Policy reports

Abstract:

• This is the sixth edition of the Central African Republic Economic Update. Each edition of this annual report presents an overview of the Central African Republic’s (CAR) evolving macroeconomic situation, followed by a detailed exploration of a specific topic. The first chapter presents the country’s recent economic developments, macroeconomic outlook and risks. The second chapter of this edition discusses fossil fuel subsidies, which not only represent a non-negligible fiscal burden in CAR, but also favor wealthier households and introduce environment and market distortions, driving fuel shortages for instance.

Abstract:

• It is now clear that a narrow focus on the growth of gross domestic product (GDP) is insufficient to achieve humanity's aspirations for sustainable prosperity. Well-functioning ecosystems and educated populations are requisites for sustainable wellbeing. These and other too-often-neglected ingredients of national wealth must be addressed if the development path is to be sustainable. The Changing Wealth of Nations 2021: Managing Assets for the Future provides the most comprehensive accounting of the wealth of nations, an in-depth analysis of the evolution of wealth, and pathways to build wealth for the future. This report, and the accompanying global database, firmly establishes comprehensive wealth as a measure of sustainability and a key component of country analytics. It expands the coverage of wealth accounts and improves our understanding of the quality of all assets, notably, natural capital. Wealth, the stock of produced, natural, and human capital, is measured as the sum of assets that yield a stream of benefits over time. Changes in the wealth of nations matter because they reflect the change in countries' assets that underpin future income. Countries regularly track GDP as an indicator of their economic progress, but not wealth, and national wealth has a more direct and long-term impact on people's lives. This report provides a new set of tools and analysis to help policy makers navigate risks and to guide collective action. Wealth accounts can be applied in macroeconomic analysis to areas of major policy concern such as climate change and natural resource management. This report can be used to look beyond GDP, to gauge nations' economic well-being, and to promote sustainable prosperity.

Abstract:

• The degree of success Burkina Faso can achieve in terms of poverty reduction and growth in the future will depend on its ability to facilitate economic transformation, expand the economic base beyond growth in the public sector (financed mainly by aid inflows) and the mining sector, mitigate uncertainties and share the positive impacts of economic growth with the majority of citizens. This implies to properly support the development of the private sector, the only one that can create economically sustainable jobs. This type of concern is at the core of this report. The key challenge for Burkina Faso in the current COVID-19 context is now to overcome key persisting constraints to ensure recovery from the shock, create better jobs, support diversification and growth. There is a broad analytical base in Burkina Faso with the 2019 Country Private Sector Diagnostic and numerous other sector reports that analyses issues related to growth, private sector, and jobs. This report adds to this body of knowledge in two ways. Firstly, although it is a logical follow-up to the 2019 CSPD, it updates its finding to the new context created by COVID-19 and is more granular in its analyses. Secondly, it addresses in detail two important topics that have received limited analytical attention in Burkina Faso so far, entrepreneurship and technology adoption. These are critical to for increasing productivity and supporting economic transformation.