Approximately 75 community schools in mainly rural areas will receive government support for non-wage recurrent expenditures in 1999, and an additional 150 schools will receive financial support in fiscal 2000. Moreover, the government will enact legal and institutional reforms that aim to reduce discretion in administrative procedures and improve public governance. In order to improve the quality and effectiveness of basic education in low income municipalities, the government will increase non-salary expenditures on books, school lunches and health programs. A Poverty Assessment will be carried out to identify the needs of the poor and to guide the design of social policies and programs that will contribute to poverty reduction. Removing Distortions that Harm the Poor Reforms that aim to reduce distortions that harm the poor by reducing their job opportunities or real incomes were supported in 15 out of 36 adjustment operations in fiscal 1999.
Interesting examples come from Bulgaria, Rwanda, Chad, and Macedonia.
In order to increase producer prices, the government will eliminate export controls and taxes on grains and oilseeds, remove price controls on agricultural products, and discontinue tariff exemptions for all agricultural products by liberalizing the import tariff regime. The rural poor will indirectly benefit from the creation of off-farm job opportunities in food marketing and processing as a result of the elimination of registration, licensing and contract approval requirements for exports and imports of agricultural productions, and the reduction of the state s role in grain marketing. Amendments to the labor code will reduce labor costs by eliminating restrictions on firing and consolidating sectoral minimum wages into one national minimum wage, and removing provisions that discriminate against women. As a condition for the third tranche release, the government agreed to amend the civil code to give women equal inheritance and property rights, thereby protecting them from structural poverty. The government aims to increase farmers share of world cotton prices from 49.5 percent in 1998 to 54 percent in 1999.