BENIN: PRESIDENT YAYI DELIVERS STATE OF THE NATION ADDRESS

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TAGS: PGOV PREL PINR ECON EFIN PHUM BN
SUBJECT: BENIN: PRESIDENT YAYI DELIVERS STATE OF THE NATION ADDRESS


1. (U) SUMMARY: On December 30, 2008, President Yayi delivered his
third annual State of the Nation Address at the National Assembly in
Porto-Novo to National Assembly deputies, members of his government,
and the diplomatic corps, summarizing the achievements of his
government. He mentioned that in spite of the various global crises
in 2008, his government made significant progress towards the
prosperity of Benin through consolidation of democracy and
strengthening of the rule of law; reorganization of the public
administration; stabilization of the macroeconomic framework;
promotion of economic renewal; infrastructure development; human
capital development, and equal and sustainable local development.
President Yayi said that the visit of former President Bush to Benin
on February 16, 2008 was indicative of successful Beninese
diplomacy. The president stated that building and transforming Benin
into an emerging country is a breathtaking and permanent task.
Therefore, he called on every Beninese citizen to join hands in
order to tackle the current challenges that Benin faces. END
SUMMARY





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GoB's responses to the world crises
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2. (U) President Yayi highlighted the difficult environment in which
his government worked in 2008, recalling the oil, food and financial
crises that hit the world in 2008, and the impact they had on
Benin's economy. He said that his government in one hand took
measures linked to the present economic climate to mitigate the
exogenous impact of these crises and on the other initiated steps to
find lasting solutions to the crises. These measures included the
decision to eliminate taxes on a number of imported goods to control
domestic price increases. This represented 90 Billions CFA (roughly
180,000,000 USD) or over 16 percent of Benin's tax revenue.
President Yayi cited also the emergency plan to support food
security through increase and diversification into agricultural
products other than cotton. Nevertheless, President Yayi
acknowledged that the global financial crisis did not directly
impact Benin's economy because of its vigorous financial regulations
and the alertness of African regional financial institutions.

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Strengthening democracy and the rule of Law
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3. (U) President Yayi said that, at his request, the European
Commission conducted a feasibility study for the design of a
Permanent Computerized Voter Registry (LEPI) to ensure free and fair
elections in Benin. He announced that the implementation of the LEPI
project would require 16 Billions CFA (32,000,000 USD). The
president added that he had tasked a national committee with
examining the constitution and proposing amendments with a view to
consolidating democracy and the rule of law. The committee's
amendment proposals would be publicized before its submission to the
National Assembly for final approval. President Yayi highlighted the
creation in 2008 of the National Committee for Governance and the
High Commissioner for Concerted Governance. He described both
institutions as valuable tools for participatory governance and
sustainable democracy. Additionally, the Beninese Head of State
enumerated the measures taken by his government to improve the
security of Beninese citizens which had been threatened in 2008.





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Reorganizing the public administration
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4. (U) President Yayi told the audience that his government
attempted to depoliticize public administration. To that end, he
said that the government put in place a new competence-based policy
that allows the appointment of senior civil servants to technical
positions. The government also improved civil servants' working
condition and increased their salaries and other related allowances
to keep up with the cost of living. He said that the wage bill had
increased by 6 Billion CFA (12 million USD) in 2008.

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Improving and stabilizing the
macroeconomic framework
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5. (SBU) President Yayi said that the vitality of the economic
activity in Benin fuelled economic growth in spite of the effects
induced by the oil, food and financial crises. He revealed that
Benin recorded 5.1 percent growth rate in 2008, an increase from 4.6
percent in 2007. The government obtained this result thanks to the
increase of agricultural products other than cotton and
infrastructure development. However, President Yayi admitted that
strengthening of economic growth had occurred in an inflationary
climate led by food and oil prices. He said that Benin had an
inflation rate of 8.3 percent in 2008 while in 2007 it was only 1.3
percent. The president noted that Benin was among the rare member
countries of the West African Economic and Monetary Union (UEMOA)
which had very low external debts. He explained that Benin's
external debt amounted to 12 percent of GDP. President Yayi assured
the public that Benin's debt capacity remains intact, and that its
public revenue allows the government to meet its sovereign
commitments.

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Advancing economic renewal
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6. (U). President Yayi said that his government initiated structural
reforms to foster economic renewal. These reforms aimed to redefine
the role of the state; to improve the competitiveness of the economy
by providing adequate and low-cost inputs; to insure good management
of public funds, to improve economic governance and increase the
fight against corruption and to attract direct foreign investments.
He also outlined the transfer of production plants from the private
sector to the public sector noting the partial transfer of the
cotton parastatal SONAPRA's production tool through the creation of
the Company of Cotton Development (SODECO). The president stated
that the government was in the process of opening the
Telecommunication parastatal's capital to private investment.
President Yayi announced that the government engaged in the
modernization of Cotonou's port in order to improve its regional
competitiveness.

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Infrastructure development
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7. (U) President Yayi said that the government implemented an
ambitious infrastructure development policy through the restoration
and modernization of the Beninese road network. The government
expects to tar 306.5 kilometres of road out of the 6076 kilometres
that constitute the network (1821 kilometres of road are actually
tarred). The Beninese president confessed that much more needed to
be done to restore the whole network. In addition to this, he
highlighted the construction of the two highway flyovers in Cotonou,
which cost 15 billion CFA (30 million USD),and announced the
construction of an airport in Tourou, a village located in northern
Benin.

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Human capital development
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8. (U) President Yayi mentioned that the government built 6,000 new
classrooms throughout the country to meet the sudden rise in school
registration generated by his decision to make primary and secondary
school free. The government recruited more teachers to face the
increased enrolment. The president said that the government
micro-credit program for the poor, the National service, and the
National Fund for the Promotion of Business and youth unemployment
contributed to reducing unemployment.







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Ensuring an equal and
sustainable local development
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9. (U) The president mentioned that he had tasked a commission with
designating capital cities for six provinces that were formerly
administered out of neighboring provincial capitals to bring central
government closer to communities. As part of the implementation of
the Millennium Development Goals, President Yayi announced that the
government had started "the Millennium Villages project" for
identifying strategies to reduce poverty through infrastructure and
human capital development and program for women in 12 communities of

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Benin. He also said that the government developed a National
Decentralization Policy (PONADEC) to sustain local development.

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Advancing an efficient diplomacy
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10. (U) President Yayi contended that former President Bush's
February 2008 historic visit had demonstrated that Beninese
diplomacy was successful and geared towards development. The
president highlighted that the organization of the June 2008
Sahel-Saharan States Community Summit (CEN-SAD) in Cotonou was
another diplomatic success.

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Calling for unity and hard work
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11. (U) President Yayi recognized that much needed to be done to
reach economic prosperity. He has long stressed the need to join
forces and work hard in order to attain his vision to make Benin an
emerging country. Yet, he recognized that the achievement of such
objectives is a challenging and breathtaking exercise.


12. (SBU) COMMENT: The GoB has made laudable progress towards its
development goals in 2008. President Yayi was able to point to a
reasonable record of achievement in 2008, in spite of the tense
political climate that prevailed. It is notable that the
government's track record was consistent with President Yayi's
agenda for an emerging Benin, though much still needs to be done.
While President Yayi was hailed for his 2008 efforts by the general
public, members of the contentious opposition complained that
President Yayi was silent about the political turmoil the country
was experiencing. END COMMENT

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