Senegal
Poverty Reduction Strategy Paper

This paper focuses on Senegal’s second poverty reduction strategy paper (PRSP–II). It summarizes the results of the participatory PRSP review process prior to final validation and adoption by the government. As an economic and social policy document for growth and poverty reduction that draws legitimacy from an underlying participatory process, it sets poverty reduction targets for the medium and long terms, defines progress indicators, and establishes annual and intermediate targets. It also identifies the resources to be mobilized to achieve the desired results.

Abstract

This paper focuses on Senegal’s second poverty reduction strategy paper (PRSP–II). It summarizes the results of the participatory PRSP review process prior to final validation and adoption by the government. As an economic and social policy document for growth and poverty reduction that draws legitimacy from an underlying participatory process, it sets poverty reduction targets for the medium and long terms, defines progress indicators, and establishes annual and intermediate targets. It also identifies the resources to be mobilized to achieve the desired results.

1. INTRODUCTION AND CONTEXT

1. Senegal prepared and implemented a Poverty Reduction Strategy Paper (PRSP) covering the period 2003-2005. The results achieved in this period are considered satisfactory. Economic growth maintained a positive trend, with an average annual growth rate of 5 percent (6.7 percent in 2003 following the 2002 slowdown; 5.6 percent in 2004, and 5.5 percent in 2005) against a backdrop of improved fiscal management, control of inflation (less than 2 percent per year), and the consolidation of other macroeconomic fundamentals.

2. A review of the execution status of the matrix of measures initially set forth in the PRSP showed that most of the expected actions were implemented in 2004. In the case of most of the targets contained in the basic PRSP framework, the country’s macroeconomic performance made it possible to attain the results corresponding to the optimistic scenario, or else to approach the trend scenario.

3. The PRSP progress reports for 2003 and 20041 referred to significant progress in implementing the strategy in the priority PRSP sectors. The government implemented most of the measures in the “wealth creation” pillar, and set the national economy on course for rapid growth as a result of rational macroeconomic policies, improvement of the investment climate, and progress on structural reforms, particularly in the groundnut and electricity sectors. Nonetheless, poverty reduction impacts were blunted by shocks such as the catastrophes that have afflicted the Senegalese population over the last few years, including unseasonable rainfall, drought, flooding, the “le Joola” tragedy, locust infestation, etc. With regard to the second pillar, investments in human capital were generally given special attention, with 50 percent of the operational budget being allocated to the social sectors (education, health). Although not all the expected effects have yet been seen, investments in basic social services made it possible to improve social indicators aimed at achieving the MDGs (see Box 1).

4. Nonetheless, these reports also showed that improvements in the framework of the third pillar, targeting vulnerable groups, and in the sanitation and energy sectors, are poor because the expected investments were not allocated to the identified projects.

5. Taken as a whole, these efforts partly justified Senegal’s attainment of the completion point under the Enhanced HIPC Initiative in April 2004, its treatment by the Paris Club, eligibility for the Millennium Challenge Account (MCA), and most recently, in 2005, Senegal’s admission into the G-8 debt cancellation initiative.

6. On the other hand, the healthy growth achieved during the period was still below the 7 percent target considered necessary to create sufficient jobs on the labor market, significantly improve household living standards, and cut poverty in half by 2015.

7. If economic growth remains limited in this respect, it is because the private sector, which is the driving force, continues to face a number of structural constraints. These relate, in particular, to the persistence of administrative barriers to enterprise creation and operations, delays and uncertainties in legal and judiciary procedures, low factor productivity, relatively high production costs, difficult access to financing and property, and production that is not highly diversified. Infrastructures that support economic activities, particularly physical infrastructure, are generally underdeveloped, although telecommunications is an exception. Urban mobility problems persist in Dakar, generating significant additional costs and thus making the economy less competitive. At the sector level, the pace of economic growth is still sensitive to the behavior of agricultural production, which itself is highly dependent on rainfall patterns. GDP growth was restricted in 2002 because of a drop in agricultural production, largely stemming from the impacts of unseasonable rainfall and flooding along the Gambia River.

8. This situation is all the more worrying because the globalization process is consolidating, with its succession of constraints and opportunities based on respect for economic norms that underlie competitiveness. It is now recognized that greater engagement in global trade circuits enables developing countries to boost their economic growth and reduce poverty in the medium and long terms. Recently, however, Senegal’s exports have been growing very modestly, contributing to a slackening of GDP growth, failing to cover import needs, and thus adding to the country’s structural trade deficit.

9. The scale of the exchange rate correction in 1994 certainly made Senegalese exports more competitive, but this was not sufficient to ensure good foreign trade results, since the export basket still largely consists of products for which demand is shrinking on the world market. Export performance is further weakened by access barriers in developed country markets.

10. The government made major efforts to fulfill the public expenditure distribution ratios contained in the PRSP, with a view to promoting sustainable development that favored the most impoverished population groups. Nonetheless, the problem of public expenditure effectiveness still persists, particularly in the health and education sectors; and the quality and availability of human resources remain among the greatest obstacles to vigorous and inclusive growth.

11. It is against this backdrop that the Senegal has prepared this second PRSP, with the aim of reducing poverty by half by 2015 and attaining the Millennium Development Goals (MDGs). For this purpose, the government will implement a sustained economic and social policy to substantially improve its socioeconomic performance and set the country on a path to sustainable human development. The consensus surrounding this strategy reveals the need for political decision-makers, national stakeholders, and development partners to mobilize to combat poverty and exclusion, by establishing a close link between poverty reduction, economic progress, sustainable production and consumption, gender equity, capacity strengthening, and good governance.

Trend of Selected PRSP Indicators and Attainment of the MDGs (some key targets)

Box 1:
Source: CSPLP-MEF (2006)

Translation of legends: Percentage of population with access to sewerage services. Drinking water access. Percentage of population living below the poverty line. Trend of school enrolment rate.

2. POVERTY DIAGNOSIS2

12. As poverty is a multidimensional phenomenon, the diagnosis first considered people’s perception of poverty; and then analyzed its profile based on quantitative data summarized through a monetary or non-monetary indicator.

2.1 Perception of poverty

13. People define themselves as poor or non-poor according to their own criteria. A proverb heard during the participatory process defines poverty as “l’absence d’avoir, de savoir et de pouvoir” (lack of assets, knowledge, and power). Lack of assets can be interpreted as insufficient income and physical belongings, while lack of knowledge and power can be interpreted as insufficient human and social capital, respectively. This definition of the determinants of poverty is ultimately broader than that used by economists. Senegal’s strategy is based on this definition, which reflects a culture that harks back to the nature of social and political organization in local communities and the strategies underlying them. It is also important to invest in the culture that determines people’s lifestyle and ultimately influences the method used to combat poverty.

Poverty from the people’s point of view

According to the people, the main signs of poverty are, in order of importance: difficulty in obtaining food, lack of work, lack of health care, lack of decent housing; and the government’s order of priorities should be: (i) youth employment (20.1 percent); (ii) lowering the prices of basic commodities (18.9 percent); (iii) access to basic health care (17.7 percent); and (iv) education for children (11.3 percent).

Perceived poverty in Senegal can also be interpreted through national languages and expressed through various indicators, of which the most salient are contained in the following definition: “Persons are poor if they have has nothing, cannot satisfy their basic social needs, and have no opportunities.” This extreme type of poverty goes by the following names (in the various native languages): ndool, miskiin, walaakaana (Wolof), baasdo (Pulaar) karaxan (Malinké), xonditoone (Djallonké), ajobo (Bassari), tampinté (Soninké), seetan (Bambara), konkoo (Mandingue) coitadessa (Creole). The aforementioned definition of a person living in poverty is translated in popular vernacular in the following terms: nit kuy taxaw rek te yorewul dara (someone who is alive but lacks everything) — a person who is poor lives in total, economic, and social destitution, without support who can depend only on those around him for survival. Such a person is often considered a social dropout and lives in a state of quasi-permanent impoverishment, cut off from the social fabric, preferring to live life in the most total anonymity. Poor households (new ji doole, baadoolo, faxiir (Wolof) Ma teugniam, Wu bone (Diola) Tampube (Pulaar), Semeexo (Djallonké) Fangantan (Malinké), Fasonteñaani (Soninké) Fantan (Bambara), have very precarious income sources that are insufficient for their food needs.

To explain poverty, people evoke individual responsibilities expressed through the proverb “leparesseux est responsable de son état d’indigence” (the lazy man is responsible for his own indigence), but also the lack of social relations. Work is thus seen as the primary value to be promoted, to overcome poverty “Naq jerinu”. The network of relationships is a key factor here: the wider the range of family, colleague, ethnic relations etc., the more developed is a person’s capacity to overcome poverty, destitution, and vulnerability, In other words, social relations are the basis of support through solidarity.

(EPPS-Focus group, 2001)

Nonetheless, certain cultural values, such as le xersa (modesty/shame), le jom (courage), le mun (patience and perseverance), often discourage people from revealing their state of poverty. This is particularly true of women who prefer to pursue alternative strategies to overcome periods of crisis (small-scale commerce, livestock breeding, etc).

2.2 Poverty profile

14. To characterize poverty, a poverty line or threshold was defined,3 below which a household (or individual) is considered poor (ESAM-I, 1994/95; ESAM II, 2001/2002; CWIQ, 2001).

15. The results of the second Senegalese Household Survey (ESAM II) show that the incidence of poverty4 is still high, despite having fallen sharply between 1994 and 2002: the proportion of the population living below the poverty line dropped from 67.9 percent in 1994/1995 to 57.1 percent in 2001/2002, i.e., a 10.8 percentage point reduction in absolute terms, and 16 percent in relative terms.

Table 1:

Poverty and Inequality in Senegal, 1994-2002

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Source: ESAM II, 2001/2002, ESAM I, 1994/1995

16. At the household level, poverty incidence fell from 61.4 percent in 1994/1995 to 48.5 percent in 2001/2002, i.e., a drop of 16 percent; but these figures understate the incidence of poverty as perceived subjectively by heads of household, since 65 percent of households questioned consider themselves poor, and 23 percent of them claim to be very poor. Moreover, unlike objective measures that point to a reduction in poverty, subjective measures indicate an increase in the same period. Almost two households in every three (64 percent) consider that poverty has worsened over the last five years, whereas objective measures show a 16 percent reduction.

17. Poverty is more widespread among heads of household with low education levels. Almost 55 percent of heads of household without education are poor, compared to 46 percent of those with primary schooling. Poverty incidence is also falling more sharply among families where the head of household has secondary schooling (26 percent) or higher (12.5 percent). The low level of women’s education further aggravates household poverty.

18. Poverty incidence increases with household size. The poorest 20 percent of households have an average of over 10 members, while the average size of the wealthiest 20 percent is eight. In consumption terms, ESAM II shows that annual per capita consumption in households of between one and four members is twice that of households of between five and 10, and three times more than in those with 10 to 14 members. This positive correlation between household size and poverty highlights the inter-relationships that exist between demographic and poverty variables in Senegal. The high level of fertility (5.3 children per woman) that is characteristic of large households contributes to the lower per capita consumption rate, exposing household members to privations that could have a lasting effect on their capacities to access assets, knowledge, and know-how, thereby creating conditions for the persistence of poverty.

19. In households where the head of family has relatively low income, expenditure rates are very high. In most cases, other household members have no income and continue to be maintained. This situation reflects the high dependency ratio that results from the large proportion of young people in the Senegalese population. For these young people, who represent 58 percent of the population, the transition to adulthood is arduous, given the difficulty of entering the labor market, the precarious nature of employment, and difficult conditions for gaining access to housing.

20. Although poverty generally affects women more than men, its incidence is lower among female-headed households. ESAM II data show that poverty is less widespread in households headed by women (37 percent compared to 51 percent in the case of male-headed households). In Dakar, however, where women seem to have higher status (autonomy, participation, human and social capital), the difference in poverty levels between female-headed households and those headed by men is actually quite negligible (33.7 percent compared to 32.1 percent).

21. This apparent advantage could be the result of a difference in household composition between the two categories, as well as the larger size and significance of transfers to households headed by women. Furthermore, women heads of household tend to be more autonomous and more enterprising than other women, and they have better access to resources.

22. Roughly 56 percent of households headed by an older person live in poverty (such households account for 19 percent of total poverty, although elderly people are only 6 percent of the population). Individuals in this age group (over 60 years old) are beset by numerous problems, including low levels of participation in citizenship and decision-making mechanisms; organizational shortcomings in the care system; the high cost of consultations, medical procedures and medications relating to their physical health; difficult access to bank credit or to special support and reintegration funds, and also to land and housing. The vulnerability of households headed by older people also reflects the problems that younger generations face in gaining financial autonomy and taking over.

23. Poverty incidence has fallen more sharply in urban areas than in the rural sector. In rural zones, 65.2 percent of individuals and 57.5 percent of households are living below the poverty threshold. The figures are lower in other towns (50.1 percent and 43.3 percent, respectively), and sharply lower in Dakar (42.0 percent and 33.6 percent). As a result, the rural sector contributes 65 percent of all poverty, although it has less than 55 percent of the total population. In contrast, Dakar, which accounts for one quarter of the country’s population, contributes less than 18 percent of total poverty.

24. The regions of Ziguinchor and Kolda, which for several years have been immersed in the Casamance conflict (insecurity), with an enclave status, register the country’s highest poverty levels (above the national average): 67.1 percent and 66.5 percent respectively (see Table 2). The next poorest regions are Kaolack (65.3 percent) and Diourbel (61.5 percent), which are at the heart of the groundnut basin, and are suffering from the effects of a decline in economic activities linked to ground nuts when there are few other alternatives, and Tambacounda (56.2 percent). The moderately poor areas of Thiès (48.6 percent), Fatick (46.3 percent), Saint Louis/Matam (42.1 percent) have higher income levels thanks to activities in the tourism sectors, irrigated crop growing, fishing, emigrant transfers (especially to Matam), the presence of agrifood industries (particularly in Saint Louis), and extractive industries (Thiès). Lastly, the least poor regions, i.e., Dakar (33.6 percent) and Louga (36.6 percent), receive substantial transfer flows. Dakar is also an economic, industrial, administrative, intellectual, and cultural hub, while the Louga region has wealth linked to livestock breeding.

Table 2:

Poverty Incidence and Contribution to Total Poor by Administrative Region

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Source: DPS and World Bank (ESAMII, 2001/2002).

2.3 Manifestations of Poverty

25. Lack of resources is a key factor in the deterioration of living standards, which aggravates inequalities and leads in the long run to extreme poverty. In the absence of a public sector targeting and assistance policy, and without sustained community solidarity involving changes in ethical and cultural reference points, this dynamic leads to a breakdown in social relations and exclusion among the most deprived population groups, pushing certain individuals into the practices discussed below.

26. Violence and crime. Individuals who are arrested are mostly young. The most recent justice statistics show a crime rate of about 2 percent, with a rapid increase in offenses and a heavy presence of young people among the prison population. This rise in juvenile crime could be the result of a relaxation of parental supervision of adolescent education and a loss of cultural valu

27. es. Violence against women is also becoming common in poor sectors and in destitute families, often leading to tragic situations.

28. Begging. Talibes and other street beggars (mostly children and adolescents) are thought to account for 1 percent of the population. The talibé phenomenon is a serious social problem involving human rights violations. Talibés can be seen at highway intersections, markets, mosques, banks, and other public places in urban areas, as they pursue their daily quest for food and money both for their own survival and for the maintenance of their marabout.

29. Violence against children. As a result of household poverty, many children become victims of violence such as early and forced marriage, or suffer the side-effects of armed conflict (landmine victims in Casamance). In urban areas, the resurgence of drug use correlates closely with poverty and also fosters violence within families and communities.

30. Child labor. Child labor is defined here as the exercise of an economic activity by children under 15 years old. Roughly 32.5 percent of children between 10 and 14 years of age have already started their working life. Young girls between 10 and 14 years of age are employed as domestic servants or in selling food products to help maintain poor households. Poor women and young girls leave their village in a quest for work (domestic service, grinding millet, washing clothes, small-scale commerce) to make ends meet. In the process they are exposed to prostitution, exploitation, rape, and infanticide.

Table 3:

Proportion of Child Workers by Sector of residence and Sex

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Source: Senegalese Household Survey, 2002

31. Apart from these situations of violence, abuse, exclusion, and exploitation of children in poor communities, another fundamental problem concerns the failure to register children in the civil registry. Despite efforts made in recent years (60 percent in 2000 and 78.5 percent in 2004), non-registration continues to bar access to school and hence the exercise of a fundamental right.

32. Prostitution. Women who work in prostitution are relatively young (average age estimated at 28 years) and almost half of them are divorced. Roughly 20 percent are under the legal age (21 years). While a third are single, the majority are either divorced (48 percent), married (12 percent), or widows (6 percent). HIV prevalence among prostitutes remains very high according to the most recent survey results.

33. Environmental degradation. The long years of drought, compounded by unsustainable consumption and production models, have combined to make the environment more fragile. Environmental degradation has its greatest effect on the poor, who depend heavily on ecosystems for their survival and well-being. In the rural sector, low standards of living continue to put pressure on natural resources, and this explains the alarming rate of deforestation despite efforts made in this area. Environmental degradation particularly relating to pollution by motor vehicles that are over 20 to 30 years old, is a major public health problem in Senegal today.

34. The main signs of poverty identified by people themselves are difficulties in obtaining food, lack of work, lack of health care, and lack of decent housing, in that order. They also rank the government’s priorities as follows: (i) youth employment (20.1 percent); (ii) lowering the prices of basic commodities (18.9 percent); (iii) access to basic health care (17.7 percent); and (iv) child education (11.3 percent).

35. Other sector-level studies show that poverty is also manifested by low levels of energy consumption and by the consumption profile. Final energy consumption per capita in Senegal (0.18 toe) is low compared to averages in ECOWAS, Africa as a whole, and the world (0.45 toe, 0.5 toe and 1.1 toe, respectively).5

2.4 Determinants of poverty

2.4.1. Economic situation/insufficient income

36. From 1960 to 1993, the estimated average annual growth of the economy was about 2.7 percent. This was below the demographic growth rate of 2.9 percent per year in that period, resulting in reduction in real income per capita and employment, as well as rising inequality. This situation of economic and social crisis led Senegal and its partners from West and Central Africa to realign the parity of their common currency in relation to the French franc.

37. Following the devaluation of the CFA franc in 1994, the economy regained a growth path and GDP expanded by an average of just under 5 percent per year from 1994 to 2002, in a context of controlled inflation and continuous reduction of public sector deficits. The growth recovery was fueled by a recovery of competitiveness in certain export products, particularly fish and groundnut products, and phosphates, etc.

38. As noted above, the proportion of poor households declined from 61.4 percent to 48.5 percent, implying a 16 percent reduction in poverty incidence in relative terms, but the impact of growth on poverty among the various population groups was blunted by ineffective redistribution policies. Inequality as measured by the Gini index has remained broadly stable and even increased slightly: by this measure inequality among individuals rose from 32.6 in 1994-1995 to 34.2 in 2001-2002; other figures show that 41 percent of total annual expenditure is undertaken by the wealthiest 20 percent of the population, and just 8.1 percent by the poorest 20 percent.

Figure 1:
Figure 1:

Income Inequality in Senegal

Citation: IMF Staff Country Reports 2007, 316; 10.5089/9781451834031.002.A001

Translation of legend: Individual Lorenz curves by sector of residenceTotal expenditureIndividualsUrban Dakar, Other towns, Rural sector

39. The country’s economic and financial performance over the last few years is still inadequate to reduce poverty significantly with a view to attaining the MDGs, particularly cutting poverty in half by 2015. At the current rate of economic progress, it would take about 30 years to double Senegal’s per capita GDP, which is still one of the lowest in the world (US$635 in 2003). Pockets of severe poverty persist, with marked differentiation between the urban and rural sectors.

40. Growth continues to be held back by structural constraints, such as the economy’s lack of diversification, relatively high production costs, and difficult access to financing and land. Despite the rapid expansion of decentralized financial systems, access to financial services remains limited for microenterprises and new entrepreneurs in the informal sector. Long-term loans account for less than 5 percent of all credit in the economy, reflecting insufficient stable bank resources. The lack of developed industrial sites is another key constraint on capital accumulation, large-scale foreign direct investment inflows, and private sector development. The Investment and Capital Projects Promotion Agency (APIX) recorded an implementation rate of less than 50 percent of approved investments between 2001 and 2004, resulting mainly from an unwillingness to make developed land available in Dakar. The pace of economic growth relies on agricultural production that is highly dependent on rainfall. Although labor productivity is improving it remains well below emerging country levels.

2.4.2. Insufficient and unequal access to basic social services

Education and Poverty

41. The rate of demographic growth in Senegal, estimated at 2.5 percent, puts considerable pressure on the nation’s education system, in which large increases in educational inputs are needed each year to keep pace with gains in terms of access.

42. Budgetary appropriations to the sector increase year by year, growing from 32 percent of the operational budget in 2002 to nearly 40 percent in 2005. This reflects the authorities’ firm resolve to strengthen the education system as a key pillar of growth and poverty reduction. The results have been mixed, however. Overall, nearly 80 percent of children attending primary school live less than 30 minutes from their schools. In urban areas (87.3 percent) and Dakar in particular (92.9 percent) schools are more accessible, whereas in rural areas, the percentage of children living less than 30 minutes from their primary schools is 69.5 percent. Roughly 56 percent of people are satisfied with the quality of education services, the satisfaction level being higher in urban areas. Access to school supplies is a major problem for education. As much as 80 percent of people who are dissatisfied with the quality of education services do not have access to full supplies. This finding highlights the need for further actions favoring the rural sector in particular, to achieve the objectives of the Ten-Year Education and Training Program (PDEF), and more generally those of the World Declaration on Education for All (EFA, 2000).

