Report No. 40344-SN Senegal Looking for Work -- The Road to Prosperity Country Economic Memorandum Volume II: Annexes September 2007 PREM 4 Africa Region Document of the World Bank GDP Gross Domestic Product GIPA Groupement Interprofessionnel des Artisans (Interprofessional Grouping of Artisans) GPHC General Population and Housing Census I C A Investment Climate Assessment ICs Industries Chimiques du She'gal (Chemical industries of Senegal) IFAD InternationalFundfor Agricultural Development I L O InternationalLabor Office IPRES Institut de Pre'voyanceRetraite du Se'ne'gal (Retirement Institute of Senegal) MEF Ministry of the Economy and Finance MIGA Multilateral Investment Guarantee Agency NDV Net Discounted Value NGO Non Governmental Organization NINEA Nume'ro d 'Indentification Nationale des Entreprises Agre'es (National identification number of approved businesses) NPV Net Present Value OECD Organization for Economic Co-operation and Development OHADA Organization for the Harmonization of Business Law in Africa O M OrganisationsMutualistes (Mutual Aid organization) ONEQ Observatoire National de 1'Emploi et des Qualifications (National Observatory of Employment and Qualifications) ONFP Office National de Formation Professionnelle (National Professional Training Office) PA10 Permanences d'Accuei1 et d'Orientation PDEF Programme De'cennalpour I'Education et la Formation (Ten-Year Education and Training Programme) PROMER Projet de Promotion des Micro-Entreprises Rurales (Project for the Promotion of Rural Micro Enterprises) PRSP Poverty Reduction Strategy Paper REVA Retour des Emigre's vers I'Agriculture (Return to Agriculture project) RGPH Recensement Ge'ne'ralde Population et de I'Habitat ROME Re'pertoire Ope'rationnel des Me'tiers (Directory of Trades) SENELEC SociCtC Nationale d'ElectricitC (National Electricity Company) SIGFIP SystPmeInte'gre'de Gestion des Finances Publiques (Integrated public finance management system) SMAG Salaire MinimumAgricole Garanti (Guaranteed MinimumWage for FarmLabor) SME Small and Medium-sized Enterprises SMI Small and Medium-sized Industries SMIG Salaire Minimum Interprofessionnel Garanti (Guaranteed MinimumInteroccupational Wage) SONATEL Socie'te'Nationale de Te'le'communication(National Telecommunications Company) U L C UnitLabor Cost UNACOIS Union Nationale des CommerGantset Industriels du Se'ne'gal(National Union of SenegaleseMerchants and Industrialists) UNSAS Union Nationale des Syndicats Autonomes du Se'ne'gal(Union of Autonomous Labor Unions of Senegal) VAE Validation of Acquired Experience VAT Value-added Tax WAEMU West African Economic and Monetary Union 1 Vice President: Obiageli Ezekwesili (AFRVP) Country Director: Madani M.Tall (AFCF1) Sector Director: Sudhir Shetty (AFTPM) Sector Manager: Antonella Bassani (AFTP4) Task Team Leader: Jacques Morisset (AFTP4) TABLE OFCONTENTS 1 ANNEX 2: STATISTICALSOURCES ................................................................................................ ANNEX 1: DEFINITIONS................................................................................................................... 3 ANNEX 3: MACROECONOMICRESULTS...................................................................................... 6 ANNEX4: EMPLOYMENTSITUATION -- TOTAL/URBAN/RURAL........................................... ANNEX 5: THEGENDERISSUEINTHELABORMARKET........................................................ 8 15 ANNEX 6: CHANGESINEMPLOYMENTAND COMPENSATIONBYSECTOR ...................... 25 ANNEX7: CHANGESINPRODUCTIVITY, WAGES, ANDUNITLABORCOSTS BY SECTOR.................................................................................................................... 30 ANNEX8: ANNEX9: STATUSOFHIGHEREDUCATIONAND RECOMMENDATIONS .......................... PRODUCTIVITY,WAGES, ANDUNITLABORCOSTS BYENTERPRISE..............34 36 ANNEX 10: EMPLOYMENTSTATUSAND POVERTY .................................................................. 42 ANNEX 11: PUBLICINSTITUTIONSRESPONSIBLEFORTHE SUPERVISION ANNEX 12: ACTIVEEMPLOYMENTINSTITUTIONSAND PROGRAMS.................................. ANDREGULATIONOFLABORRELATIONS............................................................ 45 53 ANNEX 1: DEFINITIONS Potentially active or working-age population: This group include all persons o f ether sex between 15 and 64 years old. This definition i s not all time used by the authorities when conducting household surveys and/or general population censuses. In these surveys (or censuses), the population aged 10 years and over (or, respectively, 6 years and over) constitutes the potentially active population. Habitually active population:Those actively employed or unemployed (between 15 and 64 years) during the 12months immediately preceding the survey. Inactivepopulation:All persons (between 15 and 64 years old) who are not active, including pupils and students, women engaged as homemakers, retired persons, the illor disabled, the elderly, andbeggars. Currentlyemployedpopulation:All persons (between 15 and 64 years) who worked at least one hour during the seven days preceding the survey and received financial or nonfinancial compensationor payment for having done so. Habitually employed population: All persons (between 15 and 64 years) who worked on a continuous basis during the 12 months immediately preceding the survey and received financial or nonfinancial compensationor payment for having done so. Currentlyunemployedpersons: All persons (between of 15 and 64 years) who did not work at least one hour during the seven days preceding the survey and are seeking or waiting for a job. Customarilyor permanentlyunemployed persons: All persons (between 15 and 64 years) who did not work continuously during the preceding 12months and are seeking or waiting for ajob. Discouraged unemployedpersons: Unemployed persons who are not seeking work but are available to take up ajob. Underemployedpersons: Persons who worked duringthe week precedingthe survey but did so for fewer hours than the norm (40 hours a day) and are available for taking up an additional job. Independent workers: Independent workers are persons who are sole proprietors or co- owners o f the enterprises inwhich they work, regardless of the legal status o f said enterprises. Independent workers are classified under this heading if they do not engage at the same time ina wage-earning job as their primary activity, inwhich case they would be classified inthe "wage-earner" category. Dependent workers: All persons who are wage-earners or who are non-wage-earners who receive nonfinancial compensation. 1 Employers: Employers are persons who are the sole proprietors or co-owners of the enterprises inwhich they work, regardless o f the legal status thereof, and who employ at least one person as a wage-earner. Employers are classified inthis category ifthey do not engage at the same time in a wage-earning job as their primary activity, in which case they would be classifiedinthe "wage-earner" category. Wage-earners: All dependent workers whose principalsource of income is compensationin the form o f wages. Non-wage-earners: Employees who do not receive financial compensation, generally engagingina family activity. Permanentjob: Ajob which, upon hiring, entails no limit as to employment length. Employedin childlabor:All persons betweenthe ages of 10and 14who worked at least one hour inthe preceding seven days and received financial compensation or payment inkind. Dependencyratio:Ratio of the unemployedpopulationto the number of actively employed. 2 ANNEX 2: STATISTICAL SOURCES This study used four principal statistical sources, which are describedbelow SURVEYS OFTHE POPULATION (CENSUSESand ESAM) Censuses: The two most recent general censuses o f the population were conducted in 1988 and 2002. The response rate to the module on employment and economic activity was 82 percent. Household surveys (ESAM-I et ESAM-II): The first and second household surveys were conducted in 1995 and 2002, respectively. They are part o f the program o f activities relating to monitoring the living conditions o f the people. The methodology for ESAM-I1was as follows: First, informationwas gathered during four-month periods called passages.Then, the basic questionnaire was prepared, consisting o f 24 sections inthree notebooks: (i)households; (ii) spending;and(iii) daily food. The sample for ESAM-I1included 6,624 households, o f which 3,384 were urban and 3,240 rural. There were 283 surveying districts inurban areas and 270 inrural areas, each including 23 households per district. The polling base was defined on the basis o f the sample with a view to achieving geographic stratificationby area o fresidence andby region. NATIONAL ACCOUNTS The macroeconomic data used in the report are drawn mainly from the report on the revised national accounts for 1980 to 2004, published in December 2005 by the Direction de la Prevision et de la Statistique, which subsequently became the National Statistics and Demographics Agency (ANSD). These accounts use base year 1999 and are drawn up in accordance with the methodology o f the UnitedNations System o f National Accounts (SNA 93). The nomenclature o f economic activities covers 42 branches grouped in three major sectors (primary, secondary, and tertiary). The value added by branch o f activity i s broken down between the modern sector and the informal sector, as i s the actively employed population by branch o f activity. Inthe national accounts, employment i s regarded as formal (or informal) if it i s carried out in an enterprise regardedas formal (or informal); a formal enterprise has a NINEAor taxpayer number. SURVEYS OF ENTERPRISES(ICA AND 1-2-3) The data used inthe report are drawn mainly from two surveys conductedin Senegal in2002. ICA Survey: The first of these surveys is onthe investmentclimate, and was conductedbythe World Bank. Its aim was to gather data on the characteristics o f firms so as to evaluate the productivity differentials between types of enterprises within a country and across countries. Its aim was also to provide decision-makers with a business perspective on ways o f improving the environment for private firms and on increasing investment and employment. It covered 262 enterprises in the manufacturing sector and 1,637 employees of those enterprises. The information gathered on the enterprises related to their characteristics, technology, commercial activities, business environment, labor force, capital, etc. Data were 3 sought on some 969 variables. The information gathered on the employees related to their occupationwithin the enterprise, their level o f education, wage level, etc. Data were sought on about 69 variables. Two databases (Employers and Employees in the manufacturing sector) were developedon the basis o f the informationcollected. 1-2-3 Survey: The second survey known as the 1-2-3 survey was conducted by the Government o f Senegal only inthe urban area o f Dakar. It was carried out in three phases. It was intended to: 0 make it possible to monitor the employment conditions o f households and the functioning o f the labor market, and provide information on the status o f the labor market inDakar; 0 establish production and distribution accounts on the informal sector; 0 cover the productive behavior o f employees inthe informal sector; 0 analyze the means o f including the informal sector in the local productive system (connection with or autonomy in respect o f the modem sector, be it private or public, national or foreign). The first phase, on employment, involved 18,727 observations (individuals surveyed) and 302 variables (information on these individuals). The information gathered related to the characteristics o f their housing, their demographic traits (age, gender, etc.), their level o f education, their current job, their primary and secondary activities, job-seeking, unemployment, etc. A database on workers in both the formal sector (general government, public and private enterprises, etc.) and the informal sector was drawn up on the basis o f this information. The second phase included 1,327 informal sector enterprises (identified duringthe first phase) and 2,030 employees o f these enterprises. The information gathered on the enterprises relate to their characteristics, labor situation, production, expenses and costs, customers/suppliers and competitors, investments/equipment and the financing thereof, their problems and prospects, etc. Information was sought on some 334 variables. The information gathered on the employees related to their demographic traits (age, gender, etc.), their level o f education, their wage level, their seniority, the type o f recruitment, etc. Informationwas sought on about 25 variables. Two databases (Employers and Employees inthe informal sector inDakar) were drawn up on the basis o f this information. Finally, the third phase covered 574 households surveyed and related to a number o f information items (variables) on their consumption. The latter phase was not used in this study owing to its lack o frelevance. The data gathered in these two surveys required many corrections. The data were processed using the STATA statistical program, which made it possible to draw up the five databases referredto above. CUCI DATABASE The Unified Information Collection Center (CUCI) was established in 1976, with the introduction o f the first Senegalese chart o f accounts made mandatory for all enterprises established in Senegal with the exception o f financial institutions. At present, the scope o f coverage o f the CUCI database is all nonfinancial companies and quasi-companies established inSenegal and subject to the SYSCOA chart of accounts. In2005, the databasecovered3,749 enterprises, classified by principal activity. CUCI i s situated within the National Statistics and Demographics Agency (the former Directorate o f Forecastingand Statistics). 4 The enterprise employment data from the CUCI database are broken down into permanent jobs and temporary jobs. The database also provides information on the year in which enterprises were created and/or ceasedactivity. Bydefinition, informal sector enterprises are notcoveredbythe CUCI database. 5 ANNEX3: MACROECONOMICRESULTS Table 1: Key EconomicIndicators Indicator 200 2002 National accounts (as % of GDP at current market prices) Gross domestic product 100 100 100 100 100 100 100 Agriculture 16.9 16.3 13.6 15.5 14.0 14.4 14.7 Industrya 20.5 21.7 22.3 21.5 22.1 21.6 20.2 Services a 62.7 62.0 64.0 63.0 63.9 64.0 65.1 Total Consumption 88.8 90.5 94.4 92.3 90.2 90.9 91.2 Gross domesticfixed investment 20.5 18.4 17.2 21.0 21.1 25.6 26.4 Governmentinvestment 5.6 6.5 7.4 8.5 9.8 10.0 10.7 Privateinvestment (includesincreaseinstocks) 16.0 13.3 11.5 15.4 13.9 15.6 15.6 Exports(GNFS) b 27.9 28.7 28.5 26.8 26.7 25.8 23.3 Imports(GNFS) 37.2 37.8 39.0 39.0 39.8 41.6 43.0 Gross domestic savings 12.3 10.8 8.5 11.8 10.9 9.9 6.6 Gross nationalsavings c 15.0 15.5 13.4 17.8 17.6 17.6 14.4 Memorandum items Gross domestic product 4,692.0 4,881.9 5,350.7 7,617.0 8,102.0 8,639.9 9,196.1 (US$ millionat current prices) Gross nationalproduct per 5 14.4 517.0 556.7 791.3 828.2 867.8 901.6 capita(US$, Atlas method) Real annual growth rates (%,calculated from 1999 prices) Gross domestic product at marketprices 3.2 4.6 0.7 6.7 5.6 5.5 3.3 Gross domestic income 3.2 5.7 0.8 6.3 6.3 5.7 4.6 Real annualper capita growth rates (YO,calculated from 1999 prices) Gross domestic productat market prices 0.7 2.0 -1.8 4.1 3.0 2.9 0.8 Total consumption -1.7 1.9 1.7 0.2 2.1 1.5 0.6 Privateconsumption -4.4 2.5 1.8 0.3 2.0 2.7 1.o Balance of Payments ( v s w Exports(GNFS) b 1,310.2 1,402.4 1,527.6 2,041.0 2,164.5 2,231.4 2,138.9 MerchandiseFOB 921.8 1,004.0 1,069.9 1,404.9 1,538.9 1,543.1 1,420.8 Imports(GNFS)b 1,746.2 1,843.6 2,084.9 2,969.6 3,223.1 3,591.5 3,953.4 MerchandiseFOB 1,340.0 1,429.6 1,609.0 2,308.6 2,544.5 2,872.1 3,201.8 Resourcebalance -436.0 441.2 -557.3 -928.7 -1,058.5 -1,360.1 -1,8 14.5 Netcurrenttransfers 292.8 300.6 394.5 600.8 659.4 782.5 837.4 (includingofficial current transfers) Current accountbalance -253.5 -301.6 -365.4 -470.9 -497.1 -696.0 -1,102.2 (afterofficial capitalgrants) Netprivate foreigndirect 1.2 3.8 16.6 55.8 65.2 100.5 141.2 investment Long-termloans (net) 153.1 122.7 241.3 305.7 317.8 246.3 -1,773.6 Official 123.9 147.8 162.1 175.5 302.2 292.4 343.6 6 Private 116.6 59.0 192.9 269.2 258.4 184.2 217.8 Other capital (net, including -87.45 -84.11 -113.70 -139.03 -242.77 -230.29 -2,335.01 errors and omissions) Change inreserves d 71.2 -20.6 -95.5 -290.3 53.2 213 152.5 Memorandum items Resource balance (% o f -9.3 -9.0 -10.4 -12.2 -13.1 -15.7 -19.7 GDP at current market prices) Realannualgrowth rates (YR87 prices) Merchandise exports -13.00% 10.20% 6.40% 17.20% 16.60% 7.50% 7.30% (FOB) Primary -15.90% 14.70% 10.20% -3.00% 10.90% 6.20% 4.40% Manufactures -1.80% 5.20% -0.10% 20.80% 11.00% -1.10% 0.30% Merchandise imports -6.40% 13.10% 9.80% 20.70% 18.00% 6.10% 6.40% ( C W Publicfinance (as YOof GDP at current marketprices) e Current revenues 16.9 16.9 17.9 18.2 18.5 19.4 19.7 Current expenditures 12.3 14.4 12.9 13.4 13.2 13.9 16.1 Current account surplus (+) 4.5 2.4 5.0 4.8 5.3 5.5 3.7 or deficit (-) Capital expenditure 6.8 6.5 7.4 8.5 9.8 10.0 10.7 Foreign financing 0.5 1.5 1.8 1.7 3.4 3.6 2.9 Monetaryindicators M2/GDP (at current market 4.2 3.9 3.8 3.1 2.9 2.9 3.1 prices) Growth of M2 (%) 10.7 14.5 7.6 31.5 12.9 7.4 0.6 Private sector credit growth / 1.74 0.73 -0.89 2.03 2.44 1.43 1.03 total credit growth (%) Priceindices (YR87 =loo) Merchandiseexport price index 146.2 144.5 144.7 145 145.1 144.8 144.9 Merchandise import price index 172.2 160.9 162.8 172.6 174.1 178.1 179.7 Merchandiseterms