## _cr06396 ## Source details **Canonical URL:** [_cr06396](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06396.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06396.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06396.pdf.json) --- ### Foreword - Period covered: January to December 2004 (second progress report on SPA II implementation). - Purpose: - Bring together progress in operationalizing SPA II concentrating on key programmatic areas, reform measures called for by the strategy and resource mobilization efforts. - Identify strengths, weaknesses, threats and opportunities. - Act as a trigger on the road to completion of the year of SPA II implementation; help government and partners focus on promises and anticipated actions in SPA II priority areas; contribute to focusing budgetary allocations and pro-poor policies. - Noted challenge: transforming policy ideas into action during a period of limited financial and human resources. - Conclusion: "significant progress was registered under the year review 2004." - Signed: MOUSSA GIBRIL BABA_GAYE, Secretary of State for Finance and Economic Affairs. ### Introduction and Poverty Monitoring - Coverage and role: - Report tracks achievements and shortfalls between January and December 2004 against poverty targets, priority public actions, and monitoring and evaluation systems for PRSP/SPA II. - Takes stock of eighteen months of implementation; outlines constraints and necessary policy reforms and programmatic actions. - Statistical data constraints: - National Household Poverty Study (2003) results not yet available. - 2003/04 Integrated Household Survey (IHS) in final data processing; interim poverty rates (January 2005 preliminary analysis): - Using 1992/93 poverty line: 54% - Using 1998 household survey poverty line: 74% (contrast to 1998 NHPS computed rate of 59%) - Final IHS results expected before end-2005; IHS expected to update national accounts, CPI benchmarks and compute a new poverty line. - Poverty monitoring actions: - Analysis of poverty-reducing public expenditure for two halves of 2004 undertaken; poverty reducing expenditure report compiled. - Multi-Sectoral Participatory poverty assessment undertaken. - Key PRSP performance indicators (selected): - Poverty head count index: Baseline (2002) 47%; 2003 47%; 2004 N/A; Target (2005) 39% - Prop. below Food poverty line: Baseline (2002) 30%; 2003 30%; 2004 N/A; Target (2005) 24% - Inflation rate: Baseline (2002) 8.0; 2003 17.03; 2004 N/A; Target (2005) 4% - GDP growth: Baseline (2002) 4.0; 2003 7.1; 2004 N/A; Target (2005) 5.0 - Gross Enrollment — Lower Basic: Baseline (2002) 85%; 2003 90%; 2004 91%; Target (2005) 90% - Infant Mortality Rate: Baseline (2002) 84/1000; 2003 84/1000; 2004 N/A; Target (2005) 60/1000 - Total Population (2003): 1,360,681; Percentage Female (2003): 51%; Population Density (2003): 127 per km2 - Population Growth Rate: Baseline (2002) 2.8 %; 2003 2.1% ; Target (2005) 2.1% ### Macroeconomic Performance (2003–2004) - Overview: - 2003: fiscal and exchange rate crisis peaked in 2001 brought under control in last quarter of 2003. - 2003/04 bumper groundnut harvest boosted GDP. - Macroeconomic policy in 2004 was tight and supported by strong revenue mobilization. - Key outturns and targets: - Real GDP growth: Outturn 6.9 (2003); Outturn 5.1 (2004); PRSP Targets 6 (2003), 6 (2004), 6.2 (2005). - Annual inflation: Outturn 17.6 (2003); Outturn 8 (2004); PRSP Targets 4 (2003), 3 (2004), 3 (2005). - Fiscal deficit (excluding grants) as % of GDP: Outturn -7.2 (2003); Outturn -10.2 (2004); PRSP Targets 2.7 (2003), 2.3 (2004), 1.9 (2005). - Current Account Deficit (excluding grants) as % of GDP: Outturn -13.6 (2003); Outturn -21.6 (2004); PRSP Targets 12.3 (2003), 11.6 (2004), 10.3 (2005). - Gross Official reserves (months of imports, c.i.f): Outturn 4.6 (2003); Outturn 4.3 (2004); PRSP Targets 5.2 (2003), 5.4 (2004), 5.5 (2005). - Broad Money Growth: Outturn 43.4 (2003); Outturn 18.3 (2004); PRSP Targets 9.9 (2003), 9.6 (2004), 9.6 (2005). - Main contributors to weak performance: - High public expenditure outturns from 2002 increased money growth, inflationary effects and domestic debt burden. - Domestic debt erodes poverty-reducing expenditure; improvement expected by end-2005 with public expenditure management reforms. ### Fiscal Policy and Public Resource Management - Budget context and assumptions (2004): - 2004 budget emphasized poverty reduction but increased statutory payments (debt obligations) constrained allocations. - Budgeted real GDP growth 6%; projected deficit about 10.1% of GDP. - 2004 budget estimates total revenue and grants at D2581.55 million (including project grants), about 24% of GDP. - Total revenues and grants projected to grow by 38% from the 2003 approved budget of D1.87 billion to D2.58 billion in 2004. - Total domestic revenue estimated at D2.2 billion or about 20% of GDP. - Revenue composition and changes: - Table 1.2 — Source of Revenue (Dalasis): - Tax Revenue: 2003 Appr Est 1,342,627; 2004 Appr Est 1,933,278; % Share 73.5% (2003) 88.4% (2004); % Change 44.0% - Non-Tax: 2003 158,573; 2004 