| Policy Area |
Objectives and Targets |
Strategies and Measures |
Timetable |
Technical Assistance |
A. Fiscal policies |
Maintain fiscal stability and increase public savings. |
Consolidate revenue mobilization and
expenditure rationalization efforts.
Achieve fiscal savings of around 6.5 percent of GDP in 2000. |
1998-2000
1998-2000 |
|
| 1. Revenue |
Continue reform of the
tax system to expand
the tax base and
improve its yield. |
Introduce an external tariff consistent
with WAEMU's common external tariff
policy objectives.
|
1998-2000
|
IMF and World Bank |
|
|
Introduce a four-tier tarifff structure,
exclusive of a customs stamp (0, 5, 10
and 25 percent) |
April 1998 |
|
|
|
Adopt a common WAEMU classification
for imported products, with four rates. |
July 1998 |
|
|
|
Define the terms of application of the
surtaxes, in accordance with the decisions
taken within the WAEMU. |
July 1998 |
|
|
|
Reform petroleum taxation (see section F
below) |
April 1998 |
|
|
|
Align the rates of the VAT collected at the
border to the rates set out in the Tax Code. |
April 1998 |
|
|
|
Strengthen the monitoring of large
taxpayers. |
1998 |
|
|
|
Complete computerization of the VAT
administration. |
1998 |
|
|
|
Expand the use of the single taxpayer
identification number system |
1998 |
|
|
|
Closely monitor conditional tax exempt
arrangements (bonded warehouses,
temporary admissions, export processing
enterprises, industrial free zones). |
1998-2000 |
|
|
|
Prepare a study on the possible adoption
of a single VAT rate. |
July 1998 |
|
|
|
Eliminate the exemptions to customs
duties and VAT collected by Customs. |
1998-99 |
|
|
|
Prepare measures to simplify the taxation
of small enterprises and better tax the
informal sector. |
1998-99 |
|
|
|
Continue implementation of the import
inspection program (PVI). |
1998-99 |
|
|
|
Connect the valuation database of the
Société générale de surveillance (SGS) and
the GAINDE system; improve the
efficiency of the GAINDE system. |
1998 |
|
|
|
Revise the investment incentive systems
together with WAEMU member countries
and adopt a regional investment code. |
1998-2000 |
|
|
|
Eliminate the exceptional fiscal
arrangements granted certain enterprises
in the modern sector. |
1998-99 |
|
| 2. Current expenditure |
Pursue a policy of
controlling current
expenditure by
improving its
structure. |
Limit the number of civil servants to
67,000, excluding volunteers and
contractual teachers.
Implement the new merit-based salary
adjustment system. |
1998-2000
July 1998 |
|
|
|
Assess medium-term budgetary needs of
the Ministries of National Education,
Health, and Justice based on the
objectives assigned to them. |
1998 |
|
|
|
Complete the institutional and actuarial
study of the National Pension Fund
(FNR). |
By end-1998 |
ILO |
|
|
Implement the institutional reform of the
FNR. |
1999-2000 |
ILO |
|
|
Increase the share of expenditure allocated
to the priority social sectors. |
1998-2000 |
|
|
|
Prepare a report on the outline of the
government's new budget programming
approach and action plan to improve
preparation of the investment budget. |
End July 1998 |
|
|
|
Strictly limit transfers and subsidies to
public enterprises to the amounts
specified in the budget; no longer grant
subsidies to state-owned or semipublic
companies. |
1998-2000 |
|
|
|
Avoid any accumulation of extrabudgetary
arrears by stepping up control of
expenditure commitment at the level of
the single authorizing unit (Ministry of
Economy, Finance and Planning). |
1998-2000 |
|
|
|
Conduct annual public expenditure review. |
1998-2000 |
World Bank |
| 3. Capital expenditure |
Prioritize public
investments; improve
the effectiveness of
government capital
expenditure. |
Implement the recommendations of the
public expenditure review conducted in
1997 with the assistance of the World
Bank.
Increase the share of priority projects,
especially those devoted to infrastructure,
human resource development, and poverty
alleviation. |
January 1999
1998-2000 |
|
|
|
Strengthen the evaluation, programming,
and monitoring of investment. |
1998-2000 |
|
|
|
Closely monitor quarterly performance
indicators for the execution of the public
investment program. |
1998-2000 |
|
|
|
Submit the three-year rolling public
investment program (PTIP) (1999-2001)
to the World Bank for review. |
September
1998 |
World Bank |
|
|
Adopt the 1999-2001 PTIP. |
Dec. 1998 |
|
|
|
Ensure that recurrent project costs are
taken into account. |
1998-2000 |
|
| 4. Civil service
reform |
Strengthen the
personnel
management and
control system
through greater
control of staffing
levels. |
Update, computerize and standardize the
three files (payroll, civil service,
technical ministries) and make them
consistent with the staffing plans of the
various ministries.
