Development of Senegal Economy - Essay Example

Development of Senegal Economy Name Institution Development of Senegal Economy Senegal is one of the smallest countries in Africa because of its surface area, hence being an economic power is yet recognized all over the world. Despite economic status of Senegal been discernible by uncertainty, the people of Senegal have established their role as land encounter and dialogue of cultures. Economic changes have led to increasing involvement of all the social segments migration, particularly international countries in the North. The youths have engaged themselves in solving the existential problems related to the environmental degradation and economic conditions whose impact is on financial resources and production of material. The country majorly relies on donors hence his major export includes commercial fishing, fertilizer production and phosphate mining. They import mainly beverages and food from France and United Kingdom (Sadoff, Whittington, & Grey, 2002). Senegal is one of the stable countries in an unstable West African region. Its evolution during the last ten years has led to main conflicts in the region, making international organizations and private companies to move their operations to Dakar. In the end, strong tertiary sectors of goods and services developed hence boost Senegal growth. GDP growth over the last ten years has decline and per capita wealth has increased, leading the World Bank to remove Senegal to lower middle income status in the year 2010. The overall productivity of the country has remained low, resulting in stagnating the level of economic growth and unchanged levels of poverty (Sadoff, et al, 2002). The government of Senegal is actively seeking private investment and has provided reforms so that to attract more business to Senegal. They have implemented ambitious program of infrastructure building and rehabilitation. Therefore, more control and prioritization of public expenditures is required to complete the program without increasing the fiscal deficit beyond the required figures agreed upon the international monetary fund. The global economic crisis effects were noticeable by contraction in the private investment, reduction in remittances from Senegalese migrants and decline in tourism. However, a study carried out by DPEE indicated that the government of Senegal arrears contributed to the slowdown of the economy (Sadoff, et al, 2002). GDP growth and increased in output from agriculture and the mining have help to mitigate the negative impact that occur during the 2008 food crisis. Increased inclusive economic growth been one of their development agenda plays the most important role to rapid and sustainable growth that will create and expand economic opportunities to all the members of the society. It ensures all the members of the society can contribute to the development of the economy and benefit from such growth. Coming the year 2016, DOI will ensure and direct investments primarily towards the increased trade, agricultural sector, natural resources management and improved nutritional status, especially of those of children and women (Sadoff, et al, 2002). Inclusive agriculture sector growth is development objective that Senegal undertakes. Initially, 68 percent of the labor force relay on agriculture sector. This population ratio accounts only for small percentage of gross domestic product. CIP plan predicts that GDP value added in agricultural will grow by 7.2 percent annually. Furthermore, the government of Senegal believes that agricultural products contributes share to GDP will increase from 16.4% in 2010 to 20.3% in 2015 and 21.5% by 2020. Additionally, the CIP also predicts that poverty in rural areas will decrease from 49.3% in the year 2010 to 27.3% in the year 2015 and to 17.7% by the year 2020 (Sadoff, et al, 2002). To reduce the level of poverty in Senegal, the GOS is using market consolidation approaches so that to link the small scale farming population with larger market players for large scale results. It will provide significant resources to enhance productivity through, improved seed technology and more efficient processing techniques. Additionally, they plan to capitalize on MCC investment in new irrigated areas in the Senegal River valley (Sadoff, et al, 2002). As a country, GOS is planning to rebuild capacity and improve the business environment which is vital for sustaining economic growth. For them to achieve their goal, they will ensure they will work closely with the national and local partners to support these policy reforms and will actively engage local stakeholders in this process. In addition to that, they will invest heavily in higher education for agriculture science and technology in a manner to welcome in a new generation of people who are effectively educated in the sector. By increasing human resources capacities and institutional will ensure access to and development of the next generation technologies in Senegal (Johanson & Adams, 2004). Another incentive that the GOS should take is to increase private sector trade. The productivity of Senegal is well-known through a value chain that is functional and affordability of internally produced goods. Efficiency of exporting goods is attained through performing international product quality standards, timeless of supply and consolidation capabilities. There trade activities focus on increasing exports of targeted high value commodities, improve on the movements of goods along key transport i.e. Dakar Bamako corridor and reforming business environment policy. USAID through the agriculture donor group will enhance increased investment in the feeder roads, hence building on the MCC’s of the two major arteries in the SFZ and the Senegal River Valley (Johanson & Adams, 2004). The third objective for development of Senegal economy is development on the management of natural resources. The government of Senegal improves the conversation of bio-diverse areas; improve the management of agriculture, potable, and environmental water systems; and increase the country ability to adapt to climatic change. Local communities have a high chance of managing natural resources and generate income from them. This program of conservation of environment will provide for the communities greater opportunities to gain directly from natural resources, hence contributing to Senegal attainment of the first millennium development goal. Changes in climatic condition could affect productivity levels and diminish livelihoods of Senegal citizens. Through the coordination of the GOS and USAID, they have come up with the following objectives: the 1st one is to improve on existing vulnerability analysis for the potential climatic change affects and the 2nd one is to increase the volume of the Senegal so that to adapt to potential climatic changes through improved coastal resources management and water system (Johanson & Adams, 2004) . Through better education, youths are capable to become more effective citizenry, hence act as a notion of strengthening foundational skills in the lower levels. Citizens who have skills are able to lucid and advocate for their development priorities and lead civil society groups and political parties. Education has lead to curriculum reform to boost the skills taught to the needs of the economy (Johanson & Adams, 2004). Infrastructure is one of the vital factors in the economic development of Senegal. Through investment in transport, water, sanitation and energy will improve the living standards hence reduces poverty. Communication technologies such as mobile phones and internet support economic advances in Senegal. Currently in the road sector, Senegal has 14576km of highways and 4271km which are paved. The railway networks expand on a surface of 906km, hence providing links to the capital and major cities hence increased economic development in the region. Electricity is produced domestically hence there is no need for importing from other countries boosting economic status (Johanson & Adams, 2004). In conclusion, Senegal been an independent country did not develop faster. Its rapid growth has come about by improvement in agricultural technology, education oriented to work oriented mobility, good governance and increase in the private sectors among many others. However, there are still challenges and constraints which remain and must be tackled. For them to achieve their objectives, the bank assistance strategy aims to support Senegal so that to promote competition among other countries through good governance, infrastructure strengthening, business environment improvement and diversification. Reference: Haggard, S. & Webb, S. (1994). Voting for reform : democracy, political liberalization, and economic adjustment. New York: Published for the World Bank, Oxford University Press. Olaniyan, R. (1996). Foreign aid, self-reliance, and economic development in West Africa. Westport, Conn: Praeger. Sadoff, C., Whittington, D. & Grey, D. (2002). Africa's international rivers: an economic perspective. Washington, DC: World Bank. Johanson, R. & Adams, A. (2004). Skills Development in Sub-Saharan Africa. Washington, D.C: World Bank. Read More