Document ofThe World Bank

FOR OFFICIAL USE ONLY

Report No.49321-BF

PROGRAM DOCUMENT

ON A

PROPOSED GRANT

IN THE AMOUNT OF US$22 MILLION FROM THE

EDUCATION FOR ALL FAST TRACK INITIATIVE CATALYTIC FUND

TO

REPUBLIC OF BURKINA FASOREPUBLIC OF BURKINA FASO

FOR THE

FIRST BASIC EDUCATION PROGRAM SUPPORT GRANT

June 29, 2009

Human Development IICountry Department W1Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

BURKINA FASO–

FISCAL YEARJanuary 1 – December 31

CURRENCY EQUIVALENTS(Exchange Rate Effective as of May 15, 2009

Currency Unit CFA FrancUS$1.00 CFAF 450

Weights and MeasuresMetric System

ABBREVIATION AND ACRONYMS(as applicable, plus others)

AAP Africa Action PlanCAS Country Assistance StrategyCFAA Country Financial Accountability AssessmentCBRD Community Based Rural DevelopmentCPAR Country Procurement Assessment ReportCID Computerized Expenditure Management SystemCIR Revenue Management SystemCSR Country Status Report CSLP Cadre stratégique de lutte contre la pauvretéDEP Directorate for Studies and PlanningDPO Development Policy OperationEFA-FTI CF Education For All-Fast Track Initiative Catalytic FundESW Economic and Sector WorkFTI Fast Track InitiativeGBS General Budget SupportGDP Gross Domestic ProductGER Gross Primary Enrollment RateGNP Gross National ProductGoBF Government of Burkina FasoHIPC Heavily Indebted Poor CountriesIBRD International Bank for Reconstruction and DevelopmentICA Investment Climate AssessmentICR Implementation Completion ReportIDA International Development AssociationIFC International Finance CorporationIMF International Monetary FundJSAN Joint Staff Advisory NoteLDP Letter of Development PolicyLDG Local Donor GroupMDGs Millennium Development GoalsMEBA Ministry of Basic Education and LiteracyMOE Ministry of EducationMEF Ministry of Economy and FinanceMOH Ministry of HealthMoU Memorandum of Understanding

MTEF Medium-Term Expenditure FrameworkNGO Non Governmental OrganizationNPV Net Present ValuePDDEB Ten-Year Basic Education ProgramPEFA Public Expenditure and Financial Accountability AssessmentPER Public Expenditure ReviewPFM Public Financial ManagementPHRD Japan Policy and Human Resources Development Trust FundPRSC Poverty Reduction Support CreditPRSP Poverty Reduction Strategy PaperROSC Report on the Observance of Standards and CodesSDR Special Drawing RightsUNDP United Nations Development ProgramUPE Universal Primary EducationWAEMU West Africa Economic and Monetary UnionTA Technical AssistanceTVET Technical and Vocational Education and Training

Vice President:Country Director:

Sector Manager:Task Team Leader:

Obiageli Katryn EsekwesiliIshac DiwanEva JarawanPierre Joseph Kamano

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BURKINA FASO

FIRST BASIC EDUCATION PROGRAM SUPPORT GRANT

TABLE OF CONTENTS

I. INTRODUCTION...................................................................................................................................1II. COUNTRY CONTEXT...........................................................................................................................3III. THE GOVERNMENT’S PROGRAM AND PARTICIPATORY PROCESSES...................................8

A. THE BASIC EDUCATION SECTOR PROGRAM.....................................................................9B. BASIC EDUCATION SECTOR ISSUES....................................................................................10

IV. BANK SUPPORT TO THE GOVERNMENT’S PROGRAM...............................................................17A. LINK TO THE CAS:....................................................................................................................17B. COLLABORATION WITH THE IMF AND OTHER DONORS...............................................18C. RELATIONSHIP TO OTHER BANK OPERATIONS...............................................................20D. LESSONS LEARNED..................................................................................................................20E. ANALYTICAL UNDERPINNING..............................................................................................22

V. POLICY AREAS TO BE ADDRESSED THROUGH THE BEPSG 1-3..............................................23VI. OPERATION IMPLEMENTATION......................................................................................................31

A. POVERTY AND SOCIAL IMPACTS.........................................................................................31B. ENVIRONMENTAL ASPECTS..................................................................................................31C. IMPLEMENTATION, MONITORING AND EVALUATION..................................................32D. FIDUCIARY ASPECTS...............................................................................................................34E. DISBURSEMENT AND AUDITING..........................................................................................37F. RISKS AND RISK MITIGATION...............................................................................................38

ANNEX 1: LETTER OF DEVELOPMENT POLICY........................................................................................40ANNEX 2: OPERATION POLICY MATRIX AND RESULT FRAMEWORK...............................................48ANNEX 3: GOVERNMENT’S PROGRAM POLICY MATRIX......................................................................53ANNEX 4: KEY INDICATORS..........................................................................................................................65ANNEX 5: FUND RELATIONS NOTE.............................................................................................................66ANNEX 6: COUNTRY AT A GLANCE............................................................................................................69

List of Tables

Table 1: Basic Macroeconomic Indicators, 2004-2012..............................................................4Table 2: Poverty-Reducing Social Expenditures 2001-2009 (% of GDP).................................8Table 3: Key indicators.............................................................................................................10Table 4: Key Output Indicators.................................................................................................34

List of Boxes

Box 1: Donor Coordination/Harmonization.............................................................................19Box 2: Prior Actions/Tranche Release Conditions/Triggers for Basic Education Program Support Grant............................................................................................................................29Box 3: Good Practice Principles for Conditionality.................................................................30

This operation was prepared by an IDA team led by Pierre Kamano (Sr. Education Specialist, AFTH2), Ousmane Maurice Kolié (Financial Management Specialist, AFTFM), Renaud Seligman (Sr. Financial Management Specialist, AFTFM); Celestin Bado (Sr. Operations Officer, AFTPR); Siaka Coulibaly (Economist, AFTP4), Gilles Alfandary (Sr. Economist, AFTP4); Luc Lapointe (Consultant, AFTPC), Mamata Tiendrebeogo (Procurement Specialist, AFTPC), ; Donald Hamilton (Consultant, AFTHD); Bintou Sogodogo (Program Assistant, AFMBF) and, Mohamed Diaw (Information Assistant AFTH2).

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GRANT AND PROGRAM SUMMARY

Burkina Faso

BASIC EDUCATION PROGRAM SUPPORT GRANT

The Recipient Burkina FasoImplementing Agency MINISTRY OF ECONOMY AND FINANCE (MEF) will be responsible for overall

implementation of the proposed Fast Track Initiative/Catalytic Fund Grant for Basic Education, in close association with four line Ministries in charge of education in Burkina Faso (Ministry of Social Welfare, Ministry of Basic Education and Literacy, Ministry of Labor and Employment and Ministry of Post primary Education).

Financing Data Fast-Track Initiative - Catalytic Fund Grant TF094653Operation Type The First Basic Education Program Support Grant (BEPSG-1) is the first operation of

a series of three single tranche programmatic development policy operations. The first operation of US$ 22.0 million will be available at effectiveness planned for July 2009; followed by a second operation of US$ 45.0 million when the triggers will be met (planned for January 2010); and iii) a third operation of US$ 35.0 million when the triggers will be met (planned for January 2011).

Main Policy Areas The main policy areas of the Government’s Education Sector Reform Program supported by the series of operations are: (a) Improving Access and Equity – (i) Free Public Primary Education; (ii) Reduction in disparities in access to education; (iii) Improvement in internal efficiency; (b) Quality Improvement and Relevance– (i) Improvement in the use of teaching- learning time for teachers and students; (ii) Diversify the areas in technical education and vocational training; and (c) Strengthening of Capacity for Administrative and Pedagogical Management – (i) Increasing equity in teacher distribution; and (ii) Intensification of Decentralization and De-concentration in the management of education.

Key Outcome Indicators

The BEPSG-1 is the first development policy operation focusing on reforms in Burkina Faso’s education sector. The reform measures will be designed to support the overall objective to increase access, quality and retention especially for disadvantaged groups. The objective in primary education is to achieve universal access by 2020 with 100% admission by 2010 and 55% completion rate by 2011, with a gross enrollment rate which would rise from 71% in 2008 to 85% in 2011, and a completion rate from 44% in 2008 to 55% in 2011. The reforms in lower secondary education would increase the gross enrollment rate to 34% in 2011 from 17% in 2006 and improve learning achievement. The rate of transition from primary to lower secondary (CM2-6ème) is also projected at 55% by 2011 in contrast to 61% in 2006. The gross enrollment rate in post-primary education would increase from 21.8% in 2007 to 36% in 2011. Repetition rate in post-primary education would fall from 25% in 2006 to 12% in 2011 and enrollment of students in the public sector would increase from 19 to over 30% of students during the same period.

Program Development Objective(s) and Contribution to CAS

Development Objectives. The BEPSG-1 supports the government’s Basic Education Sector Program which aims to (i) Improve access, equity, and expand coverage of basic education (which includes preschool, lower secondary education, and secondary vocational, as well as literacy programs), (ii) Improve quality, efficiency, and relevance of basic education, and (iii) Strengthen sector management including administrative, fiduciary and pedagogic management, partly through decentralization of basic education services.

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Contribution to the CAS. The Basic Education Sector Program is entirely consistent with the Poverty Reduction Strategy Paper (PRSP) and the CAS priorities for the period 2006-2009 as they aim to increase the educational level of the rural population and to incorporate cross-cutting issues of capacity building, gender and decentralization. It is also consistent with the CAS for the period 2010-2012 under preparation, which aims to ensure that educational quality is not compromised by increasing access to education or by shifting service delivery responsibilities to the communes. The Basic Education Sector Program will also focus on attenuating the impact of the financial crisis through safety nets (school feeding program, free schooling, targeting underserved areas and the poor), linking human development interventions to growth in particular within the growth poles by providing adequate Technical and Vocational Training (TVET) programs, and better social services delivery through improved decentralization which are also included in the upcoming CAS.

Risks and Risk Mitigation

Several risks are associated with the program. The macroeconomic outlook is projected to deteriorate because of the financial crisis and GDP growth rates have been revised downwards from 5.5% to 3.5%. This could make it difficult for the Government to allocate the required resources to the sector. These risks would be mitigated through measures to improve efficiency in use of resources at the macro level and within the sector. Within the education sector, costs would be reduced through increased involvement of communities in school construction, which accounts for a substantial part of the sector’s development budget. Costs of salaries and imported building materials might also fall due to dampening of prices following from the global financial crisis.

There might be resistances associated with the reforms related to multigrade classes, abolition of biennial intake, and enrollment and equity. To mitigate these risks, the government plans to undertake a nationwide campaign to build consensus around these policies before they are introduced.

The decentralization strategy poses significant challenges including in the education sector. Officials at the center may resist the transfer of responsibilities to local Governments, while local Governments may lack resources and capacity to carry out their new responsibilities. To address this issue, the government has adopted a participatory and gradual decentralization approach that includes establishing a framework for increased collaboration between the de-concentrated units and local government authorities as well as increased involvement of communities in the management of schools. The government also plans to adopt a school based approach to bring significant benefits to schools in the short term while capacity for full devolution is being put in place.

Operation ID P115264

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I. INTRODUCTION

1. Burkina Faso has requested and obtained assistance from the Education for All Fast Track Initiative - Catalytic Fund (FTI_CF) in the amount of US$102 million to help finance its Ten-Year Basic Education Development Program (PDDEB). Burkina Faso has requested that the Grant of US$ 102 million be disbursed in the form of development policy operations supervised by IDA.

2. The Education for All (EFA) Fast-track Initiative (FTI) is a global partnership of developing and donor countries and agencies designed to support EFA goals by focusing on accelerating progress towards the core EFA goal of universal primary school completion (UPC). The FTI was established in 2002, following the development consensus reached at Monterrey; it is a compact for the education sector that explicitly links increased donor support for primary education to recipient countries’ policy performance and accountability for results. Specifically, the FTI aims to accelerate UPC by promoting: a) More efficient use of aid for primary education; b) Sustained increases in aid for primary education to reach minimum acceptable levels; c) Sound sector policies in education; d) Adequate and sustainable domestic financing for education; and e) Increased accountability for sector results.

3. To help achieve these goals, the FTI provides support for the preparation of country sector plans to ensure that they meet the required standards. The completed plans are reviewed and if found credible endorsed through the FTI Partnership. Once the sector plan is endorsed, the FTI encourages commitment on the part of all funding partners to increase assistance for primary education in a sustained and predictable manner. The EFA-FTI Catalytic Fund (CF) helps finance FTI-endorsed education sector plans that mobilize insufficient resources at the country level. The Catalytic Fund provides grant financing in two to three year cycles to enable such countries to scale up implementation of their sector programs, and to establish a track record that may leverage longer-term support from donor agencies.

4. The FTI is supported by a Steering Committee, and a Secretariat that is housed in and managed by the World Bank. The Catalytic Fund is administered by the World Bank as a trust fund, under the direction of an FTI Strategy Committee consisting of representatives of the participating donors.

5. Burkina Faso joined the FTI Partnership in 2003 when the Local Donor Group (LDG) endorsed its Ten-year Basic Education Sector Development Program (PDDEB). With its relatively large number of donors in education, the country did not qualify for CF support at that time based on the “Donor Orphan” criterion. In partnership with the donors in the sector, the government started implementing the first phase of the PDDEB in 2002, with substantial success. The intake rate in primary education doubled in 7 years and the gross enrollment rate increased from 42.7% in 2002 to 72% in 2007. However, serious disparities continue to exist with low enrollment rates in areas such as the Sahel. The quality of education also improved but did not reach the targets set in the Sector Plan. Management of the system also improved,

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especially with regard to a more balanced allocation of resources among the sub-sectors. However, utilization of resources such as teachers and an over centralized management system which constrains efficient use of resources continues to be a concern.

6. These achievements and challenges are contained in the Country Status Report (CSR) which is being finalized and the Government has updated its Education Sector Program to reflect the findings of the CSR. The updated Sector Plan was approved by the Council of Ministers in June, 2008, and was re-endorsed by members of the LDG in September, 2008. With the change in the CF eligibility to allow for greater predictability in allocation of resources and inclusiveness (“FTI Expanded Catalytic Fund”), the country now qualifies for CF support. Burkina Faso submitted a request at the FTI Steering Committee meeting in Oslo, in December 2008, and received an allocation of US$102 million. This operation is being developed under Bank supervision following an agreement between LDG, the Bank, and the government..

7. The first phase support to the Government’s Basic Education Sector Development Program (2002-2007) enabled the Ministry of Basic Education (MEBA) to strengthen harmonization among development partners in the sector. Following the successes in harmonization of major donor policies around the Poverty Reduction Strategy (PRS), Local Donors Group (LDG) coordination in the education sector was strengthened through participation of all donors in the cadre partenarial and the signing of a Memorandum of Understanding (MoU) that governs collaboration on all aspects of the program. This first phase emphasized expansion of the system through direct investments and focusing on activities and their direct results on the ground with less dialogue on policy and institutional development of the sub sector. Even though substantial progress was made, issues still remained that limit the basic education sector move faster toward achieving the MDGs. In response to issues identified in the CSR, the new education reform engaged in 2007 focused on strengthening dialogue on policy and institutional development. The BEPSG 1-3 supports the Basic Education Sector Program by focusing on reforms aimed at accelerating achievement of the MDGs in education.

8. Following the achievements in the past 10 years and the desire to diversify growth, the government has decided for its Second phase of PDDEB (PDDEBII) to expand priorities in the education sector. While maintaining a balanced approach to development of the sector, the key areas of focus will be expanded to include preschool, primary and lower secondary, first phase of technical and vocational education and adult education. The focus on preschool education is meant to promote increased learning achievement in the long run. Technical education and vocational training (TVET) will include reforms of the curricula in lower secondary to enhance vocational training It is recognized that the reforms in pre-school education as well as in TVET will take some time to materialize given the complexity of the proposed programs. Principle among these are the development of effective public and private partnerships for both preschool and TVET including joint use of resources and financing in TVET, and the technical challenges involved with combining skills training and general education in the final grade of primary education and first cycle secondary education and linking skills training to the needs of the economy. To complement investment support provided by the LDG, the proposed series of three Basic education Support grant would help establish a sound policy and institutional framework for development, with a priority will be on reforms to improve quality, further expand access, especially for disadvantaged groups and in areas with low enrollment, as well as to improve efficiency in the system through reforms

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to strengthen decentralization and de-concentration management up to the school/community level.

9. The objective of the proposed series of operations (BEPSG 1-3) is therefore to provide support to Burkina Faso in reforming basic education as part of implementing phase two of its ten year education sector program (PDDEB II) including policy reforms, institutional strengthening and investments. This PDDEB II would build on achievements from implementation of the first phase, as well as on other operations in post primary education supported by various donors, including IDA. Specifically, the PDDEB II aims to (i) Improve access, equity, and expand coverage of basic education (which includes preschool, lower secondary education, and secondary vocational, as well as literacy programs), (ii) Improve quality, efficiency, and relevance of basic education, and (iii) Strengthen sector management (fiduciary, administrative, and pedagogic management) and monitoring in the context of decentralization of basic education services. The BEPSG 1-3 series is designed specifically to support introduction of policy reforms to remove constraints that have limited government efforts to develop the sector.

10. The total cost of implementing the program from July 2009 to the end of 2011 is estimated at US$ 1.051 billion. Available government financing is estimated at US$ 652 million and commitments from donors currently active in the sector are US$ 280 million; leaving a financing gap of US$ 120 million which the government expects to fund through increased national budget allocated to the sector.

II. COUNTRY CONTEXT

RECENT ECONOMIC DEVELOPMENTS

11. Structural reforms, sound macroeconomic policies and steady investment enabled Burkina to sustain significant growth rates and maintain relative macro-economic stability over the decade preceding 2007. Cotton exports formed the basis of Burkina’s high GDP growth rates which averaged about 6 percent during this period, significantly exceeding the WAEMU average. Inflation was kept under control, displaying low and even negative levels, while external assistance (increasingly on a grant basis), private flows and transfers helped finance current account deficits (Table 1).

