Gambia-L:

 

Here is a copy of the Hard Version of The Gambia's 2001 Budget Speech. I was sent a hard copy of the budget which I was able to scan and forward to the L. I have to thank Momodou Camara who taught me, some time ago, the technology of scanning and forwarding hard copies via the Internet. Hamjatta, Kebba Dampha and others, you may want to comment on the contents of the Budget Speech.

 

Ebrima Ceesay

Birmingham, UK

 

______________________________________________________________________

 

 

Secretary of State For Finance and Economic Affairs

Hon. Famara L. Jatta
 

BUDGET SPEECH 2001

GOOD GOVERNANCE FOR ACCELERATED GROWTH AND REINFORCED POVERTY REDUCTION

 

 

Mr. Speaker,

 

1. I beg to move that “The Bill entitled an Act to provide for the services of The Gambia for the period 1^st January, 2001 to 31^st December, 2001 (both dates inclusive)” be read a second time.

 

I.    INTRODUCTION

Mr. Speaker,

2.      Drawing from the prevalence of acute poverty across a broader section of our populace and the dire need to alleviate it, the theme of the year 2001 budget speech continues to center on Poverty Reduction with particular emphasis on the importance of good governance for accelerated growth and reinforced poverty reduction.

 

3.      Poverty, it is said, is like an elephant – easier recognised than described. Thus, we may not have to dwell on its multidimensional character before we consolidate our efforts towards its alleviation.

 

4.      From 60% overall, in the ILO study of 1989 the proportion of Gambians subsisting below the poverty line has increased to 69% in 1998 (1998 National Household Poverty Survey). This reveals the disturbing trend of increasing poverty in our midst in spite of efforts to alleviate this phenomenon.

 

5.      Over the past year much have been devoted to this fight and one of the fruits borne out of this, is the improvement in the UNDP Human Development ranking which improved from 163 out of 174 countries in 1999 to 161 out of 173 in 2000. This notwithstanding, the poverty situation still leaves much to be desired. Current poverty reduction efforts, solicits the active participation of the poor in a renewed partnership in the fight against poverty.

 

6.      Hence, the continuing strive to: Educate and maintain a healthy population; Mainstream poverty and gender issues into broader national macroeconomic policy and planning; Liberalize the financial system; Provide micro-credit at the grass root; Diversify the productive base of the economy; Establish skill centers; and Build capacity in the public service.

 

7.      The ongoing Mainstreaming Poverty and Gender Project (MPGP), the Social Development Fund (SDF) project, Economic Management and Capacity Building Project (EMCBP), the interim Poverty Reduction Strategy Paper (PRSP) and a lot of other efforts in the private and NGO community are all strong dedication, of the Government together with our development partners, NGOs and the private sector, to this cause. The PRSP is in the development stage and will constitute the short-term implementation tool for the Vision document.

 

8.      However, the attainment of sustained poverty reduction requires the existence of a good governance environment, which is found to be a prerequisite for successful participatory poverty alleviation programme. Good governance facilitates poverty reduction through promoting opportunities, facilitating empowerment, and enhancing security with the cumulative effect of increasing confidence in The Gambian economy.

 

9.      Mr. Speaker, facilitating empowerment involves the reform of the public administrative system (which is firmly entrenched in our Local Government Reform and Decentralization Program). This will make the delivery of public goods more responsive, accountable and efficient through the active and direct participation of the citizenry. It would also involve the strengthening of an independent legal system as well as the removal of all barriers that borders on gender, ethnicity, regional or social status.

 

II.        THE WORLD ECONOMY

Mr. Speaker,

10.  The world economy continued to grow, with global output registering at 4.7% growth in 2000.  This global economic expansion occurred in almost all the regions of the world led by the United States (US) economy despite the recent slowdown in growth from 5.6% in the second quarter to 2.4% in the third. The impact of the continued depreciation of the Euro against the US dollar is yet to be determined as the upswing in Europe and the emerging markets of Latin America and the Middle East continue to record progress. Economic activity in Africa remained buoyant and the countries in transition recorded a second year of solid growth. 

 

11.  However, natural disasters and adverse fluctuations in commodity prices as well as civil strife and the HIV/AIDS epidemic continue to pose a serious human and economic problem, particularly in Sub-Saharan Africa and parts of Asia. Despite the robust nature of the global economy, many countries continue to be plagued with the problem of poverty. About 1.2 billion people around the world live on less than US $1 per day.

 

12.  At an average of about 3.5%, economic growth, many Middle, Eastern and African countries continue to be spurred by external factors, including changes in commodity prices and expansion in export markets.  The global oil prices hikes, as well as recent increase in OPEC oil output quotas, have boosted economic activity in most of the oil-producing countries. Many of the non-oil-producing countries in the region, however, have faced substantial terms-of-trade losses as export prices of non-fuel commodities and other primary goods remain generally depressed.

 

13.  Mr. Speaker, by and large, limited access to rich industrialised markets is one of the main hindrances to African development. Agricultural subsidies among industrialised countries amount to $300 billion a year, equal to Africa’s entire gross domestic product. Moreover, high tariffs, anti-dumping regulations and technical barriers to trade in industrialised countries cost Sub-Saharan African countries $20 billion annually in lost exports - $6 billion more than they receive in aid.

 

14.  The reversal of this trend perhaps lies in globalisation, which is happening very fast. Globalisation offers enormous opportunities and Africa can no longer afford to keep a wall around itself. If we do not take from globalisation what we can, it will certainly take from us, as demonstrated in the brain drain phenomenon, and the exodus of our youthful population in search of better livelihood.

 

15.  In globalisation are larger markets, and of strategic importance especially to developing economies, is investment capital and Foreign Direct Investment (FDI) to be specific. Our failure to consolidate our position in international trade has cost us a staggering annual income loss of $68 billion or 21% of regional GDP between 1970 and 1997. Reviving trade is therefore integral to Africa’s economic turnaround. It is pertinent therefore, that we improve on the quality of our infrastructure and other related services to meet international standards and create a political environment that attracts rather than scare off investors.

 

16.  It must be stated here that globalisation cannot result from unilateral changes, rather changes should at least be bilateral and as long as technical barriers to industrial markets exist the full benefits of globalisation will not be enjoyed. The recent exclusion of The Gambia from the US Investment Opportunities and Growth Act is a set back, although we can still benefits from the trade which would be generated in the sub-region.

 

17. Overall, the world economy is poised for greater performance, over and above the 4.25% projected for 2000.

 

III.       THE DOMESTIC ECONOMY

i.          Real Sector

Mr. Speaker, Sir,

18.  For the year ending December 2000, real GDP is estimated to grow by 3.44%, a fall from the 5.6% recorded in 1999. Growth is registered in almost all the sectors, with the exception of Trade and Tourism, which are estimated to decline by 3.57% and 6.39% respectively as a result of difficulties experienced in the re-export trade sector, the cessation of the activities of major tour operators in the tourism sector and the problems encountered in the marketing of groundnuts.

 

19. All the sub-sectors under agriculture once again recorded increases in output. The “other crops” category (comprising of cereals, vegetables and fruits) is forecasted to grow by 12.58% and groundnut by 3.71%. Livestock, forestry and fisheries are also estimated to grow by 3%, 4% and 4.84% respectively. Overall the sector is forecasted to grow by 3.8% as against the figure of 8.8% projected for 1999.

 

20. Manufacturing is expected to grow marginally by 1.66%, as a result of a growth rate of 2% in small-scale undertakings and 1.5% growth in large-scale activities. The growth in small-scale manufacturing is attributed to growth in construction-related undertakings, whilst large-scale manufacturing is accounted for by growth in some of the main activities such as soap, plastic, soft drinks and foam production.

 

21. The contribution of electricity and water to GDP will grow by 6.3% by the turn of the year. Building and construction industry is also forecasted to grow by 3.57% due to expansion in private and public construction activities.

 

22. The trade industry is expected to shrink from a total contribution of D74.2 million to D71.6 million, a fall of 3.57%. Groundnut trade has deteriorated and reached the worst level for over a decade by registering a decline of 20 percent. Other trade activities declined only marginally by 3.5%

 

23. The communication industry is expected to grow significantly by 8%. This is attributed to the expansion in telecommunication, broadcasting and postal services. Transportation will also record growth of 4% resulting mainly from increase in national road transportation fleet, both private and public ones.

 

24. Real Estate and Business Services is expected to register a marginal growth of 1% during the period under review whilst growth in the other services industry is estimated at 1.71%.

 

ii.         Fiscal  Developments

Mr. Speaker,

25.  Fiscal policy performance continues to be satisfactory as a result of combined concerted expenditure control and exhaustive revenue enhancement efforts. Domestic taxes have shown a decline of 5.5% as a result of a 10% under performance of domestic sales tax.  International taxes would amount to D621.5 million as at end December 2000, which is 25.7% above the level in the corresponding period in 1999.  Total domestic revenue excluding grants increased by 22% from D878.7 million in 1999 to D1073.7 million for 2000.

 

26.  Expenditure figures registered a 12.9% increase from D1118.2 million in 1999 to      D1262.4 million in 2000, with current and capital expenditures showing increases of 8.8% and 28.5% respectively. This shows a shift in emphasis towards the productive sector. Fiscal deficit (excluding grants) as a percentage of GDP stood at 3.5% compared to 4.8% in 1999; including grant, the fiscal deficit is 1.1% in 2000, which is an improvement from last year’s figure of 3.5%.

 

 

iii.        Monetary Developments

27.  The thrust of our monetary policy still remains the maintenance of price and exchange rate stability, which is a sine-qua-non for sustainable economic growth and improved external competitiveness. In line with keeping inflation low, at below 5%, the central bank maintains a tight monetary stance – mopping up excess liquidity and keeping a keen eye on the growth of the reserve.

