BURKINA FASO

Republic of Burkina Faso
Burkina Faso Jamahiriya

COUNTRY OVERVIEW

LOCATION AND SIZE.

Burkina Faso is a landlocked West African state. With a total border length of 3,192 kilometers (1,984 miles), Burkina Faso is bordered by Mali to the north and west; Niger to the east; and Benin, Togo, Ghana, and Cote d'Ivoire to the south. It has a land area of 274,122 square kilometers (105,839 square miles), making it slightly larger than the U.S. state of Colorado. The country spans 400 kilometers (250 miles) from east to west and 200 kilometers (125 miles) from north to south. The capital, Ouagadougou, is located in the center of the nation.

POPULATION.

The population was estimated at 12.3 million in 2001, with a growth rate of 2.7 percent per year. The country's population density stands at 42 people per square kilometer (109 people per square mile), but the population is unevenly distributed, with the north and east regions being sparsely populated. About 17 percent of the total population live in urban areas, but the urban population is growing at a rate of 11.3 percent per year.

The country is ethnically diverse. In pre-colonial times it was part of the Mossi Empire, and the Mossi population is still the largest ethnic group in Burkina Faso, accounting for nearly half of the total population. There are many other groups, but the most significant are the Gurmanche, who are related to the Mossi group and are located in various parts of the country; the Gurunsi in the South; the Bwa, Bobo, Lobi, Senufo, Marka, and the Samo in the West; and the Fulfulde (otherwise known as the Fulani) in the North. Ethnic relations are generally relaxed, with few, if any, overt ethnic hostilities.

A large number of Burkinabe work in neighboring countries, though Cote d'Ivoire (originally the most popular with migrant workers) has become less welcoming recently.

OVERVIEW OF ECONOMY

Burkina Faso is estimated to be one of the 20 poorest countries in the world. The gross national product (GNP) per capita , as measured by the exchange rate conversion, is estimated at approximately US$240. The purchasing power parity conversion (which makes allowance for the low price of many basic commodities in Burkina Faso) estimates per capita income at US$1,000 (2000 est.). This amount can be compared with an average per capita income of US$36,200 in the United States in the same year.

The economy depends very heavily on agriculture, which accounted for 26 percent of the GDP in 1998. Approximately 90 percent of the population depend on subsistence agriculture, as even urban dwellers maintain strong links to the countryside. The main food crops are sorghum, millet, maize, and groundnuts. The Burkinabe economy also relies on the export of gold, cotton, and livestock. Industry, although it provides 27 percent of the GDP, is not extensive and consists mainly of mining and some manufacturing (soap, soft drinks, beer, and household utensils). In 1998 retail and wholesale trade generated about 12 percent of the GDP and transport and communications approximately 10 percent, and the total contribution to the GDP by the service sector stood at 47 percent. Despite major fluctuations, Burkina Faso's GDP growth has kept pace with population growth over the past decade. The GDP growth rate was estimated at 5 percent in 2000.

Following a coup that brought Thomas Sankara to power in 1983, Burkina Faso instituted a centralized economy. The Burkinabe government eventually succumbed to international pressure and agreed to a structural adjustment program with the International Monetary Fund (IMF) in 1991. This agreement led to the implementation in 1993 of the first of 3 Enhanced Structural Adjustment Facilities (ESAFs), the last of which started in 1999. The programs call for privatization of the state run sector, liberalization of the major trading sectors, reform and rationalization of banking, greater incentives for private sector development, and tighter controls on public spending and revenue collection.

The IMF has been pleased with Burkina Faso's progress. A further ESAF was granted for 1999 to 2002 to allow for more civil service restructuring , increased privatization, the liberalization of the cotton sector, strengthening of the judiciary, the implementation of the common external tariff with other West African Economic and Monetary Union (UEMOA) states, and the improvement of health-care and education provisions. By May 2000, 22 state enterprises had been privatized, 8 were up for sale, and a further 12 had been liquidated.

Burkina Faso's taxable capacity is very low due to the limited extent of commercial activity. Many past governments have tried to cut spending, but the unavoidable expenditure on development, the high cost of debt servicing , and rising wages have proved obstacles. Fiscal reform is thus a priority under the ESAFs, and the government will attempt to widen its tax base, rationalize direct taxes , reinforce value-added tax (VAT) collection, and reform custom duties . The government has pledged to stabilize current spending while improving spending on priority areas—health, education, and social services.

