The ratings on Burkina Faso are constrained by: A low level of development and very narrow economic base. GDP per capita is low, at an estimated $365 in 2004, and social indicators are very weak. The economy is highly dependent on cotton and external aid. The country's landlocked position and infrastructure deficiencies, location in the drought-prone Sahel region of West Africa, and high input costs (such as for electricity, water, and telecommunications) are hindrances to diversification. Large fiscal imbalances. The general government deficit is high, at an average 4.8% of GDP in 1999-2003, and is expected to be 4.5% in 2004-2005. These deficits are higher than those of peers, and mainly financed by concessional external borrowing. Reflecting the narrow economic
