BEYOND THE ‘HIDDEN DEBTS’ NARRATIVE: A ONE-COUNTRY REFORM TO ELIMINATE SENEGAL’S PATHOLOGICAL DEBT BURDEN

Andrea Carrera, Alvaro Cencini, Ndongo Samba Sylla –

Senegal’s financial predicament, characterized by “hidden debts” and an
unsustainable external debt trajectory, is more serious than is commonly
recognized. The current international payments regime obliges countries facing
external deficits to pay their external debt twice. This structural constraint cannot
be addressed by austerity policies which only exacerbate the situation.

As an alternative to austerity, this policy brief suggests a reform that will allow
Senegal, in full sovereignty, to avoid the duplication of its external debt and to
capture substantial public revenues – amounting to the equivalent of billions of US
dollars annually – that can be used to finance its economic development.

This Policy brief is part of the editorial series published during the Experts meeting and International Conference organized by IDAN on Senegal’s debt Crisis (11 to 13 May,Dakar,Senegal).