Business Intelligence

Globalization And Poverty In Senegal: A Worst Case Scenario?

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Executive Summary

There is no consensus about how globalization - trade and foreign investments - affects poverty reduction. Using household survey data, this paper contributes to the empirical literature on globalization and poverty by analyzing the household-level implications of increased foreign investments and trade in the horticulture sector in Senegal. In many aspects this represents what many would consider a worst-case scenario. Stringent rich country standards are imposed on exports and the supply chain is controlled by a single multinational company with extreme levels of supply base consolidation, full vertical integration and complete exclusion of smallholder suppliers.

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