SENEGAL

COUNTRY OVERVIEW

LOCATION AND SIZE.

A relatively small country located in West Africa, Senegal has a total area of 196,190 square kilometers (75,748 square miles), making it slightly smaller than the state of South Dakota. Water composes 4,190 square kilometers (1,618 square miles) of this area, while the coastline, which borders the North Atlantic Ocean, stretches for 531 kilometers (330 miles). Senegal is bordered to the north by Mauritania, to the east by the Republic of Mali, to the south by Guinea and Guinea-Bissau, and to the west by the Atlantic Ocean. The country of Gambia juts out below the central part of the Senegalese coast, creating a finger-like enclave that penetrates deep into Senegal. Dakar, the capital of Senegal, is located on the northern coast.

POPULATION.

In July 2000 the population of Senegal was estimated at 9,987,494. The growth rate was estimated at 2.94 percent per year, with a birth rate of 37.94 births per 1,000 people, and a death rate of 8.57 deaths per 1,000 people. The population of Senegal is young, with 45 percent under 14 years of age, 52 percent between the ages of 15 and 64, and only 3 percent above 65. A young population can benefit the economy because there are fewer elderly people to care for. Yet it creates pressure on the economy to continually expand to create new employment opportunities for new entrants to the labor force. In 2000, the World Bank stated that 125,000 people were expected to join the Senegalese labor force every year, creating a major impediment to the country's developmental efforts. Therefore, the Senegalese government has adopted a population control policy designed to limit the birthrate of Senegalese women. The importance of reducing Senegal's high fertility (5.21 children born per woman) will be a difficult challenge for a country that is socially conservative and resistant to using birth control.

Like many African countries, the people of Senegal are ethnically diverse. Of the many ethnic groups that make up the Senegalese population, 43.3 percent are Wolof, 23.8 percent Pular, 14.7 percent Jola, 3 percent Mandinka, 1.1 percent Soninke, and 1 percent European and Lebanese. Several smaller ethnic groups compose the remaining 9.4 percent of the population. The country is mostly Muslim, with 92 percent of the population followers of Islam. Followers of several indigenous religions constitute about 6 percent of the population, while the remaining 2 percent are Christian, mostly Roman Catholic. French is the official language of the country, though many people speak indigenous languages such as Wolof, Pulaar, Jola, or Mandinka.

OVERVIEW OF ECONOMY

Throughout the latter part of the 19th century, the area that now comprises the country of Senegal, along with several other regions in West Africa, came under the colonial domination of France. As a French colony until 1960, Senegal based its economy on the exportation of peanuts. Though the dominance of the peanut industry led to a monocultural economy, the administrative apparatus constructed by the French created a demand for a locally educated elite to occupy these positions. The national elite that developed, and which has identified with French history and culture, took control of Senegal after independence in 1960.

Though Senegal has remained dependent on its peanut exports, the economy has diversified since independence. In the late 1960s and 1970s the state contributed to economic diversification by establishing public enterprises to fuel industrial growth. By 1974 there were 87 such enterprises but the government's emphasis on industry brought bias against the agricultural sector. The state controlled the purchasing of all agricultural produce to feed the masses of people flocking from rural to urban areas in search of employment. Under this state-controlled system, peasant farmers were paid for their produce at prices lower than its real worth.

In the late 1970s, the prices paid on the international market by importers of peanuts and phosphate increased, helping to improve the situation of the peasants. Phosphate was Senegal's second most important export. The prosperity that accompanied the elevation in international prices for Senegal's major exports was short-lived, however. Deterioration in the world price of peanuts, along with an increase in world prices for oil, a resource that Senegal imported heavily, led to an economic crisis in 1978.

By the early 1980s, Senegal was undergoing a first wave of reforms of structural adjustment as a condition of receiving badly needed loans from both the International Monetary Fund (IMF) and the World Bank (WB). Structural adjustment, as the name implies, meant that Senegal was obliged to change certain "structures" within its economy, which the IMF and the WB viewed as inefficient to economic prosperity. The state was criticized for playing too great a role in the economy, creating corrupt enterprises (involving bribery in return for contracts) that drained state funding.

Many of Senegal's major exports, including peanuts, cotton, and fish, come from the agricultural sector. The modern, or non-agricultural, sector, which includes chemical industries, phosphates, petroleum refining, manufacturing, and tourism, is concentrated in Dakar and along the coastal belt. Senegal imports foods, beverages, capital goods, consumer goods, and unrefined petroleum products (such as crude oil). Because of historical ties between the 2 countries, France remains Senegal's largest trading partner.

