91607 IDA at Work Senegal: Rallying Support for Growth F aced with external and internal shocks since 2006, including the 2009 global financial crisis, Senegal, with support from the International Development Association (IDA) support, has made progress towards fiscal consolidation, and has strengthened its regulatory framework, and increased private sector participation in the provision of water and telecommunica­ tions services. IDA has also helped increase access to education, health services, nutri- tion, and basic infrastructure. Challenge Senegal is a low-income country that has, over the last decade, moved on a range of policy and institutional reforms. However, challenges remain, specifically in the following areas: (i) While economic growth has been encouraging, its rate has been far less than what is needed for Senegal to achieve the goal of halving the share of the population living below US$1 per day by 2015. The proportion of the population living in poverty, (US$2/day) at 60 percent for 2008, is lower that the Sub-Saharan Africa (SSA) average of 73 percent. The absolute poverty rate (at 1.25US$/day) was 34 percent in 2008, against an average 51 percent across SSA; (ii) At the same time, rapid urbanization puts increased pres- sure on existing services and infrastructure, and the urban poor have been particularly vulnerable to the repeated shocks since 2008; (iii) Senegal continues to face the challenges of promot- ing structural changes to spur greater job creation, economic diversification, territorial and regional integration, and creation of economic opportunities beyond the capital city of Dakar; (iv) Other major hurdles for Senegal are to services, as well as the need for increased improve the investment climate, promote investments in education, health and nutri- private sector development, and improve tion, and enhanced participation of local public service delivery. Improving gover- communities in decision-making through nance, in particular the respect for the rule decentralization and social funds. of law and transparent and efficient use of public resources, is a prerequisite if Senegal Addressing complex cross- is to meet these challenges. sectoral issues Approach ▪▪IDA’s large involvement in infrastructure, rural development, and social services has Since 1994, about one-fourth of the total allowed it to tackle challenges from several lending to Senegal has been provided through angles at once. For example, investments eleven policy operations that directly sup- in infrastructure benefit rural communities port the government’s strong reform efforts, and stimulate agricultural growth. Like- particularly in the areas of private sector wise, better access to clean water helps development, the agricultural sector, energy, fight water-borne disease and improves trade, public expenditure management, public health outcomes. and delivery of social services. These policy ▪▪Structural reforms and sector-specific loans also helped steer Senegal’s reforms and investments are also mutually reinforc- strengthen its approach to taxes and regula- ing. For example, fiduciary reforms have tions. IDA has also provided 65 investment helped narrow the gap between the cost projects that focus on rural and community of implementing social sector programs development, health, education, nutrition, and resources available from domestic private sector development, energy, water resources and donor support. supply, transport, and urban development. ▪▪Public management reforms have helped IDA projects have sought to reinforce regional improve the allocation of resources within integration over the years through operations the education and health sectors. that cover energy, river basin management, business law, locust eradication, fisheries, Providing a knowledge base and air transport and safety. ▪▪During the last three years IDA has pro- Ensuring consistency duced numerous analytical reports, includ- between macroeconomic ing analyses of Senegal’s economy, poverty and sector-level reforms levels, investment climate as well as its private sector, environment, infrastructure, ▪▪IDA has consistently emphasized laying the non-farm employment, labor markets, and foundations for rapid economic growth, street children. This analytical work serves for example IDA support has stressed as the basis for the design of policies and infrastructure reform to improve the qual- programs that are tailored to tackle Sen- ity and reduce the cost of infrastructure egal’s realities and challenges. 2 Results ful policy and expenditure drive over the past few years, the gross enrollment IDA has been particularly effective in the fol- rate for girls now exceeds that of boys. lowing areas: The gross enrollment rate of children in the poorest quintile increased from 52.3 Providing continuous support percent in 2001 to 67 percent in 2005. for policy reform • At secondary level, the gross enrollment rate stood at 40 percent in 2009, a one ▪▪IDA’s eleven adjustment/development pol- third increase from 29 percent in 2005. icy credits included four poverty reduction • Maternal mortality has declined from 510 support operations, which have addressed per 100,000 live births in 1992 to 401 in key constraints to growth. The current 2005, the year of the last Demographic series supports reforms to enhance both and Health Survey (DHS) in Senegal. private sector development and human • Approximately 24 percent of children development, as well as mitigate vulner- under the age of five are reached by an abilities and strengthen governance. integrated package of community nutri- tion activities. Capacity building and • Coverage of households using insecticide development of social services treated nets was 45 percent in 2006. More than a million nets have been dis- ▪▪IDA has helped increase access to educa- tributed since. tion, health services, nutrition, and basic ▪▪IDA has helped increase access to infrastructure