 

28.    By the end of October 2000 broad money went up by 30.6% to D1.82billion from D1.47 billion in 1999.  This expansion stemmed from the depreciation of the Dalasi in the inter-bank market on the external front, and the growth in private sector credit (from D616.0 million in1999 to D661.2 million) on the domestic front. This reflects commercial banks’ financing of the marketing of groundnut, an increased lending to the distributive trade plus the building and construction sub-sectors.

 

29.  During the period under review, reserve money increased by D62.3 million or 10.3% mainly on account of the rise in both currency in circulation and reserves of commercial banks. While currency issued rose by 8.2%, commercial bank deposits went up by 15%. As at the end of October 2000, commercial banks remain generally well above their statutory liquid assets requirements. However, on an individual bank basis, some banks continued to experience difficulties in meeting their requirements.

 

30.   Mr. Speaker, the government’s debt position vis-à-vis the banking system declined significantly by 53.3% from a deficit of D38.4 million in 1999 to D17.9 million at the end of October 2000 mainly as a result of the improvement in fiscal policy management.

 

31.  The net foreign assets of the banking system recorded an increase of 20% from D996.5 million at the end of December 1999 to D1195.98 million in 2000. Following approval and disbursement in July 2000 of the second loan of SDR 3.4 million under the PRGF program the net foreign assets of the Central Bank rose to D1235.5 million at the end of October 2000.

 

a.         Inflation

32.  The rate of inflation as measured by the weighted current consumer price index (CPI) is 0.9% between January and December 2000 compared to 3.8% in 1999. The “Food, Drink and Tobacco” component rose by 0.2% accounting for a 15.1% of rise in the overall index while the “Non-food” component registered a 2% rise, accounting for 84.9% of the overall rise in the index.

 

iv.  External Sector

Mr. Speaker, Sir,

33.  The performance of the external sector has been affected by adverse developments in the marketing of groundnut. The preliminary estimates for the overall balance of payments for the year 2000 is a surplus of D88.8 million, a significant improvement compared to D53.7 million in 1999.  However the current account balance excluding official transfers is expected to deteriorate to 11.1 per cent of GDP compared with 10.5% in the previous year mainly as a result of the huge trade deficit. The capital account, on the other hand, is estimated to deteriorate by nearly 9.0% to D200.2 million due to the significant increase in estimated government official loans, coupled with a decline in the estimated net foreign direct investment.

 

34.  Accordingly, accumulation of foreign exchange reserves are estimated at 5.9 months of import cover by the end of 2000, compared with 5.7 months in the previous year. This is taking into account the expected disbursement from the International Monetary Fund under the Poverty Reduction and Growth Facility (PRGF) of SDR 6.9 million for Balance of Payments support including the EU grant for structural adjustment support. As at September 2000 gross official reserves stood at D1.4 billion equivalent to SDR 85 million representing a 15% increment over 1999. This increase is mainly achieved as a result of external project inflows and Central Bank net purchases from the inter-bank market.

 

a.         Exchange Rates

35.  The foreign exchange market was quite vibrant during the first ten months of this year. The volume of transaction as measured by aggregate purchases and sales of foreign currency in the inter-bank market rose by a staggering 42% from D4.7 billion for the first half of 1999 to D6.7 billion the same period this year. This increase may be attributed partly to the depreciation of the dalasi in the inter-bank market and partly to some private sector inflows.

 

36. The Dalasi was persistently under pressure against most of the major currencies as the US Dollar and pound sterling strengthen against the Euro, and also as demand for foreign exchange exceeded supply. The Dalasi recorded an overall depreciation of 5.4% in nominal terms against the composite basket of currencies during the ten months under review.  From the end of December 1999 to October 2000, the Dalasi fell against the US dollar by 19%, and 15% against the Pound Sterling in the inter-bank market.

 

v.   Financial Sector Development

Mr. Speaker,

37.  During the year, the Central Bank continued its regulatory and supervisory role over the financial institutions under its domain, namely the 6 Commercial Banks, 10 Insurance Companies, 5 brokerage firms and 51 Micro Finance Institutions (MFIs).   As part of the on going review of laws and other supervisory instruments, the Financial Institutions Bill 2000 and the Insurance Bill 2000 are now under final revision and these bills are expected to be laid before the National Assembly in the coming year.

 

38.   In a bid to broaden access to banking facilities countrywide, a number of banks have expanded their Agency Networks to new localities in the country, which will open the doors to the public and foster outreach to the rural areas in the near future. The government continues to encourage all commercial banks to participate in development projects as demonstrated by their participation in the marketing of agricultural produce during the last trading season.   

 

39.  Commercial bank’s non-performing loans fell from 17.05% of gross loans in December 1999, to 13.74% in June 2000. The issue, however, remains very relevant and commercial banks are strictly required to meet provisioning levels. Already, they have taken measures towards the vigorous pursuit of defaulting customers. This would require streamlining the bankruptcy and liquidity process and related commercial legislation.

 

40.  Out of the 51 Micro-Finance Institutions (MFIs) being supervised by the Central Bank, one is a licensed Finance Company, and 9 are registered Village Savings and Credit Associations (VISACAs).   Registration with the Central Bank is crucial for all MFIs, as this enables such institutions to be officially recognized by donor agencies and thereby facilitate their access to financial support. The Government values MFIs greatly, as they are considered as “poverty alleviation” vehicles at the grass roots level.

 

vi.  The National Debt

41. The Gambia’s total debt stock which stood at US$390 million in 1992 has by 1999 reached US$566 million representing a 45% increase in nominal value terms. Of this, 75% is external and 25% domestic debt this translates into US$425 million and US$141 million respectively. The external debt burden is expected to reach $439.5 in nominal value terms by year ending 2000. It is worth mentioning that $2 million from the sale of Atlantic Hotel has been used to run down the domestic debt burden.

 

Mr. Speaker,

42.  The burden of debt is no longer sustainable and is seriously stifling our poverty reduction efforts as we devote over 30% of our budget to debt servicing. The domestic debt burden which, until recently has been manageable, is now of great concern as it negatively impact on the interest rate and subsequently crowd-out private sector investment in the economy. Concerted efforts are underway to bring down the level.

 

 

IV.       Co-operation and Integration

i.          Bilateral Relations

Mr. Speaker,

 

43.  In a world that is getting smaller and smaller, consolidating ties with neighbors and friendly nations over the globe underlies our foreign policy. This is in consonance with our primary objective of fostering international peace, friendship and understanding.

 

44.  In this respect, technical and economic co-operation agreements have been concluded with the Governments of the Republic of France, the State of Qatar and the Republic of Tunisia. We have also concluded political and economic cooperation agreement with the Islamic Republic of Iran. At the same time, we remain appreciative to the Federal Republic of Nigeria, the United Kingdom, Algeria, the Republic of China, Cuba, the Great Socialist Libyan Arab Jamahiriya, Japan, the Federal Republic of Germany, the Kingdom of the Netherlands, Italy, the Kingdom of Belgium, the Arab Republic of Egypt for the significant assistance they have rendered towards our development effort.

 

45.  During the course of the year, new diplomatic missions were established in Morocco and Qatar while facilities in Libya were upgraded to a full-fledged diplomatic mission. As we advance into the new millennium we would strife to strengthen all existing bilateral ties, as well as reactivate others, as with the Islamic Republic of Mauritania and Namibia.

 

ii.   Sub-Regional Co-operation and Integration

Mr. Speaker,

46.  Sub-regional integration initiatives have taken on a new dimension since the realisation that ECOWAS has been active only politically with little economic co-operation. The protocol has been revisited to reactivate economic cooperation initiatives entrenched therein. Foremost, and currently in the making, is the creation of a second West African Monetary Zone (WAMZ).

 

47.   The Convergence Council at its third meeting held in November 2000 in Banjul, has recommended, to the Heads of States and Governments, the establishment of the West African Monetary Institution (WAMI), the adoption of the organisational structure and the appointment of key staff. WAMI, to be located in Ghana, has the mandate of preparing the groundwork for the establishment of the West African Central Bank (WACB), which will function as the central monetary authority of WAMZ. WAMI has an administrative budget of US$5.54M for the two years 2001 – 2002, and an operational budget to be assessed by the Technical Committee.

 

48.  Economic integration of this magnitude normally would require the harmonisation of some macroeconomic indicators; This is what is captured in the Convergence criteria for the creation of WAMZ. The convergence conditions require member countries to maintain among other things a single digit inflation, budget deficit GDP ratio of not more than 5%, deficit financing by Central Banks not to exceed 10% of previous year’s tax revenue and a foreign reserve of at least three months import cover.

 

49.  Mr. Speaker, I am happy to inform this gathering that, so far The Gambia is the only country that has met all the conditions by 1999. Nigeria attained three of the conditions, Guinea two and, Ghana and Sierra Leone one. Efforts are however, being consolidated in all member countries to be compliant by 2003.

 

50.  Other areas of cooperation ongoing or to be undertaken in the future include ECOWAS travelers cheques which provide a common medium of exchange, has already been launched, the liquified natural gas project, the trans-saharan highway and Customs Data Harmonisation under the ECOWAS trade protocol (ASYCUDA) just to mention a few.