254,921; % Share 8.7% (2003) 11.6% (2004); % Change 60.8% - Non-Project Grants: 2003 325,000; 2004 0; % Share 17.8% (2003) 0.0% (2004); % Change -100.0% - Total: 2003 1,826,200; 2004 2,188,199; % Share 100.0% (2003) 100.0% (2004); % Change 19.8% - Fiscal outturns (Percent of GDP, 2003–2004): - Revenue and Grants: 2003 outturn 18.2; 2004 outturn 25.5. - Domestic Revenue: 2003 outturn 15.7; 2004 outturn 20.9. - Tax Revenue: 2003 outturn 13.8; 2004 outturn 18.6. - Direct Tax: 2003 outturn 4.4; 2004 outturn 5.0. - Tax on International Trade: 2003 outturn 7.3; 2004 outturn 9.1. - Expenditure and Net Lending: 2003 outturn 22.9; 2004 outturn 31.2. - Current Expenditure: 2003 outturn 17; 2004 outturn 16.9. - Capital Expenditure and Net Lending: 2003 outturn 5.8; 2004 outturn 14.2. - Overall balance (commitment basis) excluding grants: 2003 outturn -7.2; 2004 outturn -10.2. - Overall balance (including grants): 2003 outturn -4.7; 2004 outturn -5.7. - Financing — External (net): 2003 outturn 5.7; 2004 outturn 2.7. Domestic financing: 2003 outturn 0.5; 2004 outturn 0.5. - Budget allocations and sector shares (Table 1.3 and Table 2.4): - Sectoral Budget Allocation 2004 (Dalasis’000): - Education: Recurrent 224,276; Development 293,529; Total 517,805; % Shares Recurrent 10.0%; Development 17.9%; Total 13.3% - Health & Soc. Welfare: Recurrent 221,880; Development 164,471; Total 386,351; % Shares Recurrent 9.9%; Development 10.0%; Total 9.9% - Agriculture: Recurrent 47,240; Development 127,985; Total 175,225; % Shares Recurrent 2.1%; Development 7.8%; Total 4.5% - Debt Interest: Recurrent 994,741; Total 994,741; % Shares Recurrent 44.3%; Total 25.6% - Total: Recurrent 2,247,824; Development 1,638,192; Total 3,886,016; % Shares Recurrent 100.0%; Development 100.0%; Total 100.0% - GLF allocated to PRSP expenditure in 2004: 13.2%. - PRSP allocations (approved budget figures): Increased from D230m in 2003 to D380m in 2004. - Proportion of PRSP allocations out of total budget (excluding debt service): Increased from 22% in 2003 to 29% in 2004. - Considering debt service: share of PRSP allocations dropped to 13% in both 2003 and 2004. - Government revenue allocated for poverty reduction interventions: 21.65% of government revenue; PRSP commitment was 25% (target not met). - Public finance management reforms: - IFMIS institutionalization dominated 2004 activities; tendering suspended due to insufficient in-country technical capacity; IFMIS restructured into three phases with first phase targeted by end 2006. - Organic budget law passed by National Assembly in September 2004; general ledger updates for 2002 completed and 2003–2004 work started. - Auditing: auditing of Central Government 1992–99 accounts began in 2004 and submitted to National Assembly for discussion in June 2005; auditing extended into 2005 for backlog. ### Monetary Policy and Debt Dynamics - Monetary aggregates and reserves: - Broad money growth: 43% (2003) → 18% (2004). - Reserve money growth: 63% (2003) → 11% (2004). - CBG net foreign assets increased by D 1,286 million in 2004. - Usable foreign reserves: $81 million by end-December 2004, equivalent to 4.3 months of import cover (c.i.f. merchandise imports $197 million in 2004). - Treasury bill issuance and interest rates: - Total net issuance of TBs during 2004: D 1,103 million (D 570 million by commercial banks; D 640 million by non-bank sector; CBG holdings fell by D 107 million). - Outstanding government domestic debt: D 2,325 million at end-2003 → D 3,415 million at end-2004. - Government domestic debt as share of GDP: 22.6% (end-2003) → 27.4% (end-2004). - Yields and real returns: - Yield on first 364 day TB (beginning January 2004): 31.1%. - Yield on last 364 day TB (30 November 2004): 29.9%. - Ex post real yield on 364 day TB issued at start of 2004: 21.4% (annual inflation fell to 8% by end-2004). - Yield on 91 day TB fell from 30.9% (start October 2004) to 27.4% (end December 2004). - Annualised ex post real yield on 91 day TB issued at start of October 2004: 29%. - Nominal yields on TBs began to decline during 2005. ### Governance, Financial Governance and Structural Reforms - Central Bank audits: - Audits of CBG accounts for financial years 2001, 2002 and 2003 were benchmarks in SMP; late completion derailed SMP approval. - Completion allowed negotiation of a new SMP in 2005; CBG implementing audit recommendations. - Judicial reforms: - Legal Sector Strategy, IT strategy and Court Case Management System (CCMS), and ADR Initiative progressed; ADR bill passed Cabinet; TORs and consultant processes advanced. - Privatisation and divestiture: - Regulatory Framework study completed; Track I public enterprise studies commenced. - Procurement processes initiated for Transport Sector Study and consultant services for redundancy/compensation frameworks. - Negotiations commenced to dispose of 30% of Government’s 40% shareholding in Gambia Cotton Company Ltd (GAMCOT) with majority shareholder DAGRIS. - GAMPOST transformation to autonomous body in progress; financial viability study completed; GAMPOST Bill expected in 2005. - Gambia Groundnut Corporation (GGC) divestiture: