GIZ is supporting the Government of Burkina Faso to develop and apply a simulation model (PAMS, Poverty Assessment Macroeconomic Simulator), which helps in assessing the impact of macroeconomic developments on the income of various socio-economic groups. This instrument was applied in the framework of a PSIA. The findings formed the basis of the World Bank’s poverty assessment for Burkina Faso. It provided the World Bank and International Monetary Fund (IMF) with information on the possible consequences of restructuring the cotton sector. The simulations indicated that the decline in cotton prices on the world market would lead to a significant increase in poverty in Burkina Faso if no mitigation measures were taken. The Government, the World Bank and the IMF agreed that cotton prices should be subsidised on a temporary basis to allow gradual adaptation to the price shock and thereby guard against the expected increase in poverty. Currently PAMS is used regularly in Burkina Faso to update the national poverty reduction strategy. GIZ is also assisting Burkina Faso to develop a similar simulation model for the ‘South West’ pilot region to help in the formulation of regional poverty reduction strategies.

A PAMS regional training course in Senegal, Burkina Faso, Guinea, Mauritania and Benin and the dissemination of the model in Guinea made up one of the first measures to be supported from the German Trust Fund for Poverty and Social Analysis. These activities drew on GIZ’s extensive experience of creating macroeconomic models under its economic policy advisory services to West African governments.

Download

• Operationalising Pro-Poor Growth
  A Country Case Study on Burkina Faso
  en-burkinafaso-pro-poor-growth-2004.pdf, 0.68 MB (English)

Link

• Burkina Faso – Reducing Poverty through Sustained Equitable Growth – Poverty Assessment
  Some findings from using PAMS to analyse poverty and the link between growth and poverty reduction
  www-wds.worldbank.org/servlet/...