o ftrade index 84.9 89.8 88.9 84 83.4 81.3 80.6 Real exchange rate (vSS/LCU)f 50.5 51.4 52.8 54.3 54.4 55.9 57.4 Consumer price index (% growth rate) 0.7 3.0 2.3 0.0 0.5 1.7 1.9 GDP deflator (% growth rate) 1.9 2.6 3.3 -0.1 0.4 2.4 3.1 7 d E 3 P- 3 2 - 2 2 3 m Wm m m mW -5 N -P W 0:m t; W m W N -e 2 Table3: EmploymentSituationof Childrenunder Age 15 and Individuals over Age 64, by Area of Residence <15ye iof age I Xi4 years of age Dakar Other Dakar Other 1 urban urban Rural urban urban Rural Total a1,762 ~~ Employed 27,080 2a,78i 303,730 359,591 10,023 16,291 108,076 Unemployed 13,318 13,265 49,651 76,234 937 798 1,130 2,865 Active 40,398 42,046 353,381 435,825 10,960 17,089 82,892 110,941 Educatiodtraining 298,839 313,087 599,887 1,2 11,813 449 341 522 1,312 Persons at home 2a,m 32,173 184,056 244,797 8,606 7,677 12,940 29,223 Retiredand other inactive 1,148 1,795 7,369 10,312 34,926 39,228 Inactive 328,555 347,055 791,3 12 1,466,922 43,981 47,246 N.A. 63,232 81,972 80,200 225,404 3,035 3,522 TOTAL 432,185 471,073 1.224.893 2,128,151 57,976 67,857 Employed 6.3 6.1 24.8 16.9 17.3 24.0 28.0 25.9 Unemployed 3.1 2.8 4.1 3.6 1.6 1.2 0.4 0.7 Unemploymentrate 33.0 31.5 14.1 17.5 8.5 4.1 1.4 2.6 Active 9.3 8.9 28.8 20.5 18.9 25.2 28.4 26.6 Activity rate 10.9 10.8 30.9 22.9 19.9 26.6 39.2 33.5 Educatiodtraining 69.1 66.5 49.0 56.9 0.8 0.5 0.2 0.3 Persons at home 6.6 6.8 15.0 11.5 14.8 11.3 4.4 7.0 Retiredand other inactive 0.3 0.4 0.6 0.5 60.2 45.3 Inactive 76.0 73.7 64.6 68.9 75.9 52.7 N.A. 14.6 17.4 6.5 10.6 5.2 27.5 20.8 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Sources: ANSI RGPH 2 10 Table4: HierarchicalClassificationTrue for Employmentin Urban and Rural areas Urban Rural Combined Dakar urban Other urban Total Population 2,106,277 1,901,313 4,007,590 5,847,748 9,855,338 Populationages 15 to 64 1,324,765 1,068,945 2,393,710 2,873,512 5,267,222 Inactive 505,845 462,204 968,049 1068278 2,036,327 Active 796,012 584,212 1,380,224 1,725,034 3,105,258 Unemployed 146,466 88,882 235,348 168,348 403,696 Employed 649,546 495,330 1,144,876 1,556,686 2,701,562 Independent 294,029 279370 573,399 939237 1,s 12,636 Dependent 355,517 215960 571,477 617449 1,188,926 Nonwage-eamers 120,477 107,890 228,367 514,103 742,470 Wage-earners 235,040 108,070 343,110 103,346 446,456 Nonpermanent 32,906 21,938 54,844 65,935 120,779 Permanent 202,134 86,132 288,266 37,411 325,677 Part-time 34,081 22,587 56,667 10,748 67,415 Full-time 168,054 63,545 231,599 26,663 258,262 Urban Rural Combined Dakarurban Otherurban Total Popu1ation 2,106,277 1,901,313 4,007,590 5,847,748 9,855,338 Populationages 15to 64 62.9 56.2 59.7 49.1 53.4 Inactive 38.2 43.2 40.4 37.2 38.7 Active 60.1 54.7 57.7 60.0 59.0 Unemployed 18.4 15.2 17.1 9.8 13.0 Employed 81.6 84.8 82.9 90.2 87.0 Independent 45.3 56.4 50.1 60.3 56.0 Dependent 54.7 43.6 49.9 39.7 44.0 Nonwage-earners 33.9 50.0 40.0 83.3 62.4 Wage-earners 66.1 50.0 60.0 16.7 37.6 Nonpermanent 14.0 20.3 16.0 63.8 27.1 Permanent 86.0 79.7 84.0 36.2 72.9 Part-time 16.9 26.2 19.7 28.7 20.7 Full-time 83.1 73.8 80.3 71.3 79.3 11 Table 5: Descriptionof Formaland InformalEmploymentinDakar Haswritten contract If. Yes No Age (inyears) 39 29 Experience (inyears) 12 6 Experience with same 11 6 enterprise (inyears) Education (inyears) 11 7 12 8 2,103 Working hours per year 2,092 2,137 2,058 2,105 2,092 Gender -- Male 33.91% 66.03% 6.13% 93.81% 38.77% 61.23% Female 22.07% 77.93% 2.64% 97.36% 18.71Yo 81.29% -Qualification level - Unskilled Skilled 76.23% 23.77% 23.41% 76.53% 85.1% 14.9% 12.66% 87.34% 0.62% 99.38% 17.06% 82.94% Unionmember -- NOYes 86.99% 13.01% 32.8% 67.2% 91.54% 8.46% 23.27% 76.73% 2.77% 91.23% 25.34% 74.66% Received training - - NO Yes 75.4% 24.6% 21.99% 18.01% 12 32% I 27.68% 24.52% 75.48% 3.23% 96.71% 26.48% 13.52% --- General Sector Private sector 23.72% 76.28% 2.78% 91.22% 26.13% 73.81% government 91.63% 8.37% 29.36% 10.64% 100% 0% Association and household 8.48% 91.52% 0.94% 99.06% 4.81% 95.19% Branch ---- Commerce Primary 24.32% 15.68% 3.57% 96.43% 20.61% 79.39% Industry 21.1% 78.9% 2.66% 97.34% 28.18% 11.82% 9.86% 90.14% 0.63% 99.37% 11.92% 88.08% Services 41.68% 58.32% 8.67% 91.33% 43.91% 56.09% Size --- Sole proprietorship 7.68% 92.32% 0% 100% 3.49% 96.51% Small enterprise 10.84% 89.16% 0.95% 99.05% 19.09% 80.91% Large enterprise 59.1% 40.9% 13.45% 86.55% 82.35% 17.65% ource: 1-2-3 Survey 12 Table6: ChangesinJob Creationby Type of Permanentand Seasonal Employment(in Percentof LaborForcefor Year N-1) TOTAL.EMPLOYED 2004 100.0% 12.3% 11.5% 12.3% 1.O% 0.4% 2.4% -1.2% -8.0% -9.1% 0.0% 0.0% -0.2% 105.1% Sources: ANSD, CUCI, andWorld Bank calculations LABOR FORCE (N-I) 1000% 1000% 1000% 1000% 1000% 1000% 1000% 100.0% Creation 19% 40% 131% 00% 13% 16% 00% 3.1% Desmrehon -126% -280% -61 3% -502% -608% -609% -1000% -53.4% LABOR FORCE0 I 892% I 760% I 518% I 498% 1 405% I 406% I 00% I 49.7% SOLEPROPRIETORSHIP (PERSONSEMPLOYED= I) LABOR FORCE(N-I) I 1000% I 1000% I 1000% I 1000% I 1000% I 1000% I 1000% I LABOR FORCE0 I 9 9 6 % 1 1154%1 9 9 6 % 1 1023%1 1082%1 8 9 7 % 1 9 5 0 % 1 101.4% (1 100) LABOR FORCE (N-I) I 1000% I 1000% I 1000% I 1000% I 1000% I 1000% I 1000% I 100.0% CTcahon 46% 57% 77% 120% 72% 75% 8 8 % 7.6% D m c h o n -3 2% -3 6% -30% -25% -3 2% -3 9% -40% -3.4% LABOR FORCEN 1014% 1021% 1046% 1095% 1040% 1035% 1048% 1043% 13 Table 8: Changes inPermanentJob Creationby Sectorof Activity (in Percentagesof StaffinginYear N-1) LABORFORCE Sources: ANSD, CUCI, and World Bank calculations 14 ANNEX 5: THE GENDERISSUEINTHE LABORMARKET The standing o f women inthe labor market o f Dakar, Senegal i s often quite distinct from that o f men. First, the percentages o f women who are unemployed or outside the labor force are considerably higher than those o f men. Furthermore, even for those who are employed, the differences are quite pronounced. Women are largely confined to the informal sector, ina more vulnerable position than men, in small-scale production units that are mobile and have a low degree o f capital intensiveness. What is more, their strong presence inthe informal sector cannot be explained solely by their lack o f education. Even though women do have a lower level o f education than men, they far more often find themselves engaged in informal sector jobs because it enables them to combine their work with unremunerated householdactivities. 1.The women ofDakar are concentratedinthe informalsector Aggregated labor market data may mask sizable disparities between various groups - in particular between men and women, and most notably in developing countries.' To gain an initial understanding o f this issue, it i s advisable to break down the informal sector status for the menandwomen belongingto various labor market groups. This approachmakes it possible to shedlight on a number o f findings (Table 1).First, we note that women wage-earners in the private sector or working in an associative enterprise have a greater tendency than men to have formalized positions, in the sense that they have a written contract or are working for a registered enterprise. It i s evident that very few women are working in these two sectors (12 percent). Incontrast, the share o f men working in the public sector and as wage-earners inthe formal private sector i s far from negligible. Itmay further be observedthat 83 percent ofworking women inDakar are either engaged in self-employment or working within a household. Virtually all o f these women are in the informal sector. Obviously, self-employed men are also largely engaged in the informal sector. For example, only 10 percent o f these men have written contracts and only 7 percent work in enterprises that have a NINEA number. Nevertheless, the level o f formalized employment among women is lower than for men. N o more than 5 percent o f self-employed women have a written contract on only 2 percent work in an enterprise that has a NINEA number. Women as a group thus appear to suffer from twofold polarization. Not only are they largely confined to the two sectors that are often characterized as precarious - self-employment and work within the household - but the women working there also have less o f a probability (than the men in the same sectors) o f benefiting from social protection through a written contract. ' Foran overview of the status ofwomen inthe labor markets of developingcountries, see Mammen, Kristin and Christina Paxson (2000), "Women's Work and Economic Development," Journal of Economic Perspectives, 14(4): 141-164. 15 2. Householdresponsibilities- and not just education - explainthe presence of women inthe informalsector I s the high concentration o f women in the informal sector (that is, in self-employment and employment within the household) explained by the fact that women have less education than men?2 Indeed, women do suffer from an extremely low level o f education. In Dakar, 39 percent o f women in the 15-65 year age range have not attended school at all, and only 3 percent have university trainingn3Among men o f the same age group, 25 percent lack schooling and 9 percent have universitytraining. Moreover, among the women inthe informal sector a remarkable 52 percent have never attended school at all (see Table 2; compare with Table 3). The influence o f education on the concentration o f women in the informal sector may be gleaned from the percentages o f men and women who, for each level o f training, are employed inthe various sectors of the labor market. Table 4 shows, for each education level, the distribution o f men and women across the sectors of the labor market. The differences between men and women are glaring even for the same level o f education. Table 3 shows that, for individuals without schooling, 2 percent o f the men work in the public sector and 21 percent in the formal private sector, whereas for women none work in the public sector and only 3 percent in the formal private sector. Moreover, for employed persons with a primary and secondary education, there are considerably fewer women than men in the same two sectors whereas the percentages for women are higher inthe informal sector. Finally, it bears noting that, for each education level, a larger percentage o f women than men are ~nemployed.~ It thus appears that the low education levels of women in Dakar cannot fully explain their tendency to work not inthe formal sector but, to the contrary, inthe informal sector (that is, in self-employment and employment withinhouseholds). The descriptive statistics just presented show that, for equivalent levels o f schooling, men are almost always more numerous in the formal sector andrelatively less numerous inthe informal sector. Inorder to examinethis issue indepth, we have estimated active individuals' choices between the formal and informal sectors by controlling for education level, among other variables. We used a multinomial logit model with the sectors (public, private formal, private informal, unemployed, and inactive) as dependent variables and with the following explanatory variables: age, age squared, number o f children (in household), marital status, relationship to the head of household (head of household, spouse, or other), gender, and level of ~chooling.~ Bigsten et al. show that, in Kenya, the probability o f working in the informal sector declines as the education level rises. See Bigsten, Arne, Peter Kimuyu, and Karl Lundvall(2004), "What to Dowith the Informal Sector?", Development Policy Review, 22(6): 701-715. Mammen and Paxson (2000) note that the difference inmale-female education levels tends to be highest around a per capita GNP o f US$l,OOO. In 2002, when the 1-2-3 was conducted, the PPP adjusted per capita GNP was US$1,480. Ifwe examine only those individuals who are working, it becomes even more clear that women are extremely numerous inthe informal sector and work within the household, this across almost all education levels (however, this table has beeneliminated owingto space limitations). The regressiondata are available upon request. Inaddition, we tried various specifications aimed at accounting for potential interaction effects between age and gender and gender and education, and introducing variables such as migratory status and father's employment. Inthat these didnot change the basic findings, for the sake of simplicity we are presenting the less elaborate specification here. 16 Our findings indicate that education cannot by itselfexplain the individual's choice o f sector - there i s the influence o f gender as well. Itis certainthat the probability ofworking inthe public sector, as well as inthe formalprivate sector, rises with the level o f education. Intandem, the probability o f working inthe informal sector decreases with the level o f education. In contrast, when we control for education, women always have a lower probability o f working inthe public sector and the formal private sector, and a higher probability o f working inthe informal sector. Table 5 presents the probabilities (based on the multinomial logit model) that a man or woman will work in a particular sector, namely the formal and informal sectors. For a given level o f education, women have a lower probability than meno f working in the public sector or formal private sector. The difference is particularly pronounced for the formal private sector. For example, the probability than a man 25 years o f age with a primary education i s working inthe formal private sector i s estimated at 20 percent, while this probability i s only 5 percent for a woman with the same characteristics. For a member o f the labor force who is 40 years o f age, a head of household, and without education, the probability o f being in the formal private sector as compared to the informal private sector i s half (0.52) for men and seven times lower (0.14) for women. For a 50-year old member o f the labor force who i s a head o f household with a secondary education, the probability o f being in the formal private sector as compared to that o f being inthe informal private sector i s one and a half (1.53) for a man and less than a half (0.40) for a woman. Table 5. PredictedProbabilitiesof Typical IndividualsWorking in a Particular Sector (YO) Publicsector Formal privatesector Informal privatesector Formalprivate Type" probability probability probability probability/ Informal privateprobability Men Women Men Women Men Women Men Women Age 25, primary school 1.5 0.7 20.1 4.9 34.5 32.2 0.58 0.15 Age 25, secondary school, unmarried 3.3 1.7 29.9 8.1 22.3 23.3 1.34 0.35 Age 40, no school, head of household 3.6 2.0 28.4 8.2 54.4 60.3 0.52 0.14 Age 40, university, headof household 42.5 39.2 42.6 20.2 6.3 11.5 6.76 1.76 Age 50, secondary school, head of household 30 18.8 32.4 10.5 21.1 26.6 1.53 0.40 * All types are marriedand livingina householdwith four children, unlessotherwise indicated. Can the low degree o f female participation in the formal private sector - and more generally in the labor market as a whole - as well as their strong presence in the informal sector, be 17 explained by their responsibilities within households? One theory that has beenput forward to explain why individuals may opt to work inthe informal sector rather than the formal sector i s that so choosing gives them greater flexibility to adjust their working time.6 According to this hypothesis, women with heavy household responsibilities such as house work, childcare, or fetching water and shopping, choose to work inthe informal sector because this would enable them to achieve an optimal combination of paid employment with nonremuneratedhousehold a~tivities.~ Owing to the lack o f available data, any formal verification o f this hypothesis i s beyond the scope o f this analysis. However, one indication may be provided by examining the number o f hours that individuals active in the various sectors devote to nonremunerated household activities. The information on the number o f hours devoted to household activities i s presented in Table 6 (for men) and Table 7 (for women). It i s interesting to note the pronounced differences in behavior between menand women. While 84 percent o f menin the formal private sector and 76 percent of men inthe informal sector never engage innonremuneratedhousehold work, the situation i s the opposite for women (41 percent o f women inthe formal private sector and 27 percent o f women in the informal sector). Expressed in other terms, the number o f hours devoted weekly to domestic activities is 9.3 for women in the formal private sector and 16.6 for those in the informal sector (see Table 7). If we consider only those women who do engage in household work, the average number o f hours i s 14.1 in the public sector, 15.8 in the formal private sector, and 22.8 in the informal private sector. The findings are similar, although less pronounced, as regards fetching water or wood or doing the shopping. Finally, it may be noted that there is not a great difference between female wage-earners in registered private enterprises and female wage-earners in unregistered enterprises.8 This could indicate that it is not the constraints associated with informality per se that are the most important thing to address regarding the situation of women on the labor market, but rather those associated with the Vpeo f informality (self-employment and work withinhouseholds). 