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Introduction

Senegal is one of the United States of America's most important partners in sub-Saharan Africa. Largely Muslim, politically stable, and a multiparty democracy, Senegal is a small, poor, and moderate secular nation. Senegal is an influential and moderating voice in Muslim councils, and often consulted by French policy-makers. Senegal's role in efforts to assist Africans to better manage conflicts has also recently grown. Its participation in the African Crisis Response Initiative is indicative of that commitment. Senegal has also willingly provided troops for numerous peacekeeping operations, e.g. Bosnia, Liberia, Rwanda, the Sinai, and Operation Desert Shield, to name a few. Senegal's 35 years of political stability, its increasing political pluralism, and good record on human rights, buttress its partnership with the United States of America and explain why USAID's activities respond to U. S. national interests of promoting democracy and providing humanitarian assistance.

The Development Challenge

Senegal is still among the world's least developed countries, despite its relatively modern capital city. Although Senegal's economic growth has recently improved, it has been virtually negated by high population growth -- currently 2.7% or doubling every 27 years. Per capita gross domestic product (GDP), $532 in 1999, has stagnated since independence. Sustainable economic growth is essential for Senegal to maintain its stability and to continue its democratic evolution. Strong structural adjustments, including recent efforts to privatize and liberalize the economy, have shown Senegal's resolve. Inflation has been less than three percent the past three years, and Senegal's external debt has stabilized at approximately $3.1 billion (66% of Gross Domestic Product in 1999). While economic growth has been positive the past three years, it is not yet strong enough at about 5% in 1999 to have a substantial impact on per capita incomes. Senegal needs to create an environment conducive to generating additional employment and higher incomes.

Unemployment and natural resource management (NRM) continue to be major concerns. Approximately 50% of those willing to work in the capital city are unemployed or underemployed. Much of this is due to an exodus from the rural Sahel, which is vulnerable to erosion, droughts, deforestation and locusts. In spite of its relatively small share of Gross Domestic Product (20%), agriculture is still the principal source of income for about 60% of Senegal's population. Yet annually, one-third of Senegal's cereal needs must be met by imports. Improvements in grain yields have kept up with the population growth rate, but not closed the gap. In addition, 57% of Senegal's energy need is supplied by fuelwood and charcoal, causing extremely negative pressures on natural resources.

Senegal's Socialist Party has been continuously in power since before Independence, and Abdou Diouf has been President since 1981. While pressure to change political leadership has been mounting, the opposition groups have heretofore been unable to overcome the Socialist Party's organizational skills and strong will to remain in power. Senegal's admirably free print and radio media have played an important role in revealing corruption and mismanagement. Whether there is a change or a continuation in the Presidency, Senegal faces the possibility of increased instability in the near future.

Social services in Senegal remain extremely limited, especially for women and children. Maternal mortality is high (510 per 100,000 live births), and many infants die of preventable diseases. Senegal suffers from relatively high childhood mortality rates (140 per 1,000), and women still bear on average 5.7 children each. Life expectancy is 52 years, with half the population under 18 years old.

The 1996 Decentralization Law was a major step towards democratization by transferring more powers to elected local government bodies. Yet implementation to date has been slow. Success will depend on increased political will, continued donor support, and on how well the local level government structures can mobilize revenues and manage their human and physical resources.

In response to these problems and opportunities, USAID embarked in 1 998 on implementation of a new strategy that builds upon past successes and forges new ground. USAID has been and will remain the pre-eminent donor in the family planning sector. Declines in infant mortality and the low incidence (1.4%) of Human Immuno-deficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS) have benefited greatly from USAID assistance. USAID also can be credited with an increased emphasis on preventive as opposed to curative health care. USAID also played a major part in increasing the private sector's role in the economy. As an example, the private sector, not government-owned corporations, now controls the supply and pricing of rice, which is Senegal's largest grain import. When prices start to rise, the private sector responds with additional imports to assure a regular supply of rice.

In the management of natural resources, many farmers are now in a better position to make sure that natural resources are sustainably managed, thanks to USAID work in forming community-based NRM management committees. In the area of democracy and good governance, USAID's support includes campaigns to encourage people to vote. In order to create more employment, USAID succeeded in getting the government to agree to a series of measures to address the impediments to attracting investors to Senegal which were identified in the Investors' Roadmap Study.

Other Donors

The donor community is large and pledges about $500 million per year, which funds 60% of Senegal's investment budget. USAID provided approximately 4% of total external financing assistance to Senegal in 1997, placing the United States as the sixth largest bilateral donor behind France, Germany, Japan, Taiwan and Saudi Arabia, and the ninth largest donor overall. Other major funders are the World Bank, European Union, and the International Monetary Fund. These donors are active in sectors assisted by USAID, but they also cover the sectors of education and physical infrastructure. USAID plays a prominent role among donors, particularly in the areas of economic liberalization, family planning, HIV/AIDS, good governance, and natural resource management. The April 1998 Consultative Group meeting in Paris focused on the need for further debt relief, increased economic growth, and greater sharing of political power.

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