 

iii.  International Agencies

Mr. Speaker, Sir,

51. The Gambia’s relation with the international donor community continues to improve. During the year 2000, various multilateral and bilateral development partners have identified themselves with our most cherished aspirations and committed both technical and financial resources through Government and NGOs in a show of sincerity. The Second Annual Arrangement, under the PRGF has been approved by the IMF, enabling the release of a further SDR 3.43 million (about US $4.51 million). This brings the total disbursed so far under the three-year programme to SDR 10.3 million (about US $13.5 million). Although The Gambia continues to maintain a broadly encouraging economic performance, the need to strengthen budgetary performance, enhance transparency and good governance cannot be overemphasised.

 

52. The World Bank, through the International Development Association (IDA) credit facilities, continues to provide vital support to the Government through rehabilitation and investment projects. Current undertakings in this area include the Participatory Health, Population and Nutrition Project, the Third Education Sector Project and Poverty Alleviation and Municipal Development.  In the pipeline are the strategic HIV/AIDS Rapid Response Programme which was successfully negotiated last week in Dakar and will go to the World Bank Board early next year.  The Capacity Building for Economic Management Project is expected to early next year. In addition, an Economic Reform Support Operation (ERSO) is under development with the World Bank. This project will target the reduction of the stock of domestic debt, broadening of the divestiture strategy, enhancement of external trade reforms and improvement of public resource management and poverty orientation of public expenditure.  

 

53. Other traditional partners such as the ADB, IDB, Kuwaiti Fund, BADEA and OPEC continue to consolidate their support of our development efforts. During the year, the ADB ratified a D12.0 million soft loan for the financing of a transition programme from traditional to modern approaches of livestock production and marketing. The ADB is also involved in literacy and micro-finance for Women and Youth Groups. Our programmes and policies also enjoy the favors of the EU especially in the areas of agriculture, education and roads. The UNDP, as the co-ordinator of external assistance from UN agencies to The Gambia and the European Union, have remained supportive of our National Governance Programme, the Local Government Reforms and Decentralisation.

 

54. Following the shortening of the country programme of co-operation 1999-2003 with UNICEF in order to harmonise the programming cycles of UNDP and UNFPA, a new programme for the period 2002-2006 has been agreed. This programme emphasised a right-based approach to ensure survival, development, protection and participation of women and children.

 

55. In support of The Gambia’s effort in eradicating poverty, the British Government through its Department of International Development (DFID), is funding a three-year project on Mainstreaming Poverty and Gender Issues into PRSP and the budgetary process.  During the past week, DFID fielded a designed mission to identify potential areas of support to the PRSP process working in partnership with both Government and Civil Societies. 

 

56. All our development partners remain concerned and committed to our well-being, and we in turn appreciative collaboration.

 

V.        OUTTURN OF THE 2000 BUDGET

Mr. Speaker, Sir,

57. In the 2000 budget, we committed ourselves to the eradication of poverty in the country. To this effect, we apportioned the lion’s share of the total estimated expenditure outlay to the social and productive sectors. We spent D140.4 million in Education against an allocation of D148.2 Million representing 94.7%, D69.6 million in Health representing 74% total allocation, D19.6 million in Agriculture or 85% of the total allocated and D19.5 million in Tourism, Trade and Industry, Youth and Sport and Department of Natural resources combined. It can be observed that some sectors’ absorptive capacity is greater than others but Government will continue to build capacity to ensure that budgeted resources are used accordingly.

 

58. With this, we had in mind the strengthening of our Primary Health Care System, which is the basis of our health policy; increasing access and quality of education; enhancing growth in the trade, tourism and agricultural sectors; facilitating youth empowerment and participation in national development; and safeguarding our environment while ensuring full exploitation of our resource potentials. The objective is to strengthen the human resource base, increase returns and enhance income opportunities, both necessary and sufficient conditions for increased growth.

 

VI.       IMPACT OF THE 2000 BUDGET ON POVERTY REDUCTION

59. Mr. Speaker, through observation, you will notice that the previous sub-heading and this one are new introductions into the usual budget format. These introductions are in line with current thinking with regards to program effective budgeting and the need to be accountable in all our undertakings. Thus, these two subheadings will enable us take stock of and appraise achievements of the budget against the targets set.

 

60.  Looking back at the 2000 financial year, it is gratifying to note that we have recorded some improvements on some of our socio-economic indicators which constitute the Human Development Index (HDI), used internationally by the UNDP in their World Development Ranking. You would recall that the UNDP Human Development Report in 2000 raised our ranking from 163 out of 174 countries to 161 out of 173.

 

61. This is as a result of improvement in education through the construction of 207 additional classroom blocks, increase in the number of teachers turnout by the Gambia College from 200 teachers in 1998/99 to 520 in the 1999/2000 academic year and the successful launching of a Scholarship Trust Fund for girls among other achievement. Also contributing, is the increase in the number of doctors fairly balancing the very disproportionate population–doctor ratio, reduction in the infant mortality rate by 23% (from 167 per 1000 to 97 per 1000), raising life expectancy from 43 to 52 years, high immunization coverage, reduction in travel time to the closest health care center and increased access to social and economic infrastructure in several communities and groups across the country with the collaboration of the donors and NGO communities.

 

62. Increased output in the productive sector was also registered particularly in agriculture, which has resulted in improved nutrient intake, strengthened food security and enhance export earnings. However, the challenge to consolidate on these achievements is an ongoing one, as year 2000 only marks the beginning of a decade devoted to the fight against poverty.  

 

VII.           DEBT SUSTAINABILITY ANALYSIS (DSA) AND

THE POVERTY REDUCTION FUND

63. Mr. Speaker, despite the fact that we have succeeded in honoring all our debt service obligations; with a debt service ratio of between 30% - 33% of the annual budget on the one hand, and the overarching need to effectively reduce poverty on the other, the burden of the debt is no longer sustainable.

 

64. To ascertain our debt sustainability situation, we conducted a workshop in May 2000 of this year with the assistance of Debt Relief International (DRI) and West African Institute for Financial and Economic Management (WAIFEM) to analyse our debt status and eligibility for the HIPC Relief. Our debt burden was found to be unsustainable thus; qualifying us for debt relief under the enhanced HIPCs initiative. This finding was supported by an IMF/WB analysis of our debt sustainability status. The Gambia was found to be eligible through the present value external debt to exports ratio window affording us a relief of 30%, which is equivalent to US$79.7 million.

 

65. Going HIPC is not a panacea in itself; it may bring about the relief on our debt service burden, but just enough to bring down the debt burden to sustainable levels through a prudent debt management strategy. Total debt cancellation as proposed at Cologne still remains elusive as the G8 reconvened at Okinawa to renew pledges. Thus, our best bet lies in strategising our borrowing practices while we negotiate for better repayment terms that do not stifle economic development.

 

66. Debt relief resources from the HIPC initiative will be devoted entirely to the Poverty Reduction Fund (PRF). This fund while remaining part of the national budget, is specifically outlined for tranparency and accountability. Disbursements from this Fund will be exclusively for poverty reduction interventions to increase welfare in the social sector and output in the productive sector. Programmes for funding will be determined by priorities identified from the continuous review of activities in the PRSP.  Already, an amount of D81.2m has been pledged into the  Poverty Reduction Fund for year 2001. 

 

Mr. Speaker, Sir,

67. It must be highlighted that HIPC relief alone fall short of the total resources needed for meaningful poverty reduction. A funding gap of US$ 17.6m, an equivalence of D264m has been identified for year 2001.  We therefore, reach out and implore our development partners, NGOs and the private sector to join forces and fight poverty.  

 

 VIII.   MEDIUM-TERM STRATEGY

68.  Our medium term strategy is embedded in the PRGF which is a re-orientation of the ESAF agreed with the Fund (IMF) in 1999, as the need to ensure that growth impacts directly and positively on poverty reduction becomes more apparent. At the heart of the PRGF is the PRSP, which spells out our poverty reduction strategy and define the tools for the implementation of Vision 2020 master plan. The interim PRSP has just been launched, and preparations for the full- blown one is underway for adoption in 2001. The paper defined and outlined a people centered approach to the eradication of poverty

 

69.  The implementation process would require a shift from the present line-item budgeting practice to a more programmed based budgeting and this we are initiating through sectoral Public Expenditure Reviews (PERs), which for most sectors is at the pilot stage. This initiative is already a success story at the Department of State for Education and we are discussing with other departments in the social and productive sectors such as Agriculture, Health, Tourism, Local Government and Lands and Works, Communication and Information to develop their own PERs, thus setting the groundwork for a Medium Term Expenditure Framework (MTEF).

 

70.  Our most tasking constraint in this pursuit is the lack of human resource capacity to undertake full-blown programme budgeting. Meanwhile, through the intervention of donors (through EMCBP/CBEMP/MPGP) and our own efforts, we are striving to build the needed capacity, both human and material, in the various department towards programmed budgeting. 

 

IX.              POVERTY REDUCTION THROUGH A

SOCIAL SECTOR DEVELOPMENT STRATEGY

71. Poverty is defined in term of an individual’s inability, denial or lack of capacity to access a given basket of goods, services and rights. A person is therefore poor, if he or she is unable, denied or lack the capacity to access the basic needs, relating to nutrition, health, education to mention a few. Its eventual impact is manifested in the social character and wellbeing of the society.  It is on this basis, that we have the community as our focus – to transform and organize them in such a way that they will be able to take advantage of the whole package of our poverty reduction strategy. And to make sure our efforts in social mobilisation and empowerment is translated into genuine socio-economic progress, it is pertinent that we strengthen the social institutions to better respond to the increasing needs of society. 

 

72. The strategy for poverty reduction will thus adopt a multi-faceted approach, centered on a highly participatory process including the private sector, civil society, the NGO community and our development partners. We will attack its causes to stop the growth in the number of the poor, while at the same time provide ways and means to help people walk out of it. This will significantly reduce the number that is already poor.