Senegal has a huge trade deficit. In 2000 export revenue equaled US$959 million, while the costs of imports totaled US__BODY__.3 billion. The country depends heavily on foreign assistance, which represented about 42.8 percent of the government's budget in 1994. Besides France, the European Union (EU) and Japan are major donor countries. The United States Agency for International Development (USAID) provides about US$30 million annually in assistance. Senegal has borrowed heavily, both from international financial institutions such as the WB and the IMF, and from commercial banks. In 1998 the country's debt amounted to US$3.4 billion.

Unemployment has been a long-standing economic problem for the people of Senegal. Though figures vary, several official estimates during the 1980s placed the unemployment rate between 20 and 30 percent. The CIA World Fact Book estimates that about 40 percent of all urban youth are unemployed. This situation has contributed to deep-seated urban problems such as juvenile delinquency and drug addiction.

POLITICS, GOVERNMENT, AND TAXATION

Senegal is a democracy where people can vote in elections at age 18. They elect a president every 7 years as the head of state who, in turn, appoints a prime minister to head a government. The Council of Ministers, or cabinet, is appointed by the prime minister in consultation with the president. The unicameral legislature, the National Assembly, has 140 members who serve a 5-year term. The judiciary has 3 parts: the Constitutional Court, the Court of Appeal, and the Council of State. The legal systems are based on French civil laws and are in need of strengthening as an institution. There is respect in both theory and practice for civil liberties, including freedom of speech, press, association, movement, and democratic electoral procedures. The military, on which the state spent US$68 million in 1997, includes an army, airforce, navy, and a national security police force that is non-political and highly professional.

Senegal is recognized as one of the most democratic and politically stable countries on the continent of Africa. Unlike many other African states, Senegal has never experienced revolution or a military coup, yet, as Frederic C. Schaffer argues in his book Democracy in Translation: Understanding Politics in an Unfamiliar Culture, Senegal's democracy is imperfect. Since its independence, a single-party rule has dominated, and the government has been accused of being corrupt and authoritarian. Furthermore, discontent in the rural Casamance region has led to an ongoing internal rebellion by the Movement of Democratic Forces of the Casamance (MFDC). The MFDC represents forces in the Casamance who feel marginalized and neglected by government policies.

After Senegal gained independence in 1960, the Senegalese government was headed by the Socialist Party (PS) until the presidential elections of March 2000. The current president, Abdoulaye Wade, represents the Democratic Party, though the Socialist Party still dominates the National Assembly. The Senegalese Socialist Party promotes a mixed economy in which both the market and the state play significant roles, unlike other socialist parties in the developing world that adhere to the communist ideals of complete state control of the economy. Before the 1980s, the PS insisted on a much greater economic role for the state, but as the Senegalese economy has become more liberalized, support for state control has diminished.

The WB and the IMF have made demands on Senegal to liberalize its economy in return for loans they have granted since the 1980s. They argue that state controls in the economy have proved inefficient because of the inability of parastatals (state-owned enterprises) to compete internationally with their privately-owned foreign counterparts. Many such enterprises have been privatized, although the state still dominates the telecommunications, transport, mining, and electric power industries. The state remains the country's largest employer and consumer.

While the Senegalese Democratic Party (PDS) makes up the largest opposition party, there are many other political parties, 26 in all, representing ideologies across the political landscape. According to the U.S. State Department Country Commercial Guide, opposition parties are personality-driven, relying on the charisma of their leaders rather than concrete ideas. Most parties differ little from the ruling PS about economic matters.

Taxation is the chief source of government revenue. In 1997 92.8 percent of revenue came from taxes, broken down as follows: 28.1 percent from income and property tax, 36.7 from taxes on goods and services, 25.2 percent from import tax, and 9.1 percent from taxes on petroleum products. Personal income tax is progressive, meaning those who earn more money must pay a higher percentage of tax than those who make less money. There are 10 tax brackets, or categories of taxable income. Those who make less than 600,000 CFA francs are not obligated to pay income tax.

Because of economic contraction in the early 1990s, the inability of many firms to compete and survive in a freer market led to a shrinking tax base for the government. Government was forced to rely on strict revenue measures, such as heavy taxation on petroleum imports. According to the World Bank, this caused harmful results to companies that depend on petroleum imports, forcing many to close or join the informal economy.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

For a developing nation, Senegal has a well organized infrastructure compared to most other African countries. The World Bank estimated that in 1995 there were 507 kilometers (315 miles) of paved road per million people. The CIA World Fact Book 2001 notes that there are 14,576 kilometers (9,058 miles) of highway, 4,271 kilometers (2,653 miles) of which are paved. Although the railway system is somewhat antiquated, it carries more than 3 million tons of cargo per year. The railway network, which extends across 906 kilometers (563 miles), links the major cities to Dakar and provides services between Senegal and Mali. The port in Dakar is one of the few African ports with a floating dry dock, a container terminal, and container service. Despite the wide range of services, port charges are high and service is inefficient. There are also ports and harbors in Kaolack, Matam, Podor, Richard Toll, Saint-Louis, and Ziguinchor.

