Macroeconomic policy formation in Senegal: Challenges in formation and coordination
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1 LUX MEA LEX SIGILLUM UNIVERSITATIS DAKARENSIS Macroeconomic policy formation in Senegal: Challenges in formation and coordination Mbaye Diene
2 Abstract The first twenty years after the independence in 1960 are characterized by a significant centralization in the management of the economy and the use of planning. However the effectiveness of the government s policies had been questioned when the country faced a sharp debt crisis in the 1980s.The austerity related to the adjustment programs following that crisis did not allow growth to take place in the economy. This shows that the government is now unable to cope alone with the economic and social problems That is why the macroeconomic policy formation in Senegal involves now other actors than the public administration only. The international donors are also involved from the beginning to the end of the process of definition and application of the economic policies, and the Non State Actors play now a more important role. The consequence is that the economy has been greatly shaped by the policies recently undertaken by the government and its institutional partners (IFM, World Bank, etc.) in conjunction with the private sector. The purpose of this paper is to present the framework of economic policy formulation in Senegal from 1960 to 2012 with special focus on the years since 2000, and to identify the political, social and economic objectives of these policies. The role of the stakeholders such as the government, the international financial and technical partners, the civil society, the local administrations is also identified and propositions for a better impact of the economic policies in the future are made. 2
3 LIST OF ABBREVIATIONS ACBF: African capacity Building Foundation AfDB: African Development Bank AGS: Accelerated Growth Strategy CBWAS: Central Bank of the West African States CIS: Chemical Industries of Senegal CNGOAD: Council of the NGOs Acting for Development CRA: Centre for Rural Activities CRE: Center for Rural Expansion DESP: Document of Economic and Social Policy DFES: Direction of Forecast And Economic Studies ECB: European Central Bank ECOWAS: Economic Community of West African States EFRP: Economic and financial recovery plan EOP: Economic Orientation Plan EPSI: Economic Policy Support Instrument FAP: Foreign Aid Policy HCP:High Council of Planning IMF: International Monetary Fund LDCs: Least Developed Countries LIP: Local Investment Plans MLTEAP:Medium and Long Term Economic Adjustment Plan NASD: National Agency for Statistics and Demography NCE: National Council of Employers NPGG: National Program for Good Governance NPS: New Planning System OAT: Office of Agricultural Trade OPESD: Orientation Plan for Economic and Social Development PRGF: Poverty Reduction and Growth Facility PRSP: Poverty Reduction Strategy Paper RCD: Rural Community Development RCDA: Regional Centre for Development Assistance RPID: Regional Plan for Integrated Development RPID: Regional Plan for Integrated Development SAP: Structural adjustment policies SBD: Senegalese Bank for Development STRP: Short Term Recovery Plan TPIP: Triennial Public Investment Program TUECA: Unions Expertise and Council Agency UEMOA: Union Economique et Monétaire Oues tafricaine UNECA: United Nations Economic commission for Africa UNDP: United Nations Development Program WAEMU: West African Economic and Monetary Union 3
4 Abstract 1 1 Introduction 4 2 The Economic Policy Changes since the 1960s Planning as a priority economic policy tool The New Planning System and the Adjustment Policies The new economic plans and the liberalization policies The Economic Performance since The New vision on Economic policies since The Dual Planning Medium-term perspective policies The Third Poverty Reduction Strategy Paper The Accelerated Growth Strategy The Performance of the Economy and the Policies in the period Conduct of Macroeconomic Policies in Senegal The monetary policies The fiscal policies 17 5 Macroeconomic Policy Formation in Senegal The Technical and Financial Partners The Non State Actors 20 6 Conclusions and recommendations 21 4
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