|
Policy Areas |
Objectives |
Strategies/Measures |
Timetable |
Technical Assistance Needs |
|
Economic and financial management |
Strengthen economic management |
Strengthen the authority of the Interministerial Committee on Economic Adjustment and Structural Reform |
From Jan. 1998 |
|
Start up the auditor's office based on a priority work program |
Sep. 1998 |
Bilateral, multilateral |
|
|
Strengthen the technical assistance provided to the Ministry of Finance |
1998–2000 |
IMF, bilateral |
|
|
Transmission by the Technical Committee of monthly reports and statistics on the implementation of the structural adjustment program to the IMF, World Bank, and active members of the donor community |
From Jan. 1998 |
|
|
Improve information and data made available to the public |
Prepare a program to improve the macroeconomic and financial database and implement the program |
June 1998 |
IMF, World Bank, bilateral |
|
Publish on an annual basis government finance, national accounts, and balance of payments statistics, as well as social and poverty indicators |
From 1999 |
|
|
|
Prepare a financial and economic information program and establish a working group responsible for disseminating such information |
Jan. 1999 |
|
Public finance |
|
|
|
Public resource
management
|
Strengthen staff skills and efficiency |
Adopt a staffing plan for supervisory positions based on the new organization chart (introduced in 1997) |
Sep. 1998 |
Needed |
|
|
Establish a staff training program |
June 1998 |
|
|
|
Introduce an annual performance appraisal system |
Sep. 1998 |
|
|
Strengthen tax administration |
Establish quarterly targets for tax collection and monitor performance |
From 1998 |
|
|
Implement the database project covering all taxpayers subject to accounts-based taxation (régime réel), including those taxed on the basis of actual income/profits; review the tax bases, assessment procedures, and liquidation procedures |
June 1998 |
Bilateral |
|
Improve functioning of Directorate of Direct and Indirect Taxes |
Revise the tax return forms to reflect the latest changes in the annual finance laws and supplementary budgets |
1998–2000 |
|
|
Prepare a manual of procedures for the directorate |
Sep. 1998 |
|
|
Improve functioning of Customs Directorate |
Suspend customs duty exemptions, with the exception of those granted under the Vienna Convention and UDEAC Act 2/92 of June 1992 (Code C120) |
1998 |
IMF |
|
Assess the efficiency of the import inspection company |
Dec. 1998 |
|
|
|
Strengthen procedures for monitoring exports of wood products at the Ministry of Water, Forests, Hunting, and Fishing |
From March 1998 |
|
|
|
Collect petroleum duties and taxes at the border |
From Jan. 1998 |
|
|
Improve functioning of Treasury Directorate |
Implement the recommendations of the audit: |
|
|
|
- Close unlawful ministerial bank accounts
|
June 1998 |
Bilateral |
|
|
- Present monthly Treasury accounting statements (including and excluding annexed budgets), within seven days after the end of the month
|
From Jan. 1998 |
|
|
|
Prepare a monthly cash budget at the beginning of each year |
From 1998 |
IMF |
|
|
Prepare a procedures handbook |
June 1998 |
IMF |
|
|
Collect tax arrears systematically |
1998–2000 |
|
|
Improve functioning of Payroll Directorate |
Establish a unified roster and reconcile Ministry of the Civil Service and Ministry of Finance data on civil service jobs on a monthly basis |
From March 1998 |
|
|
Improve functioning of Budget Directorate |
Prepare the budget in line with Finance Law regulations, and present the annual budget for the coming year to the legislature by December of the closing year at the latest |
From 1998 |
Bilateral |
|
|
Eliminate all extrabudgetary operations |
From March 1998 |
|
|
|
Prepare a monthly report on budget execution (including annexed budgets) by ministry and principal economic categories (wage bill, goods and services, transfers, etc.) on a commitment basis and on a cash basis |
From March 1998 |
|
|
|