Distribute procedures manuals. |
1998
1998 |
World Bank |
|
Improve effectiveness
of public services. |
Conduct a users' survey on the quality of
public services. |
April 1998 |
World Bank
and UNDP |
|
|
Organize a national debate on the quality
of public services. |
July 1998 |
|
|
|
Complete the transfer of responsibilities
in the context of decentralization. |
1998-2000 |
|
|
|
Have the new government procurement
code adopted. |
July 1998 |
|
|
|
Prepare the national plan for good
governance (PNBG) in regard to local and
central governments. |
1998-99 |
World Bank
and UNDP |
| 5. Urban development
and support for
communes.
|
Facilitate Senegal's
growing urbanization
and encourage the
participation of local
governments in the
financing of
infrastructure and
basic social services. |
Conduct audits of communes to define a
priority investment program.
Conduct organizational and financial
audits to define municipal adjustment
programs.
Ensure that the Municipal Development
Agency is operational. |
1998-2002
1998-2002
1998-2002 |
World Bank |
|
|
Promote the reform of local taxation. |
1998-2002 |
|
|
|
|
|
|
| B. Public
debt |
Reduce debt service to
a sustainable level. |
Limit new concessional loans to those
entailing a grant element of at least
35 percent. |
1998-2000 |
|
|
|
Make all government and government-guaranteed borrowing
subject to prior
authorization by the Ministry of
Economy, Finance and Planning. |
1998-2000 |
|
|
|
Increase the staff of the unit responsible
for managing the external debt. |
1998 |
|
|
|
Set up a system for monitoring domestic
public debt. |
June 1998 |
|
|
|
Clear any existing external payments
arrears and avoid accumulation of new
arrears |
1998-2000 |
|
|
|
|
|
|
| C. Public
enterprises |
Reduce the size of the
public enterprise
sector and enhance its
efficiency. |
Complete execution of the public
enterprise restructuring program by 2000
with a view to reducing the government's
holdings to less than 25 percent, with the
exception of a few enterprises (asset
holding companies, training and
promotion companies, and strategic
enterprises such as SONATEL and
SENELEC). |
|
|
|
|
Complete the privatization of SSPT,
SPHU-TERANGA and SONADIS. |
By end-March
1998 |
|
|
|
Complete the privatization of DAKAR
MARINE. |
By end-July
1998 |
|
|
|
Privatize SOTRAC, SICAP, the
Méridien-Président hotel and 4 small enterprises
(SODIDA, MSAD, HAMO and SONEPI). |
By end-December
1998 |
|
|
|
Privatize SENELEC: launching of bids. |
August 1998 |
|
|
|
Adopt a new strategy for the privatization
of SONACOS (see G below). |
July 1998 |
|
|
|
Strengthen the unit in charge of
managing the government portfolio. |
1998-99 |
World Bank |
|
|
Annually update the statement of
government portfolio holdings. |
1998-2000 |
|
|
|
Present a report on the economic and
financial results in 1996 of the 37
enterprises in which the government has
a majority holding. |
End-July
1998 |
|
|
|
|
|
|
| D. Monetary and
credit policy
and financial
market
development |
Design a credit policy
consistent with the
targets for regional
growth, inflation, and
external assets. |
Implement a prudent monetary policy,
essentially using indirect instruments.
Develop the secondary markets in
treasury bills and central bank paper. |
1998-2000
1998-2000
|
|
|
|
Limit access of government to bank
financing. |
Continuous |
|
|
Enhance the
soundness of the
banking system and
improve financial.
intermediation. |
Submit a law to the National Assembly
amending the system for determining
usury rates.
Continue implementation of programs to
strengthen the payments system. |
December
1998
1998-2000 |
|
|
|
Continue to strictly enforce the prudential
ratios established by the regional
banking commission. |
1998-2000 |
|
|
|
Implement the recommendations of bank
audits in progress. |
1998-2000 |
|
|
|
Promote medium-term financing and
access to technical assistance for small
and medium-sized companies. |
1998-2000 |
IFC |
|
|
Analyze the conclusions of the rural credit
studies conducted in 1997 with a view to
their implementation. |
1998 |
|
|
|
Strengthen the unit at the Ministry of
Economy, Finance and Planning
responsible for supervisory mutual
savings and loan associations. |
1998 |
|
|
|
Improve functioning of commercial
courts and procedures to liquidate
collateral for bank loans. |
1998 |
|
|
Promote private equity
and develop the
securities markets. |
Encourage the development and
diversification of institutions and
instruments for financing investments
(especially leasing and venture capital). |
December
1998 |
|
|
|
Implement the texts regulating the
regional financial market and the
Securities. Commission (Conseil
Régional). |
1998 |
|
|
|
Begin offering shares in partially
privatized enterprises via the regional
stock exchange. |
1998 |
|
|
|
|
|
|
| E. Regulatory and
judicial
framework for
economic
activities |
Promote private sector
activity and reduce
distortions. |
Continue liberalization of domestic and
foreign trade and of the pricing system.