43. Although the gross primary school enrolment rate has risen steadily from 69.4 percent in 2001 to 82.5 percent in 2005, it is still too low—below the average for Sub-Saharan Africa—and the number of pupils per teacher is 51 in Senegal compared to an average of 44 in Sub-Saharan Africa. The enrolment rate is 95 percent in urban areas and 70 percent in rural zones. Despite the progress made, nearly 300,000 children of primary school age in rural areas and 36,000 in urban zones are not attending school. In the case of rural zones, one third of these are in the Diourbel region, followed by those of Kaolack and Louga.

44. Analysis of the different expenditure per capita quintiles also reveals the inequalities that exist between rich and poor. The gross enrolment rate differential between the first and fifth quintiles is 32.4 nationally, 30.8 in urban areas, and 55.9 in Dakar.

Figure 2:
Figure 2:

Gross enrolment rates by sex, in each quintile of expenditure per capita, are relatively low.

Citation: IMF Staff Country Reports 2007, 316; 10.5089/9781451834031.002.A001

45. Primary school enrolment of girls is still relatively low; enrolment rates were 84.4 percent for boys and 80.6 percent for girls in 2005. Nonetheless, the analysis of gross enrolment rate differentials shows that female heads of household are better at ensuring their children attend school, with a gross enrolment rate differential of roughly 13 points as compared to households headed by men. In contrast, inequalities between the education of boys and girls are more marked in households headed by women (13.9 points) than in those headed by men (8.6 points).

46. The primary school completion rate is 53.9 percent (2005) compared to an average of 66 percent for countries accessing the International Development Association (IDA) facility, while primary education expenditure absorbs 2.08 percent of GDP, compared to an average of 1.84 percent for these countries. Nearly 10 percent of all children in the 7-14 year age group have already dropped out of school, with girls tending to drop out more than boys; Dakar (9.7 percent) has a higher dropout rate than other towns (8.4 percent) and rural areas (7.1 percent). Over 30 percent of dropouts are the result of early entry into working life and/or of economic problems, 18.9 percent have failed school, 12.2 percent see no prospects in what school has to offer, and 9 percent leave because of marriage, pregnancy, or illness.

Table 4:

School Dropout Rate among 7-14 Year-olds by Sector of Residence and Sex

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Source: Senegalese Household Survey 2002.

47. Despite large-scale literacy campaigns, only 37.8 percent of adults (15 years old or more) can read and write in at least one language. Even if special treatment is given to rural areas where 95 percent of grassroots community schools are situated, the Senegalese population is mostly illiterate. Less than one person in four in rural areas is literate. Moreover, illiteracy is much more prevalent among women (28.2 percent literacy) than men (49.1 percent). Gender differentials in terms of literacy are less pronounced in Dakar and in urban areas generally.

48. Despite efforts made in the rural sector, resources remain inequitably distributed between rural and urban areas. World Bank estimates put expenditure per pupil in rural zones at roughly CFAF 28,000 per year, compared to CFAF 47,000 spent by the government per pupil in urban areas.

49. The government has made major efforts to expand the supply of primary schooling in rural zones. Between 2000 and 2004, a total of 7,109 new primary classrooms were built, and a further 930 were refurbished (81 percent in the rural sector). Of these, 53 percent were funded domestically, and 42 percent by development partners. The other 5 percent were financed by multisector projects supported by partners working directly with local authorities and communities.

50. To improve pupil attendance and learning, the Senegalese government has also supported school canteens. An assessment by the World Bank6 found that 28 percent of primary schools nationwide, and 34 percent in the rural sector, offer school meals.7 School canteens seem to have a positive effect on enrolment and results: a 2004 evaluation of the impact of the WFP school canteens program in Senegal shows that enrolment rates and success rates are positively correlated with the existence of canteens.

Health and poverty

51. The proportion of budgetary expenses allocated to the health sector has been rising continuously. In accordance with the intermediary targets established in the first PRSP, the health sector’s share rose from 9.5 percent in 2003, to 9.8 percent in 2004, and 10 percent in 2005. Among other things, the additional resources made it possible to recruit 511 health workers in 2005, of whom 125 were doctors, 63 state nurses, 57 midwives, 20 orthopedic technicians, 25 social assistants, 10 social aides, 10 statistical engineers, and senior technicians and support staff. Nonetheless, the sector continues to suffer from insufficient health and social infrastructures and inadequate service provision. Health workers are badly distributed and lack motivation to perform their tasks throughout national territory, particularly in poor and remote areas.

52. Access to health services remains problematic in Senegal, particularly in the case of emergency services. The ESAM II survey shows that only 57.4 percent of the population lives within 30 minutes of the nearest health service facility, and there is a very pronounced disparity between the capital (Dakar) and other sectors of residence. The figure is 86.5 percent in Dakar, compared to just 41.2 percent in rural areas, mainly owing to transportation difficulties linked to long distances and poor roads. While more than 50 percent of urban patients live within 1 km of a health service facility, practically one third of the rural population (32.9 percent) lives more than 5 km away, and this is compounded by often difficult transportation conditions.

53. Access to prenatal services has been rising continuously and is reasonably high throughout the country. As many as 93 percent of women received professional care during pregnancy in 2004-2005 (DHS IV), compared to estimated figures of 64 percent in 1986 (DHS I), 74 percent in 1992-1993 (DHS II), 82 percent in 1997 (DHS III), and 87.5 percent in 2001-2002. These figures imply better monitoring of pregnancy and mother and child health over the years. In the urban sector, pregnancy is generally overseen by professional midwives (88.1 percent of cases), compared to 46.6 percent in rural zones where services are mainly provided by traditional midwives (31 percent).

54. To reduce the disparities between Dakar and the other regions (92 percent of pregnancies attended by qualified personnel in Dakar compared to 26 and 27 percent in Kolda and Tambacounda), the government has made major efforts to improve obstetric emergency services, by implementing operatory blocks and providing adequate equipment for emergency obstetric care (EOC), in over a dozen health centers. With the aim of making EOC more accessible to the most destitute, the government has implemented a subsidy mechanism for caesarean sections in the regions of Ziguinchor, Kolda, Tambacounda and Fatick, which are considered the poorest zones of the country with the highest maternal mortality rates.

55. These efforts have achieved significant progress: the maternal mortality rate fell from 540 to 434 per thousand [sic—per 100,000] between 1982 and 2004, while infant mortality dropped from 68 to 61 per thousand, and the fertility rate decreased from 6.6 (DHS I) to 5.3 (DHS IV). Significant progress was made in coverage of immunization against the main childhood diseases through the Extended Immunization Program (EIP): DTP3 coverage rate among children between 0 and 11 years of age rose from 44.7 percent in 2001 to 80 percent in 2003. Nonetheless, further efforts are needed to meet the MDGs in this area, where women and children are particularly at risk.

56. Malaria is the leading cause of illness in all sectors of residence. It is the cause of 42.6 percent of all disease nationwide, varying slightly from locality to locality: Dakar (41.2 percent), other towns (36.9 percent), rural areas (44.8 percent). In 2004, the prevalence of malarial disease among children under five years old in health districts was 34.30 percent, and the figure for pregnant women was 13.05 percent. Moreover, malaria has been found to impair income, production, and learning, thereby reducing GDP growth in Senegal by an estimated 0.35 percent per year (McCarthy et al. 2000).

Table 5:

Distribution of Ill or Injured Population by Sector of Residence and Disease

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Source: ESAM II, 2001/2002

57. Senegal has one of the lowest HIV prevalence rates in Sub-Saharan Africa, with estimated figures of 0.7 percent among the general population, 0.9 percent among women, and 0.4 percent among men, according to the most recent DHS IV survey. Although this reflects the effectiveness of policies implemented by the country to fight against the pandemic, it also reveals the feminization of the epidemic. Despite these results, around 75,000 adults and 5,000 children are infected with HIV/AIDS (CNLS 2004), which poses a serious threat. Prevalence rates also vary across regions, rising from 0.6 percent in Dakar, to 2 percent, 0.4 percent, and 2.2 percent in Kolda, Tambacounda, and Ziguinchor, respectively. Risk factors include work and seasonal migration by men and the conflicts in the Casamance region, as well as the economic and power relations that exist between the genders. Other factors increase vulnerability to HIV, including proximity to major industrial hubs, tourist centers, travel intersections, religious centers, or urban-periurban-rural interfaces.

58. The scale and complexity of the problems posed by HIV/AIDS led the public authorities to declare the epidemic both a public health problem and a development problem. To respond to the threat of the pandemic, access to antiretrovirals (ARVs) was made easier after 2003 for persons infected. Nonetheless, low rates of voluntary testing and the stigmatization of individuals living with HIV continue to obstruct the fight against AIDS.

Malnutrition

59. Child malnutrition remains a public health problem in Senegal. The nutritional situation is characterized by a predominance of stunting, low weight, iron deficiency (anemia), vitamin A and iodine deficiency, mainly among children, adolescents, and women. These nutritional shortcomings have serious health consequences in terms of illness, mortality, and health expenditure, as well as reduced economic productivity and performance in school.

60. Malnutrition is still highly prevalent in Senegal, particularly in the rural area. Low weight is twice as prevalent in the rural area (22 percent) as in the urban sector (10 percent), the worst affected regions being Kolda, Matam and Saint Louis where levels reach 30 percent. Nonetheless, data from the DHS II and IV (1992 and 2005) and MICS I and II (1996 and 2000) surveys show that the nutritional status of children under five years of age has actually improved. Between 1992 and 2005, the prevalence of weight insufficiency (weight/age) fell from 20 percent to 17 percent; stunting (size/age) dropped from 22 percent to 16 percent; and thinness (weight/size) decreased from 9 percent to 8 percent. These results were achieved thanks to the nutrition programs that have been implemented with support from development partners, particularly the Community Nutrition Project - PNC - (1995-2000) and the Nutrition Reinforcement Program - PRN- (2002-2006), implemented by the Senegalese government.

61. Micronutrient deficiency is another feature of the nutritional situation in Senegal. Anemia affects 84 percent of children under five and 61 percent of all women; and the prevalence of goiter is 33.5 percent in the southeast part of the country. Vitamin A deficiency is estimated to affect 61 percent of children under six and is probably the underlying cause of 30 percent of all infant-juvenile mortality.

Access to drinking water

62. Highly satisfactory results have been achieved in access to potable water in recent years. According to the results of ESAM-II, only 6.5 percent of the population did not have access to water in 2002. Under one person in a hundred finds it difficult to obtain water within 30 minutes from their home, compared to 8 percent in rural areas. A recent analysis (PEPAM 2004) showed that access to drinking water in urban areas has expanded significantly from 78 percent in 2000 to 90 percent in 2004. This progress is largely the result of the ambitious programs of subsidized service connections (branchements sociaux) executed by SONES (the water utility). Despite these significant achievements, there are still serious disparities in access between users and regions. First, there is a significant differential in terms of private connections between the Dakar region (75.7 percent in 2004) and other urban centers (57.1 percent in 2004). Secondly, 20 percent of urban and periurban households, the most modest, rely on standpipes and pay three to five times more for the water service than households with a domestic connection. Specific consumption in the poor quarters of Dakar does not surpass 30 liters per day per person, i.e., half of the average specific consumption of Dakar as a whole.

63. In the rural sector, the rate of reasonable access to drinking water increased from 56 percent in 2000 to 64 percent in 2004. Specific consumption rates are still very low. Users of standpipes, representing 35 percent of rural households, consume no more than 20 liters per day per person. Moreover, significant risks of interruption of the drinking water service still persist, because the management of motorized water pumps is unreliable, despite good results in the testing phase of the REGEFOR program, which now needs to be extended throughout the country.

Access to sanitation

64. Access to sewerage services in the urban sector expanded modestly in 2000-2004, from 56 percent to 57 percent. In 2004, the rate of access was quite high in Dakar, where 64 percent of households had an adequate sewerage system — of which 25 percent involved collective sewerage and 39 percent autonomous or semi-collective. In contrast, access was very low in other urban centers, where only 39 percent of households had a system. In the rural area, 28 percent of households did not have any waste water evacuation system, whereas most households are equipped with traditional latrines that do not meet international standards.8

65. The waste water treatment coverage rate is still far from satisfactory (19 percent in 2004) and the water purification rate only 13 percent. As a result, acute environmental problems are caused by uncontrolled dumping of sewage, which households living close to the dumping zones, often the most poor, are the first to suffer from. The environmental impact of untreated sewage from Dakar into the sea adds to these negative effects.

Access to energy services and poverty

66. The analysis of performance shortfalls in terms of access to basic social services and the competitiveness of the productive sector, revealed a close correlation with the deficit in energy services. Energy consumption remains low because of (i) insufficient supply in relation to demand; (ii) the high cost of access to energy services; and (iii) the quality of the service.

67. Rural poverty is also closely correlated with the energy deficit, since tasks such as water collection, the grinding of cereals for food, searching for fuel wood for cooking (i.e., some of the tasks delegated to women) are still based on physical force using rudimentary tools. These activities impose further physical constraints and time losses that keep younger women out of educational circuits and condemn rural women to a cycle of chronic poverty.

2.5 Poverty, vulnerability, and lack of social protection

68. Vulnerability is defined in relation to specific risks and people’s exposure to those risks, as the probability of a person, poor or otherwise, suffering a significant loss of well-being as a consequence of a situation change (or shock). Vulnerability analysis therefore relates both to the nature of the forces acting on a person’s well-being and on people’s attitude toward protecting themselves from the risks and shocks to which they are exposed.

69. Poverty and vulnerability are closely correlated. Poverty increases vulnerability because there is no income to pay for essential services when coping with a shock, and it is impossible to draw on savings, borrowing, and social safety nets. Vulnerability, in turn, reinforces poverty. As shown by the results of surveys of perceived poverty, the exposure of households to a number of risks can lead to swings in poverty. Risks identified for households and individuals can be classed in two categories: collective risks and individual risks.

70. In the case of collective risks, it was found that most poor households have lost assets and seen the quality of their life deteriorate following natural shocks and catastrophes caused by breakdowns in the ecosystem and major accidents. The economy and households have been particularly affected over the last three years of PRSP implementation9 by the shortage of rainfall and its bad distribution. The most recent rainfall shock in 2002 caused a drop in production. As a result, 85 percent of rural households claimed to have suffered at least one bad harvest during the last 10 years.10

71. At the individual level, the occurrence of health shocks (illnesses, injuries, accidents, disability, handicapping diseases, epidemics) and those linked to the life cycle (birth, maternity, old age, family breakup, death, etc.) have adverse consequences on the quality of life, productivity, and ultimately economic growth in the absence of solidarity or insurance mechanisms. For all of these reasons, as households do not have sufficient resources or insurance mechanisms to fall back on when such shocks occur, they slip into or remain stuck in poverty.

72. The lack of social protection and effective and widespread hazard prevention and management systems, which would have made it possible to avoid swings in poverty when shocks supervene is one of the main factors that keep the poor in a vicious cycle of poverty and also create new poor, particularly among participants in the informal sector, which further restrains capital accumulation and investment. The existing formal social protection mechanisms, which cover risks for civil servants and other wage earners (established by Social Security (CSS, IPM, IPRES, FNR, private insurance companies, and complementary professional mutual associations) encompass less than 15 percent of the population and do not include health, retirement, or family allowances. A large majority of the population (informal sector, rural sector, casual laborers, and vulnerable social categories) are not covered by formal mechanisms, and most have frequent recourse to so-called traditional solidarity systems and/or alternatives such as (i) health insurance systems; (ii) insurance managed by microfinance institutions; (iii) insurance managed by cooperatives; and (iv) community healthcare mutual associations.

73. Apart from these risks which arise both at the collective and at the individual level, it is people’s capacity to withstand shocks, and avoid or attenuate their effects, that makes it possible to characterize vulnerability. If this capacity generally varies with the level of available human or social capital, there are several population groups that are particularly vulnerable because of deficits (law, physical and/or economic capacity) linked to age, discrimination on grounds of sex and physical handicaps, precarious lifestyles, or a combination of two or more of these effects.

2.6 Constraints on the effectiveness of pro-poor public policy

2.6.1. Good governance, decentralization, and participatory development

74. The promotion of transparency in the management of public affairs, creation of a favorable environment for private sector development, and respect for the rule of law, are key elements of the social capital needed to boost economic growth and reduce inequalities. The government is expected to respond to social demands while fighting corruption, modernizing public administration, strengthening democracy and decentralization, protecting and promoting human rights. From this standpoint, better governance of economic reforms should be promoted to make the plans and programs that are initiated more credible. To be equitable, institutions need to be responsible and transparent and operate with respect for the primacy of the law. These characteristics are essential for good governance and represent an ideal that the government will strive to attain.

75. During implementation of the first PRSP (2003-2005), the government introduced a number of reforms to improve the quality of public services, economic governance, judicial governance, local governance, and decentralization.

76. In an attempt to improve the quality of public services and promote good economic governance, measures taken by the government in the framework of civil service reforms and implementation of the CFAA-CPAR plan of action, made it possible to achieve the following: (i) a medium-term recruitment policy to satisfy staffing needs in the civil service, and key elements of a remuneration strategy that takes account of incentives for effectiveness and competitiveness in private sector employment for the key posts; (ii) implementation of an integrated public finance management system (SIGFIP); (iii) devolution of payment authorization; (iv) preparation of medium-term expenditure frameworks (MTEFs); (v) implementation of a unified budget classification; (vi) technical and financial audit of public sector results; (vii) preparation of procurement plans; and (a) the adoption of the clauses of the procurement code. Despite all of these government actions, the aim of attaining a performing civil service and good economic governance are still unachieved, mainly because of administrative complexity and slowness; ineffective human resource management; low motivation among economic agents; a low-quality and sometimes inaccessible civil service; delays in reviewing management accounts and payment laws and implementation of the devolution of payment authorization; and slow government contract award procedures.

77. In relation to governance of the judiciary, restrictions remain despite the efforts made by the government to raise the Justice Ministry’s budget from CFAF 2 billion in 1998 to CFAF 7 billion in 2001, and then CFAF 12 billion in 2005. Dysfunctional factors include slow judicial procedures, lack of infrastructure; rundown court facilities and central offices; obsolete working materials and insufficient qualified staff, who also have no documentation of their qualifications. Nonetheless, democracy, strengthening of the rule of law, improvement of the business environment, and security of property and persons can only be envisaged in a modern and transparent justice system.

78. With regard to the local development and decentralization, the decentralization process in Senegal has gone through several stages in which a number of competencies have been transferred, but the exercise is encountering numerous difficulties. Evaluations have highlighted the following: (i) serious shortage of resources available to local bodies to cope with the demands and competencies transferred to them; (ii) support organizations that do not function; (iii) poor understanding of the meaning of decentralization; and (iv) government delay in making Local Government Investment Funds (FECLs) and Decentralization Funds (FDDs) available to local governments.

2.6.2. Sociocultural environment and poverty

79. The sociocultural environment encompasses the belief and value system, which does not always encourage the adoption of innovations and changes conducive to a dynamic and prosperous society. This influences and conditions the behavior patterns of the various stakeholders in relation to poverty. Tensions between economic systems and dominant social values necessarily require sociocultural adjustments without, which economic performance, both individual and collective, is likely to remain relatively poor.

80. In Senegal, poverty-generating sociocultural mechanisms are active in both the rural and urban sectors. These include (i) extrovert consumption patterns that are inconsistent with household incomes; (ii) ostentatious behavior (e.g., extravagant family ceremonies) that undermines the possibility of saving and investing for the medium and long terms; and the numerous family and religious festivals that weigh upon the country’s productivity and growth; (iii) the rigid hierarchical structuring of traditional institutions that does not provide equal opportunities and restricts circles of solidarity and social dynamics; (iv) the persistence of gender disparities that exclude women from decision-making mechanisms and deprive them of means of production, with adverse effects on the school enrolment an attendance rates among young girls; (v) social tolerance of begging that affects both adults and children and generates handout-culture behavior; (vi) social cross-subsidization that discourages saving and inhibits the spirit of enterprise at the individual level; and (vii) the persistence of mentalities that are unfavorable for the preservation of public property and the spirit of good citizenship.

81. Although the fight against poverty requires rethinking cultural values and radically transforming certain fundamental reference points in the life of the society, it would be simplistic to imagine that the sociocultural substrate in its essence is a hindrance to development. The activation of sociocultural capital thus provides a genuine cushion at times of crisis and helps to increase growth just as physical capital does.

82. In Senegal this social capital has a very important role in social cohesion around a collection of cultural and religious norms and beliefs. It also is involved in the emergence of religious and village development associations that form a vast network of mutual assistance. It is worth stressing that the informal sector and emigration (whose contribution to growth needs no further demonstration) are firmly based on this social capital, anchored in strong values of solidarity and sharing.

83. What is needed now is an inventory of sociocultural values and behavior patterns, to weed out those that hold back social development and maintain poverty, while promoting those that boosting economic and social advancement.

3. STRATEGIC VISION AND TARGETS

84. The vision that underpins the objectives of the PRSP is founded on a philosophy grounded in secular values, shared by all Senegalese men and women, which (i) enshrine work as the primary form of freedom and the means of personal realization to overcome poverty; (ii) raise solidarity to the rank of a development paradigm; and (iii) consider peace and human security as prerequisites of all development. This vision also establishes a close link between growth and the obligation to show solidarity in pursuit of a single purpose of global human development. This solidarity axiom, which sees the strengthening of social, economic, and human capital as necessarily going hand-in-hand, is also the foundation of internationally shared alternatives of democracy and social justice as expressed in the MDGs and the New Partnership for Africa (NEPAD).