Prepare a quarterly report on financial and physical execution of the public investment program (PIP), one month after each quarter |
From 1998 |
|
|
|
Prepare a quarterly report on the execution of the Road Fund budget, one month after each quarter |
From March 1998 |
|
|
|
Adopt clear guidelines on the use of transfers and data reporting by municipalities |
Sep. 1998 |
|
|
|
Prepare a study on the administrative and financial management of municipalities |
1999 |
Bilateral |
|
Computerize operations |
Establish computer links between all tax revenue departments and with the imports inspection company |
Sep. 1998 |
Bilateral |
|
|
Strengthen accounting procedures at the Directorate of Direct and Indirect Taxes for monitoring delinquent taxpayers |
1998 |
Bilateral |
|
|
Update the SYDONIA system at the Customs Directorate, with a view to ensuring its security and incorporating all customs clearance procedures |
1998 |
Bilateral, multilateral |
|
|
Streamline and computerize the processing of cash and the accounting operations at the Treasury Directorate |
June 1998 |
Bilateral |
|
|
Introduce a new public debt management system |
June 1998 |
|
|
|
Strengthen expenditure procedures and prepare a procedures handbook at the Budget Directorate |
Sep. 1998 |
Bilateral |
|
|
Establish and manage the unified roster at the Payroll Directorate; restructure ONI and place it under the authority of the Ministry of Finance |
Sep. 1998 |
Bilateral |
Fiscal policy
|
Increase the primary surplus to 1.3 percent of GDP by 2000 |
Conduct a fiscal policy that is compatible with the achievement of medium-term viability |
1998–2000 |
|
|
Increase total revenue from 7.6 percent of GDP in 1997 to 10.8 percent in 2000 by broadening the tax base and simplifying the tax system |
Implement the CEMAC tax and customs reform:
|
|
|
|
|
- Introduce a government contracting procedure on a tax-inclusive basis
|
Sep. 1998 |
|
|
|
- Suspend tax and customs exemptions included in the Investment and the Mining Codes
|
May 1998
|
|
|
|
- Renegotiate all special tax and customs agreements (conventions d'établissement)
|
June 1998 |
Bilateral |
|
|
Conduct a study regarding the replacement of the turnover tax by a value-added tax (VAT) |
1998–99 |
IMF |
|
|
Introduce a full-fledged VAT with a single rate and threshold |
Jan. 2000 |
|
|
|
Complete research regarding the introduction of a simplified tax system for small and medium-sized businesses (impôt synthétique) |
Sep. 1998 |
|
|
|
Implement the above tax system |
Jan. 1999 |
|
|
|
Implement the recommendations of the technical assistance mission of the IMF's Fiscal Affairs Department of March 1998 |
1998–1999 |
IMF |
|
|
Complete the study on the taxation of the coffee sector |
March 1998 |
European Union (EU) |
|
|
Implement the study's recommendations |
May 1998 |
|
|
|
Complete the study on the taxation of the cotton sector |
April 1998 |
EU, bilateral |
|
|
Implement the study's recommendations |
Jan. 1999 |
|
|
|
Complete the study on the taxation of the diamond sector, including the use of annual auctions of licenses, introduction of a system of quarterly advance payments against all tax obligations based on production targets or economic programs, and the replacement of posted values by international reference prices |
March 1999 |
Bilateral, IMF |
|
|
Implement the study's recommendations |
May 1999 |
|
|
|
Introduce quarterly advance payments against all tax obligations from forestry companies, based on production plans |
Jan. 1999 |
|
|
|
Complete the study on the simplification of the income tax system |
Sep. 1998 |
IMF |
|
|
Implement the study's recommendations |
Jan. 1999 |
|
|
Limit the growth of government expenditure; redirect it toward the priority sectors of health and education and maintenance of infrastructure in the context of the three-year rolling public investment program (PIP) |
Implement the project evaluation procedures recommended by the World Bank in 1995 |
From 1998 |
World Bank |
|
Prepare a training program to improve project analysis and monitoring |
