RESTRICTED

<Tf S @tIvsJReport No. AW-Z4a

2. _ J~jThis report was prepared for use within the Bank and its affiliated organizations.They do not accept responsibility for its accuracy or completeness. The report maynot be published nor moy it be quoted as representing their views.

INTERNATIONA.L BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

THE CURRENT .ECONOMIC

SITUATION AND PROSPECTS

OF

CHAD

April 9, 1971

Western Africa Departrnent

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CURRENCY EQUIVALENTS

Currency Unit: CFA franc (CFAF)

Before August 11, 1969:

US$1.00 = CFAF 246.85CFAF 1,000 = US$4.05

Since August 11, 1969:

US$1.00 = CFAF 277.71CFAF 1,000 - US$3.60

WEIGHTS AND MEASURES

1 Metric ton (t) = 2,205 lbs1 Kilogram (kg) = 2.2 lbs1 Kilometer (km) - 0.62 mile1 Meter (m) = 3.28 feet

This report was written by Mr. Gerrit M. de Wit

of the Bank's Permanent Mission in West Africa

(PMWA) and based on information collected by

an economic mission to Chad in March/April 1969

(Messrs. Byl, Grosjean, Haasjes, Pouliquen and

Wilkinson) and an updating mission by Mr. de Wit

in September 1970.

TABLE OF CONTENTS

Page Numb er

BASIC DATA

MAPS

SU14MARY AND CONCLUSIONS i -

I. INTRODUCTION ........... .................... 1

Geography and Population . ...... 1Soclo-Political Situation ............... 2International and Regional Relations ... 3

II. RECENT' ECONOMIC DEVELOPMENTS. 4

I]ncome and Expenditure .................. 4P'ublic Finance ....................... , 5Balance of Payments . .ilRankin,e ....._........... 14

Money and Prices .16

III. PRINCIPAL SECTORS OF Tl{E ECONOMY .17

Agriculture . .17Mining. 20

Manufacturing . .21Transport . .22P'ublic Utilities . .23

Tourism . .24

IV. PROSPECTS .25

STATISTCrrAl ADL^PlEnTV

This report was written by Mr. Gerrit M. de Wit of the Bank's PermanentMission in West Africa (PMWA) and based on information collected by aneconoinic mission to Cliad in MarcÎi/April 1969 (Messrs. Byl, Grosiean, Ulaasies.Pouliqu,en and Wilkinson) and an updating mission by Mr. de Wit in September1970.

BASIC DATA

Area 1,284,000 sq. km.

Political Status Independent Republic since August 11, 1960

Population (estimate 1970) 3.6 millionRate of growth Around 2.0 percent per year

Gross Domestic Produet (1967)s CFAF 59,600 millionPer capita CFAF 17,250 ($70)Growth rate, real terms (1960-69) About 2-3 percent per year

BudgetGovernment Finance:(CFAF billion) 1967 1968 1969 1970

Domestic revenue 10.2 9.5 11.2 11.8Current expenditure 10.2 10.8 12.8 12.9

Savings 0.0 -1.3 -1.6 -1.1Investment expenditure 0.7 1.2 1.1 0.5

Overall deficit -0.7 -2.5 -2.7 -1.6

Financed by:

French subsidies 0.4 0.5 0.3nlvav,inc,it on linuidities sndnaccumulation of arrears 0.3 2.0 2.4

Money and Credit: Chad is a member of the Banque Centrale des Etats del'A&frique IEnIu+e,.4iD et du flnG.w-t,,v (1GE4tAWfl

(GFAFbillion) nc.~ i6 Q-%Feb. 1970

a fl.flAneO supply 6.57 9 (.Domesti,- Credit 6.84 12.56Foreign assets (.+ 28 1z

Balance Of Payments:

(GFAF bil1 on) ' l o.o

Importe 11.0Tradg dtici+ -1.9

Services (net) -6.1Gurrev.n+.a ccou.an+ ,4e4 n.

4, -8.0N

Transfers 5.7Mopnetrml 1.2Monetary movements and errors 1.1

Commodity Concentration of Exports

Average1967-1969

Cotton 64% of exporteLivestock and mest 28%"

External Public Debt:(in mil:Lions of dollars) Including

Disbursed Undisburse(l

Total outstanding as of Dec.31,1969 33.4 50.00Total debt service (1969) 3.0Debt service ratio (Roods andservices) 4.5 percent

Bank Group Operations

IDA Credit (1968): US$ 4.1 million for highway maintenanceIDA Credit (1968)s US$ 1.8 million for education

IMF Postîon (,JulY 1970):

ouota: $ 10.0 millionDrawings: 3.8 '