 

73.   The measures for poverty reduction would include, among other things, the adoption of a “pro-poor growth” strategy as outlined in the SPA II, to be co-ordinated by the Strategy for Poverty Alleviation Office (SPACO). This will ensure not only the creation of jobs as a high priority of economic policy, but also growth that reduces income inequalities. It will also provide strategies for growth-based human resource development and the promotion of economic and political good governance and the mainstreaming of poverty and gender concerns into public resource management.

 

i.          Health and Population Issues

74. Mr. Speaker, Health and population issues directly concern the people, our most valuable resource. The Government is aware that a productive nation must first of all be healthy. Health therefore, commands high priority in Government’s agenda for sustainable development. Our health care delivery system revolves around the principles of Primary Health Care (PHC) and as such, puts special emphasis on the provision of basic health care for all Gambians.

 

75. In this regard, a comprehensive five-year Health Action Plan 1999-2003 is currently being implemented.  The approach seeks to integrate interventions that are cost effective and sustainable, in areas such as Family Health, Disease Control, Health Promotion and Protection. The last five years have seen considerable progress in the health sector.  The numbers of health facilities and health personnel have increased significantly. The number of Cuban Doctors has increased from 150 to 244 and this has, alongside our Nigerian and Egyptian Technical Assistants, significantly strengthened service delivery at primary, secondary and tertiary levels of care.  The Taiwanese fund has also facilitated capacity-building and institutional strengthening at all levels of health care.

 

76. In addition, infant and maternal mortality rates and the fertility rate has also fallen marginally. However, Malaria continues to be the disease most commonly reported and is still the leading cause of mortality in children under five years. Childhood Malnutrition continues to be a major cause of ill-health and death.  The micro-nutrient survey has established baseline data on Vitamin A and Iodine deficiency levels.  Iron deficiency anemia, due to a combination of chronic malaria and dietary iron deficiency, contributes immensely to our Infant and Maternal Mortality Rate.  In this regard, the National Nutrition Agency (NANA) has been formed under the office of the Vice President to respond appropriately to this issue.

 

77. Respiratory Tract Infections and Gastro-Intestinal Diseases also pose a formidable threat to the health of Gambian children.  The Integrated Management of Childhood Illnesses (IMCI) and the Roll Back Malaria Initiative, are key strategies aimed at reducing our Infant Mortality Rate. The EPI targeted diseases continue to show a downward trend and indeed Polio eradication is a real possibility in the coming years. Many women still die from pregnancy-related anemia, complications of pregnancy and unsafe abortions.  A comprehensive Family Health Program that incorporates Maternal and Child Health (MCH) is being implemented to address this problem. The emergence of non-communicable health problems such as Diabetes and cardio-vascular Diseases, pose a serious threat to the health sector.  The persistent and chronic nature of such diseases implies that their long-term treatment consumes a considerable portion of scarce resources.

 

78. Sexually Transmitted Diseases (STDs) are also on the increase. The AIDS (HIV) virus is the most formidable pathogen to confront modern medicine. Worldwide, around 50 million people are now living with HIV/AIDS and 24.5 million of these live in Sub-Saharan Africa.  Last year 2.6 million people died of AIDS. The financial burden of AIDS related care is exorbitant.  One year of basic medical costs for a person living with AIDS is equivalent to 2 to 3 times a country’s yearly GDP per capita, and the bulk of that expenditure is borne by the already over-stretched health budget.  AIDS therefore, is not only a health issue, but a national and development issue as well

 

79. Therefore, as part of this Governments commitment, The National AIDS Council and Secretariat is being formed under the office of the President, to execute a Rapid Response HIV/AIDS project.  The international Partnership with World Bank will help trigger the rapid response required to contain the pandemic. The PHPNP has also set aside funds for HIV/AIDS Control.  UNDP, WHO, UNIEF, EU and MRC continue to support Government’s effort in the fight against AIDS.  Recently, Government and World Bank concluded negotiations for a credit facility of SDR 11.8m, an equivalent of US$15m, for HIV/AIDS control.

 

80. Other factors beyond the remit of health care services, continue to exert maximum pressure on health, notably the rapid demographic changes. Our present population growth rate of 4.2% of which immigration constitute 1.7%, is about the highest in the sub-region and this is of great concern to the Government given the increasing demand implications on the limited social service facilities, especially in the urban areas. In recognition of this fact, the Government is strengthening the activities of GFPA in information, education and communication to the general public. Also through the promotion of the enrolment of the girl-child and further foster the education of the boy, it is hoped that the fertility rate will drop, and consequently, the population rate.

 

81. Population growth invariably has an impact on the housing situation. Apart from the unavailability of land for shelter, which is being address by the Department of State for Local Government and Lands through micro-development programs, the high cost of building materials which are predominantly imported, constitute another challenge. The Department of Community Development, in collaboration with The Commonwealth Secretariat, is executing the Resource-Base Building Materials Project to encourage the use of domestic resources in the building industry.

 

82. The SSHFC with the support of government and Shelter Afrique, is also making commendable progress on the BRUSUBI Housing Project, in a bid to alleviate the housing situation.

 

ii.         Education and Human Resource Development

83. In pursuance of its mission statement to provide responsive, relevant and quality education for all, the Department of State for Education continues to implement activities outlined in the Third Education Sector Programme. The Gross Enrolment Ratio (GER) for the academic year 1999/2000 is recorded 70% and the transition rate is 90%.      Mr. Speaker, performance in the Education Sector has been better than planned, consequently, the indicators have been revised upwards in order to obtain by year 2003, a Gross Enrolment Ratio (GER) of 83% at Basic Education level, transition rate of 87% from Grade 6-grade7 by 2003 and 50% transition rate from Grades 9 to Grade10.   

 

84. In accordance with these performance targets, Basic Cycles, which allows for a smooth transition from grade 6 to 7 without examination, are introduced in several communities to increase access to basic education. In the year 2000 about 237 classrooms have been built and completed through Gamworks under IDA Financing in Regions 3, 4 & 5 and additional 81 classrooms are currently being constructed in a drive to reduce overcrowding.  These are expected to be ready for use during the course of this academic year.

 

85. The European Union, in its efforts to promote rural development in The Gambia, is also funding the construction of two hundred and seven (207) classrooms in the rural parts of the country. Similarly, the OPEC fund is financing the construction of two new upper basic schools in Abuko and Banjulnding to cater for the increasing population of the Western Division. The construction works are in progress.  

 

86. Mr. Speaker, as part of its drive to improve the quality of education, the Department of State of Education through the Standards and Quality Assurance Directorates designed a pupils achievement record card in which a child’s progress from one grade to another, will be followed with a view to providing the necessary resources for the child’s moral development.  Learning achievement targets for grades 3 and 5 in the four core-subjects areas of English Language, Mathematics, Science and Social and Environmental Studies will be introduced following the implementation of the pilot project on Monitoring Learning Achievement in grade 4.

 

87. In addition, the number of teachers being trained at Gambia College has increased significantly from 75 in 1998/99 to 299 in the 1999/2000 academic year at the Higher Teacher Certificate level whilst the figure for the Primary Teachers Certificate (PTC) has increase from about 125 to 231 during the same period.  The provision of textbooks reflecting Gambian Culture has also been increased to match the growing enrolment in the system.

 

88. In line with the education policy and its attendant partnership strategy, the integrated Functional Literacy Project sponsored by UNDP has facilitated the establishment of unified framework for Adult and Non-formal Education.

 

89. To reduce the cost burden on parents and encourage the education of the girl child, the Girls’ Scholarship Trust Fund has been initiated to cater for girls in upper basic and senior secondary schools in Regions 5 & 6.  This is being supported under the Third Education Sector Program with supplementary co-financing from civil society. During the ensuing fiscal year, the scheme will be introduced in other parts of the country.

 

90. Overall budgetary allocation to this sector has increased from D139.1m in 1999 to D148.2 m in year 2000 representing an increase of 6.5% in annual terms. The sector continues to enjoy a considerable 21.8% of total government recurrent expenditure excluding interest payments, signifying the importance government attach to empowerment of the nation through education and increase access to high quality and relevant education to all Gambians.

 

91. Various other private and NGOs bodies are assisting in our human resource development. Notable amongst them are AFET and FFHC, as well as many others who concentrate on capacity building for the execution of poverty alleviation and income enhancing activities.

 

iii.        Women Issues

Mr. Speaker, Sir,

92.  Women constitute about 51% of our population and bulk of the productive work force, hence their marginalisation may have devastating effects on economic growth. It is in the light that the National Policy for the Advancement of Gambian women was adopted and a National Women’s Council set up. Through the MPGP, solid steps are being taken to build capacity and enable policy makers mainstream poverty and gender issues into macroeconomic policy and planning. In November 2000 a study visit was fielded to the Republics of Uganda and Tanzania to understudy better practices in the PRSP process and the mainstreaming of gender issues into the budgetary process. Since the development of women tantamount to the development of the Nation, empowerment of women will continue to be ranked high on this Government’s Agenda.

 

iv.        Youth and Sports

93. To ensure a structured and vibrant development of Youth activities, the National Youth and Sports Policy and Programme are adopted as part of the Government’s new agenda for youth empowerment and involvement in national development efforts. Significant among progress made is the establishment of the National Youth Council with the mandate to represent the interest, concerns and aspirations of the Youth in The Gambia.  Also, the Youth Centers with the collaboration of GAMWORKS in Basse, Soma, Georgetown and Farafenni are at their final design stages, and the preparation of the project document for donor support to the NYERF is at it final review. This initiative will help establish a Micro-credit scheme for youth development.

