SENEGAL

	FY 1998 Actual	FY 1999 Estimate	FY 2000 Request
Development Assistance	$15,200,000	$17,243,000	---
Development Fund for Africa	---	---	$17,050,000
Child Survival and Disease	$2,100,000	$5,981,000	$4,000,000

Introduction.

Senegal is the United States of America's most important francophone partner in sub-Saharan Africa. Largely Moslem, politically stable, and a multiparty democracy, Senegal is a small, poor, and moderate secular nation. Senegal is an influential and moderating voice in Muslim councils, and often is consulted by French policy-makers. Senegal's role in efforts to assist Africans to better manage conflicts has also recently grown. Its participation in the U.S. African Crisis Response Initiative is indicative of that commitment. Senegal has also willingly provided troops for numerous peacekeeping operations, e.g. Bosnia, Liberia, Guinea-Bissau, Rwanda, the Sinai, and Operation Desert Shield, to name a few. Senegal's 35 years of political stability, its increasing political pluralism, and good record on human rights, buttress its partnership with the United States of America and explain why USAID's program responds to U. S. national interests of promoting democracy and providing humanitarian assistance.

Development Challenge.

Senegal is still among the world's least developed countries, despite its relatively modern capital city, Although Senegal's economic growth has only recently improved, it has virtually been negated by high population growth -- currently 2.7% or doubling every 27 years. Per capita gross domestic product (GDP), $532 in 1998, has stagnated since independence. Sustainable economic growth is essential for Senegal to maintain its stability and to continue its democratic evolution. Strong structural adjustments, including a 50% devaluation of currency in 1994 and recent efforts to privatize and liberalize the economy, have shown Senegal's resolve. Inflation has been less than three percent the past two years, and Senegal's external debt has stabilized at approximately $3.3 billion (69% of GDP in 1998). While economic growth is now positive, it is not yet strong enough at 5.7% in 1998 to have a substantial impact on per capita incomes. Senegal needs to create an environment conducive to generating additional employment and higher incomes.

Natural resource management (NRM) continues to be a major concern. The Sahelian ecosystem is vulnerable to erosion, droughts, deforestation and locusts. In spite of its relatively small share of GDP (20%), agriculture is still the principal source of income for about 60% of Senegal's population. Yet annually, one-third of Senegal's cereal needs must be met by imports. Improvements in crop yields have kept up with the population growth rate, but not closed the gap in food grain needs. Only 19% of Senegal's land is suitable for agriculture, and only 1.5% is currently irrigated. In addition, an overall decline in rainfall over the past 30 years, as well as the fact that 57% of Senegal's energy need is supplied by fuelwood and charcoal, translate into extremely negative pressures on natural resources.

Social services in Senegal remain extremely limited, especially for women and children. Maternal mortality is high (510 per 100,000 live births), and many infants die of preventable diseases. Senegal suffers from relatively high childhood mortality rates (140 per 1,000), and women still bear on average 5.7 children each. Life expectancy is 50 years, with half the population under 18 years old.

Senegal's Socialist Party has been in power since before Independence, and its leader, Abdou Diouf, has been President since 1981. In response to public pressure, the Government of Senegal appointed a non-partisan group, the National Election Monitoring Group (ONEL) to monitor the 1998 legislative elections. Despite public satisfaction concerning the fairness of the elections, political disillusionment has increased due to recent efforts by the ruling party to change election laws in its favor.

The 1996 Decentralization Law was a major step towards democratization by transferring more powers to elected regional and local government bodies. Implementation to date has been very slow. Success will depend on increased political will, continued donor coordination, and on how well the new political institutions can mobilize local revenues and manage their natural resources. 1999 will be a crucial year for Senegal politically. Senegal is forming a Senate to join its existing National Assembly, and the political season will be in full swing leading up to the presidential elections in 2000.

In response to these problems and opportunities, in 1998 USAID embarked on implementation of a new strategy that builds upon past successes and forges new ground. USAID has been and will remain the pre-eminent donor in the family planning sector. Declines in infant mortality and the low incidence (1.4%) of Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS) are largely attributed to USAID assistance. USAID also played a major part in increasing the private sector's role in the economy. As an example, the private sector, not government-owned corporations, now controls the supply and pricing of rice, which is Senegal's largest grain import. When prices start to rise, the private sector responds with additional imports to assure a regular supply of rice.

