Mali

Mali is a landlocked country in the Sahel, with an estimated population of 12.7 million, which is growing at a rate of 3% per year, excluding large-scale migration. It is ranked 175th out of 177 countries according to the UNDP's 2006 Human Development Index but has experienced a slow but steady increase in its HDI over the past 15 years. Located in the middle of a sub-region racked by conflict, Mali restored democracy 15 years ago. Malian law guarantees human rights, and the principles of the rule of law are respected. However, the rights of vulnerable population groups (such as women and children) are heavily influenced by traditional values. The Constitution recognises the independence of the judiciary, but its effectiveness is limited by understaffing and skill shortages and the precarious physical conditions under which it operates. Corruption remains a serious obstacle to real democracy and effective action by the public sector. Although the country as a whole is regarded as stable, there is still unrest in the North. The government, supported by its technical and financial partners, has launched a major reform of the national institutions which is currently focusing on decentralisation.

Mali's economy experienced a period of growth between 1994 and 2004, when the average rate of growth was 5.7%. There is little diversification, and the economy is still heavily dominated by the primary sector, making it vulnerable to external shocks (climatic, economic and political). As an exporter of raw materials, Mali is vulnerable to fluctuations in the world prices of commodities such as gold and cotton, and this is compounded by variations in the exchange rate of the dollar against the euro, the currency to which the CFA franc is pegged. The inadequacy of the infrastructure and the costs of energy and transport are the main factors holding back the country's development.

The proportion of the population living in poverty fell from 72-73% in 1989 to 68.3 % in 2001. Poverty remains more prevalent in rural areas, affecting 73% of the rural population compared with 20% of the urban population. Despite a sharp increase in the supply of social services, the results have been mixed. The adult literacy rate is put at 26% and the gross school enrolment rate reached 74% in 2006, with pronounced regional disparities. Over the past 15 years growing numbers of pupils have failed to complete the school year, and this will inevitably have had a very negative impact on the quality of their education. The effectiveness of the education system as a whole is thus being undermined. Despite an improvement in the mortality indicators over the past two decades, the health of the population remains insecure and morbidity indicators are still high. Rapid advances have been made in improving access to safe drinking water, and the target of 67% was met in 2006. Given current trends, Mali will be unable to meet most of its Millennium Development Goals by 2015, with the exception of access to safe drinking water. The social and economic situation in rural areas is fuelling high levels of internal migration and emigration. Much of this migration is internal, from the rural areas to the towns. By 2025 50% of the Malian population will be living in the urban area of the Bamako-Ségou-Mopti triangle.

Community intervention under the 9th EDF focused primarily on developing the road infrastructure, aid for decentralisation in the form of sectoral budget support and aid for the implementation of the CSLP (poverty reduction strategy) in the form of general budget support. A total of €228.4 million was allocated to road infrastructure from the 8th and 9th EDF and efforts were concentrated on regional corridors. The funding from the 9th EDF made an important contribution to opening up access to the outside world: work on access to Dakar via the North, with the section from Didiéma to Didiéni, and via the South, with the section from Kati to Kita, access to Nouakchott, with the section from Diéma to Nioro, and access to Niamey with the Gao-Ansongo-Labezanga road, totalling 642 kms. Institutional support and measures for cross-sectoral issues completed the sectoral aid package. The crisis in Côte d'Ivoire vindicated the strategic decision to diversify access to the port facilities that are essential to the country's viability.

The Community provided aid for the reform of the state administration, and in particular the introduction of decentralisation, in the form of a project to support the setting up of municipalities (8th EDF) worth a total of €45.8 million. A further €72 million was granted under the 9th EDF as part of the sectoral approach; it includes budget support, the support programme for administrative reform and decentralisation (PARAD). The support provided by the European Community made it possible to consolidate aid from several partners. Because it was not earmarked for specific targets, Community support enabled investment resources to be distributed across the entire country and to all areas of intervention. By supporting the process whereby the elected representatives become the agents of their own development, support for decentralisation helps to consolidate efforts in favour of good governance.

The CSLP 2002-2006 received general budget support worth €148.5 million over six years, which was supplemented by institutional support worth €5.5 million for the CSLP's sectoral policies, its monitoring and evaluation, as well as support for public finances and the statistical system. So far, the general budget support has produced a satisfactory level of disbursement, which ensures a significant liquidity flow for the budget. The programme has played a considerable role in the efforts by the Malian administration to implement the sectoral policies and the action plan to improve public finances. The variable tranche system has undoubtedly contributed to greater rationalisation and consistency in the statistical information in Mali.

The European Community cooperation strategy is based on the following principles: continuing intervention in the sectors of the CSCRP (growth and poverty reduction strategy) where the EC has a comparative advantage, backing the government's efforts to promote growth by developing support for promising productive sectors around regional development poles, recognising the multiplier effect of the instruments and support mechanisms, and ensuring complementarity with the regional programming for West Africa and the requirements linked to implementation of the economic partnership agreement.

In line with past practice, the EC's intervention policy, as reflected in the programming of the 10th EDF, will tie in closely with the government's poverty reduction strategy and will comply with the broad principles of EU development cooperation. In order to contribute to poverty reduction and ensure coherence and complementarity with the work of other donors, particularly European donors, the main areas of intervention will be as follows:

• governance (11% of the budget): support for the ongoing reform of the public sector and the organisation of state services aimed at i) consolidating the process of devolution and decentralisation of state services and ii) formulating and implementing Mali's migration policy;
• economic development in the North and Niger delta regions (50%): as part of the efforts to integrate decentralised regions with high potential, support will be given to: i) a sectoral transport and infrastructure programme in these regions, ii) implementation of the master plan of the Office du Niger, and iii) implementation of their regional development plans;
• general budget support for implementing the CSCRP (28%): directed at the entire reform process in the key sectors of the CSCRP, particularly social sectors (education/health) and transport;
• other programmes (11%) (including support for productive sectors under EPAs and support for civil society).