12. However, the economy remains overly dependent on the export of a few products (cotton and gold) and highly vulnerable to exogenous shocks, notably weather and terms of trade fluctuations. The impact of exogenous shocks was particularly significant in 2007-2008. Low cotton prices, combined with the depreciation of the dollar against the euro, a significant drop in cotton production from irregular rainfall and rising food and fuel prices, resulted in a decline in GDP growth to 3.6 percent in 2007. Due to a good agricultural season and a series of government stimulus measures, GDP growth recovered to 5 percent in 2008. However, inflation increased to 10.7 percent in that year as a result of the rising international oil and food prices. The falling cotton exports only partly offset by gold exports, coupled with increase cost of food and energy imports, also led to the widening of the current account deficit (including grants) from 8.3 percent of GDP in 2007 to 11 percent of GDP in 2008.

13. Despite significant shocks, in the past two years the overall fiscal deficit has averaged 4.6 percent of GDP, mainly financed by official assistance. Public expenditure

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in 2008 was reduced from 25.8 percent to 22 percent of GDP, in line with the spending exercised in 2004/2005 prior to the first cotton crisis in 2006/2007. Fiscal policy has been broadly in line with the targets set under the authorities program, as confirmed by the successful completion of the third review under the IMF PGRF Arrangement in December 2008. Starting from a low tax base, the government has put a significant emphasis through the approval of the tax policy strategy on October 1, 2008 on the continued improvement in tax administration to raise domestic revenue further and limit external financing on credit terms. The tax policy strategy includes a combination of measures to rationalize fiscal incentives, simplify and modernize the legal framework, improve the oversight and return of indirect taxes, and effectively tax the informal sector in urban areas.

Table 1: Basic Macroeconomic Indicators, 2004-2012

Indicator 2004 2005 2006 2007 20081 20092 20102 20112

GrowthReal GDP growth (% annual change) 4.6 7.1 5.5 3.6 5.0 3.5 4.1 5.3Real GDP per capita growth (% annual change) 1.5 4.6 3.1 1.3 2.6 1.2 1.8 2.9FiscalTotal revenue in percent of GDP 13.0 12.8 13.0 13.6 13.4 13.2 13.8 14.4 Of which, tax revenue in percent of GDP 12.0 11.8 12.0 12.5 12.3 12.1 12.7 13.3Total expenditure in percent of GDP (commitments) 21.7 22.4 24.3 25.8 22.0 24.6 23.8 23.6Overall fiscal balance, including grants (% of GDP) -4.3 -5.1 16.7 -5.2 -4.0 -5.3 -4.7 -4.3Budget Financing 4.0 4.2 -17.8 5.2 4.0 5.2 4.7 4.3 Foreign (net) 4.4 4.8 -16.3 3.1 2.8 3.8 3.8 3.5 Domestic (net) -0.4 -0.5 -1.5 2.1 1.1 1.4 0.9 0.8 Net errors and omissions 0.0 -0.1 -0.2 0.0 0.1 0.0 0.0 0.0Balance of PaymentExports (f.o.b.; valued in CFA francs, annual percentage change)

36.3 -2.4 24.5 -2.9 -2.8 13.1 44.4 6.3

Cotton export volume (thousands of metric tons) 202.8 257.4 302.3 276.0 147.9 193.2 210.0 220.5

Imports (f.o.b.; valued in CFA francs, annual percentage change) 22.1 8.6 4.0 4.1 17.1 3.1 12.6 3.2

Current account balance, including official transfers (% of GDP)

-10.6 -11.7 -9.6 -8.3 -11.0 -10.0 -10.7 -10.3

World cotton price (US cents per pound) 62.0 55.2 58.1 63.3 71.4 55.0 59.0 61.0

Terms of Trade (% change) -13.8 -26.2 12.1 -1.4 -2.8 12.4 -2.6 -1.3

Reserve coverage (months of prospective imports of goods and services)

13.1 10.0 3.8 6.8 5.8 5.3 4.8 4.8

Monetary and FinancialCPI annual average (% annual change) -0.4 6.4 2.4 -0.2 10.7 4.8 2.3 2.0Credit to the government (annual percentage change) -3.7 0.9 -6.5 -9.6 4.2 -0.9 0.6 0.0

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Credit to the private sector (annual percentage change) 6.1 14.9 11.2 0.6 14.4 9.1 3.8 5.4External DebtTotal External Debt Outstanding (eop, in % of yearly GDP) 41.8 38.9 21.1 19.8 20.1 22.7 24.0 24.7NPV of external debt as percent of exports 168.5 199.1 97.33 110.0 122.6 144.7 121.0 130.0Memorandum ItemNominal GDP (CFAF billion) 2,656 2,863 3,018 3,239 3,603 3,844 4,084 4,388

1Preliminary; 2Projections; 3Burkina Faso benefitted from the MDRI in 2006.Source: IMF, Ministry of Economy and Finance, and Staff estimates.

14. Fiscal policy did not crowd out significantly private sector activity despite annual subsidies to the cotton sector and the 2007 recapitalization of the cotton companies. Credit to the private sector has increased significantly on a cumulative basis since 2004, both in real terms (by about 30 percent) and as a share of GDP. Access to credit for SME was facilitated by a new financial institution responsible for guaranteeing inter-bank credit, which was set up in 2007, as well as an expansion of credits provided by SFD, the national development financial institution. Also, the issuance of land titles in 2006-2007 has facilitated the collateralization of loans, improving guarantees’ quality.

ECONOMIC OUTLOOK AND DEBT SUSTAINABILITY

15. The global crisis is affecting negatively Burkina’s growth and fiscal performance. Although the country has been resilient to the impact of the financial crisis due to its limited cross-border linkages in its banking system, the economic outlook has worsened as the lagged effects on the real activity are feeding through the economy. Weaker cotton export prices and demand are the main transmission mechanism, although lower oil and high gold prices are partly offsetting them. The lower global growth, the decline in domestic cotton prices (a drop of over 40 percent in the world’s reference price1) and difficulties to place forward contracts on markets have significantly affected the profitability of ginning companies and cotton farmers’ livelihood, and have put pressure on government finances. With the tightening of credit conditions, foreign direct investment is also expected to decline, especially in mining. Moreover, official aid may be reduced as donors tackle financial crises at home.

16. As a result, GDP growth projections for 2009 were recently revised from 6.2 percent prior to the crisis to 3.5 percent. Growth projections for 2010 were similarly revised from 6.0 percent to 4.1 percent. Growth is expected to come mainly from the agriculture sector, as productivity measures introduced in 2008 in response to the food crisis are becoming effective, and in mining (albeit at a lower level), as gold prices have mostly resisted the downturn in commodity markets while more mines are moving to the exploitation stage. Growth is now expected to recover to trend but not before 2012. The current projections for 2009 also indicate fiscal and financing pressures: (i) a decline of the fiscal deficit to 5.3 percent of GDP (from an earlier projected 4.9 percent); (ii) a contraction of inflows of foreign financial, direct investment and aid, particularly in 2010 (-0.6 GDP point); and (iii) falling international reserves to 5.3 months of imports. The fiscal impact does not include the cost of financing explicit fertilizer subsidies2 and debt settlement for cotton producers which are 1 In CFAF terms, the decline has been 20 percent due to the appreciation of the Euro in the latter part of 2008.2 As indicated in Box 1, fertilizer prices have only marginally declined this year suggesting an increase in the overall input price.

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needed for a successful 2009/2010 cotton campaign. The impact on the current account balance (from -13.1 percent of GDP pre-crisis to a revised -10.0 percent of GDP) is expected to be a significant improvement of 3.1 percent of GDP point due to the positive impact of low oil and high gold prices. Also, inflation is expected to decline to 4.8 percent in 2009 stemming from the recent declines in food and fuel prices.

17. There are significant downside risks deriving from a deeper or longer global crisis or additional exogenous shocks. A preliminary sensitivity analysis undertaken in April 2009 shows that an additional decline in cotton price of 10 percent3 (beyond the 40 percent decline already experienced since mid 2008) would reduce current growth projections by around 0.5 percentage points4, with a modest direct impact on the fiscal balance, of 0.1 percent of GDP.5 Also, the banking system could be negatively affected by rising nonperforming loans as the economy slows, with significant exposure to the cotton sector. However, the overall fiscal impact would be more significant (up to 0.6 percent of GDP) if the government had to recapitalize cotton companies.

18. A number of factors could help to mitigate these down-side risks. The impact of low prices on cotton producers will be spread over time by the cotton smoothing fund – provided it is sufficiently capitalized – while new productivity investments in agriculture would continue to sustain growth. Over the medium term, as producer prices adjust to low world prices, it is likely that more producers will stop the production of cotton. This could have a negative impact on GDP, exports, poverty and other macro and micro indicators of the economy. But efforts to develop agricultural value chains would help producers reallocate their resources to other profitable products. This adjustment would thus mitigate the effects associated with the reduction of cotton prices, and could have the advantage of enhancing food production and therefore food security. Ongoing improvements in revenue mobilization and public financial management are also expected to help improve the fiscal balance and efficiency of public spending. In parallel, the government intends to develop better targeted social safety nets to mitigate the impact of the crisis on the poorest.

19. The latest joint IMF-World Bank Debt Sustainability Analysis (DSA) concludes that Burkina Faso’s risk of debt distress remains high. This is because the threshold for the NPV of debt to exports ratio is breached in the medium term; all other debt indicators remain comfortably below their policy-dependent thresholds under the baseline scenario. Burkina’s low export base and the dependence on unprocessed cotton exports explain the main risk factor for the country’s debt sustainability outlook. The impact of the global crisis on the country’s debt sustainability outlook is assessed through an alternative scenario that assumes a further decline in projected revenue compared to pre-crisis levels, a worsening of the outlook for cotton, and lower gold prices as the global recovery starts to take hold. Under this alternative scenario, Burkina Faso would not see a significant deterioration of its debt sustainability outlook, and most debt sustainability indicators would be little affected over the long term. The indicators remain below their indicative thresholds for medium performers, with the exception of the NPV of debt-to-exports ratio, which exceeds 200 percent. 3 ICAC projections for 2009/2010 put a very wide interval for cotton prices, between 56 to 76 cents per pound, within a 95 percent interval confidence, acknowledging that major uncertainties regarding projected cotton trade in 2009/10 pose substantial downward risks to this forecast, more likely to be within the 56 to 63 cents per pound range.4 . A 10 percent reduction in sale prices would be equivalent to a 20 percent reduction in value added per ha at the farm level (supposing unchanged input costs and hired services).5 This is due to the fact that cotton only contributes around $4mn in direct and indirect taxes to the budget, even in good cotton years. The scenario assumed unchanged subsidies for fertilizers as in previous years.

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20. The Government is taking measures to lower the risk of debt distress by implementing structural reforms (PFM, financial sector, and business climate) and through closer monitoring of public enterprises to avoid quasi-fiscal losses. Work is underway to improve debt management practices through an integrated debt data framework. A Debt Management Performance Assessment (DeMPA) concluded in May 2008 revealed that Burkina Faso meets or exceeds the minimum requirements; however, significant weaknesses remain in certain areas including debt management strategy and operations, audit and budget execution.

21. Overall, Burkina’s macroeconomic framework, which forms the basis for its PRGF support from the IMF, provides an adequate basis for the proposed operation. Fiscal discipline, membership of the CFA franc zone and the fixed exchange rate with respect to the Euro provide a solid anchor for low inflation expectations in Burkina. The authorities are advancing reforms in tax policy and in broadening and deepening the financial sector to reduce vulnerabilities and support growth. In addition, the medium term reform program targets a number of critical actions in cotton, energy and PFM that would reduce fiscal risks and make the private sector more attractive. However, and as detailed above, downside risks to the macroeconomic outlook are significant, notably with respect to the impact of the global slowdown and fiscal risks from the cotton sector.

Poverty Reduction Strategy

22. The recent series of exogenous shocks have reversed six years of progress in poverty reduction. The deceleration in economic growth and heightened fuel and food prices resulted in an increase in the incidence in poverty from 42.1 percent in 2006 to 42.6 percent in 2007 and above 44.5 percent in 2008, a level of poverty not observed since 2003-2004. The increase in poverty incidence in 2007-2008 was accompanied by increases in the depth and severity of poverty, making prospects of recovery more difficult.

23. The majority of cotton producers are as poor as the majority of the population. Even though cotton production grew rapidly until 2006, yields have remained static, producer prices have declined since the 2005/06 campaign, while fertilizer prices have increased, causing cotton farmers’ incomes to plummet in recent years. Cotton is no longer profitable for smaller farmers. Climatic events during the 2006/2007 and 2007/2008 cropping campaigns contributed to poverty by driving down production and incomes in those years. Beyond, these events led to accumulated internal debts among farmer groups, leading some farmers to shift production from cotton to other crops, resulting in a lower income.

24. Households are vulnerable to agro-climatic and price fluctuations and are incapable of regulating or insuring consumption levels during periods of revenue fluctuation. Household surveys conducted in 2003, 2005 and 2007 reveal a close nexus between risk exposure, vulnerability and poverty in rural areas. Poverty remains a predominantly rural phenomenon in Burkina with the proportion of poor people living in the countryside increasing from 92.2 percent in 2003 to 93 percent in 2005 to 94.1 percent in 2007. Chronic food insecurity, affecting 38 percent of households in 2007 remains a concern.

25. Increased public expenditures and targeted social service provision have led to improved access to basic services. Government spending on education, health and potable water and sanitation has generally risen steadily and accesses to education and water, in

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particular, have increased. Gross enrollment rates in primary schools have increased from 41.7% in 1999-2000 to 72% in 2007. The enrolment rate in secondary schools has risen from 19.1% in 2005 to 25.9% in 2007. Overall access to drinking water has improved to 79% in 2007 from 54% in 2004 with more modest gains in rural areas. In health, access to services has also improved with subsidies for obstetrical emergency care and delivery services and gratuity for all preventive services at primary health care level. Infant mortality rates have diminished as a result of higher levels of vaccination. HIV/AIDs prevalence has decreased from 7.17% in 1997 to 1.9% in 2008. These indicators are reflected in improvements to Burkina’s Human Development Index which has risen from 0.259 in 1980 to 0.372 in 2008, with a relatively high positive change ratio of 0.055 over the period 2000-2006.

Table 2: Poverty-Reducing Social Expenditures 2001-2009 (% of GDP)

2001 2002 2003 2004 2005 2006 2007 2008 2009 (actual) (proj.)

Total Poverty Reducing Social Expenditure

3.9 4.8 4.6 5.5 5.7 5.5 5.7 5.4 5.6

Health 1.3 1.7 1.5 1.8 1.9 1.8 1.9 1.8 1.8Education 1.7 1.9 1.9 2.1 2.3 2.3 2.4 2.3 2.4Women’s welfare and other poverty-reducing social expenditure

0.8 1.1 1.1 1.4 1.4 1.2 1.3 1.3 1.4

Source: Burkinabe authorities and IMF staff projections and estimates

26. Despite progress, Burkina continues to rank towards the bottom of the Human Development Index and the country is unlikely to reach several MDG’s by 2015. Despite improvements, Burkina Faso maintains a comparatively low ranking of 173 out of 179 countries in the UNDP Human Development Index. And while Burkina Faso is on track to reach the MDG targets for access to potable water and reduced HIV prevalence, significant challenges exist with respect to attaining the rest of the MDGs, in particular those related to literacy, gender, infant mortality, sanitation and maternal health. In education, the literacy rate reached only 28.7% in 2007 and the quality of education has remained low. In health, mortality figures remain alarming with very high infant and juvenile mortality, respectively at 81 per 1,000 and 184 per 1,000 in 2003. Of particular concern is the deterioration in malnutrition rates over the last decade. Burkina also compares less favorably than other countries for assisted births despite efforts to improve health provision. The worsening global financial situation is likely to have a negative impact on Burkina’s progress towards attaining the MDG’s.

III. THE GOVERNMENT’S PROGRAM AND PARTICIPATORY PROCESSES

27. The long-term Poverty Reduction Strategy (2002) and the « Letter of Sector Policy for Sustainable Human Development » (2008) confirm the urgency of addressing poverty with strategies that address structural constraints in the economy. Poverty reduction in the long-run will be addressed by: (i) pursuing sound macro-economic policies aimed at strong, sustainable and equitable growth; (ii) increasing and improving the use of public expenditures to facilitate human capital development; and (iii) strengthening the decentralization process and modernizing public sector management. Key priority areas include education and health,

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managing public expenditures at sustainable levels while constraining expenditures through more efficient management of resources.

28. Implementation of the PRS is done through 3-year action plans. The Second PRS Action Plan which covers the period 2004 -2006 aimed at maintaining real GDP growth at over 6% annually and at reducing poverty by half by 2015. The PRS II which is aligned to the country’s PRSP contained four key pillars: (i) improving competitiveness in the private sector; (ii) increasing provision and access to public services; (iii) promoting employment growth and income earning activities especially for the poor and (iv) increasing the rate of decentralization and strengthening efficiency in the management of public resources. Following wide-spread national consultations with the public, as well as with technical and financial stakeholders, the number of key sectors in the PRS II was expanded from 4, i.e. health, education, water and rural development to 9, to include HIV/AIDS, the environment, PME and PMI, public security, information technology and communications, and capacity building.

29. The PRS document is considered a living document and the overall aim of the program is to create an environment that would support increasingly shared growth, the clarification of the role of government in the economy and reduction of regional disparities. The PRS will be in place till 2010 with annual updates. Provision of basic social services and equitable distribution of increased resources from growth are key priorities in the PRS.

30. As part of the implementation of the PRS, the Government initiated the basic education sector program in 2000 to support the key second pillar of the program. Implementation of the program including reforms supporting other sub-sectors resulted in significant success. The gross enrollment rate for primary education increased from 45% in 2000 to 72% in 2008, while that of first cycle secondary education increased from 20% to 28% between 2004 and 2008. These gains helped improve the human development index for Burkina from 0.259 to 0.372 during the period 2000 to 2006. In spite of the progress made during this period, Burkina continues to have low education indicators relative to neighboring countries.