85. The vision that underpins the objectives of the PRSP is also based on an analysis of strong economic, social, and cultural trends, both domestic and external, and on various partnerships and commitments, particularly those undertaken in the framework of the MDGs, the strategic plan of the African Union (AU), NEPAD, ECOWAS, and West African Economic and Monetary Union (WAEMU) (see diagram in Annex 1). Over the next 10 years (by 2015) Senegal will evolve first in the context of a world economy characterized by a lowering of barriers to fair and balanced trade, and marked by significant North-to-South capital flows. There will also be more effective development assistance to achieve the MDGs, and a strengthening of international solidarity sustained by voluntary links of partnership and equity. Secondly, the context of a subregional and integrated African economy will be taken into consideration, with common policies in strategic development areas.

86. With the continuation of ongoing efforts and the authorities’ determination to make far-reaching changes in the country’s socioeconomic structures, by 2015 Senegal will be a country endowed with basic social and local service infrastructures guaranteeing urban and rural households their fundamental rights of access to drinking water and sanitation, quality education, energy services, quality health services, mobility, and commercial and security infrastructures. Nearly all Senegalese people will be educated citizens and have the capacities and skills needed to find decent jobs, manage their lives and the health of their family, and participate in the political, cultural and scientific life of the nation. In short, by 2015, the digital divide between Senegal and other developed countries will be greatly reduced, and access to ICTs will be broad and will form part of the culture of Senegalese men and women, particularly in the areas of access to knowledge and information, and to political, economic, social, and cultural life.

87. With the involvement of all stakeholders, by 2015 Senegalese men and women will be living in a society offering equal access to economic opportunities and public services for all citizens, with effective elimination of social exclusion factors and discrimination—particularly on gender grounds, and towards vulnerable groups such as the handicapped, AIDS sufferers, children, and women living in vulnerable situations, etc.

88. By 2015 the demographic change process initiated over recent years should result in a demographic growth rate that is consistent with the goals of faster economic growth and improvements in people’s living standards. Life expectancy at birth should increase as a result of progress in the areas of individual and public hygiene, nutrition, behavioral changes, and an expansion of the supply of (better quality) health services. The consequent investments in education, training, job creation, and reproductive health among young people should make it possible to improve the quality of human capital, thereby making Senegalese youth a key asset for relaunching economic growth and attaining development goals. Demographic trends show that most Senegalese men and women will be living in urban and periurban zones by 2015. Imbalances in the spatial distribution of population that exist between Dakar and secondary towns will need to be reduced in the light of rural exodus and urban growth patterns. Secondary towns will thus become genuine hubs of economic development, cultural centers with quality living conditions and services catering to most of the urban population and stimulating polarized rural economies. More suitable education, training, and employment, should also make it possible to upgrade human resources as a means to the socioeconomic advancement of young people, and thus discourage emigration and exodus driven by despair, by guaranteeing full participation by younger population groups in the development processes of their native lands.

89. Lastly, the culture of prevention of social hazards, major risks, and catastrophes will be firmly anchored in mentalities and practices, and expressed in individual and collective strategies and in the policies and programs of local organizations, government, and private enterprises.

90. Based on this vision and the objectives set out in NEPAD and the MDGs, Senegal has defined a development strategy for growth and poverty reduction that aims to sustainably improve population well-being, by (i) reducing the incidence of poverty among population groups to below 30 percent by 2015,11 through rapid, strong, balanced, and better distributed growth averaging at least 7 percent in real terms during the period; (ii) speeding up access to basic social services and improving the population’s food security; (iii) protecting population groups, particularly those most vulnerable to social hazards and disasters; (iv) reducing inequalities and eradicating all forms of exclusion nationally, particularly by establishing gender inequality in all areas; and (v) promoting good governance and the rule of law.

91. In the short term, and provided there are no major exogenous shocks, this requires average growth of 7-8 percent in real terms12 and significant progress in the social sectors with a view to achieving the MDGs in 2015, particularly: (i) a 100 percent enrolment rate in primary school; (ii) a 78 percent rate of access to sanitation among urban dwellers; (iii) a specific consumption rate of drinking water of at least 35 liters per person per day13 with a 100 percent access rate; (iv) a drop in maternal mortality by increasing the proportion of births attended by trained personnel to 75 percent; (v) reduction in the under-five mortality rate of 56 percent; and (vi) maintenance of HIV/AIDS prevalence below 3 percent; [vii] significant improvement in the coverage of social protection; [viii] better access to energy services, with the target of 66 percent of households having access to electricity, of which are least 30 percent in the rural sector. These goals, which take account of the urban and rural poverty profile revealed by the poverty diagnosis and studies made during the participatory process, will be achieved through concerted efforts by all actors in the country’s economic and social life.

4. POVERTY REDUCTION STRATEGIES

92. Analysis of the causes, determinants, manifestations, and experience of poverty in Senegal shows that a prerequisite for the robust growth needed to reduce poverty on a sustainable basis is a sound macroeconomic framework, backed by healthy and transparent management of public funds and good economic and judicial governance. Nonetheless, such growth will not be sufficient to achieve the objectives, unless accompanied by reductions in income inequality and discrimination in access to social services in the rural and urban sectors, in addition to human capital strengthening, deeper decentralization, and public participation in the formulation and implementation of policies and strategies. The events of recent years have also shown that achievements in terms of growth and human capital strengthening are often undermined by shocks of various types (disasters, accidents) and a lack of protection against social risks. To address these challenges in a harmonious and consistent manner, Senegal has defined a strategy based on four fundamental levers. (i) wealth creation; (ii) faster promotion of access to basic social services; (iii) social protection, and risk and disaster management and prevention; and (iv) decentralized and participatory governance and development.

93. With regard to wealth creation, a number of statistical studies show a close correlation between national income per capita and monetary or non-monetary poverty indicators. In Senegal, analysis of the determinants of poverty clearly shows the importance of the “insufficient income” factor, fully justifying the belief that promotion of wealth creation in a healthy and stable macroeconomic framework remains the primary pillar for promoting the creation and consolidation of productive employment. Analysis of indicators of the macroeconomic framework and growth constraints show that Senegal needs to address the following challenges: How can exports be increased on a sustainable basis, relying on high value-added sectors where Senegal has comparative advantages on the world market? How can domestic production respond to domestic demand for goods and services, particularly with a view to guaranteeing food security? To address the challenges, Senegal will simultaneously implement a strategy for rapid growth and support for import-substituting productive sectors, particularly in agriculture, to guarantee food security.

94. Senegal has identified faster promotion of access to basic social services as the second pillar of that strategy, particularly to raise the stock of human capital, as the basis of sustainable growth, respond to social demands, and promote achievement of the MDGs.

95. Both rural and urban households are exposed to a variety of shocks (drought, flooding, accidents, diseases, fluctuating prices of basic commodities...) which prevent them from accumulating the human capital that would help them escape from poverty. This is why Senegal is placing emphasis on need to make social protection, particularly for vulnerable groups, one of the pillars of its strategy to ensure sustainable poverty reduction.

96. Lastly, one of the key issues in poverty reduction is the need to encompass all of the targeted Senegalese population, responding to their specific needs and ensuring alacrity and transparency in the formulation, piloting, execution, monitoring, and evaluation of public policies and development programs. For this purpose, Senegal has included good governance and decentralization among its poverty reduction priorities, confirming the consensus expressed by socioeconomic stakeholders on the important role of social capital in long-term growth.

97. Based on these four pillars, the poverty reduction strategy entails: (i) promoting opportunities for wealth creation in Senegal; (ii) organizing equal opportunities in materializing those opportunities, particularly through capacity building among poor population groups; (iii) ensuring protection for vulnerable groups; and (iv) responding to social demands and encouraging popular participation in running grassroots communities, through a genuine policy of decentralization and local development. To support the policies and strategies to be implemented on the basis of these pillars, better control of demographic trends will be sought, pursuant to the population policy declaration that was updated and adopted in March 2002. In addition, the culture of peace, tolerance, and solidarity should be a cardinal value of Senegalese society to prevent exclusion and marginalization of minorities in each local community.

98. Achieving these objectives will require major efforts to strengthen human capital and support infrastructure, specially in: (i) the transport sector to improve urban mobility and move rural areas out of isolation; (ii) energy, to improve lifestyles and strength the competitiveness of the productive sector; (iii) land planning for the development of secondary towns; and (iv) promotion of gender equity in all domains to improve the impact of interventions and ensure equity. Taking account of the different roles of men and women, disparities between the sexes in control of and access to resources, and the differences that result from these factors in terms of constraints, needs, and priorities, will provide the guiding principles for all components of the strategies adopted.

99. Those involved in the participatory process identified the key objectives and corresponding actions for the four strategic pillars, which should have a significant impact on poverty. These have been set out in a matrix of measures (Annex 2). The priority objectives/strategies and the corresponding actions (extracted from the matrix of measures) have been listed below in an ordered priority action plan covering the period 2006-2010 (Annex 3).

4.1 PILLAR 1: Wealth creation for pro-poor growth

100. Based on data from the two Senegalese household surveys (ESAM I and II), the Center for Applied Economic Research (CREA) at the Cheikh Anta Diop University of Dakar found that the elasticity of poverty incidence with respect to the rate of growth of real per capita income, holding income inequality constant, was -1.38. Robust and better distributed growth is therefore a fundamental pre-requisite for significant poverty reduction (see Box 2).

Senegal: Elasticities of Decomposable Poverty Indices with respect to average income per adult equivalent, the Gini index, and marginal replacement rates

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Source : CREA, 2006

The elasticity of poverty incidence for 2002 is -1.38. This means that a one-percentage-point change in the rate of growth of per capita income reduces poverty by 1.38 points. This elasticity clearly improved between 1995 and 2002, moving from -0.89 to -1.38, largely as the result of the reduction in household inequality. The Gini index has fallen at the urban, rural, and national levels; between 1995 and 2002, it decreased from 0.476 to 0.417 in Dakar, from 0.33 to 0.29 rural areas, and from 0.48 to 0.44 nationally (notwithstanding an increase in individual inequality, see Table 1, page 9).

The results obtained confirm the sensitivity of poverty reduction both to growth and to changes in its distribution. In 2002, a 1 percent reduction in the Gini index would lead to roughly a 0.9 percentage point drop in poverty.

Accordingly, a mixed policy of per capita income growth and reduction of inequality of 1 percent would allow for poverty incidence to be reduced by 2.3 percent. Overall this means that sustained and better distributed growth will be a fundamental element in achieving the poverty reduction target.

The effect of growth on the depth and severity of poverty is more significant, with elasticities of -1.7 and -2.2, respectively.

101. The wealth creation strategy relies on strong economic growth, sufficient to have a substantial quantitative impact on the prevalence of poverty both nationally and regionally. The following aims will thus be pursued: (i) sustained growth in sectors that have a significant and lasting impact on improving incomes in the rural and urban sectors; and (ii) job-creating growth, driven by investment and exports. This strategy assumes a growth scenario that increases the incomes of the poor, i.e., growth that favors the sectors and regions where poor people live, and use of the factors of production that they possess. Until now, the majority of the poor have been located in the rural sector, largely dependent directly on agriculture and the factors of production they possess and use most: land, labor, and very occasionally capital. Pro-poor growth should place emphasis on rural areas and raising agricultural productivity and incomes, and be highly labor-intensive.

102. With a view to making growth more inclusive, the government has identified priority activities or areas in the following sectors: (i) primary sector (crop farming, livestock breeding, fishing, forestry) in an intersectoral dynamic, with all other sectors able to contribute to its development, such as industry, hydraulics, transport, handicrafts; (ii) microfinance and female entrepreneurship; (iii) SME/SMI and agribusiness; (iv) any opportunities for the development of job-creating private enterprise in other economic sectors (mines, energy, construction and public works, ICTs) which could be undertaken in either urban or rural areas.

103. Because of interactions between sectors and the spatial distribution of both the labor force and poverty, Senegal needs to focus its strategy for growth and the reduction of poverty and inequality by promoting greater agricultural productivity, particularly through products for which domestic and international demand is increasing. All steps will be taken (fiscal measures, institutional, physical infrastructure, supervision and training, systems of information on domestic and international markets) to promote the development of agricultural product processing and conservation units. At the same time, emphasis will also be placed on other growth sectors and on long-term growth factors such as human capital and basic infrastructure.

104. Provided total factor productivity improves, capital accumulation will make a substantial contribution to growth. A key objective of the poverty reduction strategy will thus be to establish a favorable climate for private investment. In addition to the sound macroeconomic policies that will be implemented, reforms will need to be extended to a broad range of sectors, including the completion and consolidation of gains from privatizations, asset markets, foreign trade, financial and labor markets, the regulatory environment, and the judicial system, to increase the level of investments. These in turn will help improve the development of wealth-creating sectors and will be accompanied by public investments to raise the level of social and economic infrastructure.

105. In brief, the wealth creation pillar will be based on a macroeconomic framework for 2006-2010, focused on implementing the accelerated growth strategy (AGS), and different sectoral and multisectoral policies aimed at poverty reduction on the one hand, and a set of supporting measures on the other.

4.1.1. Macroeconomic framework 14

Baseline situation

106. Following growth of 5.5 percent in 2005, initial economic trends in 2006 reflect the persistence of the rise in oil prices and the difficulties facing Industries Chimiques du Senegal (ICS) and point to GDP growth of 4.0 percent for the current year. This result is explained by the activity slowdown in the industrial sector which slipped from an expansion of over 8 percent to a reduction of 0.9 percent. Recovery in the primary sector (6.8 percent) and buoyant growth in the tertiary sector (5.1 percent) should make it possible to alleviate the impact of the difficulties facing the secondary sector.

107. Growth in the primary sector for 2006 is projected at 6.8 percent, compared to 9.4 percent in 2005, with a slackening pace of activity in all subsectors. The crop farming subsector is expected to grow by 10.4 percent, compared to 13.1 percent in 2005, based mainly on an improvement in horticulture production and crop programs. Cereal and groundnut production is forecast to expand by an average of 5 percent. In the fishing subsector, initial trends show a slight drop in production, reflecting the depletion of fish stocks compounded by an increase in the price of inputs.

108. In the secondary sector, the continued rise in oil prices, and difficulties faced by ICS had a major impact on the trend of industrial activity generally. Growth in 2006 is expected to be -0.9 percent, following a 3.8 percent increase in 2005. Apart from the direct effects of the rise in oil prices on the oil refining subsectors (-4.3 percent), knock-on effects were seen across other industries, where activity is expected to shrink by 10.8 percent, compared to 1.0 percent growth in 2005. These difficulties were compounded by the poor performance of the chemical industries, resulting in a halt in the production of fertilizer and phosphoric acid. Extractive industries continue to trend downward (-14 percent) following the drop in phosphate production. Despite the rise in groundnut production, vegetable oil producing activity is expected to decline by 10.8 percent, given the results posted for the first quarter of 2006 and the relatively small amounts collected. Construction projects are driving growth in the secondary sector, with expansion forecast at 15.0 percent, reflecting the dynamism of public works. Lastly, in the energy sector, growth is expected to settle at 2.7 percent in 2006, despite the fuel supply problems being faced by the electricity company.

109. In the tertiary sector, 5.1 percent growth is basically driven by the transport and telecommunications subsector which is showing a 9.0 percent expansion. The slight drop in the pace of commercial activities (2.5 percent in 2006) reflects smaller margins on secondary sector products. Nonetheless, the trend of other margins remained positive at 3.8 percent for primary sector products and 5.9 percent in the case of imports.

110. With regard to the uses of GDP, growth will be led by public investment, which is expected to expand by over 12.8 percent to 20 percent of GDP in 2006. Nominal domestic demand is set to grow by 6.7 percent in 2006, compared to 8.4 percent in 2005; export volumes should grow by 4.2 percent, while import volumes are expected to expand by 3.9 percent. This situation would partly reflect the drop in the volume of imports of petroleum products.

111. The general level of prices, measured by the GDP deflator, is projected to rise by 3 percent from its 2005 level, basically as a result of the surge in the price of oil per barrel. The Harmonized Consumer Price Index came in at 2.6 percent at end-April 2006.

112. On the balance of payments front, forecasts for the rest of the year are for an overall surplus of CFAF 76.9 billion compared to a deficit of CFAF 5.3 billion in 2005. This is basically due to an improvement in the capital and financial account surplus, which will grow from CFAF 377.6 billion in 2005 to CFAF 471.8 billion in 2006, despite a 5.5 percent deterioration in the current account, caused by a widening of the trade deficit.

113. In public finance, fiscal revenues for 2006 (excluding grants) are forecast at CFAF 922.7 billion, up from CFAF 850.8 billion, i.e., an increase of CFAF 80 billion, largely thanks to a recovery of tax revenues. On the expenditure side, total expenses are projected at CFAF 1,300.3 billion in 2006, with an increase in capital expenditure funded domestically, reflecting the government’s investment effort. Nonetheless, the ratio of the wage bill to tax revenues is less than 30 percent. Overall, the basic budget balance is expected to be in deficit by CFAF 239.2 billion, i.e., 4.9 percent of GDP. Excluding funds related to HIPC and CTRS, the deficit should stabilize at 0.7 percent of GDP.

Prospects for 2006-2010

114. The growth target for 2006-2010 should be set at 7-8 percent per year. Macroeconomic projections establishing the overall consistency of the adopted strategy suggest an average annual growth rate of GDP per capita of about 5 percent. These projections are based on a set of hypotheses which envisage (i) an increase in public and private investment (with additional public development assistance, foreign direct investment flows, and additional resources expected from debt cancellation); (ii) better targeting and improved quality of investments; and (iii) strengthening of the contribution to growth made by the agriculture sector, based particularly on diversification of products and modernization of family farms.

115. Assuming good mobilization and full absorption of expected resources, real GDP growth as an annual average for 2006-2010 (7-8 percent) reflects the relatively high level of investments programmed in the PRSP and is compatible with the aim of cutting poverty by half by 2015. Given potential constraints related to the government’s capacity to mobilize resources or the economy’s capacity to absorb them, three scenarios are developed:

A trend scenario which assumes that additional capital resources envisaged in the PRSP will not be mobilized or absorbed. As a result growth will remain at an average of 5 percent per year for 2006-2010.

An average scenario which assumes that only 50 percent additional capital resources envisaged in the PRSP will be absorbed (because of difficulties in resource mobilization or absorption), and the expected growth rate will average 6 percent a year during the period.

An optimistic scenario that assumes all additional resources expected from the implementation of the poverty reduction strategy will be fully absorbed, and the growth targets set in the PRSP will be achieved, averaging 7-8 percent per year during the period. The growth needed in the various sectors of the economy to make these results possible during the period in question is described below.

116. The primary sector should grow by close to 11 percent on average. This will basically reflect a 13 percent expansion in the crop-growing subsector following the implementation of farming programs aimed at the development of sustainable agriculture, food security, improvement of rural incomes, and environmental protection. The livestock and hunting subsector should attain a growth rate of 6.3 percent for the period compared to an average of 2.8 percent between 2003 and 2005. In the fishing subsector, the rise in landings in the wake of improved management of maritime resources and aquaculture development should allow for much bigger catches starting in 2008, and raise the pace of sector growth to 10.6 percent on average for 2006-2010 compared to 1.9 percent in 2004—2006.

117. In the secondary sector, the government’s aim is to develop industry by improving enterprise productivity and competitiveness and reducing the costs of factors of production. Sector growth is forecast to average 9.75 percent in 2006-2010, thanks to persistent momentum in construction and public works (14.0 percent) and the continuation of large-scale public infrastructure works initiated since 2004. The energy subsector, which is an important link in achieving growth targets, is expected to grow by an average of 8.2 percent as from 2007 after suffering the effects of oil price hikes between 2005 in 2006. Public investments will also be partially redirected towards this sector with a view to overcoming enterprise productivity constraints, mitigating the effects of oil price hikes on production costs, and improving available energy production to respond to growing user demand.

118. Growth in the tertiary sector should average close to 7 percent in 2006-2010, mainly driven by transport and telecommunications which are expected to expand by an average of 5.3 percent and 13.6 percent per year, respectively.

119. In terms of the uses of GDP, final consumption is set to expand slightly to 87.6 percent in 2006-2010, growing more slowly in real terms than GDP (5.2 percent) while intermediate consumption is set to expand faster (11.4 percent). Investment will remain buoyant with the continuation of public infrastructure work and vigorous activity in family housing construction. Average growth for the period could thus reach a level of 12.6 percent. Investment growth will still be driven by the public sector (16.5 percent during the period), but private investment is expected to recovery as from 2007 (expansion of 8.7 percent and rising to take over from public investments, averaging over 13.5 percent as from 2008). In the case of net external demand, exports of goods and services are expected to increase by an average of 6.6 percent, while merchandise imports will expand by 7.5 percent, both in real terms. The general price level measured by the GDP deflator is projected to rise by an average of 2.2 percent for the period, following inflationary pressures stemming from the oil price hikes over the last few years. Nonetheless, implementation of good monetary and budgetary policy should make it possible to keep inflation below the community threshold of 3 percent.

120. The balance of payments current account deficit, excluding official transfers, will narrow from of 8.1 percent of GDP in 2006 to nearly 4.1 percent in 2010, thanks to an improvement in the trade balance, particularly following implementation of the AGS. Taking account of improvements on the capital and financial account, the overall balance should rise from a surplus of CFAF 76.9 billion in 2006 to CFAF 117.2 billion in 2010, i.e., an average surplus of 1.6 percent of GDP over the period.