March 1999 |
World Bank |
|
Conduct an annual review of public expenditure, including the PIP |
From 1999 |
Bilateral/World Bank |
|
Improve procedures for monitoring implementation of the PIP, based on the public expenditure review |
From 1999 |
|
|
Reform the civil service:
|
|
|
|
|
- Set an annual ceiling on the total number of civil servants (including contractual and temporary staff)
|
From 1998 |
|
|
|
- Audit civil service staffing levels
|
June 1998 |
|
|
|
- Based on this audit, redeploy staff according to sectoral priorities and personnel needs within the established ceiling
|
June 1998 |
|
|
|
Implement the training program |
April 1999 |
|
|
|
Improve government contracting procedures by placing the National Contracts Committee (CNM) under the Ministry of Finance, and make procurement decisions based on data provided by the government contracts unit, including the reorganized CNM and sworn agents |
April 1998 |
Bilateral |
|
|
Reorganize the armed forces and security personnel |
1998–1999 |
|
|
|
Formulate and implement an 18-month demobilization and reinsertion program |
1998–2000 |
UNDP |
Public debt
management
|
Eliminate all domestic and external payments arrears |
Do not accumulate new domestic arrears |
From March 1998 |
|
Inventory and validate domestic arrears at end-December 1997 |
May 1998 |
|
Establish a payments schedule on the basis of set priorities |
June 1998 |
|
Clear external arrears |
Dec. 1998 |
|
Improve external debt management system |
1999 |
Needed |
Monetary and credit policy |
Control inflation and support the parity of the CFA franc through appropriate control of money and credit expansion |
Increase reliance on indirect monetary policy instruments |
1998–2000 |
|
Eliminate maximum lending rates and minimum deposit rates |
In line with BEAC timetable |
|
Eliminate the refinancing mechanism for medium-term credit (guichet B) |
In line with BEAC timetable |
|
|
Privatize and strengthen the financial sector |
Liquidate BNCD, BCI, BCAD, and BND |
Sep. 1998 |
|
|
Complete the financial restructuring and privatization (split-liquidation) of BICA: |
|
|
|
- Audit of the BICA portfolio by COBAC
|
May-June 1998 |
|
|
|
- Issuance of tenders for privatization of BICA
|
Sep. 1998 |
|
|
|
Audit of UBAC portfolio by COBAC |
May-June 1998 |
|
|
|
Decide on the modalities for privatizing UBAC |
Sep. 1998 |
|
|
|
Pay up government share in the capital of BPMC |
Dec. 1998 |
|
|
|
Ensure that the government does not participate in the capital of new financial institutions |
From Jan. 1998 |
|
External sector policies |
Reduce the level of protection |
Eliminate gradually the temporary surtax on imports of goods that were previously subject to quantitative restrictions |
Per CEMAC timetable |
|
|
|
Streamline and harmonize exchange regulations with other CEMAC member countries |
Per CEMAC timetable |
|
|
|
Study the economic impact of taxes on foreign trade in order to maintain the competitiveness of exports |
Sep. 1998 |
|
|
|
Implement any recommendations made |
1999–2000 |
|
Price policy |
Strengthen market mechanisms |
Remove existing controls on prices or markups, including those on petroleum, electricity, transportation, water and telecommunications, in line with the program for privatizing the relevant enterprises |
1998–1999 |
|
Structural reforms |
|
|
|
Civil service
reform
|
|
Submit for parliamentary approval amendments to the law on the civil service |
Sep. 1998 |
|
|
Implement corresponding measures, including the establishment of new promotion rules (replacement of system of automatic individual pay increases by a selective, merit-based system) and new career streams |
Jan. 1999 |
|
Labor Code
|
Enhance labor market flexibility |
Simplify the Labor Code and adapt the new code to the needs of a market economy: |
|
|
|
- Prepare draft of new Labor Code
|
Sep. 1998 |
|
|
|
- Consult with trade unions, employers' associations, and the International Labor Office (ILO)
|
From Oct. 1998 |
ILO |
