Abstract

In the decade to 1985/86, following the launching of The Gambia’s first five-year development plan in 1975, public sector involvement in the economy increased substantially through the creation of public enterprises, the liberal provision of government-guaranteed loans at subsidized interest rates, and a large expansion in the size of the Central Government. Although a substantial in-crease in revenue mobilization occurred in this period, it was outpaced by a steep rise in expenditure, particularly with respect to the wage bill and public investment. The large increases in the wage bill reflected a doubling in the size of the civil service. In 1975, there were 4,000 civil servants and 2,000 nonpermanent staff. By 1985 these numbers had risen to 10,700 civil servants and 5,000 nonpermanent staff.

Economic Adjustment in a Small Open Economy
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