In the management of natural resources, USAID's collaborative efforts with Senegal have helped formulate a National Environmental Action Plan, and put in place local natural resource management (NRM) committees. Farmers are now in a better position to make sure that natural resources are sustainably managed. In the area of democracy and good governance, USAID assisted with voter education for the first-ever election of the newly created local and regional positions. Many problems were avoided and others identified, which led to the creation of ONEL, a neutral body charged with monitoring elections.

Other Donors.

The donor community is large and pledges about $500 million per year, which funds 60% of Senegal's investment budget. USAID provided approximately 4% of total external financing assistance to Senegal in 1997, placing the United States as the sixth largest bilateral donor (behind France, Germany, Japan, Taiwan and Saudi Arabia) and the ninth largest donor overall. Other major donors are the World Bank, European Union, and the IMF. These donors are active in sectors assisted by USAID, but they also cover the sectors of education and physical infrastructure. USAID plays a prominent role among donors, particularly in the areas of economic liberalization, family planning, HIV/AIDS, democratic governance, and NRM. The April 1998 Consultative Group meeting in Paris focused on the need for further debt relief, increased economic growth, and greater sharing of political power.

FY 2000 Program.

USAID's 1998-2006 strategy seizes the opportunities created by Senegal's recent macro-economic reforms and passage of the 1996 Decentralization Law. In FY 1999, USAID will start activities to help resolve three problems critical to Senegal's future. First, USAID will increase sustainable private sector income-generating activities. Second, USAID will foster more effective, democratic, and accountable local management of services and resources. Third, USAID will increase sustainable use of reproductive health services (child survival, maternal health, family planning, and prevention of sexually transmitted diseases (STD/AIDS). During FY 1999, four competitively bid prime contracts will have been written and awarded. NRM activities will continue. Pilot democracy and governance activities will commence. A loan guarantee program will be established. During FY 2000, specific development activities such as child survival and AIDS programs, local management of natural resources, and microenterprise creation programs will be agreed to with our partners and customers, and on-the-ground activities will be in their first full year of operation under the USAID 1998-2006 strategy.

SENEGAL

FY 2000 PROGRAM SUMMARY
(in thousands of dollars)

USAID Mission Director, Donald B. Clark

USAID Strategic and Special Objectives	Economic Growth & Agriculture	Population & Health	Environment	Democracy	Human Capacity Development	Humanitarian Assistance	TOTALS
S.O 1. Sustainable Increases in Private Sector Income- Generating Activities in Selected Sectors. - DFA	8,000	---	1,000	---	---	---	9,000
S.O. 2, More Effective, Democratic & Accountable Local Management of Services & Resources in Targeted Areas. - DFA	---	---	2,600	2,750	---	---	5,350
S.O. 3. Increased and Sustainable Use of Reproductive Health Services (Child Survival, Maternal Health, Family Planning, and STD/AIDS) in the Context of Decentralization in Targeted Areas. - DFA - CS	--- ---	2,700 4,000	--- ---	--- ---	--- ---	--- ---	2,700 4,000
Totals: - DFA - CS	8,000 ---	2,700 4,000	3,600 ---	2,750 ---	--- ---	--- ---	17,050 4,000

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ACTIVITY DATA SHEET

PROGRAM: SENEGAL
TITLE & NUMBER: Sustainable Increases in Private Sector Income Generating Activities in Selected Sectors, 685-SOO1
STATUS: Continuing
PROPOSED OBLIGATION & SOURCE OF FUNDING: FY 2000: $9,000,000 DFA
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2006

Summary: This private sector Strategic Objective has been designed to provide the essential ingredients for greater access to economic options and broader-based economic growth by building on the success of past USAID activities in policy reform, improved natural resources management (NRM), and overall private sector development. It will also take advantage of Senegal's recently improved macroeconomic foundation. This objective provides a comprehensive and continuous approach to:

1. Strengthening local business associations;
2. Identifying and documenting priority concerns;
3. Proposing solutions;
4. Debating the issues in an open and participatory manner; and
5. Developing and implementing strategies to improve the policy/regulatory environment within the context of decentralization.

USAID's new assistance strategy is demand-driven. All three strategic objectives were developed in response to the expressed needs of USAID's Senegalese partners and will be implemented through activities identified and requested by these partners. The demand-driven approach emphasizes customer-partner ownership of the results and seeks to involve customers in all aspects of the design, implementation, monitoring, and evaluation of all activities which will really begin to be implemented in FY 2000.

