Azam, Jean-Paul and Dia, Magueye and Tsimpo, Clarence and Wodon, Quentin (2007): Has Growth in Senegal After the 1994 Devaluation Been Pro-Poor? Published in: Growth and Poverty Reduction: Case Studies from West Africa (edited by Quentin Wodon, published in World Bank Working Paper No. 79) (January 2007): pp. 45-67.
Download (1023Kb) | Preview
The devaluation of the CFA Franc in 1994 generated a public investment boom in Senegal. The increase in public investment was made possible thanks to an improved budgetary situation related to the reduction in real terms of the public wage bill which had been too large for some time. The rise in public investment was subsequently accompanied by a (smaller) increase in private investment due in part to the attractiveness of Senegal as a place to do business within West Africa, at least compared to other West African nations. In turn, higher public, and to some extent private, investment led to higher growth rates and substantial poverty reduction, with the share of the population living in poverty declining from 67.9 to 57.1 percent. Poverty in urban areas was reduced faster than in rural areas, as most of the investment benefited the manufacturing and services sectors. Also, a few years of poor rainfall in the second half of the 1990s coupled with an initial drop in the real prices of crops in the aftermath of the devaluation affected negatively rural incomes. As a result, while virtually all segments of the population (including the rural poor) benefited from improved standards of living in 2001 as compared to 1994, growth was not strictly speaking “pro-poor” because the growth in consumption per equivalent adult in the upper half of the distribution was larger than that observed among the poor.
|Item Type:||MPRA Paper|
|Original Title:||Has Growth in Senegal After the 1994 Devaluation Been Pro-Poor?|
|Keywords:||Poverty; Senegal; devaluation; pro-poor|
|Subjects:||O - Economic Development, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I32 - Measurement and Analysis of Poverty
|Depositing User:||Quentin Wodon|
|Date Deposited:||16. Oct 2008 01:37|
|Last Modified:||13. Feb 2013 23:33|
Azam, Jean-Paul. 1993. “The ‘Côte d’Ivoire’ Model of Economic Growth.” European Economic Review 37:566–76.
Azam, Jean-Paul. 1995. “L’Etat auto-géré en Afrique.” Revue d’économie du développement 1995/4:1–19.
Azam, Jean-Paul. 1997. “Public Debt and the Exchange rate in the CFA Franc Zone.” Journal of African Economies 6(1):54–84.
Azam, Jean-Paul. 2004. “Poverty and Growth in the WAEMU after the 1994 Devaluation.” Journal of African Economies (forthcoming).
Azam, Jean-Paul, Bruno Biais, and Magueye Dia. 2004. “Privatization versus Regulation in Developing Economies: The Case of West African Banks.” Journal of African Economies 13(3):361–94.
Azam, Jean-Paul, and Gérard Chambas. 1999. “The Groundnuts and Phosphates Boom in Sénégal (1974–1977).” In Paul Collier and Jan Willem Gunning, eds. Temporary Trade Shocks in Developing Countries, Vol. 1. Oxford: Oxford University Press.
Azam, Jean-Paul, Magueye Dia, and Tchétché N’Guessan. 2002. “Telecom Sector Reform in Senegal.” World Bank Working Paper, WPS 2894 , Washington, D.C.
Azam, Jean-Paul, Magueye Dia, Clarence Tsimpo, and Quentin Wodon. 2005. “Poverty Reduction Without Net Growth: The Impact of Senegal’s 1994 Devaluation on Urban Poverty.” World Bank, Washington, D.C. Processed.
Azam, Jean-Paul, and Waly Wane. 1999. “The Impact of the Devaluation of the CFA Franc on Poverty in the WAEMU.” World Bank, Washington, D.C. Processed.
Berthélemy, Jean-Claude, Abdoulaye Seck, and Ann Vourc’h. 1996. La croissance au Sénégal: un pari perdu? Etudes du centre de développement de l’OCDE. Paris: OCDE.
Boone, Catherine. 2003. Political Topographies of the African State. Cambridge: Cambridge University Press.
Cohen, Daniel. 1993. “Low Investment and Large LDC Debt in the 1980s.” American Economic Review 83:437–49.
Datt, G., and M. Ravallion. 1992. “Growth and Redistribution Components of Changes in Poverty Measures: A Decomposition with Applications to Brazil and India in the 1980’s.” Journal of Development Economics 38:275–95.
Diagne, Abdoulaye, and Gaye Daffé, eds. 2002. Le Sénégal en quête d’une croissance durable. Paris: CREA–Karthala.
Eaton, Jonathan. 1993. “Sovereign Debt: A Primer.” World Bank Economic Review7:137–172.
Foster, James, Joel Greer, and Erik Thorbecke. 1984. “A Class of Decomposable Poverty Measures.” Econometrica 52:761–66.
Ka, Samba, and Nicolas Van de Walle. 1994. “Senegal: Stalled Reform in a Dominant Party System.” In Stephan Haggard and Steven B. Webb, eds., Voting for Reform: Democracy, Political Liberalization, and Economic Adjustment. Oxford: Oxford University Press.
Lewis, W. Arthur. 1954. “Economic Development with Unlimited Supplies of Labour.” Manchester School 22:139–191.
Loum, Mamadou Lamine. 2001. La Sénégal au 1er avril 2000. Dakar: EXCAF Editions.
Malinvaud, Edmond. 1980. Profitability and Unemployment. Cambridge: Cambridge University Press.
Manchuelle, François. 1997. Willing Migrants: Soninke Labor Diasporas, 1848–1960. Athens, Ohio: Ohio University Press.
Rama, Martin. 2000. “Wage Misalignment in CFA Countries: Were Labour Market Policies to Blame?” Journal of African Economies 9(4):475–511.
Ravallion, Martin, and Shaohua Chen. 2003. “Measuring Pro-Poor Growth.” Economics Letters 78:93–99.
République du Sénégal. 2004. “La pauvreté au Sénégal: de la dévaluation de 1994 à 2001–2002.” Ministère de l’économie et des finances, Direction de la prévision et de la statistique, version préliminaire, Dakar, janvier.
Rouis, Mustapha. 1994. “Senegal: Stabilization, Partial Adjustment, and Stagnation.” In Ishrat Husain and Rashid Faruqee, eds., Adjustment in Africa: Lessons from case Studies. Washington, D.C.: The World Bank.
Schaffer, Frederic C. 1998. Democracy in Translation. Ithaca, N.Y.: Cornell University Press.
Siaens, Corinne, Mohamed Sylla, Adama Toure, and Quentin Wodon. 2005. “Poverty trends and determinants in Senegal: 1994–2001.” World Bank, Washington, D.C. Processed.
Siaens, Corinne, and Quentin Wodon. 2005. “Perceptions of Poverty in Senegal.” World Bank, Washington, D.C. Processed.
Van de Walle, Nicolas. 1991. “The Decline of the Franc Zone: Monetary Politics in Francophone Africa.” African Affairs 90:383–405.
Watts, H. W. 1968. “An Economic Definition of Poverty.” In D. P. Moynihan, ed., On Understanding Poverty. New York, Basic Books.
World Bank. 2005. “Senegal: Poverty and Human Development.” Report No. 26189-SN, The World Bank, Washington D.C.