121. In the area of public finances, total income will rise from CFAF 1,069.2 billion to CFAF 1,502.1 billion between 2006 and 2010, i.e., annual growth of around CFAF 100 billion, reflecting collection efforts on the part of the revenue offices and a broader tax base. On the expenditure side, total expenses will rise from CFAF 1,300.3 million in 2006 to CFAF 1,793.9 billion in 2010. The overall basic budget deficit is expected to improve steadily over the period 2006-2010, narrowing from 4.8 to 4.1 percent of GDP. Excluding HIPC funds, this deficit is forecast to decline from 0.6 to 0.3 percent of GDP in 2010.

Strategy risks

122. The strategy is vulnerable to risks arising from the following sources: (i) exogenous shocks that might jeopardize the macroeconomic objectives and the ability to absorb priority action plan resources associated with current budgetary procedures; and (ii) effective control of the use of resources. The optimistic scenario is the one favorable to a substantial reduction of poverty. The expected outcomes assume that the various specified shocks that might recur are handled in such a way as to prevent possible disruptions in the accomplishment of these results. The shocks at issue are both natural and economic.

123. The principal natural risk is the amount of rainfall, the primary factor determining farming output. Inadequate rainfall could make a significant impact on the progress of the agricultural sector, depressing its growth rate below 5 percent, compared to the range of 12 to 14 percent forecast for the period 2006-2010. If all the other sectors remain unchanged, the underperformance in agriculture would result in economic growth ranging from 5 percent to less than 5 percent, a level not sufficient for achieving the macroeconomic and social objectives by 2015. If irrigation farming in rural areas is sustained, and if farming insurance mechanisms are implemented, the negative effects might be lessened.

124. In addition to the risk of insufficient rainfall, the agricultural sector is also exposed to attacks by locusts. This represents a significant threat to the economy, but with the qualification that public intervention could lessen its impact.

125. From the point of view of the economy, the greatest risk comes from price fluctuations on the general international market and the price of crude oil in particular. The sector with the greatest exposure is the energy sector, which experienced significant disruptions in the course of 2006; these have been very unfavorable to the economy in light of its integrated character. The risk of seeing disruptions persist in this sector would result in sectoral growth rates below 3 percent, compared to the 8.4 percent growth rate expected for the period 2006-2010. Given the importance of the energy sector in the national product, low growth levels in the sector would doubtless have a negative impact on growth and poverty reduction objectives. If the unfavorable situation as currently recorded were to persist, with oil prices peaking higher than USD 100, the changes of achieving average growth rates of 7 percent over the period will be utterly eliminated. Absent measures to soften the impact, and international solidarity measures favoring non-oil producing countries, Senegal can reasonably expect to achieve a growth rate on the order of 4 to 5 percent, i.e., a level wholly insufficient for achieving the MDGs.

126. Risks may also arise from developments among large companies in Senegal’s processing industry. In addition to energy, large companies in the chemicals and oilseed plant subsector are also exposed. The upheavals in 2006 could affect growth given the important role played in the economy by these subsector companies, in particular with respect to the service and manufacturing sectors. The cumulative effects of idled production units would amount to around 1 percentage point of economic growth.

127. Political and institutional risks could take a number of forms, impacting directly the implementation of investments scheduled for the PRSP implementation period (2006-2010). Improper execution of these capital investments could have a significant effect on growth, and even jeopardize the achievement of the objectives scheduled to be met by 2015.

128. Failure to mobilize the full complement of expected foreign resources is an additional significant risk already taken into account in the scenarios. Success of the strategy is based on the assumption that all the expected resources will be mobilized. The means for minimizing all these risks requires sustained commitment and collaboration on the part of the various actors involved.

4.1.2. Accelerated growth strategy

129. With a view to achieving the growth rates needed to achieve the objectives of reducing poverty by half by 2015 (MDG1), the government launched the process of drawing up an accelerated growth strategy (AGS) to establish the grounds on which new productivity gains can be made and thereby attain a growth rate of 7-8 percent.

130. This strategy is to be based on the “cluster approach,”15 that aims to ensure strong growth in targeted sectors that would have a ripple effect on the whole of the economy, and to strengthen synergies between the sectors. The approach is to accelerate economic growth by making qualitative improvements in the composition of that growth to more effectively combat poverty, and by diversifying sources for more sustainable and assured growth.

131. To reach these objectives, the AGS favors two complementary approaches: (i) an overall program to promote domestic and foreign direct investment through continuous improvement in the business climate, bringing the latter up to international standards; (ii) a targeted program to promote cluster groups having high growth potential and a proven growth generating effect on the other economic sectors. Implementation of the measures contained in the AGS should result in: (i) increasing the contribution of exports to economic growth (currently modest); (ii) lowering the external current account deficit (excluding grants) over the long term below the threshold of 5 percent called for within the framework of multilateral monitoring within WAEMU.16

4.1.3. Sectoral policies

4.1.3.1. Agriculture, forestry and livestock, and food security Agriculture subsector

132. Agriculture remains one of the most important sectors of economic activity. Nearly 60 percent of the working population of Senegal is involved in farming, which remains the principal engine of development of the craft and industrial sectors. However, agriculture’s contribution to GDP remains minimal and varies from year to year. For the last four years, this contribution has amounted to less than 10 percent. Despite the increase in resources devoted to agriculture (capital investment rose from 9 percent in 2003 to 15 percent in 2005, while the operating budget increased from about 1 percent in 2003 to 4 percent in 2005), performance remains erratic. In 2004-2005, production fell off by 31 percent, or 367,363 tons in absolute terms. This drop was mainly due to locust infestation, which impacted yields negatively (millet down 23 percent, sorghum down 14 percent). Senegal’s coefficient of food dependency on grains remains very high (more than 50 percent). Grain production, which constitutes one of the major components of food production, has declined steadily (by about 1.1 percent annually between 1990-1991 and 2002-2003), worsening the grain shortfall.

133. The decline in rain-fed crop productivity, together with the limited use of irrigation, are the result of inadequate investment in irrigation and delays in implementing structural reforms—particularly in the groundnut segment—and land reform, and the vulnerability of the sector to the vagaries of nature.

134. The agricultural sector continues to face enormous recurrent problems, of which the most significant are: (i) the decline in the real income of small farmers, which has led to very significantly reduced use of agricultural inputs; (ii) overuse and deterioration of land; (iii) often inappropriate transfer of technologies and know how out of proportion with the level of resources drawn from farming; (iv) lack of access to the system of rural credit; (v) unavailability of good-quality seeds in sufficient quantity (especially apparent in the groundnut segment); (vi) obsolescent farming equipment; (vii) urban drift, with its corollary—the aging of farm operators, notably in the groundnut basin; (viii) inadequate freight capacity for horticultural products; and (ix) insufficiency and poor quality of growers’ roads, and lack of infrastructures for storage and processing.

135. When combined with other factors (poor organization of marketing networks, etc.), these weaknesses in Senegal’s agriculture are the source of the financial disequilibrium and lack of competitiveness in the agricultural crop lines, especially those destined for export; these factors also go far in explaining the very high prevalence of poverty in rural areas. that the conditions be established for accelerated growth in the agricultural sector. Such growth should have a dual impact on reducing poverty.

136. The initial impact, of a structural nature, is linked to the very significant contribution of agriculture to economic performance in general, especially the contribution of resources resulting from exports of agricultural products, and the foreign currency savings resulting from reduced imports and improved food security. The second positive impact of accelerated agricultural growth is more direct, and consists of immediate improvement in farm incomes. Given the nature and structure of poverty in Senegal, the improvement in farm incomes should contribute greatly to its reduction.

137. With this perspective in mind, in 2004 the government developed a Law on Guidelines for Agriculture, Forestry and Livestock (LOASP),17 embodying its decision to make agriculture an engine of economic growth. The sectoral approaches detailed in the law bear on the creation of an attractive rural environment providing incentives to (i) transform family farming by effecting a transition from extensive production systems to intensive, diversified, sustainable systems that are respectful of natural resources; (ii) promote the emergence of agricultural and rural entrepreneurship. To those ends, the development of agriculture, forestry and livestock will include a strategy of diversification of farm products, increased productivity and competitiveness of farms on a sustainable basis, with a complementary strategy of developing a non-agricultural economy in rural areas.

138. To achieve these objectives, investments will be made and measures implemented to undertake water control projects, the basis of secure, intensified and modernized agriculture, designed to boost the ratio of irrigated acreage to total crop acreage from 4 percent in 2005 to 10 percent before 2010 and 20 percent by 2015. To accomplish this, the state will undertake at least 15,000 hectares on average of irrigation projects yearly in various parts of the country. Improved performance in the area of product quality (processing, preserving, marketing conditions) will take the form of increased volumes of fruit and vegetable exports, from 13,000 tons in 2005 to 30,000 tons in 2010,18 with a target for annual growth of 3,000 to 4,000 tons.

139. More specifically, the strategies implemented will increase agricultural gross domestic product by removing obstacles that the small farmers encounter, and also by enhancing the economic security of the poorest agricultural works, namely small farmers. To this end, priority measures and actions will be implemented respecting the following five areas:

  • Improved food security. Development and implementation of a national program in support of food security, together with promotion of intensified farming on family farms.

  • Sustainable management of land and land improvement:

    • Reduced vulnerability of agricultural activities. To deal with the uncertainties of rainfall and erosion, an aggressive water management policy is envisaged, using irrigation methods adapted to local needs.

    • Land development and productive investment. The objective here is to contain the many kinds of pressure on available land that intensifies competition for this natural resource and generates conflict over land; secondly, to promote broad access to land by vulnerable populations groups, especially women and young persons engaged in family farming.

  • Management of product quality and integration of crop types into markets:

    • Promote a sound policy of processing, marketing and distribution, including development of agro-industry by creating standard-setting, storage, preservation and processing methods and modalities; by building women’s capacity to process and market horticultural and truck farming products, while promoting local production and consumption; by creating a guarantee fund; by promoting rural micro enterprises and small businesses; by building the capacity of public and private organizations supporting microenterprises.

    • Intensify and modernize agricultural production. The goal will be to develop irrigation farming so as to reduce the quasi-dependency of the agricultural sector on erratic rainfall and promote agro-industry. As for the management of crop types, e.g., groundnuts, the principle to be applied henceforth is economic profitability. In addition, action will be undertaken to promote sustainable organic farming, including the production of biofuels.

    • Intensify and modernize family farming by promoting food crops (millet, rice, maize), the production and consumption of local products, the development of basic social services (health, education, sanitation, hygiene), the involvement of small farmers in product distribution, the implementation of the results of research, and increasing access by the small farmers to fertilizer and good quality seeds.

    • Increasing and diversifying farm incomes requires promotion of non-traditional farm product exports, extension of the decentralized financing system as a complement to the Caisse Nationale de Credit Agricole du Senegal (CNCAS) and promotion of a model of local consumption to influence consumers to buy locally produced goods—thereby stimulating local production—and finally, promoting public awareness and motivating expatriates to invest in the productive agricultural sector.

  • Promoting an environment favorable to the development of agricultural product lines

    • Tax measures to lower the prices of farm inputs and equipment, combined with tax exemptions for farm inputs and equipment;

    • Strengthening the role of farmers’ organizations so as to make them more independent and enable them to better represent the interests of their constituents.

    • Strengthening agriculture consulting services by establishing a program to inform the general public, with specific measures targeting women.

Livestock subsector

140. Performance of this subsector has yet to come up to expectations, despite its potential and the important socioeconomic role it plays. On the whole, livestock continues to be raised using traditional methods.

141. The numerous obstacles that livestock raising must confront include: (i) animal feed insecurity resulting from the extensive method of cattle raising based on natural pastures subject to the vagaries of rainfall, brush fires, and encroachment of farming; (ii) the threat of emerging and reemerging cross-border diseases; (iii) under-equipped producers lacking technical sophistication; (iv) rudimentary guidance and training of livestock producers; (v) the existence of numerous intermediaries in the animal marketing system, resulting in higher prices for meat; (vi) lack of reliable statistics on livestock raising; (vii) absence of an adequate industrial fabric for processing animal products; (viii) absence of land security for stock raising activities; and (ix) inadequate energy available for preserving and processing stock raising products.

142. This state of affairs has given rise to the following: (i) cattle productivity is low; (ii) cattle raisers have low incomes, with little diversification of income sources; (iii) the cost of milk is excessive, estimated at CFAF 35 billion annually; (iv) meat and milk are produced in inadequate amounts and erratically, resulting in per capita meat consumption of only 11 kg and milk consumption of 33 liters; (v) access to international markets is minimal; and (vi) ecosystems in which livestock are raised and in which mixed agriculture and livestock raising are practiced have deteriorated.

143. With a view to breaking with previous practices and creating the conditions for strong and sustained growth leading to an increased contribution of this subsector to the overall objective of fighting poverty, the state has set some strategic objectives, with priority given to: (i) restoring a healthy production environment; (ii) putting livestock raising in pastures and agropasture on a secure footing; (iii) boosting the subsector’s productivity so as to guarantee food security; (iv) improving conditions for marketing animal products, while remaining vigilant regarding fair prices and the terms of trade between cities and the countryside; and (iv) strengthening the subsector’s information and management systems.

144. Short- and medium-term strategies have been identified in order to ensure greater flexibility in activities up and own the cattle-meat production line, renovation of the milk production business, multiplication of short-cycle species (small ruminants and local fowl), sustainable security of the animal feed supply, processing and transformation of animal derivatives (hides, horn, etc.). In addition to establishment of adequate infrastructures (regional slaughterhouses, etc.), and control of illnesses affecting small ruminants, which plays an important role in wealth creation, other measures will be implemented regarding financing, access to credit, organization, health policy and security.

Promotion of non-agricultural employment in rural areas

145. Development of non-agricultural employment in rural areas is an important strategic approach in poverty reduction efforts. Contributing to diversification of non-agricultural incomes are specific programs for processing farm products and facilitating their distribution on domestic and foreign markets. To that end, strengthening the product lines and the links in those businesses exclusively intended for women, as well as the development of agro-forestry and rural tourism can also serve as a promotional framework for rural micro-enterprises or small enterprises. Generally speaking, promoting micro- and small enterprises in rural settings requires establishment of a competitive environment, with access to financial and non-financial services (technical assistance, training in management, information and marketing, support of craft businesses) and strengthening the capacities of public and private organizations supporting micro-enterprises.

146. In addition, the expatriate population has been identified as a strategic partner in revitalizing economic activity in some rural areas by means of direct investment, consultation and identification of niche markets for local products.

4.1.3.2. Renovation of fishing and development of aquaculture

147. In Senegal, the fishing sector includes two branches: deep sea fishing and inland fisheries.

148. Deep sea fishing19 contributes 12 percent to Senegal’s primary sector GDP, 2.5 percent to total GDP, and provides income-producing activities to more than 17 percent of the working population. Unfortunately, the recent decade has seen overfishing of the principal marine species due to overly intense fishing efforts and excess catch and processing capacity. To these practices must be added substantial deterioration of marine habitats resulting from poor fishing practices, and from pollution.

149. Over the last five years, landings have fluctuated widely in volume, impacting sector performance. Over all, the major constraints acting on the fishing sector are (i) insufficient knowledge regarding the state of resources; (ii) increasing conflicts between artisanal fishermen and between practitioners of artisanal fishing and industrial fishing, due in part to the narrow fishing zones under exploitation; (iii) insufficiency of off-loading docks and processing facilities; (iv) obsolete techniques for catching and preserving fish on board small craft, added to the great distances to be traversed in search of fishing zones, constitute the basic causes of the decline in quality of species fished; and (v) the lack of training and organization of practitioners in the various segments of the fishing business.

150. Unlike deep sea fishing, inland fisheries have not benefited from comprehensive policies and development strategies, which explains the sparse facilities and capacities of practitioners in this subsector. Inland lakes and streams also suffer from seriously deteriorated fish habitats and a marked decline in productivity.

151. Despite its great potential, aquaculture has been stagnant in Senegal over the last two decades as the result of serious constraints that limit its development. The chief constraints are (i) lack of knowledge regarding the availability of water and the aquacultural potential of targeted fish species; (ii) low yields from existing aquaculture facilities; (iii) exorbitant cost of establishing aquaculture facilities and land use constraints limiting the availability of sites; (iv) the high cost of aquaculture feed; (v) the lack of training and know how regarding aquacultural techniques; (vii) the absence of an environment providing incentives for private investment; and (viii) problems of coordination among participants in the subsector’s operations.

152. With an eye to reversing the negative tendencies weighing down fishing and aquaculture, the following objectives have been decided on: (i) ensure sustainable management and restoration of fishing resources; (ii) satisfy the domestic demand for fish products; (iii) enhance fishing resources and modernize artisanal fishing; (iv) promote professional practices and enhanced qualifications of participants in the fishing and fish processing sector; (v) improve the system of financing of fishing and aquaculture activities; and (vi) strengthen regional and subregional cooperation.

153. To reach these objectives, an overall strategy has been drawn up in collaboration with all stakeholders and is centered on: (i) rational and responsible use of fishing resources; (ii) sustainable development of aquaculture for food and cash aquaculture (deep sea and inland waterways) in areas with high potential for aquaculture, while respecting the ecosystem and aquatic biodiversity; (iii) improved protection and an institutional environment (legal, financial, etc.) better adapted to the sector’s development requirements, and more balanced international cooperation; (v) building the capacity of the sector’s public and private participants; and (vi) better distribution of fish products throughout the country.

4.1.3.3. Promoting artisanal activities

154. Artisanal activities play a fundamental role in the development process and constitute a significant source of income for poor populations living in cities and in rural settings. The crafts include activities that contribute to improved quality of life and support production (repairs, maintenance, manufacture of hardware and equipment, processing and enhancing the value of local resources, providing services, etc.).

155. The crafts sector encounters difficulties impeding its full development, however. Among these difficulties are: (i) poor supervision and basic infrastructure; (ii) absence of resources for operations and self-financing, as well as availability of sites well suited to artisanal work; (iii) often difficult access to markets for artisanal workers, especially with regard to bidding on public contracts; (iv) limited access to credit, due mainly to the lack of confidence on the part of banks and the absence of financing methods adapted to the sector’s needs; and (v) irregular access to quality inputs (raw materials, power, etc.).

156. The priority objectives for this sector, whose achievement would contribute significantly to increased incomes for sector participants and indirectly to the reduction of poverty as a whole, are intended essentially to: (i) modernize the production and commercialization networks; (ii) improve the sector’s financing system; (iii) improve the training, apprenticeship and skills development systems; (iv) adapt the legal and regulatory institutional framework to the sector; (v) strengthen the organization of artisans; and (vi) keep sector participants informed and aware.

157. To reach these objectives, measures have been implemented designed to (i) improve the quality of products and thereby enhance their marketing; (ii) consolidate decentralized financing facilities; (iii) promote partnership between business organizations, the state and the financial partners; (iv) update laws and regulations; and (v) promote power resources in productive activities in rural areas.

4.1.3.4. Strengthening the industrial fabric and SME/SMI development

158. From 1991 to 2001, the weight of industry in Senegal’s domestic economy hovered around 16 percent. The sector was unable to fulfill its role of structuring the entire economy because of the scant success of the industrial policies and strategies implemented, and the structural constraints compounded by an unfavorable business climate. In 2002, with a view to making Senegalese industry play its intended role, the shared vision of building an appropriate and meaningful industrial strategy led to the drawing up of an Industrial Redeployment Policy (PRI) with the following general principles: to update and develop the industrial sector on an endogenous basis.

159. Updating the industrial sector should enable Senegal to (i) further strengthen productivity, in particular by cutting producer costs; (ii) develop exports by supplying competitive industrial products with high value added and on an adequate scale; and (iii) improve industrial capacity by using dynamic applied research and encouraging technological innovation. In addition, efforts to restructure the productive apparatus will be pursued thanks to the availability of an infrastructure network (industrial parks, communications networks, etc.) and support activities (mechanism for saving problem enterprises, subcontracting, consultancies, various kinds of facilitation, etc.).

160. Developing industry on an endogenous basis requires internal dynamics for optimal enhancement of national resources and the integration of local industry. The goal is to develop a domestic industrial capacity for processing agricultural, livestock, fishing and mining resources for the purpose of boosting growth throughout the country, thereby breaking with the traditional concentration of industrial activities in the Dakar region. This entails (i) developing regional development agencies focused on structuring industries, by encouraging active synergies between research and training centers and subcontracting companies; (ii) creating knowledge agencies centered on known industrial centers by creating synergies between businesses and knowledge producers; and (iii) gradually integrating the informal sector into the modern economy. With this in mind, after Senegal’s eligibility in the MCA was secured, the government initiated creation of a Diamniadio platform, the purpose of which is to establish the logistic basis for supporting accelerated growth.

161. To support and guide SMEs and SMIs in their development, efforts will be made to (i) institutionalize investment assistance facilities and support their establishment by means of a strengthened and decentralized system of financing; (ii) establish a financing system geared to the needs of SMEs; (iii) foster endogenous industrial development in rural areas by supplying power to them; (iv) stimulate entrepreneurial initiative by stressing in particular capacity building for women; (v) organize and facilitate access to consulting services; (vi) establish a mechanism to coordinate the general support system; (vii) create an environment favorable to the development of businesses; and (viii) ensure coordination of direct international support to businesses.

4.1.3.5. Mining20

162. The mining sector represents a total turnover of more than CFAF 100 billion and employs more than 2,500 full-time wage earners. Its contribution to secondary sector GDP is nearly 2 percent, and it accounts for more than 20 percent of exported goods and services. Nevertheless, the sector does face obstacles, such as: (i) the size of investments required for implementing mining projects; (ii) the lack of adequate transportation infrastructure in areas with mining potential; (iii) the lack of a mining policy focused on endogenous development with an appreciable impact on the income of residents.

