What Are the Current Issues in Burkina Faso - Essay Example

INTRODUCTION

Burkina Faso gained independence from France in 1960. Previously known as Upper Volta, it is located in West Africa and North of Ghana. It is a landlocked Sub-Saharan country and surrounded by six countries. Its official language is French. Burkina Faso comprises 60 different ethnic groups with different cultures, races and languages and more than half of the population are Mossi people.

Burkina Faso is one of the poorest countries in the world. Unfortunately, it is rated as an underdeveloped country even by West African standards. It is considered as a developing country. In 2015, Burkina Faso has been placed at the 183rd position with 0.402 scores in the low human development category among the 188 countries (UNDP, 2015).

Captain Thomas Sankara seized power in 1983, and he was a charismatic left-leaning leader in West Africa, and he believed in pan-Africanist theory. Then overtaken by Blaise Compaore, who govern the country for 27 years and then in 2014, his government was overthrown.

Cotton, gold, and livestock are Burkina Faso’s key exports; their major export partners are China and Turkey. More than 80 percent of the population is reliant on agriculture.

Burkina Faso is facing many development problems, and some of the problems became a fence to achieve better economic progress and their policies to achieve sound growth rate. Some of their problems and their policies are undertaken by the government of Burkina Faso are given below.

THE DEVELOPMENTAL PROBLEMS OF THE SELECTED COUNTRY

Burkina Faso is facing many developmental problems; some of the problems are given below.

• Slow Growth Rate

From the past few years, the annual growth rate of Burkina Faso was recorded approximately 6 percent in 2014, its growth rate slowed down to 4 percent because the prices of gold and cotton have fallen by 27 percent and 8 percent respectively. These circumstances affected public finance specifically in a turndown in investment and public revenue (The World Bank, 2016).

• High Unemployment Rate

According to the CIA World Factbook, Burkina Faso is facing 77 percent unemployment rate after Liberia and Zimbabwe (CIA, 2015a). The high unemployment rate of Burkina Faso leads to high crime rate. In major cities of Burkina Faso, street crime including pick pocketing, purse snatching, pick pocketing and cell phone theft is quite common (OSAC, 2015) and it became a major concern to the citizen and also became a major barrier towards economic development.

• Extreme Hunger and Poverty

People of Burkina Faso are striving for food and shelter. In 2015, Burkina Faso ranked 87 out of 104 with the score of 31.8 on the global hunger index. It has a population around 18 million and according to the Human Development Report, 44.6 percent of the population live below the poverty level, on less than USD 1.25 per day (WFP, 2016). The government provides subsistence to more than 80 percent of the population. Multidimensional poverty has a strong geographical element; since it tends to be highest in rural areas of Burkina Faso, it affects 43 percent of the population in urban households and over 94 percent of the population in rural households (UNDP, 2014).

• Low Literacy Rate

In Burkina Faso, more than half of the adult population is unable to read and write. According to the United Nations Educational, Scientific, and Cultural Organization(UNESCO), the literacy rate of Burkina Faso is around 3.6 million or 36 percent of age group (15 years and older) while literacy rate for adult male population is around 43 percent, and literacy rate for adult female population is around 29 percent (UNESCO, 2015). Youth is considered a key driver towards country’s growth. But unfortunately Burkina Faso youth are facing unemployment, lack of quality education and terrorism with no proper direction and youth literacy rates are 47.56 percent for males and 43.24 percent for males and females. The overall youth literacy rate is 45.43 percent (Country Meters, 2016). Hence, it became a fence towards economic development.

• GDP Growth

GDP growth rate of Burkina Faso was 4.5 percent in 2015, as compared to 4 percent in 2014 while 9.5 percent GDP was recorded in 2012 (COFACE., 2016). Cotton is the main export of Burkina Faso, and it counts for 30 percent of their GDP. Higher GDP growth helps in higher average income, lower unemployment, and lower government borrowing but Burkina Faso GDP growth rate is moving towards a decline in the last five years. In the 1970s, there was 234 percent economic growth but after that, they could not sustain their economy. However, economic growth persuades investment, but Burkina Faso is far behind to achieve sound economy.

