http://siteresources.worldbank.org/INTPRS1/Resources/Gambia_APR2-JSAN(June5-2006).pdf


INTERNATIONAL MONETARY FUND

AND

INTERNATIONAL DEVELOPMENT ASSOCIATION

THE GAMBIA
*

JOINT STAFF ADVISORY NOTE ON THE POVERTY REDUCTION STRATEGY PAPER

SECOND ANNUAL PROGRESS REPORT
*

Prepared by the Staffs of the International Monetary Fund

and the International Development Association

Approved by Michael Nowak and Carlo Cottarelli (IMF)

and Gobind Nankani and Danny Leipziger (IDA)

June 5, 2006
*

I. OVERVIEW
*





7. *The APR alludes to but does not discuss the substance of governance

problems at the root of monetary policy lapses at the CBG. *These problems

included inadequate internal controls, questionable audit practices,
and*government
*

*interference in CBG operations.* Tackling these problems is vital for
sustaining the

prudent macroeconomic policies that began to be implemented from late-2003.

Recommendations by new external auditors who conducted re-audits of the
CBG’s

accounts for 2001 and 2002 and special audits of foreign exchange
transactions

during 2000-03 provided the basis for an Action Plan to tighten internal
controls that

began to be implemented in 2005. The national assembly also approved a new
central

bank law in 2005 that aimed to provide a greater degree of independence to
the CBG.

8. *The staffs recommend that the highest priority be placed on updating the

public accounts. *This is a priority in the PRSP, and the APR indicates that
some

limited progress has been made. Greater resources allocated to the task and

commitment to a clear timeline would facilitate clearing the large backlog
in the

government accounts. The ongoing implementation of the Integrated Financial

Management Information System (IFMIS) and establishment of the Revenue

Authority will be critical to improving public financial management. Such
reforms

will be sustainable only if their recurrent costs are adequately funded.

9. *The staffs recommend that a comprehensive assessment of civil service

capacity be conducted. *Such an assessment should provide a basis for
preparing a

civil service reform program. Although a priority in the PRSP, the APR
indicates that

little progress has been made on civil service reform. A preliminary study
on civil

service attrition rates has been conducted, but it needs to be further
expanded. Strong

political leadership will be essential given the importance of civil service
reform for

the performance of the public sector.

10. *Declining share of poverty reducing expenditures critically undermines

the PRSP process. *The APR appropriately notes the declining share, and
identifies

the large debt service as the main cause. However, the multidonor public
expenditure

reviews indicate a decline in expenditures on education and health as a
share of total

expenditures even when debt services are excluded. The authorities should
increase

the share of budget allocation for poverty reducing expenditures, and
accelerate the

updating of the public accounts in order to verify that increased
allocations result in

increased actual outlays. Continued investments in the social sectors will
not be

sustainable unless matching recurrent expenditures are provided.

-- 
Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the
difference of your languages and colours. Verily, in that are indeed signs
for men of sound knowledge." Qu'ran

www.suntoumana.blogspot.com


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