and has focused on improving water and sanitation services. In 2009, the quality of services, as well as enhanc- access to water in urban areas reached ing gender equity and balancing regional 98 percent, which is high by SSA stan- disparities. dard, and 75.5 percent in rural areas. ▪▪IDA’s comprehensive (or sector-wide) Access to sanitation in urban areas has approaches to health and education have reached 63.4 percent. In rural areas, helped Senegal formulate long-term strate- access is only 27.5 percent and a new gies and improve aid effectiveness in these batch of reforms is being supported by sectors. As a result, some of Senegal’s social donors, including IDA, to improve the indicators have improved. For example: institutional framework and scale up • Gross primary school enrollment rate water and sanitation delivery services increased from 81 percent in 2005 to 92 in rural areas. percent in 2009. The dynamics of access at the early grades remain strong: the IDA Contribution intake rate to grade 1, which was at 96 percent in 2005, has reached 117 per- IDA’s assistance to Senegal is governed by its cent in 2009. Country Assistance Strategy (CAS) for 2007- • At primary level, completion rate 2010 which selectively supports priorities set reached 55.7 percent in 2007. forth in Senegal’s Poverty Reduction Strategy. • Inequity in school enrollment has been The CAS is based on three main pillars: (i) reduced at primary level. With a force- Accelerated growth/ wealth creation, (ii) 3 Human development/shared growth, (iii) progress has been made in recent years in Rural and urban synergies. The CAS also coordinating development assistance in Sen- focuses on better governance through four egal, in accordance with the Paris Declaration core principles to ensure that governance con- on Aid Effectiveness. Through its partnership siderations are woven into all IDA programs: on harmonization and alignment, IDA lever- (i) improving transparency and efficiency in ages aid from other donors in Senegal. the use of public resources; (ii) increasing public sector accountability; (iii) strengthen- Close collaboration in the design of budget ing and modernizing the judicial system; and support operations includes the adoption of (iv) enhancing mechanisms for private sector a Framework Agreement on Budget Support governance. (Accord Cadre pour les Appuis Budgétaires or ACAB) in 2008. Though the ACAB mechanism As of August 2010, the IDA portfolio included is still in its infancy, substantial progress 18 active credits for a total commitment of has been made with the adoption of joint US$673 million and an undisbursed balance of monitoring indicators, a regular quarterly about US$446 million. Some credits are pro- meeting of a Steering Committee chaired by grammatic and envisage a series of several the Prime Minister, and a multi-donor trust individual projects, while others are indi- fund supporting the budgetary reforms. The vidual investment credits. The portfolio also consolidation of donor Project Implementa- includes a development policy operation in tion Units in the water sector is also a move the energy sector, and two emergency credits. in the right direction. The last Consultative In addition, IDA is implementing a number of Group meeting took place in October 2007, trust fund operations, and regional projects endorsing the government’s Poverty Reduction covering Senegal amongst other countries, in Strategy Paper (PRSP) with financial commit- areas like fisheries, air transport, agricultural ments totaling US$3.9 billion and agreeing on productivity and electric power generation follow-up consultations via quarterly meet- and distribution. ings in Dakar. Partners Moving Forward Because of its strategic role, stable policy envi- A Country Partnership Strategy, aligned with ronment and broadly favorable development an updated PRSP, will be prepared during outcomes, Senegal’s development program 2011 and lay the groundwork for deepening continues to benefit from foreign assistance. the focus of Bank support in addressing the More than 50 donor countries and agencies key challenges. are active in Senegal, with most bilateral and multilateral development agencies having an Beneficiaries active presence in Senegal. The World Bank, the European Union, France, and the United The Rural Infrastructure Development Proj- States are the largest contributors. One of the ect assisted women’s participation in deci- objectives of donor coordination is to reduce sion-making on rural development: One of the aid-related administrative burden on the challenges in the late 1990s was creating the Senegalese administration. Considerable effective local governance in Africa’s oldest 4 democracy and increasing community partici- The input of women impacted on the devel- pation in local decision-making. The Project opment priorities, and allowed a broader approached this through the establishment of spectrum of needs to be met; for example consultative committees, comprising elected while men requested funding for cattle stock, members of local communities and civil women identified water-points as a prior- society representatives, and by establishing ity community need. By 2004, the first 100 a rule according to which at least one-third target communities were doing better than of the consultative committee members were wealthier counterparts; they had succeeded to be women. Initial resistance against the in identifying and meeting communal needs, participation of women in decision-making such as water, health care, education, and bodies was successfully overcome by reducing other services. In fact, more communities the mandatory community contributions to demanded to be covered by project activities micro-projects for communities with higher than was possible with the limited coverage involvement of women in these committees. of 100 local communities. Last updated September 2010. http://www.worldbank.org/ida 5