Burkina Faso's economic performance depends very much on agriculture, which in turn depends upon the weather, all of which means that the nation's economy tends to fluctuate. Inadequate and unreliable data also restrict proper analysis of the macro economy, although the situation is improving.

The Ministry of Finance indicated real GDP growth at 2.6 percent in the years 1986 to 1990, which was close to the rate of population growth. The strong economic expansion of 1991 was reversed in the years 1992 to 1994. The devaluation of the CFA franc in 1994 did not boost growth that year, but the economy grew by 4 percent in 1995, by 5.7 percent from 1996 to 1998, and by 5.8 percent in 1999.

Investment has been consistently high in recent years. The World Bank estimated investment to be 29 percent of the GDP in 1998, marking an increase from 17 percent since 1980. The public sector provides half to two-thirds of all investment, much of which is financed by aid, mostly from France. Economic aid totals 16 percent of the GDP.

Prices rose by 25 percent in 1994, but inflation fell rapidly the following year to 5.3 percent and remained at that rate until the end of 1998, and then dropped even further to-1.1 percent in 1999. Normally domestic price levels are determined by harvests, and import prices have been kept down by the strong CFA franc. Nonetheless higher prices for certain goods, such as medicines, have hit the population hard.

POLITICS, GOVERNMENT, AND TAXATION

The state of Burkina Faso consists of an area that was controlled by the Mossi from the 14th century until 1895, when the French took control. It was made part of the Franc Zone and it was named Upper Volta in 1919 after having been marked out from the surrounding territory. It was divided in the 1930s to form 2 states but returned to a single unit in 1947, changes which led to the border disputes with Mali. Burkina Faso became independent in 1960 under President Maurice Yameogo.

The first administration ended due to economic decline, corruption, and increasing authoritarianism. Rigged elections caused public demonstrations and led to military intervention in January 1966, when General Sangoule Lamizana became the head of a military ruling council. He remained in control for 15 years, despite some civilian power-sharing in the 1970s. Party bickering and trade union unrest led to a bloodless coup in 1980, bringing Colonel Saye Zerbo to power. In 1982, when the constitution was suspended, political parties were banned amid corruption allegations. Army officers replaced Zerbo with Major Jean-Baptiste Ouedraogo as president. The regime that followed was an uneasy coalition of army conservatives and young radicals.

The attempted ousting of Prime Minister Thomas Sankara in 1983 led to student, labor, and young officer unrest. Sankara himself became president via a coup, and the National Revolutionary Council (CNR) was formed. The CNR championed the redistribution of wealth to rural areas. Sankara renamed the country Burkina Faso in 1984. He aimed to reduce foreign dependence, shift the economy towards the productive sectors, and expand health care and education. Internal divisions unsettled Sankara's support, and in October 1987 Sankara and 13 of his entourage were killed in a violent coup by the self-proclaimed Popular Front. The party was led by Captain Campaore, who then declared himself head of state. The continuing violence employed by his regime led to diminishing internal support and international condemnation. International concern further increased in 1989 when 2 former ministers and 2 army officers were executed for plotting a coup to overthrow the Campaore regime.

Starting in 1990 and amid protests, Campaore opened the way for the liberalization of the regime. However, the government refused to convene a national conference with the opposition and drew up a new constitution on its own terms for multiparty elections. The constitution was approved in a referendum in 1991, albeit with a poor turnout. Campaore's ODP-MT party renounced its Marxist -Leninist ideology and embraced free enterprise policies instead. The opposition parties boycotted the December 1991 presidential election, and Campaore stood unopposed, winning on a 25 percent voter turnout.

The ruling alliance also dominated the 1991 legislative election, with the ODP-MT party winning 78 out of 107 seats in parliament and the fragmented opposition winning only 23. In 1996, ODP-MT absorbed several smaller parties (including some opposition parties) and formed the new Congress for Democracy and Progress (CDP). With state office, large resources, and some opposition parties on their side, the CDP dominated the legislative election of 1997, winning 101 of 111 seats. Campaore was reelected in 1998 with a 56 percent turnout and 87 percent of the vote, with some of the opposition boycotting the elections.

