Country Report The Gambia January 2011

Outlook for 2011-12: Policy trends

The broad direction of policy in The Gambia will remain market-orientated, and its implementation will continue to be hindered by inefficiency and corruption. The policy agenda will be underpinned in part by the forthcoming Programme for Accelerated Growth and Employment (PAGE), although the government has yet to confirm when this document will be finalised or the sectors that it will prioritise. The Gambia's extended credit facility with the IMF (2007-11) is due to expire early next year. The IMF has expressed concern about fiscal slippages, but other aspects of performance have been deemed satisfactory and the Fund's engagement with the government is likely to continue.

Political commitment to structural reform is expected to remain weak. The government has said that it will reform customs procedures to restore The Gambia's competitiveness as a route for transit traffic in the region. However, a clear timeline for implementation has yet to be announced, calling into question the government's commitment to the reforms. Measures to entrench the independence of the Central Bank of The Gambia (CBG) and reform parastatals (particularly the National Water and Electricity Corporation, which provides some of the most expensive electricity on the continent) are likely to take even longer to implement. The prospect of public spending reforms is similarly slim; public spending is likely to remain opaque, with substantial funds redirected at the whim of the president, frequently for political patronage. The outlook for agriculture and banking is less bleak; the government is likely to stay committed to raising output in the former and strengthening regulation in the latter.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
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