According to the U.S. Department of State Country Commercial Guide, the airport at Dakar is one of the principal international airports in West Africa, handling a variety of aircraft on its 2 runways. The airport serves more than 24 international airlines, handling 1.5 million passengers per year and moving more than 20,000 metric tons of international airfreight. There are direct flights to Europe and North America, along with frequent flights to several African countries. Secondary airports are located in the regions of Saint-Louis, Tambacounda, and Ziguinchor. In total, there were 20 airports in 1999.

The parastatal Senelec supplies electricity in Senegal, though the electric power market is open to foreign investment. France has invested heavily in this sector of the economy. Senegal produces 1.2 billion kilowatt hours (kWh) of electricity per year, all of which is created domestically by fossil fuel. Therefore, the country has no need to import electricity from abroad. To meet the rapidly growing demand for increased capacity, Senelec is actively seeking upgrades to its existing power-generating capabilities.

The telecommunications sector is dominated by Sonatel, another parastatal. In 1996 there were only 11 phone lines per 1000 people, compared to 640 phone lines per 1000 people in the United States. Access to the Internet is severely restricted. In 1996 there were 0.31 Internet hosts per 1000 people, but in the United States there were 442.11 Internet hosts per 1000 people. Sonatel hopes to modernize the telecommunications industry by digitizing its current network and installing a fiber optic network and cellular telephone system. As in the case of the electricity market, France has also invested heavily in telecommunications. The competitive advantage of French firms in this sector relates, in part, to concessional funding (funds are granted in exchange for specific contracts) given by the French government to the Senegalese government for the modernization of the telecommunications network.

ECONOMIC SECTORS

Senegal's economic sectors reflect the traditional nature of the society. Since most Senegalese live in the countryside, the agriculture sector provides employment for most of the population. Moreover, agricultural products comprise Senegal's most important exports. Because

these products are generally worth less than manufactured goods or services, the industrial and service sectors generate a larger percentage of gross domestic product (GDP) than the agricultural sector. While agriculture provided 19 percent of GDP in 1997, the industrial sector and the services sector provided 20 percent and 61 percent, respectively, in 1997.

AGRICULTURE

The agricultural sector occupies the largest percentage of the population, employing 60 percent of the Senegalese labor force. The sector includes farming, livestock husbandry, fishing, and forestry. It accounts for about 19 percent of the country's GDP. The most important agricultural activity in Senegal is peanut production. Other important primary products produced for the domestic market include millet, corn, sorghum, rice, cotton, tomatoes, green vegetables, cattle, poultry, pigs, and fish. Besides peanuts, primary exports include fish and cotton.

With agricultural production playing such a dominant role in the Senegalese economy, the country is susceptible to destructive natural forces such as declining rainfall and desertification. Countries that rely heavily on agriculture are similarly vulnerable, but the problems are particularly severe in Senegal, a semi-arid country in which rainfall can vary considerably from year to year. Moreover, only 12 percent of all land is arable (capable of supporting agriculture). The prices of agricultural commodities in the international market are similarly dependent upon natural forces. If there were to be heavy rainfall in all peanut-producing countries, the international supply of peanuts would be high, leading to a decrease in the international price for peanuts because of the abundant supply. Since it is impossible to predict the situation in any given year, fluctuating prices are a constant threat and source of insecurity for agricultural nations like Senegal.

Groundnut production takes up 42 percent of all cultivated land, providing income for more than 1 million people. Each year, Senegal produces thousands of metric tons of peanuts, with output depending on rainfall. In 1990, about 703,000 metric tons were produced, while output in 1997 was much less at 545,000 metric tons. Senegalese research authorities found oscillating patterns of rainfall over a 40-year period on the groundnut basin. In 1989 the level of rainfall was 7,785 millimeters (30.9 inches), while in 1999 it was only 507 millimeters (20 inches). Furthermore, the sector continues to suffer from a shrinking market, with world demand for peanuts showing a steady decline. Production is also being affected by natural environmental factors, such as soil depletion. Exports of peanut products provided US$20 million in income in 1994.