Key Results: USAID's 1998-2006 Strategic Plan has identified three key intermediate results that will be attained during the next eight years to achieve the Private Sector objective: (1) improved legal, regulatory and policy environment; (2) increased access to financial services; and (3) improved technical and managerial practices.

Performance and Prospects: To achieve the first result, an Investor's Road Map Survey, documenting bureaucratic red tape that impedes trade and investment will be completed in early 1999. Workshops will follow in which the findings of the Road Map Survey will be shared with policy decision-makers to effect needed reforms. Other activities under consideration include training judges in commercial law and supporting private Arbitration Centers.

For the second result, proposed activities include: (1) assessment of the over 30 micro finance institutions in existence in Senegal; (2) technical assistance to train managers of financial services, expand savings services, and enforce regulations; (3) implementing a loan guarantee mechanism to increase access to formal bank services by lowering banks' perceived risk in lending small amounts to new clients; and (4) empowered women's and mixed gender groups, assisted under the NRM activity, will increase the number of natural resources-based businesses. These activities build on USAID's experience enhancing the institutional capacity of six local bank branches under the credit program of the agricultural/NRM-based enterprise development program that ended in 1998.

To obtain the third, proposed activities include: (1) a census of private sector training programs intended for entrepreneurs; (2) training in entrepreneurship, management, and business plan development; (3) improvement of access to business-related information; and (4) technical assistance in the adoption and use of appropriate technologies.

Possible Adjustments to Plans: No adjustments are foreseen at this time.

Host Country and Other Donor Programs: The Government of Senegal (GOS) has demonstrated its commitment to private sector development through a comprehensive package of policy reforms aimed at creating an improved business environment. These have included a 50% CFAF (West African Monetary Union Franc) devaluation in January 1994, price and trade liberalization, reform of the labor code, and the abolition or renegotiation of special agreements under which the GOS conferred special protection, subsidies and tax exemptions to certain enterprises.

The World Bank, the International Monetary Fund (IMF), and France are the leading donors for Senegal's private sector. The World Bank-supported programs are encouraging competition, liberalizing the sector, and reducing energy costs. In 1997, the International Finance Corporation opened an office in Dakar to respond to financial needs of small and medium enterprises (SMEs).

In August 1998, the IMF concluded an Enhanced Structural Adjustment Agreement with the GOS, for the period 1998-2002. This new program centers on a "new generation of reforms" with a declared objective of promoting the private sector, alleviating poverty, and strengthening governance.

Other key donors include the African Development Bank, the European Union, the International Fund for Agricultural Development, the United Nations Development Program, the West African Development Bank, Canada, Germany, and Italy.

A private sector working group, chaired by the U.S. Ambassador to Senegal, coordinates donor assistance for private sector issues.

Principal Contractors, Grantees or Agencies: IBRD's Foreign Investment Advisory Services (FIAS) is implementing the Investors Road Map Survey using USAID funding. Solicitation of competitive bids and selection of a prime contractor to help achieve this objective will take place during FY 1999.

Selected Performance Measures:

Performance Indicators	Baseline 1998	FY 2000	Target 2006
Income increased through supported activities.	*	*	+ $80 million
Number of newly established businesses/small and medium enterprises increased:    - SMEs    - Micro enterprises	* *	* *	+ 1,250 + 3,200
Ratio of private investment to GDP increased	13%	*	17%
* Data is currently being collected and analyzed to establish baselines and targets.

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ACTIVITY DATA SHEET

PROGRAM: SENEGAL
TITLE & NUMBER: More Effective, Democratic, and Accountable Local Management of Services and Resources in Target Areas, 685-SOO2
STATUS: Continuing
PROPOSED OBLIGATION & SOURCE OF FUNDING: FY 1999: $5,350,000 DFA
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2006

Summary: The purpose of this Strategic Objective is to achieve more effective, democratic, and accountable local management of services and resources in targeted areas. This democracy and governance objective will increase the ability of Senegalese to identify and prioritize local issues and mobilize resources at local levels to address their major concerns. This objective builds upon the success of past USAID-funded activities. These include:

1. Continuing to work with communities to help villagers develop land use management plans;
2. Supporting village organizations to create new income generating activities; and
3. Contributing to the implementation of the National Environmental Action Plan and helping the national committee that coordinates actions to sustainably manage Senegal's natural resources.

