Front Matter
Author:
Mr. Eric Verreydt
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Mr. Michael T. Hadjimichael
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Mr. Thomas Rumbaugh
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Abstract

The Gambia, one of the least developed countries in Africa, has been pursuing corrective economic policies since 1985, aimed at restroing financial stability and laying the basis for strong and sustainable economic growth. Supported by IMF policy advice and financing. The Gambia's economic performance has improved considerably since 1985. This study discusses Gambian adjustment policies and their benefits.

© 1992 International Monetary Fund

Cataloging-in-Publication Data

Hadjimichael, Michael T.

The Gambia : economic adjustment in a small open economy / Michael T. Hadjimichael, Thomas Rumbaugh and Eric Verreydt with Philippe Beaugrand and Christopher Chirwa. — Washington, DC : International Monetary Fund, 1992.

p. cm. — (Occasional paper, 0251-6365 ; 100)

Includes bibliographical references.

ISBN 1-55775-230-3

1. Structural adjustment (Economic policy) — Gambia. I. Rumbaugh, Thomas. II. Verreydt, Eric. III. Title. IV. Series : Occasional paper (International Monetary Fund) ; no. 100.

HC1070 .H23 1992

Price: US$15.00 (US$12.00 to full-time faculty members and students at universities and colleges)

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Contents

  • Preface

  • I. Introduction

  • II. Overview of Recent Economic Performance

    • Adjustment

    • Policies Policy Implementation

    • Developments Since 1985/86

  • III. Growth, Saving, and Investment

    • Developments in Output

    • Developments in Saving and Investment

  • IV. External Adjustment

    • Exchange Reform and Exchange Rate Policy

    • External Trade and Tariff Reform

    • Diversification of Exports

  • V. Fiscal Adjustment

    • Tax Policy

    • Expenditure Policy

    • Developments in the Budget Balance

  • VI. Monetary Policy and Financial Sector Reform

    • Monetary Policy Objectives and Instruments

    • Monetary Developments Since 1985/86

    • Monetary Policy, Exchange Rate Policy, and Inflation

    • Financial Sector Reform

  • VII. Public Enterprise Reform

  • VIII. Social Impact of Adjustment

  • IX. Concluding Remarks

  • References

  • Tables

  • Section

  • II

    • 1. External Assistance

    • 2. Selected Economic and Financial Indicators

    • 3. Balance of Payments

  • III.

    • 4. Gross Domestic Product by Kind of Economic Activity

    • 5. National Income, Savings, and Investment

  • IV.

    • 6. Foreign Exchange Earnings

  • V.

    • 7. Central Government Operations

    • 8. Structure of Government Revenue

    • 9. Structure of Government Expenditure

    • 10. Functional Classification of Current Expenditure by Key Ministries

    • 11. Alternative Measures of the Budget Balance

  • VI.

    • 12. Monetary Survey

  • Charts

  • Section

  • II.

    • 1. Exchange Rate Developments

    • 2. Developments in Output and Prices

    • 3. External Developments

  • III.

    • 4. Sectoral Composition of Real GDP

  • IV.

    • 5. Composition of Foreign Exchange Earnings, 1982/83–1991/92

  • V.

    • 6. Fiscal Developments, 1982/83–1991/92

    • 7. Structure of Revenue and Expenditure, 1982/83–1991/92

  • VI.

    • 8. Monetary Developments, 1984/85–1991/92

    • 9. Developments in Broad Money, the Exchange Rate, and Prices

The following symbols have been used throughout this paper:

  • … to indicate that data are not available;

  • — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;

  • – between years or months (e.g., 1991–92 or January-June) to indicate the years or months covered, including the beginning and ending years or months;

  • /; between years (e.g., 1991/92) to indicate a crop or fiscal (financial) year.

“Billion” means a thousand million.

Minor discrepancies between constituent figures and totals are due to rounding.

The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.

Preface

This paper is based on the staff report and the background paper prepared in connection with the consultations between the Fund and The Gambia in 1992 and includes information available through May 1992. The authors are indebted to Anupam Basu, Christian Brachet, Evangelos Calamitsis, Jean Clément, Christian Francois, and Susan Schadler for their valuable comments and suggestions. They also would like to thank Janet Bungay for editorial advice, Yvette Conell and Abdul Mahar for secretarial assistance, and Juanita Roushdy of the External Relations Department for editing and coordinating the paper for publication. The authors bear sole responsibility for any factual errors.

The opinions expressed in the paper are those of the authors and should not be construed as those of the Government of The Gambia, Executive Directors of the IMF, or other members of the IMF staff.

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