Public investment, private investment, and participation for all: that’s what Christine Lagarde, managing director of the International Monetary Fund, advises for Mali’s continued economic recovery.

In a speech Jan. 9 to Mali’s Economic, Social and Cultural Council, Lagarde suggested Mali needs a policy agenda that includes three P’s, as reported in All Africa.

First, Mali needs to increase tax revenue. “At 15 percent, Mali’s tax revenue-to-GDP ratio is lower than it should be,” Lagarde said. She advises broadening the tax base, phasing out exemptions and increasing compliance measures.

The country should also eliminate subsidies such as the energy subsidy, freeing up that money to be used in improving the economy.

Reforms should include improving governance and public financial management, including addressing corruption. Meanwhile, she added, tightening expenditures will “…reassure international donors about Mali’s capacity to manage aid inflows, without jeopardizing hard-won gains in debt sustainability.”

The business environment must improve for the conditions to be right for the private sector to have an impact, Lagarde said.

“In the IMF’s experience, financial sector development and increased access to financial services can be a critical factor in promoting private sector expansion and the economy’s progress,” Lagarde said. “By providing a larger pool of funding and more diverse products, financial development fosters private sector growth and can help meet infrastructure needs.”

Currently, only 10 percent of Mali’s population has a bank account, said Lagarde. If more people had accounts, and more money was deposited into banks, the banks would be more willing to provide credit and loans.

The third P, participation of all, means that growth is inclusive and equitable for everyone. Agricultural incomes have improved in recent years, raising the income of rural people, while urban incomes have lagged, Lagarde said.

“Going forward, the benefits of economic growth need to be more broadly shared,” she said. Opportunities for women to share equitably in the growth are important, Lagarde said, because economies that hold women back tend to have lower per capita income.

“Women are key to unlocking Mali’s potential,” Lagarde said as she ended her speech.