Perspectives on growth and poverty reduction in Mali

Since the 1994 devaluation, growth resumed in Mali without any significant decrease of poverty. This may be explained by the high level of inequality, which has increased in the recent period. The poverty reduction strategy described in the PRSP relies mainly on increasing the supply of primary education and basic health. This strategy is not likely to attain its objectives. Increasing the budgetary allocation of these sectors is not enough to improve the quality of public services and the demand of education (especially of the poorest) will not necessarily increase with its supply. Moreover, the poorest are not likely to grasp the benefits in order to improve their living conditions. The poorest are rural, unable to diversify their agricultural income due to their weak assets and their difficulty to access credit. In a dynamic approach, a redistributive policy could give them the opportunity to invest in human capital before migrating to other sectors where returns to education are higher. However, this would work only if active policies in terms of job creations and access to credit are implemented in the urban areas.