Financial Advisors hired; transaction announcement expected March 2005. - Civil service reform: - High attrition noted; World Bank-supported CBEMP study on attrition completed with recommendations pending implementation. - Public enterprise financial viability and staffing constraints persist; insufficient funding for activities not covered under donor projects; staff attraction and retention highlighted as constraints. ### Agriculture and Natural Resources - Sector importance and policy: - Agriculture employs 75% of the population and contributes 30% of GDP. - Government strategy: public sector in catalytic role; private-public partnership framework; priorities include water control, natural resource management, research & extension, rural finance/micro-finance. - Crop production (Table 3.1, 0000s of tons): - Groundnuts: 2003 = 92.9; 2004 = 135.9; % Change = 46 - Sesame: 2003 = 1.2; 2004 = 1.4; % Change = 11 - Maize: 2003 = 33.4; 2004 = 29.2; % Change = -13 - Early Millet: 2003 = 107.1; 2004 = 116.0; % Change = 8 - Late Millet: 2003 = 13.2; 2004 = 16.5; % Change = 25 - Sorghum: 2003 = 30.1; 2004 = 29.0; % Change = -13 - Upland Rice: 2003 = 9.8; 2004 = 12.4; % Change = 26 - Swamp Rice: 2003 = 8.2; 2004 = 8.7; % Change = 6 - Irrigated Rice: 2003 = 11.5; 2004 = 11.5; % Change = 0 - Total Production: 2003 = 213.3*; 2004 = 222.9*; % Change = 41* (*Groundnut and Sesame not included) - Groundnut trade and marketing: - Private sector operated 43% of buying points (30); government (Cooperative Department) operated 57% (39). - Combined purchases by Cooperative and private dealers: 24% (31,500) of 135,000 tons produced in 2004; 103,000 tons (76%) retained as seed, weekly markets, cross-border trade, auto consumption, etc. - Cooperative-operated buying points made an accumulated loss of thirteen million Dalasi (D13, 000.000) repaid to GAMCO. - Irrigation and infrastructure: - 3,654 meters of dikes constructed; 8,970 meters upgraded/repaired; 1,050 meters of spillways constructed/maintained/repaired. - 5,289m of causeways and 768m of foot bridges constructed across creeks. - Planned ploughing 1,000 hectares in 15 villages; actual ploughed 264 hectares in 13 villages due to LADEP phasing out. - Inputs, seeds and private provision: - Government supplied about 4000 tons of fertilizer; about 520 tons of groundnut seeds supplied (farmers bought only about 32 tons due to poor seed quality). - 7,740 tons of seeds planted in 313,265 hectares during 2004 cropping season (NASS 2004). - Main sources of seed (ha): own produced seeds 196,188 ha; other farmers 17,669 ha; NGO 7,316 ha; Cooperative 1,734 ha; Government assistance 5,796 ha; traders 27,845 ha. - Livestock and agro-processing: - Fisheries production for 2004: 44,000 metric tones; artisanal fisheries produced 75% of landings; sector employs over 60,000 (over 90% in artisanal/small-scale fisheries). - Veterinary disease control: Vaccination primary strategy; disease control policy produced. - Food and Nutrition Unit activities: farmer training in processing/preservation; recipes developed; solar drying training in 4 villages. - Agricultural research and diversification: - NARI adaptive research: sesame variety 32-15 under multiplication; five groundnut cultivars evaluated; NERICA demonstrations in all six Agricultural Divisions. - Livestock production improvements: 250 farmers trained; broiler and layer production units established. - Agricultural credit and rural finance: - Projects (RFCIP, PSIP) established credit schemes managed by SDF, GAWFA, NACCUG, NASACA; NBFIs licensed by Central Bank; lending via VISACAs. ### Trade, Industry, Employment and Private Sector Development - Trade policy and AGOA: - National AGOA committee set up; AGOA resource centre at GCCI; backup support at GIFPZA. - DOSTIE with WTO Secretariat finalized The Gambia’s first Trade Policy Review (February 2004). - Competition, standards and regional trade: - Competition policy and law drafted; Consumer Protection Act and Standards & Quality Control Policy drafted. - National impact assessment on CET indicates positive long-run effect; EPA studies commissioned with Commonwealth Secretariat and EU. - Employment and labour: - Institutional mechanisms for National Employment Policy and Action Plan being implemented; funding constraints limit full implementation. - Two Industrial Tribunals established in Banjul and KMC in 2004. - Investment promotion and GIPFZA outcomes (September 2002 to September 2005): - 28 new firms established; Total investment value US$ 81.04 million; Jobs created: 1845 direct and indirect. - Customs processing time reduced to 24 hours (target 48 hours). - Exports in horticultural produce and fish products to UK markets increased significantly. - Foundation stones laid for Flourmill Company (US$ 12million) and a Petroleum storage facility. - SMEs and industrial development: - National SMEs policy finalized in 2004. - Agro-food processing strategy developed; training centre for agro-food processing established at Banjulinding Women Horticultural Garden. ### Basic Social Services — Education and Health - Education — policy and coverage: - New Education Policy (2004 – 2015) aims to provide quality basic education for all. - Five PRSP priority areas for DoSE: Access, Quality, Teaching & learning materials, Non-formal education, Skills training. - Gross Enrolment Ratio (GER) — Lower Basic including Madrassa: 85 (2001/02), 90 (2002/03), 91 (2003/04), 91 (2004/05). - GER — Upper Basic including Madrassa: 66 (2001/02), 72 (2002/03). - Female enrolment indicators (selected): % of female enrolment excluding Madrassa: 48, 49, 50, 51 (selected years). - Education inputs and teacher training: - Gambia College intake to PTC for 2004: 170 (300 short of projected 470 for 2004 and 130 short of the 300 agreed in IDA Credit Agreement). - Expected graduates 2003-2004: 227 PTC and 262 HTC; admission when cohort enrolled: 374 PTC and 332 HTC (indicates significant attrition). - Textbook provision target: increase from 2:1 to 1:1 by end of policy period. - National Assessment Test (NAT) finding: in all subjects at least 90% of students did not reach mastery level of 73%. - Non-formal education and adult literacy (end-2004): - 260 literacy facilitators trained (50% female); 244 literacy classes functioning; average enrollment 35 learners per center; women represent 90% to 95% of learners. - Over 43,800 literacy primers and 430 facilitators’ guides printed and distributed. - Health — access, indicators and services: - Health policy target: all communities within 5km to nearest health facility. - Economic access: RCH services and family planning free; consultation charged D5.00; diagnosis/lab investigations usually D10.00 for Gambians. - Reproductive and child health indicators (MMR/CPR Survey – 2001): - Maternal Mortality Ratio (MMR): 730/100,000 live births. - Infant Mortality Rate (IMR): 84/1000 live births. - Under-five Mortality Rate (UMR): 135/1000 live births. - Contraceptive Prevalence Rate (CPR): 17.5% (modern 13.4%, traditional 4.1%). - Total Fertility Rate (TFR): 6.04. - Micronutrient survey 2000: iron deficiency anaemia prevalence — 91% of children 0 – 59 months, 78% of pregnant women, 58% of lactating mothers. - Reported disease cases (selected): - Malaria: 27,706 (2002); 21,011 (2003); 75,897 (2004). - Tuberculosis: 387 (2002); 494 (2003); 20 (2004). - HIV/AIDS prevalence (age 15-49): HIV1 1.4% (2002); 1.5% (2003); 2.1% (2004). HIV2 1.0% (2002); 1.0% (2003); 0.8% (2004). - Immunization and EPI (2004): - Measles first round: 92%; Vitamin A: 83%. - Administrative cumulative coverage Jan–Jul 2004: DPT/HIP 3 coverage 97.31% in 2004. - Selected immunization coverage: HB3 94.9%; MEASLES 89.7%; Fully Immunized Under 1: 75.4%; Fully Immunized Under 2: 83.1%. - Availability of drugs: about 95% of all essential drugs available in major/minor health facilities. ### Social Protection, Cross-cutting Issues and Environment - Social protection: - 660 destitute persons benefited from relief assistance fund. - HIPC funds disbursed to disabled organizations (estimated D400,000); seventeen (17) disabled persons benefitting from HIPC fund for income generating activities. - HIV/AIDS response (2004–2008 Global Fund project): - Project period: September 2004 to October 2008. - Project goal: provide treatment, care and support to PLWHAs; expand access to VCT, PTCT, OI prevention/treatment, ART, Community Home Based Care. - Challenges: weak coordination, inadequate human resources, limited data on high-risk groups. - Actions needed include legalising NAS, mainstreaming HIV/AIDS into national programs, improving HR training/retention, creating government budget line for NAS, expanding VCT in rural areas. - Gender and youth: - Women’s Bureau shifted to coordination; micro-credit, skills and literacy interventions expanded; Presidential Empowerment for Girls Education Project supported girls’ access. - Youth: mainstreaming youth into PRSP being developed; National Enterprise Development Initiative (NEDI) trains youths in basic business skills; NEYC trained 465 youths in 26 groups with average earning D3000 in 2004 (NEYC under Environment section). - Environment and nutrition: - NEA coordinates GEAP and MEA implementation; Coastal Protection Project completed in 2004. - Nutrition: National Vitamin A Supplementation Programme ongoing; 52% of children 6–59 months received at least one dose during MCH services; 91% received vitamin A during NIDs. - National household consumption of iodized salt (2003) — The Gambia: 13.3% (regional breakdowns provided). ### Conclusions, Constraints and Way Forward - Long-term SPA II goal: eradicate poverty by significantly increasing National Income through stable economic growth and reducing income and non-income inequalities via priority interventions. - Major constraints identified: - Budgetary financing and debt: high cost of servicing rising government debt stock consuming more than half of government resources; PRSP commitment to utilise 25% of budgeted GLF revenue for poverty reduction not met (actual 21.65%). - Institutional delays and ownership: delays in institutional framework formation; progress on Unified Funding Framework (UFF) and Aid Coordination Unit underway. - Human resource