3. Enterprises managed by women are small in scale and function with less physical capital than those managedby men Are there notable differences between the informal sector enterprises managed by men and those managed by women? A first difference i s business size, as 41 percent o f the enterprises managed by men have employees, while only 14 percent o f those managed by women use outside labor. Moreover, even among enterprises with employees, those managed by menare larger (see Table 9) given that the median number o f employees i s 2 for enterprises headedby women while it i s three for those headed by men. This theorywas advancedin Maloney, William F. (2004), "Informality Revisited," WorldDevelopment, 32(7): 1159-1178, and Maloney, William F. (1999), "Does Informality Imply Segmentationin Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," The World Bank Economic Review, 13(2): 275-302, for 'example. See also UNIFEM (2005), Women, Work & Poverty, Progress of the World's Women 2005, by Martha Chen, *JoannVanek, FrancieLund, James Heintz, RenanaJhabvala, and ChristineBonner. Table not reproduced. It i s available on request. 18 Table 9. Number of Employeesof Informal EnterprisesManaged by Men and by Women Male entrepreneurs Femaleentrepreneurs Average Median Average Median Employees 3.6 3 2.8 2 -Paid9 0.3 0 0.4 0 -Unpaid 3.3 3 2.4 2 N=220,214, and220, respectively, for men, and67, 65, and67 for women. It further bears noting that women have a lower probability than men of carrying out their activity infixed premises.loAs Table 10 shows, 15 percent of women work roadside at ad hoc sites, and 26 percent work in their own homes without any dedicated workspace. The percentages for men are 3 percent and 7 percent, respectively. It may also be observed that the women working in the informal sector use less physical capital than do men similarly engaged. This i s explained in part by the fact that women are involved to a higher degree in sectors with low capital intensivity, such as commerce or personal services. However, it may also be that women's access to capital i s limited, for example because they have greater difficulty obtaining loans or investing, because they have less funds o f their own, benefit less from inheritances, and do not hold property deeds that could be used as bank collateral. We have endeavored to measure the capital intensivity gap between men and women by usinga multivariant regression, so as to assess the gender effect by controllingfor other factors that are also likely to affect the capital intensivity of economic activity, such as business size and the sector inwhich the activity i s carried out.l1 The number o f paid employeeswhen there i s a positive total number of employees (whether paid or unpaid). loThis findingi s supported by evidence presented, for example, by ILO (2002), Women and Men in the Informal Economy: A Statistical Picture, ILO Employment Sector, International Labor Office, Geneva, and by Mehra, R e b a and Sarah Gammage (1999), "Trends, Countertrends, and Gaps in Women's Employment," World Development, No. 3, pp. 533-550, 1999. We also includedinteractions between gender and sector and between gender and business size. The results are available onrequest. 19 Table 10. Type of Premisesfor the InformalEnterprisesof Men and Women % of men % ofwomen Ambulatory 9 6 Vehicle 6 0 Roadside 15 26 -ad hoc site 3 15 -fixed site 12 I1 Entrepreneur's home 16 37 -withoutdedicatedworkspace 7 26 -with dedicatedworkspace 9 I1 Customer'shome 19 10 Market 16 16 -adhocsite 4 I O -fixed site 12 6 Workshop, store, restaurant,hotel, etc. 15 5 Other 4 0 Total 536 488 We then performed the regression o f the logarithm o f capital intensivity across the sector, business size, and gender o f the owner, and thereby included the interactions between gender and business size and between gender and sector. The results indicate that there are pronounced differences between the enterprises managed by women and by men. The capital intensivity gaps between men and women for a sole proprietorship have been estimated at 40 percent, 77 percent, and 85 percent inmanufacturing, commerce, and personal services, the three sectors inwhich 85 percent o f women are active. 4. Conclusion Women inDakar are overrepresented inthe informal sector, inwhich they are largely engaged incommerce andpersonal services. Their strong presence inthe informal sector is associated with their lack o f education, butthis does not seemto be the only explanation. Itwould appear that there are also other barriers preventing women from entering the formal private sector as well as the public sector. Their heavy nonremunerated responsibilities within households constitute another explanatory factor: women are more involvedwith household work than are men, and the choice o f remaining in the informal sector allows them greater flexibility for combining their multiple occupations. In addition, the activities headed up by women generally appear to be less intensive in terms o f physical capital than those headed by men. These results suggest that, to help women emerge from informal employment, efforts should be made to: (i)improve the organization and sharing o f household chores; and (ii) help women increase their borrowing capacity in order to increase their physical capital and thereby puttheir activities on a firmer footing. 20 3 m W 3 W c! 3 $ 3 3 m m z8 bl h -0 b5 6 ru 5 W 0 Y i e, Eru 0 m Bb 0 385 bl - ru m s0 7 2 t ? \o > i 4 2 ieec x b zcc C s VI IC) ! 3 3 0: ce e ec -1 a3 2 .i I \o W -2 a VI P ANNEX 6: CHANGESINEMPLOYMENT AND COMPENSATIONBY SECTOR Table 1: Changes inthe Active Labor Force byEconomicActivity Sources: ANSD. national accounts 25 Table 2: Changesinthe Active Labor Force by EconomicActivity: Modern Sector Sources: ANSD, national accounts 26 Table 3: Changesinthe Active LaborForce by EconomicActivity: InformalSector Sources. ANSD, national accounts 27 Table 4: Changes inCompensationby Branch of Activity Sources: ANSD, national accounts 28 Table 5: Elasticity ofEmploymentinRespectof ChangesinValue Added (1995-2004) Modern for Primary 0.17 0.294 01.0 livestock breeding 0.05 0.32 020 industrial or export agriculture -0.02 030 stock fanning and hunting 0.48 040 sylviculture, forest exploitation 0.35 050 fisheries 0.29 0.34 Secondary 0.36 0.18 060 extractive activities 0.73 0.16 070 processing and conservation o f meat, fish -0.44 0.24 080 manufacture of fats for human consumption -0.15 090 grainproduction, manufacture of grain products -0.15 0.16 100 manufacture o f food products 0.67 0.25 110 sugar manufacture andprocessing 0.06 120manufacture of food products n.e.i. -1.4 0.12 130 manufacture of beverages -0.54 0.1 140 manufacture of tobacco-based products 0.05 150 cotton ginning and textile manufacture 1.5 0.49 160 manufacture o f leather andhides 1.11 0.16 170 woodworking and manufacture o f wood items -0.29 0.25 180 manufacture of paper, cardboard -0.23 190 oil refinery,coke production 0.14 200 manufacture of chemical products 0.15 0.02 210manufacture of rubberproducts 0.69 220 manufacture of glass, pottery 0.82 0.1 230 metallurgy, foundry work, manufacture 0.42 0.34 240 manufacture o f machines 0.19 250 manufacture o f equipment, apparatuses 260 construction o f transport material 1.03 0.04 270 manufacture o fmiscellaneous products 2.23 0.32 280 electricity, gas, andwater 0.82 0.3 290 construction 0.37 0.19 Tertiary -0.14 0.56 300 commerce -0.17 1.3 310 repair services -0.18 0.23 320 lodging and food services -1.37 0.14 330 transport -0.86 0.33 340 post and telecommunications 0.25 0.21 350 financial services 0.32 360 real estate activities -0.92 370 business service activities 0.55 0.43 380 general government activities -0.54 390 education and training 1.25 0.57 400 health and social action activities 0.58 0.78 410 community-level or personal activities -0.57 1.09 TOTAL 0.06 0.53 Sources: National accounts and World Bank calculations 29 ANNEX 7: CHANGES INPRODUCTIVITY,WAGES, AND UNIT LABORCOSTS BY SECTOR Table 1:RankingofModernSector BranchesofActivityby Labor Productivity (FromLowto Highfor the 1980-2004 Period) Source: National accounts and World Bank calculations 30 Table 2: Ranking of InformalSector Branches of Activity by Labor Productivity (From Low to High for the 1980-2004 Period) 390 educahon andtraining -2.2% 1.9% 0.5% 030 stock farmingandhunting 1.1% -0.4% 0.5% 150 cotton ginningandtextilemanufacture -0.3% 1.4% 0.6% 100 manufactureof food and cereal grain products 4.5% 1.3% 1.1% 310repair services 4.9%II 2.0%II 1.1% Sources: National accounts and World Bank calculations 31 Table 3: Rankingof ModernSector Branchesof Activityby Wage Rate (FromLow to Highfor the 1980-2004 Period) Sources: National accounts and World Bank calculations 32 Table4: Rankingof ModernSector Branchesof Activityby Unit Labor Costs (FromLow to Highfor the 1980-2004 Period) 3 10repair services 62.5% 8 0% 3 7% 090 grainproduction, manufactureof grain products 48.8% 19.6% 4 4% 170woodworkingand manufactureof wood items 68 8% 12 3% 4.4% 100manufactureof food products 61.9% 13.7% 4.7% 33 ANNEX 8: PRODUCTIVITY,WAGES, AND UNIT LABORCOSTSBYENTERPRISE Table 1: MonthlyProductivityperWorker (in Thousandsof CFA Francs) IFoieign pnvate enterpnse 1 2,2563 1 548 8 I 27 Note: Average monthly productivity per worker was determined by dividing monthly value added by the number ofworkers. Table2: UnitLabor Cost 1Foreignpnvate enterpnse 026 I 20 I I Note:Unit labor cost was determinedby the ratiobetweenthe real monthly wage per worker andthe real monthlyproductivityper worker. 34 Table 3: MonthlyWages per Worker (in Thousands of CFA Francs) Note: The monthly wages per worker at the f i level were determined by dividing total monthly personnel costs (wages, bonuses, and benefits) by the number o f workers. The monthly wage received by the worker includes direct wages, bonuses, and benefits. For the informal sector, the wages o f bosses, independent workers, and partners correspond to the gross operating surplus of the enterprise (which i s divided among them in the event there are partners inthe informal enterprise). 35 ANNEX 9: STATUS OFHIGHEREDUCATIONAND RECOMMENDATIONS 1. This annex describes the situation with respect to higher education in Senegal. It first presents an assessment, and ends with a number o f suggestions which are to be regarded as possible avenues to be pursued by Senegalese policy-makers. The presentation is deliberately brief, as a detailed analysis may be found in the study by the World Bank Institute on the development o f the knowledge economy in Senegal. Assessment of the current situation 2. University education, and, more generally, tertiary level training, have been problem- laden interms o f their effectiveness and efficiency. At present, Senegal has only two universities within the full meaningo f this term (UCAD inDakar and UGB inSaint-Louis), to which should be added the gradual opening o f about ten Regional University Centers. 3. This insufficient level o f supply should be compared with demand. There are some 25,000 baccalaurkat holders produced each year by the secondary education facilities (with an annual average increase o f more than 3,000 students per year), and most o f them intendto pursue more advanced studies. As a result, and contrary to forecasts, the number o f students, that is, the numbero fyoung people attendinguniversity andinthe Advanced Studies Centers, is continually on the rise. It should be noted that the PDEF indicated quite clearly that the combined number o f students in all institutions taken together (UCAD, UGB, CUR, private institutions) was not expected to exceed 43,000, whereas there are nearly 70,000 students currently attending public or private institutions o f learning. 4. Everybit as significant is the fact that the very same PDEF (prepared inNovember 1999) explicitly indicated that it was necessary to maintain the student body at the U C A D departments at the level o f 14,000, provide for a slight increase in the student bodies at the U C A D and UGB institutes, and allow for rapid growth inthe coverage o fprivate higher education. As it turns out, however, the actual situation i s altogether different: U C A D has 57,000 students while UGB has 4,500, despite the latter's objective of 10,000 students by 2010. As regards private higher education (within which the preferred fields o f study are in particular, if not fundamentally, computer science and accounting), the number o f students exceeded 13,000 in 2004 (as compared to 8,000 in2003). 5. This significant increase in enrollments in higher education, evident in particular at UCAD, i s in part the result o f the increase in the number o f successful candidates for the baccalaurhzt, and, more generally, o f the efforts made by the public authorities more upstream, at the levels o f basic and secondary education. According to the second Poverty Reduction Strategy Paper for 2006-2010 (PRSP II), implementation o f the first phase o f the PDEF made it possible, among other things, to achieve the following results: (i)an increase in school attendance at the primary level, which rose from 70 percent in 2001 to 75.63 percent in 2003, and then to 82.5 percent in 2005; and (ii) an increase in the schooling o f girls, as demonstrated by the rise in the index of girlboy parity to 88 percent in 2005, as compared to 80 percent in 2000. It i s thus to be expected that these efforts result in a higher number o f baccalaure!at holders and therefore o f candidates for higher education (particularly given that, as stressed in the Country Economic Memorandum cited above, the paths toward technical and vocational 36 education identified during the secondary schooling track are poorly developed and rarely sought out). 6. This increase, a "natural" one, in the number o f new entrants into higher education, is also attributable (especially as regards the U C A D Departments which account for nearly 97 percent o f the students admitted to that university) to the fact that admission procedures are relatively relaxed- except for a few Schools or Institutes o f Higher Studies. While the official documents on admission conditions and procedures are clear as regards definitions, actual practices appear to be quite different: future students are admitted innumbers far exceeding the number o f spaces available at UCAD, and this ongoing practice appears to have no endinsight. The fact that U C A D is located inDakar may inpart explain this "inflation". 7. There are two other factors which might also contribute to this situation. First, there are the tuition fees at the University; second, there i s the issue o f the financial support that the public authorities extend to students. 0 The tuition fees for public higher education institutions (UCAD, UGB, Higher studies institutes, CUR) are extremely low. At present, they come to less than CFAF 5,000 per student per year (less than 10 Euros). As quite properly noted in one o f the reports consulted, these tuition fees (in 2004) represent an extremely marginal contribution to education costs. The table below confirms these findings, despite the fact that some o f the countries cited have subsequently increased the fees in question (for example, Benin increased them to CFAF 10,000 for nationals). Table: Tuition Fees in West Africa 0 The scholarships awarded to students:their terms constitute a virtual incentive for those gaining the baccalaurkat to enter university. Here again, the relevant legal provisions define the procedures clearly, however it would appear that the tracking o f scholarship awards in terms o f the achievements o f the recipients lacks the necessary rigor and transparency. Moreover, scholarship awards fail to take account o f economic and social criteria (an effort was made in this direction, but the measure was withdrawn inresponse to protestations from interested parties). 8. Clearly, population pressures and the practice o f university admission procedures have contributed objectively to an increase inuniversity enrollments that i s already difficult to control. However, there i s an even more pronounced imbalance inthe distribution o f students by area o f study. At UCAD, for example, over 55 percent o f the students registered are in the Faculty o f Letters and Humanities, while there i s an egregious under-enrollment in scientific and technical fields. At UGB (Saint-Louis), these gaps are less pronounced but are still significant: students 37 enrolled in the letters and the liberal arts accounted for somewhat less, in 2006/07, than 50 percent o f those enrolled - as against less than 17 percent o f those enrolled in applied sciences and technology at UFR. This gap, moreover, could well be increased giventhe upstream increase in enrollments in the S1 and S3 streams and the corresponding decrease in scientific studies, which in 2006 represented only 30 percent o f higher studies at the secondary level as compared to 57 percent in 1986. 9. With regardto the first o f these issues, there are questions about the internal and external effectiveness o f the higher education system; in other words, about the capacity o f the system to properly shape students and to ensure that the training imparted to them leads to skilled employment, inthis case to work as a mid- or higher-level supervisor. Short of this, inparticular in the humanities and social sciences, the University would run the risk, for the majority of students, o f becoming a mere "parking place" for most o f its students, leading ultimately to unemployment or to work inthe informal and unskilled sector o f the economy. It is necessary to ensure that students entering university complete their program o f studies successfully - quite apart from the question o f their area o f study. On these two issues, namely the questions o f internal and external effectiveness, the information available provides scant reason for optimism. 