The article was culled from Burning Issues (FOROYAA) Publication **************************** 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. ---------------------------------------------------------------------------- To unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web interface at: http://maelstrom.stjohns.edu/archives/gambia-l.html You may also send subscription requests to [log in to unmask] if you have problems accessing the web interface and remember to write your full name and e-mail address. ----------------------------------------------------------------------------