scarcity and capacity constraints: high attrition, weak absorptive capacity, sector investment programmes undeveloped, non-existent linkages between sector policy and budgets. - Progress on SPA II Action Plan (2003–2005) — selected outputs and status: - Memorandum of Economic and Financial Policies for 2003–2005 produced; Staff Monitored Program being implemented. - Aid Coordination Unit established at DOSFEA; expected operational by early 2005. - DOSE SWAp finalised and being implemented; Health PER update and DOSA PER update planned. - Public Utilities and Regulatory Authority established and gradually operational. - Road infrastructure expanded via external financing; PER for infrastructure completed. - Poverty Monitoring Strategy finalised and validated in 2003; capacity assessment for PMS effected; funding discussions with UNDP ongoing. - The Way Forward — core priorities: - Accelerate implementation pace in last year of PRSP cycle and next PRSP. - Enlarge and intensify stakeholder participation in PRSP implementation and monitoring. - Address capacity gaps at policy, sector and LGA levels caused by skills shortages, weak systems, high civil service attrition and slow decentralization. - Critically review implementation and incorporate lessons learnt. *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### Foreword 4 ### Foreword ### Foreword summary - This is the second progress report covering the period of SPA II implementation; January to December 2004. - The report brings together progress in operationalizing SPA II concentrating on key programmatic areas, reform measures called for by the strategy and resource mobilization efforts. - The report identifies strengths, weaknesses, threats and opportunities. - Noted challenge: transforming policy ideas into action during a period of limited financial and human resources. - Despite constraints, "significant progress was registered under the year review 2004." - Purpose: act as a trigger on the road to completion of the year of SPA II implementation; to help government and partners focus on promises and anticipated actions in SPA II priority areas; to contribute to focusing budgetary allocations and pro-poor policies. - Signed: MOUSSA GIBRIL BABA_GAYE, Secretary of State for Finance and Economic Affairs. *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### Acronyms and abbreviations (selected from source) - ADB: African Development Bank - ANR: Agriculture and Natural Resources - BADEA: Bank for Economic Development in Africa - CBEMP: Capacity Building For Economic Management - CBO: Community Based organization - CDD: Community Driven Development - CFAA: Country Financial Accountability Assessment - CPI: Consumer Price Index - CSD: Central Statistics Department - CSIP: Community Skills improvement Programme - CSO: Civil Society organization - DFID: Department For International Development - DOSE: Department of State for Education - DOSFEA: Department of State For Finance and Economic Affairs - DOSLG: Department of State for Local Government and Lands - EMCBP: Economic Management Capacity Building Project - EMPU: Economic Management and Planning Unit - EPI: Expanded Programme on Immunization - EU: European Union - FASE: Fight Against Social and Economic Exclusion - GCCI: Gambia Chamber of Commerce and Industry - GDP: Gross Domestic Product - GGC: Gambia Groundnut Council - HILEC: High level Economic Committee - HIPC: Highly Indebted Poor Countries - IDSC: Inter-Departmental Steering Committee - IFMIS: Integrated Financial Management Information System - ILO: International Labour organization - IMR: Infant Mortality Rate - LGA: Local Government Authority - MMR: Maternal Mortality Rate - MOU: Memorandum Of Understanding - MTEF: Medium Term Expenditure Framework - MTEP: Medium term Expenditure Plan - NACP: National AIDS control Programme - NEA: National Environment Agency - NEFCOM: National Emergency Fiscal Committee - NGO: Non Government organization - NPCS: National Population Secretariat - PEMU: Programme Evaluation and Monitoring Unit - PER: Public Expenditure Review - PHC: Primary Health Care - PRGF: Poverty Reduction Growth Facility - PRSP: Poverty Reduction Strategy Paper - RDS: Rural Development Strategy - SDF: Social Development Fund - SPA: Strategy For poverty Alleviation - SPACO: Strategy for Poverty Alleviation Co-ordination Office - SPP: Strategy Planning Process - TVET: Technical, Vocational Education and Training - U5MR: Under-five Mortality Rate - UNAIDS: United Nations AIDS Programme - UNDP: United Nations Development Programme - UNICEF: United Nations children’s Fund - VDC: Village Development Committee - WDC: Ward Development Committee - PMO: Personnel Management Office - PURA: Public Utility Regulation Authority - SSHFC: Social Security and Housing Finance Association - GPA: Gambia Port Authority - GIA: Gambia International Air land - GPTC: Gambia Public Transport Cooperation - GCAA: Gambia Civil Aviation Authority - MSA: Management Service Agency - DOST: Department of State for Trade - NERICA: New Rice for Africa - GAWFA: Gambia Women Finance Association - NACCUG: National Association