| ` \ { \. L I~~~~~~~~~~ B Y A

< Ir \ . . ......... à 's

N`-'`'xt/ 1 G E{ R `r`

P~~~~~~~~~~~~ N E M A/ 0

,/'/'\\ (S X/~~~~~~~~G

FA5' g / 2300~~0

: + _ K /2 N E M 4 / ; ^^^To(N E 3;--`rS J~~~~~~~~~~~~60

a L<S_ sssOgUT j / s__s ) é 6~EST 100T lFeû

i~~~~~~~~ ~ Et, N"t ,A L/ AFRCA REPUBLICo

M"P 2

<i '0r

'. `- < -s U. A.R.LIBYA

ALGERIA ,

~~~~~~~~. ~ ~ ~ ~ ~ ~ \ !- 0

-j ,*~ *'* ~ Mo;, CHAD j S

71 .--e eF A hAyj-,,7

| \. _ S----._ <$ t t ~~~~~SUDAN

I //>x<- X /t X il 'YCtX I~- -- ioo ~NIGERIA t )x+ 0o

GO:ouO ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~O.d

Rurulu 201 \iu I /D ,./ C0NT8AL AFRICAN REPUBLIC

s<M{RoêN N N o b

0"F F GIJINFA4 Y PUA(W-P ATIC pF:PIIRI IC

Q' ToRI ALg _

LIBREVILL P ' - C A) R U !___ E___ Q 1 T O•L~L R IA LfR _ _j T ; o,r

_ _ _ _ _ ___ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ 0 0_ 1

îCON G 9

| OMoyumBv x tE CHADINTF?RNATIONAI TRANISPORr

POinI0 /,00H- NASA CQNNECTIONSi

<..o A I N A SSC-HEDULED AIR SERVICE

LABIN A1.________ NMAIN R0ADS (ALL WEATHER)

00001i _ . z MAIN ROADS (SEASONAL)

--.--4RAIL.ROADS

. -- - -__ RAILROAD UlIDER COISTRUCTION

ANGOLA - - - iATIOIIAL 30UNDARIES

| ; '0 00 Z O 200

DECEMBRER I '70 IEBRD 268.10R

SUMMARY AND CONCLUSIONS

i. Chad, independent since 1960, is a landlocked country; its maincenters of activity are 1,000-1,500 km from the sea. Some 90 percent ofthe population (3.6 million) derives a living from agriculture; 40 percentof nationa:l inrome is generated bv rron cultlvation or livestock raisingfor subsistence. Per capita GDP (including subsistence activities) isabout $70

ii. C.had has experienced a rather troubiedn political and erconomicevolution over recent years. The country has been torn by strife betweenthe population north of the Chari River, ahlch is Muslim, Ar -c,,ek nand largely devoted to seminomadic livestock keeping combined with somesubsistence farming, and tiat south of the river, which is largely an"imitwith different shades of Christian influence and devoted to sedentary agri-culture, .1m..4ciludt1 .ng the cultivatlion -4: fot tçn Fr ---- N . r1' Nrti resicnts

the political domination by the southern element, whose population has shownitself much readiuer to accepl m,todern educatiaon and t%hA c westertn culture. tAlCe

North resents the obligation to pay taxes on its livestock, the principalsource of JLLs incorme, as well as civic tLaxes, andu feels ;:hat l.t has beencomparatively neglected. In recent years it has been in a virtual stateof LrVUolt,w hiLlII miIiciLLes tsLb itseli 'Ln rebsL Lstalc LU LdA LUL. L CLLUVL ainU LU

livestock vaccination campaigns, in frequent raids and in a more or less

chronic stat ofL U rl 1I rLULt y. tilt condiUiL.I has~ se-çterely handuicapped

efforts to improve the livestock sector, which traditionally has accountedfor a signiricant part of the counury 's exports. In 1969 the Governmeneappealled for French assistance in reestablishing order. The objective ofthis joint nhadian--French effort was not simply miiitary, but also ta workout administrative, budgetary, and fiscal reforms which would meet the mnostserious grievances of the people in the northiern and eastern part or thecountry. Now with peace reestablished in large parts of the country, conti-nuous efforts wili be required to give the population a reai sense of parti-cipation iri the destinies of the country and in its future development.

iii. Another immediate obstacle to development is the Government 'stiglht finaricial situation, whieh is partly tihe resuit of considerable out-lays for security, but whiclh is also due to Chad's withdrawal from UDEAC'(Central Aifrican Customs and Economic Union), the decline in tax revenuefromn the livestock sector, and the lack of growth of its tax hasis causedby the slow expansion of thie economy. Since 1966, the Government;s currentaccount has been in deficit. To finance these deficits, the Government hasaccumulatel commercial and debt service arrears. Only small amounts ofpublic funcls are available for investment, because the Government's finan-cial position is strained to the point that it cannot even bear the increasein current expenditure that may result from development projects (educal:ion,road maintenance, etc.).

iv. Chad's future development will unfortunately continue to be handi-capped by its distance from foreign markets and sources of supply and it:sdependence on livestock and cotton for its export earnings. The potentialfor expansion of the livestock sector undoubtedl.y exists, but even if the

oreseut disturbances end. progress in realizinp; this uotential is likelv tobe slow. Watering points and disease eradication systeims hlave to be rebullt,t-le stock hasi t-o be iniproved and stockroutes and markets have to be develnnoped

v. Chadl has been extremnelv successfu1 in raisinv the nutpnut and im-

proving yields of cotton, and there is scope for a further substantial ex-nni,Hnn of nrodu-tilii Lve=n thotilh it rnav he a fcw vyiQrS hbFnrer the epu-ont-on-ally good crop of 1968-1969 can be surpassed. Increases in cotton productionwill also on]yv ili possIb1 wÇtli rnnlntindl forpic,n titfAne esnpr-1ciallly

because average f.o.b. African port prices are expected to decrease to lesst1:sn CFAF 127 per kilo in the next flve-ycar perind (CFAF 138 in 1970).

vl. ~ r,r~ fh4 P i llt- i Çfo n-r d7ivrsi f -yi n- aroctln are liite, eoluthog.h

they must be vigorously explored. The output of groundnuts is handicappedk-. i E 1 ..r _

4n, c..n {4;A A.. r -n rnlfi tAn r.., 1-,. 4nnro tn caA flSn

1. ,n JA e t 1., l-.n,.. . oi v low pri'es ;an rie produtio ca be inrase Ony modestJ bec-_ue

of the small domestic demand. Gum Arabic and tobacco cultivation has someol-Lte.ntialties l- . 1A pil'ot proJect has thatcatethat thecos.. thh-- el- ira

ted sugarcane production and processing is rather high,but there may be somepossibfilt4es a' further encouraging peasant production and.process-ing oeLU) I. Lt L .LCb LJI. LUI LA At- i L-LLt.LJLA A. Q

5.A.11

5FL-U~~LL L jJt AI..L. iL/IL ~IILL -. L ~OJ I r JI

cane. Pilot investigations are also underway for the purpose of determ$ningthe or. deepng some . iectre of l A<and1>F fo di {versifi; edLII C tL Ca., l k> Lt 1 Ly t/A tA VC 1-1 j/A 115 OtIhAL- VV'- \/k>S' 11L- LAIt CA V LJI Â.CLL. VLt/ t/t V O . A. *çU

and intensive crop production (wlheat, vegetables) under irrigation in theL Aake t-t-au pol'er t*T-.e cost of 'evelopmênent, however, is high, and addi=tional work is neecled on stiitablc cropping patterns and on tle problem ofsa'Llrinty.

- 1 4 4~ 'l C _ .-

V1Li. -ur r oeien' opportun'tes frsbiiatidsravI J.iere ardLe rio evi IUAI UppU LUL LtIC~ t UL * tbLLtLl .LL.aLL .L&U~L a

development in thie near future,but it may be possible to establish someimiLport substitut Lon p.Lants andu 'Later on f'oodu processi ng iLnd 'ustriLes. TLrans-portation needs improvement, in particular the access routes to the sea.

uunlojuli'LcatioLns requir extensio,.. SociaL L . LtiinLrastLUULULct a.Lbu neeUd expali-

sion, especially education, water supply, sewerage and health care.

viii. In addition to peace and financial reforms there are some otherprerequisites for sustained economic àevelopment. First, tne invoivementof government staff (other than technical assistance experts) in the prep-aration and execution of projects is very low. Strong efforts should bemade to prepare Chadian nationals to assume these responsibilities asrapidiy as possible. Secondiy, Chad's iand-iocked position requires aspecial relationship with neighboring countries. It may be beneficial totry to renegotiate trade and economic agreements based on long-term objec-tives. Thirdly, the external payments position has been gradually deter-iorating, to some extent as a resuit of factors beyond the country s con-trol (worsening of the terms of trade). Because of the financial arrange-ments with France and the other .BCEAEC countries, this is unlikely to createserious problems in the short run but eventually this trend will have tobe reversed. Under present conditions, prospects for an improvement of thecurrent account position are not good. Exports (mainly cotton) can onlyslowly be increased, and efforts towards improvement in the pay'ments posi-tion would have to concentrate on curtailing imports, possibly by renewed

- iii -

consideration of import substitution opportunities. With the restorationof peace, possibilities to increase exports (initially live cattle and lateron possibly meat and meat products) could improve considerably. Neverthe-less, even under the best of circumstances a considerable net inflow offinancial resources will be needed to maintain balance of payments eqailib-rium.

ix. The Government is preparing a development plan for 1971-75. Earlydrafts envisage investments of CFAF 10 billion ($36 million) per year, sub-stantially higher than actual investments under the 1966-1970 plan (CFAF4 billion or $14 million per year). blost projects are in an early stage ofpreparation and Lt is therefore unlikely that the planned investment Levelcould be attained, even if resources were available. If conditions condu-cive to development can be established, the absorptive capacity of thecountry should gradually increase due to new investment possibilities inlivestock and related ventures and because public funds to be used in con-junction with foreign assistance should become available. In case eventsdevelop favorably, it might be possible to usefully invest the annual plantarget ainount towards the mid-seventies. For the five-year period 1971-75,total investments will therefore probably not exceed CFAF 30-35 billion($108-1215 million). Only a very small part of these investments could befinanced by domestic private resources.

x. The Government will for some time not be able to contribute totlhe cost of development. Even with improved tax collection and moreaustere current expenditure policies, the public sector will probablyshow dissavinge, at least during the next two or three years and poss:L-bly longer. Since 1968 government current budget deficits have been ofthie order of CFAF 1.3 billion. Therefore; the Government will most Dro-bably also need external assistance to finance current deficits, includingthe liqu:Ldation of arrears. Under the circumstances; any government con-tribution to the cost of development projects will increase the need forassistanc eto cover t'irrP-nt- de-ficit-s,i- 8n that- on a net basis publir ini-vestments will have to be entirely financed by external resources. Tlere-fore; foreign donors should be prenared to finance a high nronortion (inmany cases close to 100 percent) of project costs and foreign aid will needto cover a large nart of local cost exnenditure. Aksuming a gradual Ln-crease in investments to thle plan level by 1975 total external financLalresourres: (Inclui±ng debt s3orvreior f nFAF h-7 hill4oi nn 2-2S millinn) r) -quired at present: prices would amount to about CFAF 36-42 billion ($130-151million) during 1971-75 plus whatever will be d to finanrîce goernmentcurrent account cleficits. At tlhese levels, external aid would be aboutdlohle t-he jamu,nt reppf in rpt-.nr yearQ hlit- at $7-R cata- nper eair

the amount is in line with aid obtained by other francophone countries inWest Afric-a. Tn aAeit-ion, Mha will conti4nue to-e needA c 4onidrab 1 thrnica1

assistance.

I. INTRODUCTION

Geoeranhv and Ponulation

1. Chad is the lareest land-locked countrv in Africa- It ocrupiesan area of 1,284,000 km2 (about 500,000 square miles). The northern halfnf the .n_untry is 1arge1v desert and doeq not nermit mulI pconomnir activit-vapart from seasonal livestock grazing. The area south of the Chari River,as well aq rle Lake Chad Porldeirq havp suitable s1s and uqiff-ipint rainfall

for agriculture, and there almost all of the country's cotton and most ofts subslstencec rops are growJn- ini horawon 14iO the wnbh 4 an zone where

climatic conditions allow some subsistence agriculture and livestock raisingbyi aaset-1t,l farmers and cemi-nnmnl.ic llvestock herdr.

2. r>ChaA borders£a on Nigeria C-amernoon G~nnt-ra1 Afric-an Repbi,SdnLibya and Niger. Its borders with the last three countries are largely in-accessible du fl.o ir emo A t te. t O4 s and .tAo _terain sJJer e A4. o..e 1 Â 4 A / __

foreign traffic is almost exclusively directed towards the south or south-west. lts main centers of arctivity are 1,00=10 fromn the sea.

The C -ari and Logone rivers drain most of Chad, as well as partsof the Central African Republic and Cameroon. Because of the seasonalityof rair.fall and rapid surlace draiLnage, tihese r'Lvers Llave a L'Lgh pea LoUw,causing extensive annual floods in the southern half of the country duringfour months per year. This severely disrupts transportation, and airtransport is used to maintain a minimum level of commercial and administra-tive contact between isolated population centers in tne country.

4. Population is estimateci at 3.6 million, of wticii aDout haif ilvessouth of the Chari River. Ninety percent live in rural areas; the majorcities are Fort Lamy (150,000), Fort Archambault (37,000), moundou (34,00j)and Abeche (25,500). Population density decreases rapidly to the north,and the northiern half of the country accounts for oniy 2-3 percent of thepopulation. Population growth in tiue south-west is estimated at 2 - 2.5percent per year. Tne rate or growtn in otner parts is probabiy much iowerbecause of harsher living conditions, lack of medical services, and higherage at marriage. It is therefore estimated that on average tile populationis growing at approximately 1.5 percent per year. The Government has nmadeno efforts so far to curtail population growth and in viewi of the stillprimitive health administration it is unlikely that effective action wouldbe feasible in the near future.

5. By far thie larger part (around 90 percent) of the populationderives a living from agriculture. In addition, there are 10,000 civilservants, 6,000 military personnel, and 10,000 employees of private andpublic enterprises. Furthermore, there are craftsmen, domestic servantsand laborers in a variety of other occupations; their number may tentativelybe estimated at 25,000.

- 2 -

(. Per capita income (including subsistence cuitivation) is estimatedat CFAF 17,500 ($ 70) per year. Other indications of the standard of livingcan be derived from tne sociai-economic survey, whlichl was held in the fivesouthern prefectures during 1964 and 1965. According to the survey annualper capita expeniditure and consumption of subsistence crops (valued atmarket prices) was as follows:

Cash SubsistenceExpenditure Consumption Total

Rural areas CFAF 4,620 CFAF 8,900 CFAF 13,520 ($ 55)

Fort Archambault CFAF 31,995 CFAF 2,885 CFAF 34,880 ($141)

Moundou CFAF 22,990 CFAF 3,970 CFAF 26,960 ($109)

These figures show a large discrepancy between urban and rural incomes anda very high proportion of subsistence consumption lin rural areas. Nocomparable data are available for other parts of the country but it isgenerally assumed that the standard of living there (with the exception ofFort Lamy) is lower thlan in the areas included in the survey and that sub-sistence consumption is also very important.

7. Minimum wages are fixed at CFAF 26 per hour in agriculture and atCFAF 30 per hour in other occupations. In inclustry, however, skilled labor-ers may earn CFAF 150 ($ 0.54) per hour. Civil service salaries start atabout CFAF 10,000 ($ 36) per month. The average salary of civil servantsamounted to CFAF 22,820 ($ 82) per monti lin 1969. In addition civil servantsrecelive family allowances.

Socio-Political Situation

8. Tle Chari River constitutes an important dividing line. Thepopulation south of the river consists mainly of animistic or cliristianizednegroes, the leaders of which have received a western education. They aresettled subsistence farmers or they grow cotton as a cash crop. North ofthe river, the population also has negroid features, but Arab traditions,and it adheres to Islam. They raise livestock and some (about 20 percent)live a nomadic existence. Under French rule the northern populationnroved less receptive to French education and as a result, politicalpower under the French passed increasingly to people from the south. Atindpnpnepnrp - in 1960, the southern-controlled Chad Progresslive Partv

came to power and its leader, Francois Tombalbaye, became the first Presi-dent. HPe was re-elected for a seven-vpyr term in 1969.

9. The ponpuaio-nn of tilp NJorth rPesenft ip th omint-ion of t-he Chntii;in

administration and politics by Southerners. Government efforts to includere, -rri,a., of the northern a into pubi fe ha brne sore fri-

but they have been hampered considerably by the scarcity of qualified candi--dates. A a result, the Nofrehrners bave often co,-npain--led -abou.-1 t lack of

concern for their problems, while having to bear the burden of an inadequate

-3-

tax system. Excesses of some local tax officials have further contributedto the unrest of recent years, which manifested itself in resistance cotax collection arid to livestock vaccination campaigns, and in frequenc:raids on military and non-military transports.

10. In 1969 the Government appealed - within the framework of aglree-ments signed in 1960 - for French assistance in re-establishing order. Itwas soon realizecl, however, that military assistance alone would not hringa lasting solution to thie problem. The joint Chadian-French effort wastherefore expanded to include administrative, budgetary and fiscal reforms,which were expected to alleviate the serious grievances of the people inthe North and East. In this connection, advice was also requested fromthe International. Monetary Fund (IMF). The Government has been successfulin restoring security in major parts of the country tlhrouglh military action,and more recently efforts have been directed more at securing the non--mill-tary part: of the program,through political negotiations with the leadersof some of tlhe dissident groups.

International and Re!ional Relations

11. Since independence Clad has maintained close relations with France.which provides substantial financial and technical assistance. It partici-nates with CAR- Cameroon- Congo (fi) and Gabon in the Banoue Centrale clesEtats de l'Afrique Equatoriale et du Cameroun (BCEAEC), which in turn has amonetarv nrranepmPnnr with Franre (sep npraçgranh 38)- ChGd'g relxtion withFrance has enabled it to become an associated member of the EEC, which alsonrovuides asisrtncrp throglih the~ Euirnnopean flvel enn t Funn d (FED)n

12. ahad has participated in var1

'nin regoinal orogni-zatinns Tcgethier

witih Congo (B) and CAR, it founded tlhe Equatorial Customs Union (UDE), which

Economic Union (UDIAC). In April 1968, Chad and the Central African Republic(CAR) annou,a,nce;lJ tIheir intention to wlthdraw fromr. l.DEAC, effective Janu-ay 1,1969, to form the Union of Central African States (UEAC) with Congo (Kinshasa).H!owever, before the end of 1968 CAR decided to withdraw from UEAC and remaina member of UDEAC. Clad and Congo (K) have continued their alliance despitethe fact that the withdrawal of CAR left them without linking union territory.ThIe coordinated economic policies provided for the UEAC treaty, have rLot yetbamereon) of t Ça- s C i n -ch i -.s enae An t- MCameroon) of the Chad Basin Commission whichi is engaged in the developmentoF the Lak ffladbai

- 4 -

II. RECENT ECONOMIC DEVELOPMENTS

Income and Expenditure

13. No comprehensive national accounts are available. The mostrecent statistics are tentative estimates for 1967 based on a variety ofeconomic indicators (see table 2.1). These place per capita GDP in 1967at around CFAF 17,500 (~ 70). These estimates include production forsubsistence and barter, which accounts for roughly 40 percent of GDP. CFAF58.9 million of GDP was used for private and public consumption leavingCFAF 0.9 million for domestic savings. On balance, investments (amountingto CFAF 7.2 billion) were therefore almost entirely financed by foreignassistance.

14. It is difficult to assess the growth of the economy. In thesubsistence economy the standard of living seems to have neither increasednor decreased. However, the market economy has grown both in terms ofoutput and with respect to the number of participants. Cotton productionhas increased by 10 percent per year during tiue last decade. The outputof the small industrial sector has also increased (see table 2.3); growthinvolved both cotton ginning and some other manufacturing. The transportsector has expanded since 1962 bv 5 percent annuallv, as a result of thegrowth of cotton volumes as well as the increased requirements of themarket economv. The livestock sector. on the other hand. has probably notgrown much since 1960. On the whole there is no doubt that the market econ-oiny has expanded, but it is not possible to quantify the rate of growth.Neither is it possible to determine the increase in the number of partici-pants in the market economv. Considering the stabilitv of the subsistenceand livestock sectors, real growth of GDP miglit tentatively be estimated atabout 2-3 nprcent per vpar durlng the last derade This would imnlv a growthof roughly 2.5 - 4.0 percent of activities other than subsistence agricultureand AnimAl husbandry- Suich a rate of grnwth wîou,il sepem to hb rnnqiRtent

with the development of money supply which has not expanded up to 1967 (seeparagraph LA) The Government is preparnng a new national incnne suFrYey,

which may provide better insight in the size and composition of the economy.e studyfwill probably not be completed before 1971.

15. Recenty, the country has experienced the _adverse effects ofunfavorable weather: the 1970 cotton crop declined by 16 percent. The1 96 °a cottL t-on crop (14°00 If otr.s )'J L.OJt w as excep4t.j ion ally go od and tl;erefore i.t would have been difficult to attain this volume so shortly afterwards.evertheless, t[ihe 1970fL cotton output i (11,000 tons L LaL bêlVw thê

trend in cotton production; about 135,000 tons would have been an aver-age crop. Tne shortfall in cotton output is aflecLing expurts, Laxrevenue and domestic demand. As a result of the devaluation of theFrench and CFA francs, import prices increased by 12 percent. Export

prices alsotincreased; f.o.b. nottonn nrirce rncs frnm CFA'F 132 in 196'1to CFAF 138 in 1970, an increase of 4.5 percent; the domestic price effectof devalui 4ation W.1S offset by m decline in eotton prices on the world mnarket.

16. A.s a result of the drop in cotton production arnd the adverseprice trtends, per capita income in 1970 is probably about the same as in

0 r-- fc471 N. 49ç_1af" -lrn 1-1-eF 10-7n plan-n seso wa 41nsu.{r c4Aeit* ov \y Y'~ .@ *W .LCa tw"-SL .LL Ltl -*- J-; S V. .F.fl L..çU*6

O Oùa;:,L, WOC .LflO LS j.. s,t..LL

and this year's crop will be small again.

Public Finance

17. The Government's financial position has deteriorated after 1967(see table 5.1). U t..t then, current expenUitLure about equalleUd dommesticrevenue, but subsequently domestic revenue ceased to increase (see para-grapih 19 WLI±I.Ue currer.t expendU Lture cont'inuUed tO grow. UUCneUquenIIly, pub-

lic savings, which had been almost absent in the early sixties, becamestrangly negative in 1968 and following years. Taking investment expendi-tures into account, total government expenditure has traditionally ex-ceeded domestic revenue. Until 1964 the overall deficit was amply coveredby French subsidies to the budget and by drawing on cash reserves acculmulatedfrom the previous budget surpluses. Afrter 1964 these sources were no long-er sufficient to finance the shortfall of domestic revenue and to meet thedifference the Government had to draw on a variety of treasury liquidities.The sharp increase in excess expenditure over domestic revenue plus Frenchsubsidies in 1968 and 1969 exhausted (except for a working balance) theavailable treasury balances. It forced the Government to borrow from thecivil service retirement fund, and to draw increasingly on Central Banikcredits. Moreover, the Government has had to postpone payment forsupplies; the commercial arrears thus accumulated amounted as of August31, 1970 to CFAF 2,004 million. Most of these were in arrear for lessthan 8 months. The table below summarizes budgetary developments (billionsof CFA francs):

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Budget1964 1965 1966 1967 1968 1969 1970

Current expenditure -6.6 -7.8 -9.8 -10.2 -10A8 -12.8 -12.9Domestic revenue 6.6 8.0 9.6 10.2 9.5 11.2 11.8Savings 0.0 0.2 -0.2 0.0 - 1.3 - 1.6 - 1.1

Investment expenditure 0.9 0.8 0.6 0.7 1.2 1.1 0.5

Overall deficit -0.9 -0.6 -0.8 -0.7 - 2.5 - 2.7 - 1.6

Financed by:

French subsidies 0.6 0.3 0.4 0.4 0.5 0.3 -Drazinc, on re-'rvefund 0 0n1 f _ _- -

Drawing on pension fund - - - - 0.3

CB credits, changes int.reasury 1liquiditi.ez, anA

the accumulation of commer-cia l J.&ç, . V,. a re. -rsJ V . *. ,

Source: Ministère de l'Economie, des Finances et des Transports

18. The budget for 1970 provides for an overall deficit of CFAF 1,640million. To curtail the deficit, the Government has negotiated tne defer-ment beyond 1971 of debt service on supplier's credits totalling almiostCEAF 700 million. As a resuit, the actual deficit is likely to be of theorder of CFAF 1,000 million. The authorities expect to receive Frenchbudget support amnounting to CFAF 1,700 million. If this ïs received thedifference will be used tc liquidate comn:ercial arrears. In addition, theGovernment has requested an advance from the Frenclh treasury.

19. The causes of budgetary difficulties lie primarily on the revenueside. First, revenue has not yet recovered from the consequences of Chad'swithdrawal from lDEAC. Although the Government has been resolute in raisingimport duties to compensate for the loss of payrents from the solidarityfund and consumption taxes, 1/ it has been only partly successful. The sum

1/ The UDEAC Solidarity Fund was established to compensate island statesLor the fiscal advantages derLved by the coasta l coun-tries f'rom Lrnportduties on goods entering the UDEAC area. Contributions to the Fund arefixed annually by tihe heads of the member states. Chad received 65percent of the proceeds and CAR 35 percent. The consumption tax wasimposed on industrial products of the UDEAC area and the receipts weredistributed to the mer-bers in proportion to thleir consumption. Afterits withdramwal from UDEAC, Chad has increased the import levies ontlhese products in order to make up for the loss in revenue.

of import duties, consumption taxes and payments from the solidarity fundaxnounted to CFAr 5,411 million ini i oi whil.e in 1969 u-nport duL±es p.lus

consumption taxes broùght in CFAF 4,933 million. Chad still claims CFAF1,500 million from its former UDEAC partners for payments due to ït.

20. Secondly, revenue from the livestock sector has been going downas a result of large scale tax evasion. Revenue from livestock head taxesreached their peak in 1966 with CFAF 387 million, out of CFAF 760 millionof assessments sent out. Revenue from livestock head taxes in 1969 amountedto CFAF 147 million out of CFAF 411 million of assessments. Livestock headtaxes are payable per animal and in 1970 were as follows:

bovines CFAF 170

horser " 300

donkeys " 50

camels " 300

Roats and sheep " 30

rurthermore, livestock traders have to pay a variety of market ana exportduties, as well as charges for lhealth services. For animals traded domesti-cally these amount to CFAF 300-5û per head, equivaient to about 3-5 percentof market value. For exported animals thev amount to CFAF 1,100-1,600 perhead, equivaient to 14-17 percent ot market value. While these taxes aremostly paid by traders and not by the herdsman, tlhey are ultimately reflectedin the price the latter may expect to receive.

21. The question of livestock taxation occupies an important placein the conflict between northern and southern population groups. In sonerespects there seems to be scope for a revision of livestock taxation, namely:

1. Livestock head taxes are capital taxes. A comparable taxdoes not exist in other sectors of agriculture. This hasled to a feeling of inequitable treatment of livestockowners which is strengthened by malpractices that occurat collection at the local level. It is sometimes arguedthat livestock owners might be more receptive to payingsome kind of production tax.

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2. Livestock tax rates may be too Iiigh. The total contributionof the llvest^ock Qector to publif finance in 1966 wa

as follows: 1/

Livestock head taxes CFAF 387 million

Market levies 18

Muncipal. taxes " 3 "

Donmestic inspection taxes 32

Export taxes (live animals) " 120

Export taxes (meat) " 55 "

Other export taxes " 7

Licensing fees for traders " 9

Total CFAF 631 million