Key Results: USAID's 1998-2006 Strategic Plan has identified four Key Intermediate Results that will be attained during the next eight years to achieve the Democracy and Governance objective: First, the capacity of local institutions will be increased, with a focus on:

• Improving managerial, leadership, planning, and analytical skills;
• Increasing access to good information through as many media as possible; and
• Improving systems for transfer of information and human resources from national to local levels.

Second, access to financial resources will be increased. This is essential because the demand for resources at the local level far exceeds the amount that the central government can provide. Activities will focus on:

• Improving systems for the transfer of funds from national to local levels;
• Improving management and enforcement of tax collection procedures; and
• Improving policy implementation and legal framework for local government authority to raise revenues.

Third, popular participation in the management and oversight of local affairs will be increased by:

• Establishing multiple and regular channels for citizen access to information; and
• Informing and strengthening local development groups including local media concerned with good governance.

Fourth, implementation of policies and regulations related to decentralization will be made more effective by:

• Improving coordination systems among levels of local government; and
• Increasing knowledge of decentralization texts and related legislation through various channels including local media.

Performance and Prospects: Performance achieved under the FY 1992 to FY 1997 strategy under the natural resources management (NRM) activity was good. For example, USAID's work to promote participatory applied research within the national agricultural research institute showed how involvement of NGO's and farmers in development of national research can be a beneficial outcome of strengthening civil society. Until new contractors are in place during this 1999 transition year, USAID will concentrate on implementation of on-going NRM-based activities, as well as undertaking a few new activities. Emphasis will be on the following:

• Development of participatory land use management plans in five new geographic areas;
• Empowerment of villagers and enhancement of civil society continues through training and technical assistance in NRM practices and technologies, literacy, community-based decision making, enterprise development and credit access;
• Identifying appropriate assistance modes regarding the Presidential elections in 2000;
• Conducting a pilot study of civil society's role in decision-making in a peri-urban area of Dakar.

Possible Adjustment to Plans: No adjustments are foreseen at this time.

Host Country and Other Donors: The Government of Senegal (GOS) passed a landmark decentralization law in 1996, marking a turning point in the country's devolution of authority and transfer of technical competence to local governments and new regional councils. Canada is the lead donor for coordination of decentralization programs. Canada's assistance focuses initially on fiscal discipline and financial transfers among levels of government, and training for the national association of newly elected regional officials. The European Union is providing equipment to the new local governing bodies as well as helping with information systems. The French, upon whose governing system the decentralization law was modeled, are providing training and equipment. Other key donors include the United Nations Development Program, the World Bank, the Netherlands, and Germany.

Principal Contractors, Grantees or Agencies: Transitional assistance will be provided by the South-East Consortium for International Development (SECID) through 2001 and the Earth Research Observation System (EROS) until 1999. New contracts/grants will be competed and awarded in 1999.

Selected Performance Measures:

Performance Indicators	Baseline 1998	FY 2000	Target 2006
Proportion of citizens who report satisfaction with a threshold level of services and resources (as determined by periodic surveys):    - in 50 Rural Communities:    - in 10 Communes:	* *	* *	* *
Proportion of local governments implementing 90% of their land use management plans.	*	*	*
% of local government implementing 90% of their planned budgets: - Rural Communities: - Communes:	* *	* *	65% 60%
Proportion of local governments in which 60% of eligible voters participate in local elections.	*	*	*
* Data is currently being collected and analyzed to establish baselines and targets.

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ACTIVITY DATA SHEET

PROGRAM: SENEGAL
TITLE & NUMBER: Increased and Sustainable Use of Reproductive Health (Child Survival, Maternal Health, Family Planning, and Sexually Transmitted Diseases/AIDS) Services in the Context of Decentralization in Targeted Areas, 685-SOO3
STATUS: Continuing
PROPOSED OBLIGATION & SOURCE OF FUNDING: FY 2000: $2,700,000 DFA; $4,000,000 CS
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2006

Summary: The health situation in Senegal is characterized by high maternal mortality that is perpetuated by low use of prenatal services and assisted deliveries. The use of family planning services remains low, with a nationwide contraceptive prevalence rate of 7.1%. HIV prevalence is estimated at 1.4% of the general population, which is low in relation to other African countries thanks to early interventions. However, Senegal will need to re-adapt its HIV communications approaches for new risk groups.