• Growth Vulnerable To Commodity Price Movements

Burkina Faso mainly depends on cotton and gold production, which represents more than 80 percent of export income but in 2014 and 2015; there was a drop in commodity prices and fall in the prices, 27 percent of gold and 8 percent of cotton (The World Bank, 2016). This condition has an impact on public finance, revenues and persistent decline in investment in Burkina Faso. There might be some deficiency in the production, but there is a string of hope can be tied to.

• Highly Dependent On Foreign Aid

There are shortcomings in the infrastructure, and limited commodity and electricity production. Burkina Faso usually has had a foreign trade deficit and their imports are more than their exports. Burkina Faso heavily depends on foreign aid from France, World Bank, European Union (EU), United States and the African development fund (Rupley, Bangali, & Diamitani, 2013). Burkina Faso is in the list of official development assistance (ODA), and Burkina Faso is one of the neediest countries of sub-Saharan countries.

• Budget Deficit

Due to low prices of cotton and gold, it generates low income, and it is expected to remain constant in 2016, and it will affect the low prices of gold and cotton. According to CIA World Factbook, Burkina Faso has a budget deficit of 2.60 (CIA, 2015b). Burkina Faso is facing usually facing budget deficit from the last few years, and debt is increasing on Burkina Faso year by year. IMF announced programs to help fund this deficit and their debt is expected to remain constant, even though Burkina Faso relies on foreign aid.

THE POLICIES UNDERTAKEN BY THE COUNTRY’S GOVERNMENT TO ADDRESS THESE PROBLEMS

• Building New Industries

The government of Burkina Faso has adopted a strategy to promote domestic industries; it will prevent the country from taking the foreign loans. Concerning industry, it is in its development stages, mostly based in Banfora, Bobo-Dioulasso, Ouagadougou, and Koudougou. Their industries are producing food processing items, textile products, and other products to rely less on imports and which is subjects to pay high tariffs. It will build up the synergies between commercial investments and development cooperation in Burkina Faso. The government continues to promote the medium and small enterprise and industries which lead to generate more revenue and increase productivity.

• Burkina Faso and IMF

IMF has started a program called the Strategy for Growth and Sustainable Development (SCADD) for the development in Burkina Faso, which will estimate the funding plan and support to accelerate economic growth. An estimated target of annual growth rate of Burkina Faso is 10.04 percent. SCADD will help to improve the business climate of Burkina Faso, which will enhance the productivity and promotes the green environment.

IMF efforts to improve the fiscal program and based on the better financial performance, it will help to control public spending and help the fiscal deficit at 4 percent of GDP. The various programs under SCADD will result in the good economic performance of Burkina Faso, and capital spending will rise to 14 percent per year during the five year plan (IMF, 2012).

• Poverty Reduction

Reducing poverty can only be achieved with growing economy but unfortunately, there was a sudden drop in the price of cotton and gold. The government is focusing on the real GDP growth rate of 7 percent per year, per capita GDP growth of at least 4 percent and putting inflation rate under 3 percent. The Poverty Reduction Strategy (PRS) of Burkina Faso for reducing poverty in rural areas can be a good initiative and increase the income of farmers, and rural women can play an important role in rural development (IMF, 2008). Reducing the factor cost including water, energy, and transport are higher as compared to regional countries can be used to reduce the poverty in Burkina Faso.

• Increasing Literacy Rate

The government of Burkina Faso has initiated the Bilingual Education Programme (BEP) which educates the people of Burkina Faso in 13 regions, which helps to increase the literacy rate and give political and cultural awareness. BEP has different aims including access to education throughout the country, to provide quality education through formal and informal schools. BEP has started to train the teachers to enhance their skills and to increase the capability of the teachers. BEP has a special focus in rural areas because of lack of educational awareness. In rural areas of Burkina Faso, child labor is using in rural areas, and there is low literacy rate as compared to urban areas of Burkina Faso. BEP has launched educational programs to overcome high illiteracy rate in their country. BEP contributes in Burkina Faso development and its economic growth (UNESCO, 2010). Many children, as well as young people, have benefited from BEP and them, some have acquired a professional qualification.

