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Import Substitution - Senegal fights to end dominance of imported rice

21st October 2022

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This Reuters video clip highlights one of the disadvantages of free trade - it exposes economies to global economic shocks - and in this case, food shortages in India, and restrictions on its export have adversely affected the Senegalese economy, where consumers have become dependent upon imported rice, and a drain on foreign exchange reserves.

So what's the solution? The market will ultimately resolve the issue - but the problem is that it will take time, and that the consumers actually prefer imported rice. Even with significant gains in domestic rice production, lowering the need for imported rice may take years.

Import Substitution - Senegal fights to end dominance of imported rice

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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Import Substitution - Senegal fights to end dominance of imported rice

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Import Substitution - Senegal fights to end dominance of imported rice

Graham Watson

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