In 1991, the constitution formally separated the state from the ruling party by creating separate executive, judiciary, and legislative branches; basing the government on a multiparty system; and ensuring freedom of the press. A civilian president would be inaugurated for a 5-year term. Although the president was only eligible to be reelected once in the original constitution, this was changed to allow a president to be reelected indefinitely. However, following public protest, this amendment was changed back in 2000 so that any president may now only be reelected once. In 2000, the Supreme Court was split into 3 High Courts, which oversee the judicial system, administration, and the audit of public finances.

The president selects the prime minister, subject to parliamentary approval. A parliament of 111 seats sits for 5 years. The constitution also allows for a 174 seat representative chamber.

Although salaried workers only account for a small percentage of the population, they exert a significant political effect due to unionization and their location near legislative centers. Students, who can also be a political influence, staged a 3-month strike in 1997 over political killings.

The presidential guard is a major force in Burkina Faso, although the transition to formal civilian rule and the loss of their uniforms has led to a reduction in their influence. However, tensions still exist in the military and the possibility of a future coup cannot be ruled out, especially in light of public protests in 1999.

Burkina Faso is a member of the Economic Community of West African States (ECOWAS) and UEMOA. The UEMOA headquarters are based in Burkina Faso. Relations with Côte d'Ivoire have become increasingly difficult, with the latter wishing to curb migration from Burkina Faso. Relations with Mali have been controlled since a brief border dispute, but Campaore's support of rebel factions in Liberia and Sierra Leone has irritated his neighbors.

There is little recent information on taxation. In the 1980s, Burkina Faso raised tax revenue equivalent to 10 percent of the GDP, mostly from import duties. A further 1 percent of the GDP was received from the surpluses of state-owned enterprises, mostly the big utilities that operated as monopolies . With increased privatization, this source of revenue has diminished in importance. The government spends 30 percent of its revenue on social services (including health and education), about 30 percent on the armed forces, and the remaining 40 percent is absorbed by general administration.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Despite recent investment, the transport system is poorly developed. Given that the country is landlocked, the nearest ports are found in Cote d'Ivoire, Benin, and Togo. The government is undertaking a US$360 million World Bank program to create a coherent policy and a regulatory framework for infrastructure , rehabilitate the road and rail network, and restructure the state transport system.

There are 13,200 kilometers (8,202 miles) of classified roads in Burkina Faso, of which 1,800 kilometers (1,119 miles) are paved. The former state bus company has been privatized and now runs 5 main routes throughout the country. The 1,260-kilometer (783-mile) Abidjan-Niger railway is the main transport axis, although the line has not recently operated efficiently, and rail traffic is in decline. Burkina Faso's 622 kilometers (387 miles) of line are scheduled for restructuring. In 1995 a French dominated company took control of the railroad, and the line is anticipated to be rehabilitated with a US$31 million World Bank loan.

The country has 2 international airports, and several regional carriers operate international services. The former parastatal , Air Burkina, has been bought by the Aga Khan's business group (the Aga Khan is the leader of the Ismailis, a Muslim sect originating in the Indian sub-continent), and is undergoing overhaul and expansion.

The main government newspaper is Sidwaya, but there are several private papers. Since legislation allowing opposition parties, several short-lived political newspapers have come and gone.

Radio broadcasts in French and local dialects are a major form of government communication. There are 17 FM stations, 2 AM stations, and 1 SW station that broadcast to 370,000 radio receivers. In 1997, 103,000 televisions received programs from Burkina Faso's 1 TV station.

The telephone network is very small, with only 42,000 subscribers. The state telecommunications company, Onatel, is expected to be privatized and the domestic market will be liberalized, although Onatel will have a monopoly on international calls.

Burkina Faso is predominantly dependent on thermally generated energy. The National Grid Group, a leading international electricity and telecommunications organization, only covers 4 percent of the population. Sonabel, the national electric company, produced 305 million kilowatt hours (kWh) in 1997, of which two-thirds was thermally produced and one-third was hydro-electrically produced. Construction has begun on a new dam, but the cost of electricity production is still significantly higher in Burkina Faso than in neighboring countries. Although the government is not planning Sonabel's privatization, the market will be liberalized and companies will be able to compete for production and distribution with Sonabel.

