Has Growth in Senegal After the 1994 Devaluation Been Pro-Poor?
AbstractThe 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11110.
Date of creation: Jan 2007
Date of revision:
Poverty; Senegal; devaluation; pro-poor;
Find related papers by JEL classification:
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ravallion, Martin & Chen, Shaohua, 2003.
"Measuring pro-poor growth,"
Elsevier, vol. 78(1), pages 93-99, January.
- Rama, Martin, 1998. "Wage misalignment in CFA countries: are labor market policies to blame?," Policy Research Working Paper Series 1873, The World Bank.
- Jean Paul Azam & Bruno Biais & Magueye Dia, 2004.
"Privatisation versus Regulation in Developing Economies: The Case of West African Banks,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 13(3), pages 361-394, September.
- Jean Paul Azam & Bruno Biais & Magueye Dia, 2000. "Privatization versus regulation in developing economies: The case of West African banks," William Davidson Institute Working Papers Series 315, William Davidson Institute at the University of Michigan.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Azam, Jean-Paul, 1997. "Public Debt and the Exchange Rate in the CFA France Zone," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(1), pages 54-84, March.
- Azam, Jean-Paul, 1993. "The 'Cote d'Ivoire' model of endogenous growth," European Economic Review, Elsevier, vol. 37(2-3), pages 566-576, April.
- Fall, Abdou & Salmon, Léa & Wodon, Quentin, 2010.
"Impact sur la pauvreté et perceptions de la crise économique au Sénégal: Analyses quantitative et qualitative
[Impact on Poverty and Perceptions of the Economic Crisis in Senegal: Quantitative ," MPRA Paper 34417, University Library of Munich, Germany.
- Dorothée Boccanfuso & Jean Bosco Ki & Caroline Ménard, 2009. "Pro-Poor Growth Measurements in a Multidimensional Model: A Comparative Approach," Cahiers de recherche 09-22, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Djibril Ndoye & Franck Adoho & Prospère Backiny-Yetna & Mariama Fall & Papa Thiecouta Ndiaye & Quentin Wodon, 2009.
"Tendance et profil de la pauvreté au Sénégal de 1994 à 2006,"
Association Africaine pour les Sciences sociales, vol. 4(1-3), pages 1-29.
- Ndoye, Djibril & Adoho, Franck & Backiny-Yetna, Prospere & Fall, Mariama & Ndaye, Papa Thiecouta & Wodon, Quentin, 2009.
"Tendance et profil de la pauvreté au Sénégal de 1994 à 2006
[Poverty Trend and Profile for Senegal from 1994 to 2006]," MPRA Paper 27751, University Library of Munich, Germany.
- Ndoye, Djibril & Adoho, Franck & Backiny-Yetna, Prospere & Fall, Mariama & Ndaye, Papa Thiecouta & Wodon, Quentin, 2009. "Tendance et profil de la pauvreté au Sénégal de 1994 à 2006
- John Cockburn & Erwin Corong & Bernard Decaluwé & Ismaël Fofana & Véronique Robichaud, 2010. "The Gender and Poverty Impacts of Trade Liberalization in Senegal," Cahiers de recherche 1013, CIRPEE.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.