The Political Economy of Risk and Choice in Senegal
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THE POLITICAL ECONOMY OF RISK AND CHOICE IN SENEGAL The Research Program in Development Studies of the Woodrow Wilson School of Public and International Affairs, Princeton University is a group of social scientists interested in developing countries. The program has previously published a series of books, The Political Economy of Income Distribution in Developing Countries, under the general editorship of Henry Bienen: I. TURKEYErgun Ozbudun and Aydin Ulusan, editors II. NIGERIAHenry Bienen and V.P. Diejomaoh, editors III. EGYPTGouda Abdel-Khalek and Robert Tignor, editors IV. MEXICOPedro Aspe and Paul E. Sigmund, editors THE POLITICAL ECONOMY OF RISK AND CHOICE IN SENEGAL Edited by Mark Gersovitz and John Waterbury Princeton University FRANK CASS First published 1987 in Great Britain by FRANK CASS & CO. LTD. Gainsborough House, Gainsborough Road, London, E11 1RS, England This edition published in the Taylor & Francis e-Library, 2005. “To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” and in the United States of America by FRANK CASS & CO. LTD. c/o Biblio Distribution Centre 81 Adams Drive, P.O. Box 327, Totowa, N.J. 07511 This collection copyright © 1987 Frank Cass & Co. Ltd. British Library Cataloguing in Publication Data The Political economy of risk and choice in Senegal. 1. Senegal—Economic conditions I. Gersovitz, Mark II. Waterbury, John 330.996’305 HC1045 ISBN 0-203-98826-4 Master e-book ISBN ISBN 0-7146-3297-X (Print Edition) Library of Congress Cataloging-in-Publication Data The Political economy of risk and choice in Senegal. Bibliography: p Includes index. 1. Senegal—Economic conditions. 2. Senegal—Economic policy. I. Gersovitz, Mark. II. Waterbury, John. HC1045.P65 1987 338.966’3 86–26859 ISBN 0-7146-3297-X All rights reserved. No part of this publication may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of Frank Cass and Company Limited. Contents Preface vii Henry Bienen Glossary xi Introduction 1 Mark GersovitzJohn Waterbury 1. Some Sources and Implications of Uncertainty in the Senegalese Economy 7 Mark Gersovitz 2. The Senegalese Peasant: How Good is Our Conventional Wisdom? 27 John Waterbury Appendix 40 Laura Tuck 3. Senegal’s Cooperative Experience, 1907–1960 49 Robert Tignor 4. Circulaire 32 Revisited: Prospects for Revitalizing the Senegalese Cooperative Movement in the 1980s 65 Sheldon Gellar 5. Financial Markets in Rural Senegal 82 Laura Tuck 6. Dimensions of State Intervention in the Groundnut Basin 96 John Waterbury 7. Politics of Agricultural Price Decision-Making in Senegal 113 Sidi Jammeh 8. Small Countries in Monetary Unions: The Choice of Senegal 124 Jorge de Macedo Appendix 142 Jean-Claude Nascimento 9. Aid, Structural Adjustment and Senegalese Agriculture 145 John Lewis The Authors 166 Bibliography 167 Index 175 MAP Senegal: Population Densities and Rainfall Isohyets ix Preface The Political Economy of Risk and Choice in Senegal grows out of the efforts and concerns of many people and institutions. The Ministry of Plan in the Government of Senegal and the United States Agency for International Development Dakar called on the Research Program in Development Studies of the Woodrow Wilson School to address Senegal’s rural development problems in the light of RPDS experience doing policy relevant research in African countries. RPDS worked closely with the Ministry of Plan and USAID, Dakar on this effort from 1982 to 1984. In particular, we are grateful to the following people for their interest, ideas, and support for our work. In Dakar, David Shear, Director of US AID was the driving force behind the research from the start. He has been surely one of the most innovative USAID officials in the field. The Ministry of Planning and Cooperation of the Government of Senegal was our principal interlocutor in the elaboration and execution of the project. We are particularly grateful for the support we received from the Director of Planning, Malick Sow, Technical Counselor Abdou Laye Mar Dieye, and our project managers Mademba Ndiaye and Badara Sy. Also in USAID, Norman Rifkin and Donald Rassekh, David Kingsberry and Sam Re especially, helped with complicated financial and administrative problems. In Washington, Francis Johnson, who was desk officer for Senegal when we began the project, was instrumental in helping us to get off the ground. Jacqueline Damon of USAID Dakar was most helpful as was Kathryn Craven. Also Edouard Benjamin, IBRD Dakar and Johann de Leede at IBRD, Washington, were excellent colleagues. François Simon of the CCEE, Hadj Oumar Touré, Director of SODEVA, Tidiane Sy, Director of ENEA, Jacques Faye of ISRA, James Bingen