This should be food for thought if one is analysing the issues from an
intelligent and competent point of view, as opposed to mere propaganda
rhetoric.
The problem with the APRC government is that it is obvious they do things
without much intelligence and for the propaganda effect, and it is sad to see
supposedly intelligent people follw suit, at the detriment of our country and
our people.
Jabou Joh
In a message dated 10/12/2002 9:01:31 AM , [log in to unmask]
writes:
>
> Gambia's Debt At D10.3 Billion Halifa Sallah Explains Serious Economic
> Crisis
>
> The Independent
> NEWS
> October 11, 2002
> Posted to the web October 11, 2002
> Banjul
>
> The Gambia's burden of debt, which was quoted in the neighbourhood of
> several
> millions last year, has rocketed to D10.3 billion, according to Halifa
> Sallah,
> the minority leader in the National Assembly.
>
> Honourable Sallah told The Independent in a recent interview that the
> country's
> increasing debt burden has this year alone registered another inflation of
> D482
> million, which is approximately one third of the national budget. This he
> said
> is higher than the total budgetary estimate for Education, Health, Works
> and
> Communication, Agriculture etc. He added that out of D10.3 billion, the
> country's external debt component stands at D8.3 billion whilst the
> internal
> debt component stands at D2.02 billion.
>
> According to Honorable Sallah a combination of factors is responsible for
> the
> country's increasing debt burden among which is the continuous reliance by
> the
> APRC government on loans and grants for its development budget used for
> providing roads and other infrastructures. He added that such loans and
> grants
> have been increasing without The Gambia producing enough earning to buy
> things
> needed for road construction and other infrastructural development.
>
> Honorable Sallah further added that the production base of the economy has
> not
> been well sustained over the past couple of years to support day-to-day
> services from government departments as well as investing in development
> projects such as infrastructure. He added that as the country is constantly
> importing more and exporting less when it is not investing in the
> productive
> base of the economy to earn enough in order to meet its development target,
> the
> productive base of the economy is constricted and cannot support the
> infrastructure as well as the day to day needs of the population.
>
> He posited that because it was entirely dependent on taxes, the government
> should ensure that any loan taken is invested in a strategically and well-
> calculated manner such as opening up production in order to acquire more
> wealth. He added that even if the country is going to depend largely on
> taxes
> it must also try to depend more on a growing economy. According to him, if
> the
> economic rate of the country fails to grow then the tax base becomes
> resupient
> whilst the demand for the repayment of loans increase thereby running the
> country aground and into a budgetary crisis in which 60-70 percent of her
> total
> earnings would be spent on loan repayment. 'If that is the case then what
> would
> the country have to continue servicing schools, hospitals as well as
> maintaining the economy?' he inquired.
>
> 'This means that the public sector would run into serious problems of
> financing
> whilst there would be constant competition between the foreign exchange to
> repay loans and foreign exchange to import products such as fuel, goods etc
> which may result in a serious economic crisis' he said.
>
> On the current economic situation of the country Honorable Sallah stated
> that
> the economy is in a state of crisis because the country is importing in
> excess
> of its capacity to pay what amounts to D2 billion. This he said is a trade
> deficit, signifying that The Gambia is a consumer country of imported goods
> rather than an exporting economy. He added that as long as the country
> continues to export less and import more, the value of the local currency
> shall
> always be at risk. He observed that what could have supported the ailing
> Dalasi
> was by services through tourism. He said it was unfortunate that however
> the
> foreign exchange being realised does not remain in the country, because it
> is
> not linked to the productive base of the economy. Ipso facto, he said the
> country would always have ever-greater demand for foreign exchange to bring
> in
> goods, pay loans etc than for the local Dalasi, a situation, which would
> put it
> into deeper crisis.
>
> Honourable Sallah added that we must avoid blaming foreigners in the throes
> of
> our economic crisis, as international economy recognises no distinction
> between
> a foreign or Gambian economy. He added that the blame cannot be put on
> foreigners when the government is going everywhere calling for foreign
> investors, which the groundswell of Africa's economy depends on. What must
> be
> understood he said, is that the government must put in place a modicum of
> fundamental economic tools and devise modalities on how to regulate it
> without
> which the people will exploit to gain profit. He added that the regime
> should
> also ensure greater access to the resource base and must also be encouraged
> to
> enable greater access to resources so as to meet the day-to-day needs of
> the
> population.
>
> The idea of having healthy deposits to build infrastructure should also be
> espoused. He added that should this obtain, future loans for the state
> could be
> applied to expand the productive base of the national economy as well as
> generate enough income to augment peoples' pay packages.
>
> *******************************************************
> http://home3.inet.tele.dk/mcamara
> http://www.gambia.dk
>
> **"Start by doing what's necessary, then what's
> possible and suddenly you are doing the impossible"***
>
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