The Senegalese government has made efforts to reduce dependence on groundnuts by diversifying cash and food crops, by expanding cotton, rice, sugar, and market-garden produce. While the output of each crop has risen sharply over the past 20 years, the annual average output of rice (150,000 tons) fails to meet even domestic demand, which runs at about 500,000 tons. Since rice is the major staple of the urban population, Senegal is forced to import rice from abroad, mostly from the Far East. Several small and medium-sized development projects, supported by foreign aid, were adopted throughout the 1990s to increase the area of irrigated land that is needed to grow rice. The traditional food sector, which consists of millet, sorghum and maize, has increased its overall output since the mid-1970s, though fluctuations because of the level of rainfall are the norm.

FISHING.

The fishing industry is one of the most important areas of primary sector activity in Senegal. In 1994 the industry accounted for 8.5 percent of the GDP, employed 200,000 persons, provided 27.3 percent of total exports, and earned US$240 million. Favorable world prices and competitive pricing because of the 1994 currency devaluation boosted fishing exports. The output of fishing, or "fish-catch," reached 486,800 metric tons in 1997. This figure demonstrates the exceptional growth of the fishing industry in recent years, considering that total output for 1991 was only 387,800 metric tons. According to the U.S. State Department Country Commercial Guide, the development of the fishing sector is hampered by an aging and outmoded fleet, the threat of over-fishing (thereby depleting supply), and stiff competition from South Asia in international fish markets.

Livestock and forestry are less important contributors to the country's GDP. Forestry has shown little growth over the years, comprising only 0.8 percent of the GDP in 1991 and marginally less in 1998 (0.6 percent of the GDP). Livestock has figured more prominently. In 1991 it included 6.9 percent of the GDP and 7.0 percent in 1998.

INDUSTRY

The secondary economic sector, that is, the sector that converts primary goods into finished products and is more commonly referred to as industry, accounted for 20 percent of Senegal's GDP in 1997. The 2 major industrial activities are mining and manufacturing.

MINING.

Mining output in Senegal is primarily calcium phosphates. In 1994 phosphate and phosphate products accounted for 19 percent of total merchandise export earnings, producing US$162 million in export revenue. While Europe has traditionally been the major importer of Senegalese phosphates, the U.S. State Department Country Commercial Guide notes that new markets in Asia and Africa have recently developed. Despite its importance as an exporting industry, however, phosphates have not played a large role domestically. Phosphate mining accounts for less than 2 percent of Senegal's GDP. The industry provides important jobs, but only about 2,000 are available. Production of phosphates has also decreased over the past several years. In 1991 phosphate production reached 1,546 metric tons, whereas figures for 1998 were much less at 1,087 metric tons. This reflects diminishing reserves of phosphates and illustrates how environmental or geographical factors can influence a country's economy.

MANUFACTURING.

Manufacturing is an important component of the secondary sector, accounting for 12.5 percent of GDP. Senegalese industries process a range of commodities that includes food, textiles, wood products, chemicals, construction materials, machinery, equipment, electricity, and water. Food ranks as the most important economic contributor, accounting for 43.1 percent of all industrial manufacturing output. Food production consists of fish canning, oil milling, and sugar refining. Textiles, along with clothing and leather, account for 12.3 percent of all manufacturing output. Senegal's textile industry is the most important in black francophone (French-speaking) Africa, with 4 cotton-ginning mills and spinning, weaving, dyeing, and printing plants. Chemical industries are the third largest contributor and account for 11.4 percent of output. Senegal produces refined petroleum, fertilizers, pesticides, plastic, and rubber materials. Industrial production grew 7 percent in 1998, indicating that industrial manufacturing offers important prospects for future economic growth.

SERVICES

The tertiary or service sector is the most productive sector in the Senegalese economy. It accounted for 61 percent of the GDP in 1997. Commerce, which is centered in Dakar and other urban areas, is the largest component of tertiary activity. In 1991 commerce made up 22.7 percent of the GDP, though the contribution diminished slightly by 1998, accounting for 21.1 percent of the GDP. Commerce included the buying and selling of commodities and services, and banking and finance.

TOURISM

. Known for its mild climate, multiple beaches, and great sport fishing, Senegal has long been a tourist destination for European travelers, particularly the French. The high season runs from December to February, when Senegalese weather is most inviting. In recent years, the tourist industry has skyrocketed. In 1991 about 269,300 tourists visited Senegal, contributing 37.9 billion CFA francs to the economy. By 1997 the number of visitors reached 341,500 and contributed 80 billion CFA francs to the economy. Tourism is now one of Senegal's major sources of foreign currency earnings, which are vital for meeting the country's import bills. Although most tourists are French, there has been a rise in vacationers from other European countries and from North America. Most of the impetus towards growth in the tourism industry has come from the private sector. The government has hardly invested in tourism over the past 10 years and sold off many state-owned hotels to the private sector.