 

X.        Poverty Reduction through Infrastructural Development

Mr. Speaker,

94.  The development of a good infrastructure particularly energy, roads, and telecommunication networks is paramount in any poverty reduction strategy especially the Gambia’s, given our present sub-standard condition.

i.    Energy

95.  The generation of uninterrupted supply of electricity to at least a majority of the population has been a problem and a challenge to the energy sector. The Problem has exacerbated and permeated all levels of the sector from generation, transmission to the distribution of electricity. The hike in the price of oil in the world market and the depreciation of the dalasi in relation to major international currencies, has impacted negatively on the operational cost of NAWEC. Yet, this sector offers the greatest potential for public-private partnership and thus, strengthening our resolve to rise up to the challenge and address both the institutional and structural problems of the sector.

 

96. In year 2000, electricity services were expanded to parts of Sukuta, Bundung, Manjai kunda and Burusubi. Our goal in the energy sector is to provide electricity countrywide. For this reason, in 2001 we plan to electrify the remaining part of Manjai kunda, Fagi Kunda, Wellingara and the Sinchus if all pledged funding are redeemed. The use of solar energy is registering some progress through the initiative of private operators. While assuring them of our support, the Government is urging them to carry on the good work and possibly review their marketing structure to allow low-income individuals to access their service through installment payments. 

 

97. In our drive to ensure development in all the divisions, a Rural Electrification Programme is to commence in the coming fiscal year.  This programme is to be co-finance by the IDB, ADB, and BADEA.  The IDB loan of D96.56m was signed in November 2000 at the IDB annual meeting in Beirut and negotiations are completed with the ADB for a loan of D47.8m.  The BADEA loan of D96m is expected to be presented to its Board in the first quarter of year 2001.  The implementation of this programme will result in the electrification of major rural communities.

 

ii.    Water Resources

Mr. Speaker,

98. Despite the seemingly abundant nature of water resources, it is a scientific fact that they are exhaustible and the cost of providing save and adequate water for domestic and other uses is rising. Rationalising the use of this very precious resource to ensure quality and availability, is of great concern to Government.

 

99.  A water sector policy and law will be developed for the country, which is needed for the integrated planning, and implementation of water resource programmes and projects. To this effect, a distributive licensing for operators will also be developed, and will spell out the terms and conditions within which investors in the sector will operate. This will help the regulators to monitor the sector.

 

100. At the regional and international levels, the Department of Water Resources continues to collaborate with various organisations to promote meteorology and hydrology, assess the climate system, and to enhance the management of water resources and the protection of the environment.

 

101.                      The on-going Rural Water Supply and Sanitation Project funded jointly by the UNDP, UNCDF and The Gambia Government, has already implemented various activities in Western, Lower River and Central River divisions. In year 2001, the project will construct 120 new hand-dug wells, improve a further 60 existing open wells, fit a total of 270 hand-pumps, and construct 10 solar powered reticulation systems in large villages with solar systems. Storage tanks have already been procured and borehole materials have been received.

 

102.                      Saudi – Gambia Rural Water Supply Program is to provide wells for villages in the North Bank, Central River and Upper River Divisions at a cost of $4 million over a 2 year period.

 

103.                      The Village Water Supply Project (VWS), financed by this Government and the European Development fund (EDF) is in progress and intends to construct at least 24 new Solar Powered Water supply systems in medium size villages, upgrade about 10 existing water supply systems, and consolidate the national Maintenance System. Additional funds are expected from the 2^nd Phase Regional Solar Program (RSP-2) and when approved, more water supply systems will be constructed.

 

104.                      UNICEF is assisting in the provision of concrete –lined wells in primary schools, mostly in Central River Division. It also funded the activities of the multi-agency Water and Sanitation Working Group based at the Department of Water Resources.

 

105.                      NAWEC will in the course of 2001, undertake the relocation of service lines – water as well as electricity from the proposed Serekunda - Mandinaba Road site.

 

iii.  Telecommunication

106.                      Telecommunication is the core of the information infrastructure and developing this is imperative if we are to participate in the global economy on a competitive footing. Gamtel continue to expand into new areas with newer services as well consolidate on the gains of the recent past. Consequently, by the end of year 2000, the number of telephone lines is projected to grow by 7.7% to 30400 lines. A major project undertaken during the course of the year, include the laying of the fibre optic along the Kombo Coastal Roads and the Basse-Fatoto and the Upgrading of the Banjul-Basse fibre optic from medium to high capacity. Also ventured into during the year is the introduction of a GSM, which is estimated to cost 5.9m Euros and would serve 15000 customers initially of which 90% will be prepaid and 10% postpaid.

 

107.                      As partners, the private sector cannot be left out of this growth-stimulating sector. In this light, we are working on the regulatory framework to increase their participation in such a way that, competition and greater consumer satisfaction would be ensured. Already, the operation of Tele-centers is liberalised and the marketing of prepaid phone cards is partly in private hands notably VM The Gambia Ltd.

 

iv.  Transportation

108.                      Empowerment of the poor, especially the rural, is found to be closely related to the availability of an efficient transportation infrastructure, which enhances marketability of products and cut down on the related output and monetary costs where this facility is non-existent or not developed. A good infrastructure is the engine for sustainable economic development.

 

109. It is important to note that, transportation goes beyond means of communication to include the road network that links people to social facilities such as schools, health centers, markets etc.  The government recognises this connection and the potential synergy derivable.  This has warranted the continued investment in upgrading existing and building new roads all over the country.

 

110. The recent Highway Authority Bill, to be enacted next year, promises great benefits by way of a carefully managed Road fund.  This will increase private participation in Road maintenance and boost overall economic development as scarce government resources are released for financing other efforts especially in the social sector.

 

111. Currently, the Department of State for Works, Communication and Information is coordinating the construction of the Kombo Coastal Road which is scheduled to be complete in July 2001, and the construction of the Serrekunda-Mandinaba Road funded by the Gambia Government, IDB and OPEC at a total cost of D160 million which is to be completed early 2002. Whilst the Essau-Kerewan Road has been completed, the Kerewan Bridge will be completed by end March 2001. The D9.7 million funded EU project for the upgrading of the Fatato-Koina earth track to a gravel road, the regravelling of the Basse-Yorobawal road and the reconstruction of the Gugu bridge in Basse with its access road has started and the projects are to be completed by the end of the first quarter of 2001. The Gambia government will provided 100% funding for the regravelling of the Lamin-Mandinary access road which is already underway.

 

112. Government is relentless in its efforts to secure funding for the construction of the Kerewan-Farafenni road for which a study was completed earlier and similarly for the Farafenni-Lamin Koto road for which the current KFAED funded study and design will soon be completed. The EU has also given a grant in the sum of D4.1 million to conduct studies for upgrading the 14km Barra-Amdallai road, the 8km Basse-Sabi road, the 25km Transgambia road and  the 18km Mandinaba-Seleti road. It is expected that the EU also will fund the implementation of the recommendations of the studies immediately after their conclusion.

 

113. The D1 million ADF funded coastal protection study is to be completed early in year 2001 and government is optimistic to secure funds from the ADB to implement the recommendations of the study so that our coastline will be saved from the horrendous erosion.

 

114. Mr. Speaker, it is also appropriate to mention here, the notable strides made in the arena of air transport. During the course of the year the Gambia Civil Aviation Authority, (GCAA) obtained from the Federal Aviation Authority of the United State of America, a Category One Rating for the Banjul International Airport (BIA), thus, enabling flights to depart our soils for a direct flight to the U.S.A.

 

115. The Airport infrastructure is also undergoing a major refurbishment and expansion through a D19.4 million project from the Kuwait Fund for Arab Economic Development (KFAED) and Arab Bank for Economic Development in Africa (BADEA). This is aimed at bringing facilities up to date, increase capacity and security to commensurate with the anticipated increased traffic as we consolidate our position as the gateway to the sub-region. 

 

XI.    POVERTY REDUCTION THROUGH INCREASED PRODUCTIVITY

 

116.                      The Government’s Strategy in increasing productivity will center on institutional and structural reforms in the productive sectors of Agriculture, Trade and Industrial promotion and Tourism as well as stimulating more private sector operations in the public enterprises.  For any meaningful and sustainable development, the Governments intervention must be limited to facilitating a competitive environment where the ultimate beneficiaries are the consumers and the nation at large.

 

i.          Agriculture

Mr. Speaker,

117.                      The Agricultural sector employs over 70% of the work force and continues to contribute significantly to the GDP. In view of its pivotal role in socioeconomic development this Government remains resolutely committed and determined to the sector’s development. In recognition of this, we continue to mobilize investment resources for: (i) increased agricultural output, (ii) food security and (iii) employment generation. We embarked on major programs and projects primarily aimed at enhancing the production, processing and marketing capacities in field crops particularly rice, horticulture and livestock.

 

118. A US$ 10.98 million Rural Finance and Community Initiatives Project (RFCIP) funded by the Government and IFAD continues to register satisfactory progress in the quest for improved food security and income of households through the strengthening of VISACAs and Kafo capacities and support to agriculture and livestock activities. These include - the Special Program for Food Security (SPFS) funded by the Gambia Government and FAO, and a five-year Peri-urban Smallholder Improvement Project funded by the ADB to the tune of 7 million US$, which will be launched in the first quarter of 2001.

 

119. In terms of policy, the draft Agriculture and Natural Resources policy objectives and strategies 1998-2002 is being broadened to the year 2020 and will soon be submitted to cabinet for approval. 