Consumption of petrol products is low, and wood fuel provides over 90 percent of domestic energy. The government is trying to promote butane in order to slow deforestation.

ECONOMIC SECTORS

The relative sizes of the main sectors of the economy— agriculture, industry, and services—have barely changed since independence in 1960. The industrial sector contracted during the period of Marxist control of the economy from 1983 to 1991, and the agriculture sector expanded as more people relied on subsistence agriculture to meet their day-to-day needs, but there has been a reversal of these trends in the past decade.

The economy is heavily dependent on agriculture to provide livelihoods for its population. Although the agriculture sector (including hunting, forestry, and fishing) provided only 26 percent of the GDP in 1998, it employed about 90 percent of the workforce. Industry (including mining, manufacturing, construction, and power) contributed 27 percent of the GDP in 1998 but occupied 2 percent of the workforce. Services contributed 47 percent of the GDP in 1998 and employed 6 percent of the population. The agriculture sector is much larger than those of most African nations, which on average generate 17 percent of GDP. Burkina Faso's industry and service sectors are smaller than average (in Africa they generally would produce 34 percent and 50 percent of GDP, respectively).

AGRICULTURE

Agriculture and livestock provide a living for approximately 90 percent of the population. However, due to the climatic variations in rainfall and because there are few permanent watercourses, irrigation is limited to only 15,000 hectares (37,067 acres) of the nation's total 3.27 million hectares (8.1 million acres). Soil quality varies, though it is generally better in the southwest of the country. Cotton, shea nuts, millet, and sorghum are grown in the central Mossi plateau. Livestock is the main source of livelihood in the north, with 18 million head and providing around 15 percent of exports in 1998.

The lack of advanced technology also hinders farming in a poor environment. Only 36 percent of farmers have links with extension services, and only 30 percent own either a plough or traction animals. Fertilizer is used almost exclusively on cash crops . Land holdings are also very small. An extended household may farm around 9.6 hectares (24 acres) in total, but plot sizes are small, with each plot averaging only 0.4 hectares (1 acre). This means that Burkina Faso can easily fall below self-sufficiency in food production, especially in the north where the rains may come late or there may be a drought.

The main staple crops are rain-fed millet and sorghum. Maize is grown in increasing amounts, however, and vegetables are also produced in significant quantities. Attempts to boost rice production (for example, through public irrigation) doubled its production to 94,000 metric tons in 2000. The main export, cotton, has seen a revival in recent years, reaching a high of 338,000 metric tons in the 1997-98 season. It has since fallen in both the 1998-99 and 1999-2000 seasons due to farmers' debt repayments, a depressed world market, and poor weather.

Timber production is negligible, although forest and woodland cover some 50 percent of Burkina Faso. Much deforestation has taken place as a result of firewood collection and has only been partially offset by campaigns to promote tree planting. In 1991 the government launched a long-term management program to maintain the environment.

The fish catch of 6,000 to 7,000 metric tons per year, taken from rivers, dams, and ponds, is much lower than the estimated consumed figure of 13,000 metric tons. Inland fish farms are being developed.

INDUSTRY

Primary components of Burkina Faso's industrial sector are manufacturing, mining, and construction. Construction has enjoyed a boom as a result of international and government based infrastructure development schemes. Road building and the provision of water supplies are major government priorities and provide a further stimulus to construction.

MANUFACTURING.

Manufacturing focuses predominantly on food processing, textiles, and substitutes for consumer goods imports. It is mainly concentrated in the Ouagadougou, Bobo-Dioulasso, Koudougou, and Banfora regions. There are about 100 companies in Burkina Faso, and most are publicly owned. Manufacturing accounts for 20 percent of the GDP but only employs around 1 percent of the workforce. Growth has been limited by the lack of materials, the need to import fuel, and the small domestic market. The sector was in trouble from 1985 to 1995, with an average contraction of 5.8 percent per year but has shown some signs of recovery in food processing and metalworking since 1995. However, companies in Burkina Faso are worried they will not be able to compete as regional trade is liberalized.