163. To eliminate these constraints, in 2003 the government adopted a mining code more attractive to investors. The objectives set forth in this code, to be pursued as well within the framework of the implementation of the poverty reduction strategy, aim at (i) strengthening the provisions for managing the environment and rehabilitating mines and quarries; (ii) ensuring that local authorities benefit from financial outcomes of mining; (iii) simplifying procedures and promoting artisanal mining on behalf of local populations.

164. In order to make these options operational, proposed measures relate mainly to the creation of conditions favorable to the development and promotion of the mining sector. These include: (i) creating a greater knowledge of Senegalese geology and mineral resources by establishing a mining registry and a documentation center; (ii) drawing lasting social and economic benefit from the use and processing of mineral resources through awareness efforts, training, education and support for gold panning; (iii) contribute to diversification of peoples’ income sources through research into new applications for substances with few commercial outlets.

4.1.3.6. Tertiary activities: the basis for a strong contribution to GDP growth

165. The tertiary sector contributes nearly 60 percent to GDP. In recent years, the sector made a significant contribution to invigorating economic activity and job creation. Commerce, tourism and tele-services were particularly dynamic.

Commerce

166. Commerce is the chief area of activity of the informal sector and the principal provider of jobs in urban settings, especially for women and young people. To promote these activities, the government first drew up a Senegalese Export Development and Promotion Strategy (STRADEX), then proceeded to assess Senegal’s international integration within the framework of the program entitled “Integrated Technical Assistance to Commerce.”21 Furthermore, a sectoral policy letter was begun, to lay the basis for long term development of commerce. The goal of these initiatives is to define a coherent strategy for promoting exports, streamlined management of Senegal’s domestic market, and implementation of a variety of capacity building programs.

167. To these ends, the initiatives seek to (i) increase the supply of exportable goods and services; (ii) improve access to markets; (iii) complete regional integration with WAEMU, ECOWAS and the African Union; (iv) establish a streamlined and simplified mechanism to support exporters; and (v) contribute to the development of competition and improve the distribution networks over the entire national territory.

168. Furthermore, the strategy also aims at promoting exports, especially non-traditional exports, thereby contributing to the achievement of sustained growth with a viable balance of payments in an economy less vulnerable to price fluctuations of raw materials. The promotion of exports must be supported by an effective diversification policy, insistence on quality, a thorough grasp by the private sector and support organizations of the advantages and constraints of international agreements, as well as forward-looking monitoring of the trend in world demand.

Tourism

169. Tourism is Senegal’s second largest source of foreign currency, adding 4.6 percent to GDP. Accommodation infrastructures were increased in both 2002 and 2003, years in which hotel booking agencies experienced growth of 10.4 percent and 14.1 percent, respectively. This performance places tourism among the primary sectors generating foreign currency inflows. It is nevertheless the case that several constraints and limitations have been identified as belonging to the sector: (i) gaps in infrastructure; (ii) lack of involvement on the part of Senegalese hosts; (iii) need for greater guest security and quality in guest intake; (iv) deterioration of mores and the environment; and (v) scarce funding for the promotion of tourism.

170. In order to promote tourism that is healthy and profitable to Senegal’s population, the strategy pursued with the intention of safeguarding and enhancing the nation’s tourism potential bears on: (i) better knowledge of the potential and execution of structuring investments; (ii) greater ownership of local initiatives; (iii) creation of a framework providing investment incentives; (iv) intensification of activities linked to promotion of high-end tourism; (v) development of a heavily-taxed form of tourism that benefits sustained tourism; and (vi) cleaning up the tourism environment. Implementation of that policy would enable Senegal to reach 1,500,000 tourist visits in 2010, compared to 900,000 visits currently.

Information and communication technologies

171. The development of information and communication technologies was also included among the priorities for promoting services. The main objective is to accelerate the development of tele-services in both urban and rural areas.

172. In line with this objective, the strategy aims at strengthening efforts to promote public and private investment to increase access to telephones and the Internet throughout the country, based on a universal access fund. Developing and implementing training programs geared to information technology business needs should also sustain development of tele-services in both urban and rural settings by increasing access to the market. In addition, the development of services should be accompanied by an accelerated policy of promoting e-government services, to encourage effective public action and modernization of its services through improved coverage of rural areas with electricity. A program to support enterprises in accessing markets and supporting community radio broadcasting, should also help sustain development of information and communication services.

Development of sports and leisure activities

173. The economic impact of sports—a contributor to social integration, national cohesion, virtues learned through sports,22 and an essential, natural vector of the health of a people—is worth measuring by the following yardsticks: (i) wealth creation; (ii) creation of jobs in sports and ancillary fields; (iii) creation and profitability of sports venues; (iv) support for the national economy; and (v) trade. In fact, sports infrastructures and the staging of quality sports events are an opportunity for creating exceptional and enduring wealth throughout the national territory. This wealth creation also extends to companies involved in the production of mass-consumption sports items, as well as ancillary activities in the areas of hotels, restaurants, transportation, security, communications, upkeep and cleaning of infrastructures, architectural consultation, marketing gadgets and local products, and medical services.

174. Assessment of all the above-mentioned components led to a desire to organize and develop professional sports. Accordingly, a sectoral policy letter drawn up in 2004 aims at: (i) creating exceptional wealth on the basis of a quality infrastructure program that caters to shows and advertisement; (ii) creating jobs within the area of sports and tangential to it; (iii) streamlining physical and financial management of supervisory structures for sports; (iv) enhancing the existing decentralization of leagues, committees, districts, sports associations in the regions, territorial departments, towns and rural communes.

Culture

175. Culture’s twofold role is to be seen not only in the promotion of economic growth, but also in the context of the other development objectives, such as support of the environment, preservation of traditional values, and the protection of institutions. In Senegal, the cultural sector faces a variety of obstacles, including: (i) low level of professionalism of some creative artists and participants in the sector; (ii) lack of recognition and legal regulation of cultural occupations; (iii) absence of professional status in the sector; (iv) limited institutional capacity of the Ministry of Culture; (v) underuse of the potential of Senegal’s cultural diversity; and (vi) lack of social security for sector professionals.

176. With a view to removing these obstacles, Senegal has taken action within the guidelines of the Universal Declaration on Cultural Diversity (UNESCO) and has taken up the cause of protecting and promoting diversity in cultural expressions.23 The main objectives of promoting cultural entrepreneurs, actors and agents and strengthening the contribution of the cultural sector to wealth creation will be pursued using the following approaches: (i) creation of a favorable legal and tax environment; (ii) definition of professional status for the sector; (iii) building the institutional capacity of the Ministry of Culture; (iv) support for cultural development institutions, and in particular, Article 7; (v) support for the creation of mutual societies; (vi) involvement of private citizens in cultural promotion, especially women; (vii) prevention and combating of piracy; (viii) protection of traditional wisdom and folklore in its various expressions; and (ix) improved access to genetic resources and profit sharing.

4.1.4. Sectors supporting wealth creation

4.1.4.1. Transportation and mobility

177. The development of infrastructures such as highways and other means of communication such as air transport constitute a determining factor for stimulating private investment, opening up remote areas and integrating activities into the regional and international economies; they also continue to be a not insignificant lever for improving competitiveness. Transportation can also have a significant impact on poverty reduction since its enables access to existing and potential resources. Populations are not only able to move around between rural and urban regions more easily, but are more likely to be informed of existing opportunities.

178. Despite the implementation of initiatives undertaken within the framework of PST-II and PAMU, and the development of a rural transportation strategy, the transportation sector continues to suffer from structural constraints, including: (i) the lack of significant support programs for rural transportation policies (infrastructure designed to provide access to remote areas, in particular intermediate means of transport (IMT); (ii) failure to take handicapped persons into account in the transportation system in particular, and the organization of personal mobility in general; (iii) inadequate integration of modes of transport in urban areas (e.g. the TUs in Dakar);24 (iv) failure to comply with safety standards in passenger and cargo carrier systems (obsolete vehicles, overloading, violations of the Highway Code); (v) cluttered sidewalks, absence of sidewalks and pedestrian crossings; and (vi) failure to explore river and ocean transport systems. These deficiencies constitute handicaps to the accelerated growth strategy.

179. In order to eliminate these constraints and improve the mobility of persons and goods, the government will implement a policy of re-energizing the sector by aiming at the following objectives: (i) develop infrastructures (road, port, rail and air) while improving the quality of services provided to their users and the conditions of urban mobility; (ii) provide better organization and proper training for transport sector stakeholders; (iii) improve mobility and accessibility in rural settings; (iv) create a sector-specific financing facility and procedures for mobilizing resources that is geared to the rural transport subsector; (v) reorganize the institutional and regulatory framework for transport; (vi) improve the security and smooth functioning of the transport sector; and (vii) open up rural areas currently lacking outside access. The strategy adopted is to be built around the promotion of public-private partnership and around consensus building and greater involvement of local authorities and stakeholders in the sector.

4.1.4.2. Energy services

180. Besides constituting a wealth-creating sector in itself, the energy sector also has strong intersectoral linkages with various socioeconomic sectors (agriculture, health and education). It therefore constitutes a sizeable component of development, being both a domestic necessity and a production factor directly affecting the competitiveness of products, the time input in work (time budget) and women’s health. This cross-cutting character of the energy sector makes it an important instrument in the fight against poverty.

181. The government has already initiated several actions in the context of reform of the energy sector, with objectives including the privatization of SENELEC, liberalization of the sector, a rate system in line with the international market, subsidies for small cylinders of gas to continue to spread the of butane—given the impact on poor households and on the external environment of the use of natural resources—and the establishment of a rural electrification agency. Thanks to the investments mobilized for the purpose of increasing production capacity and improving the management of the principal enterprise (to which must be added the performance made in rural electrification), the energy subsector maintained a satisfactory level of activity, posting growth of 3.4 percent in 2004.

182. Access to energy services remains a problem despite the rise in the rate of electrification—especially the rural rate—which rose from 6 percent in 2000 to 12.5 percent in 2004. Nevertheless, the rate rise was not sufficient to create local value added. In urban areas, 55 percent of households have access to electric power, which indicates that Senegal must make efforts to improve the rate of electrification.

183. The overall strategy for developing the sector was drawn up with emphasis placed on the following objectives: (i) develop the institutional framework and production capacity for energy; (ii) promote the engine of productive activities; (iii) involve private operators, village associations and local authorities in the development of energy infrastructures and services; (iv) ensure the financing of activities aimed at developing the energy sector; (v) diversify energy sources and technologies; (vi) promote the control of energy and renewable energy sources; (vii) create an investment program for access to energy services aimed at economic and human development; (viii) provide better and safer public access to domestic fuels; (ix) enhance access to energy services in rural and suburban areas so as to facilitate the working of basic infrastructures (schools, healthcare facilities, conservation infrastructures, etc.); (x) improve access to oil and gas.

4.1.4.3. Financial sector: promoting microfinance

184. The principal constraints identified in the microfinance sector relate to: (i) the lack of professionalism in the sector; (ii) the uncertain sustainability of the basic institutions (MEC and GEC); (iii) the problem involving targeting of beneficiaries; (iv) lack of awareness and information on the part of potential beneficiaries of microfinance; (v) the ineffectiveness and inadequacy of microfinance support structures; (vi) the lack of synergy between the roles of the various sector stakeholders; (vii) the unequal geographic distribution of the SFDs throughout the country; and (viii) the mismatch between the regulatory framework and the way in which some sector stakeholders operate.

185. The encouraging initiatives to promote the sector are key assets for reversing unfavorable trends. In line with the National Microfinance Strategy (SNMF) for 2006-2010, Senegal must (i) facilitate access to viable and sustainable financial services for a majority of low-income households and micro-entrepreneurs; and (ii) build the capacity of stakeholders in the microfinance sector.

4.1.5. Support measures

4.1.5.1. Sound macroeconomic framework

186. Macroeconomic stability is essential for any strategy aiming at encouraging sustainable economic growth. In particular, high inflation, unfavorable to economic growth, has a tendency to erode the purchasing power of wage earners and the assets of the poor than the purchasing power of the poor themselves. Similarly, large public deficits and balance of payments deficits can lead to crises in which the poor are more seriously affected than are the rest of the population. By contrast, macroeconomic stability encourages both domestic and foreign investors, providing greater incentive to invest in the country. By their pursuit of healthy economic policy, those responsible for managing the economy send clear signals to the private sector. Prudent macroeconomic policies also facilitate attainment of low and stable inflation rates, thereby strengthening investor confidence. All these reason explain why the principal objective of macroeconomic policy must be to establish and strengthen macroeconomic stability. In more specific terms, macroeconomic policy must be aimed at: (i) containing the budget balance and the balance of payments at levels compatible with expected domestic and external financing resources; (ii) promoting an equitable tax policy; (iii) strengthening the long-term basis for development and improving the effectiveness of state participation.

187. The actions and reforms designed to achieve these objectives will emphasize continued adjustment of the macroeconomic framework using prudent budget and monetary policies. Because Senegal has no monetary policy that is independent of the fact that it belongs to a monetary union, special emphasis will be placed on consolidating the budgetary framework. This framework will be designed to conform with the convergence criteria set forth in WAEMU’s multilateral oversight framework. The government will take the measures necessary to broaden Senegal’s tax base with a view to raising the tax ration to an acceptable level. Tax policy will also be characterized by simplification of tax measures in order to increase tax yields, reduction of the marginal tax rate (direct taxes) and expanding the tax base by enhancing the efficiency of the collection units.

188. As regards public expenditure, it will be subject to strict monitoring so as to produce a positive basic budget balance. Effectiveness and quality of expenditures will constitute a priority and will be pursued in particular by gradually making universal use of medium-term expenditure frameworks (MTEF). In addition, the government will continue its policy of rehabilitating public enterprises and establishments and will ensure that the Treasury special accounts are balanced in the medium- to long-term. In this spirit, the government has taken measures to ensure the long term equilibrium of the National Retirement Fund (FNR). Where the wage bill in particular is concerned, the objective will be to keep it below 30 percent of tax revenue, as opposed to the 35-percent cap set in the multilateral surveillance framework.

189. In addition, the government will steadfastly maintain its borrowing from domestic banks at levels that do not crowd out the private sector, and will continue the policy of non-accumulation of domestic and external arrears. In this connection, the government will take all necessary steps in the short term to fully eliminate direct short-term monetary financing under Article 16 of the BCEAO charter. To replace direct monetary financing by the central bank, the government can find alternative funding on the regional public debt securities market to cover its financing needs. The government will also support the supervisory agencies in their policy to preserve the viability of the banking system, in particular by observing prudential rules. As regards external financing, the government will only mobilize financing at concessional rates. Overall, the government will take all necessary steps to maintain the basic fiscal balance (excluding the HIPC trust account) at around 2 percent of GDP.

4.1.5.2. Private sector capacity building

190. Within the framework of a partnership with parties concerned about the development of the private sector, in 1999 the government drew up a Private Sector Development Strategy (SDSP), updated in 2002 and 2004. It forms the frame of reference for promoting private initiative and investment, by strengthening the basis for long-term development, improving the effectiveness of government intervention, and building private sector capacity. The strategy focuses on the following: (i) modernization of the justice system; (ii) simplification of administrative procedures related to investment; (iii) corporate financing; (iv) unification of private sector organizations; (v) vocational training; (vi) communications; (vii) institutional mechanisms for supporting the private sector.

191. A number of actions were accomplished with this strategy, namely: (i) installation in banks of facilities designed specifically for SMEs; (ii) simplification of procedures related to investments; (iii) creation of agencies such as APIX and ADEPME, to streamline and strengthen the private sector support mechanism; (iv) innovations introduced in the reformed General Tax Code25 (corporate income tax lowered from 35 percent to 33 percent, single general contribution for SMEs, simplification of the method for calculating the business tax); and (v) implementation of the Private Investment Promotion Project (PPIP). In addition, in the context of strengthening public sector-private sector dialogue, the government established a Presidential Council on Investment (CPI) to lend guidance to a certain number of reforms for improving the private sector environment.

192. Despite the government’s efforts, the private sector continues to face a variety of constraints that cause low levels of private investment, low volumes of exports of high value added products, and the lack of competitiveness of the sector as a whole. These constraints can be summed up as follows: (i) problems of access to land; (ii) problems of access to credit, especially long-term credit; (iii) problems of access to international markets; (iv) higher cost of production factors; (v) long and complex administrative procedures; (vi) labor laws not adapted to the current situation; (vii) a legal and judicial framework unfavorable to private initiative; (viii) the problem of urban mobility in Dakar; and (ix) a lack of infrastructures supporting production.

193. In the interest of lifting these constraints, the government will implement the 2004 update of the action plan of the private sector development strategy to develop an attractive environment that promises to increase significantly the volume of investments to boost growth and fight poverty. These actions include: (i) make management and labor organizations more representative, stronger, and more responsive to the needs of enterprises; (ii) revitalize the chambers of commerce and trade associations; (iii) step up internal adjustment of enterprises; (iv) streamline and strengthen mechanisms supporting the private sector; (v) improve the information system linking the government and the private sector; (vi) simplify and streamline the system of tax incentives to investment; (vii) simplify the procedures related to certain activities involved in establishing companies within the framework of legislative provisions; (viii) foster access to land by accelerating the start up of the Diamniadio Platform; (ix) pursue and enrich the privatization process by developing popular stockholding; and (x) improve private company access to credit.

194. Dialogue between the government and the private sector will be strengthened, in the first instance through the Presidential Council on Investment (CPI), to establish strategic partnership relations so as to identify distortions and obstacles to the development of direct investments and eliminate them.

4.1.5.3. Promoting gender equity and equality

195. Contributions to economic development in Senegal continue to be marked by considerable disparities between men and women. In this connection, the study of the informal sector in the greater Dakar urban area (DPS-2003) revealed that the average hourly wage for men was 43.4 percent higher than that of women (i.e., CFAF 347 versus CFAF 242), and the average monthly income of men was nearly double (1.9 times) that of women (CFAF 79,400 versus CFAF 42,400). Many other gender disparities were revealed in the same study. In the area of paid apprenticeships, for example, more than 95.1 percent of apprentices were men, compared to fewer than 5 percent women; 62 percent of business owners were men, compared to 38 percent women; 67 percent of wage earners were men, versus 33 percent women.

196. The government is in the process of gradually retooling the agricultural sector, although the same gender disparities exist as regards access to machines. In fact, it is the financial capacity of the farmer that determines access to farming equipment, and rural women’s financial capacity is low, caused not by their failure to produce, but by the unfair distribution of resources and farm incomes as well as the lower valuation of tasks performed by women. Several analyses agree that farm production falls far below what it might be because of unequal access to production factors (land, equipment, inputs) on the part of men and women. Consequently, unequal relations between men and women limits economic growth and increases poverty. For this reason, income distribution and control of resources contributing to an improved economic and social condition of women are priority objectives of poverty reduction.

197. To that end, the government will comply actively with the National Strategy for Gender Equity and Equality (SNEEG) to foster those goals by: (i) implementing the SNEEG participation matrix; (ii) developing gender-sensitive analytical tools and methods (time budget studies, statistical data disaggregated by sector); (iii) creating programs to build the capacity of stakeholders in order to promote gender equity and equality; (iv) promoting inclusion of the gender dimension in the preparation of sectoral budgets, the execution and monitoring/assessment of programs and projects; (v) increasing and decentralizing funds devoted to economic promotion and support for women’s activities; and (vi) improving women’s leadership skills.

4.1.5.4. Employment policy in support of wealth creation: promoting decent employment

198. More than unemployment, it is under-employment that constitutes the main problem in Senegal’s job market. Constantly in search of jobs, some workers, unwillingly, take fewer hours than the norm, and others have very low productivity and wages below the official minimum wage (SMIG). The calculable under-employment rate is 21.8 percent of the labor force (i.e., 1,992,372 workers).

199. Since 2000, the Senegalese authorities have taken active steps to fight unemployment. Among other measures, they established the National Fund to Promote Youth, the National Agency for Youth Employment, the Investment Promotion Agency, the SME Development Agency, the Fund for the Promotion of Women Entrepreneurs, the National Employment Action Fund and the National Governmental Employment Agreement. Despite these efforts, recorded results have been disappointing, due to the following structural weaknesses: (i) mismatch between training and jobs; (ii) insufficiently coordinated employment policy; and (iii) lack of information on the job market.

200. In this connection, the government will implement a productive and inclusive employment policy responsive to the objectives of the growth policy and the poverty reduction policy. The specific objectives to be pursued are the following: (i) promoting better management and employability of manpower; (ii) increasing the efficiency and transparency of the labor market; (iii) promoting self-employment in rural and urban settings; (iv) increasing the employment component of growth policies; (v) strengthening and intensifying the contributions of productive sectors to job creation and poverty reduction; (vi) developing and modernizing the public employment system; (vii) fostering better organization of the participation of emigrant workers; (viii) promoting labor-intensive activities; (ix) improving the economic and social status of persons encountering difficulties in the labor market; and (x) improving the health and living conditions of workers.

4.1.5.5. Managing and promoting Senegalese expatriates

201. Senegal has a very sizeable colony of persons residing outside the country and playing an important role by making financial transfers and private and collective investments, thereby contributing to the fight against hunger, access to social services, and the fight against poverty within the country. The Senegalese Expatriate Ministry estimates that more than two million (2,000,000) Senegalese are living abroad.26 Their financial transfers via official channels are calculated at more than CFAF 300 billion yearly, representing from 15 to 65 percent of the migrant’s income and from 30 to 80 percent of the household budgets of families remaining in country, depending on the area. However, Senegal continues to take limited advantage of the resources and potential of this diaspora, owing to multiple constraints, including: (i) lack of accurate knowledge regarding the socio-geographic, socio-professional and socioeconomic characteristics of the diaspora; (ii) lack of organization both on the part of Senegal’s authorities and on the part of the migrants, except for efforts made by expatriate associations and members of fraternities in the host countries; (iii) lack of information on the part of Senegalese living abroad regarding business organizations, procedures and opportunities.