 

120. Further collaborative efforts continue with Chinese Agricultural Mission to improve both the production and marketing of rice. Processing is on high gear and marketing is gradually picking up with the reactivation of the Kuntaur Rice Mill.  Demand for the Mill’s broken rice is far in excess of supply whereas for the long grain and Basmati rice, supply outstrips demand.  I would, therefore, urge our public institutions and rice importers to patronise our high quality Gambian rice and thus, help promote agro-industrialisation.

 

121. Horticulture production witnessed much improvement during the year under review.  The increased production is a result of the combined effort of the small-scale community garden schemes, which produce mainly for the local market and the commercial growers who produce for the domestic market, including hotels and restaurants, and at the same time take advantage of the export potentials of fresh tropical fruits and vegetables to the winter markets in Western Europe.

 

122.  Another development in the agricultural sector include a South South Project which was signed in November 2000 at the IDB annual meetings. The project aims to increase cooperation between the Governments of Bangladesh and Gambia in identifying, designing and implementing (i) low-cost technologies projects, (ii) to increase productivity in horticultural crops, and poultry, (iii) to assist in the development of viable irrigation and water management system and (iv) to enhance income generation of rural households. The total cost of the project is US$1.75m over 3-years.  The technical assistance of US$ 302,400 grant element will finance 28 field technicians from Bangledesh.

 

123. In the area of agricultural output marketing, mixed results were experienced in 1999.  Whilst Cereal, Cotton, Sesame and horticultural produce were marketed smoothly, Groundnut marketing suffered a great setback which seriously threatened the survival of the groundnut sub-sector. The threat was, however, reversed with the positive collaboration between the Government and Agribusiness Service Plan Organization (ASPA).

 

ii.         Trade and Industrial Development

124.                      Our role in Trade and Industrial Development cuts across many issues but are directed more towards providing an attractive environment for private sector development through the adoption of competitive policies and laws in compliance with the WTO agreement.

 

125. To this end, efforts have been geared towards trade expansion and investment in areas that have significant export potentials and positive growth impact on the economy. We will continue to ensure effective trade promotion through trade policy liberalization, mutual bilateral, regional and multilateral trade co-operation agreement, trade fairs, publication on trade promotion material, re-export trade monitoring, stakeholder dialogue, and trade oriented research.

 

126. The Trade Gateway Project, which is the largest and the most comprehensive package for private sector participation in The Gambia, is at an advance stage of development and will be presentation before the World Bank Board, and is expected to takeoff by June 2001.

 

127. The area of petroleum and mineral exploration, a key area of focus to government, an agreement is reached with West Oil Australia in October 1999 for a 6-year PPL programme, which includes a 1000Km 2D/3D seismic survey in the initial period of exploration. At the same time, Government has also signed a Reconnaissance License with a geophysical company Veritas DGC Ltd for the acquisition of data in this area. The Agreement entailed a 100Km of seismic test line survey, which Veritas has completed, and a main 2D survey of 2000 and 3000 Km. The final report is being awaited.

 

128. Meanwhile, the Economic and Legal Advisor Services Division (ELAS) of the commonwealth Secretariat has agreed to help in the review of the existing Mineral Act, the assessment of the adequacy of the proposed Legislation, and in considering the most appropriate type of arrangement.

 

129. The Government continues to combine effective mining and the need for environmental protection. A mining right has been allocated to CSE for sand mining at the Kartong site for the Kombo Coastal Road Project and an emergency alternative sand mine is being assessed by the Coastal and Marine Environment Working Group for suitability

 

130. In the area of entrepreneurship development and promotion, especially, in the local building and construction industry, agreement has been reached with the Export and Industrial Development Division (EIDD) of the Commonwealth to provide technical assistance to Government to facilitate programmes relating to building materials for women and youths.

 

131. In the area of employment and Human Resources Development, this Government, through the Department of Trade Industry and Employment has, after consultation with our development partners notably UNDP and ILO, successfully embarked on a nationwide consultative workshop involving all the Divisions and the two municipal authorities of Kanifing and Banjul, as a start to draw a National Employment Policy.  A preliminary report on these consultations has been submitted for review.

 

132. The strengthening and administration of Labor remains a key requirement for peaceful industrial relations in the country. This Government continues to ensure effective dialogue on the basis of tripartite consultations including Trade Unions and the Employers’ Association. Some progress has been made to undertake a review exercise of the Labor Act. 

 

133. IBAS continues to assist Gambian entrepreneurs by way of training, consultancy, marketing, financial and other extension services, and in this way complement current efforts and strategies for poverty alleviation.  It operates three (3) Loan Schemes, from 1995 to date, about 1,799 entrepreneurs 65% of whom, are women, have benefited from this revolving loan scheme.

 

134.                      In its mandate to ensure full protection to the consumer, the Standard and Consumer Protection Bureau (SCPB) continues to revamp pre-inspection of all imported food items before their sale to the consumer.  The SCPB will be promoting standardisation and quality control in the manufacturing industry and other service delivery sectors. This measure will concurrently enhance the competitiveness of local products at the global market.  

 

135.                      Finally, Mr. Speaker, the Department of State for Trade, Industry and Employment ought to be commended for their foresight and initiative in organizing, in collaboration with the Chamber of Commerce, the first-ever Economic Summit in The Gambia. This two-day summit brought together an impressive mix of the private sector, to dialogue in a frank and fair atmosphere, the opportunities and challenges to enable and ensure a true partnership, for the common good of all Gambians. The Summit has concluded useful recommendations for implementation and follow-up. In particular, it is hoped that soon, a joint liaison body will be established for monitoring and follow-up on issues pertinent to the partnership.  

 

iii.                Tourism and Cultural Issues

Mr. Speaker,

136.                      The Tourism Industry continues to gain significance in our national economic development endeavors and contributes about 6.25% to the Gross Domestic Product (GDP) in year 2000 and employs about 10,000 people.

 

137.                      In line with the National Policy on Tourism Development, efforts have been accelerated to further diversify the source markets. These have started to yield positive results as tourist arrivals continue to enjoy a steady growth, with 119,000 air-chartered tourist recorded for the 1998/99 and 130,000 estimated for 1999/2000. This tremendous achievement is primarily attributed to the peace and tranquillity this country and its people offer.

 

138. Efforts are also in full gear to strengthen the marketing strategies as well as seek new partners from Eastern Europe and Northern America, with a view to improve the performance of The Gambia's tourism industry on a sustainable basis. Other innovative measures and strategies designed to revitalise The Gambia’s tourism sector includes, shifting from a strictly winter destination to an all year round one so as to suit the needs of all categories of tourist.

 

139. As part of the activities to make the country an all year round destination the Department of State for Tourism has once again taken the International Roots Homecoming festival to higher heights. Also, negotiations have reached an advanced stage towards a partnership with Air Afrique, Sabena and Ghana Airways to operate direct flights to America from The Gambia. This we hope, will significantly diversify our source markets.

 

140. In addition, cultural and eco-tourism is also being developed and encouraged. The recently inaugurated museum at the Wassu Stone Circles site built by the National Council for Arts and Culture (NCAC) is in line with this spirit. Plans to preserve and upgrade museums and monuments in the country with the assistance of the World Bank, UNESCO and other International agencies are also underway. Some of the monuments in the country, such as James Island and the Six Gun Battery at the State House have been listed in the world heritage list of UNESCO and now enjoy international recognition and status.

 

141. The reconstituted Tourism Area Development Board has started working in earnest, with the primary aim of upgrading the standards of tourism infrastructure by giving priority to hotel projects of 4 and 5-star standards. This is aimed at attracting the high spending tourists as opposed to the mass charter tourists that have hitherto constitute the bulk of arrivals to The Gambia. In the same vein, the area of capacity building for the Tourism industry will be given a boost by the proposed upgrading of the Gambia Hotel Training School, to a tourism institute that will offer diploma level courses and programs in Tourism and Hotel Management.

 

iv.                Fisheries

142.                      Mr. Speaker, Sir, in recognition of the potentials of the fisheries Sector to our development efforts, Government, continues to grant priority to the development of this sector.  In this effort, the Government, in collaboration with our development partners, has formulated a number of planned activities aimed at developing the coastal and inland fisheries sectors.

 

143. Construction work on the Project for the Improvement of Fishing and Preservation Facilities For Inland Fish Distribution at Tanji is progressing satisfactorily. This Project is funded by the Government of Japan - a committed and steadfast partner in our fisheries sub-sector since the early 1970s. In keeping with its commitment, the Government of Japan has indicated willingness to consider providing similar facilities at Gunjur Fisheries Center in the near future.

 

144. The Gambia Fisheries Development Project to be jointly funded by the Gambia Government, the African Development Bank and the Arab Bank for Economic Development in Africa (BADEA) will have a country-wide coverage and will include components for the establishment of a central fish market, improvement of existing inland community fisheries centres and an ice chain for the preservation and marketing of marine fish in inland markets.

 

145. This project and the Tanji Fisheries Project are expected to complement Government’s effort to alleviate poverty and enhance food security through the creation of income generating activities and improved nutrition in the rural population. Our concern here is how manywill benefit from this projects given that our fisheries sub-sector is dominated by other West Afrian nationals. We therefore urge out youths to take advantage of these projects.

 

146. Inorder to conserve, protect and optimise the use of our fisheries resources, Government recognises the need for a rational utilisation and management. To this end, a handful of studies and surveys are being conducted by the Fisheries Department in collaboration with international and sub-regional research and conservation organisations.

 

147. The results of these studies will be expected to be used in the formulation of policies and strategies for sustainable utilisation and management of these important fisheries resources.