Promote respect of the rules of
competition. |
1998-2000
1998-2000 |
|
|
Improve the legal
environment and the
performance of the
judicial system. |
Undertake an assessment of the results of
measures taken in the context of PASCO.
Implement the uniform OHADA
instruments. |
December
1998
As of 1998 |
World Bank |
|
|
Have the National Assembly adopt new
measures regarding arbitration,
enterprises in difficulty and paralegals. |
Next session
of the
National
Assembly |
|
|
|
Train magistrates in commercial law. |
1998-2000 |
|
|
|
Increase budgetary appropriations
allocated to the administration of justice. |
1998-2000 |
|
|
Reduce restrictions on
international financial
transactions. |
Study options for the gradual
liberalization of capital flows.
Develop a plan to improve institutional
support and streamline administrative
processes for exporters. |
December
1998
1998 |
World Bank |
|
|
|
|
|
| F. Energy policy |
Eliminate all energy
sector monopolies or
rigid oligopolies
(trade in fuelwood,
petroleum products,
and electric power
generation and
distribution) |
Liberalize the import, transportation, and
distribution of petroleum products
(including third-party access to import,
storage, and transport facilities).
Abolish the US$2.3 SAR supplement per
barrel and replace the special agreement
for the SAR by a temporary, declining
surtax on imports of refined products. |
April 1998
April 1998 |
World Bank
1998-2002 |
|
|
Adopt a tariff structure which entails a 20
percentage-point differential between
white products and crude oil and 5 points
on black products. |
April 1998 |
|
|
|
Adjust this structure downward in line
with the WAEMU tariff convergence
program and reduce the differential to 15
percentage points for white products. |
January 1,
2000 |
|
|
|
Eliminate the implicit subsidies on black
products sold for electricity generation
over three years (1998-2001); on butane
over four years (1998-2002). |
1998-2002 |
|
|
|
Replace the variable stabilization levy
with a specific tax on white products. |
April 1998 |
|
|
|
Adopt a new price structure for petroleum
products with automatic adjustment
(quarterly, then monthly) of domestic sale
prices. |
April 1998 |
|
|
|
Continue execution of privatization plan
for SENELEC. |
1998-Q1
1999 |
|
|
|
Adoption of the law restructuring and
regulating electricity sector, entailing
private sector participation. |
April 1998 |
|
|
|
Transfer of legal ownership of Senegal's
electricity transport and distribution
infrastructure from the State to SENELEC. |
April 1998 |
|
|
|
Launching of bids for privatization of
SENELEC |
August 1998 |
|
|
|
Transfer of SENELEC's holdings and
management oversight to strategic
partner. |
End Q4 1998 |
|
|
|
Sale of shares to SENELEC workers and
other private sector operators; reduction of
state ownership to no more than 41
percent. |
Before April
1999 |
|
|
|
Liberalize charcoal and woodfuel prices. |
End-1999 |
|
|
|
Implement the provisions of the new
forestry Code. |
1998-2000 |
|
|
|
|
|
|
| G. Agricultural
and fisheries
policy |
Ensure food security
by means of
diversified and
competitive local
production.