202. With a view to lifting these constraints and involving expatriate Senegalese in socioeconomic development, the following priority objectives will be pursued: (i) put in place a high-performance system to manage and track the Senegalese population living abroad; (ii) establish a policy of involving expatriate Senegalese in development efforts. To those ends, the government will draw up a sectoral policy letter and programs concerned with: (i) information on profitable niche markets, housing, financing possibilities, etc.; (ii) training, support, assistance and follow-up; and (iii) social security.

4.1.5.6 Regional integration and policy synergy

203. Because of the small scale of its domestic market and the economic, environmental, security, social and cultural interdependence of between African countries, Senegal has always placed the question of integration and African unity at the center of its political choices. This explains Senegal’s leadership role in the process of creating country groupings in its subregion (WAEMU, ECOWAS, OMVS, CILSS, OMVG, etc.), and just recently in NEPAD and in the establishment of the African Union.

204. Moreover, a number of studies have shown that internal conflicts have negative impacts on poverty reduction in other countries and that the growth of neighboring countries affects a country’s own economy positively (trade). Consequently, Senegal has developed its own growth and poverty reduction strategies within a context of strengthening subregional integration, and expects to benefit from the comparative advantages of its geographical position to play a significant part in the integration of its region into the world economy. To that end, it will pursue the following objectives: (i) develop air transportation infrastructures, with the construction of a new international airport; (ii) strengthen external contact networks (railroads, water transportation, sea transportation) with its neighbors; (iii) enlarge the capacity of the port of Dakar; and (iv) enhance regional energy integration through electrical interconnectivity. It will also continue research into synergies with neighboring countries by strengthening subregional cooperation organizations such as OMVS and CILSS for the purpose of meeting common challenges in the areas of energy, the environment, the fight against major endemic diseases, international trade, higher education, disaster management, and security management—based on the principle of subsidiarity.

205. The strategy to be implemented will favor: (i) public-private partnership, in line with NEPAD guidelines; (ii) involvement of populations, especially those living in border areas; (iii) inclusion of integration objectives in national policies, in particular in keeping with the principle of subsidiarity as provided for in the Regional Poverty Reduction Strategy Paper (RPRSP) and the Regional Economic Program (PER) and other initiatives such as the “White paper for a regional policy oriented around access to energy services by rural and suburban populations in order to achieve the Millennium Development Goals” within the framework of WAEMU and ECOWAS.

4.2. PILLAR 2: Accelerated development of access to basic social services

4.2.1. Human capital and capacity building

206. The creation of high-quality basic infrastructures that are better distributed geographically, along with the provision of critical social services, constitute preconditions to strengthening the stock of human capital and providing viable solutions to social demand using appropriate investments in social services (education, health, water supply projects, transportation, etc.).

207. The government’s determination to strengthen the stock of human capital by enhancing the education system and improving health conditions has taken the form of a consistent allocation of resources to the education, training and health sectors. In point of fact, budget resources allocated to these sectors have grown steadily from year to year.

4.2.1.1. Education and training

208. Since 2000, Senegal has implemented its Ten-Year Education and Training Program (PDEF), which embodies the government’s approach to education through 2010. This program initiated a new stage in the development of the education system and was launched by the government in collaboration with Senegal’s technical and financial partners, civil society, and institutions and agencies from the education sector, for the purpose of energizing a quantitative and qualitative development of the system of education and training. The inspiration came from the Education for All Program (EFA) and is built around three major strategic emphases (access, quality and management).

209. Implementation of the initial phase of the PDEF facilitated achievement of the following results: (i) an increase in the primary school enrollment rate, up from 70 percent in 2001 to 75.8 percent in 2003, and 82.5 percent in 2005; (ii) an increase in the enrollment rate for girls by improvement in the girl-boy parity index, which reached 88 percent in 2005 (versus 80 percent in 2000) and improved quality of educational services across all cycles.

210. To improve the performance indicators and strengthen the PDEF achievements so as to achieve universal school enrollment in the basic cycle,27 the government has undertaken to update the Ten-Year Education and Training Program (PDEF, 2005-2007). Phase two of the PDEF intends to emphasize quality, and is based on the following options: (i) 100 percent completion of the elementary cycle and improved access to the other cycles; (ii) creation of conditions for a quality education at all levels of training; (iii) elimination of illiteracy and promotion of national languages; (iv) broadening of competencies of communities and governments in the education system, and in particular in the management of schools, monitoring of quality, and mobilization of resources; (v) promotion and orientation of business training to the labor market; (vi) elimination of disparities between economic groups (rich/poor), between the sexes, between regions and within regions, between sectors (urban/rural), at all instructional levels, and taking into consideration the needs of handicapped children; (vii) effective, well-coordinated partnership; and (viii) opening to regional cooperation within the ECOWAS space.

211. To attain these objectives,28 past progress will be furthered, in order to: (i) increase the enrollment rate in primary school to 85.5 percent by 2006 and to 98 percent by 2010; (ii) increase the enrollment rate for girls from more than 80 percent in 2006 to more than 90 percent in 2010; as well as (iii) increase the school completion rate by 58.3 percent in 2006 and by 85 percent by 2010; (iv) reducing illiteracy at a sustainable rate using the “learning by doing” (faire-faire) principle, placing the emphasis on developing a sustainable literate environment.

212. To arrive at these results, research will be done into: (i) a better control of flows; (ii) matching of technical and trade instruction to the needs of the national economy and better allocation of public resources so as to achieve greater efficiency in the education and training system; (iii) matching of training/jobs/companies for the purpose of creating organic links between training schools and companies; and (iv) proper articulation between the formal and informal segments of the education system (daaras, literacy training, etc.). The private sector and informal education will continue to be tapped in order to strengthen the pursuit of the objective of education for all and to satisfy the strong demand. Accordingly, the government will strengthen activities of current programs and insist on access to basic education for the poorest segments of society, school enrollment of young girls, informal instruction of adolescents and adults who lack access to the formal system, elimination of illiteracy, especially female illiteracy, in addition to reduction of disparities between regions and between urban and rural areas. The education guiding law will be updated once again to include the component of gender and underscore the value of experience, especially in alternative and skills qualification instruction. In that context, youth and women’s organizations will be heavily involved in the various actions.

213. To achieve integrated early childhood development, Senegal intends to: (i) rely on the social and cultural resources and practices of the community; (ii) involve all members of the community in an effective support network for children; (iii) promote cooperation with institutions; (iv) start a program in support of families aimed at furthering best practices in health, nutrition and education; and (v) give special attention to children with special educational needs and to specific groups such as low-income families, rural families, children orphaned by AIDS, etc. The policy of providing guidance for children will be continued and the program for building centers for the very young will be strengthened and then extended widely.

214. With a view to fostering the education of girls in elementary school, the government will rely on the following strategies: (i) genuine social mobilization of the entire community; (ii) development of a partnership with the schools, by effectively taking on the gender issue; (iii) the system of rewards and popularization of models (pupils, teachers, school principals); (iv) research and action to find the way to eliminate inequalities between regions and between the sexes. Use of the appropriate techniques for each milieu requires exact knowledge of the issues. For example, the expectations of families should find appropriate responses in the course of research and action.

215. In order to promote skills training for youth and adolescents and orient vocational training to the job market and employment, strategies are geared to: (i) in-depth review of formal and informal training offerings (literacy, community basic education, etc.) and establishment of a new job type chart; (ii) creation/revision of training programs using the competencies approach; (iii) promotion of a dynamic partnership with the private sector; (iv) organization of an apprenticeship program while seeking a consensus, basing apprenticeship on social values of solidarity and establishing an appropriate legal framework; (v) reduction of inequalities between the sexes and elimination of geographic disparities by promoting young girls and consistent support to disadvantaged areas; (vi) training of adolescents and youth aged 13 to 18 who have dropped out of the formal or informal education system before acquiring minimal tools; (vii) extension of the field of action to include attitudes and values associated with peace, tolerance, health, and preservation of the environment by sustainable life styles, vocational competencies, language and math competencies, etc.; (viii) alternating use of theoretical training spaces and workplaces of master guides; and (ix) development of the “learning by doing” approach along the lines of the approach developed in literacy training.

216. In this context, the government will concentrate its efforts on creating conditions in which it can respond to the educational needs of all young people and all adults, ensuring fair access to well-designed programs and textbooks (i.e., textbooks that avoid stereotyping, and include a gender component) designed to further acquisition of knowledge and competencies required by contemporary life. Informal education will be sustained by continued construction of youth spaces, development of modules for building the capacity of young people and their groups.

217. As for the school environment, problems of access to drinking water, electricity, and plumbing and the lack of external walls all limit performance in this sector. To boost the quality of the education system, these needs must be included in school infrastructures.

4.2.1.2. Health and nutrition

218. The sector objectives detailed in the National Health Development Plan (PNDS) are strictly in line with the MDGs. The objective is to reduce maternal and infant mortality, and control fertility. The programs implemented in the framework of the initial phase of the National Health Development Plan (PNDS) had as their objective to “promote access of the poor to social and health services” by means of: (i) improved access of the poor to medical services; (ii) development of community based health services; and (iii) improved hygiene and sanitation conditions in rural and suburban areas.

219. Despite efforts made and progress achieved, the health sector continues to be characterized by inadequate health and social infrastructures and inadequate provision of services. Health providers are not evenly distributed throughout Senegal, notably in poor and remote areas, and have little motivation to carry out their activities despite governmental efforts. Other specific constraints have been identified: (i) failure to take the health map into consideration when building health infrastructures; (ii) existence of criminal practices (overbilling, corruption, disregard of the patient’s bill of rights) that poison the health system; (iii) lack of access to basic drugs still constituting a concern of the first order for the poor; (iv) excessive bureaucracy in the management of projects and programs; (v) absence of programs to strengthen health mutuals; (vi) lack of initiatives to address non-transmissible or old age-related conditions (stress, menopause, isolation, etc.).

220. To ease these constraints and build upon results already achieved, the government updated the National Health and Social Development Plan (PNDS) to cover the period 2004-2008. This Phase II of the PNDS places greater emphasis on fighting poverty and aims at: (i) improving access by vulnerable groups to quality health services; (ii) strengthening prevention and developing communications in order to change behaviors; (iii) improving the availability, quality, and performance of health care personnel; (iv) improving institutional capacity in the sector; (v) promoting partnerships; (vi) strengthening monitoring/assessment of performance and (vii) improving health care financing mechanisms.

221. These priority actions and measures should result in: (i) improved quality, access, and supply of health services in regions where the health situation and the state of poverty are still matters of concern; (ii) promotion among the general population of attitudes and behaviors centered on disease prevention; (iii) improved prevention and care of patients with HIV/AIDS; (iv) improved prevention and action against malaria; (v) improved mother and child health; (vi) improved reproductive health in youth and women; (vii) improvements in women’s and children’s nutrition; (viii) care for chronic illness and non-transmissible diseases; and (ix) promotion of community control over social and health services.

222. Progress made in the initial phase of the PNDS will be pursued, with the objective—among others—of reaching a DTC3 vaccination coverage of more than 80 percent by 2010,29 a therapeutic primary care consultation rate of 60 percent, a prenatal consultation rate of 65 percent, a percentage of childbirths attended by a professional of 70 percent, and a rate of HIV/AIDS prevalence of less than 3 percent.

223. The strategy adopted will focus on: (i) remedying insufficient access to health care through a policy of sufficient funding and quality infrastructures, together with recourse to community-based services to compensate for the lack of staff; (ii) relieving the burden of expenses for health care for the poor (cost of drugs especially); (iii) easier access to health mutuals; (iv) human resource development; (v) support for the private sector and for traditional medicine; (vi) strengthening the control of endemic diseases and epidemiological surveillance; (vii) enhancing the performance of reproductive health programs, in particular by promoting innovative family planning programs; (viii) supporting institutions at all levels: central, regional and district; (ix) promoting protective measures for individuals and groups using hygiene and sanitation and developing habits of prevention using a community approach; and (x) providing equal access to the traditional system of social protection that currently serves men and women unequally.

224. The measures and actions envisaged should bolster the fight against maternal mortality, build on the success of past programs (anti-malaria, immunization programs), integrate programs to combat river blindness, bilharzia, leprosy, Guinea worm, tuberculosis, etc., develop programs to treat non-transmissible and old age-related diseases, and strengthen the two pillars of HIV/AIDS treatment: prevention and treatment.

225. As regards nutrition, the government will continue implementing a multisector nutrition policy with a view to improving the nutrition of women and children. This policy aims at: (i) reducing by half the prevalence of malnutrition in children aged 0-5; (ii) eliminating decisively problems linked to insufficient dietary iodine and vitamin A; (iii) reducing by one-third the prevalence of anemia, especially iron deficiency anemia; and (iv) ensuring availability and long-term access to sufficient quantities and quality of food for the entire population. These objectives will be pursued through the Nutrition Enhancement Program (2002-2015). This program’s first phase reached 20 percent of children under 5 years of age; it conducted successful trials of experiments resulting in a significant reduction in the prevalence of malnutrition and a general improvement of the nutrition of children and women.

226. For the period 2006-2010, the PRN expects to increase the coverage of children by 20 to 50 percent, or 900,000 children under 5 years of age. This intensification of nutrition activities is even more necessary in rural zones, which should be targeted on a priority basis, given the indicators showing a much larger prevalence of malnutrition in rural areas than in urban settings. To attain these objectives, Phase 2 of the PRN will emphasize these three major components: (i) “Nutrition/Community-based Integrated Management of Childhood Illnesses (C-IMCI);”30 (ii) “Multisector nutritional intervention;” and (iii) “Support for policy implementation and program evaluation;” moreover, it will underscore problems of malnutrition, morbidity, and the health and hygiene of women and children.

4.2.1.3. Access to drinking water

227. The government has made access to drinking water a priority item in its poverty reduction efforts, making it part of the PRSP action plan for 2003-2005. To build on past results and translate its objectives into an overall, long-term perspective, in 2005 the government drew up the Millennium Drinking Water and Sanitation Program (PEPAM), which includes its poverty reduction objectives as a component of the drinking water sector.

228. Senegal expects to achieve the MDGs by 2015, namely, 100 percent of urban households and 82 percent of rural households will have access to drinking water. In order to increase the rate of access to drinking water and promote sustained management of facilities, in the short term (before 2010) it will complete (i) 200 new multi-village water supply systems (AEMV)/village water supply systems (AEV) in rural areas; (ii) 150 extensions, including building 70 water towers and 200 modern wells; and (iii) consolidation of existing infrastructures and further extension of networks and subsidized connections in urban and periurban areas.

229. The strategy to be used will focus on: (i) preserving and improving the results of previous urban water improvements; (ii) intensifying the development of rural water facilities; (iii) increasing accountability and participation of direct stakeholders (local authorities, end users, the private sector); (iv) improved synergy between sectors (waterworks, decentralization, sanitation, energy, health) and optimal technical performance and control of infrastructure costs; (v) strict management of water resources; and (vi) creation of mechanisms to ensure long-term financial equilibrium of the public water service.

230. To the ends described above, the government will draw up a unified intervention framework containing common rules and a coordinating tool for all sector participants. The framework will bring the sector’s execution and absorption capacity up to the level of requirements for the coming decade and promote synergies between sectors while coordinating interventions.

4.2.1.4. Access to sanitation facilities

231. Sanitation is central to the Senegalese government’s concerns, and is viewed by the international community as a target for attaining the MDGs. Accordingly, sanitation is one the components of the Millennium Drinking Water and Sanitation Program (PEPAM) drawn up in 2005. The priority objectives are to change: (i) the rate of access of rural households to an independent system for removing sewerage and wastewater from 17 percent in 2004 to 59 percent in 2015; and (ii) the rate of access by urban households to a sanitation service from 56.7 percent in 2002 to 78 percent by 2015. The target access rates with a year 2015 time frame are: 85 percent for Dakar, 72 percent in areas with sanitation services and 68 percent in areas without such services.

232. The short-term goal (by year 2010) is to build 71,000 individual systems and 84,000 public facilities in rural areas. In urban areas, the goal is to construct 92,400 connections (including 28,600 subsidized connections) to collective networks and semi-collective networks, and to install 135,000 independent systems. As regards collection and treatment of wastewater, the goal for Dakar is to boost the capacities of STEP to more than 34,000 cubic meters per day. The government will take measures to strengthen the capacities of state service agents, consumers, local authorities and the private sector, as well as social intermediation and monitoring/assessment (impacts, environmental monitoring, resource management).

233. The actions and measures contemplated will help achieve the following objectives: (a) improve household access to working systems for removing sewerage; (b) improve household access to working systems for removing wastewater and rain water; (c) improve access to working systems for managing solid waste; (d) change people’s attitudes and behaviors in a positive way; (e) improve the institutional and organizational framework by implementing so-called second generation reforms. Moreover, new programs providing access to sanitation targeting the poorest households will be implemented, to improve the effectiveness of subsidized connection programs.

234. The strategy to be used will focus on: (i) implementation of second generation reforms through the law on public drinking water and sanitation services; updating Senegal-ONAS contracts; establishment of a sanitation code; inclusion of the rain water problem in the strategy; (ii) optimizing techniques and strengthening infrastructures, in particular to reduce environmental impacts and take advantage of complementarity between public sanitation, semi-public sanitation, and individual sanitation; (iii) gradual improvement of the financial equilibrium of ONAS.

4.2.2. Natural capital, housing and living conditions

235. Natural capital enhances human capital, and like human capital, it represents an important engine of long-term growth and improved living conditions. As such, the international community has placed the environment at the heart of the Millennium Development Goals (MDG: See goal #7).

4.2.2.1. Management of natural resources and the environment

236. Senegal’s natural potential is quite considerable, including 13 million hectares of forest covering 65 percent of its national territory in 1990. However, the overall trend in its natural resources is marked by accelerating ecological deterioration in the midst of a severe climatic crisis, whose effects are exacerbated by unsustainable models of consumption and production and poorly planned human activities (population pressures, cropland creep, expansion of irrigation farming systems, unbridled urbanization). Soil resources are beginning to deteriorate (salinity, acidification, wind and water erosion) as inappropriate cultivation techniques and practices are adopted, the carrying capacities of some ecosystems is exceeded, and competition for increasingly less productive spaces grows, etc. At the present time, it is estimated that 2.4 million hectares of land are in need of fertility restoration.

237. Senegal still has significant potential in terms of vegetation cover and biodiversity. Nevertheless, the last four decades have seen a sizeable reduction in the vegetation cover, the result of encroachment by farms and charcoal makers, exacerbated by drought and household use of wood. To be exact, 55.5 percent and 11 percent, respectively, of households use firewood and charcoal for cooking. It needs also to be pointed out that the management of natural resources faces other problems, including: (i) human pressure on the environment, specifically land use pressure and massive, often disorganized, facilities built for the hotel and tourism trade; (ii) worsening of the climate; (iii) salinization of soils, underground water and surface water; (iv) exploitative felling of tree species for lumber; (v) firewood collection; and (vi) brush fires that prevent regeneration of certain species. This degradation of forests that serve as the habitat and source of food for animal species has had direct impacts on fauna, jeopardizing their development and survival. Forest degradation has also had negative impacts on the fight against climate change, in that forests constitute carbon reserves that can help reduce CO2 in the atmosphere.

238. Senegal is encountering pollution problems from gas emissions from industry, automobile tail pipes, solid waste polluting water, and hazardous waste such as obsolete pesticides, biomedical waste and infectious waste. Senegal is facing multiple waste management problems: (i) high cost of eliminating certain waste products; (ii) problems identifying an appropriate technology at a reasonable cost; (iii) lack of government-owned equipment for treating hazardous waste; (iv) lack of appropriate equipment for collecting, transporting and eliminating infectious waste products; (v) problems managing chemical products rationally. In addition, Senegal faces the environmental problem of adapting to the harmful effects of climatic change.

239. In sum, all these problems and constraints associated with management of the environment in Senegal give rise to unsustainable practices that exacerbate poverty and the vulnerability of populations. In order to find a comprehensive solution to these ills, Senegal has taken a variety of initiatives including drawing up a sustainable development strategy and an environmental sector policy letter (LPSE), with the intention of reversing these trends. It has also committed itself to pursue the following priority objectives: (i) concerted development of natural resources (rational and sustainable use of resources, fuel diversification, reduction of losses to consumption); (ii) safeguarding the environment and fighting desertification; (iii) safeguarding fauna and flora; (iv) safeguarding deep sea and coastal environments; (v) capacity building in natural resource and environmental management; (vi) promotion of rational management of natural resources and preservation of biodiversity; (vii) capacity building in natural resource and environmental management (GRNE) through training, education, awareness, literacy, etc.; (viii) community management of protected areas; (ix) optimizing government intervention under the Environmental Code; (x) fighting pollution, hazards and risks; (xi) enhancement of wildlife resources; and (xii) promotion of sustainable methods of production and consumption31 in all development sectors.

240. To reach these objectives, Senegal’s strategy will be based on an improved institutional framework and a better organization of environmental management, that provides incentives and encouragement for all stakeholders to adopt positive attitudes in taking ownership of strategies and actions, and promoting methods of sustainable production and consumption in order to better preserve natural resources. In fact, the challenge is to find the means for simultaneously remedying economic development problems and reducing poverty, without exhausting or further degrading land resources. Promoting sustainable methods of production and consumption, in addition to protecting the environment against various degradation factors, will also produce economic benefits, namely job creation, development of industry, improved access to markets and technological progress, to mention just a few.

