Benin has made progress in assessing the policy and national institutions (Country Policy and Institutional Assessment-Cpia) published a few days ago by the World Bank. The country’s overall Cpia score fell from 3.5 in 2019 to 3.6 in 2020, a first increase in this score during the decade 2010-2020. Nathalie Picarelli, economist at the World Bank, explains the positive results obtained by Benin and points to the challenges raise by the country to perform better.

The Nation: Benin has made progress in World Bank’s latest Cpia assessment, made public, there is A few days. First of all, what does this assessment consist of?

Nathalie Picarelli: The Cpia assessment of the World Bank is to take stock of progress carried out by countries, as part of strengthening the quality of their policies and institutions in order to promote sustainable growth and poverty reduction. The evaluation is done all years for countries eligible for Ida funds, i.e. funds to concessional terms for low-income countries.
This year, Cpia covers 75 countries including 39 in Africa. The evaluation is based on on 16 criteria representing the institutional dimensions of a effective poverty reduction strategy. The criteria are grouped into four categories: economic management (group A), structural policies (group B), policies to combat social exclusion and in favor of equity (group C) and the management and public sector institutions (group D). For each criterion, the Country performance is rated on a scale from 1 (low) to 6 (strong).
For Benin, a workshop was organized in November from last year with the various government actors and the Civil society with the aim of taking stock of the reforms that the government put in place in 2019, and to review the results. World Bank specialists in each of the 16 domains participated in order to make an informed assessment. Through the government subsequently re-established a reform monitoring unit Cpia managed by the Ministry of the Economy and Finance.

How important is it in the partnership between the World Bank and countries?

First, Cpia assessment scores play a role essential insofar as they are one of the criteria that determine the distribution of concessional loans and Ida grants. The most performers based on their Cpia score might expect to have a more substantial envelope in order to stimulate growth and promote shared prosperity. Second, the annual assessment Cpia makes it possible to put forward a guiding idea of the Bank global: development comes from reforms institutions implemented and through the establishment of policies solid public. It is not with the Cpia to assess the performance on criteria that may be affected by the economic situation (like the Covid-19 for example) but the reforms structural. The annual publication of scores by the World Bank allows you to follow up and recognize the efforts made by the governments of the member countries of Ida.
It’s important to emphasize that Cpia scores are not taken for granted. Every year, the World Bank country teams assess the progress but also the setbacks, and offer the arguments in favor of scoring. Over there thereafter, there is an internal process of harmonization and control for ensure that the ratings are consistent with the efforts made by report to the other member countries of the association.

In what areas has Benin made progress?

Over the past year, Benin has made progress significant in four specific areas. First of all, the economic management has been improved through the publication of regular and comprehensive statistics on debt management, as well than the introduction of programmatic budgets, and the sustained progress in terms of tax consolidation. In the field of management economic, Benin has the second highest score in Africa, after Uganda. Second, the financial sector has been made more resilient by pursuing reforms on standards requirements international agreements of Basel II and Basel III. Third, the better health sector planning process has enabled increase the score for human capital. Finally, progress has been achieved in terms of property rights with better transparency of the land administration system, publication in line of the cadastre and especially the adoption of a decree facilitating the conversion of living permits into recognizable land titles such as guarantees by the banking regulator (Commission Bancaire de Uemoa). This reform should also improve the profitability of banks. By the end of October, around 600 guarantees had been formalized, corresponding to 72 billion CFA francs in guarantees underlying.

Benin took 10 years to go from a score of 3.5 to 3.6? How is 0.1 a breakthrough?

Because the Cpia score measures structural reforms and their results, the achievements are progressive and do not happen overnight on the next day. This type of reform takes time. As I recalled last November during the workshop, it really is a marathon and not a speed race!
A country that is known for its reformist vocation like Rwanda, moreover often the first of the ranking in different areas, took 5 years to go from 3.8 (2009) to 4.0 (2015). At the level of all low-income countries, the score has deteriorated by an average of 0.1 over the last 10 years.
Two other characteristics of the scores make the trip also slow. First, as I recalled, the scores are not acquired. Countries can make progress a year and no longer be able to maintain them the following year. Second, the scores are relative because they are harmonized so as to be sure that the rating reflects equivalent progress over the past year by compared to other countries of Ida. It takes to a certain extent do better than others too!
The advance of Benin this year is therefore very important! It not only shows progress substantial compared to the scores of the last 10 years, but shows better performance relative to other countries, in particular in the fields mentioned above. The challenge for this year will be able to maintain this score with reforms that reflect as much progress as those of last year.

In what areas does Benin need to improve in order to make better progress?

There is always progress to be made in all areas, especially to maintain scores. To improve your score overall, Benin should focus on the scores where it is most low, especially relative to the average for other African countries. First, we must continue to strengthen the profitability of the system banking and financial inclusion. This last point is also related with a better inclusion policy for women and girls. The country is still below the world average (69%) of financial inclusion and has the largest gender gap in Uemoa, with only 29% of women in Benin having access to a transaction account against 49% of men according to statistics Findex. A third avenue is the strengthening of social protection and pensions, and the regulation of the job. The current Arch project may soon bring results, but there are still few social safety nets, such as unemployment insurance by example.

What could be the impact of the coronavirus on the progress recorded at the level of Cpia?

As we recalled, the Cpia is interested in measurements structural, long-term! The Covid-19 would impact the economic growth and social indicators, but Benin’s score could still increase if the government continues its commitment reformist in recent years, particularly in terms of transparency budget, transparency in debt management policy, and the other areas mentioned. In this sense, the health crisis is also an opportunity to be able to take important decisions in key areas, particularly in terms of social protection and integration policy for young people in the labor market.

Cpia is less well known than Doing Business, how do to involve non-state actors more in this exercise ?

Civil society is very involved in the process evaluation of the Cpia and we also invite representatives of the media in the discussions we organize with the administration public. Indeed, there is a need to communicate more about the content of the Cpia and its importance in improving policies public and institutions. It is for this reason that the World Bank initiated this year for students d’Abomey-Calavi a Cpia competition. In teams of three to four people, students have submitted works on the issue of gender equality in Benin.
The results of the competition will be communicated in the coming days.