|
Finalization of an operational strategy
document
Provide support and advice to farmers
-strengthen agricultural research and
extension services;
-enhance the role of producer
organizations in the development of the
agricultural sector;
-implement a viable rural credit system. |
June 1998
1998
1998-2000
1998-99 |
|
|
Support the
development of
private investment in
agriculture. |
Revise the land tenure legal context to
ensure greater security of private
investment in agriculture. |
1998 |
|
|
|
Modernize techniques, tools and means of
action of the agricultural sector; restore
soil fertility; restructure the fertilizer
subsector; improve access to quality seed
varieties. |
1998-2000 |
|
|
|
Finalize a priority investment program
for the agricultural sector based on the
agricultural development policy letter
(LPDA) and the recommendations of the
strategic orientation paper. |
December
1998 |
|
|
Water |
Conduct an assessment of water needs. |
March 1998 |
|
|
|
Consolidate the operations of the
Program for the Development of the Left
Bank of the Senegal River (PDRG). |
Q3 1998 |
|
|
|
Implement water-saving programs in
irrigated areas. |
1998-2000 |
|
|
|
Establish the Higher Council on Water
and the Water Technical Committee. |
1998 |
|
|
Groundnut sector. |
Privatize SONACOS:
-define a strategy;
-select a reference partner. |
June 1998
Dec. 1998 |
|
|
Cotton sector. |
Maintain the free determination of the
sale price of fiber to local textile mills. |
1998-2000 |
|
|
|
Implement the plan to rehabilitate/
privatize SODEFITEX. |
Q4 1998 |
|
|
Horticulture. |
Streamline administrative procedures for
exports. |
1998 |
World Bank |
|
|
Introduce a system of standardization of
fruit and vegetable quality. |
1998 |
|
|
Livestock |
Pursue privatization of SODESP and
veterinary medicine. |
1998-99 |
|
|
|
Pursue the development of animal
production. |
1998-2000 |
|
|
|
Promote exports from the leather and
skins subsector. |
1998-2000 |
|
|
Fisheries. |
Finalize the fisheries development master
plan. |
June 1998 |
|
|
|
Ensure that the new fishing code, for the
conservation and rational use of fish
resources, is adopted. |
December
1998 |
|
|
|
Complete the privatization of fishing
equipment. |
1998-2000 |
|
|
|
|
|
|
| H. Other sectoral
policies |
Transportation. |
Develop transnational transportation
infrastructure to open Senegal up from its
land-locked position within the WAEMU
(roads, railroads, ports, airports). |
1998-2000 |
|
|
|
Improve the competitiveness of the Port
of Dakar (keep personnel costs below
30 percent of operating costs and billing
periods to a maximum of three months). |
1998-2000 |
World Bank |
|
|
Privatization of the management of
Senegal's airports:
-launching of studies;
-adoption of legislative framework;
-implementation. |
April 1998
June 1999
January 2000 |
|
|
|
Restructure Air-Senegal:
- Develop a business plan for Air
Senegal;
-Privatize the company. |
Sept. 1998
Dec. 1999 |
World Bank |
|
|
Restructure the Dakar-Bamako
international rail line:
-Adopt a legal and regulatory framework
for the private operation of the Dakar
Bamako international rail line;
-Create a joint Senegalese-Malian private
management company for the Dakar
Bamako international rail line (SETI);
-Start up SETI. |
Oct. 1998
Dec. 1998
April 1999 |
|
|
|
Design a program for improved
management of rural roads and
government funding |
1998 |
|
|
|
Reform the legal and operational
framework of urban transportation for its
complete liberalization. |
1998-2000 |
|
|
Mining sector. |
Adopt the revised Mining Code. |
December
1998 |
|
|
|
Update and modernize the geological and
cartographic database. |
1998 |
|
|
|
|
|
|
| I. Human
resources
development |
|
|
|
|
| 1. Health |
Ensure better access to
quality health care.
Improve the
management and
viability of the public
health system. Reduce
the fertility rate. |
Increase the share of current government
expenditure on health care by at least 0.5
percent per year to reach the WHO
standard of 9 percent by 2002.
Sign the decree reorganizing the Ministry
of Health and Social Action. |
1998-2002
March 1998 |
World Bank |
|
|
Implement a recruitment plan for the
Ministry of Health and Social Action with
a target of recruiting 250 staff per year
(all categories combined). |
1998-2000 |
|
|
|
Reduce the number of inhabitants per
health center from about 158,000 in 1997
to 150,000 by 2000. |
1998-2000 |
|
|
|
Reduce the number of inhabitants per
health post from around 11,000 in 1997
to 10,000 in 2000 |
1998-2000 |
|
|
|
Reduce deaths in childbirth by 25 percent,
from 510 per 100,000 births in 1997 to
380 per 100,000 births in 2002. |
1998-2002 |
|
|
|
Begin research into the conditions for a
sustainable solid financial footing for
hospitals. |
March 1998 |
|
|
|
Change the status of the Pharmacie
Nationale d'Approvisionnement (PNA),
with a view to providing more
management autonomy. |
June 1998 |
|
|
|
Increase immunization coverage from
60 percent in 1997 to 80 percent by
2002. |
1998-2002 |
|
|
|
Reduce the fertility index from 5.9 in
1997 to 5.3 in 2000. |
1998-2000 |
|
|
|
Promote the distribution and use of
generic drugs. |
1998-2000 |
|
|
|
Encourage the rehabilitation of
laboratories and the establishment of drug
manufacturing facilities by the private
sector. |
1998-2000 |
|
|
|
Reform the statutory and regulatory
framework of mutual health insurance
organizations. |
1998-2000 |
|
|
|
Rehabilitate private sector health
insurance companies. |
1998-2000 |
|
| 2. Population policy |
Control population
growth (increase the
contraception
prevalence rate from 9
percent in 1997 to
16 percent in 2002). |
Continue to implement the program of
priority actions related to population.