4.2.2.2. Housing, living conditions

241. The quality of urban life is impacted by the fact that Senegal’s urban population grew from 25 percent in 1960 to 41 percent in 2002, and that this phenomenon is due in part to an exodus of rural populations to the cities, and to Dakar in particular. Moreover, it must be noted that in most cities, unhealthy areas unfit for habitation make up from 30 percent to 40 percent of the occupied spaces, concentrating a sizeable proportion of the population. In truth, the occupation of space is carried out without regard to urban planning and without environmental assessments of the development options (environmental impact studies or initial environmental analysis)—which are obligatory under the terms of the Environmental Code.

242. The slumification of the built up areas, nomadic population movements in periurban areas in the winter time, hygiene and health problems resulting from flooding, insecurity arising from poorly planned urban development—all these vulnerability factors draw down living conditions in poor urban neighborhoods. In order to reverse these trends, the government intends to implement policies to improve the living environment in urban and rural settings, and promote public housing. Accordingly, the following priority objectives will be pursued: (i) ensure better access to developed and appropriated land parcels; (ii) extend land rehabilitation to benefit neighborhoods affected by flooding. To achieve these objectives, the government will pursue a variety of programs geared to eradicate slums and shanty towns in urban areas susceptible to flooding.

4.3. PILLAR 3: Social protection, prevention and management of risks and disasters

243. The diagnostic study32 of social protection in Senegal showed the existence of formal social protection mechanisms based on the coverage of civil servants and other wage-earners against risks: social security (CSS, IPM, IPRES, FNR), private insurance, and supplementary professional mutual associations. These systems are experiencing serious performance problems and are limited in their capacity to respond to the various social welfare and risk management needs. They are currently constrained by a series of major challenges associated with the need to adapt to a changing labor environment, the new, emerging socioprofessional and family structures, and the demographic upheavals in the decades ahead.

244. To meet all these challenges, various sectoral initiatives have been taken with support from the development partners. For its part, the government has taken a series of measures: sector policy letters on social security, gender equity and equality, development, establishment of the social security council, and actions targeting certain vulnerable groups such as disabled and retired persons. Moreover, private stakeholders and community health organizations (OSC) have initiated actions in the social protection area with support from the partners, in particular through the establishment of health mutuals.

245. In order to ensure that the interventions are cohesive, the government has included the formulation of an integrated social protection strategy among the country’s priorities and decided to make this strategy the instrument for taking steps to combat vulnerability in the poverty reduction strategy.

4.3.1. Objectives for combating vulnerability

  • 246. Social protection and risk management are instruments of choice for accelerated growth and a sustainable reduction in poverty. Accordingly, public interventions intended to help individuals, households, and communities will be carried out so as to smooth out irregularities in income and consumption levels and reduce the probability of devastating welfare losses plunging people into poverty.

  • 247. The objective of the National Social Protection Strategy (SNPS) is to strengthen and equitably extend the social safety net by 2015, increasing the rate of medical insurance coverage from 20 percent of the population to 50 percent, and putting in place a social protection regime that covers the risks associated with disasters and the risks for the informal and artisanal sector. In this regard, the aim is to: (i) guarantee access by the vulnerable groups to basic social services; (ii) increase access to risk management instruments and social protection systems, in particular mutual societies; (iii) improve the targeting, monitoring, and evaluation of the actions aimed at vulnerable groups; (iv) establish provident systems for agricultural risks; (v) guarantee incomes to persons in difficulty and vulnerable groups, while permitting them to participate in the formal social protection systems; (vi) strengthen the mechanisms for direct resource transfers to vulnerable groups; and (vii) improve the shock and risk response capacity for vulnerable groups.

4.3.2. Components of the National Social Protection Strategy

  • 248. To achieve the objectives assigned to the SNPS, actions and measures will be carried out through four (4) components: (i) the reform and strengthening of the formal social security systems; (ii) the extension of social protection; (iii) the prevention and management of major risks and disasters; and (iv) the social protection of vulnerable groups.

    • Reform and strengthening of the formal social security systems

  • 249. The main constraints identified concern welfare evasion,33 the low level of service, the absence of comprehensive coverage, and the exclusion of unemployment from the package of social risks covered by the systems. Moreover, there is persistent discrimination against female civil servants and workers in the private sector in respect of extending medical insurance coverage to their husbands and dependents. The same holds true in respect of survivors’ benefits and taxation.

  • 250. The strategy adopted in this regard involves, on one hand, the implementation of measures to make up for the lag in the social security system and, on the other hand, broadening the mandatory scope of personal and material coverage in order to address the needs expressed by wage earners and other labor force categories.

  • 251. The steps contemplated give priority to the following objectives: (i) promoting the prevention of social risks; (ii) combating welfare evasion; (iii) reforming the legal and regulatory texts and consolidating the regulatory system; (iv) broadening the scope of application of social security services, in particular by extending them to public housing for workers; (v) capacity building for professionals working for social security and other social stakeholders; (vi) reforming discriminatory legal and regulatory provisions in order to address the special social security needs of women; and (vii) reducing the risk of workers falling into poverty (as a consequence of illness, old age, and job loss) by establishing appropriate forward-looking mechanisms. Carrying out the priority measures will make it possible to achieve the following outcomes by 2010: first, having virtually all enterprises current on their social contributions, and second, development and implementation of a new social security regime.

    • Extension of social protection

  • 252. In Senegal, social protection measures cover only 7.8 percent of the population in an environment characterized by the predominance of family businesses (in agriculture, crafts, etc.) and the spread of the informal sector, the main refuge of the jobless, particularly women.

  • 253. To trigger a dynamic of breaking away from this pattern and creating the conditions for a sustainable expansion of social protection, the following objectives will be pursued: (i) strengthening the health mutuals and improving the health insurance system in order to have a health risk protection system that covers all of the employed labor force and their dependents; (ii) establishing a health risk protection system for vulnerable persons; and (iii) establishing social insurance systems for persons engaged in agriculture and economic players in the informal sector, crafts, etc. Ultimately, the aim is to increase the rate of health insurance coverage for the population to at least 28 percent by 2010 and 50 percent by 2015, as compared to 7.8 percent in 2005.

  • 254. The strategy to be pursued will be based on the promotion of a modern social protection system, which incorporates and reinforces our mutual assistance values, while being based on rules and formal mechanisms built on the concept of looking forward and sharing risks at all levels. The system will focus on the healthcare subsector before being broadened to others (old age, accidents, etc.), with rural residents and transport drivers being targeted in an initial stage. Handicapped or indigent persons will be handled in these systems through solidarity mechanisms in the form of sponsorship and social assistance as already in use in some mutual associations (for example, the experience of the commune of Dakar).

    • Prevention and management of major risks and disasters

  • 255. The risks and disasters to which the people are exposed keep the most vulnerable groups in unstable situations and plunge others into poverty. Owing to their impact on persons, property, and the environment, they erode significant growth gains in the national economy. In this connection, the government has taken major initiatives headed by the adoption of a legal arsenal and the establishment of the High Commission on Civil Protection, the National Civil Security Committee, and a number of disaster management and prevention plans and bodies, the most widely known of which is the ORSEC plan.

  • 256. Despite these undeniable strengths in terms of political commitment and legislation, it must be noted that the implementing modalities for these legal and regulatory provisions pose difficulties. Moreover, the sectoral organizations and structures have limits in respect of management of risks that have broader impacts, in particular the lack of a medium-term strategic vision on risk management that is consistent with sustainable development and poverty reduction policies, the mismatch between security regulations and the development of society, technology, and human behavior, and the absence of a risk prevention culture in the general public.

  • 257. To ease these constraints, in keeping with the “Hyogo Framework for Action 2005-2015” and the “Africa Regional Strategy for Disaster Risk Reduction” (2004), the government has developed a prevention and management program for major risks and disasters which targets primarily the following objectives: (i) promoting risk and disaster prevention and management strategies in support of national plans, in particular with the establishment of a national platform for risk and disaster reduction headed by the High Council on Risk and Disaster Management; (ii) coordinating and promoting the risk and disaster prevention and management culture through the implementation of an effective communication and social mobilization strategy; (iii) strengthening the legal and regulatory arsenal; (iv) controlling major industrial accidents and floods; and (v) reducing the factors of vulnerability in the various sectors and strengthening social assistance to vulnerable groups in the event of disasters. These objectives will be pursued alongside research and training efforts on the concept of risks and disasters and implemented through prevention and management programs for risks, disasters, and major accidents, the promotion of insurance systems in the sectors of agriculture,34 crafts, etc., and the promotion of early warning systems.

    • Social protection of vulnerable groups

  • 258. Risk analysis shows that some social groups, because of income shortages or insufficient invested capital, are more vulnerable than others to certain collective or individual shocks (illness, disasters, etc.), which exposes them to and/or keeps them in poverty. To meet these challenges, the government will implement a strategy for supporting vulnerable groups aimed at: (i) improving the targeting, monitoring, and evaluation of the actions aimed at the vulnerable groups; (ii) increasing vulnerable groups’ access to risk management instruments and social protection systems; (iii) strengthening the mechanisms for direct public resource transfers toward vulnerable groups; (iv) improving access to social services by vulnerable groups; and (v) ensuring that vulnerable groups have access to assets and to the full exercise of their rights. Ultimately, at least 500,000 families in extreme poverty per year will receive a resource transfer enabling them to have sustainable access to social services.

  • 259. Special programs will be set up to benefit particular groups such as the disabled, women in vulnerable situations, children at-risk, youths, nontraditional workers, refugees and repatriated persons, the elderly, persons living with chronic diseases (HIV/AIDS, kidney failure, diabetes, cancer, etc.), and displaced persons.

  • 260. With respect to the disabled, the actions contemplated are aimed at improving their economic and social situation and combating the prejudices they suffer. This entails: (i) improving the healthcare conditions and mobility of the disabled; (ii) promoting the education and training of the disabled through the development of integrating education; and (iii) improving their economic and social integration. The programs to be implemented relate to: (i) promotion and protection of the disabled; (ii) rehabilitation at the grassroots level; (iii) improving the environment of the disabled; (iv) capacity building; and (v) advocacy to promote and protect the rights of the disabled. The implementation of a national program for grassroots rehabilitation will be the primary instrument whereby, by 2010, nearly 20,000 disabled persons will be provided with equipment and financial and technical support at nearly 3,000 Economic Interest Groups (EIGs) established by the disabled for carrying out income-generating activities.

  • 261. As regards the protection of women in vulnerable situations,35 the government will continue the legal and regulatory reforms already initiated in accordance with the principles set forth in the Constitution, which explicitly recognizes the rights of women, in particular those associated with access to land. It will also endeavor to harmonize the national laws and the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and charter on human rights. To this end, steps will be taken to: (i) promote the rights of women and girls through enhancing the awareness of all people, disseminating texts under the SNEEG, strengthening the legislation in force, and adopting special provisions to ensure its effective application; (ii) improve the economic and social situation of women in vulnerable situations, in particular through the establishment of infrastructures to make domestic work more manageable, make appropriate technologies and equipment available to rural women for use in processing and preserving products; (iii) building the capacity of women to reduce their vulnerability through specific measures taken under the sectoral programs for education, health, justice, etc.; (iv) improve access to education for girls and make it possible for them to stay in school at all levels of education, and promote vocational education for women and girls; (v) promote improvements in the health of women, girls, and children; and (vi) combat the violence to which women and young girls are exposed.

  • 262. In the case of at-risk children, the goal is to strengthen the priority actions to eliminate the worst forms of child labor and to protect children against all forms of exploitation, abuse, and violence. More specifically, this will involve: (i) developing a strategy for caring for and socially reintegrating children in conflict with the law and children in difficult situations; (ii) creating and building the capacities of institutions specialized in caring for vulnerable children (children of female beggars, children serving as guides for the disabled, children of women affected by extreme poverty, AIDS orphans, children victimized by drug addiction, Talibe boys, abandoned children, or children in conflict with the law); (iii) strengthening the existing legislation on child protection and taking steps to ensure its effective implementation; (iv) developing information, social communication, research, advocacy, capacity building, and direct promotion activities to eliminate the exploitation of children by panhandling, early marriages, etc; (v) ensure better care for the children victimized by HIV/AIDS and chronic diseases; (vi) engaging in advocacy efforts aimed at the political authorities, religious authorities, traditional authorities, development partners, and the community as a whole with a view to improving the living conditions of Talibe boys; (vii) taking steps and establishing provisions for the registration of all persons in the civil registry; and (viii) continuing and strengthening the improvement of spaces and infrastructures favorable to the development of children.

  • 263. With regard to elderly persons or seniors, the government will take priority action to promote their physical and moral development, improving their care, and improving their living conditions. Specific measures will also be introduced in order to ensure that retirees have decent pensions and to guarantee the long-term viability of the pension schemes. This will entail: (i) creating a minimum allowance for seniors that guarantees minimal income to any elderly person with no basic retirement pension; (ii) introducing tax incentives benefiting the retired; (iii) taking the steps necessary to improve the purchasing power of elderly persons and the job security of seniors engaged in professional activities; and (iv) establishing healthcare facilities specialized in geriatrics with a view to improving the coverage of the healthcare needs of the senior citizens, with special attention to services specific to elderly females. Continuing the measures initiated by the government will make it possible to introduce a sustainable system for ensuring free access to healthcare services by the majority of the elderly by 2010.

  • 264. For youths and adolescents, the government will strive to improve living conditions and promote social and economic integration. To this end, priority actions aimed at reducing their vulnerability will be taken in order to: (i) protect youths and adolescents from STDs/AIDS and reproductive health problems through an increase in the number of adolescent counseling centers; (ii) strengthen the programs for social and economic inclusion of youths through decentralization and increasing the resources of the National Action Fund for Employment (FNAE), the National Youth Promotion Fund (FNPJ), and the National Youth Employment Agency (ANEJ); (iii) combat drug and tobacco use by developing programs to care for young drug addicts and providing adequate training to youths that can lead to job-holding; and (iv) develop social safety net programs for young workers (street vendors, shoe shiners, restaurant workers, crafts workers, etc.).

  • 265. Finally, as regards displaced and repatriated persons, specific measures will be introduced with a view to their reinsertion and reintegration. Associated measures will also be taken to enable these persons to take advantage of opportunities for wealth creation, capacity building, and access to basic social services. In this regard, a special support fund for displaced and repatriated persons will be set up, with support from development partners. Particular emphasis will also be placed on initiatives promoting the securing and reconstruction of the areas left by displaced persons, so as to encourage them to return to their customary places of residence. In the specific case of refugees, the government will introduce measures to improve “refugee management strategies” by supporting return assistance strategies and building the capacities of the National Eligibility Commission (CNE).

  • 266. In view of the interrelationships between population and development and the impact of certain population trends on the vulnerable groups, the government will take steps to better control demographic phenomena.

4.4. PILLAR 4: Good governance and decentralized and participatory development

267. The government’s strategy, set out in the National Good Governance Program (PNBG) and the CFAA-CPAR action plan, is intended to promote the rule of law in a democratic society, as well as efficiency and transparency in economic and social management. The government therefore intends to instill in the minds of every citizen the values and virtues of democratic society, the virtues of peace and stability, and the value of an environment conducive to production and to transparent management practices in the public and private sectors.

4.4.1. Improvement in the quality of public service and economic governance

268. To meet the challenges of quality administration, the government intends to continue a policy aimed at efficiency in economic and social management. In this connection, the following objectives will be pursued: (i) streamlining administrative structures to improve the approach taken to the missions and functions of the various ministerial departments and their components; (ii) moving forward with deconcentration by extending it as far as decentralization, both as regards the preparation of basic legal and regulatory provisions and from the standpoint of the accountability of technical units at all national, regional, and departmental levels; (iii) ensuring the quality of the services rendered to citizen users and business users; (iv) reducing the administration’s internal and external communications deficit; (v) driving toward modern human resource management that guarantees the availability of high-quality, accountable, and motivated personnel; and (vi) enhancing the capacities for citizen monitoring of public actions. The implementation strategy will include: (i) streamlining of the institutional and organizational framework; (ii) promotion of a quality approach; (iii) modernization of human resource management; and (iv) enrichment and strengthening of human resources.

269. In the area of improving fiscal management and government procurement procedures, the government will implement the CFAA and CPAR action plans. In this connection, there are plans to: (i) gradually extend the introduction of sectoral medium-term expenditure frameworks to all ministries; (ii) continue deconcentration and payment authorization for public expenditures; (iii) enhance transparency in the execution of the budget law (publication of budget execution statements, regular and timely production of operating accounts and draft budget settlement laws); (iv) streamline and enhance the capacities of the fiscal control structures; and (v) renew and streamline instruments and procedures. These initiatives will be carried out at the level of the Ministry of Economy and Finance through improved organization of internal structures and the streamlining and readaptation of the multiple existing instruments, including an improved public expenditure information system. In the technical ministries, the focus will be on building capacities in the areas of formulating sectoral strategies and policies, and preparing, supervising, and monitoring projects and programs. In addition, steps will be taken to improve the coordination of aid and to introduce performance-based public expenditure monitoring.

270. With regard to the system for awarding and executing government contracts, steps will be taken in respect of: (i) the legal framework, through revision of the code of government obligations and the procurement code; (ii) the institutional framework, with the creation of a body responsible for regulation and a body responsible for ex ante controls; and (iii) the performance of the private sector and system integrity, by means of a government procurement audit.

4.4.2. Judicial governance

271. A legal and judicial system conducive to good governance and development is one in which laws are clearly defined and uniformly applied by an objective and independent judiciary. The system enforces the law and the rights of citizens, and facilitates the circulation of persons and property (private capital movements, etc.) in keeping with the government’s public service mission. To this end, to achieve greater accessibility and sustainable efficiency, the activities of the justice system will be oriented toward the people and toward public and private services.

272. Against this background, the government will pursue various objectives in order to: (i) move forward with the reform of justice and improve the business climate; and (ii) combat corruption and strengthen the analytical capacity of the legislative branch.

273. At the institutional level, the measures already initiated will be continued under the PSJ with a view to bolstering the independence of the justice system and improving the legal environment, in particular by: (i) setting up a justice system that is accessible to those subject to its jurisdiction, through improved territorial coverage by the courts, the development of communications, and facilitating access to courts and tribunals; (ii) establishing rapid and equitable justice by organizing legal assistance, reducing the workload of judges by increasing the number of judges and court clerks, modernization of working instruments, and the development of more rapid procedures; (iii) establishing a justice system that is more highly respected, by speeding up the enforcement of court decisions and enhancing the standing of the bench; (iv) improving the training of judges and court personnel; and (v) adapting legislation to the sociocultural, economic, and international context, through the creation of specialized court jurisdictions.

274. Senegal regards the fight against corruption as particularly important in that corruption increases poverty, distorts the outlook for economic and social development, engenders additional costs, in particular for the poor, and undermines the foundations of democracy. Corruption is particularly evident in the public procurement process or when the systems for monitoring the use of public funds can be circumvented. It also occurs in the operation of public services.

275. In the area of the fight against corruption, efforts have included the introduction of a framework for combating money laundering in keeping with the community directive and the establishment of the commission for combating corruption, misappropriation, and nontransparency. These initiatives constitute major steps forward which should be consolidated and strengthened. To this end, the fight against corruption will be intensified by enhancing the independence of the justice system, making it more accessible, and seeking higher quality public services which accord a central role to users.

4.4.3. Local development and decentralization

276. Considerable progress has been made with decentralization since 1996, with the establishment of regional and local governments and the transfer of some responsibilities. However, the local governments experience many problems, particularly in the areas of budgetary and financial resources, the capacity of local human resources, and the lack of synergy in planning and management instruments.

277. To strengthen decentralization and local development to make the fight against poverty more efficient, the government will continue and move forward with the actions and reforms already under way. In this regard it will: (i) improve the institutional and organizational framework by devising a global framework aimed at improving local development and the financial and administrative management of the localities; (ii) building local government capacities through the upgrading of human resources and through programming; and (iii) increase resources and continue the budgetary and financial reforms of local governments so as to ensure the financing of infrastructures and equipment.

278. To this end, decisive steps will be taken to: (i) increase the financial transfers from the state (FECL, FDD, etc.); (ii) harmonize technical support and planning tools; (iii) build local government capacities; (iv) lay down by-laws for local elected officials; and (v) continue the budgetary and financial reforms: decentralization of the Consolidated Investment Budget (BCI) and reform of the state transfer funds (FECL and FDD). Steps will be taken regarding the local taxation system so as to enable the localities to free up sufficient resources to finance local public investment.

279. To coordinate the actions taken in favor of the localities, the government will rely upon the National Local Development Program (PNDL), the principal instrument for implementation of the poverty reduction strategy at the decentralized level.

4.4.4. Development of secondary hubs

280. Senegal’s urbanization rate is 41.5 percent, with over half of all city dwellers (54.0 percent) living in the Dakar urban area. This heavy concentration of the population is explained by the persistence of migration toward the capital, where six out of ten migrants live. Indeed, of Dakar’s 2,333,420 residents, 877,330, or 37.6 percent, moved there less than one year earlier (ESAM 2). However, contrary to the preconceived notion, it is not rural-urban migration that is driving up the population of the national capital, but rather migration from other urban areas, from the communes in the interior. Finally, the 1-2-3 Survey36 showed that the Senegalese capital is characterized by a sizable share of migration known as “permanent migration,”37 which affects men more than women. As a consequence, more than one Dakar resident out of four was born outside the urban area. Among these migrants, almost six out of ten come from a regional capital, a departmental administrative center, or another commune, while one out of ten migrated from abroad. Only three “permanent” migrants out of ten come from rural areas. According to the same source, the most frequently cited reasons for migration are: (i) the desire to bring families back together; (ii) seeking employment; and (iii) the pursuit of education and training. These reasons to migrate are explained by the job and training opportunities in Dakar by comparison with the secondary cities, which do not have the infrastructures necessary to offer quality services and attractive living conditions. In fact, the western third of the country, and the Dakar-Thiès corridor in particular, continues to account for the bulk of the key production assets and factors for the social and economic development of the people. In 1997, this corridor absorbed 89 percent of investment and accounted for 81.4 percent of private sector jobs. The constraints experienced by the other cities are characterized by their low degree of urbanization and visible shortage of urban economic activities. This is compounded by the problems of decent housing and the environment, which make for living conditions that do not meet the requirements of a functional city, from a spatial standpoint, or a modern city, in terms of its urban development.