31. Following the successful implementation of the first phase of the PDDEB the government has further reviewed its program for the sector to ensure that it is consistent with its strategies for economic growth. The new reforms include extending the policy of free basic education to cover the first 10 years of education, ensuring a more coherent pedagogical link between the subsectors and reserving an important role for technical education and vocational training in the sector strategy.

A. THE BASIC EDUCATION SECTOR PROGRAM

32. The education reform program in Burkina, in accordance with the 2007 education law, aims at expanding access at, quality and relevance of preschool, primary, first cycle secondary general and technical levels as well as post-primary vocational training.

33. In 1999, the Government of Burkina Faso prepared a ten year plan for the medium and long-term development of basic education, with objectives that were consistent with the goals of Education for All and the Millennium Development Goals. Implementation of the first phase of the plan started in 2002, with the support of development partners within the context

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of the EFA-FTI, and was completed in 2007. Evaluation of the Sector Plan showed that substantial progress had been made especially in the area of access to education as shown in the table below.

34. The table below shows a sharp increase in key indicators, particularly from 2002 to 2007 during the first period of PDDEB implementation.

Table 3: Key indicatorsIndicators 1999 2002 2007

Gross Enrollment Rate in Primary 40,1% 42,7% 72%

Gross Intake Rate at first grade of Primary 40,7% 55% 81,3%

Achievement Rate in primary 24,5% 25,6% 39%

Girls Proportion in Primary 35% 37% 42%

Number of trained teachers per year in Primary 900 1600 3,000

Number of classrooms built per year (000) ND 900 1511

Gross Enrollment Rate in lower secondary 13, 2% 14% 27,4%

35. The evaluation included discussions carried out during the preparation of the education sector review, national consultations on the status of education and a review of options for the reform of the education system. The results of the evaluation and consultations formed the basis for drafting and approving the 2007 Education Law, and led to a national consensus on the purpose and role of education in Burkina as well as on the key priority areas in the sector during the 8 years from 2008 to 2015. The Government plans to introduce further reforms for the development of basic education while maintaining focus on quality and improving management of the sector.

B. BASIC EDUCATION SECTOR ISSUES

36. Despite progress made in the recent past, Burkina continues to have some of the lowest education indicators in the region. This is of particular concern given that Burkina seems to yield much less from external assistance than other countries in the region. These comparatively low returns to investments in education in Burkina might be related to the need for the introduction of policy and institutional reforms that would improve the operational efficiency of the system. 37. The key issues in the education sector are: (i) inadequate and inequitable access to education, particularly for the poor; (ii) low quality and mismatch between curriculum and the economy; (iii) inadequate financing of education and inefficient use of resources and (iv) weak sector management.

Access and Equity

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38. Primary Education: Although gross primary enrollment rate (GER) has increased by 7.5 points per year on average since 2000 to reach 72 percent in 2007, this rate of increase would still not allow Burkina to achieve universal primary education (UPE) by 2015. Current government projections suggest that UPE will be achieved in 2020. The low enrollment rates are partly the result of very low internal efficiency. The primary education completion rate in 2007 was only 39 percent in contrast to the Sub Saharan average (70% in 2006/2007). This low completion rate reflects relatively high drop-out rates. Although substantial progress was made in this area between 1997/98 and 2006/07 when the drop-out rate fell from 17% to 11.7%, this rate is still high. As a result it takes 7.8 years to produce a primary education graduate. This low internal efficiency also generates unnecessarily high costs of education provision. The additional cost of low internal efficiency in primary education is about 31%.

39. Access to primary education is also inequitable. The enrollment gap between boys (77%) and girls (68%) narrowed only modestly between 2004 and 2007 and the gap between the 18 poorest performing provinces and the rest of the country has widened.6 This relatively slow progress in narrowing the gender gap suggests that in addition to resources there are a combination of structural factors that constrain household incomes in difficult geographic areas and cultural practices that cannot be addressed by existing policies and strategies. Some of these differentials between boys and girls would therefore require targeted policy interventions. The challenge in primary education is to sustain for the next ten years the rapid progress achieved on education service delivery and learning outcomes during the period 2000-2006, and to build upon these successes to address issues of equity and quality.

40. The reason for the low and inequitable enrollment rates are related to both demand and supply factors such as unaffordable costs of education to households, long distances to school, poor quality physical facilities and an inappropriate school calendar. The direct and indirect costs of education are still prohibitive for some families, especially for those in low income areas. Primary education is free, but the subventions provided by government are inadequate to cover the costs of a good quality education. Schools therefore continue to impose unregulated fees on students which some parents find unaffordable.

41. On the supply side there is an inadequate supply of school places and some villages do not have nearby schools. Analysis from the CSR shows that distance from school is a significant factor in access to education. The study shows that the gross enrollment and admission rates get progressively lower as the proportion of children who live 45 minutes or more away from schools rises. This is particularly the case for girls who are considered to be at greater risk when they have to travel long distances. Distance is not a significant factor in urban areas where schools are closer to children’s homes. Poor physical facilities also limit access to education because of inappropriate architectural designs and low quality buildings. Many primary schools are overcrowded because they are run in inappropriate/temporary structures. The government has tried to increase the rate of construction of new schools but the current policies and strategies for school construction are serious barriers to this effort.

42. The practice of biennial school intake in sparsely populated areas also restricts access to school. This practice is carried out in areas where the school age cohort is too small to justify one teacher for the incoming class annually. The low internal efficiency of primary education is partly explained by the frequent practice of failing students in the belief that this would improve learning outcomes. This has a negative effect on parents who can become 6 The Gross Enrollment Rate in these 20 provinces is 58.4%, with 62.5% for boys and 54.0% for girls in 2007/2008

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easily discouraged about the educational prospects of their children. Parents therefore often respond by withdrawing their children from school to engage them in more directly productive activities to support the family. The opportunity costs rise as the children grow older and are able to be more productive.

43. Food insecurity in some areas also affects demand. There is some evidence that the existence of a school feeding program helps increase enrollment. Also, children who go to school hungry are unable to learn much. The school canteen program helps to address this problem, but unit costs are too high to permit complete coverage of the needs. Options for lowering costs such as wider use of community run feeding programs are being explored to reform the system.

44. Secondary Education: In secondary education the shortage of places is even more severe. The surge in primary education enrollment and completion rates has increased the need to accommodate graduates at the lower secondary level. In 2005, more than 50 percent (mainly from rural areas) of the 125,000 completing primary education were unable to enter secondary education. As a result of this the secondary level as a whole has experienced only modest progress in enrollment growth: GER increased slowly between 1999 and 2004, and has picked up with support from the Post primary education project launched in 2006, to reach 20.7 percent in 2007 (28 % in lower secondary and 10% in upper secondary). The average secondary education GER for Sub-Saharan African countries in 2004 (48% in lower secondary and 32% in upper secondary) was about twice the rate achieved in 2007 by Burkina Faso. Reforms are also needed to increase enrolment in quality secondary education to support the growth objectives defined in the current PRS.

45. Internal efficiency in lower secondary education is lower than for primary education and these low rates appear to be stable. For the 10 years to 2006/7, the repetition rate fell by less than 3 percentage points from 28.4% to 25.9%. It takes 9.5 years on average to produce a lower secondary school graduate; 2.4 times longer than necessary. This imposes an additional cost of 51% to the normal cost of producing a graduate from this cycle.

46. The opportunity costs of secondary education are higher than in primary education as are the direct costs. Parents therefore have to make significant investments at this level to educate their children. Parents’ propensity to withdraw their children from school if they judge the quality of education to be low or if the child is not making good progress is therefore higher than in primary education. Reforms are needed to increase the probability of much higher returns to secondary education to provide an incentive for increased enrollment and completion of secondary education.

Low Quality and Relevance of Education

47. The quality of education is low although evidence in this area is limited due to a weak national assessment system. The basic education sector is in a process of building its students learning assessment schema. In primary and secondary education, two assessments have been piloted but the systems need to be strengthened. Preliminary results from the 2007 PASEC assessment show that students in Burkina perform less well in Math than in 2003. The CSR also includes studies on literacy rates carried out in 2003 which show that the probability of adults between the ages of 22 and 44 years of age being literate after 6 years of education was only 45%. Although examinations pass rates are not a reliable instrument for measuring

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learning outcomes because they serve to filter students for the next level of education they could be used as a proxy to measure quality especially at the lower levels. These results show that pass rates are low at all levels of the system.

48. Low quality in primary education is explained by a number of factors including low learning time, limited school inputs, and limited teacher effectiveness. There is also some mismatch between the curriculum and the needs of the economy. The instructional time in primary and especially secondary education is lower than internationally accepted norms. At the primary level the actual time on task is even lower than the nationally prescribed time due to absences and lateness of students and teachers. In secondary schools, the instructional year lasts only from the second week of October to the end of May. This situation dramatically limits student-teacher interaction and learning opportunities. The quality of learning time is also adversely affected by shortage of textbooks and other instructional materials. The low quality of education is worsened by the shortage of qualified teachers, particularly in science and math. Reforms are needed to increase the amount and use of learning time, to improve teacher management and to make textbooks and teaching materials more easily available.

49. The current curriculum focuses on preparing students for secondary education followed by tertiary education with little focus on skills development and denies a good proportion of students who exit the system at the primary or secondary levels of marketable skills. These results in inefficient use of education resources as well as lost opportunities for producing better trained manpower that could help increase individual incomes and promote economic growth. The system for assessing learning outcomes is still to be fully developed. It is therefore difficult to determine how well the system is performing from one year to the next or in comparison with other countries in the region. In addition, the absence of an assessment system reduces the opportunity to analyze learning weaknesses that could help inform the teaching/learning process. Exams at the conclusion of different levels of the education system which could be used as a proxy to measure quality are used as a regulating mechanism to control student flow into the next level of education to limit the transition rate between sub-cycles to manageable levels. This capacity needs to be fully developed to help improve the pedagogical management of the system.

50. In addition to the low enrollment rate, poor quality and the high inefficiency of education in all sub-sectors, inequality remains a serious concern in tertiary education. More than 75 percent of students enrolled in tertiary education are from wealthy families that belong to the two highest income quintiles, with less than 2 percent from the lowest quintile. Repetition rates in tertiary education, coupled with the high unit costs of education, limit education opportunities for students from low income families which, highlights the issue of inequity in post-primary education in general, and in tertiary education in particular.

Weak Management of Education

51. Management of the education and training system is adversely affected by inadequate allocation of budgetary resources and over-centralization of management resulting in a number of inefficiencies such as inequitable distribution of teachers. Although the government increased budgetary expenditures on the education sector from 2.3% of GDP in 1996 to 2.8% of GDP in 2006, this is still much lower than the 3.5% recommended by the FTI framework or the average of 4% for Sub-Saharan African countries. Much of this increase was allocated to primary education, but this level of education is still inadequately funded.

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The share of primary education increased from 57% of the recurrent budget for education in 1996 to 63% in 2006, but only 10% of these expenditures were allocated to educational materials. Sixty-five percent was allocated to salaries and 30% for transfers. In addition, there are inefficiencies in the use of resources. At the primary level, 25% of the staff are not teachers, and this rises to 39% at the secondary level. The level of salaries is also high compared to those in the region. At the primary level average teacher salaries are 5.3 times GDP per capita compared to 4.4 for the region and 3.5 recommended by the FTI framework. Similarly, the average salaries in first and second cycles of secondary education are 8.8 and 9.6 times GDP per capita respectively compared to an average of 6.6% for both cycles for the region.

52. Management of the system is also over centralized. This makes it very difficult to transfer resources to lower levels including schools and to ensure efficient utilization and accountability for resources at the lower levels of administration. As a result schools suffer from inadequate inputs. One of the major inefficiencies related to this is the inequitable distribution of teachers. According to the CSR, 22% of the teachers in primary education are not allocated in accordance with the number of students. At the secondary level there is a wide disparity among regions in the number of hours taught and there are serious teacher shortages in some subjects such as science and math.

BASIC EDUCATION PROGRAM OBJECTIVES AND DESCRIPTION

53. Based on the recent review of the education system, the Government has established 2020 as the date for achieving universal completion of primary education. Interim targets that would help drive the education sector reforms include 107% admission rate and 75% completion rate by 2015. The PDDEB II also aims at improving the quality and relevance of the curriculum and increased retention at all levels. Achieving these qualitative and quantitative objectives would also require reforms in the administrative, fiduciary and pedagogical management of the system to optimize utilization of resources.

BASIC EDUCATION PROGRAM DEVELOPMENT OBJECTIVES

54. The main objectives of the government’s Ten-Year Sector Development Plan are to raise the educational level and diversify the skills of the labor force to help promote equitable economic growth. To achieve this objective this operation will support Government’s reforms and further strengthen its sector institutions to: (i) Increase access and, equity to basic education (which includes preschool, lower secondary education, and secondary vocational, as well as literacy programs), (ii) Improve the quality, efficiency, and relevance of basic education, and (iii) Strengthen sector management (fiduciary, administrative and pedagogic management), and monitoring and evaluation in the context of the decentralization of basic education services.

BASIC EDUCATION PROGRAM DESCRIPTION

55. Burkina Faso has adopted a number of reforms in response to the identified constraints in basic education. The priority in basic education is to fully operationalize the principles of compulsory and free public education and to make the end of primary education a terminal grade for those students who cannot continue with secondary education and training. Specifically, the aim is to create greater coherence in the curriculum between grades and

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cycles and to reform education and training to increase the employability of youths by establishing links between formal and non-formal education and general education and technical education and vocational training. Specifically, the reforms in basic education will include the following:

56. Pre-School Education. While public provision of preschool education will continue, reforms will be introduced to increase community participation especially in underserved areas. The reforms in this area will focus on revising the policy and institutional framework for pre-school education to permit further development of a community based approach to pre-school education in partnership with public sector pre-school centers. A regulatory framework will also be put in place to encourage private sector participation in pre-school provision while ensuring minimum standards of quality. Regulations will also be introduced to encourage private provision in urban areas to free up public sector resources to support initiatives in the rural areas. This would help reduce the costs of pre-school education on the government budget while helping to meet the objective of expanding coverage from 2.1% in 2006 to 8.3% in 2015. The target is for communities to increase their share of coverage from 24% in 2006 to 73% in 2015.

57. Primary Education – In primary education, the reforms will focus on introducing policies and regulations to facilitate better utilization of school places, availability and performance of teachers, increased supply of schools and textbooks and improved management of the education system. The learning assessment system will also be strengthened. Particular attention will be placed on rural areas and provisions for children with special needs, girls and the poor. Reforms in private education will also be introduced. These measures will be designed to support the overall objective to increase access, quality and retention especially for disadvantaged groups.

58. To support the objective in primary education of achieving universal access by 2020 with 100% admission by 2010 and 75% completion rate by 2015, the following specific reforms will be introduced: (i) a system for greater inclusion of communities in school construction will be introduced, based on successful pilots carried out in Burkina, to help accelerate the pace of school construction especially in rural areas: (ii) teacher appointment regulations will be revised to increase the supply of teachers, including a new category of voluntary teachers, at affordable costs; (iii) guidelines governing private education will be revised to ensure more appropriate expenditures on recurrent costs; (iv) policies and strategies will be implemented to mobilize and sensitize communities and to identify and introduce targeted measures to expand access of disadvantaged groups, especially that of girls,  in low enrollment areas; (v) measures to abolish biennial school intake and to introduce/expand multigrade classes and to reduce the practice of repetition to help increase access and improve the internal efficiency of schools and; (vi) regulations to improve the pedagogical management and effectiveness of educational services centered on reducing the pupil/teacher ratio, increasing the time on task, revision of the curriculum to establish an objective based approach, strengthening the pre and in-service training of teachers, inspectors and supervisors, and to increase the provision of textbooks and learning kits. The system for learning assessment will also be strengthened. It is expected that introduction of these reforms would help increase enrollment in the public sector from 1 200 681 students in 2006 (1,953,312 students in 2008/2009) to 2, 156, 622 in 2011 then to 3 288 687 en 2020. The share of the private sector will fall from 13, 7% in 2006 to 10% from 2015.

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Lower Secondary Education and Secondary Vocational Education Training-

59. The Government has embarked on a major reform program for first and second cycle secondary education and technical education and vocational training. Specific measures will be put in place to achieve the following objectives: (i) to improve management of the transition from primary to first cycle secondary education to reduce overcrowding and to ensure class sizes that would permit provision of quality education. The policy of free education will also be extended to first cycle secondary education to increase access and management of schools will be strengthened to ensure quality improvement and efficiency. Priority will be given to underserved areas and vulnerable groups in the implementation of this policy.

60. Vocational training will be reorganized to introduce short courses, some based on apprenticeship, that are adapted to labor market needs. The main thrust of the reforms will be to establish structures for short-term and or apprenticeship training in partnership with master craftsmen and other accredited businesses especially for primary school graduates. A specific initiative will be put in place in agreement with ministries and other organizations for the training of graduates of first cycle secondary general education. This would permit establishment of a capacity for short-term courses and training attachments for 50,000 youths by 2015. It is hoped that in the medium to long-term these measures would help to absorb 40% of primary school graduates annually in first cycle vocational training.

61. In secondary general education priority will be given to reforms that would permit provision of high quality education especially science education and technical/professional training to support the economic and social development of the country. The regulations for private provision of secondary education will also be revised to increase their participation and incentives for the development of applied and scientific research will also be encouraged.

62. In addition to regulating the flow of students from primary to secondary education, the following measures will also be implemented: (i) restructuring of vocational training by the introduction of short-courses and apprenticeship training; (ii) introduction of incentives to support further development of private education; (iii) revised regulations to improve the pedagogical management of schools including measures to reduce repetition, reduction in the class size, an increase in the time on task, better utilization of qualified teachers and use of fewer temporary teachers. Recourse to a new category of teachers will also be introduced to contribute to ensuring the financial viability of the system and mechanisms will be established to increase the availability of textbooks and educational materials to students, teachers and schools.

