Senegal
Poverty Reduction Strategy Paper: Second Annual Progress Report
Author:
International Monetary Fund
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Publication Date:
27 Feb 2006
eISBN:
9781451833997
Language:
English
Keywords:
ISCR; CR; private sector; steering committee; public expenditure; debt relief; sustainable development; operating budget; PRSP target
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This paper presents the Annual Progress Report (APR) 2004 on Senegal’s Poverty Reduction Strategy Paper (PRSP). The APR analyzes the 2004 macroeconomic framework for the purpose of comparing the forecasts under the various scenarios and the results obtained. Budgetary programming and execution are examined, to verify their compliance with the Priority Action Plan (PAP) of the PRSP for 2004. The APR reviews policies and reforms undertaken in all the sectors, and details the execution of the PRSP matrix of measures. It also studies changes in PRSP indicators and assesses the trajectory followed in meeting objectives.

Abstract

This paper presents the Annual Progress Report (APR) 2004 on Senegal’s Poverty Reduction Strategy Paper (PRSP). The APR analyzes the 2004 macroeconomic framework for the purpose of comparing the forecasts under the various scenarios and the results obtained. Budgetary programming and execution are examined, to verify their compliance with the Priority Action Plan (PAP) of the PRSP for 2004. The APR reviews policies and reforms undertaken in all the sectors, and details the execution of the PRSP matrix of measures. It also studies changes in PRSP indicators and assesses the trajectory followed in meeting objectives.

Acronyms and Abbreviations

AFDS:

Agence du Fonds de Développement Social (Social Development Fund Agency)
ACBF:

African Capacity Building Foundation
APIX:

Agence pour la Promotion des Investissements (Agency for Investment Promotion)
ADB:

African Development Bank
BCI:

Consolidated Investment Budget
WB:

The World Bank
CPAR:

Country Financial Accountability Assessment
CSC/DSRP:

Labor Union Committee for Monitoring the Fight against Poverty
COLUPAS:

National Civil Society Association to Fight Poverty
CRP:

Regional Steering Committee
CRSE:

Regional Monitoring/Assessment Committee
CSPLP/MEF:

Poverty Reduction Program Monitoring Unit/Ministry of the Economy and Finance
CTRS:

Temporary Cost of Structural Reforms
DDI:

Direction de la Dette et de l'Investissement (Directorate of Debt and Investment)
DGF:

Direction Générale des Finances (General Directorate of Finance)
DPS:

Direction de la Prévision et de la Statistique (Directorate of Forecasting and Statistics)
ECOWAS:

Economic Community of West African States
EU:

European Union
FDS:

Fonds de Développement Social (Social Development Fund)
GESDEP:

Gestion des Dépenses Publiques (Public Expenditure Management)
GIF:

Groupe d'Initiative des Femmes (Women's Initiative Group)
GDP:

Gross Domestic product
HIPC:

Highly Indebted Poor Country
IGF:

Inspector General of finance
LFR:

Loi des Finances Rectificative (Supplementary budget)
LOASP:

Agriculture, Forestry and Livestock Raising Framework Legislation
MEF:

Ministry of the Economy and Finance
NTIC:

New Information and Communications Technologies
OCB:

Basic Community Organizations
MDG:

Millennium Development Goals
PAP:

Priority Action Plan
PAPEL:

Program in Support of Livestock Raising
PDEF:

Ten-Year Education and Training Program
PDIS:

Integrated Health Development Program
PLCP:

Program to Fight against Poverty
PRSP:

Poverty Reduction Strategy Paper
PTIP:

Three-Year Public Investment Program
PNDS:

National Health Development Program
SME/SMI:

Small and Medium-Sized Enterprises/ Small and Medium-Sized Industries
PNIR:

National Rural Infrastructure Program
POR:

Regional Operations Plan
POS:

Sector Operations Plan
SCA:

Accelerated Growth Strategy
SIGFIP:

Integrated Public Finance Management System
SRP/PRS:

Poverty Reduction Strategy
TOR:

Terms of Reference
TOFE:

Government Flow of Funds Table
VAT:

Value Added Tax
WAEMU:

West African Economic and Monetary Union
UNDP:

United Nations Development Program
US:

United States

INTRODUCTION

CONTEXT

At the end of a long, participatory process, Senegal drew up a Poverty Reduction Strategy Paper (PRSP) adopted by the government in 2001 and approved by the Bretton Woods institutions in December 2002.

On the basis of this participatory process, which establishes its legitimacy, the PRSP is the government's reference framework for formulating economic policy for growth and the fight against poverty. As such it serves as a basis on which to build sector development plans and investment programs, and it constitutes (i) a coordination tool for motivating partnership among the various development participants; (ii) an instrument for mobilizing resources and refocusing government development actions on clearly defined goals provided with performance and impact indicators; and (iii) a lever for effective community development.

Within the framework of implementing the PRSP, the government agreed to draw up an annual report describing its progress in undertaking actions contained in the Poverty Reduction Strategy (PRS). This document should:

  • ■ Review the available investment programs;

  • ■ Describe the extent of mobilization of resources from the government’s development partners and analyze the results for each participant, underscoring performance features and limitations;

  • ■ Indicate the progress in executing policies, programs and projects (PPP) contained in the PRSP;

  • ■ Analyze changes in PRS monitoring indicators;

  • ■ Analyze how the PRSP is being implemented and monitored, underscoring results and limitations;

  • ■ Analyze adherence to guiding principles, including concomitant issues of gender, decentralization, outsourcing, participation, and transparency in implementation;

  • ■ Analyze and assess the degree to which development partners are aligned with the principles and objectives of the PRSP (design of support and assistance programs);

  • ■ Analyze the degree to which Civil Society Organizations (CSOs) are aligned with the PRSP, underscoring evidence of results achieved, factors abetting performance and limitations;

  • ■ Formulate recommendations for continued implementation and review of the PRSP.

Creation of this second progress report is undertaken in the context of preparing a new PRSP.

METHODOLOGY

The 2004 progress report was generated using a cooperative, participatory approach. Work on the report began with a workshop bringing together nearly 200 participants representing government, the private sector, organizations from the entire spectrum of civil society, development partners and regional participants. The workshop examined the terms of reference of the process, approved the methodology to be used in generating the report, and created five (5) commissions representing the groups that participated in the design and execution phases, namely government, the private sector, civil society, local governmental bodies, and development partners.

The commissions then worked in thematic sub-groups, each with responsibility for producing their respective contributions with the assistance of a consultant. Each commission was free to choose its area of concentration. Consultants were made available to the commission on Organizations of Civil Society,1 to provide support regarding some specific matters.

The process of the commissions’ work can be summarized in the following phases:

  • ✓ Sub-group study of themes chosen by each commission;

  • ✓ Sharing of sub-group results;

  • ✓ Writing of the commission report by the consultant or by the commission itself (the case of the civil society commission);

  • ✓ Validation of each commission’s report during a workshop;

  • ✓ Production of a summary report based on contributions by the commissions.

In this undertaking, which allowed the participants to carry out their work in complete independence, the consultants kept to a support and logistics role, in keeping with their mandate, placing at the disposal of the working groups their expertise and useful information for developing their contributions.

This progress report has five parts. Part 1 analyzes the 2004 macroeconomic framework for the purpose of comparing the forecasts under the various scenarios and the results obtained. In Part 2 budgetary programming and execution are examined, to verify their compliance with the Priority Action Plan (PAP) of the PRSP for 2004. Part 3 reviews policies and reforms undertaken in all the sectors, and details the execution of the PRSP matrix of measures. Part 4 studies changes in PRSP indicators and assesses the trajectory followed in meeting objectives. Part 5 analyzes the activities of the bodies charged with steering, execution and monitoring/assessment, taking into consideration the various sector and geographical aspects. Finally, the report concludes with recommendations intended to improve implementation of the PRSP and facilitate achieving its objectives.

PART I. ANALYSIS OF THE MACROECONOMIC FRAMEWORK

Assessment of the implementation of the 2004 poverty reduction strategy comes in a context of improved economic and financial performance by Senegal, with growth of real GDP estimated at 6 percent and attainment of the HIPC Initiative completion point in 2004.

Analysis of this performance against the pattern of scenarios set forth in the PRSP macroeconomic framework will enable us to assess the compliance of economic policy with the goals of poverty reduction as specified in the PRSP.

I.1. Macroeconomic Performance and Poverty Reduction

Estimated at 6 percent in 2004, compared to 6.5 percent in 2003, the GDP growth rate remained below the 7 percent minimum growth objective required to reduce poverty by half by the year 2015, in line with Millennium Development Goals (MDGs) to with Senegal subscribes.

If 2004 economic growth was based on the sound performance of the secondary and tertiary sectors, its weakening compared to 2003 (a catch-up year after the slow-down of 2002) was due to underperformance of the primary sector.

Table 1.

Change in sector performance, 2001–2004

(Growth rate by sector as a percentage)

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Source: Situation Economique et financière en 2004 et perspectives en 2005 (DPS)

Year 2004 primary sector growth is estimated at 2.3 percent, compared to 19.8 percent in 2003, the result of reduced dynamism of the agriculture subsector, which grew only 2 percent following the 21 percent drop in cereals production in the wake of the grasshopper threat in the north of Senegal. By contrast, livestock raising increased by 5 percent in 2004 with improved yields resulting from the policy of promoting local meat production.

As regards the fishing industry, production is expected to have dropped by 5 percent in 2004 as the result of reduced activity by artisanal fishermen, following enforcement of the government-imposed limitations, in compliance with the objectives of sustainable development as set forth as a priority in the PRSP (Cf. PRSP, p. 45).

Similarly, the policy of maintaining an ecological balance accounted for growth of 4 percent in the forestry sector in 2004.

Secondary sector growth is estimated at 6.7 percent thanks to the healthy condition of all its subsectors, with the exceptions of mining and oil extraction. Despite full-year availability of phosphate at the Tobène quarry, the mines and quarries subsector posted a decline of 5.2 percent in 2004, because of the fall off of extraction activity in other mines and quarries—in particular salt—as well as a slight drop in phosphate output.

Oil extraction activities continue to trend downwards, as they have since 2002. After declines of 9.6 percent in 2002 and 22.8 percent in 2003, the sector fell a further 16 percent in 2004. This under-performance was due to an inadequate supply of seeds intended for grinding, itself due to the low volume of the 2003 harvest and exhaustion of the groundnut seed inventories at oil extraction facilities.

The energy subsector maintained a satisfactory level of activity in 2004, with growth of 3.4 percent. This was due to investments made to boost output capacity and improve the management of the principal enterprise, to which can be added good performance in rural electrification.

In the building and public works subsector, growth was very sustained as the result of public investment in basic infrastructure and dynamic housing construction. This subsector recorded an increase of 13 percent in 2004, compared to 10.5 percent in 2003.

Despite the persistent unfavorable environment for phosphoric acid in 2004, the other industries recovered their dynamism, growing by 7.4 percent, thanks to gains in the construction materials subsector, the subsectors of oil refining and other food industries. In addition, activity in the basic chemicals subsector started recovering in the second quarter of the year.

In the tertiary sector, growth reached 7.4 percent in 2004, driven essentially by the transportation and telecommunications subsector, which posted a gain of 10.6 percent, due to expansion of mobile telephony and an increase in telephone-based services in the wake of progress made in liberalizing this sector.

Trade activities maintained their pace of growth, posting an increase of 6.7 percent compared to the 4.2 percent of 2003, the result of better supplied markets that reflected positive behavior of all the sectors.

Health and education services gained 4 percent and 7 percent, respectively, as the result of efforts made in these priority sectors, in particular strengthening of the work force through a civil service recruitment policy contained in the PRSP in support of the “Access to basic social services and strengthening of capacities” component (See PRSP, p. 50).

As regards price levels, the 2004 increase in the GDP deflator is estimated at 1.9 percent, compared to 0.9 percent in 2003. This increase was partly due to the sudden increase in the cost of a barrel of crude oil, reaching historic highs (e.g. US$ 50 in September), dampened however by depreciation of the dollar against the euro. Nevertheless, the impact of the price of oil on consumption remains moderate, thanks to a persistent downward trend in the prices of local products. Over all, the rate of inflation as measured by the Harmonized Consumer Price Index was 0.5 percent in 2004, well below the 3 percent criterion contained in the WAEMU convergence policy framework.

As concerns demand, final consumption in real terms grew more slowly than GDP in 2004 (5.4 percent). This state of affairs resulted from the slowing of the pace of private consumption—5 percent in 2004 versus 7 percent in 2003. However, public consumption rebounded in 2004 with an increase of 8 percent. Overall, domestic saving improved, posting a rate of 9.7 percent compared to 7.7 percent in 2003. Nevertheless, this rate remains slightly lower than the rate forecast in the trend scenario of the PRSP framework, i.e., 10.3 percent. Still, the national saving rate reached 16.2 percent, or 2 points higher than the rate arrived at in the optimistic scenario of the PRSP: this is explained by dynamism in resources received from abroad.

In 2004, investment increased 7.2 percent in real terms, for an investment rate of 23 percent, compared to 20.7 percent in 2003. This performance also exceeded the 21.2 percent objective set in the PRSP optimistic scenario. Overall, domestic demand grew by nearly 6 percent in real terms.

As for net external demand, exports of goods and services increased by 4.4 percent in real terms, compared to an increase in the volume of imported goods and services of 2 percent. The 2004 trade balance is estimated at a negative CFAF 484.7 billion, compared to a negative CFAF 469.9 billion in 2003, or a deterioration of CFAF 14.8 billion, reflecting an increase in the value of imports of goods (CFAF 59.7 billion) greater than the value of exports (CFAF 44.9 billion). Overall exports of goods2 are estimated at CFAF 775.5 billion in 2004, up 6.1 percent compared to their level in 2003 (CFAF 730.6 billion). Slightly higher than the trend scenario (6.1 percent), the growth of Senegal’ exports did not reach the average scenario rate, and fell far short of the optimistic scenario rate.

