Benin has been one of the most politically stable countries of West Africa, achieving a successful transition from a Marxist-Leninist state towards a pluralist democracy and a market economy. Four presidential elections and four legislative elections have been organized peacefully since the end of the Marxist-Leninist regime in 1989. Important economic and structural reforms, supported by the IMF and IDA, have also been undertaken and growth rates averaged around 4.7 percent annually during the last decade, resulting in modest increases in per capita incomes as well as improvements in human development.

Nevertheless, with a per capita income of US$690, Benin ranks among the World’s lowest-income group of countries. Poverty remains widespread and the economy remains poorly diversified and vulnerable to external shocks. Benin’s economy relies on the agriculture sector, in particular cotton, and transit trade with Nigeria.

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Stepping Up Growth - August 2009 (PDF)