|
Posted
on April 15, 2011 - by Dr. Bienvenu-Magloire Quenum - Editor in Chief
of Africabiz Online editor@africabiz.org
On April 06, 2006 Dr. Thomas Yayi Boni was sworn for his first term as Benin's president. Benin entered a new era after the long "reign" of General Mathieu Kerekou who ruled the country for 26 years, first time during the so-called revolution period, from 1972 to 1990, and a second time for two terms, during the multi-party democratic period - from 1996 to 2006.
For the first time in Benin, someone new to politics reached the supreme power. Thomas Yayi Boni was a former manager to the Bank for the Development of West Africa, a structure established by eight west African French speaking countries - Benin, Burkina-Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. Click here for countries's briefs
He used his position at the bank to grant micro-credits and loans to implementing several projects in the country - during the period 2004-2006. He astutely managed to be perceived as the "money man" who has the capacity to attract financing into the country to boost the developing. Indeed, his background was in finance and economics; and his doctorate degree thesis was about Growth Rates.
Above briefly outlined strategy worked perfectly to put him at the helm of the country. On March 19, 2006 he scored the highest level of votes ever won in Benin history for a presidential candidate, 72% of cast ballots against 25% for his contender - Mr. Adrien Houngbedji - a lawyer, businessman, a veteran of the political scene.
Expectation was high and Benin people were confident they have (at last) chosen the right man who would turn around the economy, create riches for all and progressively increase their purchasing power, which is one of the lowest in the world, in the range of US$380 a year.
The day Yayi Boni was sworn in, on April 6, 2006, a festive atmosphere was palpable all over the whole country - the broad spectra of Beninese politicians attended the ceremony, together with thousands of enthusiast supporters and followers.
About two years later, people were no more in a festive mood, because nothing had really changed in comparison to the previous regime, the feeling was morose, as no clear developing strategy was emerging. The economy remaining in the same comatose state, corruption rampant as ever.
And the passing years up to the new presidential ballot of year 2011 increased the palpable malaise. The majority of the population was disillusioned and unhappy with Yayi Boni's governance.
- Yayi Failed To Turn Around the Economy and Increase the Purchasing Power of the Populations
Indeed, as shown by figures on table below exposed, Benin's economy remained standstill for 25 years running, from 1981 to 2006, and had not changed for the better during Yayi Boni's first term in power, from 2006 to 2011.
| Essential Economic Ratio and Long Term Trends of Benin's Economy |
| Items
/ Period |
1981 |
1991 |
2001 |
2006 |
2010* |
| 1.
GNP (US$ billions) |
1.3 |
1.9 |
2.4 |
2.3 |
2.3 |
| 2.
Per Capita GNP |
337 |
344 |
385 |
380 |
365 |
| 3.
Gross Domestic Investment / GNP |
15.7 |
14.5 |
19.2 |
18.9 |
16.9 |
| 4.
Export of Goods & Services / GNP |
23.2 |
24.5 |
15.2 |
14.8 |
12.8 |
| 5.
Gross national Savings /GNP |
0.0 |
0.0 |
12.5 |
10.8 |
8.8 |
| 6.
Current Account Balance / GNP |
-21.6 |
-4.8 |
-6.7 |
-9.1 |
-11.1 |
| 7.
Interest Payments / GNP |
0.2 |
0.7 |
0.6 |
0.8 |
0.6 |
| 8.
Total Debt / GNP |
38.1 |
71.0 |
61.8 |
75.2 |
85.2 |
| Average
Percentage Increase |
| 9.
GNP |
2.2 |
4.9 |
5.0 |
2.7 |
2.1 |
| 10.
Inflation |
6 |
8 |
3.8 |
4.2 |
4.7 |
| 11.
Population |
2.6 |
2.7 |
2.8 |
3.0 |
3.0 |
| 12.
Labor force |
2.5 |
2.6 |
2.7 |
2.9 |
3.2 |
| 13.