Despite a general decline since 1968, infant and child mortality remains high, with disturbing increases noted since 1990, particularly in urban areas. According to the last Demographic Health Survey and other estimates, childhood mortality is 139.3 per thousand and is due to five major causes: (1) diarrheal diseases (prevalence rate of 12.5%) which are more acute in rural areas (with death risks 2.3 times greater than in urban centers; (2) acute respiratory infections; (3) measles; (4) malaria; and (5) underlying malnutrition and chronic parasitic infections.

The Government of Senegal (GOS) has recently passed decentralization laws transferring management authorities from the central level to local governments in nine sectors, including health. To assist the Ministry of Health (MOH) improve health care services and to capitalize on opportunities presented by this new legal environment, USAID has developed this strategic objective to promote the use and sustainability of selected health services through increasing access, demand, and local financing capabilities. Within both public and private sectors, efforts will be aimed at decreasing infant and child mortality, reducing fertility, and stabilizing HIV/AIDS prevalence rates.

The third strategic Objective builds on USAID's FY 1992 to FY 1997 strategy and its experiences in Senegal over the past thirty-five years. It reinforces the emphasis placed in recent years on stimulating private sector initiatives, strengthening local entities, and enhancing Senegal's political and administrative decentralization. The attainment of this SO will be enhanced in many cases by integration or parallel implementation of activities dealing with private income generation (SO1) and improved management of local government (SO2).

The program will directly benefit three major population groups in Senegal: (1) 1.6 million children under five, who will be the primary beneficiaries of the child survival activities; (2) couples and individuals, specifically women of reproductive age; and (3) 1.5 million sexually active persons at high risk of contracting HIV/AIDS in urban and peri-urban areas. The indirect beneficiaries include the private and public sector health delivery services at the grassroots level.

Key Results: Three key intermediate results were concluded to be necessary and sufficient to achieve the objective:

1. Improved access to quality child survival, maternal health, family planning, and sexually transmitted diseases/AIDS services;
2. Increased demand for quality child survival, maternal health, family planning, and sexually transmitted diseases/AIDS services; and
3. Increased financing of health services from internal sources.

Performance and Prospects: Health sector objectives defined in the 1992-1997 strategy were generally achieved, or in some cases, targets were exceeded. These results will be consolidated during the October 1998 to September 1999 transition year, with a strong emphasis on activities that will benefit the entire FY 1998-2006 Strategy, specifically:

1. Major information, education and communication (IEC) campaigns and strengthening of Ministry of Health (MOH) IEC planning activities in reproductive health, training in more effective data-for-decision-making and planning tools;
2. Assisting local Health Committees to more actively engage in promoting preventive health services, and strengthening their management capacity; and
3. Assisting MOH in managing contraceptive logistics from the national pharmacy to health posts.

USAID will continue to provide commodities and technical assistance, and the distribution of contraceptives will be fully integrated into the essential drugs distribution. Continued partnership between the public and private sector health delivery services will be supported during this period. USAID will also ensure that ongoing pilot programs on integrated management of child illness and minimum nutrition package are well documented and the results widely disseminated.

Possible Adjustments to Plans: No adjustments are foreseen at this time.

Host Country and Other Donors: At least sixteen bilateral and multilateral donors, including the World Bank, Japan, France, and the European Union currently contribute to the health sector in Senegal. Under the GOS national health plan for the period 1998 to 2002, it is estimated that the GOS will cover about 60% of the planned health budget by providing human and material resources, while donors will fund about 30% of the budget mostly for preventive health and family planning. Cost-recovery systems are expected to contribute the remaining 10%.

Principal Contractors, Grantees or Agencies: While plans are underway to put in place a new long-term, prime contractor during FY 1999, USAID will rely on Cooperating Agencies (CAs) provided through USAID's Field Support funding mechanisms to implement transition activities. These CAs include Partnership for Child Health, John Hopkins University, Futures Group, Family Health International, Abt Associates, and Centers for Disease Control,

Major Results Indicators:

Performance Indicators: (target populations not yet selected)	Baseline: 1996	FY 2000	Target 2006
Contraceptive prevalence rate increased.	7.1%	8.9%	15%
% condom use with non-regular sex partners increased.	29%	To be determined	50%
% of pregnancies receiving one or more prenatal visits increased.	82%	85%	98%
% of children fully vaccinated by age one year increased.	39%	45%	65%
% of child diarrhea cases treated with oral rehydration therapy increased.	33%	35%	60%
% of infants exclusively breast-fed increased.	14%	15%	30%

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