SENEGAL (and earnings from tourism). All of these products are subsidized either directly or indirectly in order to encourage exports and thus help the economy to grow. The subsidy policy, combined with import taxation, is a partial alternative to a flexible exchange rate policy. There are two direct subsidies which benefit peanut and cotton exports. The price stabilization fund pays the oil-crushing firms the difference between the international price for peanuts and the farm-gate price (set by the government) which they have to pay the growers. The "break even" fund pays the oil-crushers to cover their fixed costs during bad crop years. Until 1985 these funds covered both domestic and export production. Since that time, however, only export activities are covered. Since 1982 the government has been successful in enhancing non-traditional exports, particularly fish and fish products. At least part of this success can be attributed to subsidies which take the form of credits on import duties for inputs to production. These credits can be used by firms to offset other taxes for which they may be liable (e.g., export taxes). Similar credits apply to firms operating in the Industrial Free Zone of Dakar. 7. Protection of U.S. Intellectual Property Senegal has been a member of the World Intellectual Property Organization since its inception, and also belongs to the Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection of Literary and Artistic Works. U.S. citizens are entitled to treatment equivalent to that granted to Senegalese nationals with respect to maintaining their patent, copyright and trademark rights. Protection against arbitrary cancellation of patents as well as trademarks is valid for 20 years. Nevertheless, there is a thriving market in Dakar for imitation or counterfeit watches imported from the Far East and for bootleg cassette tapes. The government has recently begun publicizing efforts to crack down on these operations. However, since the vendors are almost exclusively street hawkers, enforcement has proven to be relatively ineffective. 8. Worker Rights * a. Right of Association A minimum of seven people, each having worked within their profession for at least one year, are free to form a union by submitting a list of members and a charter to the Ministry of Interior. A union can be disbanded by the Ministry if the union's activities deviate from the charter. Even though they represent a small percentage of the overall population, unions wield a significant amount of political influence, primarily because of their ability to disrupt essential services. Although 1990 was relatively free of industrial action, unions have the right to strike. SENEGAL b. Right to Organize and Bargain Collectively Senegalese unions have the right by law to organize and to bargain collectively, and these rights are protected in practice. There are no known instances of workers being forcibly discouraged from exercising these rights. In recent years, as the economic situation worsened and factories and businesses closed down, collective bargaining has succeeded in several instances in guaranteeing extended benefits for laid-off workers. The government will intervene in labor/management disputes when requested and plays a mediation and arbitration role in the private and state enterprise sectors. C. Prohibition of Forced or Compulsory Labor There are no reports of forced labor in Senegal. Forced or compulsory labor is prohibited by law. d. Minimum Age for Employment of Children The minimum age for employment in Senegal is 16 for apprenticeships and 18 for all other types of work. These restrictions are closely monitored and strictly enforced within the formal economic sector, that is, the area of the economy over which the government can exercise some supervision such as state agencies, large private enterprises, or farmers gathered into cooperatives. On the other hand, minimum age and other workplace regulations on family farms in rural areas and in small, privately owned businesses are not seriously enforced. e. Acceptable Conditions of Work Workers in the formal economic sector have standard workweeks (40 to 48 hours per week for most professions), holiday and annual leave benefits (usually 1 month per year), and a variety of health and safety regulations which benefit them. These regulations are incorporated into the Labor Code approved by the National Assembly and are supervised by Ministry of Labor inspectors. Enforcement, however, appears to be uneven, especially outside the formal wage sector. f. Rights in Sectors with U.S. Investment There is very little direct U.S. investment in the goods-producing sector of the Senegalese economy. Those sectors which have some U.S. investment are petroleum, food and related products, chemicals and related products, and other manufacturing. Worker rights in each of these areas are covered by the Senegalese labor code, as discussed above. (D)-Suppressed to avoid disclosing data of individual companies Source: U.S. Department of Commerce (unpublished) * Section 8 is an abridged version of Section 6 of the Senegal country report included in the Department of State's Country Reports on Human Rights Practices for 1990, submitted to the Congress January 31, 1991. For a comprehensive discussion of worker rights, please refer to that report. 1/ Statistics depending on population data often are unreliable. Official black population and unemployment rates are understated. Most economists believe that black unemployment is in excess of 25 percent, compared to government estimates of under 15 percent. Rates among other racial groups are lower. SOUTH AFRICA 1. General Policy Framework South Africa is an advanced developing country with a modern industrial sector, well-developed infrastructure, and rich natural resources. Economic growth over the last few years has been slow, and unemployment in the black community is estimated at more than 25 percent. Real GDP grew by 3.2 percent in 1988, and by only 2.1 percent in 1989. Real growth for 1990 is expected to reach no more than one percent, and may even be negative. This relatively poor economic performance can be explained by several structural factors: apartheid has led to the inefficient use of human resources with under investment in human capital, labor rigidities, and large budgetary outlays for duplicative layers of government and facilities; persistent double-digit inflation; sanctions and the perception that South Africa is a poor long-term risk have limited access to international credit markets; and negative real interest rates, heavy reliance on government business enterprises, and investments in strategic industries and stockpiles have distorted investment decisions and reduced the efficiency of scarce capital resources. While the South African government has taken some steps to reduce these structural problems, there is a long way to go in eliminating the effects of apartheid and meeting the aspirations of the black community. Many restrictions which made it difficult or impossible for black South African citizens to own businesses, obtain skilled jobs, or maintain permanent residence in urban areas have been lifted. Spending on black education, although still greatly below expenditures on white education, has increased substantially in recent years, and black trade unions have been recognized. Still, much remains to be done, and the effects of past policies, and in particular the legacy of the "Bantu" education system will be felt for many years. Over the last decade, quantitative credit controls and administrative control of deposit and lending rates largely disappeared. The South African Reserve Bank now operates more like other western central banks. It influences interest rates and controls liquidity through its rates on funds provided to private sector banks, and to a much smaller degree, through the placement of government paper. The Reserve Bank establishes targets for the growth of the money supply (M3). The target for 1990 is between 11 and 14 percent, which will probably be met. In the last three years, a series of restrictive monetary policy steps - primarily increases in the Central Bank lending rate have been taken in an effort to curb domestic spending on imports and to reduce inflation. Traditionally, South Africa has run a conservative fiscal policy. In the late 1980's, however, revenues lagged behind expenditures, leaving a substantial deficit. The deficit was financed through borrowing which in turn put pressure on private capital markets. The government of President De Klerk has adopted much more restrictive fiscal policies. The 1990/91 budget provides for a deficit of less than three percent of GDP compared to the close to six percent of GDP deficit recorded in 1988/89. Pressure is growing, however, to use fiscal policy to address socio-economic needs such as black education, health care and housing. |