63. It is expected that the reforms in lower secondary education would help to increase the gross enrollment rate to 47% in 2020 from 17% in 2006 and improve learning achievement. The rate of transition from CM2-6ème is also projected at 50% by 2015 in contrast to 61% in 2006. The gross enrollment rate in post-primary education will increase from 21.8% in 2007 to 40% in 2015. Repetition rate in post-primary education will fall from 25% in 2006 to 10% in 2015 and enrollment of students in the public sector will increase from 19 to over 36% of students during the same period.

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64. In the area of adult and non-formal education, the reforms will include establishment of new and alternative approaches to the provision of adult education including the “le Faire faire” at the decentralized level as factors that would help promote development and introduce elements that would support development of basic formal education.

65. Pre-service teacher training policy will be redesigned with regard to the requirements for entry, the duration and contents of the program as well as the balance between theory and practice, in order to prepare teachers to teach the new curricula which is focused on greater coherence between primary and secondary education.

IV. BANK SUPPORT TO THE GOVERNMENT’S PROGRAM

A. LINK TO THE CAS:

66. The Government of Burkina Faso (GoBF) defined in its Poverty Reduction Strategy Paper (PRSP)7, the following four strategic pillars to which the Bank’s Country Assistance Strategy (CAS) 2006-20098 will contribute: (i) accelerating equity-oriented growth; (ii) guaranteeing access of the poor to basic social services and social protection; (iii) expanding employment and income opportunities for the poor; and (iv) promoting good governance. With the support of donors, the GoBF has undertaken a number of policy reforms and key actions, including enhancing social services delivery to the poor through, among others, expanding access to education9.

67. The CAS for the period FY06-09 was discussed by the Executive Directors on June 28, 2005. Building on the revised full PRSP, the CAS results framework explicitly defines the assumed causal links between IDA activities, direct outcomes of these activities, and the PRSP high level development outcomes.

68. Bank support has been re-aligned towards harmonized, multi-donor delivery mechanisms and improved donor alignment with sector and sub-sector strategies. However, implementation difficulties limited the effectiveness of these approaches. The CASPR identified support to the decentralization process as a high priority. The Bank’s attempt to invigorate the process through the PRS series has had limited impact. Decentralization is now in the operationalization phase, and the next CAS will put a strong emphasis on strengthening public administration and capacity-building at central and local levels through financing different levels of administration.

69. Within this context, the CAS seeks to contribute to the following outcomes: (i) Accelerated and shared growth through regional integration, expansion and diversification of export earnings, improvement of the investment climate, promotion of urban-rural linkages through decentralization, and development of infrastructure needed to reduce cost factors and stimulate private sector investment and growth; (ii) Improved access to basic social services: through access to basic education and improved quality of education, expanded 7 Burkina Faso. 2003. Cadre Stratégique de Lutte contre la Pauvreté. Septembre 2003, Burkina Faso. 8 World Bank. 2005. Country Assistance Strategy for Burkina Faso. Report N0. 32187. May 12, 2005. Washington, D.C.9 Government adopted the Ten-year Basic Education Development Strategy (PDDEB) in 2000, garnering wide support from the donor community for implementation. Use of a rolling, medium-term expenditure framework was introduced for planning and donor alignment, and a decision was made to focus government/donor intervention in the 20 provinces with the lowest primary enrollment rates. A national program was adopted to accelerate girls’ education, and public-private partnerships to expand secondary education were piloted and replicated based on early successes (The IDA financed Post-Primary Project).

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coverage of basic health care and HIV/AIDS prevention and treatment and increased access to clean water and sanitation, particularly in urban areas, and by providing technical support for better targeting of social protection to the most vulnerable groups; (iii) Increased employment and income opportunities for poor, through support to labor market and employment strategy for urban workers, and development of efforts to reduce risk, increase revenues, upgrade economic market infrastructures and enhance women’s opportunities in rural areas, along with promoting community-based land and natural resource management for sustainable development.

70. Better governance with greater decentralization: Enhancing governance and accountability are integral parts of all IDA-supported activities. Emphasis will be placed on supporting a more efficient judiciary system, promoting public resources management and increased decentralization as well as strengthening local capacity and participation in public policy decision making.

71. The proposed operation is an integral part of the FY06-09 CAS under implementation, with a stronger focus on results and on strengthening country systems and capacity. The Basic Education Sector Program is entirely consistent with the Poverty Reduction Strategy Paper (PRSP) and the CAS priorities for the period 2006-2009 as they aim to increase the educational level of the rural population and to incorporate cross-cutting issues of capacity building, gender and decentralization. The Basic Education Sector program also ties in closely with the upcoming CAS in FY10 by focusing on attenuating the impact of the financial crisis through safety nets (school feeding program, free schooling, targeting underserved areas and the poor), linking human development interventions to growth in particular within the growth poles by providing adequate TVET programs, and better social services delivery through improved decentralization. The proposed Grant will enhance policy dialogue as it will speed up progress towards the intermediate indicators to track implementation towards expected CAS outcomes. The new indicators for basic education adopted for the PRSP in March 2008, reflect the indicators for the program.

B. COLLABORATION WITH THE IMF AND OTHER DONORS

72. IMF and IDA staff has coordinated closely on the identification of the respective institutions’ areas of focus. The IMF Board discussed the second Government’s semiannual performance review on June 30, 2008. The fourth IMF review, which took place from March 18 to April 1, 2009, is expected to be presented to the Board in June 2009. IMF and IDA staffs are assisting the authorities in the implementation of the country’s PRS, providing them with technical assistance as regards resource mobilization and budget management.

Donor % 2008 GBSIDA 34.8EU 33.1Netherlands 11.4AfDB 8.3Sweden 4.0France 3.4Denmark 2.5Switzerland 2.5Germany Na

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73. Twenty seven donors currently support the implementation of the Government’s PRS through various modes of assistance: general budget support (GBS), sector programs, investments projects, capacity building projects and technical assistance. Investment projects account for two thirds of external aid, while budget support accounts for approximately one third of total donor support.

74. Provision of budget support in a coordinated and cohesive way, in line with the Government’s overall development strategy, is evolving in an encouraging way (see box 1). Deeper coordination of budget support was initiated following the adoption of the first Poverty Reduction Strategy which encouraged harmonization of aid and the use of country systems. Currently, nine donors use the joint CGAB on the basis of a Memorandum of Understanding (MoU) signed in 2005. Donors are progressively moving to a joint monitoring and evaluation matrix, to determine whether disbursement criteria are met. The synchronization of each institution’s project cycle around the Government’s budget cycle remains a challenge, however, making it difficult to completely harmonize program triggers and the joint monitoring matrix.

Box 1: Donor Coordination/Harmonization

The first attempt to harmonize donor activities dates back to 2002 with the signature of an agreement (SBC-CSLP) between the European Union, Denmark, France, Germany, the Netherlands, Sweden and Switzerland with Government approval. IDA and the AfDB became active members of the initiative in a later phase, while the IMF has an observer status and can participate on a voluntary basis. In the education sector, particularly in basic education, donors coordination started at the same time with Netherlands, Canada and IDA jointly designing their contribution to the government ten year program. This design was extended to include other donors into the cadre partenarial for all interventions and into the pooled funds with seven donors (including IDA from 2006 to 2008).

In February 2004, the Government proposed a revised and more inclusive version, bringing all budget support partners into the Cadre Général d’Organisation des Appuis Budgétaires (CGAB, an organizational framework for coordinated budget support). Focused on (i) ownership; (ii) alignment; (iii) predictability; (iv) and result-based approach, the CGAB is built around a joint performance matrix which is the principal tool for coordination and evaluation.

The CGAB monitors and evaluates permanently but has three mandatory sessions each year, with a formal performance session held at the time of the annual review of the PRSP progress report. All these sessions are chaired by the Minister of Economy and Finance, supported by a secretariat made up of a representative of the administration and two representatives of the donors. Joint missions are planned to reduce administrative transaction costs.

On the basis of three-year experience, the preliminary conclusion is that donors’ coordination and harmonization require further work to rationalize the joint policy matrix, which should become more focused on strategic milestones of the government’s policy, while minimizing transaction costs. Future work will, among other, focus on improving the PRSP monitoring and evaluation system and aligning the CGAB and PRS processes. In particular, the operation of the sectoral and thematic Commissions (CST), which is the anchor of the monitoring-evaluation system of the PRSP implementation, needs to be strengthened and reliable data made available to better inform the monitoring and performance indicators. This alignment will be particularly relevant for the education sector which has aligned its review to the CGAB.

In conclusion, Burkina Faso experience in budget support coordination and harmonization has considerably improved with the introduction of the CGAB and the education sector pooled funds, but some significant challenges that go beyond the framework of budget support remain to be solved to further strengthen the system.

75. The first phase support to the Government’s Basic Education Sector Development Program, has enabled the MEBA to establish a process of harmonization among key

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development partners in the sector through a harmonization framework which uses national systems and by supporting further improvement to bring them to international standards. This includes: (a) joint supervision and review missions of PTFs and government; (b) oversight by the MEBA of donors interventions, which have contributed to ensuring consistency of the interventions with the Government’s Program; and (c) signing and implementing a MoU which governs collaboration on all aspects of the program. IDA has completely aligned its basic education joint review missions with the calendar of the CGAB. Several CGAB members also contributing in the education sector have actively participated in IDA’s missions leading to the proposed operation. IDA collaborates with several other partners in the context of sector programs which are integrated in the national budget mechanism.

C. RELATIONSHIP TO OTHER BANK OPERATIONS

76. The PRSCs which are the main instruments for supporting the government’s program cover three areas that complement and that will reinforce the impact of the government’s education sector program viz: sustainable and equitable growth, use of public sector resources to promote human capital development and decentralization and modernization of public sector management. In addition to the PRSCs the following operations also complement and will reinforce the proposed Basic Education Program: the Administration Capacity Building Project (US$7 million equivalent, FY05); the Statistical Capacity Building Project (US$10 million equivalent, FY04); the Decentralized Urban Capacity Building Project (US$10 million equivalent, FY07); the Second Community Based Rural Development (CBRD) Project (US$74 million equivalent, FY07) which aim to build capacity in public administration for policy formulation, implementation and monitoring, streamlining public administration, modernizing personnel management, and enhancing the poverty focus of expenditure in the context of decentralization. In social sectors (education and health), the Basic Education Sector Project (US$36 million equivalent, FY02 and additional financing of US$15 million in FY08) and the Post Primary Education Project (US$23 million equivalent, FY06) in education, and the HIV/AIDS Disaster Response Project (US$22 million equivalent, FY02) and the Health Sector Support and AIDS Project (US$63 million equivalent, FY06 and additional financing in FY08), support social services delivery, particularly for the poor.

D. LESSONS LEARNED

77. The design of the proposed operation draws on lessons from a recent Implementation Completion and Results Report (ICRR) for the PRSC 4-6 series that was circulated to the Board in February 2008, as well as from the Implementation Completion Report (IF-N0070) for the Post Primary Education Project – P000304. The key lessons focus on the experience in implementing policy and institutional reforms through general budget support, promoting equity through reforms, decentralization and partnership with the private sector.

78. General budget support needs to identify a clear institutional anchor for reforms. Experience with previous PRSCs show that consistent progress was made in areas under the direct control of the central ministries, notably the Ministry of Economy and Finance, whereas progress was uneven where implementation of reforms included in PRSCs depended upon the involvement of particular line ministries and on the capacity of the Ministry of

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Economy and Finance to coordinate sectoral reforms. This series of operations while benefitting from general budget support would rely on the sector ministries responsible for education and training to implement the reform program. This would ensure greater ownership and commitment to the reforms during implementation leading to greater chances of success.

79. Gender Equity. A key lesson learnt from the CAS is the need for better understanding of challenges faced by women and girls through AAA in order to mainstream gender in all projects. In this series of operations interventions are based on the specific constraints that prevent girls and other disadvantaged groups from benefiting from education have been analyzed in the CSR. Targeted responses for different parts of the country have been identified and will be implemented with community support to increase participation and learning achievement for girls in particular. This is a continuation of an approach that has allowed Burkina to make substantive efforts to increase girls share in education as shown by the parity index girls/boys = 0.90.

80. Decentralization. The absorptive capacity of the budget is weak due to centralized management which stretches government capacity in responding effectively to requirements at the local level and unclear procedures for involvement of local authorities in the management of schools. This issue will be addressed through decentralization/deconcentration in the management of the education system including expanding the use of the school based management approach. Experience with decentralization, especially school based management, has demonstrated that absorptive capacity can be substantially increased through these methods.10 Ownership and participation from local communities is stronger and more meaningful when communities are consulted and participate in the decision-making process. Schools and communities will therefore be made an integral part of the decentralized management system to improve absorptive capacity and efficiency in the use of resources. The roles and responsibilities of communities in the management of schools including school construction has been agreed and described in new regulations issued by the Government and resources will be transferred to communities to carry out specific functions. Communities will also be involved in monitoring school operations including punctuality and absenteeism of staff and students.

81. In further pursuit of the decentralization policy responsibility for school construction has been expanded to include the private sector and communities to increase the rate and quality of the infrastructures built. In 2009, the ministry transferred infrastructure funds to 13 communes and in 2010, the transfer will be expanded to the 49 urban communes. Experience in the ongoing Basic Education Project has shown that the private sector and communities build much better quality schools and more quickly.

82. Partnerships with the private sector and NGOs especially at the decentralized levels are alternative ways to enhance post-primary education with low recurrent costs to the Government and households. Access to private schools can also be more equitable than for public schools. The Government will provide an appropriate regulatory framework and specific incentives for municipalities and the private sector to increase their participation in the provision of secondary education. Such efforts have already started with the ongoing Post Primary Project.10 Tanzania: Primary Education Development Program – World Bank Program Document and Implementation Completion Report

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E. ANALYTICAL UNDERPINNING

83. The BEPSG-1 benefits from several analytical reports recently completed. In FY08, an education sector review and a regional water and sanitation PER helped deepen our understanding of two key sectors in the decentralization process. The education sector review has been the basis for preparing the FTI request. A set of studies were completed in FY06 to assist in identifying priority reform for spurring growth, diversification and employment. These studies included a labor market study and an investment climate assessment (ICA). In FY07, an ESW on Decentralization and a PEFA were made available.

84. The design of The BEPSG-1 also benefited from the actual PRSC series (7-9), and many other sources including a recent report on the diagnosis of the Independent Audit Institution (Cour des Comptes) and its Action Plan (European Commission, October 2006), and a report on the sources of growth and the vulnerability of Burkina Faso’s Economy to exogenous shocks (Government - MEDEV, December 2005). These studies helped identify the strengths and main shortcomings in Burkina Faso’s fiduciary system and served as inputs for the authorities’ update of the budget management reform program (Programme de Réforme de la Gestion Budgétaire). This program, supported by all donors, is a key instrument toward increased donor harmonization in Burkina Faso.

85. The recent Education Sector Review has assisted the Government in readjusting the national program towards the development of the education sector as a whole. The report concluded that expansion of basic education is hampered by cost associated with schooling, and therefore free basic education will improve the demand side for education, particularly for rural communities and vulnerable families. It also underlined shortcomings on quality due to poor management of teachers, low learning time, inefficient use of classrooms with a bi-annual student’s intake, and the need to expand multigrade classrooms as an alternative for a cost effective expansion of the system. Given the rapid expansion of the basic education sub sector, the shortage of space in secondary education, and the need to increase the workforce ability to adapt to the growing economy, alternatives for developing vocational training have been identified. The adjusted national program has addressed these issues identified through its second phase of PDDEB which is supported by the FTI grant.

86. The Making Decentralization Work study in 2007 identified key challenges in this area. In particular, the report concluded that at the central level, the complex set of decentralization and de-concentration structures requires further rationalization and that the mechanisms for intergovernmental transfers needs to be clarified to ensure an appropriate development, regular and transparent transfer of resources to the communes. The report also clarified that at the commune level, limited basic capacity in planning and budget management constitutes a major obstacle, and that local revenue collection and adequate staffing need to be addressed. The Fond Permanent de Developpement des Collectivités Territoriales (FPDCT) was developed in response to this diagnosis to facilitate local development. In addition to the decentralization ESW, the World Bank commissioned a political economy analysis in 2008, which highlighted that civil society and the media are constrained by weak capacity and limited access to information pertaining to public decision making and governance. The study concluded that to improve accountability and transparency, the government needs to revisit the freedom of information framework and

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develop appropriate avenues for engaging more openly with civil society and the media. Using these findings, the education sector has been at the forefront of implementing the government’s agenda on decentralization. Both studies helped deepen our understanding of two key sectors for the decentralization process and informed the policy measures proposed in the matrix to improve access to quality basic education.

87. The upcoming CEM on growth, competitiveness and diversification prepared by the Bank highlights the critical importance of reforms in the country’s sustainable development strategy and in competitive human capacity building. The labor market study conducted in 2006 identified priority reforms for spurring employment that provided relevant insights into the choice of policies supported by the operation. The upcoming PER (FY 10 deliverable) takes stock of recent trends in public spending and proposes a road map for decentralization in health, education and rural development. It proposes ways to leverage the decentralization process in order to improve public service delivery in these sectors. Some of its early findings on the importance of transparency and accountability at the local level have informed this operation.

88. The education sector in depth Public Financial Management assessment conducted by the Bank and the PER under preparation will ensure existence of effective controls. The assessment has identified constraints related to: (i) improving the budget process (from preparation to execution) to prevent the loss of funds due to in-year budget “regulation” and delay in school constructions, (ii) using funds for the purposes intended in an economical, effective and efficient way, (iii) improving accountability and transparency in funds management. The actual mechanism of financial management includes: (i) elaboration and adoption every year of a national procurement plan; (ii) production of semestrial financial and procurement implementation reports; (iii) adoption of a decree on MOD (maitrise d’ouvrage déleguée); (iv) transfer of funds to communes and deconcentrated units; (v) creation of specific units in charge of procurement within each ministry; (vi) capacity building of staffs on fiduciary aspects; (vi) mid-term review of the budget. A Technical Assistance has been put in place to support the capacity building needs in the fiduciary to support efforts to test out program budget and implement an adequate internal audit arrangements including physical control of infrastructures in Ministries of Education.

