Abstract
This chapter analyzes Senegal’s economic and social performance over the period between 1980 and 2014, as well as recent developments since the government introduced its growth strategy, “The Emerging Senegal Plan” (ESP) in 2015. The chapter diagnoses the country’s disequilibrium under the IMF and the World Bank programs, and seeks to clarify why Senegal remained under a prolonged adjustment program. We also look to assess the failure of these programs that justify the need for finding an alternative to the existing conventional economic policy model. The new paradigm to be developed is intended to help authorities achieve sustainable economic growth, to improve human development and ultimately social justice.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
In 2011, the non-agricultural informal sector concentrated 48.8% of the active population and its share in the GDP and produced 41.6% of the GDP (Government of Senegal/ANDS 2014).
- 2.
West African Economic and Monetary Union (WAEMU), Economic Community of West African States (ECOWAS).
- 3.
For example Senegal is signatory of international agreements for preferential access to these markets, the ‘Everything But Arms’ initiative from the Quad countries (Canada, the European Union, Japan and the United States), the African Growth and Opportunity Act (AGOA).
- 4.
Cf. Appendix E.
- 5.
The financial programming analysis is supplemented by a balance sheet approach (BSA) that focus on shocks to stocks of assets and liabilities, which can trigger large adjustments in capital flows (Ghosh et al. 2005).
- 6.
Base money (called also reserve money, high powered money) is defined from the Central Bank balance sheet as the sum of currency in circulation, banks’ deposits and ‘other’ deposits.
- 7.
Considering issues on the reforms of the institutional functioning of the IMF and its conditionality, Metinsoy (2019) argued that “We can speculate that a new monetary fund reflecting the changing realities of the international system’s power balance is a greater possibility than an IMF where the U.S. dominance and the Washington Consensus are replaced with a more egalitarian structure and a non-neoliberal macroeconomic philosophy”. See also, Reinhart and Trebesch (2016).
- 8.
In practice, if fiscal adjustment is needed, investments are treated in the same way as current expenditure with targets for budget cuts, irrespective of their impact on future growth potential.
- 9.
Many countries have adopted the Public-Private Partnership (PPP) approach in develo** their infrastructure. The World Bank and many other Development Banks are promoting the PPP mode of infrastructure construction. Senegal experienced Public–Private Partnership transactions in the water subsector (SDE in 1996), rail transport sector (TRANSRAIL in 2003), toll road Dakar-Diamniadio (SENAC SA in 2009, 2014). The Government of Senegal has put in place a legislative and institutional framework including Decree 2014/09 of February the 20th (amended by the Decree 2015-03 of February the 20th) on Partnership Agreements and other Institutions such Ministry in charge of Investment Promotion and Partnership, a national PPP Committee and a PPP Unit.
- 10.
World Bank, African Development Bank, Islamic Development Bank, and West African Development Bank.
- 11.
PCI involves no use of IMF resources. It is designed for countries seeking to demonstrate commitment to a reform agenda or to unlock and coordinate financing from other official creditors or private investors.
- 12.
Reinhart and Rogoff (2009) argued that all the financial crisis on the past have been debt crisis. Iqbal and Mirakhor (2017) underscored that a debt-based system is a risk transfer system. Financial and economic systems based on risk transfer are basically unstable and are prone to generate this chain of causation repeatedly: Fractional Reserve system → Credit → Debt → Leverage → Fragility → Crisis.
- 13.
It is worth to note the organization of a widely inclusive national conference “Les Assises Nationales du Senegal” which gathered, between June 1, 2008 and May 24, 2009, more than 140 representatives of political parties, of the civil society and various other independent personalities. The conclusions were signed by almost all the opposition leaders, including the current head of state, as a strong commitment to work towards effective citizen participation in the management of public affairs. However, the main document issued, the “Charter of Democratic Governance” were never adopted and implemented by the government so far.
References
Agenor, Pierre Richard. 2004. The Economics of Adjustment and Growth, 2nd ed. Cambridge, MA: Harvard University Press.
Diagne, Youssoupha Sakrya, Hamat Sy, and Dame Thiam. 2014. Efficience des dépenses publiques au Sénégal (Senegalese Government spending efficiency). Government of Senegal/DPEE Study Paper 28.
Dieye, Adama. 1996. La Compétitivité De L’économie Sénégalaise (The Competitiveness of the Senegalese Economy). University of Auvergne thesis, Clermont Ferrand, France.
Diop, Mouhamadou Bamba. 2012. Quels Secteurs Pour Quelle Croissance Au Sénégal (Which Sectors for Which Economic Growth IN Senegal). Government of Senegal/DPEE Study Paper 4.
Diop, Mouhamadou Bamba, and Abdoulaye Fame. 2007. Les sources des fluctuations économiques au Sénégal (Sources of economic fluctuations in Senegal). Government of Senegal/ DPEE Study Paper 4.
Diouf, Maurice Ngor, and Ndong, Benjamin. 2014. Real Effective Exchange Rate Changes and Trade Balance in Senegal: Twenty Years after CFA Franc Devaluation. 17th Annual Conference on Global Economic Analysis On: “New Challenges in Food Policy, Trade and Economy Vulnerability”. Dakar/ Senegal, June 18–20.