By contrast, imports of goods in 2004 reached CFAF 1,260.1 billion, compared to the CFAF 1,200.5 billion of the previous year, for an increase of 5 percent. Growth of imports was therefore between the rate required by the average scenario (4.9 percent) and the rate set in the optimistic scenario (8.2 percent). It resulted mainly from the increase in purchases of petroleum products, intermediate goods and capital goods. In 2004, the oil bill is estimated at CFAF 270.7 billion, compared to CFAF 230.7 billion in 2003, for an increase of 17.3 percent, due to higher prices softened by the depreciation of the US dollar. In the final analysis, the price of petroleum products expressed in CFA francs rose by 19.1 percent in 2004. Imports of capital goods and intermediate goods posted respective increases of 7.2 percent and 8.4 percent. On the other hand, the cost of food fell by CFAF 7.4 billion as a result of the drop in rice imports between 2003 and 2004 (by 14.4 percent).

Regarding the status of net services and revenues, the negative balance of services stood at CFAF 14.7 billion in 2004, compared to a negative 13.1 billion in 2003. This state of affairs is thought to be the result of the combined effect of increased outflows for freight services and an increase in imports.

Net revenues decreased by CFAF 6.1 billion in 2004, building a deficit of CFAF 85.2 billion, compared to a deficit of CFAF 79.1 billion in 2003.

The surplus of current transfers is evaluated at CFAF 319.2 billion for 2004, versus CFAF 308.3 billion for 2003, an increase of CFAF 10.9 billion, the result in particular of a rise in private transfers during the period from CFAF 241 billion to 252.4 billion. Current public transfers, on the other hand, fell from CFAF 67.3 billion in 2003 to 66.8 billion in 2004, a decrease of CFAF 0.5 billion.

As for the current balance, the current deficit in GDP terms dropped from 6.9 percent in 2003 to 6.5 percent of GDP in 2004. The current account excluding grants was recorded as a negative 8.3 percent of GDP, whereas the PRSP forecast called for a negative 8.5 percent in the optimistic scenario and negative 7.7 percent in the average scenario. The trend reflected that of all the components of the current account.

Capital transfers in 2004 are evaluated at CFAF 113.1 billion, versus CFAF 87.6 billion in 2003, for an increase of CFAF 25.5 billion, resulting from the mobilized resources within the framework of the HIPC Initiative after reaching the completion point in April 2004 (CFAF 41.9 billion in 2004 versus 20.7 billion in 2003). In similar fashion, the surplus balance of the financial operations account grew by CFAF 57.3 billion, attributable to both net public capital and private capital. In fact, net public capital almost doubled as CFAF 25.4 billion were mobilized in the form of budgetary assistance, while CFAF 108.9 billion were mobilized as loans to projects, versus CFAF 90.9 billion in 2003.

Private capital also posted a gain—of CFAF 28.2 billion—resulting essentially from the doubling of direct investments, which rose from CFAF 29 billion in 2003 to CFAF 61.5 billion in 2004.

Table 2.

Scenarios of PRSP framework and 2004 results

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Source: Situation économique et financière en 2004 et perspectives en 2005 (DPS)

Despite these performances, the growth rate remains below the objective of 7 to 8 percent needed to reduce poverty by half before 2015, in line with MDG (Cf. PRSP, p. 13).

Among the causes of limited growth is the lack of dynamism in private investment as the result of the low yield on investments in the productive sector, notably the case of direct foreign investment. In this regard, the reforms initiated in 2004 within the framework of the President’ Investment Council (anti-corruption law, adoption of a series of 35 tax measures favorable to investment included in the Budget Law of 2004) should help strengthen the level of direct foreign investment.

Among the factors explaining the brake on investments are: difficult access to real property and congestion in the capital, with its consequences for urban mobility.

I.2. Budget Performance and Poverty Reduction

In budgetary terms, the second year of PRSP implementation was marked by continued fiscal consolidation thanks to improved collection of receipts and prudent public expenditure management, combined with a satisfactory degree of execution.

I.2.1. Budget receipts

Chart 1.
Chart 1.

Change in tax receipts (2002–2004)

(in CFAF billions)

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

Source: Situation économique et financière en 2004 et perspectives en 2005 (DPS)

At end-December 2004, total budget receipts were estimated at CFAF 771.6 billion, compared to CFAF 720 billion in 2003, for an increase of CFAF 51.6 billion in absolute terms and 7.2 percent in relative value.

Year 2004 tax receipts were estimated at CFAF 736.2 billion, versus CFAF 676.9 billion in 2003, or an increase of CFAF 59.3 billion in absolute value and 8.8 percent in relative value. This good performance is attributable to good levels of direct and indirect tax inflows.

Direct taxes of CFAF 178.7 billion were posted in 2004, versus CFAF 159.2 billion in 2003, for an increase of CFAF 19.5 billion, as collections of corporate taxes improved.

Chart 2.
Chart 2.

Breakdown of budget receipts

(In CFAF billions)

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

Source: Situation économique et financière en 2004 et perspectives en 2005 (DPS)

Indirect taxes rose from CFAF 487.1 billion in 2003 to CFAF 522.9 billion in 2004, an improvement of CFAF 35.8 billion in absolute value and 7.3 percent in relative value. Taxes on goods and services (including VAT on imports) reached an estimated CFAF 406 billion in 2004, versus CFAF 371.5 billion in 2003, or a rise of CFAF 34.5 billion.

VAT on imports increased from CFAF 148.2 billion in 2003 to CFAF 156 billion in 2004, an improvement of CFAF 7.8 billion. The amount of port duties was evaluated at CFAF 116.9 billion in 2004, compared to CFAF 115.6 billion in 2003, a moderate rise of CFAF 1.3 billion. This marginal increase was the result essentially of the impact of the measure limiting the importing of vehicles more than five years old imposed by the government as an environmental measure.

Registration fees and stamp taxes in 2004 were estimated at CFAF 31.3 billion, compared to CFAF 30.6 billion in 2003.

Overall, the tax burden stood at 18.3 percent In 2004, versus 18.2 percent in 2003, i.e. above the WAEMU minimum of 17 percent. Continuation of a satisfactory tax burden results from an improved tax base, improved collections strategies, and better identification of the entire tax-paying pool, the outcome of implementation of a system for registering potential taxpayers from the informal sector.

Non-tax receipts in 2004 were estimated at CFAF 35.4 billion, versus CFAF 43.1 billion in the previous year.

I.2.2. Expenditures

Total expenditures and net lending were estimated at CFAF 950.8 billion, versus CFAF 850.1 billion in 2003, for an increase of CFAF 114.8 billion in absolute value and 11.8 percent in relative value.

Chart 3.
Chart 3.

Change in capital expenditures

(In billions of CFAF)

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

[Capital expenditure] Source: Situation économique et financière en 2004 et perspectives en 2005 (DPS)

Ordinary expenses in 2004 were estimated at CFAF 561.5 billion, an increase of CFAF 32 billion over the preceding year. This increase was due essentially to a wage bill costing CFAF 223.9 billion, versus CFAF 203.7 billion in 2003, due to the special civil service recruitment program involving 5,000 agents yearly, contributing to the implementation of the poverty reduction strategy. The ratio of the wage bill to tax receipts rose slightly, from 30.12 percent in 2003 to 30.4 percent in 2004. This rate exceeds the projections in the 2004 PRSP (28.2 percent) but remains well below the 35 percent ceiling that figures among WAEMU convergence criteria.

Other current expenditures in 2004 totaled CFAF 291 billion, compared to 281.2 billion in 2003, or a slight rise of about 3.5 percent.

Treasury special and corresponding accounts showed a surplus of CFAF 0.8 billion. Capital expenditures rose by 9.6 percent over the preceding year, totaling CFAF 370.9 billion, including CFAF 172.9 billion financed internally (excluding HIPC funding). This increase in capital expenditures was due essentially to government concern about basic social sectors targeted in the PRSP enabling it to achieve MDG. The ratio of capital expenditures financed internally to tax receipts is about 24 percent, i.e. beyond the minimum threshold of 20 percent called for by WAEMU convergence criteria.

Overall, with the 2004 budget executed, the budget balance excluding HIPC and CTRS3, showed a surplus of 1.4 percent of GDP. The overall budget balance (including grants) posted a deficit of 2.7 percent of GDP. Excluding grants, the deficit was 4.4 percent of GDP.

Financing the budget deficit in 2004 called on net domestic resources totaling [-] CFAF 20.1 billion, whereas external financing drew upon an estimated CFAF 129.1 billion, made up exclusively of project loans.

Generally speaking, public expenditure management has been satisfactory. The tax burden objective was met, as were the objectives regarding capital expenditures financed internally and in relation to tax receipts.

Table 3.

Budget indicator scenarios and 2004 results

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Source: DPS and PRSP
Chart 4.
Chart 4.

Breakdown of capital resources, 2002–2004

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

I.2.3. Public debt

Following its eligibility for the Highly Indebted Poor Country Initiative (HIPC), enhanced in June 2000, Senegal reached the Completion Point in April 2004, on the basis of the quality of its Poverty Reduction Strategy Paper, combined with vigorous efforts in economic and structural reform acknowledged by its sovereign creditors.

In June 2004, the creditor countries, members of the Paris Club, decided to cancel Senegal’s debt in the amount of US$ 94 millions (net current value), as their contribution within the framework of the HIPC Initiative. In addition to this sum, most of the creditors agreed to grant, on a bilateral basis, further debt relief totaling USD 336 million at net current value. The decisions to forgive debt often exceeded the countries’ commitments.

Table 4 shows that some countries have even cancelled the entirety of their debts. The multilateral creditors, some of whom offered interim assistance, have freed up their share of debt relief.

Table 4.

Orders to pay and collections of HIPC savings for 2000–2005, by donor

(In CFAF billions)

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Source: DDI

This debt relief helps make Senegal’s public debt bearable. The net current value of the foreign public debt compared to export receipts (whose target is set in the HIPC Initiative framework at 150 percent) fell from 140.1 percent in 2003 prior to arrival at the Completion Point, to 131.7 percent in 2004.

Regarding total public debt, its current net value (2004) represents 133.9 percent of export receipts, versus 141,7 percent in 2003.

At the present time, the ratio of external public debt to GDP is 42.9 percent, versus a community ceiling of 70 percent set by WAEMU.

I.3. Monetary situation

Senegal’s 2004 monetary situation was characterized by an increase in net foreign assets totaling CFAF 103.1 billion, an increase of 3.8 percent in domestic credit, and a 12.8 percent surge in the money supply.

I.3.1. Net foreign assets

The net external position of Senegal’s monetary institutions increased from CFAF 386.5 billion in December 2003 to CFAF 489.6 billion in December 2004, for an improvement of CFAF 103.1 billion, wholly attributable to the central bank.

Official net foreign assets are expected to rise from CFAF 187.3 billion to CFAF 290.3 billion, as the result essentially of an increase of CFAF 70.7 billion in the central bank’s external cash account and the CFAF 27.1 billion decrease in commitments to the IMF. For its part, the net position in foreign currency of deposit banks stood at CFAF 199.2 billion in 2004, i.e. the same level as a year ago.

I.3.2. Domestic credit

Domestic credit is expected to increase by CFAF 32.1 billion, and stand at CFAF 880.9 billion in December 2004, compared to CFAF 848.8 billion in December 2003, as the consequence of the increase in credits to the economy.

The government’s net position improved over the period. In December 2004, it was an estimated CFAF 24.0 billion, down 40.2 billion when compared to December 2003 (CFAF 64.2 billion), as the result of a drop in government bank debt of CFAF 29.4 billion, combined with an increase of CFAF 10.8 billion in claims.

Government commitments toward the banking system declined, despite the issuance of CFAF 45.3 billion in Treasury bonds, including CFAF 33.9 billion held by local banks. This development stemmed essentially from the decrease in funds retroceded from the IMF, redemption of government securities, and payments made on the consolidated statutory deficit.

The rise in government bank assets followed upon greater deposits with the central bank.

Credits to the economy grew by CFAF 72.3 billion, from CFAF 784.6 billion to 856.9 billion, as ordinary credits increased—projected agricultural credits were lower. Short-term credit increased by 4.9 percent, whereas medium- and long-term credits soared at the exceptional rate of 13.7 percent.

Ordinary credits were estimated at CFAF 842.9 billion at end-December 2004, compared to the CFAF 781.0 billion estimated at end-December 2003, a gain of CFAF 61.9 billion. The entire productive system profited from this increase. Farm credits rose from CFAF 3.6 billion in December 2003 to CFAF 14 billion in December of 2004.

1.3.3. The money supply

In 2004, the money supply grew by 12.8 percent. This expansion of overall liquidity benefited only deposits made at banks and Post Office Checks (CCP) by individuals and private enterprises: these rose from CFAF 943.1 billion to CFAF 1,101.5 billion. Sight deposits increased by 13.7 percent while time deposits grew by 20.3 percent. On the whole, private deposits increased by 16.8 percent between December 2003 and December 2004. As for currency in circulation, it shed CFAF 15.5 billion between 2003 and 2004.

PART II. ANALYSIS OF BUDGETARY PROGRAMMING AND EXECUTION

II.1. Programming

Because the PRSP is not a specific project for fighting poverty, nor a sector program, but rather a reference and orientation framework for sector and cross-sector policies aimed at growth and fighting poverty, evaluating its execution requires a holistic approach. This approach takes as its base the Priority Action Plan (PAP), which sets forth for each strategic approach and each sector, the corresponding priority goals and lines of action, thereby translating these goals into investment projects.