of Corporative Credit Union of The Gambia - GAM-SEM: Gambian for Self Employment - UNCCD: UN Convention to Combat Desertification - GABECE: Gambia Basic Education Certification Examination - ECD: Early Childhood Development - AGOA: Africa Growth and Opportunity Act. - DSW: Department of Social Welfare - NAYAFS: National Youth Association for Food Security - AFET: Association of Farmers Entrepreneurs and Traders - WASDA: Wuli and Sandu Development Association - IBAS: Indigenous Business Advisory Service - VISACA: Village Savings and Credit Association - H/H: Household - IHS: Integrated Household Survey - IMF: International Monitory Fund - KMC: Kanifing Municipal Council - MDG: Millennium Develop Goals - PPA: Participatory Poverty Assessment - MA & D: Market Analysis and Development - JFMP: Joint Forest Management Programme - CF: Community Forest - RP: Reproductive Health *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### Chapter 1 — Introduction ### 1.1 Overview - Report covers achievements and shortfalls between January and December 2004 against poverty targets, priority public actions, and monitoring and evaluation systems for PRSP/SPA II. - Highlights changes needed in strategy in light of implementation experience, exogenous changes, and new data and analysis. - Serves as main government document on implementation status, aimed at informing domestic stakeholders and partners. - Takes stock of eighteen months of implementation; outlines constraints and necessary policy reforms and programmatic actions. ### 1.2 Poverty Monitoring - Availability of statistical data is a major problem; results of the National Household Poverty Study (2003) are not yet available. - The 2003/04 Integrated Household Survey (IHS) is in final data processing; an interim poverty rate from preliminary analysis was produced in January 2005. - Two interim poverty rates produced using poverty lines from past surveys: - Based on 1992/93 poverty line: 54% - Based on 1998 household survey poverty line: 74% (contrast to 1998 NHPS computed rate of 59%) - The unexplained gap suggests possible weaknesses in methodological approaches of past surveys; the 2003 IHS analysis is expected to conduct an in-depth assessment. - Final IHS results expected before end-2005. - The IHS is expected to update benchmark data for national accounts and CPI and compute a new poverty line. - An analysis of poverty-reducing public expenditure for the two halves of 2004 was undertaken and a poverty reducing expenditure report compiled. - A Multi-Sectoral Participatory poverty assessment including stakeholder assessment of awareness of PRSP programmes and effects on livelihoods was undertaken. - Sector output data continue to be produced (annual agricultural sample surveys, health and education statistics). ### PRSP Key performance indicators (Table 1.1) — selected figures preserved exactly - SPA II Objective: Improving the Enabling Policy Environment to promote growth and Poverty Reduction. - Poverty head count index: Baseline (2002) 47%; 2003 47%; 2004 N/A; Target (2005) 39% - Prop. below Food poverty line: Baseline (2002) 30%; 2003 30%; 2004 N/A; Target (2005) 24% - Inflation rate: Baseline (2002) 8.0; 2003 17.03; 2004 N/A; Target (2005) 4% - GDP growth: Baseline (2002) 4.0; 2003 7.1; 2004 N/A; Target (2005) 5.0 - SPA II Objective: Enhancing the Productive Capacity and Social Protection of the Poor and Vulnerable. - Average annual HH income: Baseline (2002) D 4,073; 2003 N/A; 2004 N/A; Target (2005) N/A - Agriculture share (%) of GDP: Baseline (2002) 25.8%; 2003 27.8%; 2004 N/A; Target (2005) 35% - Production & productivity of major crops: Details in agric. section - SPA II Objective: Improving Coverage of the Unmet Basic Needs of the Poor. - Gross Enrollment rates — Lower Basic: Baseline (2002) 85%; 2003 90%; 2004 91%; Target (2005) 90% - Gross Enrollment rates — Upper basic: Baseline (2002) 66%; 2003 72%; 2004 75%; Target (2005) 90% - Infant Mortality Rate: Baseline (2002) 84/1000; 2003 84/1000; 2004 N/A; Target (2005) 60/1000 - Maternal Mortality Rate: Baseline (2002) 7.3; 2003 7.3; 2004 N/A; Target (2005) 6.0 - Literacy Rates: Baseline (2002) 37%; 2003 47.7%; 2004 47.7%; Target (2005) 47.7% - Decentralization objective: - Functional local governance structures (VDC, WDC): Operational in 3 divisions (Baseline, 2003, 2004); Target (2005) Operational in all 8 LGAs - Mainstreaming cross-cutting issues: - HIV/AIDS prevalence: HIV I – 1.4%; HIV II - 1.0%; 2003 1.5%; 2004 1.0%; Target (2005) 1.0 - Malnutrition rate: Baseline (2002) 13.5%; 2003 12.0%; 2004 N/A; Target (2005) 17.0% - Contraceptive Prevalence Rate: Baseline (2002) 9%; 2003 9%; 2004 N/A; Target (2005) 15% - Total Population (2003): 1,360,681 - Percentage Female (2003): 51% - Population Density (2003): 127 per km2 - Population Growth Rate: Baseline (2002) 2.8 %; 2003 2.1% ; Target (2005) 2.1% ### 1.3 Update on the poverty situation - IHS remains in data processing; interim poverty measurements from preliminary analysis (January 2005) produced two rates: - Using 1992/93 poverty line: 54% for 2003 - Using 1998-based IHS poverty line: 74% for 2003 - The