The agro-industry accounts for 55 percent of value-added manufacturing in Burkina Faso. Sosuco (the former sugar parastatal), now owned by the Aga Khan, is the single biggest employer with 1,800 workers. The company has suffered recently from the competition of cheap imports and, due to its inability to pay wages, endured repeated union strikes in 1999. The government agreed to place a ceiling of 1,000 metric tons on any sugar or rice imports, tripled the import tax on sugar, and imposed a new levy on sugar imports, thereby making foreign costs equal local costs in order to help the industry.

The second largest component of the manufacturing sector is textiles (including leather goods), which contributed 21 percent of value-added manufacturing in 1998. The largest textile company in Burkina Faso, Sofitex, employs 700 people and produces mostly for the domestic market. The company also exports 25 percent of its production regionally.

MINING.

Burkina Faso has large unexploited mineral deposits, as one-quarter of its land is comprised of sedimentary formations from volcanoes. In 1993 the mining code was revised to encourage private investment, and the mining institutions have been restructured. Between 1992 and 1998 the government issued 180 prospecting licenses to 30 foreign and local companies. However, interest slackened in 1999 following the dip in world oil prices.

The third largest export, gold is by far the most important commodity mined in Burkina Faso. Yet Burkina Faso's gold output has remained stagnant in recent years. Underground exploitation of the Poura gold mine, which has a 26,000-kilogram (57,300-pound) reserve, stopped in 1999. The government plans to restructure the mine before reopening and privatizing it.

SERVICES

The services sector consists mainly of wholesale and retail distribution, telecommunications, posts, transport, hotels and restaurants, repairs, financial services, tourist services, and government administration. For the most part, the service sector responds to the general growth of the economy. The size of the distribution sector has remained constant at around 12 percent of the GDP, and the transport and communications sectors have likewise remained constant at 10 percent.

BANKING AND FINANCE.

Since the early 1990s banking has undergone restructuring, and the government has been limited to 25 percent participation. Of the 3 commercial banks, Banque Internationale du Burkina Faso has completed its reforms; the Banque Nationale de Development du Burkina is being liquidated; and Banque pour le Financement du Commerce et des Investissements du Burkina (BFCIB) has been privatized. Banking regulation is also being tightened by the Banque Centrale des Etats de l'Afrique de l'Ouest (BCEAO), the regional central bank.

TOURISM.

Problems of communication and poor facilities mean mass tourism is not yet an option in Burkina Faso. However, the country does have some attractions to offer visitors; it is host of the Biennial National Culture Week, the Pan African Film Festival, and the International Handicrafts Fair. National parks are also of interest. Given its central West African position, the country has also become a common location for regional conferences. In 1997, tourism receipts reached US$22 million and accounted for 9 percent of the GDP.

INTERNATIONAL TRADE

Burkina Faso's trade deficit fluctuates, rising in poor harvest years. The trade deficit reached a high point in 1990 at US$262 million but was reduced to US$164 million in 1994, mainly due to the CFA franc's devaluation. As imports recovered, the gap grew again to US$330 million in 1996 before receding in 1998 to US$261 million, primarily due to improved cotton exports.

Principal exports in 1998 were cotton (66 percent), livestock (8 percent), hides and skins (6 percent), and

gold (5 percent). The main destinations of exports were France (15 percent), Cote d'Ivoire (10 percent), Indonesia (6 percent), Taiwan (3 percent), and Ghana (3 percent).

Principal imports in 1998 were machinery and transport equipment (29 percent), food products (13 percent), and petroleum products (12 percent). Most of the remaining imports were other types of consumer manufactures. The main origins of imports were France (28 percent), Cote d'Ivoire (19 percent), Japan (5 percent), and Italy (4 percent).

MONEY

Burkina Faso is part of the 8-member West African economic union, UEMOA, and the currency is the CFA franc. The regional central bank, BCEAO, issues currency notes and regulates credit expansion. The CFA franc was pegged to the French franc at 50:1 in 1948 but was overvalued by the late 1980s and was devalued to CFA Fr 100:1 French franc. With this devaluation, much of the benefit coming from confidence in a stable rate of exchange with the French franc was lost. However, the devaluation raised the domestic price of export crops, which improved output and raised export revenue, and made imports more expensive and resulted in lower import expenditures. With France having joined the European Monetary Union, the CFA franc is now tied to the euro at CFA Fr655.959:1 euro. Inflation averaged less than 3 percent per year from 1996 to 2000. The inflation rate was estimated at 1.5 percent in 2000.