In the same year the contribution of the cotton sector wasaDout CFAF 90 million (average 1965/66 and 1966/67; see tableparagraph 23). Although no comprehensive estimates of valueadded in the two sectors exist, a rough government calculationindicates that the cotton sector has a somewhat higher netoutput than the livestock sector. (1966: CFAF 3.2 billionas compared with CFAF 2.5 billion). Since 1966 the contri-bution of the cotton sector has gone up and that of the live-stock sector has decreased, so that the former now probablycontributes more than the latter. However, this is only due topoor collection of the livestock head tax since rates have notbeen decreased. If all livestock head taxes had been paid in1969, revenue from this source alone would have been CFAF 1,064million, according to estimates of the taxable herd. Tlis isconsiderably more than the cotton sector may be expected tocontribute for many years.

22. Thus, tax reforms are necessary with respect to the basis oftaxation, rates and collection. Nevertheless, any tax revision should aimat increasing the actual total tax contribution of the livestocL. sector ascompared with its present level. This can be achieved by reducing the taxburden for the individual livestock farmer to a more equitable level andby elimination of malpractices.

j Based on data from: Exploitation Uu onepte; Bovin au Tchad, 1970;a joint study by the Government of Chad and FAC.

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9 O l:her nliiru-rs rif rpvpniie for Ihp Caunrnment have deve1lonpre rathier

well. Net contributions from the cotton sector consist of the balance ofcevxort taxes- -r-j-c aî,nrtr%ri n:nivmintc t-n frmra mnA I-tloe neeot rocill t of r-rmr%nl ,,~ær r -rr~~-rJ--- - - -- * -- ̂ rfinancial arrangements between the cotton marketing organization (COTONFIRAN),the price stabilization fund (CSPC), theçGvernment, and FED (see paragraph 5Abstracting from foreign subsidies, the. contributions of the cotton sector toth.e Lbug vt have .f tuate ttt idfely, but^- t- he wlel. -the.yhavedeveloped t-

isfactorily. They rose from an average of CFAF 155 million per year dur:Lng1964-1967 t-o CFVAF 506 ...llion per year during 1967-1970.

24. The main other t.axsc tare income taxes an h.ead txes. Incometaxes have Lncreased from CFAF 605 million in 1963 to CFAF 1,704 in 1969,representLing a growth rate of almoste '9 percent- per year. Collections ahigh (1969: 95 percent of assessments). Due to depressed economic conditions

.8 ~ ~ ~~~~~1.1- in-Ir% . fLIofLIreUaULiLncomi-e tax revenue mray f'a'lli so.mte-whta;ti 1970 I; I n spiLte ofL th'e refusal OL

some people in northern areas to pay head taxes, revenue from this sourcehas also in,zreased satisfactorily. In 1969, out of assessments totallingCFAF 1,117 million, CFAF 871 million (1968: 787 million) was collected.

25. hie main characteristic of Government expenditure is the highproportion of current outlays, wihich accounted in recent years ror over90 percent of total budgetary expenditures. Current expenditure hasaccounted for ail increase in total outiays since 1963. Current expendi-ture consists, for about 50 percent, of wages and salaries. These haveincreased by '- percent (equivalent ta 1 percent per year) during 1965-1969. Part of this is due to price rises which are estimated at 3.5percent per year during the same period. Recently, the Government hasdismissed 800 civil servants (out of about 10,000), who were beyondretirement age or wilo fuifilled their duties inadequately. According toa recent FAC/SEDES study (Essai d'Evaluation de l'Administration dans lesEtats Africains et Malagache et Elements du Prospective) Chads civilservice does not compare unfavorably regarding size and cost with otherFrench speaking African states.

26. In spite of the rebellion, budgeted expenditure for army andpolice,which grew suddenly in 1966, can no longer be held solely responsi-ble for the growth of current expenditure. Identifiable budget itemsrelated to security have developed as follows (millions of CFA francs):

-~ ~ ~16 196 196

Army: personnel 462 934

otlier 368 733

Garde Nationale: personnel 548 610

otiier 47 110

Surete Nationale: personnel 171 205

other 50 81

Total: personnel 1,1_1 1,749

otlher 465 924

Grand total 1,646 2 682 2,673

Source: Ministere de l'Economie, des Finances et des Transports

/1 Budget estimates wliich should fairly accuratelv reflect actual exnenqes.

Tlese figures show that between 1965 and 1969 increases in defense expendi-tures were at about the same rate as increases in total current expenditure.?fost budceted militarv exnenditures are made for nersonnel and for localprocurements. The expanded military operations have been largely conductedwi tli Frpnri- t-pchni ril and financriql assç-istancep -the siz of whii <li8 not

accurately known.

27. Investment expenditure financed through the budget has fluctuatedaround CFAF 65O million npr yar wS wthonit an ln.rlar trend (oee tble 5.2).

Ilese investments consist of a variety of small warks: construction of publicb1 14 i ri ,,c 4n.nrr,ovemnnt worksc or. mroads hr4 alno and , airports; Ç finar.cing

investmnent studies; execution of municipal projects such as street lightinganJ water sL.pply. T. .e Gover-n...- - - ma- accounts for only a

small part of public investments. In 1969, 85 percent of public investmentswere C ( 7t Lt Ly financel by foreign asslstance. Th remaining 1.5 percer.t

were financed by Governmnent funds, but these investments would not haveb-een possib7le withiout foreign assistance, in.ludi-ng French subsidies toUCI -USL>t L WiL L LIIU L LU ~~I<b,L L LIC tiIiULiÀ. r L tII ÀUUbt Â.

the budget.

28. During the first five-year plan period (1966-1970) total publicinvestinents of CFAF 47 billion were planned. High priorLty was gîven toinfrastructure and agriculture, but sizeable investments were also con-templated in tiue fields of education, heaith and social weifare, andindustry. Most investments were to be financed fiom foreign resources.

By the end of the second year, it became evident that the plan's targetswould not be reached. The objectives were therefore revised in July 1968and total development expenditure was reduced by 44 percent to CFAF 26billion. There was also a change in emphasis away from infrastructure infavor of directly productive investments.

29. Actual investments during the first plan period were almostCFAF 20,000 million (CFAF 4,000 million per year). The reasons for theshortfall are slow and sometimes inadequate project preparation, long delaysin negotiating and obtaining foreign aid, and deterioration of the securitysituation. Private investments during the planning period amounted to CFAF3,950 million (about CFAF 800 million per year). Public investments amountedto CFAF 15,500 million (CFAF 3,100 per year), of which almost 80 percentfinanced directly from foreign assistance. A breakdown of investments bypurpose and year is Riven in table 2.2.

Balance of Pavments

30. The balance ofDpayments has always shown a deficit on trade andon nearly all services, largely covered by foreign assistance grants andDrivate transfers, as well as, but to a lesser extent, bv caDital inflow.In 1969, the current account deficit amounted to CFAF 8,021 million, equi-valent to about 13 nercent of GDP (see table 3.1)- Comnrehensive balanceof payments statistics have only recently become available. However,chanses In foreign exchange reqerves show the lonp-term dcvelnnpmnt inexternal payments; they reveal a persistent deficit in the overall position-inrp 1965=

Net fnre-ign Net foreinexchange exchangereserves -reserves

Dec. 1963: CFAF 2.7 billion Dec. 1967: CFAF - 1.6 billionDec. 1964: " 2.8 " Dec. 1968: - 2.0 "Dec. 1965: " 2.6 " Dec. 1969: " - 2.9Dec. 1966: " 0.5 " Apr. 1970: - 1.9

Source: IFS

The imnprovement in t,he foreign exchlr.ne reserves in 1970 is the result ofthe addition of CFAF 461 million in Special Drawing Rights and the drawingof CFAF 1,0.51 m.illion of an DI\r credit f0r. th.e sam.e amount.

31. In the absence of historic balance of payments statistics it isnot possible to ,ietermine unequivocally the causes of the decline in re-serves TIt would seem. that an increase -In the trade Adefrci 4 aef-er 1965 wasa contributing factor. On the other hand foreign aid disbursements andp. rV Ltr nf L. OLmO aCL G a f ly pensiLVt1On ,tave also .ncr ceasu lmsLBÂ WVU_l seem5s

to imply that the balance on services has also deteriorated since 1965. Apr:i.nciLpalt . cause, of thI.Le [Lncrease tnLI UdefI[ci ts m,ay 'e a deterioration of the

terms of trade (see para 15). The foreign trade figures shown below shouldbe used with caution bccause trade W4ith Chçad's form.er UDEr,AC part-ners ilsinadequately taken into account prior to 1969 (millions of CFAF francs):

Foreign aid disbursements /1Exot tt .t..imports Trrade deficitLl a n ayIIL,eantsf.o.b. c.i.f.

1964 8,911 11,471 2,560 11,200

1965 9,136 11,311 2,175 11,800

1966 8,228 12,383 4,155 12,600

1967 8,522 14,994 6,472 14,600

1968 9,365 13,861 4,496 14,900

1969 9,960 14,400 4,440 15,900

/1 Including military assistance.

Tlie balance of payments position over 1970 has probably further deteriorated.Exports have falien as a resuit of the poor cotton crop, whiie the value otimports and most other expenditure items continued to increase as a result ofprice increases due to the August 1969 devaluation.

32. Exports consist for 64 percent of cotton and tor 28 percent otmeat and livestock. Cotton exports are mainly directed towards Europeand Japan. Nigeria, the Congos, and CAR purchase most meat and live animals(see tables 3.2 and 3.3). Approximately 40 percent of imports consist ofconsumer goods, 25 percent of intermediate products (mostly fuel) and 35percent of transportation equipment and other macihinery. Equipment, chem-icals and some foodstuffs are supplied by European countries, particularlyFrance. Fuel supplies are increasingly coming from Nigeria; the very highlevel of imports in 1969 presumably reflects the transport requirements ofthe large cotton crop.

33. There is a large deficit on services; in 1969 this amounted toCFAF 6,090 million or three times tlhe trade deficit (see table 3.1). Abouttwo-thirds of this consisted of transportation costs on imports equivalentto 30 percent of their cost in 1969. Income from capital includes inreceipts Chad's part of BCEAEC profits (1969: CFAF 170 million). Asexpenditure it lists interest on public debt (1969: CFAF 170 million) andinterest on private debt plus profit remittances, valued in 1969 at CFAF688 million. The latter are equivalent to about one percent of GDP.

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34. Net factor payments to abroad in 1969 amounted to CFAF 1,898million, equivalent to about 3 percent of GDP. About two-thirds of thisis attributable to substantial salary remittances by expatriate personnel.

35. Private transfers to Chad consïst mostly of pension paymentsby France (1969: CFAF 1,411 million) to former civil and military employees.These have been rising steadily. The figures on private capital flows,as given in the balan.e of payments, should be interpreted with caution.In addition to real capital movements, these include changes in accountswith headquarters and branches abroad of companies working in Chad. Asno clear breakdown of private investments is given, it is difficult toassess the importance of private foreign capital for investment. Somestandard of comparison can be derived from table 2.2, where total identifi-able private investments (both Chadian and foreign) are estimated at CFAF532 million in 1969.

36. Public transfers and capital flow represent contributions byFrance, the European Development Fund (FED) and the United Nations (seetable 3.4). Most of the foreign assistance is on a grant basis. Publicloan capital inflow in 1969 amounted to CFAF 417 million (4 percent ofpublic investments), but repayinents amounted to CFAF 579 million, resultingon balance in an outflow of public loan capital. The table 1/ belowsummarizes the structure of foreign assistance in 1969 (millions of CFAfrancs):

Development Technical Current TotalAssistance Assistance Assistance

France /1 546 2,134 1,085 3,765

FED 1,737 - 269 2,006

UN 85 100 341 526

Others 315 315 198 828

Total 2,683 2,549 1,893 7,125

Source: Ministere du Plan et de la Cooperation.

/1 Excluding pension payments and military expenditure.

1/ The data in this table are derived from foreign aid statistics whichwere com.piled independent of the balance of payme.ts.

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Technical assistance is valueci at cost to the donors. Current assistanceincludes budget s'ibsi(lies and the free provision of goods and services tomeet current costs. The structure of foreign assistance has not changedmuclh but the amount has increased somewhat. Assistance from FED hasincreased from CFAF 1.0 billion in 1966 to CFAF 2.0 billion in 1969.Statistics also indicate an increase in total French aid of CFAF 2.3 bil-lion since 1966, but presumably most of this is attributable to increasedmilitary expenditures.

37. The above figures show that, in 1969, 38 percent of foreignassistance was directed to development projects. About 36 percent consistedof tlue provision of technical assistance personnel, whlich in part has beenworking on development. Tle direct balance of payments impact of this typeof aid is diminished by the high levels of salary remittances by technicalassistance personnel which are roughly estimated at half of total technicalassistance. Budget subsidies and the provision of goods and services tomeet current expenditure constituted 27 percent of total aid.

B anking

38. Chad participates in a comnon central bank, the Banque Centraledes Etats de l'Afrique Equatoriale et du Cameroun (BCEAEC), together withCameroon, the Central African Republic, Congo (Birazzaville) and Gabon. TheBCEAEC has an account with the French treasury, through which all foreignexchange transactions of BCEAEC member countries are channelled. AlthoughChad has negative net foreign exclhange reserves, the pooled position ofBCEAEC member countries in this account has always been positive. Theaccount also provides unlimited overdraft facilities in French francs atlow or moderate interest rates, but the account has never been overdrawn.Monetary and credit policies (which may differ in accordance with theeconomic situation in member countries) are formulated by BCEAEC's Boardof Directors and implemented in each country by a national monetarycomnmittee. BCEAEC has the exclusive right of currency issue in the terri-tory of its members, for whichi it pays a fee to each Government.

