Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 08DAKAR424, PRICE HIKES CHALLENGE SENEGAL'S SOCIAL STABILITY

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08DAKAR424.
Reference ID Created Released Classification Origin
08DAKAR424 2008-04-10 11:59 2011-08-24 16:30 UNCLASSIFIED Embassy Dakar
VZCZCXRO8562
RR RUEHMA RUEHPA
DE RUEHDK #0424/01 1011159
ZNR UUUUU ZZH
R 101159Z APR 08
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC 0304
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHRC/USDA WASHDC
RUEHLMC/MCC WASHDC
RUEHZK/ECOWAS COLLECTIVE
UNCLAS SECTION 01 OF 02 DAKAR 000424 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR AF/W, AF/EPS, EB/ESC/IEC 
USDOC FOR 4510/IEP/ANESA/OA/PMICHELINI 
USDA FOR FAS/OCRA/SDIABY, FAS/OCBD/PSIMMONS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EFIN PGOV SG
SUBJECT:  PRICE HIKES CHALLENGE SENEGAL'S SOCIAL STABILITY 
 
REF:  DAKAR 386 
 
DAKAR 00000424  001.2 OF 002 
 
 
1.  SUMMARY:  Senegalese, especially urban dwellers, are somewhat 
bewildered by the recurrence and scope of price hikes in local 
markets, supermarkets, and from specialty vendors.  Price increases 
in gasoline, cooking fuel, vegetable oil, rice, sugar, cement, and 
transportation services have created widespread personal and 
household financial concerns, intense criticism of government 
actions (or lack thereof), and at least one public demonstration 
that turned violent (Reftel).  The Government's announced measures 
to counter popular anger over rising food prices have yet to produce 
relief or allay economic fears.  We anticipate additional public 
demonstrations and unrest, with both opposition parties and unions 
threatening to keep up the pressure in the coming weeks.  END 
SUMMARY. 
 
PRICES SOARING TO RECORD LEVELS 
------------------------------ 
2.  Publicly, Senegalese officials blame high world oil prices and 
transportation costs for the significant increase in prices for 
"daily life" commodities since December 2007.  The inflationary 
impact of rising world food prices is complicating Senegal's efforts 
to control local price increases and several financial observers 
believe that the government's projection of 4 percent inflation in 
2008 may double to 8 percent or higher. 
 
3.  The government has stated it wants to keep prices for broken 
rice (a daily staple) stable, but from December 2007 to March 2008, 
the price has jumped to record levels from CFA 250/kg to CFA 350/kg 
(approximately USD 0.83).  This rice is typically sold in 50kg bags, 
which have increased in price from CFA 12,000 to CFA 15,000 in Dakar 
and up to CFA 17,000 in other locations, such as Ziguinchor and 
Tambacounda. 
 
4.  Because of rising global prices for rice, traders and merchants 
complain that their margin is now only one percent or less, which 
may be encouraging some hoarding of stocks.  Even though the 
government fixes prices for rice and other commodities, it does not 
have any means or power to control and end speculation on price 
hikes.  Traders hope to negotiate a higher sales price with the 
government, as the international price of rice is currently above 
the official price ceiling.  Regardless of the "official" price, it 
is likely that consumers in Senegal will face even higher rice 
prices by late May when current available stocks will be depleted. 
 
 
5.  During the same period, basic milk powder has increased from CFA 
1,500 per kg to CFA 3,000/kg (USD 7.15).  Millet and sorghum prices 
in some markets have doubled since January, suggesting an increase 
in demand for substitutes.  The price of cooking oil rose from CFA 
900 in January 2008 to CFA 1,050 per liter (USD 2.50) in March, an 
increase of 17 percent.  During that period, sugar, which is a 
government-controlled commodity, increased nine percent from CFA 575 
to CFA 625/kilo (USD 1.50).  Wheat flour increased from CFA 750 to 
CFA 850, an increase of 14 percent.  Household soap jumped from CFA 
250 to CFA 325.  Cooking gas, vegetable oil, meat, and fish have 
also witnessed steady price increases. 
 
6.  Despite the price hikes, Senegalese have yet to change their 
consumption patterns, largely due to a lack of culturally acceptable 
locally produced goods to replace imported staples such as rice and 
wheat. 
 
7.  Senegal's booming construction industry has been hit by rising 
cement prices.  Since December 2007 the per ton price has soared 
from CFA 55,000 CFA to CFA 75,000 (USD 180).  This increase is due 
to a strong demand and alleged hoarding and profiteering by 
suppliers.  The range of underlying price increases has created 
upward pressures on prices for a wide range of services and goods, 
including rent, water, and electricity. 
 
SOCIAL TURMOIL 
----------------------- 
8.  In addition to the March 30 protests organized by the Senegalese 
consumers association (ASCOSEN) (Reftel), Union leaders from the 
"General Federation of Workers" (FGTS) have announced plans to stage 
strikes and marches over the price hikes in the coming days. 
Opposition leaders from the "Front Siggil Senegal" criticized the 
government's lack of sound measures to solve the crisis and also 
threatened to organize a march against price hikes later this month. 
 
 
GOS'S MEASURES DO NOT IMPRESS 
----------------------------- 
9.  In a press conference held on March 26, then-Minister of 
 
DAKAR 00000424  002 OF 002 
 
 
Commerce, Abdourahim Agne blamed the price increases on world oil 
price and commodities, and noted that the government has "limited 
tools to address the price hikes since we don't have any control on 
the world oil prices."  Agne also cited government plans to open 
"reference stores" with prices fixed by the government "to protect 
consumers from greedy vendors."  The government has already 
temporarily suspended the country's 10 pct surtaxes on rice, sugar, 
oil, and wheat imports to lower tax pressures on importers and 
encourage traders to lower price on commodities. [Note:  Finance 
Ministry Officials fear the suspension of surtaxes could result in a 
serious reduction if import revenues, and are reportedly opposing 
the idea of suspending the country's 18 percent VAT on these items 
given the current budget deficit.  End note.]  GOS officials have 
also been highlighting President Wade's much-publicized goal of 
making Senegal rice self-sufficient by 2015. 
 
10.  On March 27, the Wade administration promised CFA 10 billion 
(USD 24 million) to help rural populations purchase food, 
specifically rice.  Opposition leaders quickly criticized the 
government's measures as insufficient, noting that they will not 
decrease the price of commodities or the suffering of rural 
populations.  They point out that the CFA 10 billion in assistance 
would offer only 3.7 kg per person for the 7.7 million people living 
in the rural areas. 
 
COMMENT 
------- 
11.  The GOS is finding itself squeezed from many sides with lower 
than average harvests and concerns about food scarcity exacerbating 
the problem of rising prices.  The government's ability to respond 
is limited by serious budget constraints, making the option of 
significant reductions in import duties or VAT for basic items 
problematic.  When asked about their living conditions, many 
Senegalese respond, "We're hungry, hungry and struggling for 
survival in a Senegalese way," which historically has meant with 
patience and peaceful forbearance.  However, even though they 
understand that the higher cost of living is not unique to Senegal, 
the political opposition, consumer groups, and perhaps even 
communities will likely continue to organize protests, partly in 
reaction to President Wade's recent budget commitments for 
monumental infrastructure programs and high-profile gatherings. 
 
SMITH