281. To continue along this path would increase the risk of urban poverty in Dakar, as well as the problems of housing, urban mobility, urban unemployment, and social integration. To reverse this trend, the government plans to implement a proactive strategy of promoting the secondary cities and regional capitals, making them development poles.

282. Senegal has slightly over sixty cities thanks to the most recent waves of communalization initiated in the late 1980s in the context of the consolidation and decentralization process. However, these cities have very low productivity and attract attention from the surrounding rural areas only because of their administrative function. As a result, their intended role as economic hubs is minimal to nonexistant.

283. In order to revitalize rural spaces and economies, the creation of strategic secondary cities and the outfitting of village centers are important steps toward increasing the possibilities of adding value to products from those spaces and guaranteeing access to basic social services and quality urban planning. In this connection, the objectives pursued are intended to ensure harmonious development by means of grassroots promotion and by reversing the current tendencies to concentrate infrastructure and activities toward the western edge of the country. To this end, the government will strive to: (i) impart new dynamism to the secondary and border cities, the weakest link in the network of cities; (ii) re-examine the improvement of the “small rural city”; and (iii) raise the level of urban planning.

284. More specifically, the strategy for developing secondary cities is aimed at, among other things, strengthening support infrastructures, promoting competitive territories, promoting a better distribution of cities, strengthening the existing network of cities within national territory, and creating the conditions for adding greater value to rural activities. It will thus involve: (i) strengthening basic infrastructures by improving the quality, availability, and accessibility of services; (ii) preparing the border cities for playing a frontline role in subregional integration; (iii) enhancing the level of town planning by improving road networks, water supply, and sanitation systems; (iv) increasing the influence of local governments over development policies; and (v) providing the poor with better access to improved plots of land.

4.4.5 Promotion of social dialogue

284. The promotion of social dialogue as a mechanism for conflict prevention and management through ongoing negotiation and consensus building is an indicator of good governance. Accordingly, in the preface to the National Committee on Social Dialogue (CNDS), the President of the Republic defines the thrust of social dialogue as “the qualitative change of the existing system of professional relationships handed down from the colonial era and the promotion of new types of behavior, attitudes, and working relations that can ensure greater consistency with the new development paradigms. Social dialogue is both an end and a means in any development process, and will contribute to meeting the challenges of the day, namely: poverty, productivity, investment, growth, and employment” (CNDS 2002). This is the context in which the First National Forum on Social Dialogue (February 21 and 24, 2001) was organized by the government with the participation of employers’ and workers’ associations and labor unions. The forum led to the signing of the social charter on November 22, 2004, after a negotiation process that lasted over a year and involved some twenty organizations (labor unions and employers’ organizations) and the government, and also covered the public, parapublic, and private (modern and informal) sectors. The document is built on the principles of freedom of association, job freedom, and the observance of the established rules, and defines a code of conduct, a structure, and mechanisms for social dialogue. Its goals are to: (i) enhance social dialogue at all levels by strengthening the institutional framework in which it takes place, so as to make it more efficient; (ii) take account of the changes in the socioeconomic environment in order to strike the necessary balance between enhancing the competitiveness of enterprises and the interests of workers through a constructive social dialogue; (iii) strengthen the social dialogue mechanisms (collective bargaining, reconciliation, and consultation) through the establishment of a bipartite or tripartite framework so that negotiations take place, first, at the enterprise level, and then at the sector level and national level; (iv) provide training, in particular in collective bargaining, economics, social legislation, and international labor standards, for representatives of workers’ and employers’ organizations; (v) promote the exchange of information and facilitate studies on employment, productivity, and the incomes and social standing of workers and their families; (vi) enhance the capacities of civil society so that it can play a more active role in the formulation of development strategies; and (vii) introduce conflict and professional risk prevention mechanisms as a means of regulating social relationships and improving productivity. The government will support the National Committee on Social Dialogue with a view to implementing the Action Plan prepared to ensure the effective participation of stakeholders.

5. Implementation

  • 285. The initial years of PRSP implementation made it possible to set up and test a participatory mechanism for steering and monitoring the strategy. This created the momentum for collaboration and dialogue on public policies among the various stakeholders. The lessons learned by stakeholders also shed light on the problems encountered with introducing changes in working methods and procedures. Despite the shortcomings observed in the functioning of the PRSP steering bodies, stakeholder participation was ensured through seminars and workshops which drew together, in addition to the members of the National Steering Committee (CNP), all the stakeholders in the process. These various meetings made it possible to adopt by consensus:38 (i) the list of PRSP implementation monitoring indicators; (ii) the guidelines for the partners’ budgetary support programs, such as the “poverty reduction support credit” and the “budgetary support program of the European Union;” (iii) the contents of the implementation instruments (MTEF, POS/POR); (iv) preparation of the “concept paper” after Senegal became eligible for the Millennium Challenge Account (MCA); and (v) the sectoral and multisectoral strategies such as the SNPS and the SNEEG.

  • 286. At the sectoral level, the ministerial monitoring committees were constrained by the lack of technical and material resources needed to carry out their tasks and by their limited involvement in the ministries’ internal programming processes. To ease these constraints, it has been decided to develop a consolidated program for the actions of the national and regional PRSP steering and monitoring bodies and to guarantee their financing.

  • 287. At the regional level, the regional committees were extremely active in preparing their Regional Operations Plans (PORs) and projects on the basis of these papers, after capacity building in this field. However, these projects were not always taken into account in the budgetary trade-off process owing to the lack of appropriate mechanisms. To ease these constraints, it is planned to introduce the following mechanisms for use on a case-by-case basis: (i) sponsorship of the regions’ projects by the ministries; (ii) financing through the Local Government Capital Goods Fund (FECL); and (iii) the establishment of a support fund for regional initiatives.

  • 288. To ensure the effectiveness and sustainability of such interventions, the participatory and decentralized approach (to program steering, execution, and monitoring/evaluation) introduced will be strengthened in order to guarantee the effectiveness of interventions and all the promptness and transparency required to ensure ownership as well as consistency with the sectoral programs and local initiatives.

5.1. Guiding principles for implementation

  • 289. Implementation of the Poverty Reduction Strategy will always be governed by the guiding principles set forth below, which have been broadly endorsed by the stakeholders: proximity, learning by doing, transparency, participation, alacrity, subsidiarity, and complementarity and synergy.

    • a. Pursuant to the principle of proximity, the decision-making centers for the implementation of poverty reduction strategy interventions should be located as close as possible to the beneficiaries and where they live, this to ensure better targeting of activities;

    • b. By applying the learning by doing principle, the state acknowledges that implementation of the poverty reduction strategy is not a matter of concern only to official and administrative bodies, but also to localities and to civil society and private sector stakeholders;

    • c. The principle of transparency emphasizes the suitability of introducing, at the various levels of intervention, a range of mechanisms which ensure visibility and oversight, so as to establish balance between accountability and autonomy;

    • d. Pursuant to the principle of participation, the beneficiaries of poverty projects and programs must be involved in any decision which affects them personally;

    • e. Under the equity principle, the equality of rights and responsibilities in the involvement of the various stakeholders must be guaranteed, taking due account of gender differences, social inequalities, and the special regional and local characteristics which affect PRSP steering and execution and the various areas of poverty reduction activities;

    • f. The principle of alacrity means that it is advisable to adopt procedures to ensure promptness and transparency in disbursement, procurement, and contract execution;

    • g. Under the principle of subsidiarity, implementation will be organized by calling on the accountability of the stakeholders involved at the various administrative levels, from the local to the national level, in light of comparative advantages in terms of efficiency, targeting, economies of scale, etc.;

    • h. Under the principle of complementarity and synergy, the strategy should focus on the efficient combination of means and resources in order to optimize results.

5.2. Institutional framework for PRSP steering and monitoring/evaluation

290. The various stakeholders (government, localities, civil society, private sector, donors) will be responsible for ensuring that the program actually reaches the target populations. To achieve this, it is necessary to establish networks of contact persons and representatives of the target populations, including employees of the deconcentrated or decentralized services, local elected officials, heads of community organizations such as village-level development associations, women’s groups, youth organizations, and professional associations, and, more generally, civil society organizations.

291. Based on the basic principles of the strategy and in harmony with the options strongly affirmed in the context of decentralization, the institutional framework for PRSP implementation revolves around two levels: the strategic level and the operational level.

292. The strategic level is where policies are defined and formulated, and includes: (i) the interministerial orientation committee chaired by the Prime Minister; (ii) the national steering committee chaired by the Minister of Economy and Finance and composed of representatives of the ministries, civil society organizations, local governments, the private sector, and trade unions; and (iii) the regional steering committees chaired by the Governors and composed of the state’s deconcentrated services, civil society organizations, and local governments. The monitoring mechanism is provided at the national level by the monitoring unit (CSPLP) in the MEF, which provides secretariat services for the national steering committee. At the sectoral level, ministerial monitoring committees have been established under the coordination of a focal point. These ministerial committees must play a decisive role in relating sectoral policies to the strategy, ensuring coherence and synergy among the ministerial programs, etc. At the regional level, the monitoring units are responsible for conducting PRS monitoring activities.

293. This mechanism reflects the government’s resolve to ensure that actions will be carried out consistently and that interventions on the ground adhere to the priorities defined in the PRSP. Further to this end, a committee for building consensus between the government and the development partners has been established.

5.3. Implementation instruments and procedures

294. Since 2002, the PRSP has become the frame of reference for drawing up sectoral development plans and investment programs and for the contributions of development partners to poverty reduction.

295. The sectoral and multisectoral programs are regarded as the primary instruments for PRSP implementation. These programs will describe in detail, for the various sectors under consideration, the objectives to be met, the nature of the activities to be carried out, the areas of intervention, the implementation timetable for activities, and the results anticipated. They will also be a sufficiently flexible framework for better coordinating the activities of the various stakeholders (government, private sector, local authorities, civil society organizations, development partners) so that they can make their contributions in areas where they have comparative advantages. To this end, the SMTEFs will serve as the budget execution and programming framework. After a test phase in the education, health, justice, and environment sectors, the government will extend the experiment with Medium-Term Expenditure Frameworks (MTEFs) to the other sectors by 2010. Pending the general use of these MTEFs, Sectoral Operating Plans (POSs) and Regional Operating Plans (PORs) will be the operational programming framework for the ministries and regions.

5.4. Monitoring and evaluation

296. Establishment of a monitoring and evaluation system is essential for assessing the progress made toward the objectives pursued and the results to be achieved. Its aims are to: (i) monitor the strategy implementation process; (ii) evaluate its impacts through intermediate and performance indicators; (iii) monitor and evaluate financial execution; and (iv) introduce an information system.

5.4.1 Overall monitoring

297. Generally speaking, the quantitative monitoring of PRSP implementation is based on an expanded list of about a hundred indicators selected in a process involving the sectoral stakeholders, development partners, civil society, and local governments. The sectoral stakeholders concerned contributed significantly to the selection of indicators in accordance with objectively determined criteria, namely relevance, reliability, and stability. The possibility of obtaining information was also selected as a criterion after the cost of data gathering was studied and validated. The exercise of providing information on the indicators revealed major weaknesses in the data sources as compared to trend data, despite the fact that major efforts were made in the recent period.

298. The main problems with tracking these indicators revolve for the most part around the unavailability of retrospective series. The surveys were not sufficiently complete, and most of the administrative sources still lack adequate resources for ensuring regular and reliable data gathering. It must be added, however, that a number of survey activities carried out between 2001 and 2005 made it possible to reduce the sizable information gap.

299. For the 2006-2010 period, there are plans to prepare an annual progress report and, in the fifth year, a PRS evaluation report. The first year of PRSP-II (2006) will be characterized by the conduct of evaluations of the implementation of the PRSP (2003-2005) by means of a monitoring survey and joint participatory evaluations of projects and programs, with all stakeholders involved. This work will constitute both a stock-taking and the determination of a benchmark statement for monitoring progress through 2015.

300. Use of an execution timetable for survey operations will make it possible to document the various types of evaluation. Senegal expects to observe the programming of data collection activities in the context of the projects on censuses, household surveys, updating of village data, demographic and health surveys, multiple indicator cluster surveys (MICS), and light monitoring surveys.

301. The effort to match sources with PRSP monitoring and evaluation requirements is motivated primarily by a commitment to provide data on PRSP monitoring indicators, the short list of which was defined by mutual agreement with the development partners. In addition to the statistical survey operations, the organization of administrative sources will be improved in order to produce regular and reliable information.

5.4.2 Monitoring at the sectoral and regional levels

302. Sectoral monitoring of implementation is provided by the ministerial committees, whose mission is to coordinate PRS activities in the areas of competence of the ministries and to ensure consistency in planning and interventions (monitoring of MDGs, SMTEFs, etc.). The leadership and coordination of each committee are provided by a focal point working in close collaboration with the CSPLP/MEF. The committee is to produce a progress report on projects and programs and on changes in the indicators for the sector.

303. At the regional level, monitoring is provided by the regional monitoring units, whose mission is to verify on the ground the implementation of projects and programs, changes in the indicators, and the interconnection between local development plans and the regional plans. Each unit will produce an annual progress report for submission to the regional steering committee for the PRS.

5.5. Information and communications

304. One of the main flaws in PRSP implementation that stakeholders identified in the 2003-2005 period was the inadequate information and communications on the PRSP among the various stakeholders and the general public. Accordingly, the establishment of a development portal has been initiated with the participation of stakeholders, as has a process of formulating a communications strategy that can facilitate better liaison between the various PRS steering and monitoring bodies.

5.6. Financing of the strategy

305. Special emphasis will be placed on incorporating the funds mobilized in connection with implementation of the poverty reduction strategy into the budget, a process that has already been started, with a view to avoiding duplication of efforts and creating expenditure synergies to accelerate execution. The incorporation of these funds into the budget process would reaffirm the PRSP’s role of consolidating the link between debt relief, poverty reduction, and the mobilization of resources aimed at achieving the MDGs.

306. In view of these considerations, it is important for the resources mobilized in the context of poverty reduction to be integrated into the government’s planning and programming process while maintaining transparency and the spirit of accountability required to manage the funding obtained for activities identified in the PRSP. Emphasis will be placed on priority needs and on the poorest areas (rural areas, urban periphery).

307. After the cost of the priority activities under the strategy has been estimated, the performance criteria applicable to all stakeholders require that the resources allocated to these tasks be drawn, on a priority basis, from the government’s contributions, from debt relief, and from the mobilization and use of assistance from the development partners. In addition, the impact of these resources must be evaluated in a coordinated, collective, and transparent manner.

308. Finally, the provisions described above are aimed at managing the operational aspects of participation and the close connection that must be preserved between easing the debt burden and reducing poverty. In this regard, it is anticipated that implementation of the strategy will provide the opportunity to build and maintain a new partnership with bilateral and multilateral donors and lenders, which are called upon in particular to coordinate their contributions in terms of the volumes mobilized, procedures, and monitoring and evaluation. In support of this new partnership, donors and lenders are expected to place emphasis on budgetary support—in accordance with the recommendations of the Strategic Partnership for Africa (SPA) and the Declarations of Rome (February 2003) and Paris (March 2005) on the harmonization, alignment, and efficiency of development assistance—and to incorporate the funding intended for projects into a sectoral program approach or include it in a common basket of resources, at least for the financing of priority poverty reduction strategy activities.

309. The set of actions identified by stakeholders during the participatory process, which are expected to have a significant impact on poverty, has been set out in a matrix of measures. The priority objectives and corresponding actions have been identified in the context of a Priority Action Plan (PAP) covering the 2006-2010 period by means a procedure described in the box below.

Process of interconnecting the PRS and the national budget

Stage 1: Development of implementation instruments

For purposes of implementing the Poverty Reduction Strategy (PRS), the priority actions in the matrix of measures are reflected in operational documents for the various sectors, pending the effective introduction of MTEFs.

To this end, the objectives and lines of action of the matrix of measures have been reflected in Sectoral Operating Plans (POSs) and Regional Operating Plans (PORs). These documents, the principal instruments for PRS implementation in the sectors and regions, define the sectoral strategies for PRSP implementation, the specific activities involved, their implementation timetable, indicators, and a cost assessment. The POSs are prepared by the ministerial departments, while the PORs are the result of consensus among the local stakeholders under the supervision of the Regional Monitoring Unit. Each POR is then submitted to the Regional Steering Committee for validation and forwarding to the Ministry of Economy and Finance. The POR is a strategic document with one part devoted to the diagnosis of poverty, one part on the poverty reduction strategy, and another part on monitoring indicators.

Stage 2: Evaluation of PAP requirements

Calculation of the amounts included in the PAP is based on the costs of the priority projects and programs identified. For some sectors, such as social protection, where no projects had yet been formulated and evaluated, the amounts for the priority actions were evaluated on the basis of the unit costs for social protection.

A third method was used to test the overall amounts vis-à-vis the objectives set. This method is based on the principle of indicator elasticities vis-à-vis the allocated budget. These elasticities are calculated by geographic and sectoral levels on the basis of a log linear model.

There are a number of possible scenarios for measuring optimal budget expenditure as regards achieving objectives. However, for purposes of preparing the PRS-II, simulations were performed on the basis of a methodology consisting of determining the changes in the indicator selected and by ricocheting [to identify] the volume of financing that needs to be budgeted in order to achieve the target by the timeline set (source: CSPLP study). Thus, for each target, the investment effort is calculated and compared with the aggregate amounts for the projects and programs identified in the relevant sector for the indicator.

In the fourth method, the results of the costing of requirements based on the MDGs in the targeted sectors were also taken into account.

Stage 3: Programming

The financing requirements for the priority actions identified in the PAP are then compared with the available resources in existing programs or in the PTIP. The financing gap was calculated and divided among the government’s commitments, the resources released by debt cancellation, and the commitments to be sought from financial partners.

310. Implementation of the national Poverty Reduction Strategy requires additional investments of CFAF 76 billion in 2006, CFAF 298 billion in 2007, CFAF 456 billion in 2008, CFAF 436 billion in 2009, and CFAF 553 billion in 2010, yielding a total of CFAF 1,819 billion over the period.

311. The additional current costs arising from strategy implementation are estimated at CFAF 16 billion in 2006, CFAF 28 billion in 2007, CFAF 27 billion in 2008, CFAF 35 billion in 2009, and CFAF 39 billion in 2010.

312. The strategy will be financed by using the contribution from the government, the resources made available by debt cancellation, the contribution from development partners, and other contributions (private sector, the people, etc.).

  • The resources made available by debt cancellation (HIPC, G8, etc.) should be allocated on a priority basis to the rural areas and the areas surrounding the major urban centers, and in the education, health, infrastructure, water supply, sanitation, natural resource and environmental management, and agriculture sectors, on the basis of targeting using poverty indicators and the shortfall in access to basic social services;

  • The contribution from partners will take various forms (budgetary support, project support, loans, subsidies);

  • The private sector, in particular the national private sector, will intervene by various means: public-private partnerships, shareholding by the people, social projects, participation in social and solidarity savings programs, etc.

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ANNEXES

  • Planning framework

The diagram illustrates the planning framework. Among other things, it indicates the linkages between the PRS and the sectoral policies, strategies, and programs, as well as the implementation modalities and the various initiatives under way.

  • Matrix of measures

The objectives and priority actions that should have a significant impact on poverty were identified in the participatory process. They were aligned and reformulated in order to produce a more condensed summary matrix.

The lines of action identified in bold characters are the ones to be carried out in the initial stages of implementation of the Poverty Reduction Strategy.

  • Priority Action Plan (PAP)

The Priority Action Plan (PAP) is excerpted from the matrix of measures. The priority objectives and corresponding actions were evaluated financially in the context of the Priority Action Plan (PAP) covering the 2006-2010 period by means of a procedure described in Box 5.

This PAP is a rolling plan owing to the dynamic nature of poverty reduction actions. Consequently, the information can be readjusted annually in light of changes that have occurred.

  • Macroeconomic framework

This is a summary presentation of the macroeconomic framework for the period (2006-2010). The detail of the framework exercise is available from the CSPLP/MEF.

  • List of indicators

This is a shortlist of indicators selected by consensus during the implementation phase of the first-generation PRSP. Given the original nature of the approach, the indicators proposed in this revision process have been selected subject to validation by the committee during the implementation phase. The decision to include or not include such indicators and their targets will be reached following a technical study (data sources, availability, stability, etc.) and in consensus with all stakeholders (PRSP Unit, sectors, development partners) in accordance with the approach used to identify the shortlist of indicators. In addition, other indicators that also make it possible to measure the efforts made in the context of PRS implementation are set forth in a master list and monitored by the CSPLP/MEF.

6.1. Annex 1: Planning framework

6.2. Annex 2: Matrix of measures (2006-2010)

PILLAR 1: WEALTH CREATION

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Pillar 2: Accelerated promotion of access to basic social services

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Pillar 3: Social protection, Prevention and management of risks and disasters

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Pillar 4: Good governance and decentralized and participatory development

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