Poverty Profile An analysis of the 1992 Priority Household Survey reveals that, during the harvest season in 1991/1992, about 33 percent of the entire population could not secure a minimum caloric intake of 2,400 calories per adult equivalent per day. Poverty in Senegal is essentially a rural phenomenon, with over 80 percent of poor households living in rural areas. However, urban poverty is quite significant in Dakar where the incidence of poverty is estimated at 12 percent. Many of the urban poor live in unsanitary conditions in peri-urban areas. Overall, poverty is concentrated in the informal sector (agriculture and non-agricultural activities). The key determinants of poverty at the individual level are the level of capital (both human and physical) used in the activity and the extended family.
Incentive and Regulatory Framework The assessment examines the impact of the tax and tariff system, the preliminary effects of the 1994 devaluation, and the implications of land tenure arrangements. It was found that taxation on basic goods such as fuel, rice, and sugar is regressive. Furthermore, these preliminary results seem to indicate that the devaluation may have hurt the poor since many of the basic commodities consumed by them are imported. The land tenure system tends to reinforce incentives to use land in a manner that is not environmentally sustainable. This is bound to exacerbate poverty in the long run.
Public Expenditures No thorough public expenditure review was undertaken. However, it was noted that spending on operations and maintenance in key social sectors such as education dropped to low levels.
Safety Net Family ties or ethnic networks provide the basis for the traditional safety net. This operates through social functions such as ceremonies where the poor have an opportunity to receive transfers in cash or in kind. However, it must be noted that the system favors more current consumption than investment in productive activities. Furthermore, those who fall through the cracks of the traditional social safety net tend to be forced into high-risk activities such as borrowing at very high interest rates, prostitution, or begging. Also, the formal sector seems to provide more for the nonpoor than for the neediest.
Poverty Alleviation Strategy The basic guiding principle is to adopt comprehensive and sustainable policies to increase the competitiveness of the economy and to reverse the regressivity and the distorted nature of the fiscal system. In particular, it is recommended that family planning services be expanded to rural areas and that emphasis be given to increasing literacy among women. Cost recovery programs in the poorest regions must be monitored, and the increased use of generic drugs must be considered. Finally, AGETIP operations should be extended to rural areas.
Statistical System The completion of the Priority Survey represents a significant step forward in improving the statistical system in Senegal. The second household survey provides the information that was missing from the first and will allow the database for poverty analysis to be consolidated. To reap the full potential benefits from this consolidated database, it important that the data be widely available to a large audience and analyzed. This issue is being pursued in the context of future Bank work.
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