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SENEGAL
>> AFR Regional Overview >> Senegal Overview
Development Challenge Summary Tables
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 199749
Introduction
Senegal is a longstanding partner in sub-Saharan Africa and the U.S.'s closest ally in the French-speaking portion of the continent. A stable, multiparty democracy, predominantly Muslim but secular, it is an influential and moderating voice in Muslim councils, the Organization of African Unity and among its West African neighbors. Its free and fair presidential election in March 2000 led to the peaceful transfer of power from the socialist party that had ruled for forty years to a liberal opposition leader, Abdoulaye Wade. Senegal is also one of the very few countries in Africa that has successfully confronted and contained the spread of HIV/AIDS. A prominent participant in African-led conflict resolution and the African Crisis Response Initiative (U.S.-financed training for African militaries in peacekeeping operations), Senegal has volunteered troops for numerous U.N. peacekeeping operations and Operation Desert Storm, and more recently for Sierra Leone and the Democratic Republic of Congo. But at the same time that Senegal's tolerance, political pluralism, and good record on human rights exert a stabilizing influence in a region marked by conflict and humanitarian crises, widespread rural poverty, urban unemployment, and weak institutional capacity threaten its ability to sustain these successes. This combination between an ally playing a constructive role on the world stage and a country struggling with fundamental economic and humanitarian problems makes this small West African country important to U.S. foreign policy concerns on the continent and indicates the value of strong U.S. engagement in the country's development challenges.
The Development Challenge
Located in the Sahel with a modest natural resource base and a population of nine million, Senegal is among the world's least developed countries. Although economic growth has improved to over 5% per year since 1995, it is effectively halved by a 2.8% population growth rate. Real per capita gross domestic product (GDP), $594 in 1999, has stagnated since independence in 1960. Recent efforts to liberalize the economy, including the privatization of state-owned enterprises, transparent audits of state assets, and reformed commercial and investment codes -- demonstrate a new resolve in the face of a political elite still heavily influenced by European (particularly French) models of socialism. Inflation has remained low, at around 2% in 2000, and Senegal's external debt has stabilized at approximately $2.8 billion (61% of GDP in 2000). While economic reforms have stimulated growth in recent years, it is clear that Senegal must do much more to create a favorable environment for increased investment to generate employment and higher incomes.
High unemployment and progressive degradation of the natural resource base are fundamental problems that Senegal has not been able to solve. Approximately 50% of those willing to work in the capital city are unemployed. Massive migration from rural areas that are vulnerable to erosion, drought, and deforestation is overwhelming urban infrastructure. In spite of its relatively small share of GDP (18%), agriculture is still the principal source of income for 60% of Senegal's population. Annually, one-third of Senegal's cereal needs must be met by imports; improvements in grain yields have kept up with population growth, but not closed the gap. In addition, 53% of Senegal's energy is supplied by fuelwood and charcoal, putting intense pressure on rapidly disappearing forests.
Access to social services in Senegal remains extremely limited, especially for women and children. Over 60% of Senegalese are illiterate and only 6% of the population ever make it to secondary school. Maternal mortality is high (510 per 100,000 live births), and many infants die of preventable diseases. Senegal suffers from high childhood mortality rates (143 per 1,000), and women bear an average of five children each. On the positive side, early and enlightened HIV/AIDS prevention efforts have held the HIV prevalence rate to 1.4%. Life expectancy is 52 years, with half the population under 18 years old.
In contrast to poor provision of social services, the country is both experienced and competent in managing democratic political processes. The dominant political event of 2000 was the Presidential election that put a new government in place. USAID sponsored a voter education campaign which was credited with contributing to a 70% voter turnout. The Senegalese were back in the polling booths in January 2001 to overwhelmingly approve new constitution that provides for equality for women and men with respect to property rights, cuts the president's term of office from seven to five years, and eliminates a patronage-based Senate. Elections for a new legislature are scheduled for April 2001.
A prolonged, low-intensity conflict in the southern Casamance region has inflicted severe hardship on the population and disrupted social and economic development in one of the country's most productive regions. This year saw real progress in ending the conflict with the signing of a cease fire agreement in March 2001. This agreement has significant implications for regional stability, especially concerning The Gambia and Guinea Bissau. The return of refugees and restarting of economic activities in the south of the country will require a significant investment of resources to consolidate and capitalize on the peace.
The new government has adhered to its budgetary commitments under a 1997-2001 International Monetary Fund (IMF) Agreement. As a result of its sound fiscal practices Senegal earned a B+ sovereign rating from Standard & Poors (in January 2001) and is slated to receive debt relief under the Highly Indebted Poor Countries Initiative.
Other Donors
Because of Senegal's importance to the region, its renewed commitment to liberalize its economy, and the profound need, donors pledged about $500 million of assistance last year, which funds 60% of Senegal's investment budget. USAID plays a prominent role among donors both as a result of its field presence and Senegalese interest in U.S. technology and expertise. The U.S. Government is one of the smaller international donors accounting for approximately 5% of total external financing in 2000 and ranking seventh behind France, the World Bank, Japan, IMF, Taiwan, and Germany.
FY 2002 Program
The over-arching goal of USAID's Country Strategic Plan is to promote sustainable development. Strategic objectives in private enterprise, democratic local governance, and reproductive health, and special objectives in girls' education and conflict resolution in the Casamance target the principal problems where the U.S. has clear comparative advantage. These programs are integral to the achievement of U.S. foreign policy goals concerned with promoting regional stability and alleviating poverty, as well as with addressing transnational threats such as HIV/AIDS. Therefore, FY 2002 programs will emphasize private sector reform, access to financial services, strengthening the role of civil society, and increasing the number of girls in school. USAID will pursue successful efforts in HIV/AIDS prevention, family planning and child survival, and launch new initiatives in natural resources management, malaria and tuberculosis control, and support for peace in the Casamance.
Activity Data Sheets
- 685-001, Sustainable Increases in Private Sector Income-Generating Activities in Selected Sectors
- 685-002, More Effective, Democratic, and Accountable Local Management of Services and Resources in Target Areas
- 685-003, Increased and Sustainable Use of Reproductive Health (Child Survival, Maternal Health, Family Planning, and Sexually Transmitted Infections/AIDS) Services in the Context of Decentralization in Targeted Areas
- 685-008, Special Objective Grant - Increased Girls' Access and Retention in Targeted Primary and Vocational Schools: The Education for Development and Democracy Initiative (EDDI/Senegal)
- 685-009, Improved Enabling Conditions for Peace via Economic, Social and Political Development
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Last Updated on: May 29, 2002 |