V. POLICY AREAS TO BE ADDRESSED THROUGH THE BEPSG 1-3

89. The Basic Education Program is quite ambitious and is an expression of the Government’s desire to aggressively develop the education sector in support of the country’s development goals. In line with this implementation of the reforms has started. However, the pace of the reform in the different areas varies and is largely determined by the readiness to introduce the proposed policies and institutional changes. This is especially so with regard to reforms related to early childhood and adult education and technical education and vocational training. This series of programmatic operations will, as a priority, help put in place reforms in primary education to help strengthen the foundations of the education system in preparation for the development of early childhood and post-primary education and training. During the period 2009 to 2011 reforms and institutional changes in pre-school and technical education and vocational training will therefore be concentrated on refining the policies, strategies and institutional frameworks that would permit a more rapid pace of reform in these areas in the medium-term The Policy Matrix and Monitoring Indicators will therefore be largely related to primary education.

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90. The main policy areas to be supported by this operation are: (i) continued provision of free primary education; (ii) reduction in disparities in access to education; (iii) improvement in the internal efficiency of the system; (iv) improving the use of learning time; (v) improved alignment of the curriculum with labor market needs; (vi) strengthening pedagogical management of the system, and (vii) further improvement of the education sector management through decentralization.

91. Although good progress has been made in education in the last few years, achievement of universal primary education by 2020 will necessitate the introduction of a number of education policy and institutional reforms to address constraints to further development of the education sector as identified in a number of pieces of analytical work.

Policy Area 1: Increasing Access and Equity

Free Public Primary Education

Description: Public primary education is free and compulsory in Burkina and the Government plans to expand coverage of free primary education to post-primary education i.e. first cycle secondary education.Challenge: Although primary education is free and compulsory public financing of the system is inadequate to provide access to quality education for all. Schools therefore continue to require contributions from parents to finance infrastructure projects as well as learning costs. Government Actions and Future Activities The Government plans to make its policy on free and compulsory education more effective. It will establish regulations for allocation of funds to the school level to meet the minimum required costs for providing good quality education to all students including the disadvantaged. In addition, increased involvement of parents in the management of schools to improve the efficiency of the system will be established.

Specific Measures To implement this policy, the following specific measures will be undertaken:(a) Regulations for the allocation of resources to schools and communities will be signed by the Secretary-General of the Ministry of Basic and Adult Education by September 2009.(b) The 1991 instructions regarding contributions from Parent Teacher Associations will be revised to bring them in conformity with the Education Law to be approved in June, 2009.(c) Agreements between Government and parents will be put in place in line with the 2009 Education Law(d) Government, following the new regulations, will allocate adequate funds for recurrent costs for schools in the budget and will transfer resources to schools according to the agreed procedures.Expected Results Enrollment rate is expected to increase by the target included in the table of indicators as students will no longer be prevented from attending school because of inability to pay the required contributions and schools will also have adequate funds to provide quality education which will encourage parents to send and retain their children in schools.

Reduction in disparities in access to education

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Description: Despite the good progress that has been made in the recent past, there continues to be serious gender, geographic and income disparities in access to education in the country. Challenge: The challenges the government faces relate to difficult and diverse geographic and cultural factors that constrain access to quality education in many areas of Burkina. Due to the specificity of these constraints it has been difficult to reduce the disparities through generic interventions to expand access and improve quality. Government Actions and Future Activities: The Government has analyzed the reasons for limited access in low enrollment areas and has identified the specific constraints to access and is exploring options targeted at addressing these constraints.

Specific Measures: The Government will implement the following measures to achieve the policy goals:(a) In 200911 the results of the analysis on constraints and disparities will be distributed to all regional education offices, local authorities and schools.(b) In 201012 regional offices will develop targeted actions to increase equity in access to education in their respective areas using the results of the analysis.(c) In 201113 institutions at the decentralized level will begin to implement the action plans that will be monitored at regular intervals to assess progress in reducing inequities.

Expected Results: Inequities in access to education will be reduced by the targets included in the actions plans.

Improvement in internal efficiency

Description: Internal efficiency is low due to the practices of maintaining high repetition rates and biennial school intake.Challenge: Part of the culture in Francophone African countries is the belief that repetition is good for students. Teachers and parents therefore encourage relatively high levels of repetition. Also, biennial school intake is practiced to increase the student/teacher ratio in some sparsely populated areas where there are not enough students in the school catchment area to meet norms for the student/teacher ratio.

Government Actions and Future Activities: The Government has examined options for reducing repetition rates and has drafted measures to address the issue. Options for addressing biennial intake have also been examined.

Specific Measures: Specific measures to address these issues will include:

(a) In 2009, (i) regulations will be introduced to abolish repetition within cycles and to limit repetition to 10% between cycles; (ii) the circular regarding annual school admissions will prohibit biennial intake as from 2010/2011 and multigrade classes will be introduced in the same year; (iii) guides for management of multigrade classes will be distributed to all primary schools.(b) In 2010 all multigrade classes will be provided with the minimum required pedagogical kits. These kits will continue to be provided regularly as needed11 2009 refers to the school year 2009-201012 2010 refers to the school year 2010-201113 2011 refers to the school year 2011-2012

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Expected Results: Multigrade classes will begin to function effectively and repetition rates will be lower, leading to an increase in internal efficiency.

Policy Area 2: Quality Improvement

Improving use of Learning time

Description: The use of teaching learning time for students and teachers needs to be improved to help improve learning outcomes.

Challenge: The prescribed learning time is frequently not respected due to lax supervision of teachers and lateness and absenteeism of students.

Government Actions and Future Activities: The Government has carried out a study on the use of learning time and the recommendations of the study will be converted into agreed action plans for primary and secondary education which will be made available to all local authorities and schools

Specific Measures: - The following specific measures will be undertaken:

(a) In 2009, (i) the recommendations of the study on use of learning time will be converted into action plans and (ii) the circular conveying instructions for annual school admission will include reminders to officials of their obligations to monitor lateness and absenteeism of teachers and students.(b) In 2010, the action plan to improve time on task will begin to be implemented in primary schools.(c) In 2011 (i) implementation of the action plan for improving the use of learning time in secondary education will be initiated; (ii) the reports from CCEBs will include the results of their monitoring of the lateness and absences of students and teachers

Expected Results: Education officials and schools will have a heightened awareness of the need to monitor students and teachers and the steps they need to take to address any issues. As a result instructional time will be used more effectively and student achievement will increase.

Need to better align curriculum to labor market needs

Description: The areas of specialty in technical education and vocational training will be diversified to better align them to labor market needs.

Challenge: The education and training programs are not geared to train students for the needs of the labor market.

Government Actions and Future Activities: To address this challenge, the Government plans to undertake a number of actions.

In 2009 it will:

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(a) diversify the curriculum in the 6th grade of primary education to introduce vocational skills.

(b) expand the specializations in first cycle technical education and vocational training to respond to the needs of the labor market.

In 2011 the Government will revise the current skills certification system.

Specific Measures: The specific measures to implement the reforms will include the following:

(a) In 2009 an outline for the development of a restructured technical education and vocational training system will be approved.

(b) In 2010 the action plan for the first phase of an integrated system for TVET with the private sector will be implemented in 2 or 3 regions.(c) In 2011 a framework for the national certification of skills will be adopted and implemented.

Expected Results: TEVT will begin to use training programs and standards that are better adapted to the requirements of the job market.

Policy area 3: Strengthening the Capacity for Administrative and Pedagogical Management

Improved teacher distribution

Description: The Government plans to increase equity in teacher distribution

Challenge: Despite regulations regarding the allocation of teachers, there continue to be serious intra and inter district disparities in teacher distribution.Government Actions and Future Activities: To address this issue the Government will:(a) involve communities in decisions regarding teacher allocation;(b) by 2010 it would have prepared a study and drafted a law regarding the employment of education sector staff, and (c) in 2011 Government will evaluate progress in implementing the law relating to teacher appointments and distribution

Specific Measures: The following specific actions are planned:(a) In 2009 a circular will be issued regarding the composition of provincial and district commissions responsible for teacher distribution taking into account the inclusion of communities.(b) In 2010 instructions for the implementation of the law relating to appointments specific to each administrative level, including educational institutions, will be approved and implemented from school year 2010/2011.(c) In 2011 instructions for the implementation of the law relating to appointment specific to each level, including educational institutions will continue to be implemented.

Expected Results: Decisions on teacher distribution will more closely follow local needs. In 2010 distribution of staff will start to become more equitable, and increased equity in teacher distribution will become evident.

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Increased decentralization in the management of education

Description: Decentralization and Deconcentration in the management of education will be intensified.

Challenge: There have been some delays regarding the decentralization of the management of education.

Government Actions and Future Activities: The Government plans to decentralize management of education in conformity with its decentralization policy. The following activities are planned:

(a) By 2010 the Government would have evaluated the results of the transfer of funds to the 49 urban communities for generalization.

(b) 2011 the Government would have evaluated the experience of implementing the agreements in the urban and rural communities and amended the strategy as appropriate.

Specific Measures: Measures to implement the policy will include the following:

In 2009, (i) A law will be approved to make it obligatory to publish budget allocations and data related to activities financed by government resources using all public means including rural and community radio.(ii) A Law regarding the status and responsibilities of the COGES will be approved and distributed widely.(iii) The agreement for effecting transfer of investment funds is signed between the Government and the 49 urban communities(b) In 2010 (i) the agreement for the transfer of investment funds will be extended to certain rural communities (Action Plan 2011)(ii) The unspent investment appropriations of education infrastructure projects will be automatically rolled-over to the next year’s budget as of 2010 (c) In 2011 the agreement for the transfer of investment funds is extended to all communes

Expected Results:-Resources for activities at the local level will be more effectively used -Local authorities will be fully involved in the management of education at the local level-Transfer of funds to rural communities’ starts.Decentralized management will start in all communes to increase efficiency in resource utilization

Prior Actions completed prior to the provision of the BEPSG-1

92. The BEPSG-1 to 3 will introduce policy and institutional reforms to improve the operational efficiency of the education sector, which are consistent with the medium-term reform program for the sector, as well as the sector’s effectiveness in supporting the Government’s poverty reduction strategy. As per any development policy operation, an adequate macroeconomic framework will have to be maintained during the operation period. The list of prior actions and triggers for the series contain the key actions needed to ensure success of the government’s sector program, given the challenges and progress made so far in

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reforming the various areas in question. The list is also fully aligned with the Sector Policy Letter and the GoBF strategic choices. The detailed definition of the measures (policy actions) proposed for 2009 by the Program framework is clearly spelled out in Annex 2, with a formulation that is fully consistent with the proposed triggers set out in Box 2 below.

Box 2: Prior Actions/Tranche Release Conditions/Triggers for Basic Education Program Support GrantThe government has agreed upon and implemented the following prior actions before effectiveness of the Grant:Overall Policy Measures

Prior Action 1: Revision of the Recipient’s 2009 annual work program for the Basic Education sub-sector to, inter alia, update policy and institution strengthening actions to be carried out during the last semester of 2009

Increasing Access and Quality

Prior Action 2: Identification by the Recipient’s ministry responsible for Basic Education of territory all of the following schools within the Recipient’s territory, with a view to ensuring in a next step that they will comply with the applicable laws and regulations of the Recipient relating to class size and intake: (i) schools with multi-grade-classes, (ii) schools practicing “biennial school intake”, and (iii) schools with multi-grade classes which do not comply with the multi-grade-classes enrollment criteria.Prior Action 3: Continued implementation of the Recipient’s Basic Education decentralization strategy through the identification and communication by the Recipient’s Ministry responsible for Basic Education to the Recipient’s Ministry responsible for decentralization of a list of 14 school complexes, 12 three classroom-blocks, 29 latrines blocks, whose construction is planned as part of the 2009 annual budget, and with respect to which construction and management responsibilities have been transferred to the urban Commune in which the relevant school complex is located.

Prior Action 4: Issuance by the Recipient’s ministry responsible for Secondary Education of guidelines (note de cadrage) dated June 15, 2009, for the development of a national strategy for reducing the deficit of teachers in Secondary Education, and establishment of an ad hoc committee comprised of representatives of all interested ministries of the Recipient, to be responsible for the preparation of a proposed strategy consistent with said guidelines, to be submitted for approval by the Recipient’s Cabinet not later than August 15, 2009.

Improving the internal efficiency of the system

Prior Action 5: Issuance by the Recipient’s ministries responsible for Basic Education and Secondary Education respectively of an inter-ministerial regulation (arrêté), limiting the repetition by students of grades between two sub-cycles, prohibiting repetition by students of grades within each sub-cycle in Primary Education, and limiting the repetition by students of grades in the first cycle of Secondary Education.

Prior Action 6: Introduction of a system to monitor time spent by teachers in providing instruction to students in Primary Education and the first cycle of Secondary Education, and preparation of an action plan to implement the recommendations of the Recipient’s studies on improving students’ learning time entitled, respectively, “Etude Relative au Volume Horaire Effectif de l’Enseignement Primaire au Burkina Faso”, dated January 7, 2008, and “l’Effectivité de l’Année Scolaire 2006-2007 – Suivi du Calendrier Scolaire”, dated December 2008.

Prior Action 7: Adoption by the Recipient’s ministry responsible for Basic Education and the Recipient’s ministry responsible for Secondary Education, respectively, of an action plan for the implementation of the Recipient’s strategy for the assessment of students’ learning in Primary Education in the forty-five Provinces, and in institutions of the first cycle of Secondary Education in 23 Provinces.

Prior Action 8: Issuance by the Recipient’s ministries responsible for Secondary Education and for professional training respectively, of an inter-ministerial decision, for the introduction of apprenticeship training and issuance by the Recipient’s ministries responsible for Basic Education, Secondary Education, and youth and employment respectively, for the aggregation of various education resources in institutions offering Secondary, Technical and Professional Education (ESTP - Enseignement Secondaire, Techniques et Professionnel).

Health, Nutrition and HIV/AIDS

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Prior Action 9: Approval by the Recipient’s ministry responsible for health and the Recipient’s ministry responsible for Basic Education of a draft strategy on health and nutrition in schools (projet d’orientations stratégiques du secteur de l’éducation pour la lutte contre les IST-VIH, la malnutrition et les autres problèmes de santé (2009-2011)), approved by the Recipient’s ministry responsible for health and the Recipient’s ministry responsible for Basic Education, with a view to its submission to the Recipient’s Cabinet for adoption.

Box 3: Good Practice Principles for Conditionality

Principle 1: Reinforce Ownership

The FTI grant is embedded into the country program-PDDEB-which first phase has been successfully implemented from 2002 to 2007, and is an organizational framework for coordinating all interventions in the sector. It defines the country priorities, strategic choices, and policy reforms to be carried out for the education sector toward achieving the MDGs. It focuses on (i) ownership of the reform process; (ii) alignment with the country’s PRSP; (iii) predictability of funds; and (iv) a result-based approach which is coordinated and agreed upon with the Government, civil society, and the donors involved in the sector. The Bank, in conjunction with other donors, has supported the country in conducting a country status report, and other analysis which have been the basis for framing sector reforms.

This DPL is the first one in the education sector in Burkina Faso. It has been a joint work with government and donors based on the analytical work done, and on agreed results framework. The request was prepared by the government in 2007, endorsed and supported by local donors group (LDG) in 2008, and submitted to the FTI committee in December 2008. LDG and the government have agreed on two annual joint review missions based on approved results framework, annual action plan, and MTEF which are reviewed jointly and constitute the principal tool for coordination and evaluation of sector interventions. This procedure allows for accountability along shared objectives and performance indicators.

Since 2002, IDA’s as well as LDG support through PDDEB is part of the PRSP framework in response to Government demands to align donor support to lower transaction cost for the Government and to harmonize the policy dialogue along with the other donors around the Government’s program and its priorities, as well as the accountability framework for sector. This operation is completely aligned with the program which offers two principal sessions with the Government to assess progress toward the objectives (April-May), policy outcomes to identify policy measures and possible conditions for support (October-November) which also feeds into the PRSP report on the sector. Only reforms truly owned by the Government, however sensitive, have been retained in the program.

The operation policy matrix uses a limited set of conditions (9 in total for first operation), which function as triggers (prior actions) for approval and future disbursement. The chosen policy measures were identified jointly with the Government as well as the other donors to ensure a critical contribution to the Government’s reform program and to coordinate with conditions necessary for the sector. Conditionality is focused only on critical operational actions which would move the Government’s reform agenda further. The matrix (Annexes 2) provides further program benchmarks, some of which can be used as conditionality for subsequent operations.

The PDDEB monitors and evaluates permanently progress made with regard to policy implementation and conducts the above described two mandatory annual review sessions. These two sessions are chaired by the Minister of Basic Education, supported by a secretariat made up of a representative of the administration and the lead donor. The two sessions are open to interested parties, and the principal results as well as a summary of the discussions are documented and publicly available. The Government incorporates feedback into its own reporting, including for the Annual Progress Report.

VI. OPERATION IMPLEMENTATION

A. POVERTY AND SOCIAL IMPACTS

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93. The BEPSG 1-3 is expected to have a significant positive direct impact on poverty reduction. First, the expansion of quality basic education targeting in particular rural areas supported by the proposed operation would support increased individual and family incomes and economic growth through opportunities aimed at increasing productivity in the rural as well as urban economy. In addition, targeted interventions to increase the participation of disadvantaged groups, including girls in the education, would help promote greater social cohesion and increased productivity of groups now largely on the margins of economic growth. In turn this would help increase individual and community incomes for disadvantaged groups that would further help promote economic growth in the long run. Externalities from increased levels of education would also help raise the levels of living of communities and disadvantaged groups through improved practices in child bearing and rearing, nutrition, health and sanitation. Improved practices in these areas would also reduce the burden of provision of social safety nets on the public sector creating fiscal space for increased investment in development expenditures.

94. Second, the strengthening of public financial management is expected to enhance efficiency, transparency and accountability in public resource use. Such measures would increase the country’s absorptive capacity for external resources as it will enhance social services delivery particularly for the poor. Both of these would help increase returns to investments in the education sector.