FINANCIAL SERVICES.

As a member of the West African Economic and Monetary Union (UEMOA), Senegal shares its currency, the CFA franc, with 6 other member countries: Benin, Togo, Mali, Côte d'Ivoire, Burkina Faso, and Niger. The CFA franc is issued by the West African Central Bank. The commercial banking sector has a long history in Senegal, which has 8 banks, all of them established prior to the 1990s. The largest banks are French, reflecting the historical link between the French and Senegalese economies. The Société Generale de Banques du Senegal (SGBS), the largest commercial bank, with total deposits and borrowing equaling 152,099 million CFA francs, is an affiliate of the Société Generale de Banques of France. The Senegalese government does not own any shares in the bank. The other commercial banks are owned by private and foreign (French) shareholders, the major exception being the Caisse Nationale de Crédit Agricole du Senegal.

RETAIL.

Besides a few large French-owned import-export firms that are involved in retailing, there are many competitive small-scale traders specializing in the wholesale and retail distribution of fabrics and consumer goods. In the past, Lebanese merchants were the interface between French trading companies and the Senegalese population. They are gradually being replaced by Senegalese merchants selling popular consumer goods, such as textiles and electronics. There are also a limited number of larger retail stores, such as supermarkets, which deal in imported goods. Since the currency devaluation in 1994, however, these stores are threatened by the high costs of imports.

Because of the few employment opportunities offered in the formal economy, many Senegalese have turned to the informal sector to survive. The informal sector remains unregulated and untaxed because it operates outside the administrative framework of the government. The sector's activities are not criminal, but "extra-legal," meaning they are legitimate and not controlled. Informal activities range from selling fruit on street-corners to selling sophisticated high-tech stereo equipment. There are about 30,000 small businesses in the informal sector, employing about 57,000 persons, according to 1995 estimates. Sandaga, a sprawling unregulated market in the heart of Dakar, is the capital's principal distribution center for manufactured goods such as textiles, footwear, cosmetics, food, and electronic equipment.

INTERNATIONAL TRADE

Senegal suffers from a trade deficit. In 1991 the value of the country's exports equaled 79.6 billion CFA francs, although the value of imports equaled 100 billion CFA francs. In 1997 the value of exports grew far greater, equaling 177.8 billion CFA francs. Yet, the value of imports continued to outpace exports, growing to about 226.4 billion CFA francs. In 2000, the trade deficit reached US$341 million on exports of US__BODY__.3 billion and imports of US$959 million.

Senegal relies heavily on primary commodities such as groundnut products, phosphates, fish, and cotton for its export revenue. Though France remains Senegal's largest trading partner, its share of Senegal's exports has declined steadily over the past decade. In 1990, about 34.4 percent of Senegal's exports went to France. By 1999, however, this figure had declined to 17 percent. Other important trading partners include India (17 percent), Italy (12 percent), Spain (6 percent), Mali (6 percent), and Côte d'Ivoire (4 percent). Over the years the amount of trade to the major industrialized European countries has dropped, shifting instead to Asian or other African countries. A recent publication by the United Nations Committee on Trade and Development (UNCTAD 2000) indicates that the industrial countries are importing less from the African continent. UNCTAD attributes this decline to the inability of African countries to compete with Latin American and Asian countries for the markets of the developed world. Senegal now exports predominantly to other developing countries. Many of these countries are African, the most significant of which are Cameroon, Côte d'Ivoire, Mali, Mauritania, and Nigeria. Developing countries purchased 67.6 percent of Senegal's exports in 1998 (January-June). This figure doubled over an 8-year period from 1990, when developing countries only accounted for 34.3 percent of all Senegalese imports.

Trade between Senegal and its West African neighbors has been facilitated through 2 regional trading organizations: the Economic Community of West African States (ECOWAS), which consists of 16 member-states, and the West African Economic and Monetary Union (UEMOA). The latter is a more integrated regional trading arrangement so that the 7 francophone states that share the same currency enjoy closer economic relationships and cooperation. UNCTAD suggests that most of the recent increase in trade between West African countries can be attributed to increased demand for primary commodities by the larger countries in the region.

Although Senegal exports primarily to developing countries, it continues to import most of its foreign goods from industrialized nations. France provided a majority of imports in 1999, with 30 percent. Other major importers are Nigeria (7 percent), Italy (6 percent), Thailand (5 percent), Germany (4 percent), and the United States (4 percent). Senegal imports from industrial countries because it requires many capital and consumer goods that it cannot produce itself. Imported capital goods are important to manufacturing industries, while luxury consumer goods are in high demand by Senegal's wealthy elite. Since neighboring African countries lack the modern industrialized economies necessary to produce high quality capital and consumer goods, Senegal must look to the developed world for such commodities.

