Economy
Mali is one of the poorest countries in the world. The average worker's annual salary is approximately US$1,500. Between 1992 and 1995, Mali implemented an economic adjustment program that resulted in economic growth and a reduction in financial imbalances. The program increased social and economic conditions, and led to Mali joining the World Trade Organization on 31 May 1995. The gross domestic product (GDP) has risen since. In 2002, the GDP amounted to US$3.4 billion, and increased to US$5.8 billion in 2005, which amounts to an approximately 17.6% annual growth rate.
Mali's key industry is agriculture. Cotton is the country's largest crop export and is exported west throughout Senegal and Côte d'Ivoire. During 2002, 620,000 tons of cotton were produced in Mali but cotton prices declined significantly in 2003. In addition to cotton, Mali produces rice, millet, corn, vegetables, tobacco, and tree crops. Gold, livestock and agriculture amount to eighty percent of Mali's exports. Eighty percent of Malian workers are employed in agriculture while fifteen percent work in the service sector. However, seasonal variations lead to regular temporary unemployment of agricultural workers. Mali's resource in livestock consists of millions of cattle, sheep, and goats. Approximately 40% of Mali's herds were lost during the Sahel drought in 1972–74.
In 1991, with the assistance of the International Development Association, Mali relaxed the enforcement of mining codes which led to renewed foreign interest and investment in the mining industry. Gold is mined in the southern region and Mali has the third highest gold production in Africa (after South Africa and Ghana). The emergence of gold as Mali's leading export product since 1999 has helped mitigate some of the negative impact of the cotton and Côte d'Ivoire crises. Other natural resources include kaolin, salt, phosphate, and limestone.
Electricity and water are maintained by the Energie du Mali, or EDM, and textiles are generated by Industry Textile du Mali, or ITEMA. Mali has made efficient use of hydroelectricity, consisting of over half of Mali's electrical power. In 2002, 700 GWh of hydroelectric power were produced in Mali.
The Malian government participates in foreign involvement, concerning commerce and privatization. Mali underwent economic reform, beginning in 1988 by signing agreements with the World Bank and the International Monetary Fund. During 1988 to 1996, Mali's government largely reformed public enterprises. Since the agreement, sixteen enterprises were privatized, twelve partially privatized, and twenty liquidated. In 2005, the Malian government conceded a railroad company to the Savage Corporation. Two major companies, Societé de Telecommunications du Mali (SOTELMA) and the Cotton Ginning Company (CMDT), were expected to be privatized in 2008.
Mali is a member of the Organization for the Harmonization of Business Law in Africa (OHADA).
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