Mr. Speaker Sir,
192. I have presented to Honourable Members of this Assembly,
in a comprehensive manner, an economic and financial report of recent
developments in The Gambia, and the strategies this government intends
to follow, both in an international and a national context. In the international
area, I have provided an overview of the cooperation and integration
that The Gambia has sought and achieved over the past year. I have also
provided this Assembly with a comprehensive summary of developments
in the domestic economy, particularly our efforts at poverty reduction,
in the social sector, through increased productivity, and through infrastructural
development. I have completed this overview with developments in the
public enterprise sector, and a summary of the fiscal outturn for 2004.
Mr. Speaker Sir,
193. There are two distinct but interrelated themes that underpin
the economic and financial agenda of the Government - Empowerment and
Stable Growth. Empowerment is something wider and more positive than
poverty alleviation, though it certainly encompasses it. Our primary
task is to raise the income levels of the vast majority of Gambians,
particularly those living in rural areas. But we hope to do this in
a positive and activist manner. It is the desire of this government
to intervene to assist farmers and the rural population in their efforts
at producing better and a wider variety of crops, and other income generating
activities, provide them with the facilities to do so, be they extension
work, irrigation facilities, or good communications, and to involve
them in a participatory dialogue, where the aspirations and views of
the producers are taken into account. In health, we will ensure that
quality services are provided both in preventive as well as in curative
medical care. In education, we will strive for universal primary education
and the rapid empowerment of our female population -- our mothers, our
sisters, and our daughters. We will try to improve the service delivery
of the public enterprises, and the social institutions that are critical
for good governance. Mr. Speaker Sir, our efforts at empowerment will
not be intrusive, and will help, rather than hinder, the productive
sectors of the economy. The government recognizes that the engine of
growth and prosperity is the private sector. But ours will not be a
laissez faire attitude, where the productive sectors are left to themselves.
It is the task of government to encourage, support, and facilitate the
development of the private sector.
Mr. Speaker Sir,
194. The task of this government is also to ensure macroeconomic
stability in the economy to create the necessary conditions for stable
growth. We hope to achieve macro economic stability and growth, through
sound and well-integrated fiscal policies, monetary policies, and exchange
rate policies. As far as fiscal policy is concerned, we will continue
to maintain a tight policy stance that will ensure that there is no
wastage of the public funds that are spent. This would be done by, channeling
discretionary expenditure to those areas with the highest priority.
We will also ensure that non-discretionary expenditures are fully met,
be they salaries, pensions or public debt service obligations. As I
have mentioned earlier, we will provide the necessary institutional
support for this purpose. Moreover, these measures at expenditure control
will be supported by institutional, legal and other measures to ensure
that all our revenue targets are met. Government cannot tolerate a situation
where vital sectors of the economy are being starved for want of resources.
The Government would like to see that every dalasi that is legitimately
due to it is collected fairly, efficiently and quickly. In that way,
the people of The Gambia will know that the government is maximizing
the resources available to all sectors - be it education, health, agriculture,
trade, tourism, general government services, or our security needs.
Mr. Speaker Sir,
195. Sound fiscal policy must be supported by sound and complementary
monetary and exchange rate policies. In regard to monetary policy, we
have to try to eliminate all the excess liquidity in the economy, and
ensure that credit to the private sector is given for productive purposes,
and not for speculative reasons. Credit to the public enterprise sector
will be closely monitored as well. I will work closely with the Central
Bank of the Gambia so that we would combine harmoniously the tasks and
objectives of the Department of State for Finance with that of the Central
Bank. We will endeavour to see that the banking system is serving the
just needs of Gambians, and that the credit requirements for legitimate
needs are fully met. We also have to stabilize, and indeed reduce the
cost of foreign exchange. The Gambia is an open economy with no exchange
restrictions on the inflow and outflow of funds abroad. But, we will
not be passive in ensuring that what is legitimately due to the country
is repatriated back to The Gambia. With this in mind, we have engaged
and, indeed, challenged, the agricultural, tourism and the trade sectors
to maximize our foreign exchange earnings and ensure that such earnings
are repatriated without undue delay. We will do our best to ensure that
our entrepot trade, which is so vital to our well-being, is sustained
and strengthened. By following sound economic and financial policies,
we will also convince the donor community to increase the flow of funds
to strengthen our foreign reserves and the budget. Mr. Speaker, a stable
exchange rate will reduce the cost of servicing our external debt and,
therefore, ease the pressure on the budget. A stable exchange rate will
also help reduce the pressure on the prices of our imported goods and,
thereby, assist all members of our community, particularly the poor
and the most vulnerable Gambians.
Mr. Speaker Sir,
196. It would indeed, be wanting, if, before concluding, I do
not acknowledge the support the international donor community has continued
to provide to The Gambia in our time of need. Although I have made explicit
reference to the specific support that donor agencies have provided
to different sectors or particular projects earlier in my speech, a
glance at the Estimates laid before you, would indicate the nature,
scope, and variety of the aid that the international community has continued
to provide us. Let me begin by acknowledging the support and role that
multilateral donors - the Bretton Woods Institutions, the European Union,
the African Development Bank Group, the Arab Bank for Economic Development
(BADEA), Kuwaiti Fund, Saudi Fund, the Islamic Development Bank, the
Organization of Petroleum Exporting Countries (OPEC), ECOWAS and the
Agencies of the United Nations family will provide us in the year ahead.
Let me also, on behalf of the Government of The Gambia thank the Governments
of France, Germany, Italy, Kuwait, Republic of China, Taiwan, Saudi
Arabia, the United Kingdom, and the United States of America, for their
support. Although, at present, we have not fully met the conditionality
of the Poverty Reduction and Growth Facility (PRGF) with the International
Monetary Fund, we will work tirelessly towards meeting all its conditionalities,
and its early reactivation. We will also work towards reaching the completion
point under the enhanced HIPC Initiative at an early date. While thanking
all donors for their support, I would like to take this opportunity
to remind donors of the heavy debt burden the country is carrying. Despite
our best efforts, the servicing of our debt has placed an onerous burden
on the budget, thereby denying additional resources being provided for
poverty alleviation and critical sector operations. The Government of
the Gambia would wish to take this opportunity to request all donors
to structure their aid so that it is provided primarily in the form
of program grants, repayment in domestic currency where they are used
for HIPC expenditure in the budget, or for recurrent expenditure to
support the social and economic infrastructure already in place.
Mr. Speaker Sir,
197. I would like to conclude by placing before this august
Assembly, and before the Nation at large, a challenge that I need your
answers, and all your support. This government does not want the benefits
of growth to be confined to a favoured and fortunate few. We have to
diversify and let the benefits of rising prosperity be spread as widely
as possible. We have to ensure that the ownership of the productive
sectors of the country are broad based, so that not only someone in
Basse, Jangjanbureh or SOMA, but also in Kuntaur, Kerewan, and Bwiam
can share and benefit in the commerce, industry and trade that are closely
held. How do we tap the savings of this country, be they large or small,
and channel it into productive uses? Sustained growth must be widespread.
We must see that all sections of the community enjoy the prosperity
if we work hard. In other words, Mr. Speaker Sir,