 

148. The Gambia Navy and the Monitoring, Control and Surveillance Unit of the Fisheries Department continue to collaborate in this noble effort of policing our waters. The Sub-Regional Industrial Fisheries Surveillance Project of the Sub-Regional Fisheries Commission (SRFC) based in Banjul has been implementing various activities geared towards strengthening the aerial surveillance and maritime patrol capacities of the six member countries of the Commission.

 

149. The need of information as an essential input in fisheries resources management has become paramount. This has prompted the recent take off of the Sub-Regional Fisheries Information and Analysis (FIAS) Project.  This (three year) European Union funded (3 million Euros) Project will collect and analyse information relevant to the fisheries and fish stocks of countries of the Sub-Regional Fisheries Commission and is expected influence policy in the sector.

 

150. The pursuit of an efficient and reliable quality control and monitoring system, to ensure that quality fish products are exported to foreign markets and thus optimize the revenue generated from such exports, was boosted recently by the intervention of the Arab Bank for Economic Development (BADEA), in the form of financial and technical assistance to operationalize the Fisheries Quality Laboratory constructed at the Fisheries Department headquarters.

 

 

 

 

 

XII.     PUBLIC ENTERPRISES

Mr. Speaker,

151.                      The Public Enterprise (PEs) sector’s gross turnover for 1999 amounted to D914.3 million representing 18.5% of the 1999 GDP figure of D4.92 billion. An individual analysis of the PEs shows that Gambia Telecommunications Company Limited contributed D268.4 million or 29%, National Water and Electricity Company limited contributed D225.3 million or 24.6%, Social Security and Housing Finance Corporation D128.0 million representing 14.0%, and the Gambia Ports Authority D116.9 million or 12.8%.

 

152. Other contributors include: Gambia Public Transport Corporation D64.4 million (7%) Gambia Civil Aviation Authority with D54.2 million (6%), Gambia International Airlines D40.1 million (4%), Asset Management and Recovery Corporation D8.4 million (0.9%), National Printing and Stationery Corporation D6.3 million (0.7%), Maintenance Services Agency D4.1 million (0.4%), and Independence Stadium and Friendship Hostel D3.2 million (0.35%). The sector’s turnover is projected to increase by 6% from D914.3 million in 1999 to D964.8 million in 2000.

 

153.                      Total investment of the sector in 1999 amounted to D740.5 million and was held by just two PEs: SSHFC D697.3 million or 94% and GPA D43.1 million or 6%. Out of the total investment figure, short-term government securities (treasury bills and discount notes) accounted for D657.2 million or 89%, while the remaining 11% held by SSHFC was in equity and development stocks. It may be noted that while the investments of the public enterprises are significant, we would encourage them to deepen their investments and to strive to extend reliable services countrywide.

 

154.                      Capital expenditure incurred by PEs in 1999 was D213.5 million, of which D169.7 million or 80% was contributed by GAMTEL and D21.2 or 10% by NAWEC. Most of this expenditure was in their core activity of infrastructure development. By the end of 2000, whereas capital expenditure is estimated to fall by 14%, overall investment is expected to rise by 8%.

 

155. The PE sector in 1999 contributed D69.5 million or about 8% of the government’s total revenue figure of D878.7 million (grants excluded). This contribution is in the form of loan repayments, dividends and taxes.

 

i.          The Divestiture Strategy and Regulatory Framework for The Gambia

156. The overriding objective of the divestiture/privatisation programme is to roll back government through its withdrawal from activities best suited for operation by the private sector – thereby creating the enabling environment for private sector led growth. This is considered to be most effective by engendering competition in the best way possible in order to ensure that goods and services are provided at the lowest possible cost. The freedom of choice exercised by consumers motivates companies to increase efficiency in order to guarantee their own survival.

 

157.                      Mr. Speaker, it is noteworthy that the body responsible for technically preparing enterprises for divestiture, and serving as a secretariat for the divestiture process, the Gambia Divestiture Agency (GDA) - the restructured Financial Services Unit of DOSFEA has been instituted and is awaiting the enactment of the divestiture bill by the National Assembly for it to start work in earnest. The High Level Economic Committee (HILEC), will handle the policy decisions involved in the divestiture process, while a Board, whose members will be drawn from both the public and private sectors, will oversee the implementation of those policies and technical matters relating to the divestiture process.

 

 

158.                      Already the Atlantic Hotel and the Trust Bank Building have been sold in December 1999 and February 2000 respectively. The first stage of the divestiture process will be to bring to point of sale the National Printing and Stationery Corporation (NPSC), the Maintenance Services Agency (MSA), and the Kuntaur Rice Mill. With regards to GAMTEL, the first step to its divestiture is the separation of the broadcasting services from telecommunication and the setting up of a separate GSM company.   The opening of the capital of NAWEC to private operators will be carried out through a joint venture by forming a strategic alliance with a strategic partner who will be identified through International Competitive bidding.

 

159.                      Within the proposed Economic Reform Support Operation of the World Bank, the balance sheets of SSHFC and GPA will be restructured to reorient them towards more productive long-term investments through direct and indirect measures.  These measures together with the proceeds of privatisation will be used to reduce the domestic debt.

 

160.                      In terms of the legal and regulatory framework for the sector, a public utility and regulatory authority bill, which covers the energy, communications, transportation and aviation sectors will soon be tabled before Cabinet and the National Assembly. Sector laws and policies, which are the major components of the legal and regulatory framework, are being developed, whilst an electricity law, has already been developed.

 

XIII.          ENVIRONMENT ISSUES

Mr. Speaker,

161.                      Our strategy in this area aims at maintaining an environment that is protective, preserving and amenable to the continuous existence of life through the reform of the laws and regulations that guide our attitude towards the environment.

 

162. The Gambia Environmental Action Plan (GEAP I) has provided the framework for national environmental policy, planning and natural resource management decision-making on a more holistic and integrated basis. In order to consolidate on the gains registered in the implementation of the first phase of GEAP, a follow-up document - GEAP II is in the final stages of preparation.  Given the global and rising concerns for environmental management, we hope that our development partners will react positively the funding of GEAP II.

 

163.                      The major thrust of GEAP II implementation will be to widen and deepen the process of public awareness for grassroots participation in all community natural resources management and environmental management schemes.

 

164. With assistance from the African Development Bank (ADB), studies are currently being conducted along the coastline with a view to determining the causes and nature of the phenomenon of coastal erosion, and to recommend a sustainable form of exploitation of coastal resources. It is expected that the findings of the study will enable this government to be better placed, to deal with this phenomenon and coastal zone management issues more effectively.  In recognition of the fact that environment degradation is a cause and effect of poverty, the Government is committed to mainstreaming environmental issues into the framework of the poverty reduction programme.

 

XIV.    FORESTRY

165.                      During year 2000, the Forestry Department, through the funding of the Federal Republic of Germany and the European Union, has significantly increased the number of Forest Parks and Community Forest areas under management.

 

166.                      The objective to bring all the remaining forest areas in the country under the management of local communities through the Community Forestry initiative, is currently being piloted and expanded in all the five provincial administrative divisions.  The department’s target is to put 200,000 hectares of non-gazetted forest areas under community Forest Management by the year 2005.  So far, 50,000 hectares have been covered. The target is highly achievable as requests from communities in all the administrative division for participation in the initiative continue.

 

167.                      Construction of forest sub-stations will continue (CRD3, URD3, LRD1 and WDI) with radio communication facilities and Solar Panels installed, to facilitate communication at reduced cost.  Some of these equipment are already in hand.

 

168.                      With regards to Forestry Projects, negotiation with the Federal Republic of Germany for a 4-year extension (2^nd phase) of the Central River Division Forest Project to a tune of about DM 8 Million is well advanced and will likely to commence in the first quarter of year 2001. Similar negotiations are going on with the European Union for funding of the North Bank Forestry Project to a tune of 1.7 Million Euro.  The extension of the Upper River Forestry Project is also on the table with the European Union through the EDF and SDRD Projects. These extensions are necessary for expansion and consolidation of the community Forest Scheme.

 

169.                      A Mangrove Management Project Proposal was also submitted to the Japanese Government for financing.  This project already has been approved by the Japanese government and is expected to commence in year 2001.

 

 

XV.            WILDLIFE AND PARK MANAGEMENT

170.                      Actions such as the over–exploitation of natural resources and encroachment into protected areas, wildlife habitat destruction as a result of bush fires and international commerce in life animals, threaten wildlife and their habitats, which are vital sources of food, raw materials, and income of special importance to rural communities. They also provide alternative attraction for the tourist industry. Of the 50 – 70 mammalian species known to have existed in The Gambia, 13 have become extinct, and a similar number is threatened with extinction.

 

171. Cognisant of the serious threat facing the general environment, particularly the wildlife resources, the government plans to put in place sound environmental biodiversity management measures which will shift the focus from mere preservation to sustainable development of the wild life, through reserving protected areas in which to preserve selected samples of The Gambia’s remaining fauna and flora. This would require extensive conservation education and extension program, bearing in mind that the success of any natural resources management intervention will depend on the support and cooperation of an informed and motivated public.  Activities from Wildlife and Park Management have good potentials for eco-tourism.

 

XVI.          NON-GOVERNMENTAL ORGANIZATIONS (NGOS)

Mr. Speaker, Sir,

172. Non-Governmental Organizations continue to be dependable partners in our development efforts. Their interventions cut across a host of issues ranging from enhancing food security and promoting health, to education and advocacy. All these are directed towards the alleviation of poverty.

 

173. Of the 95 registered NGOs (36 International and 59 Local), 61 are members of TANGO. We will strive to provide the enabling atmosphere for their continuous growth and expansion, and where necessary, we will continue to collaborate with TANGO to coordinate their activities for maximum synergy effect.   In recognizing TANGO as the umbrella for all NGOs, Government urges non-registered NGOs to endeavour to do so for credibility reasons.  At the same time, all NGOs are challenged to streamline their activities in line with Government’s policies and programmes so that a more coherent and meaningful strategy for poverty reduction can be attained.