10. As regards the internal effectiveness of higher education, the data gathered show that for U C A D (that is, for 90 percent o f the students in Senegal), in a situation in which nearly 70 percent o f the 57,000 students are in the first cycle, the completion rate within the various departments is 28 percent (rising to 65 percent for students inthe second cycle, who represent 18 percent o f all students, and to almost 90 percent o f third cycle students in the advanced schools and institutes, representing 7.4 percent and 5 percent o f all students). In other words, the first cycle (at least two years o f studies following the baccalaurkat) serves as a sorting mechanism (following the French model; as a reminder and by comparison with the initial cycles o f French universities, in Senegal there are no classes offering preparation for the high-level schools). If it is assumed that annually there will be approximately 15,000 baccalaurkat recipients entering UCAD, it may be assumed that only 5,000 o f them will complete the first cycle - inother words, 10,000 o f them will drop out and will find themselves with no genuine skills to bring to bear on the labor market. The fact that UCAD appears not to have any reliable tracking data on its students (repetitions o f courses, dropouts, lengtho f study, etc.) other than the rates cited above would suggest that the internal efficiency o f the institution is even lower (for first cycle students). 11. There i s the further issue o f the external efficiency o f higher education, namely its capacity for ensuring that students granted degrees will be able to find a job that matches their qualifications and skill levels. While this efficiency level would appear to be quite high in the case o f scientific and technical paths, even inthe case o f shorter periods o f study leading up to a technical university degree (two years after the baccalaureat), and/or to a University Technology Diploma (Dipldrne Universitaire de Technologie/DUT, as awarded for example by the Ecole Polytechnique Supkrieure), the only data available at this level are those produced by the so- called "Dakar Pole" on a simulation o f the average annual disequilibriumon the labor market for various scenarios. These various scenarios show that, on the assumption o f a 20 percent graduation rate (corresponding to five years o f studies on average) with a diploma, there will be somewhat more than 2,000 graduates per year who will not be employed inmid-management or higher functions. This may appear to be altogether excessive. On the assumption that some will not become supervisory staff owing to the lack o f a degree, let us assume that 20 percent o f the above group, less than one graduate out o f four, would become a supervisor. The other scenarios 38 show that any loss o f internal efficiency (also assuming failures in managing the transition o f lycke graduates to higher education) i s associated with a high level o f unemployment or inadequate management. The transition o f secondary school graduates toward higher education is associated with a highdegree o f unemployment and/or overqualification o f graduates. 12. The final point to be made is that o f resources, and specifically the financing o f higher education in Senegal. First, it bears noting that the financing o fpublic universities inSenegal (all institutions taken together) i s almost without exclusion based on subsidization by the State. As noted by the report cited in the Annex ("Vision and Strategy for Higher Education in Senegal," August 2004), this situation constitutes a major constraint in a context marked by budgetary restrictions and an increase indemand resulting from population growth and improved access to primary and secondary education. To take but one specific example - that o f UCAD, or 90 percent o f students -, the institution's 2006-2007 budget approached CFAF 16.6 billion, with State participation amounting to over CFAF 15.3 billion (or 90 percent), and the balance coming from student registration fees (amounting to slightly more than CFAF 285 million) and from "ancillary" activities including services rendered (such as continuing training activities or expert consulting fees, yielding gains on the order o f CFAF 200 million). Moreover, almost all o f UCAD's financial resources are used to pay the wages and salaries o f instructional and other personnel (nearly 85 percent o f the budget). When these are combined with the other recurrent operating costs (consumables, upkeep and maintenance, etc.), there i s little or no money left over to support the development o f university research, encourage innovation, or modernize the institution. In other words as matters currently stand, it i s fundamentally, and indeed uniquely, external resources (principally from donors, and the contributions o f former graduates to a "Foundation" established at UCAD) upon which the institution can rely for purposes o f developing its activities. 13. In a broader sense, the share of higher education in the budget of the Ministry of Education (almost CFAF 161 billion) came to 28 percent in 2004 (the latest figures available), while education expenditure as a whole represented some 33 percent o f the State budget. The latest figures available (for 2003) show that education accounted for slightly over 20 percent o f all public spending (as against 25.16 percent in 2000), or 3.61 percent o f GDP (as compared to 3.38 percent in2000). A pinpoint analysis o f the allocation o f new measures between the various levels o f education and expenditure categories for 2004 (from a total o f CGFAF 11.4 billion) shows that 35 percent o f this budgetary component was devoted to higher education (as against 45 percent for primary education, 14 percent for middle schooling, 3 percent for secondary education and administration) - but that all these new measures for higher education constituted transfers without providing additional resources for staff and operations. 14. While it i s true that Senegal has devoted significant financial resources to the development o f its educational system in general, and to the higher education subsector in particular, as has been the case inthe other countries o f the subregion, it should further be noted that, apart from personnel expenditure outlays, an extremely high share o f the amount budgeted has been devoted to expenditure o f a social nature. The following statistics from the "Strategic Vision" paper produced by the Ministry o f Education for 2004 are telling: the share o f social outlays inthe higher education budget exceeded 55 percent, or, o f a total budget o f nearly CFAF 45 billion, nearly CFAF 25 billion. It also bears noting that this extremely high percentage changed little between 1993 (53 percent) and 2004 and that, in addition, national scholarships in 2004 accounted for nearly 45 percent o f these "social" outlays, with the balance devoted to the 39 room and board and transport costs o f students through organizations such as the Dakar Center for University Activities (Centre des muvres Universitaires de DakarlCOUD-35 percent) and the Regional Centers for University Activities o f Senegal (Centres Rkgionuux des C?Zuvres Universituires du Se`nkgalKROUS-8 percent). The same report quite properly observes that student support costs represent only 6 percent o f operating costs in Asia, as compared to 14 percent in the OECD countries, approximately 15 percent in Eastern Europe and Central Asia, roughly 20 percent inNorth Africa, the Middle East, and Latin America, and over 50 percent in Africa. 15. This massive amount o f support is such that the "social" measures benefiting students have a substantial impact on the higher education budget, particularly in circumstances inwhich the country's poverty problem, a noteworthy phenomenon, i s taken into account. The second Poverty Reduction Strategy Paper, "PRSP I1 - 2006-2010," indicates that the incidence o f poverty in 2002 was still 48.5 percent o f households (as compared, it bears noting, to over 61 percent in 1994/95) and that this incidence declines more significantly inhouseholds headed by individuals who have completed secondary education (26 percent) or higher education (12.5 percent). It is thus important, inthis regard, to encourage access to higher education and, in this connection, to assist students in the university system with social measures such as those currently inplace. The fact remains that devoting over 55 percent o f the higher education budget to such measures, to which the wages and salaries o f teaching and non-teaching personnel must be added, leaves no room for maneuver and raises a fundamental problem -that o f finding other alternative financing sources while, at the same time, striving for the efficiency o f the "social" measures in terms o f the anticipated results o f learning. The fact that public expenditure for investing in higher education has quite broadly run up against a ceiling does not enable the institutions concerned to equip themselves properly - as is the case, for example, with UCAD's efforts to open the Measurement Laboratory, among other examples. Recommendations 16. It is imperative that the efficiency and effectiveness o f higher education, both domestically and externally, be improved in Senegal. In this context, we set forth below a number o f suggestions aimed primarily at enhancing the employability o f youths seeking to enter university, on the one handby supporting greater access to university education, and on the other by supporting the development of tertiary training for middle management personnel which the country so desperately needs. 17. The first o f these measures, though aimed only at slowing access to general education, would be to gradually increase tuitions while observing the autonomy o f the universities and the rights o f educators, and to modify the criteria for awarding scholarships so as better to reflect the socioeconomic conditions o f students and their families. At the same time, it would be appropriate, through negotiations with the banking sector, to encourage the development o f a system o f subsidized loans aimedprimarily at students inthe second and third cycles o f technical and scientific education. Such loans would be repayable upon completion o f the degree program and after the recipient gains employment. Such approaches to student loans are more and more widespread - with the State simultaneously supporting the establishment o f an agency responsible for the collection o f such loans. 18. The second measure would be to encourage, within the CURSand the universities, the development o f fee-based programs o f continuing training for youths and adults who have left 40 the formal education system. Such fee-based training (to which the loan system might also apply) should be supported in sectors in which businesses have problems recruiting qualified staff. These are not only certain sectors o f industry, commerce, and business services, but also subjects that support rural development. With regard to the latter, the effort would involve establishing training for hands-on support specialists for the rural environment - such training could also be provided inthe final years o f secondary education, the professionalization o fwhich should be enhanced. 19. The third measure, closely associated with those mentioned above, would be to modify the scholarship system and, more generally, to alter the structure o f higher education financing: additional budgetary resources made available to tertiary education establishments through the introduction o f educational rights; the establishment o f a student loan system; and, yet another suggestion, not granting scholarships for study abroad to students inthe first cycle; these would make it possible to reduce the share o fpublic expenditure taken up by higher education under the cover o f "social efforts." Ultimately, the objective would be to reduce this share to 25 percent (as compared to the current 50 percent), in order to be able to increase the share devoted to university research and support for innovation. This approach would require close collaboration with the Ministryo fResearch and Technology, which is largely inactive at present. 20. The fourth measure relates to private higher education, inrespect o f which it i s important to improve the legal and statutory requirements for operation and to strengthen quality control, particularly with regard to curricula and the requirements for organizing and recognizing private "diplomas". 21. These are but a few o f the suggestionsh-ecommendationswhose implementation i s clearly complex and difficult; but in light o f the assessment made in this study, they would appear at least to be a step inthe right direction regarding the changes to be made inthe public and private approach to higher education. It i s important to stress at this point that some o f these recommendations have already been taken by the authorities concerned and are reflected in various reports published recently under the auspices o f the Ministry o f Education. Overall, however, these recommendations have had no appreciable effect. Other recommendations could be made, for example in respect of the governance o f higher education institutions or of improving the cooperation between such institutions and the business world (for example, by incorporating "business internships" in training curricula). It further bears noting that these recommendations, inone form or another, are already being implemented inmany countries, not only in developed countries but in emerging, developing economies where heavy emphasis i s placed on the quality of trainindeducation and on the potential employability o f students. 41 ANNEX io: EMPLOYMENT STATUS AND POVERTY'^ Table 1:IncidenceofIndividualPovertyby UsualEmploymentStatus, Head of HouseholdGender, andPlaceof Residence Source: ESAM-I1and World Bank calculations Table 2: IncidenceofExtremeIndividualPoverty by UsualEmploymentStatus, Headof HouseholdGender andPlaceof Residence Source: ESAM-I1and World Bank calculations Table 3: Incidence of IndividualPoverty by OccupationalStatus, Headof HouseholdGender andPlaceof Residence Wage earner 47.7 33.4 34.8 31.6 29.7 29.9 16.2 49.5 48.8 31.0 31.0 35.8 Trainee 93.4 93.4 0.0 0.0 93.4 59.3 59.3 Jobber 44.5 54.6 53.2 33.1 52.4 51.2 0.0 64.1 62.6 49.5 52.4 56.8 Total 43 53 50 40 43 42 49 66 64 44 59 57 ''The overall (respectively food) poverty line is set at CFAF 879 (respectively CFAF 342) per day and per adult equivalent in Dakar, CFAF 712.8 (respectivelyCFAF 318.8)in the other towns, and CFAF 497.9 (respectivelyCFAF 290.9)inrural areas. 42 Table4: IncidenceofExtreme IndividualPoverty by OccupationalStatus, Headof HouseholdGender andPlaceof Residence Source: ESAM-I1and World Bank calculations Table 5: Incidenceof HouseholdPovertybyUsualEmployment Status, HeadofHouseholdGender andPlaceof Residence Othertowns UrbanDakar I Ruralarea GrandTotal Other inactive 37.3 60.9 49.4 32.0 58.8 47.3 32.5 70.1 64.4 34.7 66.4 56.8 Unemployed 86.6 69.6 73.1 61.2 56.2 55.2 23.4 51.8 47.1 56.9 59.1 58.7 Educationnrainino 5.0 23.4 14.9 27.6 37.9 33.2 0.0 60.5 52.7 17.1 44.6 34.8 I N.A. I 53.4 I 64.3 1 61.2I 39.6 I 32.4 I 33.5I 65.8I 63.7 I63.9 I 55.6 I 58.2I 51.8 I Employed 39.5 43.6 42.7 30.6 30.6 30.6 37.3 58.8 56.6 36.3 50.8 48.8 Persons at home 35.6 49.2 36.8 31.9 27.7 31.6 43.2 64.4 50.9 36.6 51.3 40.6 Retired 10.3 37.3 36.1 10.2 41.4 39.7 73.1 61.0 61.9 28.9 44.8 43.9 Total 39 48 44 33 I 34 34 I 39 59 51 37 51 48 Table 6: Incidenceof ExtremeHouseholdPovertyby UsualEmployment Status, HeadofHouseholdGender andPlaceofResidence Othertowns UrbanDakar Ruralarea GrandTotal IOtherinactive I 3.4 I 3.4 I 3.4 I 0.0 I 0.0 I 0.0 I 3.6 I 24.4 I 21.2 I 2.5 I 16.2I 12.1I Unemployed 0.0 28.0 22.2 0.0 10.9 8.7 0.0 17.0 14.2 0.0 17.5 14.2 Educationnraining 0.0 5.6 3.0 4.0 3.3 3.6 0.0 10.1 8.8 2.2 6.1 5.1 N.A. 18.1 10.1 12.4 0.0 0.0 0.0 0.0 16.9 15.1 7.8 12.5 11.8 Employed 6.4 5.2 5.5 0.4 1.1 1.0 7.8 17.5 16.5 5.6 12.3 11.4 Personsat home 6.1 0.0 5.6 0.6 0.0 0.8 11.9 30.9 18.9 5.8 22.8 9.1 Retired 0.0 2.3 2.2 0.0 1.3 1.2 0.0 29.7 27.6 0.0 8.3 7.8 Total 5.2 5.6 5.6 0.1 1.7 1.4 8.0 18.1 16.6 4.6 12.1 10.7 43 Table 7: Incidenceof HouseholdPovertyby OccupationalStatus, Headof HouseholdGender andPlaceof Residence Apprentice 100.0 100.0 I 100.0I 100I I 86.7I 86.7I I 92.1I 92.1 IIEmployer 0.0 26.4 24.5 17.3 27.0 25.8 77.1 25.9 33.4 41.7 26.4 28.2 Independent II 39.0 1I53.5 1I49.4 II 36.3 11 38.3 1I37.8II 35.4 1I60.3II57.7II 36.6II57.1II54.1II Trainee I 42.8I 42.8I 0.0I I 0.0 I 0.0 I42.8I 21.4 Jobber 38.9 45.8 44.5 26.5 47.7 46.6 0.0 58.4 56.0 29.1 51.6 48.6 Total 39 46 44 33 34 34 39 59 57 37 51 48 Table 8: Incidenceof ExtremeHouseholdPoverty by Occupational Status, HeadofHouseholdGender andPlaceofResidence Apprentice 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Others 23.0 0.0 10.1 0.0 0.0 0.0 7.9 7.9 12.6 3.0 4.7 EmDlover 0.0 0.0 0.0 0.0 2.4 2.1 0.0 14.7 12.5 0.0 6.0 5.3 Independent 6.5 6.9 6.8 0.6 1.7 1.5 6.0 18.2 16.9 5.1 15.1 13.7 Wage earner 5.5 3.5 3.7 0.0 0.4 0.4 0.0 7.8 7.5 1.7 2.9 2.8 Trainee 42.8 42.8 0.0 0.0 0.0 42.8 21.4 Jobber 6.9 4.0 4.5 0.0 1.1 1.0 0.0 14.5 13.9 4.2 7.2 7.0 Total 5.2 5.8 5.6 0.7 1.7 1.4 8.0 16.1 16.8 4.8 12.1 10.7 44 ANNEX 11: PUBLIC INSTITUTIONS RESPONSIBLEFOR THE SUPERVISION AND REGULATIONOF LABORRELATIONS The Ministry for the Civil Service, Labor and Trade Associations influences the running o f the labor market via its substantial regulatory prerogatives. It i s the supervisory body for the following agencies: The Directorateof Labor andSocial Security The Directorate's supervisory, advisory, and study assignments as described by Act 97-17 o f December 1, 1997, establishing Senegal's Labor Code, cover the six following areas: 0 Work environment: health and safety at work, the health and safety at work committees, and