Step up support to local governments in
the area of population control.
Conclude the action program aimed at
lowering the fertility rate. |
1998-2000
1998-2000
1998 |
|
| 3. Education |
Improve the
availability,
effectiveness and
quality of education
by:
-Increasing the gross
primary enrollment
ratio from 59.7
percent in 1997 to 70
percent by 2000; |
Promote continued improvement in the
quality of primary education and increase
enrollment rates in rural areas, especially
among girls.
Gradually increase the share of current
expenditure devoted to primary education. |
1998-2000
1998-2000
|
World Bank |
|
- Increasing the
enrollment rate for
girls from 53 percent
in 1997 to 60 percent
by 2000;
|
Build and equip about 1,500 primary
classrooms annually and complete the
ongoing classroom rehabilitation
program.
Annually recruit 1,500 primary school
teachers. |
1998-2000
1998-2000 |
|
|
- Reducing repetition
rates in grades 5 and 6
from 14 percent and
28 percent,
respectively, in 1997
to 10 percent and
18 percent by 2000. |
Implement new regulations for primary
school teacher training, recruitment,
salaries, and career plans conducive to
primary education for all.
Rationalize higher education based on the
conclusions of the PAES by gradually
reducing its share in the education budget
to 20.3 percent by 2000. |
1998-2000
1998-2000 |
|
|
|
Involve students and businesses in
financing the costs of vocational
training. |
1998-2000 |
|
|
Eliminate adult
illiteracy. |
Increase the number of beneficiaries of
literacy programs by 20,000 a year
(75 percent women) between 1997 and
2000. |
1998-2000 |
|
| 4. Role of women |
Enhance the
integration of women
into political,
economic, and social
life |
Implement a national action plan for
women and start implementation.
Reduce the rate of female illiteracy by
developing functional literacy. |
1998-2000
1998-2000 |
World Bank |
| 5. Reduction of
poverty |
Improve the living
conditions of the
poorest social groups. |
Intensify the coordinated measures to
help the most-disadvantaged social
groups in accordance with the national
poverty alleviation program adopted in
December 1997. |
1998-2000 |
World Bank |
|
|
Increase the income of the poorest
segments of the population by:
-developing strategies for promoting
micro- and small-scale enterprises (MPE);
-supporting the creation and
development of MPEs;
-strengthening the regulatory and
financial environment of MPEs. |
1998
1998-99
1999 |
|
|
|
Improve living conditions by:
-devising development plans for poor
urban neighborhoods and rural
communes;
-implementing these plans;
-developing the intervention and
management capacities of urban and rural
grass-roots organizations, and
departments, regions and municipalities. |
1998
1998-99
1998-99 |
|
|
|
Implement the local nutrition program. |
1998-2000 |
|
|
|
Accelerate and expand labor-intensive
projects, especially in the infrastructure
sector. |
1998-2000
|
|
|
|
|
|
|
| J. Environment |
Maintain
environmental
resources and
environmental quality
with a view to
sustaining long-term
economic growth. |
Have the government adopt the national
environmental action plan (PNAE) and
prepare an environmental management
program to implement its
recommendations.
Improve environmental protection by
establishing a framework for
environmental impact studies. |
Early 1998
1998 |
|
|
|
Conduct environmental impact studies for
all large investment projects. |
1998-2000 |
|
|
|
Strengthen local-level capacity to
manage the environment and natural
resources through the establishment of a
national environment foundation and
through environmental education. |
1998-99 |
|
|
|
Monitor the status of environmental
resources through the establishment of an
environmental information system. |
1998-99 |
|
|
Rehabilitate destroyed
habitats, such as the
Bay of Hann, and
preserve Senegal's
biodiversity. |
Formulate and implement a coastal
resources management program.
Establish a system to facilitate solid
waste management by local governments. |
1998-99
1998-2000 |
|
|
|
|
|
|
| K. Statistical
issues |
Improve the
formulation and
analysis of economic
policy. |
Increase the resources set aside for the
compilation of statistics, especially with
regard to national accounts, foreign trade,
and social indicators; continue to
implement recommendations made in
conjunction with past technical
assistance; regularly publish available
data. |
1998-2000 |
|
