The article was culled from Burning Issues (FOROYAA) Publication

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The Economy, The Currency, The Increase Of Fuel Prices And Fares And The
Drivers

Gambia has become indebted that it has been included among the Highly
Indebted Poor Countries so that it could benefit from debt relief. According
to the SoS for Finance and Economic Affairs, the debt of the country rose
from $390 million dollars in 1992 to $566 million dollars in 2000.
The SoS indicated that over 30% of the national budget is being spent on
debt servicing. This led to efforts to get debt relief. Gambia is now part
of the Highly Indebted Poor Countries programme which entitles her to some
debt relief.

This has not impacted on the reduction of the cost of living of the people,
on the contrary, fuel prices are increasing to unexpected proportions.
The pump prices for fuel were increased in the 2000 budget. Petrol  prices
rose from D7.75 to D8.95 per litre; gas oil rose from D5.80 to D6.25 per
lire; kerosine rose from D2.30 to D4.25 per litre. This was due to the
duties and sale tax  imposed on the fuel.

On the 9th March 2001, The SoS for Natural resources who is overseeing the
Department of State for Finance and Economic Affairs issued the following
press release:
''The Department of State for Finance and Economic Affairs wishes to inform
the general public that the prices of petrol, diesel and kerosine are
increased as follows:
Petrol is raised from D8.95 to D9.75 per litre, Diesel increased from D6.75
to D7.75 per litre and Kerosine from D4.25 to D4.90
The new prices will be effective on the 12th March 2001.
These increase are as a result of the high oil prices experienced throughout
the year 2000 which is still discernable in the current year. In addition,
the change will also avert the substantial government revenue loss
associated with this upward trend of oil prices.

The fuel price increase gave rise to automatic reaction by drivers. FOROYAA
is informed that in Soma many passengers were stranded at the garage on 13th
March 2001 because of increase in fares. The drivers on the Brikama High Way
maintained fares at D5. On 12th March 2001, drivers at Westfield Clinic
refused to take passengers to Banjul on receiving information that the
police officers at Denton Bridge were intercepting vehicles and pressurising
drivers not to charge D4 from Serrekunda to Banjul because of the increase
in fuel prices. This led to large crowds gathering near the West field
Clinic. Many people began to spread the rumour that the drivers were on
strike. Traffic was interrupted and negotiation started between the
Assistant superintendent of Police known as Kumba Jatta and the drivers.
According to the drivers interviewed they have no choice but to accept to
maintain the previous fare of D3 even though common sense should dictate
that there should be price increases. An uneasy truce has settled over
prices but every where drivers and passengers alike are complaining of the
economic situation. The drivers are complaining of  lack of strong union to
fight for their interest. They complained about the numerous one way streets
which exclude traffic for taxi drivers, arrest and fines for stopping to
drop passengers in public places without proper packing facilities and with
inappropriate (NO PARKING) signs, the diversion of taxi drivers to the worst
of roads. They complained of the speed with which cases are disposed of in
courts without time for proper counsel.

FOROYAA's analysis.
The passengers and drivers should not blame each other. The problem is the
Gambian Economy  lacks an expanding productive base. In his budget speech
last year, the SoS for Finance and Economic Affairs indicated that domestic
exports were valued at D239 million while total imports were valued at D2.6
billion or 2600 million dalasis. The trade deficit for 1999 was therefore
D2.4 billion or D2400 million. This shows a low foreign exchange earning
capacity and a huge foreign exchange drain. Needless to say, the huge debt
burden requires the  flight of  foreign exchange to sustain it. The huge
allowances, salaries and privileges of Cabinet members creates a larger
budget and more taxation. For example, the president is entitled to D26, 000
a month, the vice president D16, 000, the Secretaries of State D13, 000 with
two cars and free petrol. Such people cannot feel the pinch of fuel
increases.

It is therefore necessary for the Gambian people to realise that politics
should not be based on sentiments. It should be based on programmes.
It is the responsibility of the executive to formulate policies to make
development possible. All governments must accept responsibility for any
hardship among the people. The people must therefore take all personalities
seeking political office to task. They should ask them how they intend to
change the economy to  eradicate the poverty of the people. To mountain or
change governments while people continue to languish in poverty is
meaningless. Change is necessary. It must also be for the better.

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