Poverty |
55 |
45 |
44 |
65 |
75 |
| Source:
World Bank Group's Reports - *Figures for 2010 are estimates/ average
of years 2006 to 2010. |
One sees that the inflation and the population's growth rates (lines 10 and 11) eat the seeming growth rate of the economy (line 9.) And most important, the poverty level increase 10 points since the beginning of Yayi Boni's rule. The proof of the increase of poverty level, is that, currently, most Benineses cannot afford two hot meals a day. One can also notice that per capita GNP (line 2) shows a flat evolution for thirty years, from US$337 in 1981 to US365 in 2010.
- Yayi Boni Failed To Deliver During His First Term in Power
During the campaign to the presidential ballot of 2006, Yayi Boni repeated the following slogan, "Things Will Change. Things Must Change." Meaning he would improve the governance of the country, fight against corruption. And most importantly implicitly he was saying that he would act, to expertly improve the economy. Figures on above table demonstrated that he failed to do so.
The rallying slogan chimed perfectly with the population's desire to get rid of Kerekou's dying regime. However, from April 6, 2006 to April 5, 2011, nothing really changed in Benin.
The global economic crisis that "officially" began end of year 2008, cannot be called in for an excuse because anyway Yayi Boni was already in power since 2006 and had not devised a clear, efficient strategy to boost the global development.
Obviously, the simple strategy Yayi Boni used to beat political opponents, granting micro-credits and loans to implement projects before he came to power, as above briefly outlined, was not the right one to initiate and boost the development of the country.
In short, nothing really changed in Benin under the leadership of Yayi Boni. In the contrary, corruption reached level never seen before, and the governance practice was chaotic to say the least, in comparison to the previous regime of General Mathieu Kerekou.
For instance, Yayi Boni left no room to the people he appointed to manage government's departments/ministries. He shows a propensity to micro-manage, appointing quite all the collaborators to the ministers - and changing the head of departments/ministers at whim. Never before in Benin the rotation of ministers was so high.
They, the ministers and collaborators, particularly when they do not show a courtesan mentality, do not stay in the managing position for a long time to exercise their capability to make things happen, to show what they can do. They are sacked overnight.
State-own companies, such as Benin Telecom, for instance, had been privatized in non transparent conditions, sold out to foreign investors for pricing far below accounting book declared assets, that is XOF/CFA25billions against proven assets/ infrastructure in the range of XOF/CFA125billions. Click here for conversion device
The same about the handover of the harbor of Cotonou, the unique harbor of the country, build in 1960, and quite the single revenues provider (85 percent) to national budget. The handover of the management of the harbor to private interests had been done in an obscure manner, contested for no avail by the opposition parties, the civil society organizations, and the trade unions.
Towards the end of his first term, in December 2010, Yayi Boni inaugurated a seeds's production structure sponsored by Chinese cooperation.
However, till today, a strategic plan to developing agriculture had not been designed to boost the development of cereals, roots and other agricultural produces, in order to depart from cash crops for the export market, that do not provide sufficient revenues for the farmers to prosper. No strategic plan exists to transform agricultural products into food stuffs to limit imports.
The country's main production is still based on the cultivation of cotton, whose international selling price not controlled by the government, fluctuates, year in year out, mostly downward, not providing sufficient revenues to the farmers.
Anyway, under Yayi Boni leadership, cotton's production level sustained 65% drop from 400,000 metric tons in 2006 to 140,000 metric tons in 2010. All this after Yayi Boni's government injected XOF/CFA92billions to boost the production - starting from 2006 to 2010. There is a problem of efficiency or corruption somewhere.
To mechanize the development of agriculture, Yayi Boni's government purchased tractors and other agriculture equipment. However, said purchase had been made in an obscure manner, leading observers to speak of money changing hands between the sellers and the government people in charge of the purchase.
Further, the distribution of the equipment to farmers had been made on a vote-catching way under non specified operational conditions - gift, grant, or rental? Till now we have not heard of any logistics put in place to maintain the equipment and train farmer to efficiently use them.
Which bring us to discuss about the several financial scandals that erupted from 2006 to 2011.
