page_title: Economy of Mali
section_title: Economic Reform
hierarchical_section_title: Economy of Mali / Economic Reform
caption_attribution_description: English: Export Trading Treemap. From MIT/Harvard Atlas of Economic Complexity
context_page_description: The economy of Mali is based to a large extent upon agriculture, with a mostly rural population engaged in subsistence agriculture.
  Mali is among the ten poorest nations of the world, is one of the 37 Heavily Indebted Poor Countries, and is a major recipient of foreign aid from many sources, including multilateral organizations, and bilateral programs funded by the European Union, France, United States, Canada, Netherlands, and Germany. Before 1991, the former Soviet Union, China and the Warsaw Pact countries had been a major source of economic and military aid.
  The per capita gross domestic product of Mali was $820 in 1999. Mali's great potential wealth lies in mining and the production of agricultural commodities, livestock, and fish. The most productive agricultural area lies along the banks of the Niger River, the Inner Niger Delta and the southwestern region around Sikasso.
context_section_description: Between 1992 and 1995, Mali implemented an economic adjustment program that resulted in economic growth and a reduction in financial imbalances. This was reflected in the increased GDP growth rates (9.6% in 2002) and decreased inflation. GDP in 2002 amounted to US$3.2 billion, made up of agriculture 37.8%, industry 26.4% and services 35.9%.
  Effective implementation of macroeconomic stabilization and economic liberalization policies and the stable political situation resulted in good economic performance and enabled Mali to strengthen the foundations for a market-oriented economy and encourage private sector development, backed up by significant progress in implementing the country's privatization program. Agricultural reform measures were aimed at diversifying and expanding production as well as at reducing costs.
  Mali's economic performance is fragile, characterized by a vulnerability to climatic conditions, fluctuating terms of trade, dependence on ports in neighboring countries.
  Mali produces cotton, cereals and rice. Although locally produced rice now provides competition to imported Asian rice, Mali's primary export is cotton. Livestock exports and industry (producing vegetable and cottonseed oils, and textiles) have experienced growth. Although most of Mali is desert or semi-desert, the Niger River is a potential irrigation source. Exports are in three primary sector products (56% gold, 27% cotton, 5% livestock). Ivory Coast is where most of the country's trade goes through and the crisis previously experienced here had a negative effect on Mali's economy.
  The mining industry in Mali has recently attracted renewed interest and investment from foreign companies. Gold and phosphate are the only minerals mined in Mali although deposits of copper and diamonds do also exist. The emergence of gold as Mali's leading export product since 1999 has helped mitigate some of the negative impact of the cotton and Ivory Coast crises.
  The development of the oil industry is important due to the country's dependence on the importation of all petroleum products from neighbouring states. Electricity is provided by the parastatal utility, Electricite du Mali.
caption: A proportional representation of Mali's exports.
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