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Continue ReadingSenegal from former slave traffickers to current challenges / by Investing Man
The 15th to 19th century is like an African nightmare.
The power of colonial hunting era came to Africa because they wanted ′′ slave labor ′′
One of the major source of slave traffickers in those days is the country with capital in Africa's continent's far west.
named ′′ Republic of Senegal ′′
What story is this country going through
Investing man will tell you about it.
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Senegal name comes from Portuguese that means part of the water.
Due to the west land of the country adjacent to the Atlantic Ocean.
Senegal Capital called ′′ Dakar ′′ located west of the country and west of Africa.
Location is conducive to maritime trade
Dakar becomes the center of West Africa's major trade.
The first nation to set up a trade station is Portugal, the world colonial in the early era.
To exchange goods with African capitalists
Especially ′′ slave labor ′′
To apply to labor in Brazilian cane farm, Portugal colonies in those days.
Slaves in the African continent will be brought to Dakar.
Then boarded to an island called Gory.
A small island 3 km from Dakar city in the Atlantic Ocean.
To wait for exchange with another product
This island place is called ′′ House of Slaves
After Portugal, the power of those days took over this island.
Both England, Netherlands
To export slaves to labor in their colony
But the nation that influences Senegal the most is France.
The year of July. Prof. 1659 West African area becomes a French colony.
This includes Senegal
France set Dakar to be a trade hub with West African countries.
And got the right to occupy Gory Island from Netherlands.
To export slaves to labor in South North America.
And set up a city to expand trade at the Senate River's mouth.
300 km from Dakar city, north along the coastline.
Name this city ′′ St. Louis ′′
France lays the foundation for Senegal as a trade goal to Africa.
Build a railroad between Dakar and St. Louis for shipping.
Also laying the education foundation for locals
To help with product trade
By the founding of the University in Dakar and St. Louis
That's why Senegal uses French in government language.
And use Saefa fringe as the main currency of the country.
And then the 5 century slavery trade ended in mid 19th century.
Later in July Prof. 1960 Senegal is also free from the French colony.
Been ruling the country with president and local government since then.
Even Senegal is a major economic hub of West Africa.
But due to over half of the country, the upper part is in the Sahara Desert.
Making space for farming is limited
So relying on large amounts of foreign food imports and energy.
Assembled with main export products like mineral phosphate. Products from peanut oil fishery are low value.
Government loaned a lot of foreign debt to spend.
And intervene in domestic product prices to low levels.
Senegal is missing the account balance. Keep walking.
Poor in the year. Prof. 1994 Senegal government needs economic reform.
Starting from decreasing 50 % of Zefa's money, causing domestic inflation to 32 % immediately because imported products have higher prices.
From the beginning Senegal used a fixed exchange rate tied to the Euro, it changed to the floating exchange rate.
Reducing government price interventions
And receive subsidy from IMF and other countries like France, USA.
Even the economy can move on.
But Senegal is still missing the account balance. Keep walking.
From relying on foreign imports and subsidies all the time.
Year 2016, lack of accounting. 4.2 % of GDP.
Year 2017, lack of accounting. 7.3 % of GDP.
Year 2018, lack of accounting. 6.9 % of GDP.
So, so
Senegal challenge right now
How to manage resources and value goods in the country
To be more dependent on yourself.
No need to wait for foreign aid all the time.
From Senegal's story, a lesson that we learned.
Although most African countries now have better status from the past with the slave trade.
But these countries are going to have a small economic size.
Because of lack of exportable product development at high value
And rely on importing from foreign goods
Most developed countries are the opposite.
Importing products will be imported to produce high value goods to export.
Trick it's up to what these countries do
To be free from this problem
Which, if possible, will eventually make the economy equal to other countries..
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References
-https://www.worldbank.org/en/country/senegal/overview
-https://www.britannica.com/place/Senegal
-https://en.wikipedia.org/wiki/Senegal
-https://tradingeconomics.com/senegal/current-account-to-gdp
-https://www.britannica.com/place/Goree-Island
-https://www.britannica.com/topic/transatlantic-slave-tradeTranslated
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