Drawing up the PAP took account, first of all, of existing programs and projects4 already in harmony with the priority objectives. The next step consisted in evaluating the funding gaps to be filled every year over the period 2003–2005. These additional needs are to be financed from resources resulting from debt relief (HIPC), domestic resources, and partner contributions, which would align their support with the action plans of the PRSP.

II.1.1. Matching the 2004 budget to the action plans of the PRSP

The Priority Action Plan (PAP) lists all of the actions corresponding to the objectives envisaged in the sectors chosen to embody the three strategic approaches to poverty reduction.5 To make the Poverty Reduction Strategy (PRS) operational, all the technical ministries drew up plans for sector operations. In line with the Circular Letter distributed by the MEF at the start of the budget cycle, the ministerial departments were asked to make budget proposals on the basis of PRSP guidelines.

To measure the extent to which the budget takes the actions into account, the method used consisted in locating the PAP action plans on the list of projects appearing in the 2004 BCI. This database was then submitted to the various commissions to validate the classification made and to serve as a basis in their work.

On the whole, the analysis shows that, out of a total of 79 action plans appearing in the PRSP, 54 were taken into account in the 2004 BCI, or a 68.35 percent rate for all the three strategic approaches contained in the PRSP.

However, this taking into account varies with the approach under consideration. For instance, “Wealth Creation” and “Strengthening capacities and access to basic social services” are well represented as taken into account, with rates of 79.31 percent and 85.19, respectively. But the approach entitled “Improved standard of living for vulnerable groups” was taken into account by the 2004 BCI only 34.78 percent of the time.

Table 5.

PRSP action plans taken into consideration in the budget, by strategic approach

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Sources: PRSP and 2004 BCI

II.1.2. Analysis of budget programming by strategic approach

The detailed analysis of strategic approaches taken into account by the various sectors provides insight into which sectors benefit from the most projects in the 2004 BCI. The Priority Action Plan (PAP) includes twenty-two (22) targeted sectors/domains/groups distributed among the three strategic approaches used by the Poverty Reduction Strategy (PRS).

Each sector/domain/group target was the subject of a certain number of priority actions that might or might not be taken into consideration by the 2004 BCI. The tables appearing in the annex give the rate at which the strategic approaches are reflected in each sector.

For the “Wealth creation” approach, the typology of sectors/domains/groups in descending order of consideration is as follows:

  • ■ High level of consideration by the sector/domain/group: these are the agriculture sector, livestock raising, fishing, the trades, energy, industry and assistance to SMEs;

  • ■ Average level of consideration by sector/domain/: support infrastructures and mines;

  • ■ Left out of consideration by sector/domain/group: trade, the private sector, employment.

For the “Strengthening capacities and promotion of basic social services” approach, the sectors are generally well taken into account by the BCI. This approach is an important means for attaining the Millennium Development Goals, especially goals 2, 3, 4, 5 and 6.

As regards this approach:

  • - All actions bearing on education/training (MDGs 2 and 3), health (MDGs 4, 5 and 6), and drinking water (MDG 2) are covered;

  • - The area of natural resources is taken into consideration in 71 percent of the actions, with 5 out of 7 action plans financed;

  • - Contrasted with the preceding, sanitation is taken into consideration by only a single action plan out of three.

MDG and PRSP

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Source: CSPLP

Regarding the “Improvement of living conditions of vulnerable groups” approach:

  • - The “handicapped” and “elderly” groups are not taken into consideration in the 2004 BCI.

  • - By contrast, housing for vulnerable groups did benefit from a BCI project.

  • - Priority actions bearing on the targeted groups “children” and “women” were covered 33 percent and 67 percent, respectively.

  • - In contrast to the preceding, most action lines have not been taken into consideration, and in particular the following: (i) drug danger awareness program; (ii) care for children in vulnerable circumstances; (iii) strengthening ability of underprivileged families to care for children; (iv) support to organizations and associations caring for Taliban; (v) promoting social integration of children; (vi) special equipment for the handicapped and reduced costs and services; (vii) specialized equipment in school and university infrastructures; (viii) promotion of universal schooling of handicapped children; (ix) promotion of access of handicapped persons to employment; (x) installation of special geriatric health facilities; (xi) fund for promoting interests of the elderly.

Table 6 shows the allocation of resources according to the sectors of each strategic approach. Overall, the BCI amount allocated to the PAP was CFAF 236,301 [million], including CFAF 91,356 [million] from domestic resources, or 38.7 percent in government contribution to funding of BCI projects detailed in the PAP.

Table 6.

Allocation of resources by sector and by strategic approach

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Source: 2004 BCI

II.1.3. Analysis of regional budget allocations

The PTIP coding system does not enable geographic location of projects. This limitation is made up for by the expenditure monitoring software application used by the Budget Directorate. This system includes one code for reach region and another code for multiple regions. Nonetheless, this coding system has limits in that the so-called national code refers to a variety of realities6. As a consequence, it has proved difficult to disaggregate the allocations and expenditures by region based on data provided by the SIGFIP.

Accordingly, the regional authorities undertook a complementary study to identify projects under way in their own regions.

According to information provided by the Budget Directorate, geographic location of investments is now possible using the new budget nomenclature in force since passage of the 2005 Budget Law.

Table 7, below, based essentially on data provided by regional institutional organizations, gives a summary view of the situation: the analysis of this information points to a three-fold regional grouping:

  • - Regions well provided with projects: Saint Louis (33 projects), Matam (28 projects) and Kolda (28 projects);

  • - Regions with a moderate number of projects: Fatick (26 projects), Dakar (24 projects), Diourbel (24 projects) and Kaolack (24 projects);

  • - Regions with few projects: Tambacounda (22 projects), Louga (22 projects), Ziguinchor (19 projects) and Thiès (18 projects).

Table 7.

Regional breakdown of projects executed in the 2004 BCI in Senegal’s eleven (11) regions

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As for strategic approaches, we note that:

  • ✓ “Wealth creation” (including the large sectors of agriculture and infrastructures) was awarded 119 projects (i.e. more than 44 percent of the total).

  • ✓ “Strengthening capacities” benefited from 97 projects, or 36 percent of the total.

  • ✓ “Support to vulnerable groups” was awarded 52 projects, or less than 20 percent of the total.

This imbalance is mostly attributable to the non-availability of projects in certain regions, as well as the importance given to the priority sectors.

II.2. Execution of projects included in the PAP in 2004

In order to attain the major PRSP objective of a significant reduction of poverty, Senegal is assisted by its development partners in covering the funding needs of the projects already identified and described in the PAP. The PAP funding sources are made up of the state contribution and the contribution of the development partners. Savings resulting from debt relief—the specific concern of the PRSP—contribute to strengthening project funding, since savings are expected to be allocated to programs promoting growth and poverty reduction. Analysis of executed projects will take into consideration these various sources.

In the following section the execution of projects is analyzed according to the funding source:

  • ■ For project execution funded internally, information comes from the document “la situation d’exécution budgétaire 2004” (“Status of year 2004 budget execution”), provided by the General Directorate of Finance (DGF);

  • ■ For HIPC resources, data come from the final report of the oversight committee on HIPC resources of the Directorate of the Debt and Investment (DDI).

  • ■ For projects executed using foreign resources, the data also come from the DDI.

II.2.1. Budgetary execution of projects funded internally

Information on the amounts executed from internal resources are provided by the database of the Integrated Public Finance Management System (SIGFIP). Analysis of the execution enables us to identify two groupings of projects: some PAP projects were in fact located in the SIGFIP database, whereas others are not, despite the amount of resources allocated to them.

The analysis will bear solely on projects found in that database. These projects include those voted on in the initial budget law and the 2004 supplemental budget law (LFR 2004). This procedure may have as a consequence a disparity between the amounts presented in the table summarizing the sector allocations and the amounts used in analysis of the project execution.

Projects not recorded in the SIGFIP are listed in the tables in Annex 9.

Methodology used in analyzing the execution of projects funded domestically

In evaluating the execution of BCI projects detailed in the PAP, data were collected bearing on “la situation d’exécution budgétaire 2004”, provided by the General Directorate of Finance, and from the DDI. Using a budget expenditure nomenclature, the government actions and projects are identified by a code that represents the following features:

  • ■ The ministry or institution responsible for project policy and administrative expertise;

  • ■ The sector that indicates the destination of the expenditure;

  • ■ The PTIP code;

  • ■ The regional location of the project;

  • ■ The nature of the commitment.

For each project, the code can be disaggregated according to the type of data desired. For example, in addition to the PTP code, which will provide the figure for total domestic resources (possibly, along with the 2004 LFR), one can retrieve the regional location of the project, which is helpful in evaluating its execution at the regional level. Given that data structure, the methodology can be summed up as follows:

  • ■ Verify that the BCI projects detailed in the PAP are in fact so detailed. That is how the relationship between the PAP project code and the PRSP priority actions was established.

  • ■ With verification of the relationship between BCI projects and the PAP already made (Paragraph 3.1.2), the result was subject to analysis consisting in identifying, among the projects detailed in the PAP, the ones included in budgetary execution based on domestic funding sources, with the help of the 2004 budget situation garnered through PTP codes.

  • ■ Priority actions and their corresponding sectors not benefiting from a 2004 BCI project were inventoried before proceeding to analyze their breakdown. This analysis enabled identification of the sectors that appear to be rejected from the process of budgeting using domestic resources.

The overall analysis of the financial execution is undertaken according to sectors for each strategic approach. The execution rate defines the relationship between the amount of domestic resources cleared for payment (execution column in Table 4) and the amount of domestic resources envisaged for each sector.

“Wealth creation” strategic approach

Wealth creation is considered the first pillar of the poverty reduction strategy in light of the determinants of poverty identified in Senegal. Given its importance, domestic resources allocated to this strategic approach total about CFAF 39.7 billion, or 35.26 percent of all domestic resources for all the three strategic approaches (CFAF 112,551 billion). These CFAF 39.7 billion are distributed among the sectors of the strategic approaches as follows:

Table 8.

Execution of projects according to the sector “wealth creation” strategic approach

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Source: DGF

The total amount of domestic resources allocated to the “wealth creation” strategic approach is CFAF 39,699 [million]. The rate of execution of projects in the sectors of that approach, funded internally, average about 80.29 percent, or CFAF 31,876 [million].

Satisfactory results are observed in mining, agriculture, energy and industry, with execution rates of 90.32; 94.04; 98.94 and 100 percent.

Note, however, that sectors such as livestock production and assistance to SMEs have relatively low execution rates (10.34 percent and 28.79 percent).

Strategic approach “Strengthening capacities”. Considered the second pillar of the poverty reduction strategy intended to enhance the stock of human social and natural capital, the strengthening of capacities and the promotion of basic social services have mobilized a great deal of domestic resources through its key sectors, namely:

  • (i) Education and training

  • (ii) Health

  • (iii) Drinking water

  • (iv) Sanitation

  • (v) Natural resources and the environment.

Education/training

The bulk of the goals pursued in this approach fall in the Ten-Year Education and Training Program (PDEF). For example, CFAF 49.5 billion of domestic resources are allocated to the PDEF out of a total amount of CFAF 50.7 billion designated for the sector.

The projects are executed using domestic resources in the amount of CFAF 16.51 billion, for an execution rate of 32.55 percent. (See table 9).

Table 9.

Execution of projects according to sector of the strategic approach “strengthening capacities”

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Source: DGF
Drinking water

The drinking water sector posted an execution rate of 73.4 percent (Table 9). Aiming at the general objective of expanding access to drinking water, nearly all the projects in this sector have good execution rates (Cf. table in Annex).

Health

Through the Integrated Health Development Program, the health sector ranks second after Education/training in terms of domestic resources devoted to it. The execution rate of projects in this sector is 65.85 percent (Table 9).

Strategic approach “Improve living conditions of vulnerable groups”

The protection of vulnerable groups is the third pillar of the Poverty Reduction Strategy (PRS). Ad hoc programs have been established to reduce social exclusion of the various social groups (children, women, the handicapped, the elderly). The execution rates for these projects are given in the table below: out of a total amount of CFAF 3,050 billion of domestic resources, CFAF 3,008 billion were executed, for a rate of 98.65 percent. Projects designed for “children” and “Housing for vulnerable groups” are executed at a rate higher than 100 percent, namely 153.30 percent and 126.22 percent, respectively. By contrast, not a single project was funded from domestic resources on behalf of “handicapped persons” or “the elderly.”

Table 10.

Execution of projects according to sectors of the “Improve the living conditions of vulnerable groups” strategic approach

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Source: DGF

II.2.2. Use of resources made available by debt relief (HIPC resources)

One of the main objectives of the PRSP is to mobilize additional resources made available from debt relief within the framework of the HIPC Initiative. These resources must be monitored closely to ensure their de facto allocation to the objectives of the initiative. Allocation of these resources resulted in negotiation in the Priority Action Plan of the Poverty Reduction Strategy Paper, which specifies that:

  • HIPC resources are intended for rural areas (80 percent) and zones surrounding large urban agglomerations (20 percent). They will fill the financing gap for priority actions identified in the sectors of education, health, access to drinking water, sanitation and agriculture (PRSP, Annex 3, PAP, p. 57)

Upon reaching the HIPC Completion Point in April 2004, Senegal benefited from a reduction of its foreign public debt on the order of US$ 430 million in net current value, or US$ 850 million in current dollars, the equivalent of about CFAF 470 billion.7

For 2004, resources drawn from debt relief totaled CFAF 41.9 billion. Projects funded from HIPC resources were the subject of a supplemental budget law (LFR 2004) passed by the National Assembly.8 The amount of CFAF 32,302 billion (77 percent of the total) was allocated to investments in the PRSP priority sectors.

