Bamako, 5 May 2009 - Mali is facing complex challenges as a result of the global economic crisis. But this landlocked country, one of the world´s poorest, is not short of assets that can be mobilized as soon as the first signs of economic recovery appear. At that point, Mali will be in a good position to diversify its commerce with the rest of the world.
That is the finding of a new UNCTAD study titled "Framing the National Trade Development Strategy of Mali". The study was presented at a national seminar on trade and development organized by UNCTAD in Bamako from 5-7 May 2009.
Carried out at the request of and in partnership with the Malian Ministry of the Economy, Industry and Trade, the study assesses the status of the country´s economy and proposes a trade and development strategy which seeks to capitalize on the country´s assets through an ambitious export diversification programme based on three pillars: institutions, infrastructure and sectoral action plans.
Mali has raw materials, primarily cotton and gold, a potential for tourism and culture-based income, a competitive labour force, and agricultural land which will be productive once irrigation problems have been solved.
The institutional framework for integrating Mali into global trade channels is already in place. The country´s trade legislation and policy largely conform with World Trade Organization (WTO) agreements.
Infrastructure remains one of the major constraints to economic integration. Sea access corridors are constricted, the transport sector is inefficient and dominated by cartels, the road network is poor, and there is no "cold chain" for transporting goods that must be refrigerated. Recent progress notwithstanding, telecommunications and energy remain too costly. Eliminating transport bottlenecks is a major challenge and requires cooperation with neighboring transit countries, among other steps.
In addition, the study says, progress has been too slow in implementing sectoral action plans in key economic sectors such as cotton, rice and meat. Vigorous reforms should be undertaken in the cotton sector, which is capable of playing a major role in combating poverty. Plans in industry and agriculture must be closely coordinated, so as to develop horizontal synergies (multiplier effects and upstream and downstream linkages) and take account of multisectoral constraints, especially environmental constraints.
The study says that national strategies alone cannot deal with all the risks generated by the current economic turbulence, which include falling commodity prices, tensions in international financial markets, solvency problems of private and sovereign debtors, and a possible resurgence of protectionism.
In the long term, the study adds, rising food prices, competition for access to raw materials, and difficulties posed by global warming will re-emerge once global demand begins to rise again; hence the need for rapid progress in implementing a solid trade strategy.
The study highlights the following priorities:
- Continuation of infrastructure rehabilitation initiatives - Programme of tax and other incentives for the modernization of the national truck fleet - Deregulation of road transport with a view to ending cartel arrangements - Vigorous elimination of surcharges and unofficial payments on road corridors - Continuation of the rehabilitation of the Bamako-Dakar railway line, as recommended by the Diagnostic Trade Integration Studies (DTIS). - Compliance with commitments made regarding the timetable for privatization of the Compagnie malienne pour le développement des textiles (CMDT) and related reforms - Continuation of initiatives to rehabilitate rural roads - Enhancement of the functioning of the input supply chain - Adoption as a matter of urgency of appropriate legislation clearly defining the system of land tenure for irrigated land, and establishment of suitable judicial structures - Enhancement of quality and traceability, especially of husked rice, through training and awareness-raising programmes on plant health matters - Increase in the area under cultivation in the Niger Office zone through the use of gravitational irrigation to reach the target of an additional 100,000 hectares by 2015 - Continuation of initiatives to rehabilitate the road routes from the Niger Office zone - Negotiations with partners in the West African Economic and Monetary Union (WAEMU) on the proper application of trade preferences in respect of rice - Continuation of efforts to combat market distortions (subsidies granted by certain countries) at multilateral forums - Renovation of Bamako´s abattoirs - Establishment of a credible cold chain, in collaboration with purchasers - Enhancement of transport conditions for livestock (security, infrastructure and veterinary services) - Institution of a credible certification procedure for purchasers from outside WAEMU (in particular from the Middle East and North Africa) - Development of an investment plan for tanneries - Provision of support to the federation of craftsmen and manufacturers of leather goods, and promotion of their products abroad |