|
|
|
June 1999 |
|
Privatization
and reform of
nonfinancial
public
enterprises
|
Reduce the role of government in commercial and industrial activities |
Replace the multiple existing agencies responsible for the management and privatization of public enterprises by a single structure under the authority of the government |
April 1998 |
|
Ensure that the Directorate for Public Enterprises prepares comprehensive annual accounts for 1997 and business projections for all public enterprises |
End-1998 |
|
|
|
Allow no further creation of public enterprises and establishments nor any new investment by the government in semipublic companies |
From Jan. 1998 |
|
|
|
Privatize PETROCA: |
|
|
|
- Distribution of petroleum products
|
May 1998 |
|
|
|
- Storage of petroleum products (partial)
|
May 1998 |
|
|
|
- Sale of all government's shares in the assets-management company resulting from the privatization of PETROCA
|
1998-2000 |
|
|
|
Offer for sale part of the government's shares in SOCATEL |
May 1998 |
|
|
|
Complete the administrative liquidation of all nonfinancial enterprises that have ceased operations (Caistab, Centra-Hydro, InterRCA, LCA, Lonaca, Lorombois, Socalamines, Socefil, and Conseil Centrafricain des Chargeurs) |
June 1998 |
|
|
|
Privatize the management of ENERCA: |
|
|
|
|
May 1998 |
|
|
|
- Selection of successful bidder
|
June 1998 |
|
|
|
- Submission of audit report
|
Aug. 1998 |
|
|
|
- Launching of tenders for full farming out
|
Sep. 1998 |
|
|
|
- Selection of new operator
|
March 1999 |
|
|
|
- Finalization of negotiations
|
May 1999 |
|
|
|
Complete the court-ordered liquidation of MANOVO |
Aug. 1998 |
|
|
|
Complete the merger of ONMO and ONIFOP |
June 1998 |
|
|
|
Complete the audits/assessments and privatization plans for ICA, SCET-Sofitel, SHDC-HC, BARC, SEGA |
Sep. 1998 |
|
|
|
Launch tenders processes for above-mentioned companies |
Oct. 1998 |
|
|
|
Open and evaluate bids |
Dec. 1998 |
|
|
|
Evaluate the audits of SOCATRAF and ACCF |
June 1998 |
|
|
|
Complete the merger of SOCATRAF and ACCF, and reduce the government's holdings from 51 percent to 49 percent |
Sep. 1998 |
|
|
|
Reorganize SODECA and SNE based on the CFD study |
Sep. 1998 |
|
|
|
Initiate study on the privatization of Centrapalm |
July 1998 |
|
|
|
Review the legislative and regulatory framework of the petroleum, telecommunications, energy, and water sectors to open them up to competition |
1998–1999 |
|
Judicial system
|
Improve the functioning and reliability of the judicial system |
Study the operations and future needs of the judicial system |
1998 |
|
Strengthen property rights, including the rights of women |
1998–1999 |
|
|
|
Adapt and strengthen business legislation and regulations in line with regional initiatives such as OHADA |
From 1998 |
|
Social policy
|
Reduce poverty and meet basic needs |
Prioritize public spending and strengthen cooperation with private groups and organizations, including NGOs, in the provision of social and commercial services |
1998–2000 |
|
Social security
|
Strengthen the finances of the social security office (OCSS) |
Complete a detailed study of the financial and actuarial position of the OCSS (further to the strategic audit by the ILO in 1995) |
June 1998 |
ILO |
|
Revise the legislation on the social security system |
1999–2000 |
|
|
|
Pay contributions of government employees on a regular basis |
Jan. 1998 |
|
|
|
Reform OCSS management |
Starting end-1999 |
|
Health
|
Increase access to drinking water |
Prepare a general national policy statement on water |
Sep. 1998 |
|
|
Increase the availability, accessibility, and use of primary health services and essential generic drugs |
Organize an external evaluation of the 1994–98 PNDS and formulate a new plan based on priorities and available resources |
Dec. 1998 |
WHO, UNDP |
|
Implement the plan |
1999–2000 |
World Bank, WHO |
|
|
Develop a health charter (requiring indices, revision of standards, current inventory, and implementation of charter) |
Dec. 1999 |
