Enhancing Sustainable and Inclusive Growth in the Central African Economic and Monetary Community Prepared by IMF’s African Department and World Bank’s Africa West Region JOINT IMF/WORLD BANK POSITION NOTE Enhancing Sustainable and Inclusive Growth in the Central African Economic and Monetary Community Suggested Policies and Structural Reforms Prepared by IMF’s African Department and the World Bank’s Africa West Region Copyright ©2024 International Monetary Fund and the World Bank Cataloging-in-Publication Data IMF Library Names: International Monetary Fund. African Department, author. | World Bank. Western Africa Region, author. | International Monetary Fund, publisher. | World Bank, publisher. Title: Enhancing sustainable and inclusive growth in the central African economic and monetary community : Suggested policies and structural reforms / Prepared by IMF’s African Department and the World Bank’s Africa West Region Other titles: Suggested policies and structural reforms. Description: Washington, DC : International Monetary Fund, 2024. | Joint International Monetary Fund/ World Bank position paper. | Includes bibliographical references. Identifiers: 9798400208317 (paper) 9798400221569 (ePub) 9798400221644 (web PDF) Subjects: LCSH: Africa, Central -- Economic conditions. | Sustainable development. | Economic Development. Classification: LCC HC945.I58 2022 Disclaimer: The views expressed in this note belong solely to the authors. Nothing contained in this note should be reported as representing the views of the organizations, member governments, or any other entity mentioned herein. Any queries on rights and licenses, including subsidiary rights, should be addressed to the IMF Publisher Division, International Monetary Fund, 700 19th St., NW, Washington, DC 20431, USA; telephone: 202-623-7430; e-mail: copyright@IMF.org Publication orders may be placed online, by fax, or through the mail: International Monetary Fund, Publication Services P.O. Box 92780, Washington, DC 20090, U.S.A. Tel. (202) 623-7430 Fax: (202) 623-7201 E-mail: publications@IMF.org www.bookstore.IMF.org www.elibrary.IMF.org IMF/World Bank Position Note  •  Enhancing Sustainable and Inclusive Growth in CEMAC Contents An Update on Developments since 2022.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii 1. Fighting the Pandemic—Planning the Future. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. Where Do We Come From?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A. CEMAC—Lackluster Growth Performance over the Past Decades. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 B. CEMAC’s Procyclical Growth Performance—A Growth Accounting Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 C. Poverty and Inequality in CEMAC: A Multifaced Phenomenon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 D. Human Capital: An Untapped Potential. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 E. Key Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 3. Reforms and Policies to Enhance Inclusive Growth: A Three-Pillar Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Pro-inclusive Growth Reform Pillar 1. Governance of the Public Sector A. CEMAC Regional Standards for Budget Preparation and Execution.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 B. Strengthening PFM in the Area of Public Investment Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 C. The CEMAC Framework for Governance in the Extractive Sectors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 D. Strengthening Management and Acc