the occupational health services; Working conditions: child and female employment, working hours, and leave; 0 Labor relations: wages, employment contracts, and industrial relations; 0 Arbitration and negotiations: arbitration o f individual and collective conflicts, and negotiation o f collective labor agreements; Employment: management o fmanpower turnover; 0 Social security: supervision o f employers' obligations, supervision o f welfare bodies, and prevention andwelfare surveys. Figure 1: Directorate of Labor and Social Security organization chart 45 The Directorate o f Labor is made up o f five divisions andtwo units 0 HIV-AIDSUnit, attached to the Healthand Safety at Work Division; 0 Child Labor Unit. The Directorate has 70 labor and social security inspectors and controllers distributed between the Directorate, the 11 regional inspectorates, and the Dakar Industrial Free Zone Inspectorate. There are not enough staff to enable the labor administration to conduct its core assignments, especially since material working conditions are equally inadequate. The Directorate of Labor and Social Security has 11 regional inspectorates and one Labor Statistics Department. Table 1:Directorate of Labor and SocialSecurity staff Dakar Thies St. Louga Matam Kaolack Diourbel Ziguinchor Kolda Tamba Fatick DIFZ Louis 8 1 2 1 2 1 1 1 2 1 1 1 1 1 2 1 1 1 1 1 0 1 0 1 9 c 6 C 5 c 2 c 2 c 6 C 1 c 2 c 2 c 3 c 2 c 3 c Box 1: Settlinglabor disputes Individual disputes are referred to the relevant area labor inspector the worker may refer the case to the Labor Tribunal. Note that wo the Tribunal, butoftenpreferto lodgetheir complaint withthe lab Collective disputes concerningestablishmentsestablishedina number o f different re the Labor Director. Should no settlement be found, the worker pursuant to Article L272 of the Labor Code. If the collective di inspector's area ofjurisdiction, it is referredto this inspector for arbitration. Informal arbitration channels are the National Social Dialogue Co Social], the religious authorities, and the n orhood authori Hann neighborhood), These channels often prove e mediation. The Retirement Saving Institution of Senegal [Institutionde Pre'voyanceRetraite du Se'nkgal- IPRES] IPRES is a private body under central government technical and financial supervision. Ithas real management autonomy and its organization i s governed by: Act 75-50 of'April 3, 1975 on welfare institutions; implement in^ Decree 75-455 of April 24, 1975 making it binding on all employers and workers to belong to a pension plan, and its amended articles 11 and 21 amended bv Decree 76-17 of January 9, 1976; Order 3043 o f March 9, 1978 enacted by the Minister for the Civil Service, Labor and Employment, which tasks IPRES with managing the basic pension scheme, established by 46 abovementioned Decree 75-455, and which approves this institution's articles o f association and rules and regulations No. 1 and 2 concerning, respectively, the general pension scheme and the supplemental pensionplanfor managers. IPFZES funding: The pension scheme i s fundedmainlyby: Contributions from subscriber members (employers: 60 percent) and participants (employees: 40 percent); Surcharges on late payment o f said contributions; Revenues from investment o f the funds andrevenue-bearing real estate; and Proceeds from the financial management o freserves, subsidies, donations, and legacies. The institution's revenues therefore dependmainly on, and fluctuate with, payroll. Technicalmanagement The scheme is a pay-as-you-go pension system, in accordance with Article 13 o f Act 75-50. IPRES adopted this "pay-as-you-go" management method for reasons o f solidarity between working generations o f wage earners and the generation o f retirees, in that workers' contributions are immediately usedto finance retirees' pensions. Administrativemanagement The systemis managedjointly by employers andworkers. The General Assembly comprises 32 members appointed for a term o f four renewableyears. The Board o f Directors i s made up o f 22 memberselected for a term o f two renewable years. Table2: Number ofIPRESSubscribers,ParticipantsandBeneficiaries(2003) Subscribers Participants Beneficiaries GPS SPPM GPS I SPPM GPS 1SPPM 13,043 II2,647 III175,556 I 14,438 I1I98,816 I 4,115 GPS = generalpensionscheme. SPPM= supplementalpension plan for managers The Social SecurityFund [CaissedeSkurite`Socialel The Social Security Fundwas set up inJanuary 1956 and is governed by Act 91-33 o f June 26, 1991. It has the status o fa private body tasked with a public service mission. The Fundprovides services inthe form of: 0 Family allowances: Jhtenatal allowances; JMaternity allowances; and JStatutory maternity leave pay. 47 0 Occupational hazard benefits, in the event o f employment injuries and work-related diseases. Family allowances are the Fund's oldest and most well-known benefits. They are provided inkindand cashto the families and employees o f over 10,000 member firms. Benefits paid infamily allowances come to a total o f CFAF 72 billion for the last twenty years. Victims o f employment injuries and work-related diseases, another area handled by the Fund, also receive benefits inkindand cash. Moreover, the Fund pays employees statutory sick pay, to replace wages and benefits, in the event o f partial or total disability for the duration of the worker's life. The Social Security Fund has paid CFAF 25 billion inoccupational hazardcompensationto over 75,000 recipients over the last two decades. The Social Security Fund plays a key role in occupational hazard prevention by means o f its supervision, assistance-advice and corporate training activities. The injurycompensation system i s efficient, but the priority remains prevention. The Social Security Fundbenefits, like the PRES benefits, are financed by withholdings based on workers' wages, at varying rates, with the contribution shared between employer and worker, and sometimes paid exclusively by the employer. Administration: The Fundi s runby: 0 A body o fworker, employer and State representatives; 0 A board o f directors; A committee. These are all joint bodies with equal representation o f the different parties. They have decision- making and advisory powers. Number of Number of Number of Number of Number of employers employees beneficiaries children recipientsof allowances 14,265 245,572 75,884 281,013 8,162 Managementandlabor Under the terms o f Article L.6 o f the Labor Code, "The exclusive purpose o f the trade associations is to study and defend economic, industrial, commercial, agricultural, and skilled trade industry interests". The trade associations are made up o f workers' organizations and employers' organizations. 48 Employers' organizations: Formal sector organizations (i)TheNationalCouncilofEmployers[ConseilNationalduPatronat-CNP] The CNP has been in existence for 20 years and is made up o f 27 basic employers' federation groupings and five associate members. It covers 85 percent o f the modem sector's activities, with 80,000 wage-eaming employees and a turnover o f more than CFAF 3,500 billion. I t s decision-making bodies are: 0 An Assembly o fRepresentatives; 0 A Board ofDirectors; 0 An Executive Board; 0 A Permanent Secretariat; 0 Technical commissions (08); Think-tanklproposals groups (04); 0 Technical units (02). It focuses on labor market flexibility as a means o f fosteringjob creations bybusiness, especially first jobs for young people. It objects to the lack o f flexibility in recruitment, in industrial relations, and on leaving ajob. The CNP intends to step up action to create "Jobs for Young People" by means of: 0 Intensive implementation o f the National Govement-Employer Convention programs, with a goal o f 3,000 beneficiaries; 0 Support for start-ups by young men and women, with a goal o f 5,000 beneficiaries; 0 Assistance to youngjobseekers (writing CVs, covering letters, etc.); 0 Helpwith skills acquisition and further training; and 0 Consolidation o f staff in the hotels-tourism-catering sector, with a goal o f 4,000 beneficiaries. (ii)TheNationalEmployers' Confederation ofSenegal [Confi!di!rationNationaledes Employeurs du Si!ni!gal- CNES] The CNES defends a set o f values including the promotion of publicly-owned enterprise, good private governance, the development o f responsible entrepreneurship, employer unification, and a spirit o f cooperation and partnership. Its values have led it to make commitments to promote private investment, promote business competitiveness, promote employment, smooth industrial relations, and promote regional integration. 49 In2005, the CNES represented 307,792 jobs and CFAF 1,767 billion inturnover. It is made up o f 12 basic unions and has 1,800 members. (iii)The Senegal Business Movement [Mouvement des Entreprises du Sbnbgal - MDES] The MDES, formally the National Circle of Young Business Heads o f Senegal [Cercle National des Jeunes Cheji d'Entreprises du Sinigal - CNJ], was created by 300 young business heads in April 2000. Itholds an annual forum on youth employment. I nformal sector employers organizations ' (i)TheNationalUnionofRetailersandManufacturersofSenegalforEconomic and Financial Development [UnionNationale des Commercants et Industriels du Sbnkgal DEF -UNACOIS DEF] UNACOIS DEF has nearly 70,000 members working in retail, services and industry.It provides its members with facilitating services to obtain authorizations, assistance with training, information on and familiarization with tax and customs formalities, a travel agency, a housing cooperative, and a pilgrimage service to holy places. It has a network o f six mutual savings and loan associations grouped under an umbrella institution. UNACOIS DEF's aim i s to address the professional changes induced by globalization and the changes in the national economy. For this, its members are interested in moving towards value- added industrial activities, while calling for facilitation, especially with regard to the transparency o f tax and customs procedures. Some UNACOIS members who have endeavored to work inindustryhave experienced some discouraging failures due to administrative procedures. des Commercants et Industriels du Sbnbgal- UNACOIS] (ii)TheNationalUnionofRetailersandManufacturersofSenegal[UnionNationale UNACOIS has 115,000 members, 5 percent o f whom are established abroad (USA, Italy, China, and countries inthe sub-region). UNACOIS i s represented throughout the country via its network o f regional bureaus, department bureaus, municipality sections and market sub-sections. It is managed by an Executive Committee o f 104 members and a 33-member Executive Board with one President, 13 vice- presidents, including one woman, the President o f the National Women's Movement [Mouvement National des Femmes], and one young person, the President o f the National Youth Movement [MouvementNational des Jeunes]. It has a network o f 22 integrated and three affiliated mutual savings and loan associations. In 2004, it ordered a study on its strategic way forward, the main points o f which were to foster a shift from retail to industrial activities, exports via export companies and partnership with local producers, and the promotion o f young members and female members. 50 Worker organizations: There are 18 groups o f affiliated trade unions grouped into confederations and each made up o f sector unions. These groups all take part in the country's social dialogue. The following describes some o f the most representative o f these groups. The National Confederation of Senegalese Workers [Confidbration Nationale des Travailleurs du Sinigal- CNTS] The CNTS was founded in 1969 and i s steered by the following bodies: Congress: 0 Confederal Bureau; 0 Restricted Secretariat; 0 Executive Secretariat. The CNTS has eleven regional unions, local unions, and department unions. It has 65,000 dues- paying members in 65 basic unions. The CNTS is behindjob creation projects for women and the creation of a workers' solidarity mutual savings and loan association [Mutuelled'Epargne et de Crkdit Solidarite` OuvriBre -MECSO]. The National Union of Autonomous Labor Unions of Senegal [Union Nationale des SyndicatsAutonomes du Sinigal- UNSAS] UNSAS i s a structure set up to coordinate and steer the affiliated worker organizations. Its role is to: Help strengthen the organizations; 0 Steer and train; 0 Boost action concerning the major national issues (employment, individual and collective freedoms, purchasing power, etc.); 0 Discuss and propose action to improve competitiveness ina global environment (training o f experts in various areas to ably respond to the government and the employers' federations, which have their own experts inthe negotiations). UNSAS i s managed by a Secretariat o f 21 members, an Executive Board o f 85 members, and a National Committee. It has 55,865 members in54 basic unions. UNSAS has set up specialized committees to address questions such as the Economic Partnership Agreements (EPAs), the social institutions, and analyses o f wage scales with regard to taxation. The UNSAS 2004-2008 Plan o f Action contains a certain number o f initiatives to improve the employment situation, interms o fjob protection plans (support to redundant workers ("deflatks") -IPRES,Africamer, andCompagnie SucribreduSCnkgal). 51 The ConfederationofAutonomousUnions [Confkd&rationdes SyndicatsAutonomes-CSA] The CSA was founded by three unions on February 16, 1997. It now comprises 39 affiliated unions and trade associations. It has 40,000 members with 60 percent men and 40 percent women, 70 percent full-time workers, 15 percent part-time workers, and 5 percent in other categories (apprenticeships, volunteers and trainees). The confederation i s steered by: 0 A Congress; 0 A UnionCommittee; A ConfederalBureau, including anEmployment andYouthDepartment; 0 A Confederal Secretariat. It has a regional union and a regional bureau in each region, as well as a department union and a department bureauineach Senegalesedepartment. With the assistance o f the ILO's FORCE/LCP project, the CSA has launched actions to promote employment in the informal sector and rural areas. It has set up a mutual savings and loan association for central fish market traders, and has created EIGs to sell agricultural produce (groundnuts), while supporting income-generating activities. It has drawn rural women out o f the home by helping them, once literate, to set up incattle grazing and dyeing. 52 ANNEX 12: ACTIVE EMPLOYMENT INSTITUTIONSAND PROGRAMS I. ACTIVEEMPLOYMENTINSTITUTIONS THE 1.TheMinistryofYouth andEmploymentinstitutions Following the YEN (Youth Employment Network) program, the Ministry o f Youth and Employment has adopted a youth employment action plan [Plan d 'Actions pour Z'EmpZoi des Jeunes - PANEJ] and issued a youth sector policy letter based largely on the National Employment Policy. The PANEJ i s the result o f a consensual approach involving the government, employers, unions, young people, and civil society. Its development also meets Senegal's commitments to the United Nations, as a priority country, to promote youth employment. The Ministry plays an important role in defining employment policy and implementing job creation programs. It acts as mediator andprovides information on the employment market. 1.1The EmploymentDirectorate Missions: The Employment Directorate promotes, guides, and defines policies, and also coordinates, monitors, and evaluates programs and projects. It deals with all employment issues and, as such, i s tasked with helping define and implementthe employment policy. Structure:Pursuant to Decree 94-550 METFPAAAF o f May 26, 1994 organizing the Ministry o f Employment, Labor, and Vocational Training, the Employment Directorate i s made up o f 0 The Formal Sector Bureau; 0 The Informal Sector Bureau; 0 The Manpower Department. This structure does not meet the public employment service requirements o f efficiency and performance. P EmploymentDirectorateachievements Reform of the Manpower Department Senegal: information on employment via networks (family connections or friends: nearly 60 percent o f manufacturing firms according to ICA) indicates little input from public and private placement bureaus or alumni networks. There are also problems on the frictional market, as time spent by businesses to find staff i s six weeks according to ICA; in China and Pakistan it i s two weeks. A process has been underway since 2000 to modernize and improve the efficiency of the Manpower Department. A professional approach has been taken to offer new services to employers, jobseekers, and training structures: 53 Services offered to jobseekers 0 Training inactivejob-seeking techniques; 0 Vocational guidance; 0 Vocational assessments; 0 Contacthntegration. Services offered to businesses 0 Identification o f human resources needs; 0 Handling o fjob vacancies and recruitment. Services offered to training structures Placement o f graduates ininternships; 0 A cooperative framework to matchtraining supply to labor market demand. The Manpower Department has over 150partner businesses. In2002, a total of 144 businesses were visited, o f which 37 were new businesses and 107 were partners. Visits take the form o f an interview, and sometimes a survey o f the selected business to identify its immediate or potential staff requirements. Of the 7,790 jobseekers seen from 2000 to 2002, 10 percent were placed in internships, 42 percent were put in contact with potential employers (3,255 jobseekers with 34 businesses), 2 percent were recruited and 1percent receivedtraining. 