WHO, EU, German and French coop. |
|
|
Gradually introduce a system to collect data on cost recovery |
July 1998 |
|
|
Strengthen legal and regulatory framework |
Ensure the adoption of legislation and regulations on the creation of the National Pharmaceuticals Fund and its supervisory agencies and on the organization of the medication-dispensing unit |
April 1998 |
|
|
|
Revise the laws on the access of NGOs, communities, nonprofit and private enterprises to the provision of health care and distribution of drugs |
1998–99 |
|
|
|
Implement the new regulatory framework |
1999–2000 |
|
Education
|
Improve access to schools, and increase the literacy rate and the rate of successful completion of primary school |
Prepare National Education Development Plan together with partners |
Dec. 1998 |
World Bank, UNDP, UNESCO |
|
Prepare a staffing plan for each school district |
July 1998 |
|
Implement the plan |
Aug. 1998 |
|
|
Reassign teachers to schools based on staffing plans |
Sep. 1998 |
|
|
|
Prepare a training plan for school managers |
Dec. 1998 |
|
|
|
Implement the plan |
1999 |
|
|
|
Inventory school infrastructure of each school district |
Dec. 1998 |
|
|
|
Establish a Directorate General of Private Education and Promotion of Educational Partnerships |
June 1998 |
|
|
|
Finalize the proposal for community participation in the financing and management of primary and secondary school personnel and infrastructure |
July 1998 |
|
|
Strengthen legal and regulatory framework |
Implement the Orientation Law, in particular to encourage the participation of NGOs, nonprofits, communities, and the private sector in educational services |
1998–99 |
|
|
|
Implement the new regulatory framework |
1999–2000 |
|
Urbanization
|
Promote regional development around major centers of economic activity |
Review and reinforce the operations of the Urban Development and Equipment Fund (site development) |
June 1998 |
|
|
Strengthen municipal institutions through the mobilization of own resources to finance infrastructure maintenance (refuse collection, drainage system, and neighborhood improvement) |
Sep. 1999 |
World Bank |
Sectoral policies |
|
|
|
Agriculture
|
Promote efficiency and diversification in the production and export of agricultural products |
Expand the operations of extension and development services, and improve supply of seeds and agricultural inputs |
From 1998 |
|
|
|
Strengthen farming and cattle-raising associations, groups, and federations and the mutual credit system, and create agricultural zones |
From 1998 |
|
|
|
Strengthen the system of farming, hunting, and pasture rights |
1999–2000 |
AfDB |
Forestry
|
Encourage the private sector to apply concession management methods that allow for reforestation |
Implement the recommendations of the 1997 audit of the forestry sector: |
|
|
|
|
Jan. 1998
|
|
|
|
- Inventory species by concession
|
Dec. 1999
|
|
|
|
- Apply variable rental taxes
|
Jan. 2000
|
|
|
|
- Prepare development and operational plans (PAEs) based on the recommendations from the taxation and forestry audits
|
1998–2000
|
|
Mining
|
Prepare a medium-term strategy for mineral resource development by the private sector |
Submit new Mining Code for parliamentary approval |
Dec. 1998 |
|
|
Issue mining policy statement |
Dec. 1998 |
|
|
Strengthen monitoring of diamond production |
From 1998 |
|
|
|
Undertake a study of the medium- and long-term global strategy on industrial production in the diamond sector |
1999–2000 |
World Bank |
Transportation
|
Reduce transportation costs by improving the road network, increasing competition in the sector, and simplifying regulations |
Restructure the Road Fund and improve its operation |
Dec. 1998 |
EU |
|
Prepare an adequate methodology for planning the road network |
1998–99 |
EU |
|
Develop a transportation sector strategy |
Oct. 1998 |
|
|
Apply the strategy |
Dec. 1998 |
|
Environment
|
Improve the management of natural resources
|
Finalize the National Environmental Action Plan (PNAE) |
June 1999 |
|