MONEY

Throughout the 1980s and early 1990s, Senegal suffered extreme economic difficulties characterized by sustained recession and under-utilized capacity (which means that the working age population was not used to its full potential). One of the symptoms of the troubled Senegalese economy was a chronic balance of payments deficit. The WB and the IMF, therefore, contested that Senegal should devalue its currency, which would lower the price of its exports and make its products more attractive to the international markets. Devaluation would make the Senegalese economy more competitive and help to rectify the balance of payments problem.

On the eve of the devaluation in January 1994, the Senegalese currency, the Communauté Financiére Africaine franc (CFAF), was valued at 50 CFA francs to 1 French franc. Devaluation converted this figure to 100 CFA francs to 1 French franc. Since 1 January 1999, the CFAF has been fixed to the euro (the currency of the EU countries) at a rate of 655.957 CFA francs per euro, a rate which reflects the devaluation of 1994. This connection causes the value of the CFA franc to adjust to the value of the euro in international foreign exchange markets. In January 2000 the CFA franc-dollar exchange was 647.25 CFA francs to 1 U.S. dollar.

Although WB contends that devaluation stimulated growth in the export-oriented sectors of the Senegalese economy, and in the economy as a whole, it has also brought negative results. Devaluing the exchange rate increases the amount of currency needed to pay for imports. For the urban poor, who are dependent upon imported food, the cost of food has escalated. Since the urban poor are already malnourished, devaluation has been detrimental to the nation's well-being. Moreover, Senegal continues to run a balance of payments deficit, despite its more competitive position in the international market.

POVERTY AND WEALTH

Like many African countries, poverty is rampant in Senegal. Also, GDP per capita has actually declined over the past 25 years. The GDP per capita in 1975 was US$609 and by 1998 it had fallen to US$581 (at 1995 U.S. dollar exchange rates). In the same year, the GDP per capita in the United States was US$29,683. The United Nations Development Programme (UNDP), which classifies countries according to their human development index score (HDI), ranked Senegal 155th out of 174 countries in 1998, while the United States ranked third. The HDI is a composite index that examines specific figures on education, health, and standard of living. Senegal's low ranking reflects the country's low development in these areas, consistent with its overall poverty.

The people of Senegal, like many of the poor across the world, spend much of their money on getting the necessities of life, such as food. The UNDP estimates that food averages 52 percent of Senegalese household consumption compared to the United States, where food only accounts for 8 percent of household consumption. For this reason, the Senegalese are vulnerable to increases in the price of basic foods. Because food is the highest priority, little money is left over to pay for other necessities such as clothes and shelter. The poor make up most of the urban population and live in run-down areas or makeshift shanty towns thrown together on land that is not paid for. Saving to escape the conditions of poverty is not an option, since the poor must spend all their money to survive.

The poverty of most of the Senegalese people stands in marked contrast to the wealth of the country's small elite. After independence, the elite comprised a few Senegalese businessmen in the private sector, influential politicians, government ministers, university professors, and political cadres (in this case, members of the Socialist Party) who worked for parastatals. As Sheldon Gellar notes in his book Senegal: An African Nation Between Islam and the West, the elite group is predominantly male, urban, highly educated, politically connected, and able to afford European-style living standards. Perks include the ownership of cars, modern appliances, nice villas or apartments, the provision of good schooling and higher education for their children, and opportunities to travel abroad. In the rural areas, Muslim clerics, known as marabouts, make up a wealthy agricultural elite. Gellar also notes that structural adjustment plans have increased the inequality between the Senegalese elite and the masses. While the standard of living for the poor has declined, the nation's wealthy continue to prosper.

WORKING CONDITIONS

Senegal maintains a comprehensive labor code that defines legal regulations about workers' rights and employer obligations. According to the U.S. Department of State Country Report on Human Rights in Senegal (1998), most Senegalese workers fall outside the laws of the labor code because they work in the informal or agricultural sectors. The law only applies to the non-agricultural formal sector. Moreover, certain regulations, such as those relating to safety standards in the work place, are neither adequately monitored nor enforced by the government. Because most workers are unskilled and uneducated and there are few employment opportunities in the economy, workers usually find themselves unable to contest violations of labor code standards. Thus, working conditions are often sub-standard.

Under the Senegalese constitution, the minimum age for employment is 16 years for apprenticeships and 18 years for all other activities. The government has strictly enforced this article of the constitution in the formal sector, though child labor is common in the agriculture and informal sectors. Most families in these sectors are so disadvantaged that all family members must work, regardless of age.