1.2 The National Agency for Youth Employment [Agence Nutionale pour I'Emploi des Jeunes -ANEJ] Presentation of the mission: ANEJ is a public employment service, created by Decree o f the President o f the Republic 2001- 109 o f February 7, 2001. It has financial and technical autonomy. It is managed by a Steering and Coordination Council and a Director-General appointed by decree o f the President o f the Republic. The Agency's brief i s to: 0 Contribute to the implementation o f the youth employment policy defined by the public authorities; Take all action possible on the labor market to promote the employment o f young people; 0 Help young people find ajob, training, or vocational guidance; 0 See young jobseekers andinform them o f their rights and obligations; Help employers recruit young people; 0 Builda database o fjob-creation and start-up ideas; Helpyoungpeople create productive income-generatingactivities. 54 *:* Analysis ofthe mission: The Agency has a general mission to assist and guide young people, businesses, and structures liable to help develop the job supply for young people. This mission calls for a whole host o f services from reception through to integration into wage-earning or independent employment. *:* Services offeredto young peopleandpotentialpartner structures Assistance to young jobseekers:This entails a full range o f activities interms o f information, training, guidance and advice, and placement on the labor market. 0 Training injob-seeking negotiation techniques; 0 Informationto young people onjob opportunities; 0 Placement on the employment market. Assistance to employers: The services provided free of charge in accordance with the Labor Code concern selecting and submitting CVs for recruitment in businesses. In this regard, the Agency i s bound to offer its services. Assistance to young job creators and business promoters: A number o f consultancy and assistance services are provided to promoters, including: 0 Project evaluation and project dossier preparation; 0 Intermediation for access to financing; 0 Technical assistance and consultancy services for start-ups; 0 Start-up training and development o f the entrepreneurial spirit among young people. A database on growth markets and project ideas is available to help promoters with their initiatives. 1.3 The NationalCivic Service [Service CiviqueNational] Another important achievement in this area is the setting up o f a National Civic Service. Its mission i s to promote national voluntary work and active citizenship for young people, and to offer young people the opportunity o f learning and practicing a trade for two years. The National Civic Service started its operations in 1999. It i s a full-fledged citizenship and vocational training school. The two years spent at the National Civic Service improve young volunteers' chances o f findingajob and long-term employment. Over 2,400 young volunteers have already been mobilized, including a large body o f Agricultural Volunteers [Volontaires d 'Appui Ci 1'Agriculture - VAGRI] set up as part o f the National Youth inFarms Program [Jeunes dam les Fermes Agricoles], Note that the most high-profile body o f volunteers at present is the Agricultural Volunteers corps, the first generation of whom (21 people from Sangalkam) is working in animal production. 55 1.4 The project to set up a National Observatory of Jobs and Professional -Skills[ObsewatoireNational des Emplois et Qualijications Professionnelles ONEQP] A key problem underlies the hot employment crisis issue: inadequate information on employment, which impedes analysis and makes it extremely hard to implement suitable employment promotion policies. The Diagnostic Study of the Employment and Training Information System (SIMEF) and Analysis of the Potential User' Information NeedsI3finds that the national labor market i s made up o f a wide range o f complex factors: 0 An increase inthe number anddiversityo fplayers; 0 A keyplace heldbyprivate business, inits different forms; 0 A growing range o fpressinginformation andtraining needs; New employment, training andpromotion dynamics ineconomic activities. Moreover, the labor market is marked by a lack o f coordination o f public-sector and private- sector action. The instrumentscurrently available do not paint a clear picture o f the real market dynamics and do not allow for immediate reforms and suitable corrective action to be taken. The study also takes stock o f information sources on employment and training, identifies potential users' information needs and, most importantly, points to where employment and training departments should steer their priorities to satisfy all users' information needs, needs that are barely met at present. The statistical studies conducted to date do not provide clear information on employment, underemployment, and unemployment. The Labor Market Information System [SystBme d'Information sur le Marche` de I'Emploi - SIME] set up and conducted a General Census of Jobseekers in 1999, a National Survey on Daily Work in 2001, a Tracking Study of the Career Paths of Higher Education, Technical Education and Vocational Training Graduates in 2002, a Diagnostic Study of the Employment and Training Information System and Evaluation of Potential Users' Information Needs and a Study on Setting Up a National Observatory of Jobs and Professional Skills [Observatoire National de I'Emploi et des Qualipcations Professionnelles - ONEQP]. As a means o f improving labor market efficiency and transparency, the Observatory, which will be the SIME's operational tool, will be a vital steering and decision-making assistance tool for the future. 1.5 The project to set up LocalEmployment Initiative Centers [Centres d'hitiativespour 1'Emploi Local - CIEL] Another important strategy is the involvement o f local authorities and associations to help power up local employment. Inthis regard, a project has beendeveloped to set up Local Employment Initiative Centers [Centres d 'Initiatives pour I'Emploi Local - CIEL]. This i s an innovative l3Studyconductedby Pape Touty Sow in2000 for the Employment Directorate and the ILO. 56 approach consisting in the strategic option o f local employment management by means o f local approaches to promote local and rural employment. There are plans to set up Local Employment Initiative Centers ineight municipalities inSenegal. These centers will be linked to the department employment services and will help develop strategies for local employment. The aim is to develop and implement local employment promotion programs inpartnership with the local authorities. The decentralization movement in progress in Senegal for nearly two decades has transferred increasingly significant responsibilities to the local authorities. Under the National Employment Policy [Politique Nationale de I'Emploi - PNE] and its Action Plan, the local authorities have been called on to join existing work on employment issues. Economic and social development in urban and suburban areas is o f major importance to creating decent, sustainablejobs to reduce poverty and insecurity. The low budget resources o f the local authorities in Senegal mean that new solutions will have to be found for the design o fnew programs andtheir financing. Presentationof the project The Ministryin charge o f Employment plans to set up local employment promotion assistance frameworks in the shape o f Local Employment Promotion Initiative Centers [Centres d'Initiatives ci la Promotion de I'Emploi Local - CIEL]. These centers would provide a way o f addressing a concern shared by bothcentral government and local authorities. Institutionalaspects As a local structure, CIEL would report to the local authority inpartnership with the Ministryin charge o f Employment. It could take the form o f a technical department o f the local authority, but it is upto the partners to give it a definitive status. Missions CIEL would be tasked with steering and coordinating a Local Employment Plan [Plan pour I'Emploi Local - PEL], approved by the local political authority and endorsed by the Ministry under a formal partnership agreement. Action strategy CIEL would use primarily local resources (human, material, natural, institutional, etc.). As regards human resources, CIEL would be based first and foremost on the support and full participation o f the populations and grassroots associations (youth, women, notables, etc.) inthe design, implementation, and supervision o f the programs and activities chosen as priority by the beneficiaries. 57 The intention i s for CIEL to be underpinned locally by a "committee o f sponsors" made up o f key local business, political, cultural, and social figures who could advise the young and female beneficiaries, and help them find solutions to their employment problems. Interms ofmaterial andnaturalresources, CIELwould endeavor to identifyexisting local forms o f socioeconomic activity and potentialjob sources. Institutionally, CIEL would enlist the help o f all the employment promotion agencies and structures (especially the public services, micro-enterprises, SME/SMIs, partly publicly-owned enterprise, andNGOs working in its area) to create localjob creation synergies. Operationalstructure The Center could operate with a small team o f two to three people on premises built for the purpose or providedby the local authority. The center's other operating needs concern setting up, running, andfundingthe services to the beneficiaries (`jobseekers, etc.). Funding The center would be financed by: J Central government: central government could provide human resources and contribute to the financing o f microprojects initiated at local level via the micro-enterprise promotion funds, such as the National Employment Action Fund and the National Youth Promotion Fund [Fonds National de Promotion de la Jeunesse - FNPJ], andthe National Government-Employer Convention. J The local authority: its participation could take one or more of the following forms: provision o f premises and equipment, payment o f wages and operating expenditure, budget allocation, and mobilization o f decentralized cooperation. J Thedonors: participationwouldbe sought rightfrom thefirst phaseoftheproject. J CIEL itself: by providing services paid for by the institutional partners or beneficiaries, and by subsidies obtained from local or external partners. Pilotphase andfeasibility The pilot phase concerns the regions of: Dakar (municipalities o f Ouakam, MCdina, Tivaouane Diacksao, and Pikine-Est); Thies (municipality o f Mboro); and Matam (municipalities o f Matam, Ourassogui, and Kanel). 2. The Ministry of Armed Forces institutions:Agency for the Social Reintegrationof Soldiers [I'Agencepour laReinsertion Sociale desMilitaires- ARSM] The Agency was created in 2005. Under the hierarchical authority o f the Minister o f Armed Forces, the Agency is tasked with assisting the Minister o f Armed Forces with the development and implementation o f the policy to reintegrate released personnel, provide early retirement measures for officers, and reduce poverty, especially inretirees' homes. 58 The Agency has the following specific aims: Give a second career to young retirees; 0 Facilitate the occupational redeployment o f disabled veterans unfit for military service; 0 Assist with the reintegration o f those released from military service; 0 Assist with the integration o f soldiers' spouses and children; 0 Support the promotion o f entrepreneurship. Its missions are to: 0 Identify personnel for reintegration and candidates for retraining in liaison with the bodies incharge o fhuman resources management; Helpset up companies for reintegration andthe development o fentrepreneurship; 0 Seek and find partners for the companies; 0 Set up mutual savings and loan associations and a public limitedreintegration company; 0 Provide the companies and individual entrepreneurs with farmland, and land and premises for retail and office use; 0 Facilitate access to credit for the reintegration companies, especially by setting up refinancing lines made available to the Agency; 0 Help train the personnel to be reintegrated; 0 Provide logistical support to the reintegration structures. The Agency is managed by: 0 An interministerial Supervisory Board open to employer organizations; 0 A Director-General; 0 A Credit Committee. The Agency's resources are made up of: 0 Central government budget allocations; 0 Resources provided by development partners; 0 Fees paid by beneficiaries inreturnfor the Agency's services and other benefits; 0 Reimbursement o fthe loans to the operators; 0 Proceeds from investment o f the funds. Projects in progress: Project to reintegrate soldiers into agriculture: Model Farms. This is a pilot project conductedby the Agency to hone the parameters for an agricultural project model that could be replicated on a large scale. The pilot concerns two agricultural clusters o f 600 hectares: a rice-growing cluster in Rosso BCthio in the Senegal River Valley and a horticultural cluster inKeur Momar Sarr, for 15,000 direct jobs to be created with a total budget of CFAF 515,000,000. The project aims to produce 320,000 metric tons o f rice and 85,000 metric tons o f horticulturalproducts per year. The clusters are made up o f ten farms o f 50 hectares each, with heavy investments pooled in a Common Interest Center [Centre d'Inte`r6t Commun - CIC] managed by the Agency. 59 The farms will be incorporated in the form o f private limited companies [Sociktks Lz Responsabilitk Limitke - SARL] or public limited companies [Sociktks Anonymes - SA]. Their capital will be open to the soldiers and the populations in the areas where the farms are set up. The priority beneficiaries o f the jobs created will be military retirees and released military personnel, along with the local populations. 3. The Ministryfor Technicaland ScientificEducationandVocational Training institutions Vocationaltraining andthe labor market In the formal system, despite the implementation of the Ten-Year Education and Training Program [Programme Dkcennal de I'Education et de la Formation - PDEF], it has to be said that vocational and technical training i s the "poor cousin" o f the education and training system, which remains far too dominated by general education. Although extensive changes are being made to the technical education and vocational training system, the fact remains that the current systemfar from satisfies the private productive sector's requirements for skills and qualifications, especially when it comes to the industrial and/or manufacturing firms working mainly in the food industry, building and civil engineering, port activities, etc. Yet the fabric o f public and private vocational and technical training structures, whose primary aim i s to put young graduates on the market for all business sectors, i s quite varied. The vocational and technical training programs and curricula are not always designed to match the concerns o f the private sector, which is the main customer for graduates from the vocational training system. In the informal sector, a huge number of apprentices are found in craft units. However, apprenticeship conditions are precarious with inadequate equipment, crampedpremises, a lack o f safety, andproblems getting hold o f the work materials needed for training. Apprenticeship, long marginalized by the national education and training system, is faced with problems since there i s no official accreditation system. This in turn raises problems of employability on the labor market. It is urgent to capitalize on the experiments conducted by different programs and projects to be able to apply the new guidelines defined in 2002 to modernize apprenticeship. Consequently, operational links need to be strengthened between traditional apprenticeship and the conventional training system, andbetween traditional apprenticeship and the labor market. 60 3.1 The VocationalTrainingDevelopmentFund [Fonds deD6veloppement de la Formation Professionnelle -FONDEF] FONDEFis briefedto: 0 Promote continuing vocational training inrelationto the economic sectors; 0 Structure continuing vocational training supply and demand; 0 Finance continuing vocational training projects; 0 Conduct vocational training R&D. FONDEFis managed bythe followingbodies: 0 A tripartite Board ofDirectors, with government, worker, andemployer representation; 0 A tripartite Selection andApproval Committee, opento the development partners (French Cooperation, etc.); 0 The Management made up o f a Director, an Administrative and Financial Affairs Department, a Training Engineering Department, and an R&D Department. Its work includes: 0 Institutional reforms (review the texts and conduct part o f the reform, especially the continuing vocational training aspect); 0 Staff capacity-building, especially inbusinesses producing goods and services; Assistance to build a pool o f skills by production sector; it forms the bridge for cooperation with the Ministryin charge o f Employment, with FONDEF playing the role o f interface with the businesses. Business sector projects can be set up to train young people and place them in companies while monitoring their performance. FONDEF can act as project manager for continuing vocational training and traininghtegration for youngjobseekers. FONDEF has 102 beneficiary companies for over 4,000 individuals trained, and 117 approved training operators covering 19 training sectors (services, building and civil engineering, hotels, tourism, telecommunications, electronics, etc.). 