Poverty Reduction Support Credit (8)

closed

The Eighth Poverty Reduction Support Credit Project (PRSC-8) aims to support the acceleration of real growth and the reduction of poverty incidence in Burkina Faso by supporting action to: (i) improve the investment climate and promote exports; (ii) improve access to basic services through deepened decentralization; and (iii) promote efficiency, transparency and accountability in the use of public resources through enhanced public financial management. The measures supported by the PRSC-8 are expected to have a significant positive direct impact on poverty reduction. Specifically, the improvement in the investment climate and the promotion of exports supported by the proposed operation will sustain economic growth. The reforms in public service provision through decentralization will improve access of the poor to education, health, water, and sanitation services, support their greater participation in the growth process and sustain progress towards the Millennium Development Goals (MDGs). The strengthening of public financial management is expected to enhance efficiency, transparency and accountability in public resources use. Such measures will also increase the country's absorption capacity for external resources. Burkina Faso continues to be vulnerable to commodity price fluctuation, further increases in oil and food prices could undermine macroeconomic stability and progress made in poverty reduction. High oil prices drain international reserves and increase petrochemical, electricity and transportation costs with adverse impact on the overall economy. Increased world prices on basic food commodities translate into higher inflation and hurt the poor, particularly in urban centers.