Beran,
The PPP to be blamed for the depreciation of the Dalasi after seven and half
years of mis-guided APRC economic policies that continue to undermine
investor confidence?! What an amazing insinuation!.

What has beneficiaries of loans pre-July 1994 got to do with explaining the
current downward spiral of the Dalasi?

Unbelievable!

No matter what,
The yoke of oppression must be shattered!

BMK



>From: Beran jeng <[log in to unmask]>
>Reply-To: The Gambia and related-issues mailing list
><[log in to unmask]>
>To: [log in to unmask]
>Subject: Re: The Dalasi continues to slide
>Date: Wed, 16 Jan 2002 10:08:05 -0500
>
>Jassey-Conteh:
>
>Thank you for your observation and recommendation regarding the continued
>sliding of the Dalasis.I must however add that even if trade liberalization
>policy is adapted,I believe it already exist,the main problem regarding
>small business or entrepreneurial development is financing.Bank interest
>rates are too high and are unaffordable by small
>businesses/entrepreneurs.Infact,this prompted us to form the National
>association committee of entrepreneurial development(NACED)back in
>1991/92.The intention was to have as members all in the entrepreneurial
>sector including market women as members.The idea was to collect membership
>fees and sell shares to members to generate funds to loan to members at a
>much lower interest rate than the bank.We collected a lot of money but the
>officer entrusted with the funds misused it.
>Apart from the banks high interest rates,another motivating factor was that
>some Europeans who were familiar with the high interest rates at the banks
>allocated funds for private sector development at 7% interest rate compared
>to the 27% that the banks offered.The funds were administered by the
>central
>bank to be given to Gambian entrepreneurs.
>It was later discovered that the only ones who benefited at the time was
>businessmen who were either members of the PPP or their sympathizers.
>
>The problem is not only having the policy in place.
>
>Beran
>
>
>>From: Jassey Conteh <[log in to unmask]>
>>Reply-To: The Gambia and related-issues mailing list
>><[log in to unmask]>
>>To: [log in to unmask]
>>Subject: The Dalasi continues to slide
>>Date: Wed, 16 Jan 2002 20:19:50 +0800
>>
>>Comrade:
>>
>>It is disturbing that The Gambian dalasis
>>cannot maintain its value, relative to the
>>U.S. dollar.  If this trend continues, Gambians
>>will be unable to buy even cheap foreign goods.
>>The Gambian Dalasi stands at D16.93 against the
>>the US Dollar.  The Gambian Dalasi stood at D8.75
>>against the US Dollar in January 1993.
>>
>>My assessment on this voluntary devaluation of
>>The Gambian Dalasi against major international
>>currencies is a testament that our export category
>>is not competitive.  There is too much reliance
>>on foreign goods, and thus with limited foreign
>>currency reserves, the Dalasi will continue to
>>decline.  This voluntary devaluation is a culprit
>>of unfavorable economic policies adopted by our
>>Central Bank.
>>
>>The ministry of trade and industry should make
>>it possible for Gambians to export goods.  There
>>should not be a monopoly for only the selected
>>few to engage in this kind of trade.  The
>>ministry should adopt a liberal trade policy
>>in making it easier for any Gambian to import and
>>export goods.  As more goods reach our soil, the
>>merchants will be forced to lower prices because
>>there will be abundance of goods.  The only
>>negative impact is that our trade
>>gap between import and export will widened.  In
>>the long-run, the consumer will benefit.
>>
>>Another major hurdle is total reliance on the
>>government as a source of employment.  With
>>limited resources of taxation, it is really a
>>struggle on the part of the government to meet
>>payroll obligations.  Gambians with skills should
>>take risks in creating jobs for the overall
>>success of our economic output.
>>
>>Another detriment is the quality of education.
>>The ministry of education should make it a
>>priority in producing graduates that are
>>competitive in trades for the overall success
>>of our GDP.  Since very few graduates are
>>entering college, the obligation of our
>>education technocrats is to reinvent an
>>education system that concentrates in the
>>maximization of human capital.
>>
>>National development cannot take place without
>>the government relaxing its law and order
>>policies.  The government should try to move
>>to the center, and have a more tolerant system
>>of politicking with its constituents.  The
>>opposition should also be willing partners
>>in our national development.  Both the
>>government and the oppostion should engage
>>in a position of trust.  There should not be
>>a dividing line as to our responsibility in
>>making The Gambia a better place for all.
>>
>>Since the Dalasi has voluntarily devalued
>>almost 95%, I recommend that the government
>>takes a more liberal economic policy in allowing   the citizens of The
>>Gambia to freely egage in
>>import and export ventures.  It is detrimental
>>to our economic output and also financially
>>hard on the consumers.  Our country cannot
>>continue to ignore the importance of a healthy
>>economy.
>>
>>The Central Bank of The Gambia should avoid printing
>>too many Dalasis.  Printing of Dalasis will decrease
>>its value.  This is simple supply and demand.  Why
>>print when there is less demand?  Why print and freely
>>circulate the Dalasi in the economy without loaning
>>it to commercial banks at variable rates.  No thinking
>>eonomist would advocate a monetary policy based on
>>printing and dumping.  This is not a sound economic
>>policy.
>>
>>Naphiyo,
>>
>>Comrade ML Jassey-Conteh
>>Greensboro, NC/Kombo East Constituency
>>--
>>
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