difference suggests weaknesses in methodology of past surveys; final 2003 IHS analysis expected before end of 2005 to resolve issue and compute new poverty line. - Long delay in IHS completion has significantly undermined ability to assess progress on poverty reduction. - Central Statistics Department (CSD) faces constraints causing late completion of the survey and other activities; statistical system reform is a key public sector reform issue. - Under CBEMP, CSD is being restructured to a semi-autonomous agency; project strategies include: - Improve organizational structure of SSG to facilitate provision of timely and accurate information; - Upgrade methodology of statistical data collection and compilation to meet domestic users needs and international standards; - Train personnel to improve qualifications and performance, increase exposure and interaction with NSOs of other countries; - Modernize technology for collecting, organizing, processing and disseminating data. - Statistical Act revised and forwarded for Cabinet approval (2005). - A statistical master plan developed; a local donor meeting on the plan was convened and the plan is being costed with UNDP support. ### Inflation (2004) - Consumer price inflation fell sharply in 2004, especially in the final quarter. - Annual inflation fell from 17.6% in December 2003 to 8% in December 2004. - Monthly inflation averaged 1.6% in the final four months of 2003 and averaged 0.1% in the same period in 2004. - Exchange rate stability in 2004 contributed to the fall in inflation. - Macroeconomic outcomes in 2004: - Tight fiscal and monetary policy led to stabilization; CBG rebuilding foreign reserves. - Macroeconomic stance was tighter than programmed; very strong growth in domestic revenues boosted government’s domestic primary surplus to 9% of GDP. - Provisional estimates indicate real GDP growth was 5%, driven by strong growth in groundnut and other crop production. - Concerns: - Real interest rates rose to very high levels. - Bank credit to the private sector contracted in 2004 due to tight monetary policy. - To sustain real GDP growth, it will be essential to reduce real interest rates and increase bank lending to the private sector while maintaining progress in controlling inflation. - Achieving this requires shifting the fiscal-monetary mix with further reduction in government domestic borrowing. ### 1.5 Public Resource Management - The 2004 budget emphasized poverty reduction but increased statutory payments (debt obligations) made this difficult. - Social sectors received highest priority in resource allocations. - Budget assumptions included a 6% real GDP growth rate in 2004, improvement in revenue collections and enforcement, expansions in recurrent expenditure due to high debt service payments and an inflation indexed wage adjustment. - Projected deficit of about 10.1% of GDP. - 2004 budget estimates total revenue and grants at D2581.55 million (including project grants), about 24% of GDP. - Total revenues and grants projected to grow by 38% from the 2003 approved budget of D1.87 billion to D2.58 billion in 2004. - Total domestic revenue estimated at D2.2 billion or about 20% of GDP. - Table 1.2: Source of Revenue (Dalasis) — figures preserved exactly - Tax Revenue: 2003 Appr Est 1,342,627; 2004 Appr Est 1,933,278; % Share 73.5% (2003) 88.4% (2004); % Change 44.0% - Non-Tax: 2003 158,573; 2004 254,921; % Share 8.7% (2003) 11.6% (2004); % Change 60.8% - Non-Project Grants: 2003 325,000; 2004 0; % Share 17.8% (2003) 0.0% (2004); % Change -100.0% - Total: 2003 1,826,200; 2004 2,188,199; % Share 100.0% (2003) 100.0% (2004); % Change 19.8% - Debt service interest is a major budget concern: interest consumes 44.3% of the recurrent budget. - Fiscal discipline and debt sustainability are essential to free resources for poverty-focused programmes. - Agriculture receives the lowest share of allocations in both recurrent and development budgets despite employing more than half of the workforce (dominated by the poor). - Table 1.3: Sectoral Budget Allocation 2004 (Dalasis’000) — figures preserved exactly - Education: Recurrent 224,276; Development 293,529; Total 517,805; % Shares Recurrent 10.0%; Development 17.9%; Total 13.3% - Health & Soc. Welfare: Recurrent 221,880; Development 164,471; Total 386,351; % Shares Recurrent 9.9%; Development 10.0%; Total 9.9% - Agriculture: Recurrent 47,240; Development 127,985; Total 175,225; % Shares Recurrent 2.1%; Development 7.8%; Total 4.5% - Debt Interest: Recurrent 994,741; Development - ; Total 994,741; % Shares Recurrent 44.3%; Development - ; Total 25.6% - Others: Recurrent 759,687; Development 1,052,207; Total 1,811,894; % Shares Recurrent 33.8%; Development 64.2%; Total 46.6% - Total: Recurrent 2,247,824; Development 1,638,192; Total 3,886,016; % Shares Recurrent 100.0%; Development 100.0%; Total 100.0% - Note: Amortization - D578,286 - Government finances almost 97% of the recurrent budget. - HIPC expenditures are higher in the development budget; HIPC allocation D100.0m in development and D69.450m in recurrent. - Donor funding is concentrated on capital expenditure