Chart 5.
Chart 5.

Allocation of HIPC resources by sector in 2004

(investment)

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

Source: DDI

Examining the previous chart, we find a concentrated allocation of HIPC resources in two sectors (61.75 percent in agriculture and 23.04 percent in education/training). That breakdown complies with the PAP specifications. However, the shares allocated to health (1.75 percent) and sanitation in zones surrounding major urban agglomerations (0.96 percent) are relatively small.

• Execution of 2004 HIPC resources

Eighty-six percent of these resources were actually deployed. However, the rate of execution varies with the sectors. Maximum implementation (100 percent) was achieved for projects concerned with energy, health, transportation, microfinance and justice.

Substantial rates were achieved also for agriculture (92.04 percent) and education/training (72.9 percent). Low implementation rates were achieved in other sectors, however, for example in livestock production (1.3 percent).

Table 11.

Execution of HIPC resources by sector

(investment)

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Source: DDI, Situation récapitulative d’exécution de la LFR 2004
• Programming HIPC resources for 2005

HIPC resources programmed in 2004 but not yet used were reprogrammed for 2005 within the framework of the Initial Budget Law. However, these resources are the subject of a specification clause in the BCI to facilitate compliance with PRSP commitments and for purposes of traceability. Accordingly, the allocations are as follows:

Table 12.

Operating expenses funded by HIPC resources programmed for 2005

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Source: BCI 2005

The operating expenditures are mainly intended for the social sectors and for strengthening decentralization. In the case of education, for example, the expenditure is for contract teachers in the amount of CFAF 3,197 billion, education volunteers in the amount of CFAF 859 millions, FONDEF totaling CFAF 202 millions and strengthening elementary schools (CFAF 298 million). As regards health, the emphasis is on motivating service personnel in underprivileged areas (CFAF 2,00 million) and miscellaneous special programs. Finally, CFAF 1.2 billion were allocated to decentralization.

Table 13.

Investment expenditures from HIPC resources programmed for 2005

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Source: BCI 2005

As regards investment, agriculture takes the largest share of allocations, intended for various irrigation programs and for the disaster relief fund. The inadequate funding of projects in favor of vulnerable groups observed in the first two years of execution of the PRSP (2003, 2004) began to be compensated for with allocations to women entrepreneurs (CFAF 200 millions), support for the 42 social promotion and reinsertion centers (CFAF 100 million), creation of an emergency intervention fund in the social sectors (CFAF 2 billion), construction of a reinsertion center for the handicapped, drug addicts and the mentally ill (CFAF 2 billion), and construction of regional women’ initiative centers (CFAF 1 billion). CFAF 2 billion were allocated to the Local Government Equipment fund (FECL) to assist decentralization.

II.2.3. Execution of projects funded externally

The tables and histograms appearing below show the use and distribution by strategic approach of external resources. The agriculture sector in the “wealth creation” approach and the health sector in the “strengthening of capacities” approach received more funding than the other sectors. A confirmation of a finding from a previous analysis can be seen in the fact that projects concerning vulnerable social groups (the handicapped, elderly and youth) are also poorly funded by external resources as well.

Projects in the “mining” and “trades” sectors received no funding from external resources.

As regards actual implementation of allocated external resources, we note a higher rate of execution in the sectors of the “wealth creation” strategic approach than in sectors of the “strengthening of capacities” approach. For example, in “wealth creation” sectors, projects in livestock production, industry and fishing were executed at a rate of 100 percent; projects in energy were executed at 99 percent, and in agriculture, 89 percent.

Table 15.

Allocation and use of external resources by sector “Strengthening of capacities” strategic approach

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Source: DDI

Under the “strengthening of capacities” approach, projects related to health and sanitation were executed at a 100 percent rate; education/training and drinking water projects achieved 92 percent and 80 percent execution rates, respectively.

Chart 6.
Chart 6.

Breakdown of external resource allocation by sector

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

Source: DDI [External resources]

II.2.4. Execution of specific 2004 programs and projects to fight poverty

Prominent among the entities responsible for implementing the PRSP are programs and projects to fight poverty. These projects are financed by development partners, with contributions from the Senegalese government, and represent privileged instruments supporting the implementation of the Poverty Reduction Strategy (PRS). Essentially, these are projects already in existence prior to the drawing up of the PRSP, conceived within the framework of the National Program to Fight Poverty developed in 1997, and the decentralized rural development strategy, whose objectives were embraced in the PRSP. The projects in question include: The Social Development Fund (FDS/AFDS/BM), the Program to Fight Poverty (PLCP/BAD) and the Program in Support of Poverty Reduction (UNDP), the PNIR (BM), the PSIDEL (European Union) and the PAPEL.

These projects receive special oversight and periodic reviews of their performance. Taking them into account in the present report has as its chief objective to integrate their results that contribute to achieving the objectives of poverty reduction and to assess the degree to which they comply with the guiding principles of the PRSP in their operations.

The totality of PRS anti-poverty projects and programs implemented in Senegal’s regions (Cf. Table 14, below) shows that emphasis has been placed on Kaolak, Kolda and Fatick, considered to be among the country’ poorest regions. Two PRSP strategic approaches basically dominate these implementations, namely “wealth creation” (Agriculture, water projects, livestock production) and “strengthening capacities and promoting basic social services” (education, health, drinking water).

Table 14.

Allocation and use of external resources by sector “wealth creation” strategic approach

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Source: DDI

Regarding agriculture, projects included constructing and refurbishing of farmers’ storage facilities and agricultural equipment. In the area of livestock production, efforts were focused on building drinking troughs and vaccination yards designed to fight cattle diseases.

In the area of access to basic social services, projects concerned essentially health infrastructures (clinics, rural health and maternal care stations, together with their operating equipment) and education (classrooms and classroom equipment, facility enclosures to ensure safety of schooling spaces). Water projects emphasized drilling infrastructure intended to provide drinking water to people and cattle.

Table 16.

Summary of regional projects and programs to fight poverty

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Source: Status reports drawn up by Cabinet TDC-Sénégal on the basis of data provided by the projects and programs concerned

II.2.5. Compliance with PRSP guidelines

In 2004, reports from the various projects bear witness to the fact that there was satisfactory performance in compliance with the PRS guiding principles for project implementation.

Proximity principle. This principle was adhered to as evidenced by the fact that all the projects developed services available to their beneficiaries, with responsibility for action entirely in the hands of the communities involved. Thorough decentralization was also practiced in the location of decision making.

Contracting out. All programs and projects complied with this principle by ensuring effective and systematic involvement of other participants, such as service providers (consultants, government technical agencies, various consulting and professional bodies) in the various phases of completion of actions implemented in 2004.

Transparency was ensured in carrying out actions by the various agencies, with mechanisms guaranteeing visibility and local control: for example, implementation of monitoring/assessment systems suited to the needs and capacities of population groups wherein the participants at the bottom of the hierarchy are able to monitor their activities more effectively.

Regarding full participation, one of the fundamental choices of the government in the PRSP process, it was satisfactorily ensured in the operating phase, with participants effectively and fully involved in the decisions affecting them. In this context, the frameworks for concerted action and dialogue are organized by local participants themselves, and the chairmen of rural communities take charge of signing the agreements. Note in particular that the project leaders of all projects are rural communities (consultancy, collection, contract bidding, monitoring execution of projects, project admission).10

With respect to equity, the principle has been adhered to satisfactorily when implementing projects and programs. For example, equal treatment of the rights and responsibilities of participants has been guaranteed, while significant differences have been taken into consideration (age, gender, and other social dimensions).

As for the principle of expeditiousness, efficient procedures ensure rapidity in smoothly executing bids associated with completion of the various actions. It must be noted in this regard that allocation procedures related to public contracts have been applied in spirit and in the letter. All projects and programs have been undertaken in light of complementarity and synergy involving all responsible participants, with the effective combination of means and resources optimizing results.

Concerted action is ongoing between major projects undertaken within one zone, emphasizing coordinated action, notably by means of the various cooperative frameworks and networks implemented to that end, supported by regional authorities (governors, prefects, subprefects and chairmen of regional councils). Mention must also be made, however, of insufficient harmonization and synergy between projects, constituting a source of confusion among some population segments. We find counterpart criteria asked of communities that are not harmonized, nor are scales of intervention and planning documents.

Applying a principle of one lead manager per domain of intervention should alleviate this constraint.

PART III. UPDATE ON REFORMS AND POLICY

III.1. Presentation of New Policies and Strategies

The implementation of the PRS relies on coherent sector policies and strategies whose components must be coordinated with the PRS. Accordingly, a variety of sector and multi-sector policies has been initiated in the various sectors, in line with the approaches and guidelines appearing in the PRSP.

III.1.1. “Wealth creation” strategic approach

The strategies treated below are either available or under development.

  • ■ Accelerated growth strategy. In order to achieve an average annual economic growth rate of 7 to 8 percent, thereby attaining objective of reducing poverty by half before 2015, as set forth in the PRSP, it became apparent that appropriate measures had to be taken to accelerate growth.11 With that objective in mind, the government initiated the process of developing an accelerated growth strategy (AGS), to create conditions for new productivity gains so as to make Senegal an emerging country.

This strategy links up with the PRSP wealth creation approach and is to be developed using the “cluster approach.” The main objectives of the AGS are (i) accelerate economic growth, improve its structure qualitatively to make it more effective in fighting poverty; (ii) diversify its sources to make it secure and ensure its continued life.

Development of the AGS is in its preliminary stage, in which five (5) sectors have been singled out for their large potential for providing key activities serving as cluster heads: agriculture and agro-processing, seafood, tourism-cultural industries and artistic crafts, wearing apparel and finally, ICT-teleservices. The impact on employment and poverty reduction was a major criterion used in choosing these sectors.

■ Strategy for development of the private sector

One of the prior conditions for reaching the objectives set forth in the PRSP, and in particular in the area of wealth creation, is the implementation of a series of actions likely to favor development of the private sector. Accordingly, in 1999 the government formulated its Private Sector Development Strategy (PSDS) in partnership with the participants involved; the PSDS was updated in 2002 and 2004. It constitutes the reference framework for stimulating private initiatives and investments by strengthening the long-term development base, improving the effectiveness of government assistance and strengthening private sector capacities. The strategy emphasizes the following approaches: (i) modernization of the justice system; (ii) simplification of administrative procedures associated with investment; (iii) financing enterprises; (iv) unification of private sector organizations; (v) business training; (vi) communications; (vi) institutional mechanisms for assisting the private sector.

As regards the priority areas covered, the PSDS has been mostly subsumed by the PRSP matrix of measures, but planned actions are experiencing delays in implementation.

■ Agricultural and rural development, and food security

Agriculture is the main pillar of the PRSP “wealth creation” approach, which explains the need to give it all necessary attention.

Accordingly, the Law on agriculture, forestry and livestock production will serve as the basis for developing an investment program that is compatible with government objectives and approaches designed to create sustainable and enduring growth in agricultural production and a reduction in rural poverty–a major sector policy innovation.

This law lays the foundation for development policy in agriculture, forestry and livestock production and also serves as the basis for developing and implementing operating programs such as the National Agricultural Development Program (PNDA), the Senegal Forestry Action Plan (PAFS) and the National Livestock Development Plan (PNDE). Its guiding principles are: economic effectiveness, social equity, sustainability, economic liberalization, decentralization, solidarity and subsidiarity, subregional competition, common agricultural market within WAEMU and ECOWAS. The guiding principles flow from the political, economic and social objectives of the government as contained in the Poverty Reduction Strategy Paper (PRSP).

However, because of the absence of implementation regulations, the 2004 Law on agriculture, forestry and livestock production is not yet operational.

As for the “special agricultural programs” implemented by the government, it has been questioned whether they are well articulated with the PRSP and harmonized with planning in this sector.

■ Developing tourism

Given its importance in Senegal’s economic development, tourism was selected as a priority sector in the PRSP wealth creation approach.

In order to secure the enhancement of tourism’ potential, the government developed a sector development strategy with four strategic approaches: (i) sector rehabilitation; (ii) sector promotion; (iii) diversification; and (iv) involvement of country nationals and foreign partners.

■ Trade sector policy letter

In light of the importance of the sector for national development, trade is also considered as among the priorities of the PRSP. To promote trade, the government launched a sector Policy Letter whose objective is to develop a coherent export promotion strategy and a strategy for streamlined management of the domestic market.

The policy is based on the poverty reduction strategy guidelines and on the results of the Integrated Framework studies,12 studies by Stradex and the recent review of Senegal’s trade policy presented to the WTO, organized around the following focal points: (i) improve access to markets; (ii) improve regional integration in WAEMU, ECOWAS and the African Union; (iii) develop production and supply of exports and promote them; and (iv) promote competition and improve distribution channels over the whole of Senegal’s territory.

■ Microfinance policy letter

In the area of microfinance, the encouraging initiatives taken to promote this sector (development of the sector policy letter and mobilization of considerable financial resources) have been finalized and approved.

III.1.2. Strengthening capacities and improving basic social services

■ National Sustainable Development Strategy (SNDD)

Senegal has undertaken development of a National Sustainable Development Strategy (SNDD) with the assistance of its development partners.

Implementation of this strategy should result eventually in improved grasp of the principles of sustainable development in policies and programs currently under way or contemplated; it should also result in a noticeable increase in the project portfolio—now thought to be relatively thin—designed to translate these policies and programs into concrete actions.

The basic principles concern the fight against poverty and establishment of a sustainable development policy.

The major issues selected in Senegal’s national report are: (i) food security; (ii) the links between health, environment, population and development, with AIDS and malaria as focal points; and (iii) infrastructures and sustainable development.

