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Country Commercial Guides for FY 2000: Senegal Report prepared by U.S. Embassy Dakar, released July 1999    Note*

CHAPTER III. POLITICAL ENVIRONMENT

Nature of Political Relationship with the United States

Senegal enjoys an excellent relationship with the United States. The Government of Senegal is known and respected for its able diplomats and has often been supportive of the United States, particularly in the United Nations, where it has frequently contributed troops for peacekeeping activities. About 300 Senegalese students come to the United States each year for study. The U.S. Agency for International Development provides approximately 20-25 million dollars per year in assistance.

Major Political Issues Affecting Business Climate

Businesses do not perceive any immediate instability in the political situation. There is concern for the medium term about the growing pressures of population growth and rapid, uncontrolled urbanization, as well as the sporadic, but longstanding activity of separatists in the southern Casamance region. In the Casamance, the Senegalese Government has launched peace efforts that led to direct talks with the separatists. However, since early 2000, there has been no progress in the peace process and no schedule of talks.

Despite periods of uncertainty over the last year, the political situation is generally stable. Senegal has a well-entrenched, multiparty, democratic system; with at least 45 registered political parties. Presidential elections held in February 2000 amidst claims of fraud and heated political rhetoric over questions of transparency and fairness in the administration of the elections raised stability concerns among much of Senegal's business community. Sporadic acts of violence and general uncertainty surrounding the elections caused some delays in investment decisions. However, the actual elections were largely peaceful, considered free and fair by most local and international observers.

The victory of long-time opposition leader Abdoulaye Wade resulted in the first peaceful transfer of power from one party to another in 40 years. The new President came to power on April 1, 2000, but his new government has needed time to organize itself. The business community is still awaiting a clear indication of the orientation of the government's policies and programs. The combination of the campaign, elections and transition has resulted in an extended period in which the government has deferred important or difficult decisions and initiatives that affect the general business climate in Senegal.

The Senegalese Army is non-political and highly professional. While the judiciary is in need of strengthening as an independent institution, there is generally de facto and de jure respect for civil liberties, including freedom of speech and press, association and movement, and respect for the right of citizens to change their government.

Brief Synopsis of Political System, Schedule for Elections, and Orientation of Major Political Parties

Senegal is a republic with an elected President, Abdoulaye Wade, elected to office in a March 2000. President Wade, leader of the Senegalese Democratic Party (PDS) defeated Abdou Diouf, his long-time political foe who had held the Senegalese presidency since 1981. Under the current Senegalese constitution, the presidential mandate runs for seven years. While the Senegalese political system centralizes power in the presidency, during the recent presidential campaign, candidate Wade said he planned to seek changes that would redistribute some of that authority in a parliamentary system. The exact nature of any such change is now at the center of the political debate in Senegal.

The country has a bicameral legislature, which has been controlled by now former President Diouf's Socialist Party (PS) since independence from France in 1960. The PS most recently reaffirmed that control in legislative elections held in May 1998, capturing 93 of the 140 National Assembly seats. A new, controversial 60-member upper chamber, called the Senate, was first constituted in February 1999. An Electoral College comprised of elected regional and local officials selects 45 of its members and expatriate Senegalese elects three others. The remaining 12 seats are appointed by the President. With the exception of two minor party members who fill appointed seats, the new Senate is entirely made up of PS members. President Wade campaigned on a promise to dissolve the Senate, but since taking office has not specified when and how this would be done. The next legislative elections would normally not occur until 2003. However, if President Wade moves forward with plans to change the political system, possibly through a national referendum, the National Assembly and Senate could be dissolved and legislative elections held as soon as early 2001. Political parties are already preparing themselves for this possibility.

During its 40 years in power, the PS governed Senegal in the African Socialist mold, advocating a wide network of state-sponsored social programs and the state's direct involvement in and close direction of the economy. Limited natural resources and a faltering economy limited the reaches of this social network, and failure of state-owned companies to drive the economy and provide revenues to the government led to a gradual change toward a more market oriented approach. In 1994, the PS government began a program of economic reform that sought to liberalize the economy, opening the country's markets by eliminating price controls, subsidies and monopoly arrangements, and by privatizing state-owned enterprises.

Members of the coalition of major opposition parties that make up the new Wade government have described themselves as liberal and free-market oriented. However, neither clear policy statements nor a pattern of policy actions has yet emerged which would clarify the orientation of these parties in governing the country. There is an ongoing debate within the government and among all major parties as to the most appropriate role of the government in Senegal's economy.