GLOBAL RECESSION AND THE GAMBIA

The Implications of The Global Recession for The Gambia bY SUNTOU TOURAY
Whether our government acknowledge it or not, the remittances to the Gambia help sustain countless of families. The fact is that, our economy as machinery is not mature enough to be affected by the global financial down turns destabilising developed nations at present. This is so because the tools employed by multinationals banks and financial intermediaries have no place in our economy. Financial products like Hedging, Swaps, Derivatives, Securitisation of bonds etc, cannot be practice at large scale in the Gambia. We lack the capital market facilities to intermediate between fund providers and borrowers. These inabilities make us immune from facing the full brunt of the recession affecting all developed nations.
The Domino Effect of the Financial Crisis:
Even though The Gambian economy from the government perspective will not be affected by the financial crisis, what we cannot avoid though are the indirect effects of global recession. The prices of imported goods will rise and this will directly affected all consumers.
The most vulnerable area of the global financial crisis for the Gambia and Gambians will be the reductions of aggregate remittances to the country. Gambians like other third world countries rely heavily on remittances from the developed countries. The remittances help families cater for their daily bread and other expenditures and leisure.
Citizens and residence in the developed nations are cutting spending and trying hard to save. The daily unprepared job loses affecting every sector of the developed economies will also include Gambians in the unfortunate debacles. The fear of job lose and the actual job lose makes people unable to undertake the extra responsibilities once carried out with ease. The reduction in remittances will translate into; families back home unable to afford basic necessities such as food, electricity, medicine, school fees, petrol and many other items.
For now, many will carry on doing what they do best, that is look after their kit and kin. The slowing of remittances also will impact on the overall spending in our economy. Credible sources had it that the bulk of Gambias civil servants who are the backbone of our country are heavily indebted through loans and overdraft mainly.
The Plight of Gambian Civil Servants:
Many Gambians aspire to work in the civil service as a show of patriotism and decent way to earn a livelihood. But in reality, the civil service was always a place to make ends meet in a very difficult way. The majority of civil servants fall within the grade 7 plus salary bracket. This translate in real terms to mean, they earn just over D2500 to D3000 (dalasis). This men and women have huge ratio of dependency and other commitments. The average house rent for a man and family will be D700 per month, excluding bills. A bag of rice now cost D800 plus. The basic ingredients for a house for a month can reach up to D1000. The amounts stated above exclude transport fares, school fees for kids, medical bill, electricity and water etc.
The salary is so low; civil servants have device new ways to make their life bearable. They open an account with local shop keepers, the shop keeper give them items required on daily basis and records the amounts. At the end of the month, nearly half of the salaries go to the shop keepers. Before the middle of the month, the civil servants will come back to the shops to buy on credit. This cycle continuous unending.
Those are the lucky civil servants because they at least expect something decent at the end of the month. What about the ones below the D2000 bracket? How do they go about taking care of their obligations? Yet we talk about eradicating corruptions! The root cause is poor pay levels and dis-incentives.
The top level civil servants are those in grade 11 salary bracket. These include directors, permanent secretaries, and other high level government employees. They earn over D7000 per month. Yet even this people needs the extra cash to make their position match their spending power.
The biggest income agent in the Gambia is evidently agriculture. It is the industry that majority of citizens are engaged in. This year’s forecast for groundnuts is not good, the prices are said to be low.
The next biggest economic agent is our ports authority. The strategic location of the Gambia makes the ports a major transit point for many goods across the globe. The third economic agent is none other than remittances. The commitment that Gambians abroad show to their country is immense. If that is not patriotism I don’t know what? The magnificent houses, the many Hajj trips, the helping of relatives, the donations to hospitals and schools, the funding of political parties etc. This is the legacy of Gambians abroad to their people back home.
The threat to jobs in the developed world will impact negative on the people back home. The availability of foreign currency in Gambians banks will be affected. Less people will be travelling on holiday from among Gambians and even among the regular tourist sector.
In these hard times, what is it that Gambians back home demands? From an observer’s point of view, it is paramount that the government take politics out of the civil service. Civil servants should feel secure in their jobs without fear of political victimisation. The salary is too low for the hassling and haranguing by APRC stalwarts.
Gambians abroad also demand the government respect their efforts and love for the Gambia. Political differences shouldn’t translate into branding us enemies of the state and label unpatriotic. We all help in building that country, if nothing; the government should stop harassing decent innocent citizens who express alternative views about the conducts of the government. What is democracy without the forum to express divergent views? No wonder Kaddafi call some democratic countries, “disguised dictatorships”.
Let unity, prosperity and faith in one God guide our actions. The Gambia where we all have in common. Fear rule should be a thing of the past. I pray that the global down turn leave us unscathed and that we come out it strong and vibrant.