3.2 The National Vocational Training Bureau [Office National de Formation Professionnelle - ONFP] Pursuant to Act 86-44 o fAugust 11, 1986 creating the National Vocational Training Bureau, this body's general mission is to: 0 Help the government define and implement the sector-based vocational training goals; 0 Assist the public and private bodies with their training actions, andmonitor performance; 0 Conduct studies on employment, skills, and qualitative and quantitative resources for initial and continuing vocational training inliaison with the interested bodies; 0 Coordinate action by business sector and by priority, assisted by existing structures or structures to be created; Coordinate the vocational training actions o f the bilateral and multilateral aid bodies. 61 To meet this general mission, the Bureau: Studies the problems raised by the match between training and jobs, as well as the purpose and content o f the training; 0 Makes proposals for the definition o f four-year plans; 0 Helps the economic operators and all the activity sectors diagnose, analyze needs, and draw up training plans or programs for the relevant targets; 0 Gives its opinion on the vocational training actions to be undertaken; 0 Promotes exchanges o f experience between national employer and worker organizations, andbetween similar foreign and international organizations; 0 Contributes financially to the creation o f new vocational training centers and i s the contracting agency for constructions built usingits funds; 0 Finances vocational training actions, either directly or indirectly via existing educational structures. The ONFP's responsibilities are similar to the Vocational Training Development Fund [FONDEF].Yet the two institutions differ intheir strategies and sources o ffinancing. 4. NationalEducationMinistryinstitutions 4.1 The National Educational and Vocational Guidance Center [Centre National d'orientation Scolaire et Professionnelle - CNOSP] Educational and vocational guidance services are an essential tool o f any employment policy, helping pupils and studentsto make vocational choices right from school inpreparation for their entry into the labor market. Training-employment mismatch problems stem from yawning gaps in the educational and vocational guidance system. In Senegal, these services are mainly the responsibility o f the CNOSP, which, following a buoyant periodjust after independence, found its human, technical, financial andmaterial resources drastically cut, seriously limitingits operational capacities. Policy Act 91-22 of February 16, 1991 assigned four main goals to educational and vocational guidance: 0 Ongoing and overall evaluationo fpupils throughout their education; Solution-finding for mismatchproblems; 0 Help with making choices by providing a wide range o f information tailored to all levels o f studies and accessible occupations; 0 Participationinthe objective evaluation o fthe education system. 11.THEACTIVE EMPLOYMENTPROGRAMS 1. The start-up assistanceprograms Inthe 1980s, the government launchedthe microcredit strategy for self-employment aspart ofits policy to reduce unemployment, and put in place a range o f programs, the first generation o f which saw the creation o f the National Employment Fund (1989) and the Standing Operational Studies and Consultations Group [GOPEC]. It then developed elements for a microfinance 62 promotion strategy to extend microfinance and make it easier for a greater number o f people to gain access to loans. This strategy has led to a booming microfinance sector in Senegal, with over 700 accredited decentralized financial structures. The sector has expanded at breakneck speed over the last ten years, as much in the number o f structures as the volume o f operations. From just 18 structures in 1993, there are now 724 structures (mutual savings and loan associations, savings and credit clubs, and structures that have signed a framework agreement with the Ministry o f the Economy and Finance). However, the nationwide spread o f microfinance institutions is quite imbalanced. There are areas o f highconcentration such as Dakar and Thies, which account for 40 percent o f the decentralized financial structures, and areas where these institutions are thin on the ground (Diourbel, Fatick, Kolda, Matam, and Tambacounda). This highconcentrationo f microfinance institutions inurban areas and the importance o f commerce in the volume o f loans granted accentuate the de facto marginalization o f the rural areas. Some microcredit programs for self-employment are described below, on the understanding that it is recommended to have a full study o f microfinance inSenegal inrelation to the labor market and poverty reduction. 1.1 The National Fund for Employment Actions [Fonds National d'Actions pour 1'Emploi -FNAE] The National Fund for Employment Actions was set up to support the different job creation programs, as muchwage-earning jobs as self-employment. A consolidated allocation o f over two and a halfbillion has been put inplace to underpin fund actions. Promoters have to provide a personal contribution o f 10 percent to benefit from a loan with an interest rate o f 8 percent for an average period o f three years. Two credit institutions are involved in financing the projects: the Senegalese Association to Support the Creation o f Socio-Economic Activities [Association Sinigalaise pour I'Appui u la Cre`ation d'Activitis Socio Economiques - ASACASE] and Action Plus CEDS-Afrique. Since 2000, a total o f 2,130 projects have been financed for 11,000 direct and indirectjobs created. 1.2 The National Fund for Youth Promotion [Fonds National de Promotion de la Jeunesse-FNPJ] The National Fund for Youth Promotion was set up to help young people aged 18 to 35 without wage-earning work to set up in self-employment. The Fundfinances the launch o f individual and group projects inall legal activities that generate value-added. Applicants for funding submit their project to one o f the Ministry o f Youth's department centers for popular and sports education [CDEPS]. A Project Accreditation and Monitoring Unit pre- selects applications submitted to decentralized financial structures for evaluation and approval. It 63 then returns them to the FNPJ for compliance checks, reassessment, and approval before being submittedto the FNPJ's Board o fManagement for a decision. The FNPJ's missions: 0 Finance business start-up projects and income-generating activity projects; 0 Ensure the sound management and efficient use o f the financial resources provided to the FNPJby the public authorities and other partners; 0 Develop a partnership with other national and international institutions sharing the same goals; Conduct training, information and communication actions; 0 Support the financing o f study projects, training courses, and project monitoring, supervision and evaluation missions on the ground. The interest rates practiced are: ICredit IRate I Term IGrace period Short term 7.5% 12months 3 months Mediumterm 7% 36 months 6 months 1) The Participatory LoanFund[Fonds de Pr& Participatfl The ceiling is CFAF 5,000,000. Loans may not exceed 20 percent o f the total project cost: Rate Term Graceperiod 7.5% 4 vears 1Year 2) The Guarantee Fund[Fonds de Garantie] The credit limit i s 50 percent o f total credits and may not exceed CFAF 5,000,000 with a rate o f return o f 2 percent per year. FNPJinstruments: 1) The Financing Fund[Fonds de Financement] The credit limit is CFAF 5,000,000, o fwhich: 0 Investment: CFAF 2,500,000; 0 Operating capital: CFAF 2,500,000. 64 The programsinprogress The FNPJ runs a Very Small Loans program to assist micro-activities in the craft and trade sectors with a view to: Reducing lead-times and simplifyingprocedures for the granting o f financing; 0 Fostering a satisfactory collection ratio; Reducing the imbalance inthe nationwide spread o f financing. Financing ranges from CFAF 50,000 to CFAF 500,000 with an interest rate o f 1.25 percent for a maximum repayment term o f 12 months. The FNPJ's achievements: Since its creation, the FNPJhas financed 2,378 projects for a total sum o f CFAF 6,231,853,144 and the creation o f 12,420 jobs. 1.3 The National Fund for the Promotion of Female Entrepreneurship [Fonds National dePromotion de I'Entrepreneuriat Fiminin -FNPEF] Created in2004, the FNPEF's brief i s to: 0 Promote training and capacity-building for potential or operational female entrepreneurs; Assist with the preparation o f project dossiers; 0 Finance the projects o f female entrepreneurs andproject initiators; 0 Guarantee the loans taken out with mutual savings and loan associations. The FNPEF i s managed by a Director and an Interministerial Board o f Management open to the network o f female entrepreneurs andmutual savings and loan structures. The Fund's resources come from: 0 Central government budget allocations; 0 Donor grants; 0 Interest from the loans granted to the women; 0 Donations and legacies; 0 Investment revenue. The FNPEFhas two interest rates: 5 percent for financing below CFAF 30,000,000 and 7 percent above this amount. Projects are financed by approved microfinance institutions following an in-house selection process based on a questionnaire and the last three years' financial statements. The microfinance institutions have exclusive responsibility for loan collection. The FNPEFhas set up a fundsecurity system inliaisonwith private operators inthe regions. 65 FNPEFachievements Since its creation, the FNPEF has received total central government allocations o f CFAF 2,000,000,000, and has financed 179 projects for a total sum o f CFAF 1,183,437,300 with the creation o f 1,621 jobs. A total o f 27,288 people have benefited from this. 1.4 The ASCNouthEmploymentproject With a budget allocation o f CFAF 1,000,000,000, a total o f 120 projects have been financed in the country's 11regions, with nearly 450 direct and indirectjobs. All the departments o f Senegal have received financing for young members o f the associative movement. 1.5 The "Return to Agriculture" Plan [Retour vers Z'AgricuZture -REVA] The REVA Planis based on four major observations: 0 The public authorities have neglected the rural world and past agricultural policies have failed; Rural Senegal's human resources have left the countryside for the towns; 0 The primary sector plays a minor role in the country's growth and development, with erratic performances since independence; 0 Young people and women are available and earn very little, especially in rural areas. There i s a need to create opportunities for them in the primary sector via pro-poor growth. The REVA Plan reflects the Government's decision to make agriculture the engine for Senegal's economic growth due to its knock-on effects on the other sectors. This is inline with the Poverty Reduction Strategy Paper, the Millennium Development Goals, the implementation o f the Agricultural Framework Act, and the Accelerated Growth Strategy. It aims to bring about a massive, steady and sustainable return o f the people to the landto make agricultural occupations the basis o f the national economy. Among its objectives are: action to curb illegal emigration with the Zero Illegal Emigration concept, the promotion o f a new kind o f farmer, the improvement o f food security and sovereignty, and an increase inagriculture's share o f GDP with a large contribution to exports. The REVA Planstrategy The Plan entails the creation o f IntegratedEmergence Clusters. The idea i s to promote development clusters in rural areas by creating large farms structured around traditional or new activities conducted by the local populations. 66 Four types o f clusters are planned: 0 Excellence Clusters, including Agricultural Clusters and Aquacultural Clusters, whose production is intended primarily for export and supermarkets as luxury, first-class, high value-added produce; Modem Village Farm Clusters; 0 Combined Agricultural-FishFarming Clusters; 0 Crop-Livestock Clusters. Choice o f sites: This is based on surface area availability, water resources, and agro-ecological factors as examined by commissions created at the rural community and municipality level. The beneficiariesof the REVA Plan 0 Young town and country dwellers, victims o f the rural exodus; 0 Women and women's groups; 0 Businessmenandbusinesswomen; 0 Civil servants, workers, and soldiers inservice, retired or retrained; 0 Farmers, farmers' associations and religious communities; 0 Graduates from training schools and universities; 0 Agricultural volunteers andjobseekers. Beneficiaries are selected by local commissions in the rural communities responsible for distributingthe agriculturalinputs.The lists o fbeneficiaries are checked byregional andnational commissions. Roleof centralgovernment Central government i s incharge of: 0 Defining, tracking, supervising, and evaluating the Program via the creation of a National REVA Plan Management and Implementation Agency [Agence Nationale de Gestion et deMise en Oeuvre du Plan REVA]; 0 Stakeholder training and capacity-building in liaison with the development partners, based on the associated Multidisciplinary Producer Training Centers [Centres Polyvalents de Formation des Producteurs] . Central government will put in place inter-district investments, material and equipment investments, and working capital requirements, which will be provided to the farmers inthe form o freimbursable loans. Pilotphase: The Plan has a pilot phase lasting from August 2006 to December 2008, with the aim of setting up 550 IntegratedEmergence Clusters: 0 80 Excellence Clusters; 0 30 Agricultural and Aquacultural Clusters; 0 300 Modem Village Farm Clusters; 0 70 Combined Agricultural-Fish Farming Clusters; 0 100Crop-Livestock Clusters. 67 This pilot phase is expected to create 300,000 directjobs and as many indirectjobs, a significant drop in imports o f dairy products (CFAF 25 billion) and meat, the doubling o f market gardening production, and the creation o f an agro-industrial fabric. Duringthe roll-out phase from 2008 to 2015, there are plansto set up: 0 500 Excellence Clusters; 0 3,200 Modem Village Farm clusters, ten per rural community; 0 1,000 Agricultural and Aquacultural Clusters; 0 1,000 Crop-Livestock Clusters. The initial overall investment inthe REVA Plan is estimated at US$60,000,000. Bilateral and multilateral development partners have already shown their interest in helping the Senegalese Government implement the REVA Plan. This i s the case with Spain (20,000,000 euros) and India, as part o f Team 9, from which Senegal could gain some US$60,000,000 to US$80,000,000. The European Union, Italy and France have also shown an interest inthe REVA Plan. 1.6 The Projectfor the TrainingandIntegrationof GraduatesfromArabic InstitutesandUniversities(Projet d'Appui d la Formation et I'Insertion des Dipldmbs des Instituts et Universitbsde LangueArabe] The Project for the Training and Integration o f Graduates from Arabic Institutes andUniversities has as its goal the training and integration o f 175 graduates: 125 into independent employment and 50 into wage-earning employment during a first pilot phase. The program has three components: 0 A Training Component; 0 An Independent Employment Component; 0 A Wage-Eaming Employment Component. A credit line o f one million US dollars, or CFAF 550 million, has been granted to integrate the 125 graduates selected into 63 projects, with two to three Arabic scholars per EIG. The loans are provided at a rate o f 8 percent, 4 percent o f which is to remunerate the financial departments o f the credit agencies, which also receive institutional assistance, one percent to fund the revolving fund, one percent for the Islamic Bank o f Senegal and one percent for the guarantee fund. The following accounts have beenopenedwith the Islamic Bank o f Senegal: Deposit fund account for project financing; 0 Institutional assistance account; 0 Guarantee account, with CFAF 100,000,000 provided by central government; 0 Reimbursement account. 68 As at December 30, 2005, a total of 97 o f the targeted 125 graduates had been integrated for a 77.6 percent achievement rate. These promoters set up inbusiness in54 projects inoperation, for an execution rate o f 87% o f the target of 63 micro-enterprises to be financed. The financing o f 54 projects for 97 Arabic scholars came to CFAF 274,064,487. This accounts for 52 percent o f the sum allocated to microprojects. It represents an optimization o f unit costs, to the tune o f 5 million per project compared with the 8.8 million initially estimated. . A further 30 projects were finalized with the agencies as o f the date o f closure o f project operations on June 30, 2005. In addition, ten projects were submitted by Arabic scholars in Ziguinchor, for a sum o f approximately CFAF 74,000,000. Murabaha was applied to all the financing, inkeeping with Sharia law, with conditions deemed advantageous compared with those practiced by the other microfinance institutions on the marketplace. In terms of impact, 235 jobs were created or consolidated in addition to a large number of seasonal jobs in the agricultural, market gardening, and fish trade sectors. The other sectors concerned are trade, poultry farming, grazing, preschool, craft production, etc. The geographic distribution is: Dakar and its outskirts account for 40 projects, St. Louis for five, Thies for five, Kolda for two, Kaolack for one, and Diourbel for one. The beneficiaries are represented on the project's Steering Committee by the League of Graduates o f Arabic Institutes andUniversities, which gives its moral support. 