Attention was especially focused on infrastructural development and the implementation of the free health care program. Another key poverty reducing strategy is the Smallholder Commercialisation Scheme. A robust monitoring and evaluation system has been established. Inadequate domestic capacity negative attitudes and fraudulent behavior toward execution of public contracts, delayed donor disbursement of funds for public works, and limited intra- and intersectoral coordination has been limiting factors. Developing a comprehensive policy framework to regulate behavior of contractors and ensuring timely release of donor funds for projects is needed.
The economic performance has been positive as tight macroeconomic policies prevailed, helped by a remarkable revenue mobilization effort. None of the key indicator targets were met. Fiscal performance improved, but there was an increase in the overall fiscal deficit. Monetary policy was also less expansionary. Efforts were sustained to strengthen the justice delivery system. The long-term goal is to eradicate poverty by significantly increasing the national income, through stable economic growth, and reducing income and non-income inequalities through specific poverty-reduction priority interventions.
Economic growth in Swaziland has weakened over the past decade. This 2005 Article IV Consultation highlights that real GDP growth decelerated to 2.1 percent in 2004 and an estimated 1.8 percent in 2005. A prolonged drought affected agricultural output, particularly maize, the main staple crop, and cotton. The authorities completed a “Poverty Reduction Strategy and Action Plan” in October 2004. The document spells out policies with the overall objective of halving the 1995 poverty rate by 2015. However, little progress has been made toward this and other Millennium Development Goals.
This paper presents Ex Post Assessment of Longer-Term Program Engagement for Lesotho. The paper reviews the experience of the IMF’s engagement in Lesotho during the period 1991–2004, and briefly presents economic developments prior to these arrangements. It reviews performance under IMF-supported programs and analyzes the main factors accounting for that performance. The paper draws lessons from these program experiences and considers the main challenges facing Lesotho. The role that the IMF can play in helping the authorities to meet those challenges is also examined.
This paper examines Lesotho’s Sixth Review Under the Poverty Reduction and Growth Facility (PRGF) and Request for Waiver of Nonobservance of Performance Criteria. Real GDP growth slowed to 3¼ percent in 2003/04 (April-March) owing to the adverse impact of drought on agricultural output and slower-than-envisaged growth in the construction sector. Fiscal performance in 2003/04 was stronger than envisaged in the program, partly reflecting temporary factors. All quantitative performance criteria for December 2003 and indicative targets for March 2004 were met. The IMF staff supports the key macroeconomic objectives of the authorities’ budget for 2004/05.
This paper reviews Zambia’s First Poverty Reduction Strategy Paper (PRSP) Implementation Progress Report covering January 2002–June 2003. The report describes the first one and half years of the implementation of the PRSP in four strategic areas, namely economic and social sectors, governance, infrastructure, and crosscutting issues. It covers the macroeconomic performance—budget and structural reforms with regard to the PRSP refined indicators. The report focuses on the progress made in undertaking structural reforms to support the policy and institutional changes required to effectively implement the PRSP.
This Selected Issues paper and Statistical Appendix provides medium-term estimates of the cost of the government’s current anti-HTV/AIDS policies and programs in Botswana. The paper throws light on the policy challenges that Botswana authorities face in combating the crisis. The findings suggest that the cost of treating HIV/AIDS patients is likely to be high, about 10 percent of GDP, by 2010 (using the baseline estimates). The paper also analyzes Botswana’s approach to medium-term fiscal management.
This 2002 Article IV Consultation highlights that real GDP growth of Botswana slipped to an estimated 1¼ percent in 2001/02 (July–June), largely reflecting a downturn in the global diamond market and a drop in Botswana’s diamond production. The non-mining sectors performed better, especially the service industries. Their success is in part a product of Botswana’s market-friendly environment, sound macroeconomic policies, and investments in education and physical infrastructure. The overall fiscal balance moved into deficit in 2001/02 (April–March), only the second deficit in 20 years.