Guinea : Development Policy Review

Guinea : Development Policy Review

Following a decade of relatively strong growth, Guinea's economic performance weakened beginning in 2000. During 1992-1999, growth averaged 4.4 percent a year as the Government implemented a program of economic reforms aimed at liberalizing it...

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Bibliographic Details
Main Author:	World Bank
Format:	Development Policy Review (DPR)
Language:	English en_US
Published:	Washington, DC 2012
Subjects:	ACCOUNTING ADEQUATE REGULATORY FRAMEWORK ALLOCATION ANNUAL RATE BANKING SECTOR BASELINE SCENARIO BASIC SERVICES BASIC SOCIAL SERVICES BRIBERY BRIBES BUDGET CYCLE BUDGET MANAGEMENT BUDGET OPERATIONS BUDGET OVERSIGHT BUDGET POLICIES BUDGET PREPARATION BUDGET SYSTEM BUDGETARY PROCESS BUSINESS ENVIRONMENT BUSINESS REGULATIONS CAPITAL ACCUMULATION CAPITAL SPENDING CAPITAL STOCK CASH BASIS CENTRAL BANK CIVIL SERVANTS CIVIL SERVICE CORRUPT COUNTRIES CORRUPTION CORRUPTION PERCEPTIONS DATA COLLECTION DEBT BURDEN DEBT MANAGEMENT DEBT RELIEF DEBT SERVICE DEBT SUSTAINABILITY DECENTRALIZATION DEFICIT REDUCTION DOMESTIC BORROWING DOMESTIC CREDIT DOMESTIC DEBT DOMESTIC INVESTMENT DOMESTIC MARKET DOMESTIC SAVINGS ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC REFORMS EDUCATION EXPENDITURES EFFICIENCY GAINS EFFICIENT ALLOCATION ELASTICITIES EX POST ASSESSMENT EXCHANGE RATE EXOGENOUS SHOCKS EXPENDITURE CONTROLS EXPENDITURE MANAGEMENT EXPENDITURE MANAGEMENT SYSTEM EXPENDITURE TRACKING EXTERNAL ARREARS EXTERNAL ASSISTANCE EXTERNAL BALANCE EXTERNAL DEBT EXTERNAL FINANCING FINANCIAL SECTOR FINANCIAL SERVICES FISCAL BALANCE FISCAL CONSOLIDATION FISCAL DEFICIT FISCAL DISCIPLINE FISCAL PERFORMANCE FISCAL POLICIES FISCAL POLICY FISCAL REVENUE FISCAL STRATEGY FOREIGN AID FOREIGN EXCHANGE GOVERNANCE INDICATORS GOVERNANCE ISSUES GOVERNMENT EXPENDITURES GOVERNMENT POLICY GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT GROSS FIXED CAPITAL FORMATION GROWTH POTENTIAL GROWTH RATE GROWTH RATES HEALTH CARE HEALTH CENTERS HEALTH EXPENDITURES HEALTH OUTCOMES HEALTH SECTOR HEALTH SERVICES HEALTH UNITS HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INFANT MORTALITY INFLATION INFLATION RATE INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INSTITUTIONAL FRAMEWORK INTEREST PAYMENTS INVESTMENT EXPENDITURES LIVING STANDARDS MACROECONOMIC ANALYSIS MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MARKET TRANSACTIONS MEDIUM-TERM EXPENDITURE MEDIUM-TERM EXPENDITURE FRAMEWORK MISMANAGEMENT MISTRUST MONETARY DISCIPLINE MONETARY POLICIES MONETARY POLICY MONETARY TERMS MONETARY UNION NATIONAL BUDGET
Online Access:	http://documents.worldbank.org/curated/en/2008/10/10114965/guinea-development-policy-review http://hdl.handle.net/10986/7871

Description
Summary:	Following a decade of relatively strong growth, Guinea's economic performance weakened beginning in 2000. During 1992-1999, growth averaged 4.4 percent a year as the Government implemented a program of economic reforms aimed at liberalizing its economy and improving the environment for private sector investment. With a tightening of financial policies over the 1990s, inflation reached single digits by the late 1990s and the fiscal deficit averaged just over 3 percent of Gross Domestic Product (GDP) in the second half of the 1990s. However, since 2000 growth slowed to an average of 2.8 percent a year and inflation increased to 39 by 2006. Guinea's worsening economic performance since 2000 reflects a weaker policy framework and exogenous shocks. Macroeconomic policies were relaxed, as fiscal policy was loosened and monetary policy became highly accommodative. Government revenues from the mining sector dropped, despite a recovery in the price of bauxite-Guinea's most important export. Also, a heightened level of regional insecurity and a resulting considerable influx of refugees in Guinea put pressure on government expenditures. As a result, the fiscal deficit rose to an average of 5 percent of GDP in 2000-2004. An accommodative monetary policy led to double digit inflation and a crowding out of credit to the private sector. A concomitant slowdown in the implementation of economic reforms, coupled with increased uncertainty in the political climate and deteriorating quality of public institutions, contributed to the slowdown in economic activity.