The emerging issues are: (i) the links between trade and the environment within the globalization process; (ii) new information and communications technologies in the service of sustainable development; and (iii) promotion of traditional knowledge in connection with sustainable development.

Education, training and public awareness regarding sustainable development occupy an important place in the national sustainable development strategy.

■ Population policy declaration (DPP)

Among the priority objectives of the PRSP was population control. Because the interconnections between populations and development are at the center of concerns in the area of sustainable development, adoption of a suitable population policy has turned out to be indispensable for achieving the strategy objectives. Accordingly, the Population Policy Declaration (DPP) drawn up in 1988 was revised in 2001 and adopted by the interministerial council on March 5, 2002, in the wake of the action plan of the latest International Conference on Population and Development (CIPD). The declaration was made operational in the Priority Action and Investment Program (PAIP).

■ Updating the PDEF

Education and training constitute PRSP priorities for strengthening capacities. In order to ensure effective implementation of targeted action in this area, the government undertook an updating of the Ten-Year Education and Training Program (PDEF) for the period 2000-2010; the main objective of the PDEF is to achieve universal coverage of primary education (i.e., the first 10 years of schooling).

Ongoing since January 2000, the PDEF is a “program” oriented effort that promises to make significant improvements in the performance of the educational system.

In its second phase (2005-2007), the PDEF will emphasize aspects of the sector based on the following options: (i) universal pupil completion of the elementary cycle of schooling and improved access to the other cycles; (ii) creation of conditions for quality education at all levels; (iii) elimination of illiteracy and promotion of indigenous languages; (iv) expanded responsibility of local communities and governing bodies respecting the educational system, including management of schools, monitoring quality and mobilizing resources; (v) promoting and shaping business training to suit the working market; (vi) eliminating disparities between economic groups (rich/poor), between the sexes, between and within geographical regions, between urban and rural areas, at all educational levels, and consideration of the needs of handicapped children; (vii) building effective, well coordinated partnerships; and (viii) opening up education to regional cooperation within the ECOWAS space.

■ Updating the PNDS

Health occupies an important place in the PRSP. In order to improve consideration of this sector, the government has updated the National Health and Social Development Plan (PNDS) established for the period 1998–2007.

Senegal also drew up a strategic five-year plan within the framework of the “Roll back malaria” initiative. To consolidate progress made in the fight against AIDS, Senegal initiated a sizeable Strategic Plan to Fight AIDS in 2002, with the chief objective to maintain the rate of infection under 3 percent.

This program is piloted using a multisector approach involving several ministerial departments (Women’ health, Youth, Education, Training, etc.).

Regarding the fight against other diseases, the National Health Development Plan includes a River Blindness Prevention Program, and programs to fight bilharzhiosis, leprosy, Guinea worm, tuberculosis, etc.

■ Expansion of sports programs

One of the main objectives of the sports sector policy letter being drawn up is to ensure that the negative aspects of the Senegalese sports system are reined in so that the sports sector can continue to add to its success. As preparation for drawing up that letter, a study was made of the connection between “poverty and sports” as a way of introducing the sports sector into the PRSP.

In addition to proposing short- and medium-term strategic frameworks, the document targets priority measures essential for the long-term development of sports that the government intends to implement with support from its development partners, within a broadly participatory framework.

■ Decentralization

In the matter of decentralization, the government plan (2003–2005) has been implemented only very partially, despite a few instances of progress, for example in increasing government financial transfers (FDD, FECL).

Obstacles identified concern the fact that local governmental entities have not yet become effective development institutions in the service of their constituents, for in spite of commitments made several years ago, numerous important reforms are still pending. These concern essentially the strengthening of technical and financial capacities of local governing bodies by transferring funds to them and developing a decentralization strategy to return power to the basic governing entities.

Among the pending reforms are: reform of the Government Transfer Fund (FDD and FECL); reorganization of the joint national training unit; definition of the status of locally elected officials; energizing the National Council on Development of Local Government (Conseil National de Développement des Collectivités Locales); the decentralization charter; redefinition and refocusing of decentralized government agencies to support local governing bodies; evaluation of the exercise of transferred powers; decentralization of the BCI; preparation of the new decentralization and local development policy letter; specification of an apportionment scale for the distribution of proceeds from the Single Global Contribution (Contribution Globale Unique) between local governing entities and the State.

Regarding the decentralization of the BCI, studies have been undertaken and the results have been shared by the various stakeholders. An action plan is to be submitted to the government at a future interministerial council meeting.

III.1.3. Improve the living conditions of vulnerable groups

■ National social security strategy

The chief objective of the National Social Security Strategy (SNPS) is to adopt a comprehensive, integrated, and concerted policy vision for social security, enabling greater access by the poorest vulnerable groups and other social categories at risk, to risk management instruments and to social protection systems. The implementation of programs based on the SNPS will increase the ability of vulnerable groups to access basic social services and economic opportunities, on an equal basis and in permanent fashion. The SNPS is designed to contribute to the following specific objectives:

  • - Expand and diversify social protection instruments and risk management instruments;

  • - Improve the ability of populations—and in particular the most vulnerable groups—to respond to shocks and risks;

  • - Integrate social protection programs into the PRSP implementation and revision processes.

Regarding these challenges, the execution framework of the SNPS remains integrated into the implementation of the PRSP and is supported by the World Bank through the Strategic Poverty Reduction Framework (CSRP).

III.1.4. Other cross-sector strategies

• National Strategy for Gender Equity and Equality

Upon complete implementation of the second National Action Plan on behalf of Women (PANAF) over the period 1997–2001, The Family, Social Development and National Solidarity and Gender Equity Ministry proceeded to evaluate the plan to measure results obtained and identify obstacles to be overcome in order to achieve the objectives envisioned. As a result, it became apparent that Senegal needed to develop a National Strategy for Gender Equity and Equality (Stratégie Nationale pour l’Equité et l’Egalité de Genre (SNEEG)) with the participation of the stakeholders.

Developing such a reference framework is a response to the felt need for an operational mechanism to facilitate translation of strategic approaches and objectives into concrete results, whose feasibility is incorporated into realistic plans that can be controlled.

The objectives envisioned by the National Strategy for Gender Equity and Equality are: (i) clarify the perception of gender issues at the level of government and at the level of other participants in development; (ii) specify the new approaches and action priorities for accelerating advancement of both women and men in the society; and (iii) facilitate the incorporation of gender issues in development activities.

■ Energy

Although energy is considered a strategic sector for wealth creation, it is no less true that it is an important instrument in fighting poverty in all areas of socioeconomic life by virtue of the fact that it impacts a variety of sectors. With a view to underscoring that reality, initiatives are being taken in a multi-sector committee charged with drawing up a Synergy Strategy between energy itself and the other strategic sectors participating in the fight against poverty.

III.2. CFAA-CPAR reforms

The Document treating PRSP monitoring mechanisms pointed up institutional obstacles that need to be removed in order to improve effective public expenditure for the purpose of reducing poverty. At issue, notably, is the matter of strengthening capacities for developing and managing macroeconomic policy and intensifying structural and sector reforms in order to improve absorption of resources in transparent fashion. These objectives are pursued through implementation of the CFAA-CPAR plans.

Evaluation of public expenditure management and private sector accounting practices entitled “Country Financial Accountability Assessment (CFAA)” is a government response to the need to improve its financial management and create the conditions for improved use of its resources, especially the resources allocated to the fight against poverty.

III.2.1. Results

In preparing the budget, comprehensive coverage of the budget law was strengthened by inclusion of all external financing known when the budget was drawn up, including resources resulting from debt relief (PPTE) garnered by Senegal.

The various measures implemented had positive impacts, including improved public finance management, and in particular in the matter of preparing a draft budget law taking into account all sources of financing, budgetary execution, cash management and auditing of public finance.

- CFAA Action plan

Adoption of a new budget nomenclature: The operating and investment budgets were combined in 2005 and the budget law was delivered to the Assembly in a single budget document.

Simplification of the expenditure channel: the expenditure chain was computerized in 2004 with the installation of the Integrated System of Public Finance Management (Système Intégré de Gestion des Finances Publiques—SIGFIP) in the CDMT test ministries and the MEF; this resulted in considerably reduced delays in processing expenditure matters. The initial positive results recorded are encouraging.

Decentralized payment orders: starting in 2005, the CDMT test ministries began authorizing their own budgets and the decentralized COF of these departments is the entry way for commitments.

Modernization of payroll and pension management system: the technical and financial audit of the payroll has been accomplished. This exercise will be followed by another bearing on civil service pensions. It is expected that this reform will result in implementation of an automated information management system involving staffing services of the technical ministries.

Modernization of public lands and land registry services, assessment base control and improved collections and management of disputed claims: the framework for managing the mobilized resources is being implemented (partial funding provided by the E.U., ADB and IDA/PPIP)

Improved cash management and improved public debt management: cash position forecasting is performed regularly by the Treasury. The D-AÎDA module is functional for the DDI and the Treasury (public debt authorization and payment).

Improved mechanism for monitoring use of HIPC resources: the institutional framework was created by the MEF. The SIGFIP system will facilitate automatic monitoring of transactions involving HIPC resources.

Improved systems for accounting and updating of government management accounts (CGE) and draft payment laws (PLR): The CGEs from 1998 to 2003 as well as the PLRs (1998–2001) were generated and submitted to the Court of Accounts, which recruited assistants to check the accuracy of financial statements. The ASTER project being prepared with the DGCPT will computerize the accounting and updating system of the CGEs and the PLRs.

Streamlining the administrative control entities bearing on public finance (IGE, CF, IGF, IAAF, IF): A study is under way. The recommendations contained in this study will be submitted to the authorities for approval and an action plan will be implemented. Within the MEF, internal auditing Directorates have been established within the various financial agencies (DGD, DGID, DGCPT, DGF).

Providing the MEF with a computerized Master Plan: the French Foreign Assistance Office is funding a study now in progress; part of the completion will be funded by the E.U. (PAPNBG).

Publication of the annual budget execution results: the LFs, LFRs, the macro and TOFE frameworks and status reports on budget execution are published on the MEF web site.

Decentralization of the Consolidated Investment Budget (BCI): establishment of the preliminaries is in progress. The decentralization will be undertaken in the 2006 Budget Law and tested at two ministries (Education and Health).

- CPAR action plan

The institutional framework for undertaking the reform and establishment of management capabilities.

  • - The steering committee on reform of the CPAR was established by MEF decree. The private sector is generously represented;

  • - The CNCA is to receive a structural reform enabling it to fulfill more effectively it’ mission to undertake preliminary monitoring of public contract procedures.

  • - An independent body to regulate and advise public buyers will be created to enhance the ability of agencies to prepare, analyze and monitor public contract dossiers. Another independent entity devoted to examining proceedings that have suspensory effect will be associated with that body. Feasibility study results are being studied.

  • - A Central Directorate for Public Contracts (DCMP), replacing the current contracts office, will be created within the MEF to enable the MEF to play more effectively its received role as administrative manager and auditor of public contracts.

  • - A qualification and classifying commission for construction companies provided with a permanent secretariat is established in the ministry responsible for construction, and tasked with overseeing quality in the selection of construction companies, and to ensure that construction contracts are executed solely by qualified professionals.

Review of the legislative and regulatory framework

  • - The Procurement Code (CMP) and the Code of Administrative Obligations (COA) are under review. In 2005, draft regulations will be introduced into the approval circuit after validation by government and non-governmental agencies;

  • - Meanwhile, a May 2002 circular, Interpreting the CMP specifying the conditions under which mutual agreements can be approved in urgent cases arising from unforeseeable circumstances, was signed by the Prime Minister.

  • - An ethics and transparency charter for public contracts has been submitted for approval to the high authorities, to prevent and fight any and all forms of corruption in the preparation and execution of public contracts.

Procedures for awarding contracts and performance of the private sector:

  • - Public buyers, including agencies, are to be provided with procedural tools (typical contract documents) to help them improve the quality of Bidding Documents (DAO) and Contract Bids (DP). The technical capacities of agencies, local governments and the private sector will be enhanced through training. What is more, the CPAR action plan will propose introducing a contract bidding training module into schools of administration and university institutes.

  • - A circular letter13 has been prepared and submitted to the Prime Minister for his signature.

Integrity of the public contract bidding system:

  • - A systematic annual audit of procedures for public contract bidding has been established in order to measure the degree of compliance with the provisions and procedures set forth in the public contract code. The year 2003 audit undertaken by the MEF has been completed. Future audits are to be undertaken by the Court of Accounts, provided the associated measures enabling it to undertake that mission are in effect.

  • - The CPAR action plan called for installation of an Integrated Public Contract Management System (SIGMP), or electronic contract management, designed to effect transparency and speed in accessing information regarding public contracts Study of such a system is scheduled to begin soon, with funding from CSRP I.

III.2.2. Deficiencies

Contrary to expectations, the 2005 Budget Law was not developed on a programmatic basis (Medium Term Expenditure Framework—MTEF). In fact, the use of the MTEF and the four M-STEFs initially planned was postponed until 2006. This measure is one of the commitments included in the CSRP. The test ministries involved are Health, Education, Environment and Justice. An expansion of this measure to include the ministries responsible for Equipment and Agriculture is planned for 2007.

This has had an impact on mobilizing and allocating significant resources to the sectors within the framework of budgetary support, notable in the case of the Ministry of Environment.

III.3. Evaluation of the PRSP matrix of measures

Evaluation of the matrix of measures bears on PRSP objectives.

Table 15 below updates the status of completion of the matrix of measures initially specified in the PRSP. We note that nearly every one of the measures called for have been implemented in 2004.

Table 17.

PRSP matrix of measures

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PART IV. ANALYSIS OF INDICATORS

In order to ensure monitoring of implementation of the Poverty Reduction Strategy (SRP), the government, in collaboration with its development partners, has drawn up a list of follow-up indicators (see complete list in the Annex). The following section reviews the situation in 2004 for the recorded indicators; this does not include macroeconomic indicators treated in Part I.