A regional stock exchange has been established, the Bourse Regionale de Valeurs Mobilieres, that serves Benin, Burkina Faso, Cote d'Ivoire, Guinea Bissau, Mali, Niger, Senegal, and Togo. There are branches in each of the 8-member countries. To date, only companies in Cote d'Ivoire and Senegal are listed on the exchange.

POVERTY AND WEALTH

Burkina Faso is a low-income country, but there are no official poverty figures. However, average income per capita in the rural areas is estimated to be near the poverty level, and it can be concluded that probably more than 60 percent of the population are in poverty. The overwhelming majority of the impoverished live in the rural areas, relying on agricultural production from small family farms or herding family-based livestock for their livelihood. To be below the established dollar-a-day poverty level means that a person does not have enough income to provide the barest minimum of food, clothing, and shelter. In 1995, Burkina Faso was ranked 172 out of 174 countries in the United Nations Human Development Index, which combines measures of income, health, and education.

In 1998, 41 percent of Burkinabe children attended primary school, 10 percent attended secondary school, and only 1 percent attended schools of higher education. The pupil to teacher ratio climbed to 51:1 in 1998, and figures indicated that only 19 percent of the population over the age of 15 were literate in 1995 (30 percent of males and 9 percent of females). Health care has improved since independence, though it is still very poor. The infant mortality rate stands at 107 deaths per 1,000 live births (2001 est.), compared to a rate of 7 deaths per

1,000 live births in the United States. Life expectancy is 47 years (2001 est.).

WORKING CONDITIONS

The labor force of Burkina Faso numbers 4.7 million and includes people 10 years of age and older. The government is the largest formal employer with about 40,000 public sector workers. A large proportion of the male labor force migrates annually to neighboring countries for seasonal employment. There are no official unemployment figures for Burkina Faso, but regardless, these figures would have little significance in such a low-income economy. Although there may be few people considered as unemployed, many of these people only live off subsistence farming . There are no unemployment benefits, and those who do not work rely on support from charities or their families. Many people would like a modern sector job but are forced instead to survive by working on their family farms or in casual informal sector activities in the urban areas (such as hawking , portering, and scavenging).

A labor court enforces the rights of workers as detailed in the national labor code, and trade unions are legal. The modern sector has a workforce of about 450,000, of which 40,000 are civil servants. Trade union membership is 60 percent in the public sector and 50 percent among private sector employees. Although union participation is small in relation to the total population, since there is such strong membership among workers and because the unions are strategically located in the modern sector and in the urban areas, they have considerable power when they exercise their right to strike.

The relatively high GDP growth from 1995 onwards has improved living standards only marginally. The guaranteed minimum industrial wage remained at US$0.44 per hour from 1988 to 1994. It increased by 10 percent after the devaluation of the CFA franc in 1994. Trade unions only gained a 3 to 5 percent rise in public sector salaries in 1996 and another 5 to 10 percent in 1999.

The Constitution of the Fourth Republic of Burkina Faso guarantees the collective and individual political and social rights of the country's citizens.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1300-1895. As Upper Volta, Burkina Faso is part of the Mossi Empire.

1895. France colonizes a broad area containing Burkina Faso.

1947. Burkina Faso becomes a recognized territory.

1960. Independence is gained from France, and Maurice Yameogo becomes the first president.

1966. Following a coup, General Sangoule Lamizana becomes president.

1970. A civilian government is elected to serve under Lamizana.

1974. The army assumes power under Lamizana.

1978. Multiparty elections are held. Lamizana is elected president.

1980. A coup brings Colonel Saye Zerbo to power.

1982. Zerbo is deposed, and Major Jean-Baptiste Ouedraogo becomes president.

1983. Prime Minister Thomas Sankara seizes presidential power.

1984. Upper Volta is renamed Burkina Faso.

1985. A 6-day war with Mali occurs.

1987. Sankara is assassinated, and Captain Blaise Campaore becomes president.

1991. A new constitution is adopted by a referendum.

1991. Campaore is reelected president in an unopposed election; the opposition boycotts the election.

1993. Enhanced Structural Adjustment Facility (ESAF) is signed with the IMF.

1994. The CFA franc is devalued, raising prices to producers of exports and raising the price of imports, thereby avoiding a period of higher inflation.

