Senegal is one of the world's poorest countries, with approximately 36 percent of its population living on less than US$1.25/day. On the United Nations Development Programme's 2009 human development index, Senegal ranks 166 out of 182 countries. As a result of an inequitable distribution of wealth, there are relatively higher poverty levels in rural areas.
Demographic pressure is a major concern: Senegal's population is estimated at 12.4 million, with 68 percent under the age of 25 and 58 percent living in rural areas. The rate of productivity is low, and unemployment and underemployment rates are high, especially among youth. With Senegal's annual population growth of about 3 percent, some 100,000 young individuals enter the labour market each year. Not everyone has access to basic education, and illiteracy is widespread, especially among women and girls. Environmental degradation is an obstacle to development in some regions, where accelerating soil erosion, salinization, and the disappearance of vegetation also impact food security.
The World Bank currently considers Senegal to be moderately vulnerable with respect to food security. During 2008, Senegal experienced a food crisis, caused mainly by low rainfall, decreased food production, and a sharp price increase for basic commodities. To counter such situations, women often develop strategies for the survival of their families, for instance, taking on low-paying or risky employment in order to feed their families. This practice reinforces inequalities between women and men, which in turn, hinders development.
Since 1982, the Casamance region, a poor, geographically isolated areas in southern Senegal, has suffered a low-intensity conflict led by a separatist movement. In spite of the signing of a peace agreement in 2004, the conflict and its consequences continue to hinder development of the region. The return to a definitive peace will in part depend on the creation of economic opportunities for the region and its people, through, for example, increased agri-food production.
Senegal provides strong leadership in the continent and is a hub of economic and political stability in the West African region. Senegal also plays an important role in peace talks and peacekeeping missions in Africa, for instance, in Sudan.
Senegal has identified as follows its most pressing needs under the four strategic axes of its Poverty Reduction Strategy Paper (PRSP II) for 2006-2010:
In 2009, as part of Canada's new aid effectiveness agenda, Senegal was selected by CIDA as one of 20 countries of focus. CIDA's objective in Senegal is to contribute to reducing household poverty by 50 percent by 2015. This objective is aligned directly with Senegal's PRSP II goal.
CIDA will contribute to:
CIDA will contribute to Senegal's food security by scaling up its programming in agriculture and agri-food to support economic development in the region of Casamance and the region of Niayes. This will:
CIDA will also support the Government of Senegal's decentralization efforts, including local governments' ability to deliver services. At the same time, it will continue to work toward the availability, in rural areas, of microfinance institutions to provide more access to financial products and services.
Donor harmonization and coordination under the leadership of Senegal's government is improving from year to year, thereby contributing to the government's greater ownership of the development process and prompting greater effectiveness for donors as they work jointly to effect change.
The donors' division of labour is well organized. Canada recently became the lead donor in the education sector, providing CIDA the opportunity to play a significant role in improving donor coordination and harmonization.
A joint action plan for aid effectiveness in Senegal for 2008-2010 was adopted in May 2008. The plan identifies a series of measures and targets, including greater donor alignment to sector programs, to be achieved by 2010.