- Financial Scandals Marred President Yayi Boni's First Term in Power
Indeed, from 2006 to 2011, financial scandals never experienced before in the history of Benin amazed the most blasé observer of the African political scenery. Particularly a well elaborated and executed ponzi-scheme fleeced million of Benineses from their meager savings, accumulated bit by bit. (Click the above green link to know more about Ponzi Schemes)
The promoters have had the support of politicians linked to Yayi Boni's party to market the ponzi scheme. They astutely make believe that sizable portions of the scheme's proceeds are diverted to promote social development such as the establishment of water wells in rural areas, to provide clean drinkable water to the villagers.
The promotion of the scheme was cleverly done. Yayi Boni government's ministers had been seen on the national television inaugurating such villages-realizations in the presence of the promoters of the ponzi scheme.
Worse, the president himself granted audiences to the scammers, with images of the encounters seen on national TV, which encouraged Benineses to enter the scheme.
Billions in the range of XOF/CFA150billion/ US$300million had been fleeced by the scammers. That amount is a "huge" one in a country as poor as Benin. Around a quarter of the population (2 million people) lost his savings.That added to the rampant poverty level.
There have been also several financial scandals in the same range, pointing to close collaborators of Yayi Boni, such as the financing of the infrastructure to host CEN-SAD conference held in Benin in year 2008. (If you have a good knowledge about French language, listen to this video).
- Yayi Boni's Popularity Had Severely Dwindled From 2006 to 2011
The above discussion is testimony that Yayi Boni's popularity among the people of Benin had severely dwindled from 2006 to 2011.
People finally realized that his siren sing song of 2006 presidential ballot campaign, "Things Will Change. Things Must Change," was simply made of false promises.
This is why, on the road to the presidential ballot of March 13, 2011, the majority of Benineses were utterly disappointed with Yayi Boni's governance practices, and ready not to renew his term in office.
Indeed, the odds were that Yayi would not have an easy ride to keep the power as he did to conquering it in 2006. Most Benineses were convinced that he would be removed from power. Confidential polls two months before the presidential ballot of March 2011 were crediting him of 30 percent of the votes for the first leg.
However, to the surprise of the majority of Benineses, Yayi Boni won the presidential ballot of March 13, 2011, right away - by KO as a boxing match as his supporters boasted, without a second leg contest. A premiere in the history of elections Benin. Even Mathieu Kerekou had gone through second legs to gain power in 1996 and remain in charge in 2001.
A surprise win indeed. According to the Constitutional Court Yayi Boni scored 53 percent of cast votes, during the first leg (March 13, 2001) against 36 percent to the close contender, Adrien Houngbedji, in the presence of 14 other candidates, two of them being veterans of the political scenery - Adrien Houngbedji and Abdoulaye Bio-Tchané.
The later named, a former International Monetary Funds Manager for African countries (2006-2008), and Manager of the West African Development Bank (2008-2010) prior to declaring candidacy to the presidency, had been for ten years running (1996-2006) a big player on the Beninese political stage under the leadership of former president Mathieu Kerekou. He was a very important challenger to Yayi Boni in his "natural" political region - the Northern part of Benin.
So, surprisingly, with a deep amazement from the majority of the populations, considering the background of huge financial scandals and bad governance approval that characterized his first term in office, as above described, Yayi Boni needed only one leg to win the presidential ballot of March 13, 2011 - against above briefly outlined strong opposition. He was sworn in on April 6, 2011 for a second term to be ended in "principle" on April 5, 2016.
Please notice the "in principle" used in the last part of above paragraph because, based on discussion and facts exposed in this article about Boni's failure to improve the economy, the many financial scandals linked to his close political collaborators, advisers and family members, and pointing to himself, the majority of Benineses, are entitled to ask questions about this surprise election of Yayi Boni.
About the author: Dr. Bienvenu-Magloire Quenum is the principal/ managing director of Dr. Quenum & Associates, IBC. He is an experienced Investment & Business Planner with 25 years consulting practice in African countries. He is the editor in chief of Africabiz Online
|
.
-
