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 >>-- >> >><<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>> >> >>To view archives of postings, go to the Gambia-L Web interface >>at: http://maelstrom.stjohns.edu/archives/gambia-l.html >>To contact the List Management, please send an e-mail to: >>[log in to unmask] >> >><<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>> > > >_________________________________________________________________ >Chat with friends online, try MSN Messenger: http://messenger.msn.com > ><<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>> > >To view archives of postings, go to the Gambia-L Web interface >at: http://maelstrom.stjohns.edu/archives/gambia-l.html >To contact the List Management, please send an e-mail to: >[log in to unmask] > ><<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>> _________________________________________________________________ Chat with friends online, try MSN Messenger: http://messenger.msn.com <<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>> To view archives of postings, go to the Gambia-L Web interface at: http://maelstrom.stjohns.edu/archives/gambia-l.html To contact the List Management, please send an e-mail to: [log in to unmask] <<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>>//\\<<//\\>>