95. Third, the reforms related to decentralization/deconcentration including closer involvement of families and communities in the management of schools would help promote efficient use of resources and increased learning outcomes by building stronger community/school organizations that would work more effectively to improve the teaching learning process. A significant by product from increased transfer of resources to communities would be higher incomes in those areas because of increased demand for local goods and services.

B. ENVIRONMENTAL ASPECTS.

96. The potential environmental and social effects associated with the implementation of the reforms supported by the proposed BEPSG-1 are mainly related to schools construction and they are not likely to have significant negative environmental effects. The Government of Burkina Faso has tasked the Ministry of Environment to supervise compliance of public policies and programs with environmental regulations. While conducting the PRSC in May 2007, the environmental team assessed the readiness of the recipient to deal with environmental issues. The assessment found that Burkina Faso has the necessary regulations pertaining to environmental assessment but that compliance with such regulations is weak. To overcome that, the Ministry of Environment has prepared a program budget to reflect its institutional and technical capacity needs until 2010, during the course of which some of its staff benefited from technical training in budgeting techniques. The Basic Education Development Program will draw on extensive Environment Assessments undertaken during the preparation of the Basic education Support Project and the Post Primary Education Project which took into account the environmental and social analysis conducted for other Bank operations as well as the capacity of national and local public sector agencies to manage the environmental and social issues facing Burkina Faso. Furthermore, support for Burkina’s environmental compliance is provided by the environmental

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management activities in several IDA financed investment projects in the sectors of energy, forestry, cotton/agriculture, and health which did not show any major issue.

C. IMPLEMENTATION, MONITORING AND EVALUATION

97. The Ministry of Economy and Finance will be responsible for overall management of the Grant. Regarding the technical implementation of the policy reforms and institutional strengthening supported by BEPSG 1-3, the Secretary of the Permanent Secretariat for the Monitoring of Basic Education Development Plan (SP-PDDEB) in the MEBA will lead the Government’s technical team with representatives of the Ministries of Economy and Finance; Labor and Employment, Social Protection, Basic Education and Literacy; Secondary Education, Higher Education and Scientific Research; Decentralization; Public Administration and representatives of teachers unions and parents associations.

98. IDA’s supervision effort will be aligned with the Government-led monitoring and evaluation system underpinning the PDDEB, the Annual Action Plan, and the two joint (donors and government) supervision missions conducted each year. The specific benchmarks and outcomes to be monitored under the proposed Grant (see Annex 3) are extracted from the Government Basic Education Development Program as synthesized in the Letter of Development Policy (Annex 1), thus providing significant benefits in reducing transaction costs for the Government. These outcomes are included in the joint performance matrix of the education sector under the PRSP. IDA staff has been working with the authorities and the other donors under the PRSP to ensure that coordination of the supervision efforts will increase predictability and aid alignment with the budget cycle. In assessing the implementation of the Basic Education Development Program which the proposed Grant supports, the PRSP will take into account factors outside Government’s control that may alter the underlying assumptions for a successful Program implementation.

99. On technical aspects, the program management and monitoring mechanism set-up during the first phase of PDDEB implementation will be strengthened and expanded at the central and deconcentrated levels to cover new ministries included in the basic education reform (Labor and Employment, Social Protection, Secondary Education, Higher Education and Scientific Research). In each ministry, the Directorate for Studies and Planning (DEP) is responsible for data collection and program monitoring; they will provide annual information for program monitoring and evaluation. Each DEP will provide data timely to SP/PDDEB for consolidation and analysis in order to write periodic report in accordance with PDDEB M&E manual. A small committee comprising each DEP will validate data as consolidated by SP/PDDEB before holding the session of the National Steering Committee.

- The National Steering Committee under the Prime Minister Leadership and which includes ministers and central directorates of ministries in charge of basic education. Representatives from teachers unions, parents associations and NGOs are also members of this committee who hold a session each year to assess progress and make recommendations for policy orientation and better implementation;

- The Permanent Secretariat of PDDEB (SP/PDDEB) in place since 2000 and has carried-out coordination of the first phase implementation. Its authority will be extended along with the education sector reform extension to include other line ministries, in particular post primary education;

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100. In addition to these institutional arrangements, there are three instances where opportunities of consultations, coordination, and team work take place: (i) The Cadre Partenarial  which is a MoU signed by all donors active in the sector; (ii) The joint supervision missions (field visits and technical working groups); and (iii) the thematic groups which are focused on specific issues of the program (access, quality, sector management and fiduciary management) have sub groups in each region of the country.

101. Deconcentrated units of line ministries in charge of basic education will be organized within a single regional unit which will carry planning, coordination, and monitoring activities under regional governors’ responsibility. These units will produce quarterly reports to inform their direct supervisor and the SP/PDDEB on program implementation progress and issues to be addressed. Their specific mandates are:

- Daily monitoring of program activities implementation ;

- Assess reports presented by each local unit and ensure a better coordination among various representatives of line ministries (MEBA, MESSRS, MASSN et MJE);

- Conduct field visits missions to appreciate and collect information for activities monitoring;

- Produce required reports, propose and implement corrective measures for sound activities implementation;

- To closely monitor educations activities, each region will hold a regional steering committee session twice per year to assess progress and address major issues.

Regional units will participate in the joint supervision missions at the national level.

102. Fiduciary obligations of the program will be carried out by regular units of ministries and each ministry Budget and financial management unit will be responsible for overall activities implementation and management of funds. At the decentralized level, more effective expenditure control mechanisms have been put into place to mitigate any possible shortcomings. In addition to the prior reviews conducted by local financial controllers, annual post reviews are also conducted by the auditing department of the Treasury since 2007.

BASIC EDUCATION PROGRAM MONITORING INDICATORS AND DEVELOPMENT OUTCOMES

103. The indicators described in the attached table are largely output indicators due to a number of reasons. The series of three operations would support only 2 years of the government’s Education Sector Program and this would not allow adequate time for measurable changes to take place and translate into outcomes. The program will therefore only contribute to the outcomes Education Sector Development program which will be continually assessed.

Table 4: Key Output IndicatorsProgram Area Key Monitoring Indicator Status

in 2006

Status in 2008/09

Target for 2011

Expected Outcome in 2015

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Increasing Access and Equity in EducationIncreasing Access and Equity

Gross Intake Rate at 1st grade of primary 73% 80.2% 110% 107%Gross Primary Enrollment Rate 60.7% 71.2% 85% 100%Girls’ share of primary school enrollments

42% 46.4% 45% 48%Gross Enrollment rate in lower secondary(Girls) 17% 28.4% 35% 47%Number of students enrolled in Secondary VET 6354 7805 11 871 20 762

Number of young out-of-school trained in professional training centers 4000 10000 20000 40000Repetition Rate in primary education (Girls) 12% 9%

8%

Gross Primary completion rate (Girls) 31% 44% 55% 75%Number of classrooms available (‘000) 22 34.855 42 55Number of multigrade teaching classes 5384 11,790 10,000 13,000

Quality ImprovementUse of Learning Time

Annual number of Instructional Hours for Students 570 800 920

Teacher Supply Pupil/teacher ratio 55 53 51 48More diversified school and TVET programs

Number of TVET curriculum revised and adapted to the economy - 7 16 70

Strengthening Management of the Education SectorLevel of financing of the sector

Share of Recurrent Costs as a % of GDP in national Budget 1.9%

2.0%2.5

2.7

Share of Primary Education as a % of GDP in national Budget 3.1% 2.8% 3.0 3.4

Improving Teacher Distribution

Proportion of teachers not assigned to a classroom

387411,8%

415710,7% 5% 4%

Increasing Decentralization of Management

Average Cost of school Construction(i) Public(ii) Community

6,1304,350

7,2504,500

5,0004,000

4,0003,500

Number of communes receiving funds for: (i) Investments (ii) Schools operations

1349

4970

100100

D. FIDUCIARY ASPECTS

104. Management of the funds will be carried out through the public financial management system. The Government made considerable progress in the context of public resource management with the introduction of a broader integrated action plan to strengthen public finances in 2007 (SRFP), the introduction of computerized expenditure management systems in the regions, the preparation of timely reports on budget execution and adoption of program budgets, MTEFs in key sector ministries including the Ministry of Basic Education and Literacy, and the introduction of a software and I.T. network to track public procurement. Burkina has made marked progress on four main pillars of reforms in public financial management: (i) budget preparation; (ii) budget execution and transparency; (iii) public procurement; and (iv) internal and external oversight, including the fight against corruption. This provides confidence that the resources will be managed consistent with the PRS and the MTEF.

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Budget Preparation:

105. There has been a progressive move towards greater focus on performance and increased alignment of budget allocation with the MTEF and PRSP priorities. The budget management process has also been strengthened to include focus on budget execution and transparency including preparation of a functional budget classification with markers for poverty-spending. Increased attention is also being placed on production and dissemination of relevant budget information.

FINANCIAL MANAGEMENT:

106. The 2001 CFAA and CPAR, and the 2004 HIPC AAP, were key inputs in the preparation of the Government’s budget management reform program (Programme de Réforme de la Gestion Budgétaire, PRGB). The Government has also used the findings of the 2005 CPAR and the 2007 PEFA assessment to update the PRGB and transform it into a PFM reform strategy (Stratégie de Renforcement des Finances Publiques or SRFP). The SRFP is supported by most donors providing budgetary support, and is a core element of the MOU for budget support. Under PRSC-1 to PRSC-8, most recommendations of the CFAA and CPAR have been successfully implemented, including the implementation of annual audit procedures recommended by the CFAA. PRSC-9 builds on the achievements under the previous PRSCs by supporting the further strengthening of internal and external oversight, and by including additional measures to enhance policy-based budgeting and budget transparency. In the context of PRSC-9 preparation, the Bank has reviewed fiduciary arrangements. Overall, the Bank has judged implementation performance of the PFM reform program to date and Government’s commitment to PFM improvements as satisfactory.

107. The Central Bank of the West African States (BCEAO) is the common central bank of the West African countries, including Burkina Faso. In 2005, IMF staff carried out an on-site safeguards assessment of the BCEAO and found that progress had been made in strengthening the BCEAO’s safeguard framework since 2002 when the last safeguard assessment was undertaken. The BCEAO now publishes a full set of audited financial statements, and improvements have been made to move financial reporting closer to International Financial Reporting Standards (IFRS). IMF staff noted that the BCEAO has improved the explanatory notes to the financial statements and further changes are scheduled for the next fiscal year, with a view toward a gradual alignment with International Accounting Standard (IAS), as adopted internationally by other central banks. Furthermore, an internal audit charter has been put in place, mechanisms have been established to improve risk management and risk prevention, and follow-up on internal and external audit recommendations have been strengthened. The assessment identified a number of areas where further steps would help solidify the progress made. The main recommendations relate to: (i) improving the external audit process by adopting a formal rotation policy and further enhancing the transparency of the financial statements by adopting IFRS in full; and (ii) enhancing the effectiveness of the internal audit function by further strengthening the reporting to management of the BCEAO. The status report of the implementation of recommendations, received by the World Bank in March 2007, indicated that some progress was achieved.

108. Bank financial management specialists reviewed the flow of funds arrangement between the Central Bank (BCEAO) and the Treasury (DGTCP), taking into account the findings of an audit of the flow of budgetary funds between the Central Bank and the

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Treasury funded by the multi-donor Budget Support Group. The team concluded that current arrangements are adequate, with fiduciary risks within acceptable risk tolerance levels. However, the team recommended that the information systems of these two institutions be linked, so as to minimize delays and discrepancies in flows reporting, thus eliminating cumbersome reconciliations. The last audit report on the flows of funds, which was produced in 2009, resulted in a clean audit opinion.

PROCUREMENT:

109. The proposed series of operations will rely on the country systems which have been used for the series of PRSCs which have been found to be satisfactory. Despite this, further strengthening of public procurement continues. The focus has progressively shifted from reforming the legal and regulatory framework to focusing on strengthening the procurement capacity and the transparency of the procurement system. In this regard the Government has taken the following steps: (i) adopted an action plan based on the finding of the 2005 Country Procurement Assessment Review (CPAR), (ii) setup a new legal and regulatory framework under the new procurement Code, and (iii) issued procurement regulations and Standards Bidding Documents. A Regulatory agency for public procurement14 has also been established and procurement units have been established in some regions and ministries including the Ministry of Basic Education and Literacy.

110. During 2004-07, the Government nominated a procurement reform committee with public sector and civil society representatives to enhance transparency and scrutiny; adopted a decree regulating concessions and leasing in line with best international practice; developed a computer application for the monitoring of procurement processes; and adopted a regulatory text for the issuance and withdrawal of accreditation of public works. It also adopted a procurement reform action plan based on the 2005 CPAR recommendations. In addition, procurement contracts have been regularly audited by the Inspection Générale des Finances (IGF).

111. In 2008, the government has adopted a new procurement regulation which builds on weaknesses identified during various review missions and audits conducted by the government and donors. The government has also submitted a request to the Bank to be a pilot country for the use of country systems in procurement. It is expected that the evaluation of the actual country system be launched before end of 2009. If endorsed as a country pilot this will be an opportunity to strengthen country systems, in particular control systems.

112 The government has already started implementing its new regulation which provides a sound framework for carrying procurement activities in compliance with international standards. It has set key ministries, such as the Ministry of Basic Education, as ministries of focus for strengthening and closely monitoring procurement processes. It is expected that these arrangements, along with technical assistance activities under ongoing projects in the sector will enhance procurement activities.

113. Progress in harmonization among LDG in the basic education sector allowed joint financing through a common Pooled Fund for seven donors including the Bank, and later resulted in the Bank wanting to withdraw from the pooled funding. Bank’s intention to withdraw is a result of some misunderstandings between the Bank and the other LDG 14 Autorité de Régulation des Marchés publics (ARMP)

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regarding the meaning of a pooled fund. While LDG thought the use of the Pooled Fund mechanism meant applying development policy operation (DPO) and fiduciary rules that apply to a DPO (use of country systems), IDA’s support was provided through a Sector Investment Loan (SIL) which applies the Bank’s procurement fiduciary rules for investment operations. Under these circumstances, the Government did not follow the procurement arrangements in the IDA Financing Agreement, and will withdraw the IDA funds from the Pooled Fund. The misunderstandings among the Government, LDG and the Bank have now been resolved, and technical assistance is being provided under the ongoing Basic Education Project to support further strengthening of the country’s procurement system.

114. Corruption: The Government is also making good progress in fighting corruption. Following the adoption in May 2006 of a national anti-corruption policy, the Government committed to step up efforts to fight corruption with the establishment of an independent audit institution, the High Authority for State Oversight (Autorité Supérieure de Contrôle de l’Etat, ASCE), and the dissemination of a good governance plan. All these efforts have combined to help improve significantly the country’s ranking on the 2008 Transparency International’s Corruption Perception Index to the 80th position (from 105 in 2007, out of 179 countries and 11th in Africa). Burkina Faso remains among the better-ranked African countries.

E. DISBURSEMENT AND AUDITING

115. The BEPSG is a series of three programmatic development policy operations. The first operation of US$ 22.0 million will be available at effectiveness planned for July 2009; followed by a second operation of US$ 45.0 million planned for January 2010; and the third operation of US$ 35.0 million planned for January 2011. Each operation will follow IDA’s disbursement procedures for development policy financing. It will be provided on the basis of satisfactory implementation of previously agreed policy reforms and disbursed after effectiveness upon receipt of a withdrawal application from the government to that effect. Disbursement will not be linked to specific purchases. The proceeds will be deposited by IDA into a Government account at the Central Bank which forms part of the country’s foreign exchange reserves; as a due diligence measure, IDA will obtain confirmation from the Government that the amount of the operation has been accounted for in the country’s budget management system (within 30 days of disbursement). If, after being deposited in this account, the proceeds of the operation are used for excluded purposes as defined in the Financing Agreement, IDA will require the Recipient to refund directly to IDA , an amount equal to the amount of said payment, promptly upon notice from IDA. Amounts refunded to the Bank upon such request shall be cancelled. No dedicated account is required as no concerns with the safeguards environment have been identified.

116. Fiduciary obligations of the program will be carried by regular units of ministries and each Budget and financial management unit will be responsible for overall activities implementation and management of funds. At the decentralized level, more effective expenditure control mechanisms have been put into place to mitigate any possible shortcomings. In addition to the prior reviews conducted by local financial controllers, annual post reviews are also conducted by the auditing department of the Treasury since 2007. The independent Supreme Audit Institution is being made more independent and its capacity is being strengthened. A system for delegated audit of small communes’ accounts by regional

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treasurers, on behalf of the Court of Accounts has also been established. These measures it is hoped would secure essential conditions for the Court’s independence and effectiveness.

F. RISKS AND RISK MITIGATION

117. Several risks could jeopardize the expected outcomes and benefits of this operation; particularly in regard to the current international financial crisis, resistance to reforms in the education sector and decentralization. The macroeconomic outlook is projected to deteriorate because of the financial crisis and GDP growth rates have been revised downwards from 6.2% to 3.5%. This might make it difficult for the Government to allocate the required resources to the sector. The impact of these measures will be minimized through measures to improve efficiency in use of resources at the macro level and within the sector. Within the education sector costs would be reduced through increased involvement of communities in school construction which accounts for a substantial part of the sector’s development budget. This approach has yielded significant reduction in costs in Burkina. Also, the unit costs of construction might fall further since the prices of inputs purchased internationally such as construction materials may grow at a lower rate, since other countries are also affected by the global crisis. Weaker economic growth in Burkina Faso is likely to have a dampening effect on prices on locally produces goods and salaries (eg, salaries will likely not grow as fast as in a situation with higher growth). This would help to minimize the negative effects of weaker growth on the education sector since salaries account for about 65% of recurrent expenditures. The policy of encouraging public and private partnerships would also help reduce the costs burden on the public sector.

118. There might be political and social risks associated with the reforms related to multigrade classes, abolition of biennial intake, and enrollment and equity. To mitigate these risks, the government plans to undertake a nationwide campaign to build consensus around these policies before they are introduced. This communication campaign is planned to start in July 2009 to prepare for the next school year in September.