39. The Drincipal instruments of credit policy are rediscountceilings, and, since January 1968, the minimum liquidity ratios whichcommercial banks have been renuired to maintain. Moreover, all requestsfor rediscounts need individual approval. Rediscount rates are low;dependin2 on the type of operation they vary from 3.5 to 5 percent. BCEAECexperiences in rediscount applications an overabundance of consunptionnriPntetdc1 cr1its-q and a shortage of those for nroduc'tive or develonment

purposes. Because of this, all requests for rediscounts arising from de-velopm.ent p-ro4ecpts are aproved~' an the~re 4 S resently no shortage of in-vestment credits of the type that can be handled by the commercial banks

large private projects (e.g. the sugar refinery), which are, however, fewandu subJect to confi,,.ation of theïr economi Justification. Finar.cing

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of nublic infrastructure is completelv bevond the canacitv of the financialinstitutions. While the Development Bank of Chad extends agriculturalcredits- thp fact that it has onlv one nffi{p (in FrTort Lamy) limits- it-s

accessibility to farmers.

40. BCEAEC can extend short-term credits (240 days) to the Governmentu- ta a maximum o 5 f 1 e- rceoPnt e- f privt e dep nuosi - ts- 1-f t-Il com m. e rc n i 1-b nks or

15 percent of the Government's tax revenue during the preceding fiscal year,wh.ichever is iar-er. BCEAPC -fclaeime on thein r-aernmnent hmae been risi.ngsteadily (May 1970: CFAF 2,840 million; see table 6.1). Although creditstço th Grve..M- "A-4- n i-o1 1 w.- t Fhin th quntit a rtive I 4f F4âGA14m 4f o- F F -ttV tn. J. V t. G L&LUt. SL t.., t &4 ... a W- J._z _fs. ..nt .a..a.A t J. v .1 &tIt.t a t,ct v k s tal.t yGposition has not always allowed repayment of the credits within 240 days.

41. Credit to the private sector (which has expanded gradually until1967) grew blJy !uB percent per year durJng 1967=1969. U-ilt late 1968, this

was primarily due to the increased demand for credit for commercial andspeclatve pur poses .. _e- .1 ._ UA g_ Ln £ in J1.ZtJt:U | LXVU iJUiIJwJ>C:7> 4- Lt - *IICVw ul R « Ls> VCAI IlCdD L: a .

November 1968 (see paragraph 37) this type of credit declined; during 1969th'ley fell by ab e L olu; CFAF 50 .iLLL±million to about CFrAr 6,0 mI ilon. Vil thile

other hand, the exceptionally large cotton crop of 1968/69 required largeandu extenU'UIU' CrediitS. P'riLce r'Lses resulting LrOm thle NioUVember I 1969 U,--

valuation also increased the need for credit. As a result total credLt totîe private sector continuLed to gU rLUW apLUy (see tabDlE! 6.). 1 fti Ler

February 1970, the restrictive monetary measures and subsequently the de-cline in economic activity foliowing the bad 1969/70 cotton crop caused afall in credit to the private sector.

42. There are three commercial banks in Chad with credits outstandingof CFAF 6,600 mi:lion; two are fully French owned and one is a joint ventureof the Chad Development Bank (51 percent) and a French commercial bank.The assets and liabilities of the commercial banks and the Chad DevelopmentBank are shown in table 6.1. The principal operations of the commerciLalbanks coinsist of short-term financing of the cotton crop through the specialconsortium of batiks set up for this purpose and of discounting commercialpaper. lintil noi the commercial banks have not participated in developmentinvestment financing. Under present conditions it is unlikely that theywill soon expand their role in this respect.

43. The Development Bank of Chad (BDT) has a share capital of CFAF420 million, subscribed by the BCEAEC (8 percent), the Caisse Centrale deCooperation Economique (CCCE) (33 percent), and the Government (58 percent).BDT has supplemented its financial resources primarily from deposits by theTreasury and public agencies, rediscounts and advances from the BCEAEC, andadvances (for up to 10 years) from the CCCE. Total resources amounted toCFAF 5,384 million in December 1969. Financing of the cotton crop is oneof BDT's main activities and it also provides small loans for agricull:ure,handicrafts, trade, the purchase of small equipment (furniture, householdappliances, bicyc:les and mopeds), automobiles and housing. Most of theseloans are consumer oriented. Loans outstanding as of December 31, 1969amounted to CFAF 4,971 million, of which 60 percent short-term. Interestrates vary between 5.0 and 7.5 percent.

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Money and Prices

44. Until 1967, money supply was virtually stable at around CFAF6,500 million (eqtuivalent to about 11 percent of (DP) in spite of pricerises that took place, and the expanslon of credit to the private sector.Largely tlhis was due to the sizeable net use of foreign exchange reserveswhich has occurred since the mid-sixtie3. In 1969 money supply expandedin response to tlhe exceptionaily large cotton crop of 1968/69 and thedevaluation of the CFA franc. Money supply reached its peak in February1970; subsequently it decreased again as a result of depressed economicconditions (see paragraphs 15 and 16). The development of money supply issummarized below (billions of CFA francs):

TotalCurrency Demand Money

Deposits Supply

Dec. 1963 4.66 1.87 6.531964 5.00 1.53 6.531965 4.94 1.65 6.591966 4.64 1.73 6.371967 4.15 2.36 6.51

" 1968 4.54 2.70 7.24

" 1969 4.91 2.69 7.60

Feb. 1970 5.98 3.02 9.00

Source: IFS

45. Prices have shown a persistent tendency to increase during thepast decade, but price rises have been particularly pronounced followingthe devaluation of the French and CFA francs and the revaluation of theGerman mark late 1969. The price index (based on 125 items representingEuropean consumption patterns in Fort Lamy) shows an average increase of 5percent per year from 1964 to 1969. Price rises occurred mainly in foodstuffs, transportation, health care and domestic services. Prices ofclothing and utilities did generally not increase. Price data on invest-ment goods are scarce. Some heavy inputs for construction works (cement,reinforcement steel, profiles) have not increased in price between 1962and 1969 and in some cases even showed price reduction as more efficientmeans of transportation became available. Following the devaluations andrevaluation of late 1969, the rise in import prices as of March 1970 amount-ed to 12 percent for French products and to over 13 percent for productsfrom elsewhere. This affects in particular capital formation as allinvestment inputs (except for manual labor) are imported.

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lII. fT~t'f PRNCPT SC'T'flf, ûF fln nt ECûNr.%tn

Agriculture

46. The agricultural sector consists of three main components: cottongrowing, livestock raising, and the cuitivation of subsistence crops. 1Teseactivities overlap. In addition some gum arabic is grown as a cash crop inthe north. Tnere is aiso some fishing in the rivers and Lake Chad.

47. Cotton is the principal cash crop; it is almost entirely exportedand accounted for 64 percent (average 1967/69) of exports. It is mainlygrown on smail farms, which have about 1.5 ha under cottol1. Approximately300,000 ha are cultivated, almost exclusively south of the Chari river(see table 7.2). Production i/ has rapidly increased during the past decade(over 8 percent per year), mostly as a result of improved yields; the areahas not increased much. The table below compares yearly production, areaand yields during 1959/60 - 1962/63 and 1966/67 - 1969/70; both periodsinclude two good crop years and two bad ones.

Average Average1959/60-1962/63 1966/67-1969/70

Production 69,700 tons 122,600 tons

Area under cultivation 296,600 ha 297,200 ha

Yield 235 kg/ha 413 kg/ha

48. The increase in production and yields is the result of a compaignto intensify cotton cultivation, which the Government has conducted withforeign financial and technical assistance. Under the campaign subsidizedfertilizers and/or pesticides are made available to farmers willing toadopt improved cultivation methods. The area covered by the program hasincreased from 1,680 ha in 1959 to 44,230 ha (15 percent of the cultivatedarea) in 1969/70. Under average wheather conditions yields of 900 kg/hacan presently be obtained in participating areas; in other areas yields ofabout 360 kg/lia can now be achieved.

49. The chief foreign promotor of the cotton productivity program isFED. FED has also provided price support subsidies for cotton. 2/ It ispossible that foreign assistance to the cotton sector will change in the

1/ See also paragraph 15 for recent developments.

2/ In addition FED lias provided assistance for the development of ctheragriculturai activities.

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near future. It is as yet uncertain to wliat extent tlis will involvechanges in the price support and productivitv programs. While thepossibilities for furtiher increases in cottoti procduction are good,ifprice projections of about CFAF 127 per kg. f.o.b. African port material-izes, these increases can only be rea]ized witlh unabated foreign assist-ance. Present Covernment plans envisage extension of the cultivated areato 322,000 ha in,1975/76 of which about one-tlhird covered by tlue producti-vity program. Yields should increase to 1,190 kg/ha in areas covered bythe program and to 370 kg/lha elsewhere. Total production will then amountto about 210,000 tons. The productivity program to achieve these targetswill require foreign assistance of about CFAF 9,400 million during 1971/72-1975/76 (CFAF 1,880 million or $6.8 million per year). Additional invest,ements will be needed in processing facilities and transportation equipment.

50. Processing and marketing are the monopoly of a private company,the Societe Cotonniere Franco-Tchadienne (COTONFRAN). Its operations aregoverned by financial agreements between the price stabilization fund, FEDand the Government. COTONFRAN pays the producer a guaranteed price ofCFAF 26 per kg. The Government levies an export tax of 15 percent of thef.o.b. price of cotton lint (about CFAF 17 per kg). If revenue from cottonsales is insufficient to cover COTONFRAN's cost (including a profit allow-ance); the stabilization fund pays tlhe difference. In turn, the pricestabilization fund is subsidized by FED. COTONFRAN's agreement expiredat the end of October 1970. The C-onresion ias heen extended for oneyear during which tlue organization of marketing and processing will bereviewed.

51A r.%vC.t-nt,« 'Thet ni mhn;ir tif nn,imnie lc i .cr-imnte^i Ant à - O0000 cnrt-tle

4,300,000 sheep and goats and smaller numbers of horses, donkeys, camels andpigs (see table 7.1). Livestock raisirg takes place mainly in the rcntralpart of the country (between the 12th and 15th parallel); in the south somelivestock is kept as draft ianmals. All milk and part of the meat (parti-cularly sheep and goats) is produced for subsistence.

52. Livestock statistics are insufficient to assess its developmentover time. Lt iLs generaLLy assumeU tat 'Ln recent years the hLerd as notgrown much, except perhaps witlh respect to sheep and goats. Exports ofl've animals and meat amounts to about CFAF ,000 million, equ'valent to28 percent of exports.

53. Cattleà and beef are the main livestock products traded. Liveanimais are expcFrted (on the hoof) to neighboring countries. Estimatesfor 1969 are as follows:

Nigeria 110,000 animals equivalent to 16,500 t

Cameroon 15,000 " " 2,250 t

CAR, and Congo (K) and (B) 5,000 700 t

Beef is also exported frozen (1969: 10,000 t, mainly to the Congos andGabon) and dried (1969: 1,190 t mainly to Nigeria). Exports of cattle and

- 19 -

beef have not increased systematically recently. I19 exports wereabout 36,000 t as against 30,000 t in the previous three years. The hl:igh-er level iOs due tJLo favorable weather conditions and the llalizatior.oconditions in Nigeria.

54. Domestic consumption of beef was about 26,000 tons in 1969 (aboutg per ___p__ta' '_E T_ 2, t ,J __ 1 nnn -__ _r -___. __ _1 __ -__. _ __

i r8 pL Ld~itL}J . 11 trLUUJ.LtLI, ^ ,JVUU LUViZ Ut gUUL dULU a11Uz> iitaL aLe cuUlljUlleaannually. Consumption in rural areas (which very often does not enter com-mercial channels) is estimated at 200 ,00û animals per year equivalent to20,000 tons. This comprises particularly aged, sick and wounded animals;it increases at the rate of popuilation growtn. UrDan consumption, estiinateaat about 49,000 animals per year, equivalent to about 6,200 tons, increasesby about 10 percent per year and is becoming an important outiet.

5.5. Cattie raising offers tihe greatest potential for development.Market prospects are excellent, in view of the normalization of conditionsin Nigeria, the rapid increase in beef consumption in other neighboringcountries and the emergence of a domestic market. The technical possibili-ties anci problems are aiso clear. The need is not so mucih to expand thelherd as to increase productivity. This is low at present. Average carcassweight of traded animals is 14U-150 kg. Average meat production per headof cattle is 13 kg 1/ per year. The reasons for this are high mortalityamong adult animals, particularly in dry periods; high mortality amongyoung animals (50 percent before adult age) because of parasitism, andmalnutrition (overconsumption of milk); as well as lowq fertility of cows.Unsettlecl conditions in areas whiere livestock is kept remains an obstacleto full scale development of tbe livestock sector. Because of this, thesizeable efforts for livestock clevelopmnent tlîat have been undertaken(particularly by FED) have not yet resulted in hiiher outpeut or improvedquality.

56. Tlie most effective way to assist the livestock sector is toincrease the available pasture by providing water. Thlis would also reduceloss of weight of cattle before they are marketed. Moreover, animal healthcare needls further improvenment and there is scope for extension of pro-duction facilities (ranches, slatiglhterlîouses, markets etc.). It may alsobe possible to raise livestock -in the south on the basis of cotton seedancl otlher agricultural by-products; possibilities in this respect have notyet Leeni studied. T'ne Mlinistry of Agriculture has proposecl a five-yeardevelopment plan for the livestock sector. Its main items are:

Procluction facil:Lties CFAF 1,693 million

Ilealth facilities " 1,975

Watering points an.d otherinfrastruct ure _" 1,369 3t

CFAF 5,037 million

1/ In ,ieveloped countries that is about 80 kg.

