

(In Millions of CFA Francs and Ln Percenat)

Public Firancing _ Private Fimanciin…-Total Total Grand Total

__ _ _ __ _1967' 1]968 Amount Percent 1967 _ 19,68 Amount Percent Amount fercent-

By MinistryPlan and Public Works 585.3 996,5 1,581.8 25.5 590.4 1,)208,1 1,798.5 75.3 3,380.3 39.4Agriculture 1,476 9 1,47'0.3 2,947.2 47.5 153.0 81.9 234.9 9.8 3,182.1 37.0Ports, Telecommuni-cations and Infor-mation 50.6 106.1 15-6.7 2.5 _ *- - 156.7 1.8

Finance and Commerce 6.5 115.4 121.9 2.0 103,0 151.3 164.3 6.9 286.2 3.3Labor and CivilService - 3.0 3.0 0.1 7,0 3.0 10.0 0,.4 13.0 0,2

Health 318.5 293.0 611.5 9,9 0.3 1531.6 131.9 5.5 743.4 8.7Education 409.3 186,0 595.3 9.6 3.0 481.0 51.1 2.1 646.4 7.5Interior _ 140.0 _0.0 180.0 2.9 - - - 180.0 2.1

Total 2,987.1 3,210.3 6,197.4 100.0 856,7 1,5,54,0 23,90.7 100.0 8,588.1 100.0

Production 1,300.7 1,312.7 2,613.4 42.2 806,4 1,181.2 1,987.6 83.2 4,601.0 53.6Infrastructure 409.2 824.7 1,233.9 19.9 40,,0 130.1 170.1 7.1 1,404.0 16.4Social investment 952.9 628.2 1,581.1 25.5 10,,3 197.7 208.0 8.7 1,789.1 20.8Research and studies 324 3 44__ 69.0 1_2.4 - 2 25.0 25.0 1 J 94.0 9.2

Total 2,987.1 3.210.3 6,197.4 C100.0 856,7 1,534. 0 2,,390.7 100.0 8,588.1 100.0

Source: Ministere du Plan de Haute Volta: Comtes rendlus clexecutiLon.

11BLE, XXVIII

PP= WLTA.L_2EGEOGRAPHIC DISTRIBUTION OF ACTrUAL DEVELOPMENT EXPENDITURS IN 1967 D 1968

(In millions of CFA Francs and iLn Percent)

Peircenlt of Percent ShareAmount Distri- of Region or

Amounlts bu,ced Geographi- City in Total (2) - (1)19 67 19968 Tortal cally Po2ulation

Total expenditurediatributed geographically 2,050. 0 13817'.1 ,867.1

Share of O:RD'sBanf ora 184.6 9 7,3 r'27S .9 7.2 4.3 1.7Bobo-Dioulasso 355.3 94.3 129' 6 3. 4 3.9 O,9Diebougou 26. 6 3'7. 8 64, 4 4 1.7 7.4 0,2Volta Noire 303.7 248. 2 551.9 14.3 11.3 1.3Koudougou 1754.9 565. 6 7010. 5 18.1 14.7 1.2No. :Mosei I117, 5 143.3 260, 8 6.7 11.8 0. 6Ouagadougou I76. 9 17:3,9 3510. 8 9.1 16. 2 0. 6'Yatenga 14, 5 79,7 21:3. 8 5.5 10.7 0.5Southiest 1.5.9 81L,i 17.O0 5.1 11.1 0.5Sahel 69.0 65,,2 134. 2 3.5 5.1 0.7

Share of citiesBobo=Dioulasso 4157.9 62.,8 530.7 13.7 ) 3.6 ) 7.1Ouagadougou 283.2 173.3 456,5 11.8 )

Expenditures not distributedgeographically LJL3. 8 . 2 41 O

National n, a. (1,618. 1)Distribution t:o be, determined _ n,, a. I _ 309 _ __

Total 3 843. 8 ,4 3 _ 588.1 100.0 100.0SuExcluding cisty.

