Updated
May 26, 2003

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Since President Jammeh was re-elected in October 2001 with a narrow majority, the Gambian economy has seen further decline. Jeggan Grey-Johnson examines the present state of the economy

The Gambia, once respected for it's strong and relatively stable currency, the dalasi, has recently been struggling to come to grips with inflation that seems unending. In 2002 fuel prices went up by 66 per cent, causing panic buying and hoarding with a consistent pattern. Memories of the 1985 hardship under the Jawara government, hard pressed by the ERP (Economic Recovery Programme) came to mind. Queues meandered along the streets outside filling stations for days at a time. Other factors related to the shortages of fuel soon began to surface, as transport fares increased early 2003 by 30 per cent in most cases and in some by as much as over 50 per cent, literally overnight.

The Government remained adamant in its insistence that the economy was "not as bad" as Gambians said, and instead chose to place the blame on "certain unpatriotic elements that were bent on embarrassing the President. In late 2002 members of the Gambia Chamber of Commerce met to discuss the challenges that seemed to have eluded even the best of economic gurus in government, but reached no definite conclusions. "We do not know what is wrong in the first instance, so we cannot even begin to start talking about ways in solving this problem," said Dominic Mendv, former Minister of Finance. His analysis of the economic calamity seems to have been sending a message to the President's advisers - "Admit that there is a problem, then we can help in identifying ways in alleviating the challenges." However, there has been political rancor as opposition members have resolved to articulate their stance on The Gambia's economic woes on the government's lack of fiscal discipline. poor policies, and wavering stance in tackling unemployment. which has shot tip over a seven year period to 54 per cent and an ever increasing debt burden.

However, the efforts of the government to zero in on its commitments in the sectors of education, health and agriculture, which experienced a slump in the previous years, were reflected in the Budget that has sent clear signals that things are indeed going to get worse before they can get better. Those big three sectors, education, agriculture and health, take up over a quarter of the development expenditure for 2003

As the Secretary of State for Finance said in December 2002, "We have always prided ourselves on not intervening in the market but we cannot let non-interventionism become an excuse for complacency. Are Gambians complacent Tile President seems to believe so, as the reason for the depreciation of the dalasi seems to hinge, in his mind, on Gambians' attitude to work. "Even if the dalasi was the dollar it would also depreciate." he stated. "We import everything, and refuse to work."

In his end of year message President Jammeh inoculated the public against what to expect for the coming year, by telling Gambians that there is no "free lunch, and that everyone will have to work to reap benefits in whatever form.

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