After its economy contracted by 2.1% in 1993 Senegal instituted a major economic reform program with the support of international donors. This reform began with a 50 percent devaluation of the country’s currency (the CFA franc). Government price controls and subsidies were also dismantled. As a result, Senegal’s inflation went down, investment went up, and the gross domestic product rose approximately 5% a year between 1995 and 2001.
The main industries include food processing, mining, cement, artificial fertilizer, chemicals, textiles, refining imported petroleum, and tourism. Exports include fish, chemicals, cotton, fabrics, groundnuts, and calcium phosphate. The principal foreign market is India with 26.7% of exports (as of 1998). Other foreign markets include the United States, Italy and the United Kingdom.
As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration with a unified external tariff. Senegal is also a member of the Organization for the Harmonization of Business Law in Africa.
Senegal realized full Internet connectivity in 1996, creating a mini-boom in information technology-based services. Private activity now accounts for 82 percent of its GDP. On the negative side, Senegal faces deep-seated urban problems of chronic high unemployment, socioeconomic disparity, juvenile delinquency, and drug addiction.
Senegal is a major recipient of international development assistance. Donors include the United States Agency for International Development (USAID), Japan, France and China. Over 3000 Peace Corps Volunteers have served in Senegal since 1963.