Improving the living conditions of the Senegalese, particularly the working classes, will require strengthening their purchasing power. It is inconsistent to note clear inflation and, at the same time, to envisage a decline in foodstuffs whose production depends on inputs at unchanged prices. The reaction of bakers consisting of objecting to the reduction in the price of bread on the grounds that the purchase price of flour remains unchanged is a perfect illustration of this. In addition, the increase in prices naturally follows the curve of accumulated inflation rates due in part to exogenous shocks. Therefore, it is logical that its impact on the standard of living occurs. On the other hand, the variation in consumer prices must be indexed to wages and remuneration for services and production in the primary sector. That’s the good part.
When salaries, rents and other income and expenses are fixed according to circumstances, it only gives last words to be delivered only for form. Reduction in the means of State intervention, the 53 billion devoted to the said reduction would be even more effective if they were exclusively intended, like the family security grants, for the most vulnerable social strata. Eh yes ! Macky Sall was right on this one. He was also partly right to increase wages with a view to better purchasing power. Unfortunately, its governance suffered from many problems, notably that of a lack of transparency.
With a little humility, the current regime can succeed in the challenge of emergence. But should he let go of his vanity? For households, viable income is the net assets necessary to be able to afford goods and services allowing them to escape a situation of poverty. Therefore, any social policy that does not primarily target the most deprived will be doomed to failure if the reduction of extreme poverty remains a priority. These price reductions will impact Senegalese people indiscriminately, from the wealthiest to the poorest. This is especially why they are socially unjust and arbitrary.
For the many households living below the poverty line, food expenses represent two-thirds of income. Given the factors which are at the source of the general rise in prices and which are linked to long-term trends, the cost of living is not a cyclical phenomenon. Thus, the optimization of foreign investments as well as the strategic management of resources must be rather well defined and well defended. Unfortunately, the recent meager reduction in prices is more a matter of informal and approximate management of public affairs which will ultimately lead the country towards an economic impasse.
Birame Waltako NDIAYE