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57. Subsistence crops. Millet and sorglhum are tlhe principal subsistencecrops. G-roundnuts, rice an.d wheat are nalso grown for subsistenc. S...al.lquantities enter commercial channels. Production increases at about therate of population growth \(see table 71.1). Thr aepssbltistdevelop wheat in the Lake Chad polders, and rice in the south as commercialc o ps. _ 1U t e , t _ 40 --- A A _ O L.- - - - A-- L _. tI.t_

rice.

58. Other crops. Guin arabic is grown in the northeast. A large partof' -le crop jis so'Ld in SUian, wLiere prices are hi4gher. r.le '969/1S70 crop wasvery low due to unfavorable weather conditions (see table 7.1). There aregooud opportun.ities to increase production th'roughl intensification ofL th'e

tapping of wild trees (maximum 3,000 tons), the establishment of commercialplantations, and the iLUproveLment of iLts processing system. So.ue tobaccois also grown as a cash crop, but potentialities are limited by the sizeOL tLe domwestic market anu tLe neeu Lor a proport'LoL i of' 'Loreign tobacco inithe manufacture of cigarettes. A pilot project has indicated that the costof the irrigated sugarcane production and processing is rather high, butthere may be some possibilities of further encouraging peasant productionand process'ng of cane. Pilot irnvest'gations are also underway for thepurpose of determining the feasibility of developing some 60,000 hectaresof !and for diversified and intensive crop production (wheat, vegetables)under irrigation in the Lake Chad polders. The cost of development, how-ever, is high, and additionai work is needed on suitable cropping patternsand on the problem of salinity.

59. Fishing. About 100-110,000 tons of fish is caught yearly in theCnari River as well as in the Logone River and Lake Gnad. Vue latter twoare bordered by several nations and part of the catch is made by nationalsof the other riparians. Fishing in Lake Chad can be further increased.About half the catch is consumed fresh; the other half is smoked or driedfor domestic consumption or for export to Nigeria, Cameroon or CAR.

Mining

60. Natron, a low-grade salt found along Lake Chad, is the only mineralexploited. Almost all of the output is exported to the neighboring countriesin the form of slabs. Export earnings from natron amounted to CFAF 30 millionin 1969 or less than one percent of total exports. Production could be in-creased (by exploiting more deposits) if markets could be found.

61. The Government has permitted oil companies to prospect in the LakeChad area and the Chari River basin. These and other attempts to find oilor other minerals have been so far unsuccessful. Various minerals havebeen discovered in the north, but exploitation is unlikely on economicgrounds.

- 21 -

Manufa tu r ir,

62. export mto the de

of industry. It might be thought that, since Chad's sources of supply areallso far away, the country (by saving on transportation co.sts) shtould offer.good possibilities for the establishment of imnport substitution industries.LMTIle f11s 's I prIn -Il tr e 1--r are 1-re cn ta n- g fa to s.A uA*_ _ FML à i. ILt. IL L;I 1 L à.L LL XX . CL % aLC ;LLL U LL %. Li a LIL.LL 6 t QtItL O .

First, the small size and the dispersion of the domestic market will in mostcases only perm"it small capacitv plants . Seco-dly, tl;e overnent 's f inan-cial situation is particularly dependent on the collection of customs duties.Alt hough domestic 'ndu9utriLes shouldU eventually contr'bÙute as mL,cU UL MiîUre

to revenue then the import they replace, the tight budgetary situationrmiakes the Government reluctant to incur revenue losses by proriuoting Lnportsubstitution. Thirdly, there are few domestic raw materials, and savingof transportation costs on final products would be partly offset bytransportation charges on imported inputs.

63. The manufacturing sector as a result is very snmall. Only tenfirms have fixed investments of more than CFAF 250 million and employ morethan 100 people each. Of these, three have total sales above CFAF 500million annually.

64. Recent investments include a textile factory, the SocieteTextile du Tchad (STT), a slaughterhouse, a meat processing plant and asugar factory. 'iTT îs a joint venture ot the Governments ot Chad ( 15percent) and Cameroon (15 percent), and French (35 percent) and Germaan(35 percent) companies. Output has developed according to plan. Thefirm is exempt from all taxes on imports of rnaterials and products. Itcan purchase electric power at subsidized rates for a perlod of fiveyears. In return it pays a single tax of 5 percent on total sales.

65. The slaughterhouse and meat processing plant, established inFort Archambault on the cattle route to CAR, have not been successful..Total investments were CFAF 800 million, financed principally by suppLiers'credits End medium-term loans. Production began in October 1967. It worksfar below capacity because it has been unable to get an adequate supplyof cattle, due to the fact that it cannot offer competitive prices. Live-stock merchants, therefore, sell to the slaughterhouse only low-grade cattleunfit for the trek to Bangui. In contrast, private exporting firms operat-ing in Fort L,amy have few supply problems. They export meat by air usingthe efficient slaughterlhouse, operating at full capacity as a result cofincreased demand for beef from neighboring countries.

66. The sugar refinery was established in March 1965, but its pro-duction is insufficient to meet demand. Plans for a new sugar mill willbe included in the new plan. The Government attaches higli priority ta theproject for reasons of employment and import substitution.

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67. There are some smaller industries with less than 100 employees(rice and cocoa proressing nlants, nil mi1lls motor repair and bicyrr1assembly shops, brick factories, carpentry and metalworking shops, and asntne-grindcin nplnnt produring grqvpl for road Constrî,ct-ion' )- A cigarettefactory is the most important industry under construction. New industrialnroiPpf-C lint-jpr rPnniaPrlIt1nn inelilro a flouir mIl.l,a tire re-treadng pla:nt,a salt refinery, a glass bottle factory.

Transport

68. The inadequacy of the transport system is an obstacle 'to develop-ment The main requirements are:

(a)~ developmpent of access roeta the -ha to meet therequirements of the regions of Fort Lamy (capital),Moundo (cotton) aand Fort Ar b (1 tk

(b). allocation of adequate fun.ds for road maintena

(c) improvem.ent of seconda , roads in agrlcultural areas;

(d) s-tudy of the eosbliyt coordinate ir.te-1a

air and road transport for remote areas in ther.orthi andu east.

69. VIlarlous studies lave been catried out or -h ------ roulte9 to the

sea, which concluded that (i) a bridge over the Chari river at Fort LamyWOlU1U lla-e a favoraule irmpact on t'lie econo1ULy Of ULl a Lau uabUU l, %ÂÂ a

new road linking Moundou to Ngaoundere in Cameroon would be the most eco`no-mi-cal sea access rc'ute for the r'L-uLUduu region, especfrl±±y after the T s-

cameroon railway is completed in 1974; (iii) some sections of the FortLamy-Bangui nighway should be improved.

70. In 1968, IDA financed a highway maintenance project. Its impie-mentation is behind schedule because of delays in ordering equipment. Im-provement of the secondary road network in the cotton production areas isproceeding well with FED assistance.

71. Seasonal floods make roads in many areas impàssable for threemonths per year; in some regions road transportation is interrupted forsix months per year. Because of the high cost of all-wéather road con-struction and tlhe low volume of traffic, internal air transport in manycases appears to be an attractive alternative to road transport for bothpassengers and goods. This possibility has never been considered in detailand deserves serious study.

72. Considerable efforts have been made to reduce transport costs, boththrough road improvement and through better organization of the truckingindustry. Transport rates have been reduced from an average of CFAF 49 perton/km in 1965/66 to CFAF 41 per ton/km at present for cotton fiber, andfrom CFAF 15 to CFAF 11.50 per ton/km for seed cotton.

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Public Utilities

73. Telegraph and telephone services are publicly owned. At presentautomatic telephone exchanges are available in four cities. New equipmenthas recently been obtained under a CFAF 185 million suppliers' credit.Inter-city communications and regional links are based on a microwave system,which need improvement.

74. Electric power production and distribution was transferted inOctober 1968 from the privately-owned Societe Equatoriale d'EnergieElectrique (SEEE) to the Societe Tchadienne d'Energie Electrique (STEE).The new company will become entirely publicly-owned through a repurchaseof its share accorded as compensation to SEFE. STEE is also in charge ofwater supply and d:Lstribution in Fort Lamy, Abeche, Moundou and FortArchambault. Loads are low. Power is generated by diesel plants. FueLaccounts for two-thirds of the price, which varies between CFAF 23.5 -37.0 per kwh. Only six cities have electricity; installed capacityvaries fromn 12,125 kw in Fort Lamy to 70 kw in Adre. Production figuresfor the four major cities are given in the table below. Capacity inFort Lamy is being extended to 18,000 kw at a cost of CFAF 220 million.Under the Second Plan (1971-1975) the possibility of supplying electricityto six more cities will be studied.

75. Water is supplied to the same cities that have power supply. Allwater is drawn from wells. Water supply figures are given below:

Power generation (millions kwh) Water supply (1,000 cubic m.)1966 1967 1968 1969 1966 1967 1968 1969

Fort Lamy 22.0 21.4 24.1 28.5 2,345 2,694 2,876 3,301

Fort Archanibault - 2.5 4.4 6.8 94 180 230 256

Moundou 1.2 1.5 1.8 2.3 155 219 234 218

Abeche 0.4 0.4 0.4 0.4 87 15( 163 183

76. Fort Lamy has no sewerage system. There is a high incidence cflllness associated with inadequate sanitation. A preliminarv study has beenconducted by LNDP proposing a project in those parts of the city where thebeneficiaries can be expected to bear the cost of the works. There are nocost estimates for the proposed investment.

Education

77. Education is in an early stage of development in spite of con-siderable progresq made in tlhe 1960's. In 1968/69 enrollments in primaryschools were 179,000 or 33 percent of the age group 5-10 years (1959/60:

or 11 np-rcent)-; 21 nperrpnt- were girls (see table 8-2) Enrollments

- 24 -

in secondary schools of all kinds were about 10,000 equivalent to 2 percentof the age groups 11-17 years. There are many obstacles to the developmentof education. The main financial one is the Government's tight budgetarysituation which makes it impossible for current educational expenditureto grow much and which places a limit on the rate at which new facilitiescan be constructed. There are other obstacles, particularly in rural areas.Nutritional deficiencies, parasitic infestation and other health problemsdue to inadequate water supply and sanitation, language difficulties aswell as social problems (readaptation to rural life) do not create anenvironment conducive to education. All this reduces the effectivenessof the educational system. Drop-out rates are high as is the need for manypupils to repeat grades. It is said that if repetition of grades couldbe limited to once per pupil during primary education, the cost of educationwould be reduced by 20 percent.

78. Agricultural education can probably be usefully expanded. AnIDA financed agricultural college will be constructed in Fort Archambault.The Government is looking for funds to expand facilities at lower levelsto train technicians for animal husbandry and agriculture as well asextension workers and to provide basic instruction to farmers. Costsmight be tentatively estimated at around CFAF 350 million.

Tourism

79. Some 3,000 tourists visit Chad annually. Its main attraction isits unspoiled nature and wildlife in many areas. Similar attractions areoffered by various neighboring countries which have more elaborateaccomodation and transportation facilities. Growth of tourism is likelyto remain limited and expenditure for this purpose may have to be carefullyconsidered-

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IV. PROSPr.CTS

80. Chad has reached a decisive period on its way to development.

Depending on the course taken in tne next few years, the future may hoad

stagnation and continued economic problems, or the gradual emergence of the

country as a viable economic unit. Whethier the country will succeed islargely dependent on a settlement of the internal conflict which has prevailed

during the last four years, and on the Government;s determination to improvepublic finances.

81. Withi a return to political stability, long-terni prospects for

development hold some promise. There are good possibilities for the live-stock sector. Productivity (and thereby incomes) can be increased in mmny

ways, some of immediate applicability (provision of watering points, disease

eradication), others only practical after basic needs have been met (stock

improvement, development of stock routes). There are soaie areas of

livestoclc raising that have not yet been explored (industrial breedingon the basis of agricultural by-products in the south) or that might pro-fitably be expanded (ranching). There is scope for a reorganization ofmarketing and for an improvement of markets and local slauglhterhouses.Market prospects are good in view of the rapid increase in demand in neigh-boring countries. Under peaceful conditions, livestock raising might becomeone of the most dynaamic activities in the economy.

82. There are also opportunities of further expansion of cotton pro-duction through intensive use of fertilizers and pesticices and through

improved extension services. Experiences so far indicate tliat with a sinall

extension of the cultivated area, a production of 250,000 tons might be

reached by 1980 (previous record 1968/69: 149,000 tons). There is uncertain-

ty about future cotton prices; should prices decline to an uneconomic low

level, it would be difficult to find substitute commercial crops and a returnto subsistence cultivation could be expected. Expected gains from increasedproductivity, however, hold promise that further expansion of cotton pro-duction can be expected.

