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In January 1994, Senegal undertook a bold and ambitious economic reform program with the support of the international donor community. This reform began with a 50 % devaluation of Senegal's currency, the CFA franc, which was linked at a fixed rate to the former French franc and now to the euro. Government price controls and subsidies have been steadily dismantled. After seeing its economy contract by 2.1 % in 1993, Senegal made an important turnaround, thanks to the reform program, with real growth in GDP averaging 5 % annually during 1995-2001. Annual inflation had been pushed down to less than 1 %, but rose to an estimated 3.3 % in 2001. Investment rose steadily from 13.8 % of GDP in 1993 to 16.5 % in 1997. As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration with a unified external tariff. Senegal also realized full Internet connectivity in 1996, creating a mini boom in information technology-based services. Private activity now accounts for 82% of GDP. On the negative side, Senegal faces deep-seated urban problems of chronic unemployment, socioeconomic disparity, juvenile delinquency, and drug addiction -- much as produced within hierarchically class-based populations in the developed/industrialized world's urban environs. |
Senegal Information: Inside
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