1.7 The Regional Solidarity Bank [BanqueRe`gionalede Solidarite`-BRS] The Regional Solidarity Bank is part o f a regional poverty reduction approach. InWAEMU, this initiative was conceived inthe form o f a banking and financial group with an umbrella structure, a holding company designed to be an investment company. The group's main activity is to finance, without a formal guarantee, projects initiated by WAEMU country nationals who do not have easy access to the classic banking system, from which they are excluded. The Senegal BRS targets: 0 Unemployed graduates from higher, general, technical, and vocational education, and engineering colleges; Apprentices who have completed their training with a master craftsman; Women (maximum 55 years old), working or project initiators; Nonfinancial cooperatives o f manual workers, farmers, stockbreeders, fishermen, and craftsmen; Operators o f productionmicro-enterprises aspiring to develop or modernize their activity; Decentralized financial systems designed to set up or refinance their members or customers' investment projects; Small and medium-sized enterprises and industries; 0 All project initiators; 69 Types o f financing: The Senegal BRS offers the following services: Investment credit: purchase of productionequipment, movables, and office equipment; Short-term cash advances: financing o f working capital requirements, discounting o f notes representative o f receivables and ad-hoc advances; 0 Securities, endorsements, and other types o f guarantee: bid bond, mobilization advance bond, performancebond, andholdback bond; 0 The setting up o f lines or refinancing for microfinance institutions for activities within the scope o f the BRS. Credit terms: ICredit ITerm IGraceneriod I Investment 5 years 6 to 12months Cash advance 2 years 3 to 6 months Partnership network: The BRS i s setting up a network o f institutional, technical, financial, and commercial partnerships to consolidate the activities andjobs in the partner structures and make them more professional. 1.8 The BlindGraduate CraftsmenCooperativeProject [Projet de Coopbrative des Aveugles Artisans Dipl6mbs] This project was launched in September 2002, with the opening o f two brush-making units and two weaving units. It was financed by a loan from the National Fund for Employment Actions [Fonds National dgctions pour I'Emploi - FNAE], a subsidy from the French Social Development Fund, and a contribution from the Public Works Implementing Agency [Agence d'Exkcution des Travaux d 'Inte`rgtPublic - AGETIP]. The project gave rise to the employment o f 21 young blind graduates from the National Education and Training Institute for the Blind [InstitutNational d 'Education et deFormation des Aveugles - INEFJA] inThies. 2. The active waPe-earningemployment programs 2.1 The National Government-Employer Convention for the Promotion of the Employmentof Young Graduates [ConventionNationaleEtat-Employeurspour la Promotion de I'Emploi des Jeunes Diplambs - CNEE] Issuesand challenpes 0 Reduce socioeconomic exclusion from the labor market by giving young people a greater place; 0 Reduce social instability with its adverse effect on business and investment; 0 Promote the national economy's competitiveness by upgrading human resources via apprenticeships and training; 70 0 Make it easier for businesses to access skilled human resources in the short or medium term and at a lower cost. Conventionprograms There are four conventionprograms: 0 The Training and Apprenticeship Programmade up of: o Apprenticeships; o Incubationcourses; 0 Retraining and/or reskilling courses: 0 The Solidarity Contract Program; 0 The Spinoff Contract Program; 0 The Financing o f HumanResources for SMEs Program; Services provided 0 Selectionof candidates from the file o fjobseekers; 0 Complementary theoretical training; 0 Administrative facilitation in relations between the participating businesses and the administrations involved inthe Convention implementationprocedures; 0 Health care for the intern or apprentice in the event o f an employment injury or work- related disease; 0 Reimbursement o fpart o f the monthly allowance provided to the intern or apprentice. Adoption of the Convention's provisions The member firms and establishments o f the employer organizations party to the Convention (CNP and CNES) are automatically deemed to subscribe to the provisions o f the National Government-Employer Convention. The firms and establishments that are not members o f these organizations, and informal sector employers, may, pursuant to Article 4 o f the Convention, benefit from the financial advantages provided they participate in at least one of the Convention programs, and in accordance with the agreed procedures. Adoption o f the provisions i s demonstrated by the signing o f a partnership agreement between the Ministry for the Civil Service, Labor, and Employment, acting for and on behalf o f the Government and represented by the Director o f Employment, and the business hosting the apprentices or interns. 71 Trainee and apprenticeselection procedures The businesses inform the Employment Directorate o ftheir internship and apprenticeship offers. Beneficiaries for the different programs are selected primarily from the file o f jobseekers managed by the Employment Directorate. The business contacts the nearest manpower bureau for three to five proposals o f candidates per internship or apprenticeship offered. It then makes a final selection and informs the relevant bureau so that it can update its database. The internship and apprenticeship contracts are sent to the Employment Directorate. A partnership agreement i s then signed with the business to determine the obligations o f both the business and the Government. The cost per participant paid by the Government i s approximately CFAF 216,961 for an average six-month internship or apprenticeship. Impact of the Government'sfinancialcontributionon emplovment The purpose o f the National Govenunent-Employer Convention is to actively and regularly promote youth employment. To date, the Convention has placed over 1,500 young graduates in minimum six-month internships and apprenticeships in businesses where they have acquired the experience that i s generally a prerequisite for any recruitment offer. This training serves as a real employment springboard for young graduates. Note that trainees are almost always hired by the host business or another business at the end o f their training. Sometimes, they are evenhiredbefore the endo ftheir contract. From 2000 to 2002, 168trainees were hired: one in2000,23 in2001, and 144 in2002. Of the 144 interns and apprentices hired in 2002, 50 were taken on by private education establishments and the others by industrial and commercial companies. The second most representative sector for trainee recruitment behind private education was the field o f mechanical engineering, accounting for a total o f thirteen or 9.55 percent o f the trainees hired and covering experts in general mechanics, mechanical engineering, electro-mechanical engineering, etc. This indicates a certain buoyancy inthis sector. Inthird place, after private elementary education and mechanical engineering, came call center agents with fourteen trainees recruitedfollowing their training. Trainees were also hiredin areas of expertise as varied as information technology, management- accounting, chemistry, pharmaceuticals, electrical engineering, secretarial work, horticulture and the food industry,sales and marketing, sheet metalworking, etc. 72 The second-generationNationalGovernment-EmployerConvention The Government and employer representatives have started talks on a second-generation National Government-Employer Convention to promote the employment o f young people, due to take the form o f an act on creating and sustaining employment. The employment promotion actions set downby the bill are taken as essential components o fthe national employment policy. They are called "government-subsidized contracts'' and are concluded in the form o f fixed-term contracts as defined by the Labor Code, with specified dispensations. The "Government-subsidizedcontracts" are: 0 Professionalization contracts provided by the local and regional authorities, cooperatives, non-governmental organizations and other civil society bodies; Solidarity contracts; 0 Incubation contracts; 0 Communityjob contracts; 0 Retraining and/or reskilling contracts; HumanResources for SMEs contracts; 0 Entrepreneur contracts. A major second-generation innovationis that it allows for a local civil service to be gradually set up to improve municipal management performances and create a large number oflocal authority management jobs. The bill provides for tax, budget, and social incentives to support the businesses that take on young beneficiaries o f "Government-subsidized contracts" and apprenticeship contracts. It also provides for proactive measures for disabled persons and crafts businesses. 2.1 Program for the employment of low-skilled and unskilled persons: Labor- Works ImplementingAgency [Agenced'Exkcution des Travaux d'Inte`r2t Public - Intensive Works [Haute Intensite` de Main d'Oeuvre - HIMO] and the Public AGETIP] The Senegalese Government set up AGETIP in 1989 mainly to offset the negative effects o f the different structural adjustment programs put inplace in the 1980s, hence the importance at this time o f placing the emphasis onjob creation. The major Labor-Intensive Works Program [Haute Intensite` de main d 'Oeuvre- HIMO] for the employment o f low-skilled and unskilled persons i s involved. The Senegalese Government assignedAGETIP the following goals: Generatejobs and contribute to a broad-based distribution o f income; 0 Buildthe technical and financial management capacities o f businessedproject managers by means o f training, and provide jobs and training to unemployed workers in the construction sector; 73 0 Build the management capacities of owners to improve the formulation o f projects/programs and efficiency inthe management o f finished works maintenance; 0 Make it easier for the populations to gain access to basic infrastructures and services (education, health, water, sanitation, etc.); 0 Consolidate, strengthen, and develop the achievements o f Delegated Contract Management [Maitrise d'Ouvrage De'le'gue'e - MOD] practiced by the Agency in the development sectors; 0 Step up and improve the implementation o f transparent and auditable procedures to ensure efficiency in studies, operations monitoringlevaluation, procurement, and the payment o fbusinesses; 0 Find a balance between reduced costs, Agency profile and measurable efficiency o f implementation methods. The main reason why AGETIP was set up -job creation - has no longer been at the top o f the list o f concerns since 1998, when the procedural guidelines were changed with the withdrawal o f the requirement that each project should present a minimum manpower ratio o f 20 percent as a criterion for project eligibility. Among the measures proposed in the PRSP, the promotion o f labor-intensive activities is highly recommended since this approach offers the possibility o f using local manpower to build and maintainproductive economic and social infrastructures. The approach could be an effective way o f reducing underemployment among young people in urban areas, since underemployment i s the main cause o f their poverty. The impactof AGETIP actionon employment From 2000 to 2005, AGETIP action covered all the regions o f Senegal, 67 municipalities, and 250 rural communities. The Agency worked in particular on socioeconomic infrastructures: health, education, roads, rural infrastructures including earth roads, water supply and sanitation, socio-educational and cultural infrastructures, public and administrative buildings, and the promotion o f SMEs andmicro-enterprises via credit. Over the period, the Agency executed projects for a total sum o f CFAF 73 billion (US$132 million). A good part o f the works was executed by SMEs inthe regions, with a highproportion o fjuvenile manpower. 74 The results o f the assessment o f job generation for the 2000-2005 period show the following situation: Table 5: Resultsof AGETIP action enterprise I enterprises created income ~~ management senior primary renewable school graduation certificate (BEFM) level Technical 43 Engineers 08 307,000 per 12 months project Technicians 35 employee renewable management Entrepreneurs 29 Tradesmen 2,048 IBuilders-Unskilled 40,400 per 4 months labor I employee The programs had a considerable impact on employment: 0 The average ratio o f the cost o f manpower to the total cost o f the projects for all the programs was 16.72 percent. This percentage i s below the minimum ratio o f 20 percent o fmanpower content inthe works; 0 This enabled CFAF 18 billion o f the CFAF 108 billion in works to be distributed as payroll injected into the local economy; 0 During the 2000-2004 period, approximately 7 million days o f work were created, equivalent to 93,741 direct jobs o f an average length o f three months or 18,748 direct jobs per year. In addition to the 18,748 direct jobs created per year, some 28,122 indirect jobs were created. It can therefore be estimated that, given the current conditions for infrastructure construction by AGETIP, the agency generated a direct and indirect volume o f some 46,870 jobs. AGETIP triggered, from a huge number o f works contracts o f different sizes and levels o f difficulty, the creation o f a diverse fabric of building and civil engineering SMES and engineering firms that previously were non-existent (end o f the 1980s). This represents a long- runbeneficial effect. So the building and civil engineering sector, gradually structured and professionalizedunder the effect o f the conditions imposed by AGETIP, developed a response capacity for economic stimulation that benefited first and foremost the sector's labor market. From the point o f view o f works, AGETIP awarded 1,572 contracts from January 2000 to December 2005, including 1,402 contracts to SMEs with an average turnover o f less than CFAF 300 million. 75 It is commendable that 99 percent o f the works contracts (170 o f which are deemed large-scale works) were executed by Senegalese firms, which means that several SMEs became large enterprises; these are also highly active in the real-estate sector, which has seen an incredible boom inrecent years. Giventhat 92.5 percent (infinancial terms) of these contracts are performedby local engineering firms, their impact on the employment o f young professionalsmust be highly considerable. With Senegal having frozen its administration staff numbers, a large number o f young graduates such as engineers, senior technicians, sociologists, economists, facilitators and pollsters have found job opportunities inthis part o f the private sector. 2.3 The Directory of Trades and Jobs [Rkpertoire Opbrationnel des Mktiers et Emplois -ROME] The Directory o f Trades and Jobs [Rkpertoire Opkrationnel des Mktiers et Emplois - ROME] is being put together with a first tranche of funding from the Consolidated Investment Budget (BCI). This substantial project will cover 22 occupational categories and 66 industries for which job-trade files will be drawn up. This database will give the labor market more flexibility, clarity, and adaptability, and will smooth the way for professional mobility, which i s still limited in Senegal. A pilot test on the hotels-tourism-catering industry and the buildingand civil engineering sector has been underway since October 2005. The project will thenbe rolled out to other sectors. The Directory of Trades and Jobs will form a national database on trades andjobs. Its purpose i s to: 0 Serve as a medium for qualitative analysis and the definition o f profiles o f labor supply and demand as recorded by the employment services; Represent an operational and up-to-date documentary source on the content o f jobs and trades for staff and users; 0 Consolidate the common language that the public employment service needs to use with its partners to conduct itsjob efficiently. A Steering Committee made up o f representatives o f employer and worker organizations and of representatives o f government services working on employment, investment promotion, training, and statistics has beenset up along with an expert group. The pilot project on the hotels-tourism-catering and building and civil engineering sectors was launched in October 2005 and was included in the 2005-2007 Three-Year Priority Investment Program. Work has started on reforming the Manpower Department, until such time as the future National Employment Agency [Agence Nationale pour I'Emploi - ANPE] is set up, with government fundingo fthe Manpower Departmentmodernizationandimprovementproject. 76 The jobseeker services system has been improved with the implementation o f the new National Government-Employer Convention to promote young graduate employment. This has enabled the Manpower Department to put 6,889 jobseekers in contact with businesses, wherein 1,496 young people have secured an apprenticeship or internship, and where 842 trainees have been recruited following their training. Similarly, Service Level Contracts have been signed with the regional inspectorates o f the four most industrialized regions - Thies, Zinguinchor, Kaolack and Saint Louis -to develop the "employment" function inthese regions' labor inspectorates. 2.4 The Tool Houses [Muisonsde Z'Outil] Lastly, the Ministry o f Youth achievements also include the implementation o f the "Tool House" program. This project has been set up to support action to train and employ young people in the technical and craft sectors. In this regard, the Government o f Senegal has launched a vast program to build "Tool Houses". The overall cost o f financing construction and equipment, estimated at CFAF 1,432,000,000, is in place, and 34 "Tool Houses" are being built in the departments, with 20 up and runningfor two months already. This program will facilitate the employability o f at least 10,000 young people byproviding work tools and equipment andby developing an entrepreneurial spirit. 77