IV.1 Poverty indicators

The second ESAM inquiry, undertaken in 2001–2002, showed that poverty continued to touch more than half of Senegal’s population. The incidence14 of poverty, estimated at 57.1 percent, is expected to stand at 55.8 percent in 2003, 54 percent in 2004 and 52.5 percent in 2005 according to PRSP objectives.

In the absence of household inquiries, poverty indicators are estimated and projected according to the estimated elasticity parameters of CREA. According to the studies undertaken, a rate of increase of per capita GDP of 1 percent would reduce the incidence of poverty by 0.9 percent, assuming constant inequalities.

If the 2004 per capita growth rate reaches approximately 4.1 percent, the incidence of poverty can be estimated at 54 percent, assuming that inequalities remain constant over the period 2002–2004, in line with the initial objective.

IV.2 Education

With a view to boosting the level of education, the PRSP opted for a series of measures that must accompany the allocation of both domestic and foreign resources. Among these objectives, the government has agreed to reach an operating expense ratio of 37 percent for education and to increase the share of primary education to 45.3 percent in 2004.

In terms of allocation of educational expenditures, the objective has been reached, with operating expenditures accounting for 37 percent of the 2004 operating budget. Moreover, expenditures for education (operating + capital) increased by 10.56 percent between 2003 and 2004, accounting for 18.11 of the overall government budget, an illustration of the government’s clear determination to strengthen the educational system.

The resources mobilized allowed construction of 1,103 classrooms, the opening of 390 elementary schools and construction de 220 general and secondary education classrooms. In the course of 2004, 8 lycées and 59 collèges were built. In addition, significant progress was made in private education in 2004, with the establishment of 27 collèges and 3,108 primary school classrooms.

In terms of school attendance statistics, the indicators also show clear improvement. The gross rate of primary school attendance has improved continually since 2000. In 2004, attendance was 79.9 percent, versus 76.9 percent in 2003, an increase of more than 5 percent year on year. The rate of admission to the CI grew from 85.1 percent in 2003 to 91.1 percent in 2004, i.e., an increase of 6 percent, exceeding the PRSP target for 2005 (90 percent).

As for school attendance by girls (see chart below), the government made a great effort to equalize gender participation. The rate of admission to the CI in 2004 was 93.9 percent, and the attendance rate for girls reached 77.3 percent, exceeding the target of 76 percent.

The boys’ performance did not equal that of the girls. Year 2004 admission of boys to the CI was 90.4 percent, with the attendance rate of only 82.5 percent falling short of the initial PRSP objective of 84 percent.

uA01fig01

Gross School Enrollment Ratio (GSER) - 2000–2004

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

[Legend: National GSER GSER for boysGSER for girls 2015 targets]

If the trend continues, universal school attendance could be achieved in 2010, in accordance with Millennium Development Goals (MDG) contained in the PRSP.

The completion rate for primary school increased from 44 percent to 48.3 percent over the period 2003–2004. Although these figures are still low, progress within that indicator is fairly significant, possibly exceeding 50 percent in 2005 if the trends continue.

IV.3 Health

The government displays its ambitions in the health field very clearly. As in the education sector, the share of budget expenditures allocated to the health sector increases continually. The portion of the entire budget devoted to health (operating + capital) rose from 7.70 percent in 2003 to 7.82 percent in 2004, but remained below the 9.8 percent objective called for in 2004 by the PRSP, in line with WHO recommendation. Regarding the 2004 operating budget, these resources enable recruiting of 511 agents in 2005, including 125 physicians, 63 registered nurses, 57 midwives, 20 orthopedic technicians, 25 social assistants, 10 social aide, 10 statistical engineers, and high-level technicians and support staff15.

As regards performance indicators, the rate of DTC3 vaccination coverage for children age 0 to 11 months increased between 2003 and 2004, 70 percent to 75 percent. This outcome exceeds the quantified target called for in the PRSP (70 percent in 2005).

uA01fig02

Trend in the vaccination coverage rate from 2000 to 2004

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

[Legend: Rate of DTC3 vaccination coverage for children of age 0 to 11 months 2015 targets]

The rate of primary care consultations reached 50 percent in 2004. Its increase between 2003 and 2004 was 8.7 percent. Its current rate would enable increasing it to more than 52 percent in 2005, the target set by the PRSP.

uA01fig03

Trend in the rate of primary care consultations from 2000 to 2004

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

[Legend: Primary care consultation 2015 targets]

The number of births assisted by trained personnel was 59 percent in 2004, compared to the PRSP target of 60 percent. But compared to the reference figure of 54 percent in 2002, the performance was relatively significant, even if much remains to be done to accomplish the MDGs in this area.

The HIV/AIDS prevalence rate in the general population dipped slightly, from 1.5 percent in 2003 to 1.4 percent in 2004. The PRSP target was to maintain a rate below 3 percent.

The underweight prevalence rate for children less than three years of age remained virtually unchanged. From 19.1 percent in 2001—the reference year for the PRSP—to 19 percent in 2004. Despite efforts made in this area, results have remained short of the initially specified PRSP target of 17 percent in 2005.

Meanwhile, the results achieved by the Nutrition Enhancement Program (PRN) in reducing underweight conditions in children benefiting from the program shows that Senegal is able to achieve the Millennium Development Goals if it doubles its investment in this area of concern.

IV.4 Drinking water and sanitation

Over the period 2001–2004, the rate of access to drinking water climbed from 78 percent to 83 percent in urban areas and from 56 percent to 58 percent in rural areas. In order to reach the MGS, additional efforts must be made, especially in rural areas. As for the urban population with access to sanitation, the rate increased from 56 percent in 2000 to 69 percent in 2004. This progress remains slight and shows that significant efforts must be made to reach a rate of 78 percent by 2015.

IV.5 Infrastructure

With respect to infrastructures, the various actions aimed at strengthening support infrastructures in rural areas, facilitating access to telecommunications services by extending the telephone network and opening up rural areas through access roads.

The latest inquiry dates to 2000, on which date the percentage of access to a road (asphalt or laterite closer than 5 km distant) was on the order of 48 percent. In terms of objectives, the government has planned yearly resurfacing of 300 km of asphalt roads and continued construction of 1,000 km of laterite roads—this within the framework of the PRSP. Efforts deployed within this framework have resulted in expansion of the percentage of the dirt road network rated good or average, from 19 percent in 2003 to 25 percent in 2004. The portion of the paved road network rated good or average totaled 72 percent in 2004, compared to 66 percent in 2003.

As far as rural infrastructure is concerned, and in particular agricultural water facilities, the funding mobilized has enabled completion of a series of general feasibility studies16 and completion of construction on irrigation lands. For example, within the framework of the SAED, the completion and acceptance of constructed facilities at Madina-Pete (1,700 ha) and Kobilo (750 ha), progress totaling 20 to 30 percent of ground preparations at the irrigation site of the village of Gababé, dike works at Matam and Dolol-Odobéré, and initial work on access trails to reach remote Matam-Bakel.

Electrification is at the heart of the fight against poverty in rural areas, because energy impacts numerous aspects of the problem. When the PRSP was drawn up, the rate of rural electrification was 8 percent (2000); in 2004, this rate jumped to 12.5 percent. Senegal must now make efforts to achieve a rate exceeding 20 percent in order to reach the planned 2010 target.

IV.6. Decentralization

The principal indicators used for monitoring government efforts to decentralize are the amount of transfers to local government entities and delays in making funds available, thereby ensuring improved absorption of resources.

Regarding the Decentralization Allocation Fund (FDD), from 6.6 billion in the year 2000, it grew to 10.1 billion in 2004. The planned objective is to grow this fund to more than 15 billion starting in 2010.

Similarly, the Local Government Capital Fund (FECL) underwent expansion between 2000 and 2004, growing from 3.5 billion to 4 billion, with a high point of 6 billion in 2003.

The item “share of government financial transfers to local government entities as a percentage of the government budget excluding debt” declined slightly between 2003 and 2004, from 2.2 percent to 1.9 percent.

uA01fig04

Change in ratio of State transfers to local governments to total resources of local governments

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

[Legend: Ratio of State transfers to local governments to total resources of local governments]

The low level of public resources threatens to impede seriously the development of administrative and financial management of local governing entities, and discourages Senegal’s development partners from adopting funding methods in the form of budget support geared to the government’s current aspirations in the area of decentralization.

IV.7 Good governance

Good governance is assessed by examining the management accounts of central government, regional government and public enterprises, undertaken by the Court of Accounts. The number of documents received by the Court in support of such an effort has grown only very slowly over the period 2000 to 2004, from 8.7 percent to 14.1 percent. Significant efforts are contemplated to bring that rate up to 37.3 percent in 2005, 75 percent in 2010 and 85 percent in 2015.

IV.8 The environment

Performance in this area relies on available statistics on the environment, including the trend in the ratio of vegetation cover (reforesting), i.e., the ratio between the surface reforested and the surface officially cleared.

Between 2002 and 2003, this vegetation cover ratio decreased slightly, from 1.9 percent to 1.8 percent. Data for 2004 are not yet available. However, major efforts are needed in this domain in order to track the trends more closely out to 2015.

Table 18, below, sums up the trends in the most significant indicators.

Table 18.

Year 2004 changes in some key PRSP indicators

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Sources: CSPLP/MEF Note: For objectives and time frames, 2004 was chosen for every instance in which that year was specified as a target in the initial PRSP. In other cases, the closest target year was chosen.

PART V. ANALYSIS OF IMPLEMENTATION AND MONITORING/ ASSESSMENT

Part V presents the detailed operations of the PRS in an explicit presentation of the activities accomplished and the problems encountered by the participants, so as to enable formulation of recommendations for the ongoing participatory process of implementing the PRSP.

V.1. Operations of Coordinating and Monitoring Entities

The organizational framework of the PRSP provides for flexible central coordination involving fully responsible participants. Its operations are divided among the following bodies that ensure strategic steering of the program and project implementation:

  • ■ An interministerial orientation and decision council chaired by the Prime Minister;

  • ■ A national PRS steering committee chaired by the Minister of the Economy and Finance;

  • ■ Eleven (11) regional PRS steering committees chaired by the governors of the regions;

At the operational level, coordination and monitoring are undertaken by:

  • ■ Ministerial focal points charged with operational monitoring of actions and activities included in the sector operational plans of the PRSP;

  • ■ Eleven (11) monitoring committees chaired by the chairmen of regional councils, who monitor operational details of actions and activities called for by the sector operational plans of the PRSP;

  • ■ A monitoring unit of the Program to Fight Poverty (CSPLP) linked to the Ministry of the Economy and Finance, responsible for technical and practical coordination of the PRS implementation.

    In line with the approach adopted, the choice of priority projects and their implementation is undertaken concomitantly by government agencies, projects, civil society organizations and local government units. Each class of participant thus assumes responsibilities and makes contributions actively and in solidarity, to attain the PRS objectives.

uA01fig05

Schematic of the institutional system for implementation and monitoring

Citation: IMF Staff Country Reports 2006, 068; 10.5089/9781451833997.002.A001

1.1 Entities charged with strategic steering

The National Steering Committee of the PRSP, chaired by the Minister of the Economy and Finance, met on May 14, 2004 to study and validate the “Progress report on implementation of the PRSP for 2003.” As an outcome of that meeting, a summary report presented all the recommendations formulated by the committee members. Among the priorities identified was the matter of inadequate capacity to absorb the resources, which if not resolved would prevent realization of the planned objectives.

For this reason, the government, upon instructions of the President of the Republic, called a meeting on July 9, 2004 of an Interministerial Council devoted to the problem of absorption of resources. This meeting was chaired by the Prime Minister and took up a report presented by the Minister of the Economy and finance. This council meeting resulted in a consensus on diagnosis of the problem and solutions needing implementation. The Prime Minister subsequently took significant measures to simplify and accelerate the public expenditure channels.

At the regional level, the Regional steering committees supervised completion of the activities undertaken within the framework of the PRSP process, and in particular the preparation of files on projects contained in regional operations plans. Planning centers consisting of decentralized government agencies charged with planning and statistics, technicians from the Regional Development Agency (ARD) and the Regional Council, participated in training and networking workshops on project development.

2. Operational coordination and monitoring

2.1. Focal points

At ministerial level, focal points figured prominently in the consideration of the “Fight against Poverty” dimension of development of sector policies, programs and projects. The focal points were also used to steer the efforts of project file development generated by the sector operational plans within the framework of the budget process. These were designed by the MEF based on the budget process and the methodology used for presenting projects.

Focal points also accompanied the CSPLP/MEF in the process of drawing up the limited list of indicators to be followed within departments. They notably provided data on the reference situation for the indicators and generated projections in the key sectors for the years to come, out to 2015, with a view to reaching the MDGs.

In addition, focal points figured actively in the thematic group deliberations on MDGs, in collaboration with the Ministry of the Plan and Sustainable Development, to ensure better articulation with the PRS.

In line with the recommendations of the 2003 report, most of the ministries established sector committees17 by ministerial decree, to strengthen the focal points. However, these committees are not yet fully functional.

Despite these accomplishments, limitations in the functioning of the focal points were observed in relation to the technical ministries, essentially because of a lack of means. In point of fact, the focal points did not receive the expected government grants of technical and material resources needed to execute their tasks, as they go about ensuring synergy relations between the POS and the PRSP. The activity programs that were to provide support to the focal points, in coordination with the regional committees, have not yet been executed because of ponderous procedures and delays in completing funding agreements. These activity programs have been submitted to a variety of development partners.