83. There are a few other possibilities to develop agriculture. Culti-vation of gum arabic, wheat, rice, groundnuts and possibly tobacco can befurther expanded. Plans are under consideration for the cultivation ofsugar cane in conlunction with the establishment of a sugar factory; theseplans need to be carefully reviewed since, on the basis of present infor-mation, production costs are expected to be very high.

84. Development opportunities for industrv are likely to be limited.at least in the near future, for reasons set forth in paragraph 62. Never-theless. it mav be possible to establish some import substitution industriesand later on possibly food processing plants.

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85. The development of production facilities must be supported byan expansion of infrastructure, in particular in transportation. Furtherimprovement of access routes to the sea would particularly benefit thecotton sector; it would also lower the price of heavy imports such as fueland construction materials. Internal connections can be improved by develop-ing air transportation. Coinmunications also require extension. Finally,there is a considerable need for improvements in education, and other socialinfrastructure such as water supply, sewera,e and health care.

86. Sustained development, however, will not be possible without greaterGovernment effort. First, this concerns its financial contribution. Thebudgetary position does not allow at present a significant contribution tothe financing of development. It will be difficult to reduce current expenditurein real terms, particularly because of the high proportion of salary pay-ments. Even if the armed conflict in the country is terminated it mightprove impossible to curtail salary payments without invoking unemploymentproblems. There is nevertheless a need for improvement in the public savingsperformance. Witlh careful management and sensible tax reforms it may bepossible to accelerate the rate of growth of tax revenue. If concurrentlygrowth in current expenditure in real terms is curtailed to items relatedto development projects (e.g. teacher salaries), it may be possible toliquidate existing commercial and debt service arrears and to generate azainafter a few years some public savings. In any case current budget deficits(includinv the linuidation of arrears) of the order of CFAF 1-2 billion peryear are to be expected during the next two or three years, and, in theabsence of systematic efforts to imnrove the Government's financial Dosition;probably during the rest of the plan period (1971-75) as well. Secondly,thre ChnAin ndministration npped tn ho grpatlv strengthened. At nresent,involvement of national Government staff in the preparation and executionof development projectsis ow, mnrd a mqinr effort must hb mide to rrainpersonnel.

87. Careful management of the economy is also needed in two otherareas. First, Chad's landlocked position reqiresa stable re-lat-ionshln

with neighboring countries. It may tlherefore be beneficial to try tonegotiaf-ne renewed .-gt 1' ra and ecnno . agreements Aith r.eighbrinations. Secondly, tlhe external payments position has been deteriorating.VLU J.ie thl4s i0s unliktely to cause serious p-oblem. in the short-rur., this .will eventually have to be reversed. Prospects for improvement are howevernot good. Under present conditions, cotton is the only pro duct with. sub=stantial additional export potential, but cotton exports have been volatilean'u ti'uey cadoi ULly graLUUally ue 'LrLcrase-u. MOWLreover. c prices X -*ave

been declining relative to the price of imports. Therefore, efforts toLiriprove externaL pay[ments will presentLy hiave to concentrate on cur-i âîi li L.-

imports, including renewed consideration of Lmport substitution possibilities.if peace can 'De restored, the balance of paym..ents prospects would improveconsiderably. There is a good demand for cattle and beef in the area, andtnere should be no difficulty in exporting any additional production atremunerative prices. However, even under peaceful conditions, the external

- 27 -

payments position should be expected to show an overall deficit unlessaid is increased above the level that has prevailed in recent years. Chad'sdevelopment financing will remain strongly dependent on foreign assistancefor a very long time to come.

88. The Government is preparing a developmeî,t plan for 1971-75. Earlydrafts envisage investments of CFAF 10 billion ($36 million) per year, ascompared with CFAF 4 billion ($14 million) per year during 1966-70. Onilya very small part of investments can be financed by dornestic private re-sources. In vielv of the current budget deficits and tlie likelihood thatthese will persist at least during the next two or three years and possiblylonger, the Government will not be able to contribute to the cost of invest-ment. Any Governmertt contribution to the cost of development projects willincrease the need for assistance to cover current expenditure so that on anet basis public investments will have to be entirely financed by externalfunds.

89. l'he 1971-75 investment target is unlikely to be acliieved. H4anyprojects are in an early stage of preparation and will not be ready forexecution before the second half of tlhe plan period. It may therefore beexpected that in the immediate future the absorptive capacity for foreigninvestment funds will not rise above its present level and that if morepeaceful conditions can be restored, it mnay increase gradually to reach the1971-75 plan level towards tlie mid-1970's. in this case, total externalfinancia:l resources required at present prices (including debt service ofCFAF 6-7 billion ($22-25 million») would amount to abont CFAF 36-42 billion($130-15l million) during 1971-75 plus whatever may be needed to financeGovernment current budget deficits..

90. In view of the low le-vel of private savings and the absenre ofpublic savings, f-oreign donors should be prepared to finance a high propor-tion (in many c-ses close to 100 percent) of nrn-irt -osts and foreien aidwill need to cover a large part of local cost expenditure. Because thebalance of payments is likely to remain weak and in view of t-he tighit hudi-getary situation, the bulk of aid to Chad will have to be extended onconcess_ionarv tI-Pms-

STATISTICAL APPENDIX

Table No.Area and Population

Population and Population Density l.:i

National Accounts

Composition of Gross Domestic Product 2.1Investment Expenditure 2.2

Balance of Payments, External Trade

Balance of Payments 3.1Compôsition of Imports and Exports 3.2Exports by Destination and Imports by Origin 3.3Structure of Foreign Assistance 3.4

External Debt

External Public Debt Outstanding 4.lDebt Service on External Public Debt 4.2

Fiscal Statistice

Government Revenue 5.,1Governrment Expenditure 5.2

Monetery Statistics

Monetary and Banking Statistics 6.1

Agricultural Statistices

Agricult,ural Statistice 7.,1Cotton Statistics 7.,2

Other Sectors

Transportation Statistics 8.1Education Statistice 8. 2Industrial Production 8.3

Prices 9.1

Miscellaneous

Draft Summary Investment Plan, 1971-1975 10,.1

Table 1.1: POFPULATION AND POPIULTION DENSITY BY PREFECTURE, 1968

Area in InhabitarntsCapital Population km2 per km<-

Northern Prefecture

1. Borkou-Ennedi-Tibesti Largeau 80,000 600,350 0.1

Central Prefectures

2. Lake Prefecture Bol 116,000 22,320 5.3

3. Kanen Mao 181,000 114,520 1.2

4. Batha Ati 315,000 88,800 3.5

5. Biltine Biltine 137,000 46,850 2.9

6. Ouaddar Abéché 332,000 76,240 h.4

7. Chari-Baguirmi Fort-Lamy 437,000 82,910 5.3

8. Guëra Mongo 169,000 58,950 2.9

9. Salamat Am-Timan 89,000 63,000 1.4

Southern Prefect,ures

10. Mayo-Kebbi Bongor 516,000 30,105 17.1

11. Tandjilé LaT 251,000 18,045 13.9

12. Moyen-Chari. Fort-Archambaut 395,000 45,180 8.7

13. East Logone Doba 257,000 20,035 9.z

14. West Logone Moundou 232,000 8,695 26.6

Total 3,507,000

Source: Annuaire Statistique du Tchad,, 1968.

Table 2.:L: COMPOSITION OF GROSS DOMESTIC PRODUCTI/ IN 1967

(billions of CFA francs)

Traditional Modern^eetor Seetor Total

Agriculture (crops) 20.3 0,1 20.b

Animal husbandry 6.3 - 6.3

F4shing 1.9 - 1.9

Industry an.d --rafts 1133)=n^^e+_ ..A.^^-,f+ il J i j

vl A Au tas n v - r

Road transportat4on 0.1 0.8 0.9

Trade 5.5 6.0 11.5

A J~~~~~~~~~~~~~~~4 i i n@4 .......... . ...... JsuALJ s11 ±D L;1 eO UL vcf oVs v J.uVs -v o_

HYousekeeping services - 0.6 0.6

EducatioLd±n, heaIItL, â d othelU 'J L.

services 0.4 4.4 4.8

Gross domestic product 37.2 22.h 59.6

B.O.P. current account deficit 6.5Total resources 66.1

_ . ~~=

of which used for:

Private consumption 50.0

Public coneiumption 8.9

Gross investment 5.6

Increase in stocks 1.6

L Amounts are at market prices and represent values added where GDP isconcernedl. ThIAe estir,.ates sre tentative ar.d shoul.a bVe used 4A ca tUion.

The traditional sector includes all African agriculture, both for cashalUl iSulnsub sLVisLence. *T II mod_Iern sectUlor conUIss'tb s o. enAterprses ta hs'5some form of accounting system and of Government services.

Source: Ministère du Plan et de la Coopération.

Table 2.2s INVESTMENT EXPENDITURE '< 1966 - 1970

(millions of CFA francs)

1966 Estimete Totaland 1968 19691967 1970 1966-1970

Private Investments

Existing enterprises 300 240 410 800 1,750New enterprises 1;R50 22 122 206 29200Other n.a n.a n.a n.a n.a._ _ __ _1 C _ ,_ _ _ 00 _ _ 95 __

Pbihr Tnvestfm.ents

From domestic resources

Agriculture (crops) 126 5 - 52 183Animnal huQhnry 90 3 - 15 108

Industry 359 78 15 22 474Transport and co,'nmmunie-fÇ+irnw 7 80 lhS 122 791Tourism 507 149 _ 656duca~+on - 100 - - 100

Health, urban and socialaffairs 306 il - 22 339

Other n.a 270 301 209 780

Fro.. foreign ,ssinstance

Ag..*Lcu'IL-Vt-oure (crops) 1,33C ,91a.21

Animal husbandry 227 105 39 365 736Industl-y 777 53 71. 1 9 liInIsULrLiry fil 2) L4 .J.1 74

Transport and commulcationsl,060 1,193 1,627 1,150 5,030±ourisi li 8 L1 - - L8

Education 249 198 149 220 816neaslthd, urban andu social

affairs 761 190 197 100 1,248ûther 364 cû3 278 2 .Li,l5

Total U,78 1 2,351 273 2,370 12,039

Total Investments 8,766 3,309 LU2 3,818 19,423

2/ The figures in this table represent identified investments. They may under-n~,,

4mo,~ i,,+,&l4 rac,mon+o î *g, am a.+ vfn* h-c>cii,a of e hnmra. % ~vaw"tàeym Tri

es+inae actal inestmets tosomne exten+ ecus of ic.pe cauezage. Inparticular, private investments do not include expenditure for construction

Source: Ministère du Plan et de la Coopératior..

Table 3.1: BALANCE OF PAYMENTS, 1969

(millions of CFA francs)

RPeReipts Ependittures Balance

Goods and Services 16,586 24,607 -8,_2]

Merchandise 9,068 11,000 -1,931Freight and insurance 39 4,149 ->4,110Other transportation 187 798 - 611Other insurance 196 485 - 289Travel (except transport) 936 1,447 - 511Income from capital 217 858 - 641Income from labor 215 1,471 -1,257Other services 1,009 1,522 - 513Government of Clhad 76 2,660 -2,584Foreign Governments 4,645 218 4,427

Capital and Transfers 9,487 2,544 6,943

Private transfers 1,630 358 1,272Public transfers 5,069 565 4,504Private capital:

direct investments 392 275 117other long-tierm 1,287 705 58,2

Public long-term capital 417 579 - 162Private short-term capital 20 43 - 23Public short-term capital - - -Unclassified capital 672 19 653

Monetary Movements 1,094 149 9>45

Errors and Omissions 13 - 133

Source: Chad Office of the Banque Centrale des Etats de l'Afrique Equetorialeet du Cameroun.

Table 3.2: COMPOSITION OF IMPORTS AND EXPORTS, 1967-1969

(millions of CFA francs)

1967 1968 1969

Exports

Cotton 5,50L 5.772 65Live animals 547 229 168Meat ?69 7h14Fish 95 108 84Gum arabic 112 107 80Hides and skins 90 101 114Natron 63 38 30Other 354 482 280Total reRistered exports 7 -el), 277MI 8,026Estimated unregistered exportse2 988 1,784 1,934Estimated total exnorts 8;'72 9

~ports

Sugar 1,y 1,177 /y1oOther food 2,182 1,709 1,792Tobacco and tobacco prouucts 334 349 252Petroleum products 1,522 1,695 2,453Ceement 211 546 305Chemical products (medicine,fertilizer soap and matches) 1,177 ,005 9614

Textiles and shoes 2,275 1,833 1,556Metais and metai products 708 966 946Machinery 1,661 1,402 1,1433Transport equipment 1,202 1,063 1,267Other ljÊ94 1 616 -1,984Total registered imports 2 L4,p44 13,361 13,900Estimated unregistered imports" -500 500 -OûEstimated total imports 14,994 13,o6 14,400

1/ Mainly live animals.2/ Mainly textiles, enamelled products and similar consumer goods.

Source: Ministère de l'Economie, des Finances et des Transports; Bulletin deStatistique, mars/avril 1970.

Table 3.3: EXPORTS BY DESTINATION AND IMPORTS BY ORIGIN,1967-69

(millions of CFA francs)

19Q67 19168

Exports

France 3,77"4 4,333 4,ll0Other ERC 910 828 l,h0OOther Europe 412 496 518Nigeria 528 192 26hJapan 338 344 480Other non-BCE&EC area 673 632 712Total ,b635 6,025 7,4bBCEAEC area 899 756 542Total registered exports 77534 (,55l o,uzoEstimated unregistered exporte 988 1,784 1,934Estimated total exports 5702 9, 7,9

Importe

France 4,847 4,415 4,842Other EEC 1,948 2,276 1,741Other Europe 834 8M2 999North and South America 1,555 1,116 981Asia arnd Australia 783 659 551Nigeria 518 950 1,641Other non-BCEAEC Africa 544 305 601

Total 11;~~~~~~il02910531.6BCEAEC area 3,465 2,798 2,544Total registered lmports 14,49l T3;36 i;900Estimatied unregistered importe 500 500EatimntAd total. imports ____ 9 i.561 T.OO

Source: Ministère de l'Economie, des Finances et des Transports.

Table 3.l4: S1RUCIURE OF F'OREIGN ASSISTANCE IN 1969

(amllions of CFA francs)

Mult ila tera 1Nature of 'Expendituire Assistance Bilateral Assistance Total

FED U.N. IDA iFrance U.S. Germarn'SR Taiwan Isrsel Canada Switzerland

Total Foreign Assistance 2006 526 35 37652/ 11h 296 39 13h 90 60 10 7125

Current Expenditure 269 441L - 3219 60 104 89 100 9ED 60) 10 1I4L12

Technical assistance - 100 _ 2134 60 61 4l 50 30 60 10 2549(salaries,social charges,tra nsportation)

Free provision o.f goods &services 154 341 - 285 - 43 45 50 60 9 9r8

of which: education - (49) - (37) (10) (Jh5) - - - (î1sl)health - - _ (18) - - - - _ .. _ (18)

social services - (16) - . (6) - _ _ - (22)

agriculture (139) (181) _ (182) _ )(27) (50) (63) _,- (6 39)livestock (15) - - (48) - ) - - -- 3)

other - (95) .. _ _ _ _ _ _ (95)Subsidies 11]5 - - 50( _ _ _ _ _ _ 5]L5

Grants to agencies(A SECNA, ORSTOM, ORTp) - - - 40 - - 0 _Development Expenditure ;737 85 35 546 54 192 - 34 - -- 26M3Granits to Goverrunent 17377 - 39tS 12i - *- _-Uof which: education (35) - - (92) - (17) - - _ * _ (1irh)