• Promoting gender based approach to improve the economic and social condition of women

Women are the part of our society; they should be equally treated as by men. The literacy rate of women is half as compared to men. Discrimination is rife, especially in the rural areas of Burkina Faso and the government has taken an initiative to give them proper education, promote them in economic and social life. Women of Burkina Faso have limited access to employment opportunities, healthcare, land, and they participate less in decision making and public life. Discrimination is found in all social categories all over the country. The government of Burkina Faso has adopted strategies to tackle these disparities between men and women. The government is paying attention to human rights and especially the rights of women.

• Stability And Security

The government of Burkina Faso has successfully launched EU-Sahel strategy, which will focus on development and security. It will prevent from radicalization and extremism in Burkina Faso; it will lead to stability, peace and prosperity. Economic community of West African States (ECOWAS) and the government is jointly working together to tackle the situation (DANIDA, 2016a). It will also encounter minor criminal activities in Burkina Faso, which will reduce social tension and motivate economic development.

• Progress towards Millennium Development Goals (MDG)

Burkina Faso is moving towards a better progress over the years. The government of Burkina Faso is focusing on Millennium Development Goals (MDG). Some of the goals of MDG are near towards achievement, including combat HIV/AIDS (MDG 6) and ensure environmental sustainability (MDG 7). Burkina Faso is far behind to achieve primary goals, including eradicating extreme poverty and hunger (MDG 1), in which they have to meet the target of 22.25 percent by 2015. Currently, they have secured 44.6 percent, achieve universal primary education (MDG 2), in which they have to achieve the target of 100 percent of their children to access to schools. However; currently, they have achieved 79 percent and remaining goals are far behind from the target but moving towards better performance as compared to recent years (DANIDA, 2016b).

• The Partnership Policy

Denmark and the government of Burkina Faso have made the partnership from the year 2013 to 2018. The partnership has three main objectives (DANIDA, 2016a). (1) Contribute to the economic growth and employment, which helps to give employment to youth and women, to promote water and land resources and to promote medium and small enterprises which lead to economic and social upliftment. (2) Pay attention towards governance framework and special attention to human rights and wide ranging participation which will change the patterns to govern and will focus more on human rights. (3) Promote sustainable development by focusing on vulnerable groups and poverty eradication. Denmark and the government of Burkina Faso have a focus on various contexts to uplift the economic condition of Burkina Faso.

• Improving Infrastructure And Productivity

The country is focusing on boosting their economy by improving the infrastructure of urban areas and boosting their productivity by paying special attention to the industrial sector. The government of Burkina Faso has the aim to improve the infrastructure of the urban area, and the government wants to steady the commodity prices and to boost up their agricultural sector and its productivity. Currently, the agricultural sector is facing challenges like rainfall fluctuations, access to water, now the government of Burkina Faso is giving the subsidy to the agriculture sector and motivates them to produce more. Improved infrastructure leads to more productivity and improves the economic condition of the country.

• Support Of The International Financial Community

International financial communities like the heavily indebted poor countries (HIPC), International Monetary Fund (IMF) and the World Bank Group's International Development Association (IDA) are joining hands with the government of Burkina Faso to receive assistance from the international financial communities. This helps to reduce debts under the framework, and a number of steps have been initiated to improve their educational and health sector. This initiative will strengthen the economic, political, and social condition of Burkina Faso.

CONCLUSION

Burkina Faso is a third world country and wants help in every aspect of life. There are many barriers towards economic achievement but from the recent years, they are moving towards inclination and achieving economic progress. Different financial institutions like International Monetary Fund (IMF), World Bank (WB), heavily indebted poor countries (HIPC), and the World Bank Group's International Development Association (IDA) are initiating different investment programs in Burkina Faso and helping to bring prosperity in Burkina Faso by eradicating hunger and poverty, promoting primary education, and promoting sustainable economy.

The government of Burkina Faso has started different programs like Bilingual Education Programme (BEP) to give primary and quality education to children and youth, which will bring prosperity in their country as well as economic and social upliftment in their country.

Burkina Faso is listed in the least developed countries because of a high degree of economic vulnerabilities, and weak human assets. If the government of Burkina Faso makes efforts consistently to improve political, economic, social and cultural, by taking different policies including capacity building, eliminate extreme poverty, promote domestic industries and enhance their educational system, then Burkina Faso can increase their growth rate and can achieve sound economy in Burkina Faso.