Removal Of Subsides The Economy Of Senegal Depends On...

Removal of subsides The economy of Senegal depends on agriculture, particularly the groundnut and cotton farming, which accounts for about 50% of export income (World Bank, 1989). This is due to the countries significance to this sector, after independence the government put in place strategies to increase groundnut production, hence the introduction of a credit system to assist farmers purchase seeds, farm equipment’s and fertilizers at reduced price (Dembele, 2003). This followed the setting up of boards of committees tasked with the responsibilities to set up prices at which groundnut were sold at each season. Further to this, private traders were also prevented from coming into the groundnut market. However, with the introduction of the structural adjustment programme (SAF) the government was forced to remove subsides and abolish the credit scheme for the farmers, also was the dissolution of the marketing board which set prices for the groundnut farmer. While removal of subsides for farmers w as imposed on the Senegalese government led to price increase in food commodity, subsequent many people going hungry as they could not afford basic food commodities, notwithstanding the human right abuse (Fonjong,2014). Thought-provoking, during the same period the industrialised world including; United States of America (USA) and Europe were subsidizing their farmers with billions of dollars. Furthermore, the Senegalese government was asked to remove restrictions of importationShow MoreRelatedThe Impact Of Transnational Industries And Global Financial Institutions Such As The World Bank And International Monetary Fund2146 Words   |  9 Pagesand IMF are the two main global financial institutions that lend money to various developed and developing countries. According to Wolff (2013) these institutions came into being in 1944 after the Bretton woods conference to establish a firm global economy after the world war two. The purpose of these institutions was to stimulate a stable de velopment and offer unconditional loans to nations in economic crisis so as to achieve their developmental needs (Wolff, 2013). However, these never saw the daylight