of Michigan State University, all made important contributions to our work. Also in the Government of Senegal, Mamadou Dieye at the Ministry of Plan, and Alain Marais, in the Office of the Prime Minister, were a source of great support. At the Ministry of Finance, we received help from Idrissa Thiam—now with the World Bank— and Ousmane Sane. At the BCEAO Senegal Agency, we wish to thank Mamadou Niang. Alassane Ouattara, director of Research at the BCEAO—now at the IMF —gave advice and support. Our academic colleagues in Senegal made our task very pleasant and rewarding. Moustapha Kasse, chairman of the Department of Economics at the University of Dakar-Fann, and his colleagues heard our ideas from the start and provided enthusiastic support. We also thank Marc Raffinot of the University of Paris-IX (Dauphine) then visiting the Ecole Supérieure de Gestion des Entreprises, and Jean-Claude Nascimento of ESGE. Patrick and Sylviane Guillaumont of the University of Clermont I in France and their colleagues shared with us their insights and experience about African monetary issues. Papa Assane Diouf, former director of the Senegalese Co-operative Service and his successor Mansour Seck gave generous assistance to Sheldon Gellar, giving him access to their Service and to the Senegalese cooperative movement. Thanks also go to Matar Ndiouga N’Diaye, Papa Sene, Ibrahima Baby, Momar Seck, Sidaty Diagne, Abdoulaye Diagne, and Abdoulaye Gueye, Issa N’Diaye, Ibrahima Ba, Bassirou Agne, Ibrahima Sarr, and Moussa N’Diaye, officials with the Cooperative Service and Lutz Sackniess and Hubert Schillinger of the Frederick Ebert Foundation who all provided an insider’s view of the cooperative movement. We are grateful to the commentators who participated in a USAID/Ministry of Plan/RPDS Conference in Dakar, which helped us to refine our work. We are also grateful to a number of Princeton people for their efforts. Our colleagues Mark Montgomery and Joseph Stiglitz made important contributions to our thinking. David Spiro worked valiantly with the manuscript and bibliography. Ellen Goldstein helped in the field. Laura Tuck has written her own excellent contribution to the volume. She also handled many administrative tasks in the field. Agnes Pearson was, as always a helpful and cheerful business manager in the Woodrow Wilson School. Dean of the Woodrow Wilson School, Donald Stokes supported our research. Jerri Kavanagh was, once again, administrative secretary, budget officer, travel agent. At the Office of Research and Projects Administration Glen Davis was most helpful. I am appreciative of the work of my colleagues who have contributed to the volume and especially to the two editors, Mark Gersovitz and John Waterbury. We benefitted from the hospitality and warmth of many Senegalese friends and colleagues. We hope the volume will be of some use to the Government of Senegal and to USAID, who supported the research. HENRY BIENEN viii Princeton University Glossary ACP African, Caribbean, Pacific countries party to the Lomé Agreement ADB African Development Bank Animateur Community development cadre AOF Afrique Occidentale Française ATCR agent technique de la communauté rurale assakas portion of crop given to religious leaders aval endorsement, guarantee bana-bana rural petty trade barème overhead charge on producer price BCEAO Banque Centrale des Etats de l’ Afrique de l’Ouest BDS Bloc Démocratique Sénégallais BNDS Banque Nationale de Développement du Sénégal BOM Bureau d’Organisation et de Méthodes BSD Banque Sénégalaise de Développement carré extended household CCCE Caisse Centrale de Coopération Economique CFA Currency of UMOA (Coopération Financière en Afrique) chef de carré head of communal household unit CIEH Comité Interafricain d’Etudes Hydrauliques CILSS Comité Permanent Inter-Etats de Lutte contre la Sécheresse dans le Sahel CNCAS Caisse Nationale de Credit Agricole Sénégalaise cotisation dues CPSP Caisse de Péréquation et de Stabilisation des Prix CSPT Compagnie Sénégalaise des Phosphates de Taiba CSS Compagnie Sucrière Sénégalaise daara Murid pioneer villages of unmarried males DAC Development Assistance Committee of the OECD démariage thinning of plants DS Direction de la Statistique désenclavement reducing regional isolation EB encadreur de base économie de traite colonial economic trading sy stem based on groundnuts EEC European Economic Community EFF Extended Funding Facility of the IMF EMS European Monetary System ENEA Ecole Nationale d’Economie Appliquée escale trading post exploitations farming units FAC Fonds d’ Assistance et de Coopération FAO Food and Agriculture Organization Ferlo pastoral transhumant zone filière arachide groundnut production and marketing system GOPEC Groupement