After independence, Senegal ratified the International Labor Convention No. 87, regarding freedom of association and protection of the right to organize. Senegal also ratified convention No. 48, which provides rights to organize and bargain collectively. Senegal has a long history of organized trade unions. Nearly all workers in the industrial sector of the economy are unionized. The principal labor unions are the National Confederation of Senegalese Workers (CNTS) and the National Union of Autonomous Labor Organizations of Senegal (UNSAS). The CNTS is an umbrella union that organizes individual unions into a collective framework. The PS established it in 1968 after the National Union of Senegalese Workers was dissolved due to its opposition to government policies. Under President Leopold Senghor's program of "responsible participation," CNTS leaders were given important party and government posts. Despite being allied with the PS, the union has often disagreed with government policies. In 1986, changes in the labor code provided more room for employers to lay off workers and caused a great deal of agitation from CNTS supporters.

In recent years, trade unions and political persuasions united to protest government policies. In September 1993, the Intersyndicale (a broad trade union coalition headed by the CNTS that also includes independent unions and those close to the major opposition parties) led a one-day general strike to protest the government's decision to cut state employee salaries by 15 percent. The decision to cut the salaries was made in compliance with IMF and WB demands for greater cutbacks in government spending. UNSAS, the second most important union in the coalition, broke away from Intersyndicale after the organization decided to negotiate with the government following the general strike. UNSAS has supported a less compromising stance towards unpopular government policies, making it difficult for the union to work with its less militant counterparts.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

4TH CENTURY A.D. The first centralized state in what becomes the Senegal region, the Tekrur kingdom, develops in the Senegal River valley.

1040. Zenaga Berbers from the north establish an Islamic monastery, probably along the Senegal River. The monastery subsequently became the base of the Almoravids, who converted many of the region's people to Islam.

13TH CENTURY. The Tekrur kingdom falls under the dominance of the Mali Empire, which is centered to the east. During the same period, the Jolof kingdom arises on the northwestern savanna, conquering the Wolof inhabitants. Thereafter, various Muslim states and kingdoms rise and fall in the northern grasslands and central savannas of present-day Senegal, contributing to a tradition of centralized states and rigid social hierarchies.

1444. Portuguese navigators become the first Europeans known to visit the area of present-day Senegal and Gambia. Until the end of the 16th century, the Senegambian region is the most important source of slaves for the transatlantic slave trade.

1659. The French establish a slave-trading post on the island of Saint-Louis at the mouth of the Senegal River, while the British establish a base around the Gambia River. These divisions later result in the independent nations of English-speaking Gambia and French-speaking Senegal.

1840s. Peanuts become the major trade commodity of interest for the French operating in Senegambia. In the coming decades France conquers the Wolof and Serer states in order to exert greater control over the peanut trade.

1886. With the decisive conquest of Cayor State, the French more or less control all of present-day Senegal, with the exception of the Casamance, which was not fully subjugated until the 1920s.

1890-1919. Beginning in the 1890s, a Senegalese urban elite that identifies with French culture and customs develops. In 1914, these elites are given the vote, and the urban areas in Senegal are allocated 1 seat in the French National Assembly. Blaise Diagne becomes the first African deputy. In 1919, he founds the Republican Socialist Party, the first western-style political party in the region.

1929. Lamine Gueye, Diagne's major political opponent, founds the Senegalese Socialist Party, with links to the French Socialist Party.

1930s. The decline in global demand for peanuts as a result of the global economic depression leads to increased hardship and poverty in Senegal.

1945. The French government extends the vote to rural Senegal, which gains a seat in the French assembly alongside that of the urban areas. Gueye wins the election for the urban seat while his protégé, Leopold Sedar Senghor, wins the rural seat. Senghor later breaks with the socialists and founds his own party, the Senegalese Democratic Bloc (BDS).

1956-59. France permits limited self-government within its African colonies. In 1957, the socialists merge with the BDS to form the Senegalese Progressive Union (UPS), which subsequently wins a strong majority in the 1959 national elections. Popular demands for complete independence from France increase, and the UPS negotiates with the French government for independence as part of a Mali Federation.

1960. On 4 April, the Mali Federation, which combines present-day Senegal and Mali, becomes independent, but the federation is short-lived. Rivalry between Senegal and Mali soon leads to its dissolution, and in August 1960, Senegal becomes an independent state with Leopold Senghor as president.

1962. A power struggle between President Senghor and Prime Minister Mamadou Dia leads to the latter's imprisonment and the banning of opposition parties.