Source: MinListe!re clu Plan et des Tiravaux Publics.

UPPER VOLTA, FINANCIt.; vF nfr 1967-1970 PLAN

SIIUATION AS OF OCTOB.-t 196o

-_ ___ ___- - - bi.ljssLot CFA Frarcs) ___All

Iuternational OrgantLztions PAj FtID private A, publiTot*l AssoreiLJ Total Aaeored-l Total tur.d. tott Al Ar.d-rtl/ Total AasureA./

Total Ass.rod-11 Total tAl ecetgePure Ttl ecetPu-ose Planned Total Percentage Planned Total Per centaa Plannad Total Percentage PlaIned Total Percenrace Planne ____P______otl P_rcenta _

Prodctive Invest- . 0.7 30 448 42 76 1.8 2.16 114 3.29 1.31 40 2.79 2.44 82 13.02 9.50 71

Ecoonoic infr.-

strocture 0.20 - 0 1.09 0.95 87 5.06 5.1.9 102 0.81 0.52 64 1.17 0.92 78 8.33 7.58 91

Sociel inveatnt 0.70 0,63 90 1.16 1.15 100 2.21 0.9 6 43 0.57 0.88 1.54 0.30 0.24 80 4.94 5.86 78

Studies and revenue 0.38 0.12 32 0.36 0.28 78 _ 0.02 - 0.33 - 0 0.15 0.40 267 1. 22 0.82 90

Total 1.85 0.92 50 7.0 95.80 82 9.16 8.53 91 __s 5.00 2.71 53 4,41 4.00 91 27.51 1.76 79

Percentage by source 181 CTotal 7 26 33 18 16 100

As.ured 4 27 38 12. 5 18. 5 100

IT/, the bLSi. of financing agre nt onclded or onntLoint of conclusion.

SoQ-rc- Ministere d. Plan at des Travaun Poblic.

TABLE XXX

UPPSR VOLTA: EXTEIiNAL AID FOR INVESSTMEN - AUT'YHORIZATIONS 1961-1'66

(In millions of FhA francs)

1961 1 962 1963 1 96)4 1 9'65 '9 1)66 -l-__Pur-,ose _f __a. Perce,n

Studies 20)9 134 153 343 122 1)4 1,145 100 6.3of which FAC 209 93 142 37 30 _ 610 93

FED - )41 - 3 3 - 4h L

Production 1,971 2,535 3,78 650 1,503 373 4,4l( 1/ IW oS.9of which FAC 4°5 50i3 446 336 1.104 621 3,395 L2

FED 1,479 2,000 - 226 ,73 - 3,977 41

Infrastructure 60c 1,135 574 524 507 1,130 4,477 lou 2)4.5of-which FAC 173 64 1(0 212 25 - 574 13

FED 123 )450 330) 184 231 96() 2,273 51

Social sector 1/ 2,007 359 442 h47( 313 678 h,272 100 23.J3of which FAC 139 26(9 2)46 261 163 13)4 1,262 30

FED 1,730 - - - - 202 1,932 35

Total ~ ~ ~ ~ ~ ~ -4,79 (,13 2 C 1,3 2(,4'1 2,C\ 1. -,30 uiouaw L{~~~~~~~(YL~4 -L~ U-) c UL-4u ) ~uU C.t41 . c IUU' IL,)kj U0)

FED disbursementsfnr invnfprmpnt 267.6- 700 -1 713=l 9015 1,53 .0 1,161.2 5A05 7

I of which COFAF 9QOC million for the cnnstruiction of dams, (<67 million hyr F'l:( :-nr

2,398 million by FED)

j Data on FAC disbursements unavailable.

