CIDA disbursements in Benin: Breakdown by aid channels (in $ millions), 2009-2010
Overview
Benin is part of a group of countries where human development is considered low. The United Nations Development Programme ranked Benin 167 out of 187 countries on its
2011 human development index. Half the population of Benin lives on less than US$1.25/day.
Benin's strategic location on the Gulf of Guinea allows the country to generate an annual revenue through re-exportation. The country's economy, however, is unstable. This is due primarily to fluctuations in world markets for the country's cotton production. Given its vulnerability in terms of food security, Benin adopted an emergency food security support program in 2008 to ensure that it would be able to weather the economic crisis forecasted for the following year.
Benin has made tremendous progress in democratic governance, particularly with the transparent and peaceful presidential election held in 2006. The government is also making headway in its efforts to reduce corruption.
However, while the Benin constitution ensures equality between women and men, the literacy rate among women remains twice as low as it is among men and income for women is half as much as it is for men according to the UNDP. A family code was established in 2004 to improve respect for women's rights, but those rights are still too often ignored.
Benin faces environmental problems: desertification in the northern part of the country and deforestation in the southern part. In addition, 40 percent of its people live in vulnerable and deteriorating urban environments.
Benin may reach some
Millennium Development Goals by 2015, including achieving universal primary education and gender equality and combatting HIV/AIDS, malaria and other diseases. The primary school enrolment ratio is 95 percent, which is exceptionally high compared to other countries in West Africa. In 2006, the health services usage was 44 percent-above the initial target of 38 percent.
Thematic Focus
CIDA's programming in Benin is aligned with the Government of Benin's
Growth Strategy for Poverty Reduction (PDF, 1.63 MB, 250 pages) for 2007-2009. The aim of the strategy is to:
- Accelerate economic growth
- Develop infrastructure
- Strengthen human capital
- Promote good governance
- Foster balanced and sustainable development
The goal of CIDA's program in Benin is to help the country stimulate economic growth by supporting the development of a business friendly market and the development of micro, small- and medium-sized businesses.
Economic growth
CIDA is providing significant support for microfinance, helping to stabilize the sector and monitor the institutions more effectively. This includes assisting young entrepreneurs to obtain financial services and supporting the development of small businesses that create jobs.
CIDA is also continuing its support for administrative reform, with the expectation that increased tax revenue and streamlined public administration procedures will help create an environment conducive to economic growth in the country.
Selected examples of expected results
- Approximately 80 percent of microfinance institutions will be registered and 80 percent of their transactions will be digitized
- Among disadvantaged populations, recipients of financial services and support for entrepreneurship will double from $500,000 to $1 million by 2016
Progress on Aid Effectiveness
Benin adheres to the
Paris Declaration on Aid Effectiveness (PDF, 317 KB, 23 pages).
In 2007, the country received an average rating for ownership, harmonization and results-based management. The alignment of donors' activities with national systems was rated average/low. Strengthening of mutual accountability for results is recommended.
Accomplishments 2009-2010
Economic growth
- Simplified administrative procedures, helping to modernize public administration and create an environment favourable to economic growth
- Increased the number of households benefiting from garbage collection by more than 3,700
- Increased by 65 the number of vegetable growers buying household compost to use in their micro-enterprises
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