 

XVII.         GOVERNANCE ISSUES

174.                      The Good Governance Policy and Programme under the auspices of the Office of The President, charts out a path towards a more transparent and accountable government that promotes informed and meaningful participation of all residents in economic development and in fair political decision making process. The National Good Governance Policy and Programme therefore, has an all encompassing and relevant approach to social, economic and political progression.

 

175.                      Mr. Speaker, Sir, I am pleased to inform this august gathering that Government and GGC\Alimenta made a breakthrough in the negotiations in respect of the take over of the ex-GGC assets.  The breakthrough was achieved in October this year, and Alimenta has agreed to a full and final settlement amounting to US$11.4million, in respect of the take-over, namely covering the un-contested past debts, the machinery, plant, equipment and barges including, the properties which will now revert to Government and loss of income. Once payment is completed within the agreed time-frame, or, upon the issuing of an irrevocable bank guarantee the latter will formally withdraw from the on-going arbitration. The agreed quantum has been reflected in the 2000 Budget and the 2001 Budget as a special line item as, its financing is expected from donor assistance.

 

176.                      Please permit me, Mr. Speaker, to take this opportunity to reiterate Government’s commitment to ensuring the smooth and successful marketing of this year’s crop. In this respect and, in order to consolidate the gains made during this transitional phase 1999\2000 and 2000\2001, Groundnut Operators are encouraged to play an effective role in this year’s bumper crop, in keeping the promise of no credit buying. Operators are therefore informed that in line with the framework of agreement, Government will ensure access to the ex-GGC assets and facilities to all Operators working within the ASPA membership. Mr. Speaker, Sir, in line also with Government’s divestiture programme, the facilities will be part of the assets to be divested in 2001.

 

177. Mr. Speaker, we have also seen the inauguration of the new Supreme Court and the office of the Ombudsman - all watershed developments in the legal sector. It is however urgent to mention that the delay in the Local Government Reform and Decentralization process is impacting negatively on some of our poverty reduction efforts.

 

178.                       On the verge of the implementation of the programme, the political will, so far, has been demonstrated in many respect by the Office of the President. Therefore, while urging the continuance of best practices, we implore our partners in development to continue their observance and support of the policy and program, as a sustainable approach to economic growth and poverty alleviation.

 

 

XVIII. Projections for Year 2001

Mr. Speaker,

i.    Revenue

179.                      Given the new tariff reduction and the significant improvement made to the Pre-Shipment Inspection, coupled with improvement in the efficiency of tax administration and compliance, revenue prospects look promising. Revenues and grants are projected at D1386.25m for the year 2001. Tax revenue is expected to be D1006.1m, and of this amount direct taxes will account for D242.6m, while indirect taxes will account for D763.45m. Non-tax revenue is targeted at D168.6m while grants are projected to rise by 8.3% from D131.3m in 2000 to D142.2m.

 

 

ii.   Expenditure

180.                      Total Expenditure is expected to be D1418.61m in 2001. Current expenditure is projected to increase by 14.65%, from D965.2m in 2000 to D1106.61m in 2001. The composition of this item is D320.8m of wages and salaries, D158.8 in other goods and services, D414.2 in debt service charges and 147.5m in subsidies and current transfers. According to the development budget estimate, Capital Expenditure will rise by 18.3%, from D383.9m in 2000 to D454.2m in year 2001. From the capital expenditure figure, grants are expected to be D142.2m, loans figure to equal D251m and GLF is expected to be D61m.

 

181. One of the main objectives of fiscal policy is to reduce the size of the fiscal deficit. Excluding grants, fiscal deficit as a percentage of GDP is projected at 3.01% and 0.56% if grants are included.

 

 

iii.        Revenue Measures

Mr. Speaker, Sir,

182. The achievements of the above objectives will necessitate a comprehensive reform programme prominent among which, would be to improve revenue administration while bearing in mind all implications on the private sector.  In this light, the proposed revenue measures for Year 2001 are as follows:

 

183.                      The Custom and Excise Department in collaboration with the Department of State for Finance and Economic Affairs, have reduced the rates of duty effective July 2000. The objective is to bolster our competitive position in the sub-region. In the same vein, the maximum tariff rates have been slashed from 20% to 18%.

 

184.                      In order to increase compliance especially within the domestic business community, all custom clearing and forwarding agents will from the 1^st of January 2001, submit formal application to the Director General of the Customs and Excise Department and must meet the minimum requirement to be registered. All those granted approval to operate must also register with the Sales Tax Unit and pay 10% of their monthly earning as sales tax.

 

185.                      Our revenue enhancing measures this coming financial year aim at removing those constraints that seriously undermined our tax collection efforts at the Central Revenue Department (CRD) in the recent past, as well as introduce reforms and structures that have proven to be very instrumental in our drive for increased collection.

 

186.                      Structures to be introduced include additional Tax Collection Units in the rural areas, a semi-autonomous Revenue Board and the establishment of a network with sister departments of Customs and Excise, Lands office, the Registrar of Companies and the Immigration Office, in a bid to improve access to information and strengthen transparency and accountability in tax assessment and collection.

 

187. Self-assessment system will be introduced to companies in 2001 as a start up to implement self-assessment system to all categories of taxpayers in future.

 

188. The Tenancy Agreement is reduced from 40.05% of the amount to 20%.

 

189. Duty waiver application forms will be sold as follows:

 

NGOs                                                                           D750.00

Non-Governmental Health Facilities/Institutions             D500.00

Non-Governmental Agricultural Institutions                                D500.00

Hotels                                                                                      D500.00

Public Enterprises                                                                     D700.00

All Others (excluding Un Agencies, Diplomatic

Missions, and Government Departments)                                  D200.00

 

Revenues from the sale of these duty waiver forms are to be paid to the Accountant General’s Department where the forms will be lodged.

 

190. Application forms for Pools Betting and Gaming will be also be increased from D500 to D1500 for casinos and from D250 to D1000 for Gaming and Amusement.

 

191. Revenue Tax on Cigarettes is reduced from D80 per kilogram to D35 per       kilogram and the environment tax from D13.02 per kilogram to D10 per kilogram.

 

192. Revenue Tax on Imported Beer is also reduced from D25 per Litre to D15 per Litre.

 

193. Expatriate tax has been reduced from D30,000 to D20,000.

 

194. All computers and accessories will be zero duty rated.

 

195. Finally, the rate of duty on sugar is reduced from 10% to 5% with effect from 1^st of January 2001

 

XIX.    CONCLUSION

Mr. Speaker,

196. Our objectives cannot be over ambitious given the prevailing opportunities offered by current developments within the economy, the sub-region and on the global front. Increasing political participation has engendered accountability and new development discourse that allows for a wider section of the society to participate in designing the routes out of poverty. The emergence of trade in the sub-region also provides additional potential for expanded primary as well as secondary production. On the global front, the advent of information technology has brought to us opportunities in globalization and economic cooperation.  These opportunities will be fully exploited by Government, in the interest and benefit of the people.  This way, we can be sure to reduce poverty and bring about the necessary growth for our socio-economic advancement.

 

197. The reform efforts made so far did not address the issue of poverty alleviation warranting the need to focus on program success based on income as well as social indicators. With the re-orientation of the ESAF to PRGF, the issues of poverty will feature very prominently and will become a priority in budget formulation and implementation.

 

198. The key element of the pro-poor growth strategy is to make the poor take control of their own destiny by providing them with the wherewithal and stimulating the right atmosphere. This comprises among other things, raising the productivity of small-scale agriculture, promoting micro-enterprises and the informal sector, and emphasising labor-intensive industrialisation to expand opportunities, and promoting economic activities in the rural areas.

 

199. To take advantage of these opportunities, Mr. Speaker, we have to strengthen our governance environment, invest in our manpower resources and provide the atmosphere for private sector participation and competitiveness. The good governance program is viewed in the light of the fact that, it is bound to bring the majority of the people closer to the organs and structures of government that make decisions which governs their lives, and by so doing afford them the opportunity to participate and influence such decisions.

 

200.                      The task we set for ourselves is formidable, which is why we solicit the support and cooperation of all stakeholders –private sector actors, the NGOs, development partners, and Community-Base Organisations (CBOs) alike in this noble campaign. Our responsibilities center around instituting a good governance environment, groom a well trained, skilled, healthy and versatile citizenry to respond to the challenges and pre-requisites for forstering effective decentralisation and a flourishing private sector, and an increasingly competitive and diversified economy.

 

201.                      In conclusion, Mr. Speaker, Sir, our greatest challenge however, lies in our attitude of indifference and self-alienation from government policy, usually resulting in only a partial success of programs, designed for the general citizenry and, the poor in particular. We must not shy away from challenges and view government policy as belonging to government alone.  I would therefore, with humility, submit that the advancement of the Gambian people in winning the fight against poverty would be much easier if approached with our collective will and effort. I am reminded of the saying of an American writer who said…Quote “ You cannot be held responsible for your feelings, but, for what you do with them” end of quote. The lesson, Mr. Speaker, Sir, is that the interest of our citizenry transcends, all divisions, differentiation and distinctions. Our success, therefore, in achieving the objectives of poverty reduction and growth, lies in our own hands, collectively. We will earn it, only if we move closer to each other, to collaborate and not to contemplate, and to strife top meet the challenges, together.

 

202. I thank you all for your attention, Mr. Speaker, I beg to move.