Estache, Antonio, and Rafael Muñoz. 2007. Building Sector Concerns into Macroeconomic Financial Programming: Lessons from Senegal and Uganda. World Bank Africa Region, Working Paper Series 108.
Everaert, Luc, Fernando Garcia-Pinto, and Ventura Jaume. 1990. A RMSM-X Model for Turkey. Country Economics Department. The World Bank, WPS 486.
Ghosh, Atish R., Charalambos Chritophides, Jun Il Kim, Laura Papi, Uma Ramakrishnan, Alun H. Thomas, and Juan Zalduendo. 2005. The Design of IMF-Supported Programs. IMF Occasional Paper, 241.
Government of Senegal/ Ministry of Economy and Finance. 2014. Emergent Senegal Plan 2014–2018. Government of Senegal.
Government of Senegal/ Ministry of Economy and Finance/Agence Nationale de la Statistique et de la Démographie. 2018. Population of Senegal 2017 Report. Government of Senegal.
Hannoun, Herve, and Peter Dittus. 2017. Revolution Required—The Ticking Time Bombs of the G7 Model. Independently published.
Homi, Kharas. 2008. Measuring the Cost of Aid Volatility. Wolfensohn Center for Development Working Paper, 3.
Hudson, John. 2015. Consequences of Aid Volatility for Macroeconomic Management and Aid Effectiveness. World Development 69: 62–74.
Imam, Patrick, and Kolerus Christina. 2013. Senegal: Financial Depth and Macro-Stability. IMF/African Department Series paper, 13/05.
International Monetary Fund. 2015. Structural Reforms and Macroeconomic Performance: Initial Considerations for the Fund. Washington, DC: IMF.
———. 2016. World Economic Outlook. IMF Data Mapper.
———. 2017. Senegal: Staff Report for the Article IV Consultation and Third Review Under the Policy Support Instrument-Press Release, and Staff Report. IMF Staff Country Reports 17 (1): 1.
———. 2020. Request for a Three-Year Policy Coordination, Instrument—Press Release; Staff Report; And Statement By The Executive Director For Senegal. IMF Country Report No. 20/11. Washington, DC.
Iqbal, Zamir, and Abbas Mirakhor. 2017. Ethical Dimensions of Islamic Finance. Theory and Practices. Cham: Palgrave Macmillan.
Islamicity Foundation. 2018. Annual Report on the Islamicity Indices Program. Report.
Issoufou, Salifou, Andrew Jewell, Alexi Kireyev, and Gaston Mpatswe. 2013. Senegal: Achieving High and Inclusive Growth While Preserving Fiscal Sustainability. Washington, DC: IMF.
Khan, Mohsin S., Peter J. Montiel, and Nadeem U. Haque. 1990. Adjustment with Growth: Relating the Analytical Approaches of the IMF and the World Bank. Journal of Development Economics 32: 155–179.
Kireyev, Alexei, and Ali Mansoor. 2015. Making Senegal a Hub for West Africa. Washington, DC: IMF African Department.
Lensink, Robert, and Morrisey Olivier. 2000. Aid Instability as a Measure of Uncertainty and the Positive Impact of Aid on Growth. Journal of Development Studies 36: 31–49.
Maurel, Matilde, and Majda Seghir. 2014. The Main Obstacles to Firms’ Growth in Senegal, Implications for the Long-Run. African Development Bank Working Paper, 208.
Mbaye, Samba, and Marialuz Moreno Badia. 2019. New Data on Global Debt. IMF Blog. https://blogs.imf.org/2019/01/02/new-data-on-global-debt/.
Metinsoy, Saliha. 2019. Unending Reform Attempts at the IMF: Organized Hypocrisy or Bricolage?
Mills, Cadman Atta, and Raja Nallari. 1992. Analytical Approaches to Stabilization and Adjustment Programs. World Bank Seminar Paper, 44, Washington, DC.
Minsky, Hyman P. 1986. Stabilizing an Unstable Economy, a Twentieth Century Fund Report. New Haven and London: Yale University Press.
———. 1992. The Financial Instability Hypothesis. Levy Economics Institute of Bard College Working Paper, 74.
Nowak, Wioletta. 2013. The World Bank Revised Minimum Standard Model: Concepts and limitations. Wroclaw economic revue, 19/2, University of Wroclaw.
Reinhart, Carmen M., and Kenneth S. Rogoff. 2009. The Aftermath of Financial Crisis. NBER Working Paper, 14656.
Reinhart, Carmen M., and Christoph Trebesch. 2016. The International Monetary Fund: 70 Years of Reinvention. Journal of Economic Perspectives 30 (1): 3–28.
Sy, Demba and Sy, Hamat. 2013. Causes of the Structural Deficit of the Senegal’s External Account (Les Causes du Déficit Structurel du Compte Courant du Sénégal). Government of Senegal /ANSD study.
Wolfson, M.H. 2002. Minsky’s Theory of Financial Crises in a Global Context. Journal of Economic Issues 36 (2): 393–399.
World Bank. 2016. Doing Business 2017/Senegal. The World Bank.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Dieye, A. (2020). Sustainability of the Senegal Socioeconomic Model. In: An Islamic Model for Stabilization and Growth. Political Economy of Islam. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-48763-8_6
Download citation
DOI: https://doi.org/10.1007/978-3-030-48763-8_6
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-48762-1
Online ISBN: 978-3-030-48763-8
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)