BF - DPO - Growth and Compet. Credit 3

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This program document proposes the third operation in a programmatic series of four Growth and Competitiveness Credit (GCC) development policy operations undertaken in partnership with the Government of Burkina Faso. Burkina Faso is a low-income landlocked country in a volatile region; consequently, it faces significant structural economic vulnerability. However, despite its general political stability and solid macroeconomic management Burkina has not experienced broad-based private-sector growth or widespread employment creation. The reforms supported by the proposed series will help create a dynamic and diversified private sector capable of translating high growth rates into broad-based improvements in employment and income. Burkina is one of the few countries in the West Africa region that has not experienced a civil war or armed conflict during these last two decades. The country has parlayed its record into foreign-policy strength, and it currently plays a significant role in mediating and resolving conflicts in several nearby countries, including Cote d’Ivoire, Guinea, Togo, and Mali. However, social and political unrest in 2011 called Burkina’s stability into question. The municipal and legislative elections held in December 2012 brought about a new distribution of roles between the opposition and the ruling coalition led by the president, which won a slim majority of seats in the legislature. The government’s resolve to address systemic governance issues and the grievances raised by recent social protests has already yielded positive results, as demonstrated by the recent expansion of cash transfers to vulnerable populations.