TABLE XXXI

TTDIDF U'nT I'TA TDTISTTT DQ ThTSPQ OF T A T hI 1OAA§19 oA,

T( PILll U n o A fn ).---

France 2,8A1 3,598 3,211For investment (1,190) (1,678) (1,343)

Technical assistance / (753) (970) (1,037)

Siubventions to equipment budget (523) J (45u) (45G)

Scholarships (135) (126 ) ( lL4)liilitarv ass-,stance (86) (76) (126)Other (154) (298) (115)

Urropean Economic Commuriity 1,362 j 577 1,198

United Nations a!nd Specialized Agencies 277 209 444

FederaL Rtepublic: of Germany 126 105 164

U.S.A. 189 166 .

China 67 51 78

Israel 13 7 5

Other (public and private) 156 187 411

Total 5,031 4,900 5,511

j Net o.l Voltaic contribution of CFAF 227 million in 1966, 167 million in 1967

and 121 mi.Llion in 1965.T Including CFAF 223 mi:llion granted in 1965 and utilized in 1966.

3/ For 1966 investment a:id only.

Sour ce: Minis t6re du Plan et des Travaux Publics.

TABLE XXXII

YTtr'1X vrnr IA n-TUJE T Fr'IC TATA vfr ICETDv BY FED TTrO -I' O 1AC

(In millions of US dollar eauiva±entzu

first ftuProj4ects Date financing Total Sum Expenditur

____________ commitment contracted

EducationConst-muct-.on. of 50 p-rim-ary sch,ools 27. i1. 6" 1,131,:.225 Centres for Rural Education 17. 3.61 2,422 2,422National School for Administration 4 * 1 1,30 1 9j5

HealthSanitary infrastructure and equipm. 12.11.61 3,840 3,6,59Campaign aguaziL onchocerciasis(eonuJ ... 22L6.I. '4

Soil Cone Ivc_ 13. 6.61 L43-LL4 J4,3)I

'own Water SupplyWater supply for Kaya, Koudougou

and Ouahigouya 17. 3.61 1470 1470Water and sewerage for Ouagadougou 20.12.62 1,764 1,7614Extension for water distribution

svs-tem for Ouagadougou 8.11.68 729

Rural Water CSupply and Dams:Construction of 3 dams 16. 6.60 380 3;0Construction of 6 earthen dams 17. 3.61 1,599 1,5''9Construction of dams 20. 7.62 7,749 7,7ioWells for population andc livestock 16. 8.60 158 1l'8

LivestockSecond phase of campaign vs.

renderpest 6. 5.64 789 7ci9

cj_tudies o965896

P t2a L 26,870 1/ 26,5C6

- continued -

TABLE XXXii

UrrPrP VULlA: PROECTS lil'vwAND HY rFD TO E,1'D uO 1969

(cont.)

Second FEDProjects Date financing Total Sum Expenditures

commitment contracted

EducationConstruction of center for the

training of female artisansat uuagadougou 2.12.66 341 296

HealthCampaign vs. onchocerciasis 10. 1.66 366 371

Town Water SupplyReinforcement of' water supply

for Ouagadougou 20. 6.60 2,512 / 60Water and electricity supply for

textile factory at Koudougou 21. !3.67 1,33b 669

Development ORDsYatenga 14.12.65 952 761Banfora 23.10.67 1,001 492

Rural Water Supply'Wells with human investment 2. 6.66 119 121

Other Rural DevelopmentSeed treatment and treatment

of stores 6. 3.68 923 h90

Livestockindustrial abattoir at O0agadougou 18.9.69 2.107 2/

RoadsModernization of Bobo-Dioulasso

rnoa tn Faramana 212.6 4,333 292LModernization of Ouagadougou-Po-

Ghana frontier road 2)4. 5.67 I,305 1,7)4-Modernization of Ouagadougou-Koupela

road (1st s-+re tch Q _ -

Studies, technical assistance andsupervision, etc. - 2,230 1,612Ouagadougcrou, Kaya, Dori road sticr 1. 7.65 511 511*Fadva AMouuma roadC st dy 3 . - 2.6 1 193 I v

tI'otal 20,Lt65 // Q,

/ Total initial commitments - 2b,311,0002/ CommitmentsJ Total initial commitments - 28,260,000 Source: FED

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