Finally, we must underscore the poor collaboration between priority cross-sector programs (Priority action programs on population, the rural electrification program, etc.) and the sector focal points, whereas these programs ought to be coordinated closely as they undertake their interventions.

2.2. Regional monitoring and assessment committees

Regional monitoring and assessment committees were organized in all the regions, although they operated differently according to the region. For example, some regions (e.g., Matam, Saint-Louis, Kaolack, Louga and Kolda) are trying to make the strategy operational through a variety of activities, whereas in other regions (e.g., Tambacounda, Fatick and Dakar) the planned action programs have not been implemented.

Nearly all the regions drew up quarterly work programs as well as projects submitted to the CSPLP/MEF. For lack of funding, these programs have not been implemented. Training sessions and work retreats have been organized by the CSPLP/MEF. These include:

  • ▪ Working retreat on PORs in the PRSP in Kaolack;

  • ▪ Finalization of PORs in Thiès;

  • ▪ Training on a model publication of results from projects based on PORs;

  • ▪ Training session on generation of social accounting matrices in Tivaouane.

Similarly, in some regions (i.e., Tambacounda, Kolda, Ziguinchor), an OSC and projects database was established within the framework of a study on activities undertaken by regional participants.

2.3. Technical coordination of monitoring

Technical coordination of monitoring is by the Fight against Poverty Program Monitoring Unit (CSPLP/MEF), in collaboration with the other administrations and technical agencies of the ministries and technical units involved in the operations, combined with civil society organizations, to harmonize the interventions and provide the needed technical support. In particular, the unit coordinated the preparation of the limited list of PRSP monitoring indicators.18

In order to ensure real-time monitoring of the ongoing implementation of the PRS, as well as the progress of the physical and financial execution of the projects and programs, the Ministry of the Economy and Finance (CSPLP/MEF), with the collaboration of the office of the President of the Republic, developed an “automated system for monitoring projects and programs in Senegal.” This mechanism involves the PRSP steering organizations working to preserve a coherent government vision of decentralization, accountability and subsidiarity.

For the development of policies and programs in support of the strategy, the CSPLP/MEF coordinated preparation of the Credit in Support of Poverty Reduction (CSRP), the budget support instrument of the World Bank for the PRSP. Leadership of inter-sector working groups on PRSP approaches (wealth creation, health, vulnerable groups, decentralization and budget reforms) enabled development of consensus action matrices on priority actions and budget support indicators. Monitoring of the implementation of preliminary actions and conduct of technical negotiations with World Bank teams were organized by the CSPLP/MEF and representatives of the working groups. The same procedure is being pursued currently, with a view to preparing the credit agreement of the second year of the PRSP.

2.4. Involvement of civil society

Civil society took advantage of the year 2004 to improve its self organization in the form of specialties focused on centers of interest, and in particular: (i) labor unions, (ii) women’s interest groups, (iii) NGOs and (iv) OCBs.

Organization according to specialties produced better clarification of identities and more transparent organization. The activity programs designed and undertaken by the various entities furthered proper structuring of the four specialties in each of Senegal’s eleven regions.

This decentralized structure enabled organization of various regional and national workshops whose results can be taken advantage of for effective establishment of the Observatory. Establishment of the Observatory has been delayed because of unresolved preliminary problems, especially coping with the matter of representation, steering, distribution of tasks, etc.

Among other factors, it is to the credit of this process and the accumulated experience that civil society won acceptance as a necessary interlocutor, and a full participant in the various exercises resulting in formulation of policies and strategies begun within the framework of implementing the PRSP: MCA, SCA, etc.

In the regions of Tambacounda, Kolda and Ziguinchor, local organizations of civil society have been fully involved in projects and programs active in the region and initiated by the CSPLP/MEF.

Efforts have also been deployed by the government to increase involvement of members of civil society in the NEPAD process and in formulating poverty reduction strategies with ECOWAS.

V.2. Analysis Of Sector And Regional Programming Mechanisms

1. The sector and regional planning process

Although at the beginning of the PRS process the proposals submitted by the technical ministries had more the appearance of long lists of needs, it must be noted that they have improved noticeably over time, with the design of Sector Operations Plans (POS).

For the Poverty Reduction Strategy (PRS) implementation needs, and while awaiting the effective implementation of the CDMTs, the objectives and action lines arising out of the participatory process have been translated into Sector Operations Plans (POS) and Regional Operations Plans (POR). These documents, the principal instruments for implementing the PRSs drawn up by the ministerial departments, present the sector strategies for implementing the PRSP, their specific activities, their schedule for execution, performance indicators and an evaluation of costs.

Each of these activities was then to be translated into a project file. To achieve this, CSPLP/MEF organized “Workshops to provide training in organizing project files,” in line with the recommendations of the “Progress report on PRSP implementation, year 2003.”

At the conclusion of these meetings, the technical ministries and the regional teams created project files based on the Operations Plans. Overall, nearly two hundred (200) files were gradually forwarded to the MEF for study.

The regional steering committees also forwarded Regional Operations Plans (POR) to the Ministry of the Economy and Finance, along with priority project proposals prepared by technical teams from the regional monitoring committees.

Nevertheless, limitations were noted in the preparation of the budgets at the sector level, where budgets did not always reflect the focal points or the poverty reduction programs. Better reflection of these features would have ensured improved articulation with the PAP and with ongoing programs. The result was that insufficient consideration was given to projects directly arising from the POSs in the BCI.

In a regional perspective, no regionally generated project was taken into account in the budget, because of a failure to specify mechanisms for including POR projects in the national budget. To eliminate these obstacles, initiatives are now being taken, especially since finalization of the studies on decentralization of internal BCI resources and the study of POR funding undertaken with the help of Germany’ office of technical assistance (GTZ).

2. Aligning regional projects and programs with the PRSP

On the whole, regional projects and programs are oriented to reducing poverty. But it must be noted that synergy among the activities is still inadequate. Moreover, the steering committees and the regional monitoring and assessment committees are not sufficiently involved in the actions undertaken under the projects and programs. To take steering and monitoring as an example, projects and programs such as AFDS and PNIR, which predated the PRSP, are encountering greater difficulty than recently initiated projects in inserting themselves into the regional steering and monitoring mechanisms of the PRSP. For instance, PAREP links the Regional Steering Committees and the Regional Monitoring/Assessment Committees to all its activities.

3. Aligning regional civil society with the PRSP

Regional civil society participates in implementing the PRS by its awareness-creation activities. For example, the various organizations representing the four segments of civil society have established satellite agencies in all of Senegal’s regions. However, the activities undertaken are not often well harmonized and the institutional bodies (CRP, CRSE) not always involved.

Moreover, the local OSCs are not adequately provided with the tools to access information on the PRSP and the means of access to resources devoted to implementation of the PRS.

It is important to note, moreover, actions undertaken by the other NGOs, which have systematically aligned their activities with the PRSP (e.g., ENDA-GRAF/SAHEL19 and Caritas-Senegal), whose year 2004 activity programs have been designed and executed on that basis.

The OSC areas of intervention are extremely varied and bear on, in order of importance: 1) education and training; 2) agriculture and livestock raising; 3) health; 4) natural resources management; 5) decentralization, etc.20

These areas of intervention reflect the needs expressed by segments of the population. Actions undertaken on behalf of vulnerable groups make up for inadequate consideration observed in other interventions, notably by the government. Generally speaking, the OSCs do not offer alternative services, and innovation is therefore not a hallmark of their programs. For example, no OSC becomes involved in the area of energy, one of the basic domains of activity in the fight against poverty. Similarly, no OSC intervention is to be found in the are of infrastructures (production space, for instance).

In addition, wide disparities in the occupation of regional spaces will have to be corrected within the framework of the implementation of the PRSP in light of principles of equity, complementarity and synergy—guiding principles of the Poverty Reduction Strategy.

There remains a low level of synergy among local government programs. Virtually none of the OSCs is linked in partnership with local governing bodies. Even though they are concerned to inform chairmen of rural councils, generally speaking the rural councils are not always called upon to deliberate on OSC projects.

4. Consideration of gender when programming activities

The PRSP included the statement that:

  • The design, execution and monitoring/assessment of programs shall be based on a cross-disciplinary approach that acknowledges gender specific features, so as to improve the effectiveness of program impacts and ensure equity. Consideration of the different roles of men and women, disparities between the sexes as regards control of and access to resources, as well as resulting differences in terms of constraints, needs and priorities shall constitute a guiding principle to all components of strategies adopted.

In addition, women were included among targeted groups in framing the category of “vulnerable groups,” with an eye to making up for gaps compared to other social categories in terms of access to economic opportunity and basic social services.

The priority given to this last mentioned aspect, which figures more prominently in the approach entitled “women and development,” did not result in systematic consideration of gender in implementing the PRS, and in particular as regards the linkage with the POSs and the sector programs.

In their efforts to achieve genuine operational effectiveness of this approach in the various sectors, the participants came up against a problem of availability of appropriate tools. For that reason, and in order to take into consideration effectively the dimension of gender in monitoring the PRSP, a task force21 was established to broaden our knowledge, methods and tools related to the aspect of gender in the monitoring and implementation of the PRSP.

V.3. Information/Communication

CSPLP/MEF has engaged in several efforts to restore awareness of the PRSP to national and local participants.

Civil society organizations have organized several conferences in Senegal’s 11 regions with participation by all categories of participants. The four segments of civil society (the Oversight Committee of labor unions, the Women’ Initiative Group, the Union of Civil Society Organizations, and Colupas) have promoted awareness of 3,000 leaders of their organizations in regional workshops. A national workshop for each segment of civil society produced a synthesis of results from the activities engaged in at the regional level.

Additional efforts are ongoing to improve the basis of de communication. A Development Portal, an appropriate information tool very much in harmony with the NTICs, designed to be an extension of the participatory and communitarian approach adopted in implementing the PRS, is in process of being created. The principal objectives envisaged in creating the portal are: (i) bring together the entire range of resources, information and tools in the areas of development and the fight against poverty available in Senegal; and (ii) promote cooperation and sharing of experience and knowledge between representatives of civil society, the private sector and the government, in these domains.

In spite of all these efforts, communications are still inadequate, and have reduced considerably the visibility and the impact that the POSs should rightly have.

PART VI. CONCLUSIONS AND RECOMMENDATIONS

VI.1. Conclusions

Senegal’s economy recovered its dynamism in 2004, as seen in the macroeconomic and financial indicators and sector achievements reported in the year 2004 review of its progress in implementing the Poverty Reduction Strategy Paper (PRSP).

For most of the objectives included in the basic framework of the PRSP, the macroeconomic performance indicated achievement of the optimistic scenario, and in the other cases, the trend scenario of the same framework was approximated. In spite of these efforts, Senegal’s growth remains below the target of 7 to 8 percent required in order to reduce poverty by half by 2015 and to create numerous jobs.

In that perspective, the government’s initiative to develop and implement an Accelerated Growth Strategy as an essential component of the Poverty Reduction Strategy, especially in its wealth creation aspects, should result in achieving these objectives.

Improved mobilization of financial resources, due in part to a significant increase in tax receipts and new financial inflows from the HIPC Initiative, enabled the government to comply with its commitments in terms of distribution of budget resources, notably for priority PRS and MDG sectors of education, health, drinking water and agriculture. By contrast, other priority sectors such as sanitation, social development (especially targeted programs for vulnerable groups) have received very little attention.

With specific reference to the resources resulting from debt cancellation (HIPC), the supplemental Budget Law of 2004 oriented resources in line with PRSP guidelines, but without correcting the same imbalances impacting sanitation and vulnerable groups. The programming of HIPC resource uses for 2005, integrated into the Initial Budget Law, was mindful of rectifying the previous distribution, and includes more projects from these two sectors.

As regards financial execution of projects and programs, serious efforts have been made to absorb resources, both domestic (including HIPC) and foreign resources. Funding execution rates from domestic resources are relatively high under the “wealth creation” approach (80.65 percent) and the “Improve living conditions for vulnerable groups” approach (98 percent), and makes a contrast with the underperformance of the “Strengthen capacities and access to basic social services” approach, whose average execution rate was only 45.6 percent. As concerns technical execution and social and economic impacts of these investments, more thorough scrutiny will be required to record, for example, the perception of the quality of programs and projects by their participants.

Performance and impact indicators also show signs of improvement in the direction of attaining the MDGs if the trends continue. However, in the social sectors efforts must be made to improve further the rate of execution, the quality of activities and the maintenance of infrastructures. In cross-sector areas, the impact of investments on the performance of the social sectors as well as on wealth creation shows the need to devote more sustained attention to these areas, and in particular to support and transportation infrastructures (for urban and rural mobility), to social protection and to access to electricity.

In the agricultural sector, the government complied with the sector priority in its allocation of resources, although improvement remains to be made in treating the impact of the programs and projects and the coherency between them. The adoption of LOASP constitutes an important step, but passage of the implementation decrees is an urgent matter.

The implementation of the PRSP in 2004 strengthened the monitoring mechanism, in particular by strengthening capacities of the focal points and the regional committees in drawing up project dossiers submitted to the budgetary arbitration process. This eliminated the limitation of availability of projects developed by the POSs and PORs of the PRSP for programming. Optimum operation of the steering and monitoring entities remains limited, however, because of inadequate resources needed to play their respective roles fully. In addition, the participants do not always give the necessary attention to the PRSP monitoring and steering bodies when engaged in the process of consultation and preparation of action programs.

The year 2004 was also taken advantage of by civil society organizations to structure themselves in four principal components: labor unions, women’ organizations, NGOs and OCBs. These components consolidated their presence in Senegal’s 11 regions and are now involved and consulted in the various processes shaping public policies. On the basis of these accomplishments, the OSCs will be in a position to create the Civil Society Observatory called for in the PRSP.

