Mauritania : Restarting the Reform Program

Abstract

Even though Mauritania's real Gross Domestic Product (GDP) recorded an average growth rate of 4 percent between 2005 and 2009, the country's economic growth remains unstable and vulnerable to external shocks. At the same time, the distribution of profits through benefit sharing continues to be very unequal. Since Mauritania's independence in November 28, 1960, it has experienced several periods of political and institutional instability that have strongly hampered its economic and social development. The impact of the recent economic and financial crisis on global demand and particularly on the price of iron and copper in addition to the reduction in oil production highlight the urgent need to identify new income generating sectors other than the traditional exploitation of natural resources. After the presidential elections of July 2009, the government of Mauritania launched a program of reforms aimed at accelerating economic growth by improving the institutional framework to reduce the constraints on private sector development. To encourage the diversification of its production base, Mauritania must address a lack of capacity in the electricity sector. Another significant challenge for the country is upgrading transport infrastructure to improve national competitiveness, including opening up agricultural production areas. The mining sector can increase its contribution to the national economy in a framework of transparency and the good management of the environment while promoting mining exploitation that generates added value and jobs. Finally, although Mauritania is at the embryonic stage of its petroleum experience, the sector remains strategic.