1968. Lack of political debate leads to student protests and union strikes, which are routinely crushed by the army.

1970-75. The rapid rise in the cost of imported oil, combined with drought in the Sahel region, creates an economic crisis.

1973. The West African Economic Community (CEAO) of 7 francophone states is established to facilitate trade between member states.

1975. Senegal joins the Economic Community of West African States (ECOWAS), an organization of 16 West African states designed to facilitate trade and development between members.

1976. The government releases Dia from prison, and a new constitution permits 3 political parties.

1977. Senghor wins the first contested presidential elections since 1963.

1980. As Senghor's popularity declines due to economic stagnation, the president announces his resignation.

1981. Senghor's protégé, Abdou Diouf, takes office. Under the auspices of the World Bank and the International Monetary Fund, Diouf gradually replaces the Socialist Party's ideology of state-led "African Socialism" with a free-market oriented policy. Senegal and Gambia proclaim a regional alliance, the Senegambian Confederation.

1984. Discontent in the rural Casamance region of Senegal leads to the beginning of an internal rebellion by the Movement of Democratic Forces of the Casamance (MFDC).

1989. The Senegambian Confederation is disbanded due to Gambian fears of absorption into Senegal.

1994. The West African Economic and Monetary Union (UEMOA) is established to replace the CEAO. The CFA franc, the common currency of UEMOA, is devalued by nearly 100 percent.

2000. Abdoulaye Wade, from the Democratic Party, is elected president, making him the country's first non-socialist president since the country gained independence in 1960.

FUTURE TRENDS

Like many African countries and developing nations, Senegal enters the 21st century with deep-seated economic difficulties. Several economic plans and strategies that have been pursued by the Senegalese government since independence have failed to generate sustained economic development. Mass unemployment, continued dependence on agricultural exportation for foreign revenue, a widening trade deficit, and chronic poverty continue to characterize the Senegalese economic situation. The recent emphasis on privatization and free-market competition has thus far failed to break the pattern. Structural adjustment plans have helped to contain macro-economic instability (in the form of inflation), but they have not improved the impoverished conditions of the masses. Structural adjustment and the emphasis on the free-market has created greater inequality and increased hardship for the poor.

However, the situation in Senegal is not entirely bleak. On the political front, the victory of a Democratic Party candidate in the 2000 presidential elections indicated that Senegal might be progressing toward a more open and less authoritarian democracy. Economically, the various regional integration schemes developed in West Africa may provide an impetus for Senegal and other West African nations to experience economic growth. By providing preferential access to member states, such regional schemes can cushion West African nations against competition from the more competitive outside world.

DEPENDENCIES

Senegal has no territories or colonies.

BIBLIOGRAPHY

Economist Intelligence Unit. Country Profile: Senegal. London: Economist Intelligence Unit, 2001.

Gellar, Sheldon. Senegal: An African Nation between Islam and the West. Boulder: Westview Press, 1995.

International Monetary Fund. "Senegal and the IMF." International Monetary Fund. <http://www.imf.org>. Accessed January 2001.

Schaffer, Frederic C. Democracy in Translation: Understanding Politics in an Unfamiliar Culture. Ithaca: Cornell University Press, 1998.

Senegal Tourism Office. <http://www.senegal-tourism.com>.Accessed October 2001.

UNCTAD. African Development in a Comparative Perspective .New York: Africa World Press, Inc. 2000.

United Nations. Human Development Report 2000. New York:Oxford University Press, 2000.

U.S. Central Intelligence Agency. World Factbook 2001. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed September 2001.

U.S. Department of State. FY 2000 Country Commercial Guide: Senegal. <http://www.state.gov/www/about_state/business/com_guides/2000/africa/senegal00.html>. Accessed October 2001.

World Bank Group. "Senegal." World Bank Group. <http://www.worldbank.org>. Accessed October 2001.

—Neil Burron

CAPITAL:

Dakar.

MONETARY UNIT:

Communauté Financiére Africaine franc (CFA Fr). There are coins of 1, 2, 5, 10, 25, 50, 100, and 500 CFA francs, and notes of 50, 100, 500, 1,000, 5,000, and 10,000 CFA francs.

CHIEF EXPORTS:

Fish, groundnuts (peanuts), petroleum products, phosphates, cotton.

CHIEF IMPORTS:

Foods and beverages, consumer goods, capital goods, petroleum products.

GROSS DOMESTIC PRODUCT:

US$16 billion (purchasing power parity, 2000 est.).

BALANCE OF TRADE:

Exports: US$959 million (f.o.b., 2000). Imports: US__BODY__.2 billion (f.o.b.,2000).