health (74) - - (100) - (20) - - - - (19h)

urban dev. - - - (3) - - - (3)agriçu'ltune (127) - - (46) - - - - - - - (173)

livestock (20) - - (19) - - _ - - *- - (39)

transp.& comm. (1481) - - (6) (54) - - (1597)

industry - - - (8) - (32) - (34) - - (74)other - (85) - (66) - (123) - - - ' (27L)

Loaris tc Government - - 35 4 - - _ _ _ _ 39of which: transportation - - (30) - - - - _ - (30)

education - - (5) _ _ _ _ _ _ . (5)other _- - - (h)

CCCEi loan to BDT - - - 14 - - - - - - - lh6

a:n addition the Frenclh Gorerrmient provides militaryr assistance to Chad. The cost of local procurements and salarypayments may conservativelly be estimated at CFÂ9F 2165 million in 1969. 'he French Government also pays pensions toits f'ormer civil and inilitary employees of Chadian nationality; in 1969 these payments amounted to CE'AF 1,792 million.

Source: Ministère du Plan et de la Coopération.

Table 4.1: IXTERNAL PUBLIC LONG-TERM DEBT, REPAYABLE IN FOREIGNnutinis OU ,u uT ma A 1 yimi ,ei A n Or.F ntr'ivru',nt' 'Vi 1969L

(thOU8ands Of U.S. adollars

Dlisbursed Includine

only undisbursed

Total Xxternal Public Debt 3j6L L<0-0'8

Privately held debt 2__Dl 9_ô4_

Suppliers 2,311 8,09S

Austria 66 53()France 580 58(Germany (Fed. Rep. of) 708 7083Italy 204 4,943Netherlands 177 757United KinRzdom 521 521LUnited States 55 5

Financial institutions - France 113 113

Privately placed bonds 194 1,440

Loans from international organizations _7,1j 5

European Investment Bank 1,2L5 1,215InA 135 5;9C

Loans from fovernmpnts 29.396 33.273

DenmJoark~ - 1,333~

France 27,046 27,7593nuermrezv \red. Rep. of) 2,186 3,7'

Israel 164 3i'6

Source: iBvD Statistical Services Division; Eeonormics Department.

Table 4.2: ESTIMATED FUTUREvERVICE PAYMETS ON EXTERNAL PUBLIC DEBT(INrLU-DING -!-NDISB-URSED) O-UTSTANDING AS OP DECEMBER 31,19b9:r:

(thousands of U.S. dollars)

Debt ouit. Psymnto+cs durino' th-p yarDn

standing Amortization plus IntesrestYer s of Jan.l, Amortization Int-rest -f whJlXh to

including Total the Govt.ofu ndisbu r sed Fvra nce

1971 o 1,6°l 2 j8951,413 4,081,3

19073 IR84 2,5t 5 1,32 3,741 8

19, 6, , 4 , , 6 i 1,11, -,6 2,668

10716 2796 LR t 19100 i A09 2e. 82

io rf" p0 Ln e.nn

1983 i459 57 i2 i,û8 37

198 14,û4 577 502) i,O972

i/Includes service on all debt listed in Table 4.1 with the exception of thefollowing loans, for which repayment terms are not available:

Government of France $3,276,000Governnent of Israel 212,000

$ 73-78 8,000Source: IBRD Statistical Services Division; Economics-Department.

Table 5.1: GOVERNMENT REVENUE, 1963 - 1970

(millions of CFA francs)

1963 1964 1965 1966 1967 1968 1969 Budget1970

Head tax 522 553 746 573 546 787 87'1 830

Livestock tax 305 278 369 387 29ù 224 1h7 310

Income taxes 605 629 851 1,027 1,179 1,568 1,70h 1,675

Turnover tax 533 542 768 417 340 428 612 450

Import duties 1,150 1,362 1,329 2,816 3,070 2,657 4,173 4,933

Export taxes 614 672 697 660 744 713 1,007 1,132

Solidarity fund 749 805 820 1,175 1,170 526 - -

Consumption tax 873 866 1,088 1,114 1,171. 1,001 760 850

Fees 293 279 293 392 470 429 4Lo 609

P.T.T. - - 324 336 403 429 5i1 513

Other ordinary revenue 475 479 586 551 595 592 629 434

Extraordinary revenue 234 110 25 87 71 163 48 -

Reu»vii.ant of loans 61 73 7h 36 161 5 318 ho

Total domestic :revenue 6,h1h 6,648 7,790 9,571 10,21h 9,522 11,220 11,776

Total expenditure 6,656 7eh98 8,544 10,h92 10,959 12,047 13,874 13,416

Deficit - 242 - 850 - 57h - 921 - 745 -2,525 -2,65$h -1,640

financed by:

French subsidies 700 568 320 370 Loo 530 300 1,680

Drawings on reserve fund 328 362 109 3 - 250gL - -

Change incther liaiiditîesd(- means increase) - 786 - 80 145 548 34h 1,745 2,354 - 40

1/ Drawingon nqnaion fumnd=/ Include changes in Central Bank credits. Since 1968 this item also includes theaccum.ulation of r.come,rci aarrears for supplies to the Goverrnment for whirh navmenthas been deferred. As of August 31,1970 these arrears amounted to CFAF 2,004 million.

Source: Ministère de l'Economie, des Finances et des Transports.

Table 5.2: GOVERNMENT EXPENDITURE, 1963 - 1970

(millions of CFA, francs)

19Q6 I A] 196Qé 1966 1967 1968 1969 B::dget1970

Current Expenditure

Public debt 146 172 212 592 421 444 431 463VW3 ge9fP ar.d i ,iRl 3,IA* J@10 e i )I682 1. IC cf ,677Materials and supplies Y,466 1,726 2,008 2,726 2,662 2,679 3,062 3,827

i t.L U na1J n C 9255 i 230 104 106 127 41 '5i.-.

Scholarships 112 175 204 199 199 207 283 300C!t9;-l;A- 9,-,A ^n+;)zE;r ^nfl7 £tn 4Ao I rnRî -,9A R AUI i .rio i o4r

WIAkJi7s »~~~~~~~~~~~~~- a1 VVyV - XSAi VV I) . L2 yV r VtiJU|| )XC

Other current expenditure 539 316 349 466 351 264 1,099 230

Total current expenditure S94l 6,630 7,779 9,848 10,216 10,815 12,761 12,902

Investment Expenditure

Construction of buildings 257 361 314 201 152 131 340 110ÀUrchase 0of buld 131 33 11 1 42Eg L1 J.15r

Transportation and com-rmunications 55 82 46 Il 20 44 197 89

Various equipment 31 160 182 191 34 208 211 38rLuuuuLtiv±L.y pruojli__ JJ4L4 L)) '' .LUY L C47 286 CCU

Tota'l investmsent, expen-diture 617 770 662 602 223 644 1,052 514

Loans and advances 99 99 103 43 520 587 61 -

Total expenditures 6,656 7,498 8,544 10,492 10,959 12,047 874 416

2/ The difference from table 4.2 is caused by the fact that this figure does notinclude service on loans to autonomous public agencies (BDT, CSPC, etc.)

2/ Includes expenditure for development studies and for a variety of works aimed atincreasing productivity.

Source: Ministère de l'Economie, des Finances et des Transports.

Table 6.1: MONETARY AND RANKING STATISTICS, 1966 - 1970

(billions of CFA francs)

Dec. Dec. Dec. Dec. July1966 1967 1968 1969 1970

Monetary Survev

Net foreign assets .52 -1.61 -2.01 -2.88 .-_._1/

Claims on Government (net) - .73 - .23 - .07 .71rl1nmi on nrvate ecrtor 7.57 9.75 10=A6 12.9q ll 610

Money 6=37 6=51 7-2)1 7=60 7.80Quasi money .18 .19 .11 .35 .45

Assets end Liabilities of the Central Bank

Foreign assets 1.82 .24 .28 .37 .48Claïms on Government 148 on 1.50 2.7 Claims on banks 2.88 4.54 4.88 5.75 4.20

Currency in circu:Lation 4.64 4.15 4.54 4.91 4.78Foreign liabilities .01 .Ri8 .31 1.7 ̀1.0Government deposits .144 .53 .L44 .50 .830Oth41ler.L2 .28 *L9 .57

Assets adLaitesofe tthe crlec akand the Chad Development Bank

Foreign assets .03 .05 .20 .06 .13C.Lairi,s on Governrint .14 .16 4 11 .180Claims on private sector 6.65 8.73 10.13 11.51 10.43

Demand deposits 1.59 2.20 2.46 2.55 2.88fr-4 Il a Il n~~~~~~~~~-,IrTuire and sav±nIg0 Uos L ..epos. -LU .17 ..L.L .35 .

Foreign liabilities 1.32 1.32 1.65 1.59 1.80uovrerrnru.en,tf deposi..1 . 16_ L .15 .22 .36

Credit from Central Bank 2.84 4.54 4.88 5.75 4.20Other (net) .76 .53 1.22 1.24 1.10

i/ August 1970.

Source: IMF, International Financial Statistics.

Table 7.1: AGRICULTURAL STATISTICS, 1966/67-1969/70

Unit 1966/67 1967/68 1968/69 1969/70

Commercial crops

Cotton (ungirined) metric ton 122,855 102,008 148,7'r4 116,636G,um Aranir mAtri ton 630 in i 1 1 .;-Ll 5502/

*hubsietence cropns

_ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ---- .Mil1ot. :nnS <rqr%lchilr 1 nnn m t.- fto( M.g7 l

Groundnuts 1,000 m.t. 92 88 99 115

Wheat 1,000 m.t. 5 5 6 9

1966 1967 1968 1969f

Regi-stered expor+s l c++12/ r.i +on,, ic ')R[8 i à ,050 7 L,33Estimated unregistered exports

c1-i ca++le 1-/ m ton.ri 10,O nf Onn 13,100 18Exports frozen beef metric ton 4,700 5,300 7,900 10,400Vpor+s dried beef c/ .. e +ric +n- 1,633 I167 1 ,36i 3 ,000

Estimated consumptio:n of beef t/ metric ton 23,900 24,700 25,hDO 26,100

55,718 53,717 55,683 62,035

Size of the Herd

Cattle 1,000 head 4,500 4,500 4,500 4,500Sheep and goats 1,000 head L4,000 4,150 4,150 4,300Horses 1,000 head 150 150 150 150Donkeys 1,000 head 300 300 300 285Camels 1,000 head 350 355 355 370Pigs 1,000 head - 5 5 5

Fish

Total catch 1,000 m.t. 100-110of which: consumed fresh 1,000 m.t.- 50-55smoked or dried for exportor domestic consumption 1,000 m.t. 50-55

a/ Provi.siorial§/ Based on average net weight of 150 kg per headj Carcass weight equivalent

/ Estimate for 19659 and extrapolations for earlier years based on an assumed growthrate of ] percent per year in rural areas and of 10 percent per year 'in urban areas.

Source:Miis- de lArclue

Table 7.2: COTTON STATISTICS, 1965/66-1969/1970

(production in metric tons)tarea cultiv-,at&ed inhetrs

(yields in kg/ha)(prices CFAFrl/kg , rOB)

1965/66 1966/67 1967/68 1968/69 1969/70

LUogorie ur-i2Len'au 's.pruu. L4 ,Uj e CU, L.4 L4u,U_u Cy,UUC eU,354area 52,318 57,712 54,662 48,178 55,110yxel 268 3l 8 ~ Q2» 711 l7 368

Y'.Le.U Luu -)L4u I. L4-( L )UU

Logone Occidental prod. 9,308 15,186 12,717 20,36w 15,998area 44,970 47,053 45,937 44,553 45,939yiel 2042 7 56' 348

yeu .u LUt rU 4) 4 D`2

Tandjlle prod. 14,`62 L4,458 11,7w 17,958 i4,752area 34,000 33,800 32,667 34,910 35,738yield 307 h27 359 514 hi?

Mayo-Kebboi proa. 31,8 , LL4 I 4i,L9YU 4Y,14JJ W5O35

area 73,ho4 72,34o 77,580 83,456 86,200yield 434 571 534 592 531

Moyen Chari prod. i4,060 20,445 16,248 29,496 16,352area 65,827 69,210 68,975 69,353 63,797yield 221 295 235 425 256

Chari Baguirmi prod. 2,911 4,761 3,001 5,315 3,240area 7,051 7,033 7,278 7,011 6,064yield 412 676 412 758 534

Salamat-Guera-Ouaddai prod. 3,591 6,517 1,950 3,330 122area 18,826 13,263 11,219 8,502 1,230yield 190 491 174 392 99

Total Chad prod. 86,825 122,855 102,008 148,774 116,636area 296,396 300,412 298,318 295,961 294,077yield 303 408 341 502 396

production ginned 31,211 45,152 31,534 38,480 34,437

% exported to EEC(by volume) 67% 77% 85% 93% 65%

average price EEC 132.5 133.8 147.9 142.8 143.5other countries 129.5 125.6 134.0 131.8 131.9

Source: Ministère de l'Agriculture.

Table 8.1: TRANSPORTATION IMPORT AND EXPORT TRAFFIC STATISTICS, 1964-1969

(metrie tons)

1964 1965 1966 1967 1968 1969

1. General Merchandise-Imports 87,783 76,696 78,095 94,243 101,501 90,312

Via Bangui 51,657 46,274 48,932 71,135 n.a. n.a.Via Canieroon 10,000 7,947 7,500 n.a. n.a. n.a.Via Camneroon-Douala 3,500 3,500 6,000 8,000 n.a. n.a.Via Nigeria-Maiduguri 22,626 18,975 15,663 15,108 25,225 28,124

2. Fuel Imports 36,035 38,713 33,815 42,107 46,104L 59,0O1

Via Bariguî 7,114 7,000 8,000 16,569 n.a. n.a.Via Cameroon-Benue 1,800 1,800 1,800 n.a. n.a. n.a.Via Nigeria 27,121 29,913 23,215 24,738 30,675 41,653Via Suclan n.a. n.a. 800 800 n.a. n.a.

3. Total Imports 123,818 115,409 111,910 136,350 14L7605 149,353

)4. Cotton E:xports± 37;i11 35-739 35,301 )1 O-RRI )iP2.15 47,505

Via Rricnvi 2L5i0<0 2Pji) 1Q, 19j65 21 021 29.693 n.a

Via Douala - Road 1,550 1,067 2,500 18,177 12,558 n.a.Via Dnouala --àVia Garoua - Benue 9,260 8,720 10,931 - - -

V;an ~ 9 M u2 1 1 5~7 9 685 n.a. lj596

5.* Other aeorts 11 ).'7 <12 11o i 1,5 I. 179 9A5,372 ,97l ?6,

Vi3 Ban-i 7,287 8,000 8,600lI n.a. n.a. n

Via Maiduguri h,000 4,000 2,665 n.a. 2,29L 4,169

6. Total Ex2orts 48,698 47,739 46,566 8625 69,129 73,975

7. Total Iinport and Ex rt 172 16 163,148 1 8 h76 222 O 216,734 22328

Source: Ministare du Plan et de la Coopération.

Table 8.2: EDUCATION STATISTICS, 1959/60 - 1968/69

1959/60 1964/65 1966/67 1968/69

Elementary Educatiori

Population, 5-lû years >85,80o 517,200 531,700 5>48,000

Enroliments iri primary hchol sO

- pubic46,672 129,,793 iL4U7-9L4 19,424

of which girls 9% 15% 18% 20%

- private 6,807 18,259 23,491 19,470oI whlich girls 2>4% 33% 33% 287

- totai 553,79 l47,O852 l72,48O5 1780,0894

Enroliments in priimary schoolsas a percentage of age group 11.0% 28.6% 32.4% 32.6%5-10 years

Secondary mEucation

Population, 11-17 years 490Y,4O 521,900 535,800 550,500

Enroliments in general secondaryschools:

- public 1,024 4,173 7,556 8,188- private 1 >47 436 536- total 1,024 4,320 7,992 8,724

Enrollments in technical andspecialized schools 3b323/

Enrollments in teachertraining colleges 709

Higher education

Students with scholarshipsstudying abroad 202

a] In addition 287 students from Chad followed secondary technical courses abroad.

Source: Statistiques scolaires, Ministère de l'Education Nationale et de laCulture.

Table 8.3: INDUSTRIAL PRODUCTION, 1965-1969

Unit l>OD ±yo0 o 9O` ±9loo 19'0o

Food Industries

Meat metric ton 8,312 8,117 8,933 12,060 14,713Reerlgea tiontons of meat

frozen 2,228 2,912 3,457 3,983 5,185Wheat. flour metric ton 2.629 3.522 1.970 h,129 1,127Vegetable oils hectoliter 9,416 12,932 14,334 15,918 n.a.Fppee Cakp metric ton 1 .7h)i 2.011 2.,93 2;631 1

Sugar metric ton 12 16 17 17 20Confertionery mmetrin ton 6fl 137 335 235 h76Sugarsyrup hectoliter - 2,500 - 1,300 2,092Beer hectol tir 1 j311 22;710 n__-_3 )6;076 64;732Soft drinks hectoliter 12,870 12,862 13,337 9,997 12,295

Other Ir.dus~tries--

Ginned cotton metric ton 36,613 35,209 42,022 41,750 53,t)30o 4A 1i A O I,4A O 17/S 1 |iI.r

VJkJ Ue VS.,,, UQA V4.. vLIO a&&S,S,Oz- U - - ) X 4Sl-L o .1_ f VJ _.. X L

Printing tons of paperprinted 5$ 66 70 70 -80

Perfume metric tons 238 357 346 307 1414Q0âp m,et-ric t%ons 95 12 8 7Bicycles number 4,388 3,283 4,208 3,035 5,L424

1D la 1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1'mI S.' I ' )1,4 ,i iNin%Rl.Lo set s numbLer .1.,700 , 4,000 13,2L46 10,00

Electricity million kwh 19.1 21.6 25.8 30.7 38.0Saoute r cubic n rldters - 2 Pl2' et de3la,9oo58

Source: Ministére du Plani et de la Coophration.

T'able 9.1: COST OF LIVING INDEX IN FORT LAMY, 1964-70

(Januarv 1964 - 100)

1964 1965 1966 1967 1968 1969 1970December figures February

Food and beverages 107 114 123 126 126 140 Lh3

Clothing 110 104 114 113 106 104 103

Utilities 101 102 102 102 104 103 104

Domestic servants 100 107 122 119 12h 128 :12B

Transport 102 110 114 116 116 12h 137

Health care 102 103 107 121 123 128 132

Other 103 106 111 119 124 139 133

S reneral inlex 103 110 116 120 122 130 13S

-Source: Chad, Bulletin Mensuel de Statistique.

T'able 10.1: DRAFT SIMMARY INVESTMENT PLAN FOR 1971-19752-/

(millions of CFA francs)

Amount

Direcctly rd^iePoet

SQugar factory -and plantat-lon3,6Wheat cultivation 2,893

Animal husbandry 5,701

Rice 966ÂbIA- CrO y, -

Total 21,324

Education

Primary 2,782Secon'dary 1 7Technical 2,269uOthe:r l,û9ûUTota:l 8,122

Infr,astructure

Wate:r and Power 706riT i,486Urba:n infrastructure 2,757Agricultural storage 695Roads 1,881Air transport 2,708Other transport 365Total

Heaith and Social Affaire 1,298

Rural Development 4,050

Other Projecte

Agricultural credit 1,635Studies 1,624Total 3,259

Grand Total

a/ This table is based on a preliminarv draft of the 1971-1975plan, liable to considerable change.

Source: Ministére du Plan et de la Coopération.