119. Implementation of the decentralization strategy poses significant challenges including in the education sector. Officials working at the center may resist the transfer of responsibilities to local Governments, while local Governments may not have sufficient resources and capacity to carry out their new responsibilities. To address this issue, the government has adopted a participatory and gradual decentralization approach that includes establishing a framework for increased collaboration between the de-concentrated units and local government authorities as well as increased involvement of communities in the management of schools. The proposal is to include Communes more effectively in education management to generate greater commitment to decentralization and success of the approach. This will be supported by increased attention on capacity building at the commune level and below. It is acknowledged that the capacity building program will take some time to complete for the communes. The government therefore plans to adopt a school based approach to bring significant benefits to schools and communities in the short term while capacity for full devolution is being put in place. This would help build increased commitment to the policy from all stakeholders. To support the school based management approach, the government will put in place the appropriate mechanisms, including defining the roles and responsibilities of the various actors in the decentralization chain, introducing simple administrative and PFM procedures and tools that could be used by communities to manage funds under their control.

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ANNEX 1: LETTER OF DEVELOPMENT POLICY

40

41

42

43

44

45

46

47

ANNEX 2: OPERATION POLICY MATRIX AND RESULT FRAMEWORK.

Key Reforms Outcomes and Monitorable Indicators Prior Action for the first operation (July 09)

Proposed Actions/Triggers to be undertaken by December 2009

Proposed Actions/Triggers to be undertaken by December 2010

Overall Policy MeasuresRevision of the Recipient’s 2009 annual work program for the Basic Education sub-sector to, inter alia, update policy and institution strengthening actions to be carried out during the last semester of 2009.

The Recipient has rolled out unspent investment funds for education infrastructure activities and acquisition of textbooks in addition to the 2010 budget.

The Recipient has adopted its 2011 annual work program for the Basic Education sector which includes policy and institutional strengthening actions to be carried out during 2011 as stated in the proposed actions for 2011.

The Recipient has implemented the Ministerial Decision to allow unspent investment appropriations for education infrastructure projects to be automatically rolled-over to the next year’s budget as of 2010.

A revised Action plan consistent with program requirements on policy reform and institutional strengthening.

Increasing Access and equityIdentification by the Recipient’s ministry responsible for Basic Education of territory all of the following schools within the Recipient’s territory, with a view to ensuring in a next step that they will comply with the applicable laws and regulations of the Recipient relating to class size and intake: (i) schools with multi-grade-classes,(ii) schools practicing “biennial school intake”, and (iii) schools with multi-grade classes which do not comply with the multi-

For school year 2009/10, The Recipient has: (i) put in place the support systems to allow all schools to practice only annual school intake and provide all grades in any given school; (ii) A communication plan for informing the public about the expansion of multigrade; (iii) Updated the guide for the management of multigrade classes and train teachers trainers.

The Recipient has: (i) developed for each 45 province an action plan to reduce the biennale school intake and to introduce multigrade classes; (ii) Distributed the guide for teaching multigrade classes to all teachers; (iii) Developed information and training programs for supervisors and teachers in the management of multigrade classes.

*The primary level gross enrollment rate will increase from 80.2% in 2008/09 to 110% in 2010/2011;*The percentage of incomplete primary schools (with less that 6 classes) is reduced by 50% in 2011/12*All multigrade classes have been provided with a minimum pedagogical kit*The schedule for regularizing all 637 schools with multigrade classes with large enrollments is ready*Reduction in the average student teacher ratio from 54.8:1 in 2006 to 51.1:1 in 2011 then to 45.6

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grade-classes enrollment criteria. in 2020. *Reduction in the average student/class which will fall from 44.1 in 2006 to 41.9 in 2011 then to 38 in 2020

Continued implementation of the Recipient’s Basic Education decentralization strategy through the identification and communication by the Recipient’s Ministry responsible for Basic Education to the Recipient’s Ministry responsible for decentralization of a list of 14 school complexes, 12 three classroom-blocks, 29 latrines blocks, whose construction is planned as part of the 2009 annual budget, and with respect to which construction and management responsibilities have been transferred to the urban Commune in which the relevant school complex is located.

The Recipient has: (i) adopted a multiyear document for the period 2009-2011 for implementing school construction, and the transfer of responsibilities and funds to communes; (ii) Put in place a system for Monitoring, Evaluation, and technical support of school construction conducted by technical services of the Ministry responsible for urbanism and habitat.

The Recipient has: (i) provided the first report on Monitoring, Evaluation, and technical support of school construction conducted by technical services of the Ministry Responsible for Infrastructure; (ii) Updated the multiyear document for implementation of construction by the MOD, and the transfer of responsibilities to communes and other actors at the local level

Issuance by the Recipient’s ministry responsible for Secondary Education of guidelines (note de cadrage) dated June 15, 2009, for the development of a national strategy for reducing the deficit of teachers in Secondary Education, and establishment of an ad hoc committee comprised of representatives of all interested ministries of the Recipient, to be responsible for the preparation of a proposed strategy consistent with said guidelines, to be submitted for approval by the Recipient’s Cabinet not later than August 15, 2009.

The Recipient has launched its national strategy through: (i) Preparation of modules for a certificate course on the pedagogic skills for the UFR options and for distance learning (SVT and exact sciences for students in the second and third years of universities); (ii) management of executed teaching hours and vacataires (heures de vacation)

The Recipient has expanded the training strategy for options in UFR and other areas (subjects).

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Improving Internal efficiencyIssuance by the Recipient’s ministries responsible for Basic Education and Secondary Education respectively of an inter-ministerial regulation (arrêté), limiting the repetition by students of grades between two sub-cycles, prohibiting repetition by students of grades within each sub-cycle in Primary Education, and limiting the repetition by students of grades in the first cycle of Secondary Education.

The Recipient has put in place a system for: (i) Strengthening class visits and support to Teachers and has launched its implementation; and (ii) monitoring the implementation of the decision limiting the repetition between sub-cycles and prohibiting repetition within sub cycles in Primary Education, and the decision limiting the repetition in Lower Secondary Education.

The Recipient has provided: (i) the report on class visits and support to teachers in primary and lower secondary; (ii) the report on the monitoring of repetition rates in primary and lower secondary.

* Repetition rates go from 12% en 2007 to 8% en 2015 in Primary;* Repetition rate goes down from 25% in 2006 to 10% in 2015 in lower secondary.

Introduction of a system to monitor time spent by teachers in providing instruction to students in Primary Education and the first cycle of Secondary Education, and preparation of an action plan to implement the recommendations of the Recipient’s studies on improving students’ learning time entitled, respectively, “Etude Relative au Volume Horaire Effectif de l’Enseignement Primaire au Burkina Faso”, dated January 7, 2008, and “l’Effectivité de l’Année Scolaire 2006-2007 – Suivi du Calendrier Scolaire”, dated December 2008.

The Recipient has launched its system for monitoring time spent by teachers with the publication of the first trimestrial report on implementation of activities.

The Recipient has provided the report on the study for assessing learning time in primary and lower secondary.

The number of instructional hours rises from 540 hours/year in 2007 to 800 hours/year in 2011.

Adoption by the Recipient’s ministry responsible for Basic Education and the

The Recipient has started Implementation of student learning

The Recipient has implemented student learning assessment in 25

The average scores on tests of achievement have improved

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Recipient’s ministry responsible for Secondary Education, respectively, of an action plan for the implementation of the Recipient’s strategy for the assessment of students’ learning in Primary Education in the forty-five Provinces, and in institutions of the first cycle of Secondary Education in 23 Provinces.

assessment in 45 provinces for primary education and in 23 provinces in lower secondary which will be extended progressively to the entire country; and it has started aligning the two systems of students learning assessment.

provinces to be extended progressively to the entire country.

Indicators:French: - Fourth Grade: from 50 points over 100 to 60 points en 2011 and 70 points in 2015;- Six Grade: from 53,7 points over 100 in 2006 à 60 en 2011Math: - Fourth Grade: from 38 points over 100 to 50 points in 2011 an 60 points in 2015- Six Grade: from 49,8 points over 100 to 55 points in 2011 and 60 points in 2015Science: - Fourth Grade: from 46 points over 100 to 55 points in 2011 and 65 points in 2015Retention in primary education has improved.* TAP will increase from 40,7 en 2007/2008 to 58% in 2011 and 75,1% in 2015 and to 100% in 2020 ;

Diversification of Technical Education and Vocational Training Issuance by the Recipient’s ministries responsible for Secondary Education and for professional training respectively, of an inter-ministerial decision, for the introduction of apprenticeship training and issuance by the Recipient’s ministries responsible for Basic Education, Secondary Education, and youth and employment respectively, for the aggregation of various education resources in institutions offering Secondary, Technical and Professional Education (ESTP - Enseignement Secondaire, Techniques et Professionnel).

The Recipient has: (i) adopted its main document for TVET; (ii) adopted its priority action planto be incorporated into the 2010 global action plan; and (iii) finalized its framework document on self-management of TVET institutions and training facilities.

The Recipient has: (i) conducted a pilot study in at least four institutions of ESTP on dual apprenticeship; (ii) Adopted guidelines for regulating and integrating vocational and professional training given to primary school graduates.

Short training courses and apprenticeship training are in place Indicators:*Increase by 30,000 young people the annual flow in 2011 and 50 000 young people in 2015.

Common management tools are available that allow for planning, implementation and monitoring and evaluation of TVET

The offer of short training courses for self-employment has increased ESTP institutions.

Intake to the post-primary are streamlined between the various sub-sectors (general education and TVET) * Number of schools with autonomy;* The number of institutions using the mechanism for sharing;* % of public schools practicing TVET as a training

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mechanismHIV/AIDS, Health, NutritionApproval by the Recipient’s ministry responsible for health and the Recipient’s ministry responsible for Basic Education of a draft strategy on health and nutrition in schools (projet d’orientations stratégiques du secteur de l’éducation pour la lutte contre les IST-VIH, la malnutrition et les autres problèmes de santé (2009-2011)), approved by the Recipient’s ministry responsible for health and the Recipient’s ministry responsible for Basic Education, with a view to its submission to the Recipient’s Cabinet for adoption.

The Recipient has Adopted a strategy on health and nutrition in schools (orientations stratégiques du secteur de l’éducation pour la lutte contre les IST-VIH, la malnutrition et les autres problèmes de santé (2009-2011)

The Recipient has integrated into the curriculum health and nutrition concepts.

Nutrition improves access in areas with high cereal deficit The curricula include preschool, primary and secondary health issues

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ANNEX 3: GOVERNMENT’S PROGRAM POLICY MATRIX

Policy Reform Measures Prior Actions before July, 2009Proposed Prior Action before December, 2009

Proposed Prior Actions before December 2010

Expected Results and Monitoring Indicators

Sector Wide MeasuresPolicy framework Satisfactory macroeconomic

frameworkSatisfactory macroeconomic framework

Satisfactory macroeconomic framework

A stable macroeconomic environment conducive to growth and poverty reduction

Education Sector Policy Submission of a Letter of Sector Policy to the Bank

    An agreed medium-term program consistent with the Poverty Reduction Strategy.

Financing of the Education Sector

Presentation of the 2009 annual work program for the Basic Education sector to update policy and institution strengthening actions to be carried out during the last semester of 2009.

Presentation of the 2010 AWP of the basic education sector which includes policy and institution strengthening actions to be carried out in 2010.

A Ministerial Decision to allow unspent investment appropriations for education infrastructure programs to be automatically rolled-over to the next year’s budget as of 2010 will be signed.

Presentation of the 2011 AWP of the basic education sector which includes policy and institution strengthening actions to be carried out in 2010.

Implementation of the Ministerial Decision to allow unspent investment appropriations for education infrastructure programs to be automatically rolled-over to the next year’s budget will continue in 2011.

The resources necessary for the program will be available;

Budgetary allocations will be consistent with program requirements

Increasing Access and QualityPre-School Education        

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Community Approach to Pre-School Education

Revision of the architectural plan for community pre-school centers

Revision of the manual of procedures for the establishment of pre-school centers

Transfer responsibilities for the construction of pre-school infrastructures to communes

Adoption of an arrête ministerial updating the composition, roles and regulations of the COGES

Preparation of a detailed communication plan to mobilize community support for local pre-school centers

Preparation and implementation of an action plan to strengthen the capacities of communities to manage community pre-school centers

R/: The number of pre-school structures increases

I/: The rate of enrollment at the preschool level rises from 2.8% in 2006 to 5.8% in 2011 and to 8.3% in 2015

The procedures for the establishment of CEEPs are simplified

Increasing the supply of public pre-school education

Revision of the architectural design for the construction of pre-school education facilities.

Design and start implementation of a system aimed at monitoring preschool development at each commune level.

 Monitor implementation of the system aimed at monitoring preschool development at each commune level and publishing of report comparing communes.

Private sector provision of pre-school education

  Revision of the instructions and rules regarding the responsibilities of private sector centres d’éveil and pre-school education centers.

Development of a data system on monitoring private sector provision of preschool education.

 

Publish data for monitoring preschool provision including private provision.

Primary Education        Prohibition of alternate school year intake

Preparation of a document to convince the key actors about the need to stop alternate school year intake

Identification of schools with multigrade classes and that practice biennale school intake

Adoption of a regulation prohibiting biennale school intake as from school year

Inclusion in the circular regarding school intake in 2009/2010 that alternate year school intake is no longer permitted

For school year 2009/10, put in place the support systems to allow all new schools to practice only annual school intake

Each province will have an action plan to reduce the biennale school intake and to introduce multigrade classes where appropriate

The primary level gross enrollment rate will increase Indicators: *The Gross primary school enrollment rate increases from 80.2% in 2008/09 to 110% in 2010/2011;

*The percentage of incomplete primary schools (with less that 6 classes) is reduced by 50% in 2011/12

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2009/2010* All multigrade classes have been provided with a minimum pedagogical kit

*The schedule for regularizing all 637 schools with multigrade classes with large enrollments is ready

The participation of the private sector is increased.

Introduction of multigrade classes

A document aimed at convincing the key actors about the need for the introduction of multigrade classes is ready

A communication plan for informing the public about the expansion of multigrade is agreed and included in the 2010 action plan for MEBA.

Update and reproduction of the guide for the management of multigrade classes for all teachers

Distribution of the guide for teaching multigrade classes to all teachers

Information and training of supervisors and teachers in the management of multigrade classes

Introduce a schedule for normalizing schools with multigrade classes with large enrollments

The list of schools with multigrade classes with large enrollments to be normalized is available

The list of multigrade classes with large enrollments to be regularized in 2010 is available and implementation is included in the action plan for MEBA

The list of multigrade classes with large enrollments to be regularized in 2011 is available and implementation is included in the action plan for MEBA

Strategy for increasing the pace of school construction

Make available and communicate the list of school construction sites to communities and communes

(i) Prepared a multiyear document for implementing construction by the MOD, and the transfer of responsibilities to communes in collaboration with other actors; (ii) Put in place a system for Monitoring, Evaluation, and technical support of school construction conducted by technical services of the Ministry Responsible for Infrastructure.

(i) provided the first report on Monitoring, Evaluation, and technical support of school construction conducted by technical services of the Ministry Responsible for Infrastructure; (ii) Updated the multiyear document for implementation of construction by the MOD, and the transfer of responsibilities to communes and other actors at the local level

Private Sector Participation   Review the education norms, including those regarding school construction with a view to stimulating the participation of the private sector in expanding the education system

The revised construction norms are distributed to private providers of education

Post Primary        Introduction of a new type of teachers (voluntary, SND) to address teacher deficit

Establish the level of deficit in the number of teachers by subject.

Plan the entry into service of this specific category of teachers

Provide specific training by region

Organize new recruitment on the basis of estimated needs

Provide teacher supervision for the

The gross enrollment rate in post-primary education rises from 21.8% in 2007 to 35 % in 2011 and 40% in 2015

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Discuss and adopt the methods of recruitment of the new type of personnel in the Council of Ministers.

Design and agree on a national strategy for reducing the deficit of teachers in secondary education.

and organize class visits

Preparation of modules for a certificate course on the pedagogic skills for the UFR options and for distance education: SVT and exact sciences for students in the first two classes of high school

new category of teachers

Expand the training strategy for options in UFR and other specialties

Indicators: reduction in the average student teacher ratio from 54.8:1 in 2006 to 51.1:1 in 2011 then to 45.6 in 2020. reduction in the average student/class which will fall from 44.1 in 2006 to 41.9 in 2011 then to 38 in 2020

Mechanisms for more rational utilization of existing teachers and reduction in the cost of part-time teachers

Design of a tool to collect information on the actual instruction time spent per high school teacher

Collect and analyze data on the use of time by teachers collected by school directors

Produce a synthesis report on the analysis, findings and recommendations of the study

Include the conclusions of the study (OCECOS) on teaching time in the action plan

Adopt regulations on the use and allocation of teachers

Deployment of computers for management to schools

The conditions for improving the quality of teaching are put in place

Establishing a mechanism for reducing geographic and gender disparities

Sign a ministerial arrêté, which identifies localities (villages with high population density) that can accommodate new secondary schools; Provide a document which identifies potential school sites in collaboration with the beneficiaries and include these sites in official documents

Monitoring, Evaluation, and technical support of school construction conducted by technical services of the Ministry Responsible for Infrastructure

Carry-out a study to identify constraints to girls participation in post primary education other than availability of schools

Improving internal efficiency of Post-Primary education

Adoption of an ministerial arrêté limiting repetition rate in Junior High; A strategy on the causes and consequences of repetition and

Strengthen and sustain the textbook lease system in particular for disadvantaged communities;

Strengthen mechanisms for class visits and support to Teachers at

Evaluation of the implementation of measures limiting repetition and drop-out in secondary schools

Strengthen class visits mechanisms and support to Teachers at the local

Repetition in Post-Primary are reduced;

Indicators:* Repetition rate goes down from 25% in 2006 to 10% in

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drop-out is integrated into the communication plan

the local level level 2015;

* The textbook lease system is functional in all the priority provinces

Improving qualityPreschool        Curriculum Improvement     Update preschool curriculum The new curriculum is

available

The quality of the preschool education is improved

Management Plan of early childhood personnel

 Indentify constraints to management of pre-school education

Preparation and adoption of a management and training plan for staff in early childhood education

 Implementation of the management plan?