1998. Campaore is reelected as president in a contested election. The assassination of newspaper editor and popular antigovernment critic, Norbert Zongo, sparks civil unrest.

1999. There is a general 1-day strike over privatization, low salaries, and the assassination of Zongo. The government responds with a program to promote unity and national reconcilation.

2000. In all, 22 state-owned enterprises are privatized.

2001. Burkina Faso suffers severe drought.

FUTURE TRENDS

Militancy on the part of trade unions and human rights organizations is likely to continue, despite concessions announced by President Campaore in 1999. These concessions include setting up an inquiry into the death of Norbert Zongo, assuring the military that their delayed housing allowances will be paid in installments, and appointing a new prime minister who has incorporated members of the opposition into his cabinet.

The new prime minister, Paramango Ernest Yonoli, appointed in October 2000, will have to prove himself to the public, particularly with regard to the task of carrying out privatization and civil service reforms in the face of trade union opposition. Yonoli announced a new cabinet that includes figures from the moderate opposition parties. Teacher and student protests have thrown the school system into chaos, and the University of Ouagadougou has been closed since the riots that followed Zongo's death. Civic groups and opposition parties have also kept up the pressure for justice. Three presidential guards finally have been imprisoned over the assassination of Zongo, but this will hardly satisfy the opposition, who want those senior figures in the government that were behind the assassination to be brought to justice.

Despite international economic aid, GDP growth is expected to slow to 4 percent in 2001, due mainly to civil unrest, which creates a climate of political instability and discourages investment, and the impact of the drought, which has resulted in poor harvests. Prospects for cotton earnings will remain sluggish, but debt relief is under way under World Bank and IMF supervision. Aid from these organizations in the form of a Heavily Indebted Poor Country (HIPC) initiative should help Burkina Faso's situation.

DEPENDENCIES

Burkina Faso has no territories or colonies.

BIBLIOGRAPHY

A la découverte du Burkina Faso. <http://www.primature.gov.bf>.Accessed October 2001.

"Burkina Faso: Economy." NewAfrica. <http://www.newafrica.com/profiles/economy.asp?countryid=8>. Accessed September 2001.

Economist Intelligence Unit. Country Profile: Burkina Faso. London, England: EIU, 2000.

Embassy of Burkina Faso. <http://www.burkinaembassy-usa.org>.Accessed October 2001.

Hodd, M. "Burkina Faso." The Economies of Africa. Aldershot, England: Dartmouth Publishing, 1991.

Kelly, R. C., et al., editors. "Burkina Faso Country Review1999/2000." CountryWatch.com. <http://www.CountryWatch.com>. Accessed September 2001.

U.S. Central Intelligence Agency. World Factbook 2001. <http://www.cia.gov/cia/publications/factbook/geos/uv.html>. Accessed October 2001.

U.S. Department of State. Background Notes: Burkina Faso, March 1998. <http://www.state.gov/www/background_notes/burkina_0398_bgn.html>. Accessed October 2001.

—Jack Hodd

CAPITAL:

Ouagadougou.

MONETARY UNIT:

Communauté Financiére Africaine Franc (CFA Fr). One CFA franc equals 100 centimes. There are banknotes of 500, 1,000, 2,500, 5,000 and 10,000 CFA francs and coins in denominations of 1, 2, 5, 10, 25, 50, 100, 250, and 500 CFA francs.

CHIEF EXPORTS:

Cotton, animal products, and gold.

CHIEF IMPORTS:

Machinery, food products, and petroleum.

GROSS DOMESTIC PRODUCT:

US$12 billion (purchasing power parity, 2000 est.).

BALANCE OF TRADE:

Exports: US$220 million (2000 est.). Imports: US$610 million (2000 est.).