Generally speaking, the OSCs have experience in reducing poverty. Their projects track the Poverty Reduction Strategy. However, the quality of their results is affected by a lack of appropriate resources, absence of monitoring at all levels, lack of coordination/dialogue and poor synergy between the participants. In this connection, all participants in local development foresee an important role for the new Automated Monitoring System, and from the potential for accessing more reliable public funding to stamp out poverty in the regions.

VI.2. Recommendations

The following recommendations emphasize a number of approaches that deserve priority action in order to improve PRSP implementation. In the Annex to this report specific recommendations from the various commissions are given.

Budget articulation /PAP:

  • o Strengthen exchanges between technical ministries, MEF agencies and the unit charged with coordination of PRSP implementation, to harmonize the various projects included in the PTIP with actions contained in the PRSP;

  • o Harmonize the nomenclature for presenting projects in the various programming and monitoring instruments (SIGFIB, PTIP and PAP);

  • o Strengthen the capacities of participants from Senegal’s center to its periphery through training sessions on the preparation of project applications;

  • o Integrate OSC projects into Local Development Plans created by local governing entities.

Budgeting process:

  • o Involve the focal points and the sector committees in the process of ministerial budget preparation;

  • o Include in the MEF budget orientation letter explicit instructions on taking gender into consideration when formulating project proposals;

  • o Strengthen budget allocations intended for sectors known for job creation, such as fishing, agriculture, trade and rural development programs;

  • o Create a PRSP resource access mechanism (HIPC, budget) for the OSCs22 (NGOs, OCBs, neighborhood councils, etc.) active in the regions (especially for implementing PORs) and for decentralized cooperative projects, notably for implementation of projects designed for vulnerable groups.

Steering the PRS:

  • o Draw up an annual program consolidating activities of national and regional entities steering and monitoring PRS implementation and guarantee their funding;

  • o Institutionalize dialogue between the government and the technical and financial partners within the framework of PRS implementation;

  • o Establish multi-sector cooperation frameworks between the various ministries.

Monitoring/evaluation of policies, programs and projects:

  • o Institute training programs for national and regional participants on quantitative and qualitative monitoring instruments;

  • o Accelerate establishment of the Observatory of Civil Society;

  • o Develop a training program designed to strengthen the abilities of OSCs as project and program managers;

  • o Once the budget is adopted, ensure that MEF transmits to the regions information on BCI projects, to ensure follow-up and facilitate preparation of the PRSP progress report;

  • o Create a monitoring/assessment matrix that includes gender, in particular by generating a corpus of disaggregated statistical data and performance indicators according to gender, and institutionalize the experiments/strategies developed by the various participants;

  • o Extend and consolidate the work of recording and monitoring of activities already begun in the regions of Kolda, Ziguinchor and Tambacounda, to create better visibility of OSC activities, by implementing the Automated Assessment System for projects as soon as possible;

  • o Support the creation of local dialogue frameworks more representative of the layers of society and able to carry out the PRSP program in the long term.

    An example of an entity that must be taken into account: the neighborhood councils striving to fight poverty and currently playing a crucial part in the local development process;

  • o Take note of food safety impact indicators with a view to measuring the efforts in the agricultural area.

Information and communications:

  • o Accelerate the creation of the CSPLP web site for sharing information;

  • o Accelerate creation of the development portal. This important instrument has as objectives drawing together the full range of resources, information and tools available in the areas of development and fighting poverty, promoting cooperation and sharing of experience and knowledge among members of civil society, the private sector and the public sector;

  • o Increase involvement of the OSCs by creating an ongoing dialogue framework between the various participants;

  • o Translate the PRSP into the indigenous languages, enabling populations to better understand it and make it their own;

  • o evaluate and institutionalize good practices in the fight against poverty drawn from the various participants in each region and disseminate these practices widely.

Priority sector and cross-sector measures:

  • o Take whatever steps are needed to improve allocations to PAP priority sectors not adequately taken into consideration in the 2003 and 2004 budgets.

    Noteworthy among them are programs and projects on behalf of vulnerable groups in the sanitation sector.

  • o Accelerate the definition of ongoing sector strategies to ensure better coherency between the PRSP and the various strategies formulated or updated since the publication of the PRSP (2003–2005).

  • o Adopt the LOASP implementation regulations.

  • o Finalize and implement the Accelerated Growth Strategy.

  • o Make the National Employment Observatory functional and be alert to consideration of fundamental worker rights when framing policies.

  • o Monitor integration of the objectives and strategic approaches of national gender equity and equality policy (SNEEG) when preparing and implementing sector strategies, policies and programs.

  • o Continue and strengthen grants of resources to local governing entities so as to strengthen their capacities.

  • o Accelerate the adoption of measures decreed by the government with the private sector.

  • o Accelerate implementation of decentralized execution of the BCI and make the CDMTs operational.

  • o Monitor application of the environmental code by making systematic studies of environmental impacts23 within the framework of the implementation of the PRSP and the SCA.

Guidelines for revising the PRSP:

  • o Maintain and strengthen social dialogue with civil society organizations, within the framework of the design, implementation and assessment of public policies.

  • o Ensure full integration into the revised PRSP of the various strategies formulated or updated since the publication of the PRSP (2003–2005).

  • o Ensure full integration into the revised PRSP of the results emanating from MDG thematic groups.

  • o Give particular attention to interdisciplinary and inter-sector strategies so as to support initiated efforts in basic social services (education, health, drinking water and sanitation) and wealth creation. In particular, emphasis should be place on development of structural infrastructures (to provide access to farming areas, improve urban and rural mobility, develop storage infrastructures and adequate means of transportation, etc.), energy, reduction of risks from catastrophes and social protection.

  • o Emphasize institutional measures and reforms needed to improve the commercial and business environment by enhancing public/private dialogue, improving the social climate and social dialogue, simplifying administrative procedures and creation of a better adapted system of taxation.

  • o Continue efforts in all domains to reduce inequalities between Dakar and localities in Senegal’s interior.

  • o Take into consideration contributions by local governing entities when implementing the PRS.

  • o Ensure articulation of the PRSP with subregional strategies (WAEMU, ECOWAS) and regional strategies (African Union, NEPAD).

VI.2. Matrix of Recommendations

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ANNEXES

ANNEX 1: LIMITED LIST OF INDICATORS

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The objectives set for indicators 7.1 and 7.2 are to complete 300 km of laterite roads and trails and 1,000 km of dirt roads.

ANNEX 2. BREAKDOWN OF 2004 HIPC RESOURCES

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ANNEX 3. BREAKDOWN OF 2005 HIPC RESOURCES

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ANNEX 4.REGIONAL IMPLEMENTATION AND MONITORING OF PRSP

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ANNEX 5. ALIGNING THE ACTIVITIES OF THE OSCS AND OTHER PARTNERS WITH THE PRSP

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ANNEX 6. USE OF GUIDING PRINCIPLES

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ANNEX 7. RECOMMENDATIONS BY REGION

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ANNEX 8. PRINCIPAL RECOMMENDATIONS BY GROUPS OF PARTICIPANTS

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ANNEX 9. TABLES ON BUDGET PROGRAMMING AND EXECUTION

Table 1.

Articulation by sector and wealth-creation strategic approach

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Table 2.

Articulation by sector and strategic approach, “strengthening capacities and promotion of basic social services”

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Table 3.

Articulation by sector and strategic approach, “Improve living conditions of vulnerable groups”

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Table 4.

List of priority actions not benefiting from a project or program, by sector and objective

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Table 5.

Budget execution: agriculture

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Table 7.

Completion of PAP projects funded internally, 2004; Sector: SME support

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Table 8.

Execution of PAP projects funded internally, 2004: crafts sector

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Table 9.

Execution of PAP projects funded internally, 2004: livestock sector

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Table 10.

Execution of PAP projects funded internally, 2004: energy sector

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Table 11.

Execution of PAP projects funded internally, 2004: industrial sector

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Table 12.

Execution of PAP projects funded internally, 2004: support infrastructure sector

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Table 13.

Execution of PAP projects funded internally, 2004: mining sector

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Table 14.

Execution of PAP projects funded internally, 2004: education/training sector

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Table 15.

Execution of PAP projects funded internally, 2004: drinking water sector

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Table 16.

Execution of PAP projects funded internally, 2004: sanitation sector

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Table 17.

Execution of PAP projects funded internally, 2004: natural resources and environment sector

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Table 18.

Execution of PAP projects funded internally, 2004: health sector

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Tableau 19.

Execution of PAP projects funded internally, 2004: childhood sector

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Table 20.

Execution of PAP projects funded internally, 2004: women sector

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Table 21.

Execution of PAP projects funded internally, 2004: housing for vulnerable groups sector

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1

Specification of the terms of reference [and] selection and supervision of consultants were undertaken by each commission completely independently, with the financial cost borne by the financial partner (GTZ) and the organizations of civil society.

2

Adjusted general trade

3

The structural reforms are financed from external resources within the framework of the Private Sector Adjustment Program planned with the World Bank.

4

Only taken into account were programs and projects enjoying firm commitment by partners, and for which national budget counterparts are envisaged and secured.

5

The PRSP’ fourth approach concerns decentralized implementation.

6

For instance, a project in Saint Louis and in Louga will have the same code as a project in Ziguinchor, Tamba and Kaolack, or a project that is countrywide in scope.

7

Source: Revue trimestrielle d’information et d’analyse of the MEF of Senegal.

8

These projects are taken into consideration when assessing the execution of domestic resources.

9

This amount excludes operating expenses not budgeted in the LFR.

10

In the case of the AFDS, the OCBs undertake the entire contract bidding process. This is also true of PNIR and the PSIDEL, in which Rural Councils undertake these tasks.

11

Commitment included in the matrix of measures entitled “Promote accelerated growth” (Cf. PRSP, p. 48).

12

The Integrated Framework’ Action Plan was approved by the government of Senegal at the Council of Ministers’ meeting of April 10, 2003.

13

The circular letter dated April 2005 advised all contracting authorities of their obligation to draw up public contract bidding plans each budget year, to be submitted to the CNCA for approval prior to their execution.

14

Percentage of households or individuals living below the absolute poverty threshold, i.e., 2,400 calories per adult equivalent.

15

Dental surgeons (5), pharmacists (5), advanced technicians in anesthesia-reanimation (15), advanced technicians in medical imagery (15), ophthalmological technicians (10), advanced technicians in kinesitherapy (15), advanced technicians in biology (15), technicians in sanitation engineering (12), sanitation assistants and agents (17) etc.

16

Studies on the PIP agricultural potential upstream from the Krankaye depression and preliminary sketch of construction of irrigated zones upstream from Ngalenka; land use master plan for Lac de Guiers; delta water plan—priority investments to secure 2,500 ha of private irrigation; techno-economic feasibility study for rehabilitation of plots on the right bank of the Lampsar; APD and DCE studies of 795 ha on land in Ndiaye, Ngomène, Ndellé and Lampsar; studies on the Madina Pété wells and drilling; APD/DCE studies of PDRM social infrastructures; APD/DCE studies of facilities, trails and water supply points in Bakel; APD studies at NDiawara.

17

Each committee is guided by a focal point and includes leaders from departmental agencies, the DAGE and others appointed by ministerial departments.

18

A list was drawn up, based on the database from indicators emanating from a participatory process leading to a synthesis based on study of the sector indicators. Meetings with development partners and sector representatives held while the list was being formulated, resulted in a review of all the data and a choice of objectives. The process was long (2003–2004), but it produced a broad consensus and stronger embrace of the results by all participants. PRSP implementation-year 2004 report

19

ENDA GRAF—Proposal for contributing to the implementation of Senegal’s national PRSP program, January 2005.

20

An assessment of certain regional interventions made in 2004 shows that “The OSCs make an enormous contribution to reducing poverty. Projects completed since 2003 are very sizeable and cover several areas. In addition to these substantial results, to be evaluated in their impact on the PRS, the OSCs are currently executing 126 projects and have 115 others in preparation. Sixty-eight (68) projects were recorded in Tambacounda, 127 in Kolda and 49 in Ziguinchor.” Cf. Recensement des Projets et Programmes des ONG et OCB intervenants dans les régions de Tambacounda, Kolda et Ziguinchor, Mody Sow, 2004.

21

This task force includes a variety of types of participants, under the leadership of CSPLP/MEF and MFDS, with the support of UNIFEM.

22

In particular, the OSCs with social roots in certain region (rural communities, neighborhood, etc.) in order to strengthen embrace of the PRS in partnership with local government. PRSP implementation—year 2004 report

23

The national environmental plan, PNAE, created in 1997, and the Medium Term Sector Expenditure Framework of the Ministry of the Environment could serve as a basis.

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Cover IMF Staff Country Reports
Senegal: Poverty Reduction Strategy Paper: Second Annual Progress Report
Author:
International Monetary Fund
Volume/Issue:
Volume 2006: Issue 068
Publisher:
International Monetary Fund
ISBN:
9781451833997
ISSN:
1934-7685
Pages:
103
DOI:
https://doi.org/10.5089/9781451833997.002
Chart 1.

Change in tax receipts (2002–2004)

(in CFAF billions)
Chart 2.

Breakdown of budget receipts

(In CFAF billions)
Chart 3.

Change in capital expenditures

(In billions of CFAF)
Chart 4.

Breakdown of capital resources, 2002–2004
Chart 5.

Allocation of HIPC resources by sector in 2004

(investment)
Chart 6.

Breakdown of external resource allocation by sector

Gross School Enrollment Ratio (GSER) - 2000–2004

Trend in the vaccination coverage rate from 2000 to 2004

Trend in the rate of primary care consultations from 2000 to 2004

Change in ratio of State transfers to local governments to total resources of local governments

Schematic of the institutional system for implementation and monitoring