Report on economic and social conditions in west Africa in 2005 and prospects for 2006 : part I : policies to transform th e informal sector into the formal sector

Abstract

In the last five year West Africa countries have continued to work toward promoting economic growth but their actions have been irregular and weak viewed against the challenges posed by poverty reduction. Structural rigidities, the cause of underperformance in these countries, persist in the sub regional the key supply –side constraint in the low productivity the rural sector which employs the majority of the population and relies extensively on rainfall. This means that rainfall is a central determinant of economic growth and is a source of food insecurity which fuels inflationary pressure through its effect on the supply and demand of food products. The secondary sector remains undeveloped ineffective and vulnerable to foreign competition. Measures being taken to promote the emergence of an industrial class worthy of the name are meeting with little success, essentially because private operators prefer less risky sectors like the import-export trade, services, Telecommunications and mines.