Primary        Improving the internal efficiency of the system

A Ministerial Decision on limiting repetition between sub-cycles and their prohibition within sub-cycles are available and integrated into the action plan of the MEBA 2010.

Effective implementation of a communication / outreach plan to various stakeholders on the extent of capping.

Assessment of the implementation of the legislation introducing automatic promotion within sub-cycles to incorporate the limitation on repetitions to 10% in between cycles for the start of 2010/11

Repetition at the elementary level is reduced;

Indicators:* Repetition rates go from 12% en 2007 to 8% en 2015.

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Improving the learning time of the students

The recommendations of the study on the learning time are translated into an agreed action plan.

A section on improving the learning time of students is integrated into the communication plan and is implemented in conjunction with decentralized structures

A notice indicating the prescribed number of hours and the obligation of monitoring absences and tardiness of teachers and students and the assessment of its implementation by the heads of departments and municipalities.

 A report on a study for assessing learning time in primary and lower secondary is available.

The prescribed official number of school time is implemented (961 hours)

Indicators:*The actual number of hours applied in 2007 increased from 574 hours to 800 hours in 2011 ;

*The success rate in primary education certificate from 58.46% in 2008 increased to 75% in 2011

Improving the quality of learning

Planning of the student learning assessment for 15 provinces is in place

A notice establishing harmonized testing is widely disseminated.

Implementation of student learning assessment in 15 provinces will be extended progressively to the entire country.

The harmonized testing is held in each school during the school year 2009/10 and the results published.

Implementation of student learning assessment in 25provinces will be extended progressively to the entire country.

The average scores on tests of achievement have improved Indicators:French: - Fourth Grade: from 50 points over 100 to 60 points en 2011 and 70 points in 2015;- Six Grade: from 53,7 points over 100 in 2006 à 60 en 2011Math: - Fourth Grade: from 38 points over 100 to 50

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points in 2011 an 60 points in 2015- Six Grade: from 49,8 points over 100 to 55 points in 2011 and 60 points in 2015Science: - Fourth Grade: from 46 points over 100 to 55 points in 2011 and 65 points in 2015Retention in primary education has improved.* TAP will increase from 40,7 en 2007/2008 to 58% in 2011 and 75,1% in 2015 and to 100% in 2020 ;

Adult LiteracyShared classrooms Developing an action plan for

the pilot schools

Education awareness campaign for communities

Notice to supervisors for effective monitoring of CPAF

Training of trainers and educational supervisors

Literacy rate has improved

*The current stock of illiterate adults from 15 to 49 years will be reduced to 50%;

* Number (150) of shared classes and the number (30) of CEBNF functional classes including 450 in 2011

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Implementation of multifunctional centers

Developing an action plan on school specification

Identification of construction sites

Construction and furnishing of centers

A center for each province is built and equipped

18,000 guides for facilitators are produced and distributed

A center for each Commune is built and equipped by 2011

Assess the statistical data to be collected for non-formal education

Setting up the technical team responsible for the assessment of the tool.

Integration of non formal items into the Statistical Yearbook in 2009

Monitoring and evaluation of the adult education program through data publication.

Indicators of non-formal are consolidated in the statistical yearbook

Diversification of Technical Education and Vocational Training

Policy Reform Measures

Prior Actions Before July, 2009

Proposed Prior Action before December, 2009

Proposed Prior Actions before December 2010

Expected Results and Monitoring Indicators

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Adoption of the TVET management tool

Adoption of a framework for dialogue among all stakeholders (government, donors, civil society, NGOs

Implementing a communication plan to enhance the value chains of short-term vocational training and support provided for self-employment

Validation of TVET master plan EFTP (December 2009);

Adoption of an action plan for the PN / TVET

Revision and adoption of a national skills certification system

Elaboration and adoption of an integrated school curriculum TVET (MESSRS, MEBA, JE

Short training courses and apprenticeship training are in place Indicators:*Increase by 30,000 young people the annual flow in 2011 and 50 000 young people in 2015.

Common management tools are available that allow for planning, implementation and monitoring and evaluation of TVET

Indicators:*

The offer of short training courses for self-employment has increased ESTP institutions.

Indicators:*

Intake to the post-primary are streamlined between the various sub-sectors (general education and TVET)

Indicateurs:*

Introduction of dual learning in institutions of ESTP

Adoption of a main document detailing the implementation mechanisms of learning in institutions of ESTP

Adoption of statutory instrument regulating the introduction of learning in ESTP

Conducting a pilot learning in at least four institutions of ESTP

Establishment of modalities to guide Primary School graduates in the training structures of MJE

Inventory of the capacity of the Vocational Training of MJE

Development of a framework document to guide primary school graduates in the vocational training scheme of MJE

Adoption of a statutory instrument regulating the vocational guidance given to primary school graduates in the training scheme of MJE

Establishing a mechanism for sharing

  Development of a framework document on the pooling of

Adoption of regulations (MESSRS, JE, MEBA) on self-managed

The pooling of resources between institutions and

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human and material resources between training institutions and structures of TVET

material and human resources between institutions and structures of training of TVET (MESSRS, JE, MEBA, private sector)

Development of a framework document on self-management of TVET institutions and training facilities

institutions and training facilities TVET

Adoption of a statutory instrument on the sharing of resources between institutions and TVET training facilities (MESSRS, MJE, MEBA, private sector)

TVET training structures make sustainable the increase in the supply of vocational training and apprenticeshipIndicators:* Number of schools with autonomy;* The number of institutions using the mechanism for sharing;* % of public schools practicing TVET as a training mechanism

System management

Strengthening management capacity

develop a system for data collection and analysis

  Production and dissemination of data on early childhood

The piloting of the sub-system has improved

The statistical directory is available

Allocation of funds to Communes For preschool construction

    Operationalize the transfer of financial resources to Communes in support of transferred competencies

The financial resources are transferred

The facilities are built

Health, Nutrition, HIV/AIDS

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Mechanism for promoting school health, hygiene and sanitation, nutrition and HIV in Schools

Finalization of the draft policy document on health sector with MS school health guidelines

Adoption of Health, Nutrition and HIV/AIDS sectoral policy document with regard to health, nutrition and HIV

Integration of the document in the curriculum and the action plan

Teacher training

Training of peer/par educators

Hygiene and sanitation in schools is improved

Students knowledge has improved

Nutrition improves access in areas with high cereal deficit The curricula include preschool, primary and secondary health issuesNumber of schools with resources for school canteen 1,500 peer educators, pupils and students trained in health; 1000 awareness kit existNumber of schools with health systems; one medical visit per year per student

Management Mechanisms for the endogenous school feeding program in schools and educational institutions

  Development of roadmap targeting areas of poverty

Planning the management of school canteens

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Number of hours of absence on average in the year

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ANNEX 4: KEY INDICATORS

Key Indicators 2006 2007 200815 2009 2010 2011 2015 Data Collection and reporting

Années scolaires 2006-07

2007 - 08

2008 - 09 2009 - 10

2010-11

2011 - 12

2015 - 16

Frequency Instrument Responsible

Access and EquityGross Intake Rate at 1st grade of primary 73% 85,7% 80,2% 83% 88% 110%

107%Annual Statistic report DEP

Gross Enrollment rate in Primary 60.7% 71.2% 85% 100%Gross Enrollment rate in lower secondary 19% 25.2%

(26.4%)28% 31% 34% 58% Annual Statistic report DEP

Girls Gross Enrollment rate in lower secondary

24%16 24% (28%)

27% 30% 34% 55% Annual Statistic report DEP

Number of Students Enrolled in Secondary VET

6787 7 805 8 976 10 322

11 871 20 762 Annual Statistic report DEP

Gross Primary completion rate 31% 40,7% 51,2% 58% 65% 55% 75% Annual Statistic report DEPNumber of Students Enrolled in professional short training programs

4,000 10,000 14,500 18,000 20,000 30,000 Annual Report from MJE

DEP

Number of classrooms constructed (‘000) 22 31.9 34.8 37 39 42 55 Annual Statistic report DEPGirls’ share of primary school enrollments 42% 45,6% 46,7% 48.1% 52,2% 45% 48% Annual Statistic report DEPNumber of multigrades teaching classrooms 11,790 12.000 11,000 10,000 10,000 13,000 Annual Statistic report DEPQualityAnnual Number of instructional hours for students

570 570 570 650 750 800 920 Annual Report DEP

Repetition Rate in primary education 12% 13% 11,1% 9,8% 9% 8% Annual Statistic report DEPPupil/teacher ratio 55 55 53 52 51 51 48 Annual Statistic report DEPNumber of TVET curriculum revised and adapted to the economy

23 7 8 12 16 70 Annual Report DEP

ManagementShare of Primary education as a % of GDP in national budget

3.1 2.8 3.0 3.1 3.2 3.4 Annual Statistic report DEP

Number of communes receiving funds for:

(i) Investments (ii) Schools operation

1349

Annual Statistic report DEP

15 Following the 2006 National census, indicators were updated to reflect the sharp increase in population growth.16 Le TBS filles concerne uniquement le post primaire. Le 2nd cycle n’est pas intégré.

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ANNEX 5: FUND RELATIONS NOTE

Burkina Faso—Assessment Note for the World Bank

This note provides an assessment of recent macroeconomic developments in Burkina Faso and progress under the Fund-supported three-year Poverty Reduction and Growth Facility program (PRGF). This assessment is based on the findings of the mission for the fourth review that took place in Ouagadougou March 18-April 1, 2009.

Recent Economic Developments and Program Performance

In 2008 and early 2009, Burkina Faso’s economy weathered the triple external shocks (oil, food, and the global financial crisis) fairly well. Real GDP growth reached an estimated 5 percent in 2008, supported by a rebound in agricultural production and the opening of three new gold mines. With the decline in commodity prices, inflation fell to 6.8 percent year-on-year in March 2009 after peaking at 15.1 percent in June last year. Domestic food prices, however, have declined less than international prices. The trade deficit widened to 11.0 percent of GDP, from 8.8 percent in 2007, because of higher oil imports and lower cotton exports.

Despite difficult economic conditions, program performance was broadly in line with objectives. All quantitative performance criteria were met, including the targets for the fiscal deficit, revenues, and social expenditure. However, foreign-financed capital expenditure was some 2¾ percent of GDP lower than programmed, mainly due to poor project planning and execution and higher costs that required renegotiation of loans. Despite progress on preparation for tax policy reform, some delays have occurred because of late delivery of technical assistance, inadequate domestic capacity, and the challenging external context.

Outlook and Policy Challenges

The global financial crisis influences the near-term outlook and is constraining growth. Monthly trade indicators and trade-related revenues are slackening. While lower prices dampen the outlook for cotton exports, the impact on the balance of payments will be cushioned by agricultural initiatives, lower oil prices, and higher gold prices. Real GDP growth is projected to decline to 3½ percent in 2009. Changes in commodity prices are expected to improve the terms of trade and slightly narrow the current account deficit.

There are risks to the outlook. Further decline in world cotton prices could threaten the financial stability of the ginning companies, which would have negative side-effects for the entire economy. A worsening global crisis could also further push down remittances, foreign direct investment, and other financial flows, lowering investment and consumption. An unexpectedly fast global recovery would support a turnaround in Burkina Faso.

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In this difficult environment, the key challenge is sustain the reform momentum, with a particular focus on fiscal reforms to raise revenues, and growth-enhancing reforms to make the cotton sector more efficient and the financial sector stronger.

While there is some scope for countercyclical fiscal policy, debt sustainability concerns call for caution, and grant financing will be especially important in the event that downside risks to revenue materialize. Medium-term fiscal consolidation remains necessary to reduce the high risk of debt distress, and while the fiscal deficit on a commitment basis is projected to widen to 5.1 percent of GDP in 2009, it should decline to 4.1 percent of GDP by 2011. Preparatory work for tax policy reform is underway with a view to revise the business tax, streamline tax exemptions, and strengthen VAT.

In the cotton sector, though financing for the next campaign has been secured on conditions similar to last year’s, the capital base of SOFITEX, the largest ginning company, is eroding, and producer association internal arrears have risen. Reforming the sector is critical if the country’s medium-term growth and development objectives are to be achieved. The authorities have stressed their commitment to increasing the transparency and efficiency of SOFITEX. Staff encouraged the authorities to work closely with the World Bank and take the necessary steps to increase productivity.

The financial system has so far weathered the global financial storm, but could be vulnerable to a drying-up of liquidity, an increase in nonperforming loans as the economy slows, credit concentration, or withdrawal of foreign banks if disruptions in international financial markets should intensify. Better surveillance, supervision, and risk management at both national and regional levels are thus essential. Staff encouraged the authorities to ensure adequate follow up to the financial sector action plan that was submitted to Cabinet in March 2009.

Overall, we believe that the PRGF-supported program will provide a sound macroeconomic framework to guide the authorities’ reform efforts. Staff will continue to maintain close coordination with donors.

Relations with the IMF

The Executive Board discussion of the fourth review under the PRGF arrangement is scheduled on June 22, and the mission for the 2009 Article IV consultation and fifth review under the PRGF arrangement is expected to take place in September.

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2011Est. Prog. Proj. Prog. Proj. Prog. Proj. Proj.

GDP and pricesGDP at constant prices 3.6 4.5 5.0 4.9 3.5 6.0 4.1 5.3GDP deflator 3.6 5.1 5.9 3.4 3.0 2.1 2.1 2.0Consumer prices (annual average) -0.2 9.7 10.7 5.0 4.8 2.1 2.3 2.0Consumer prices (end of period) 2.3 5.5 11.6 3.5 3.3 2.0 2.0 2.0

Money and creditNet domestic assets (banking system) 2 -5.5 9.9 16.9 12.1 8.2 8.3 4.4 5.4Credit to the government 2 -9.6 1.8 4.2 4.5 -0.9 0.6 0.6 0.0Credit to the economy 2 0.6 8.1 14.4 7.6 9.1 7.8 3.8 5.4Broad money (M2) 22.9 9.8 12.0 8.5 6.7 8.2 6.3 7.4Velocity (GDP/M2) 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0

External sectorExports (f.o.b.; valued in CFA francs) -2.9 6.6 -2.8 21.0 13.1 10.1 44.4 6.3Imports (f.o.b.; valued in CFA francs) 4.1 25.0 17.1 8.2 3.1 3.5 12.6 3.2Terms of trade -1.4 -3.1 -2.8 1.0 12.4 -3.6 -2.6 -1.3Real effective exchange rate (– = depreciation) -0.6 7.0 6.6 ... ... ... ... ...World cotton price (US$ cents per pound) 63.3 75.0 71.4 70.0 55.0 69.0 59.0 61.0Average petroleum spot price (US$ per barrel) 71.1 99.8 97.0 68.0 52.0 75.0 62.5 67.5

Central government financesCurrent revenue 13.6 13.5 13.4 13.6 13.2 14.2 13.8 14.4

Of which : Tax revenue 12.5 12.6 12.3 12.7 12.1 13.2 12.7 13.3Total expenditure 25.8 24.9 22.0 24.5 24.6 24.4 23.8 23.6

Of which : Current expenditure 13.9 13.1 12.6 12.4 12.6 12.0 11.8 11.5Overall fiscal balance, excl. grants (commitments) -12.2 -11.4 -8.5 -10.8 -11.4 -10.2 -9.9 -9.2Overall fiscal balance, incl. grants (commitments) -5.7 -5.3 -4.5 -4.8 -5.1 -4.4 -4.6 -4.1Overall fiscal balance, incl. grants (cash basis) -5.2 -5.5 -4.0 -4.9 -5.3 -4.4 -4.7 -4.3Domestic financing 2.1 1.4 1.1 0.9 1.5 0.1 1.0 0.8

Savings and investmentCurrent account balance (including current official transfers) -8.3 -11.9 -11.0 -11.1 -10.0 -10.7 -10.7 -10.3Current account balance (excluding current official transfers) -12.6 -16.0 -14.7 -14.9 -14.0 -13.4 -13.2 -12.7Gross investment 19.5 19.9 18.1 19.5 18.2 20.0 19.5 20.4

Government 9.0 8.0 6.4 8.5 8.6 8.7 8.5 9.8Private 10.5 11.9 11.7 11.1 9.5 11.3 11.0 10.6

Gross domestic savings 5.3 2.7 2.1 3.5 2.9 5.4 5.2 6.8Government 0.8 1.5 2.4 1.7 1.3 2.3 2.3 2.9Private 4.5 1.1 -0.3 1.7 1.7 3.2 3.0 3.8

Gross national savings 11.2 7.9 7.1 8.4 8.1 9.2 8.8 10.1Government 4.8 5.3 5.7 5.2 5.0 4.7 4.5 5.0Private 6.5 2.6 1.4 3.2 3.1 4.6 4.3 5.1

External sector and debt indicatorsExports of goods and services 10.6 10.2 9.3 11.3 9.8 11.7 12.8 12.7Imports of goods and services 24.8 27.4 25.4 27.3 25.0 26.2 27.1 26.3External debt 19.8 21.4 20.1 24.4 22.7 26.8 24.0 24.7NPV of external debt 11.6 12.6 11.4 14.8 14.1 16.2 15.5 16.5NPV of external debt (percent of exports) 110.0 123.2 122.6 131.3 144.7 138.6 121.0 130.0NPV of external debt (percent of revenues) 85.5 93.2 85.1 108.5 106.9 114.4 112.3 114.5

Memorandum item :Nominal GDP (CFAF billions) 3,239 3,549 3,603 3,851 3,844 4,166 4,084 4,388

Sources: Burkinabè authorities, and IMF staff estimates.1 IMF Country Report 09/38.2 Percent of beginning-of-period broad money.

(Annual percentage change, unless otherwise indicated)

(Percent of GDP, unless otherwise indicated)

Table 1. Burkina Faso: Selected Economic and Financial Indicators, 2007─112007 2008 2009 2010

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ANNEX 6: COUNTRY AT A GLANCE

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