programmes; donor share of expenditures is higher than Government in development budgets. - Based on sectoral breakdown (including debt service), 2004 budget achieved the PRSP target of allocating 25% of resources to priority sectors only when donor funds are included in the budget envelope. *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### CHAPTER 2 ### CHAPTER 2 ### 2.1. Overall macroeconomic performance - 2003 was a turning point: fiscal and exchange rate crisis that peaked in 2001 was brought under control in the last quarter of 2003; monthly inflation rate and the exchange rate stabilized. - A bumper groundnut harvest in the 2003/2004 season boosted GDP and presented an opportunity to pursue budget and financial reform including the MTEF in 2004. - Macroeconomic policy in 2004 was tight and supported by strong revenue mobilization. - Fiscal deficit (including grants, commitment basis) was 5.7% in 2004 compared to 4.7% in 2003. - Fiscal deficit excluding grants rose to 10% of GDP in 2004 from 7.2% in 2003. - Annual inflation rate fell to 8% in December 2004 from 18% in December 2003. - Real GDP growth in 2004 was 5.1%, supported by manufacturing, hotels and restaurants, and Agriculture; many non-traded goods sectors contracted. - The government did not meet PRSP targets in 2004; only the 6% real GDP growth projected for 2003 was met. Key PRSP macro indicators (as presented) - Real GDP growth: PRSP Targets 6 (2003), Outturn 6.9 (2003); PRSP Targets 6 (2004), Outturn 5.1 (2004); PRSP Targets 6.2 (2005). - Fiscal Deficit (excluding grants) as % of GDP: PRSP Targets 2.7 (2003), Outturn -7.2 (2003); PRSP Targets 2.3 (2004), Outturn -10.2 (2004); PRSP Targets 1.9 (2005). - Export Growth (SDR, assuming exchange rate of D21.3): PRSP Targets 8.2 (2003), Outturn -5.3 (2003); PRSP Targets (2004) -3.5; PRSP Targets (2005) [blank]. - Current Account Deficit (excluding grants) as % of GDP: PRSP Targets 12.3 (2003), Outturn -13.6 (2003); PRSP Targets 11.6 (2004), Outturn -21.6 (2004); PRSP Targets 10.3 (2005). - Current Account Deficit (including grants) as % of GDP: PRSP Targets 5 (2003), Outturn -5.1 (2003); PRSP Targets 5.8 (2004), Outturn -11.8 (2004); PRSP Targets 2.7 (2005). - Gross Official reserves as months of imports, c.i.f: PRSP Targets 5.2 (2003), Outturn 4.6 (2003); PRSP Targets 5.4 (2004), Outturn 4.3 (2004); PRSP Targets 5.5 (2005). - Broad Money Growth: PRSP Targets 9.9 (2003), Outturn 43.4 (2003); PRSP Targets 9.6 (2004), Outturn 18.3 (2004); PRSP Targets 9.6 (2005). - Inflation: PRSP Targets 4 (2003), Outturn 17.6 (2003); PRSP Targets 3 (2004), Outturn 8 (2004); PRSP Targets 3 (2005). - The single biggest contributor to poor macro performance relative to PRSP objectives was high public expenditure outturns from 2002, leading to increased money growth and inflationary effects and a heavy domestic debt burden that erodes poverty-reducing expenditure. - Performance was expected to improve by end-2005 following fiscal authorities’ efforts to improve public expenditure management. *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### 2.2 Fiscal Policy - Fiscal performance improved in 2004 in terms of the GLF deficit and government domestic borrowing requirement, but overall fiscal deficit (after grants) increased due to a large rise in externally funded project expenditures. - GLF budget (including HIPC grants and expenditures) recorded a surplus of 3.7% of GDP in 2004 compared to a deficit of 0.2% of GDP in 2003 and a budgeted deficit for 2004 of 0.6% of GDP. - Government net domestic borrowing in 2004 was 0.5% of GDP compared to a budgeted 2.5% of GDP. The 2004 budget implicit domestic borrowing requirement was 4.9% of GDP (including a financing gap of 2.8% of GDP). - Domestic revenues in nominal terms grew by almost 60% over the 2003 outturn. - Indirect taxes on international trade rose by 84%. - Indirect taxes on domestic goods and direct taxes rose by 42% and 37% respectively. - Nominal growth in international trade taxes outpaced the projected rise in the Dalasi value of non-project imports, indicating improved revenue collection efficiency. - Domestic primary balance improved by 4.8% of GDP in 2004 to a surplus of 9.3% of GDP; the 2004 primary surplus was 3.3 percentage points of GDP higher than budgeted and the largest central government primary surplus since at least the mid 1990s. - Project expenditures in 2004 were higher by several percentage points of GDP than in 2003 (project expenditures are not included in GLF data) and would have offset some contractionary impact of GLF operations. Fiscal Data: 2003–2004 (Percent of GDP) - Revenue and Grants: 2003 outturn 18.2; 2004 budget 20.8; 2004 outturn 25.5. - Domestic Revenue: 2003 outturn 15.7; 2004 budget 17.5; 2004 outturn 20.9. - Tax Revenue: 2003 outturn 13.8; 2004 budget 16.1; 2004 outturn 18.6. - Direct Tax: 2003 outturn 4.4; 2004 budget 4.6; 2004 outturn 5.0. - Domestic Tax on goods and services: 2003 outturn 2.1; 2004 budget 0; 2004 outturn 2.4. - Tax on International Trade: 2003 outturn 7.3; 2004 budget 0; 2004 outturn 9.1. - Nontax Revenue: 2003 outturn 1.9; 2004 budget 2.5; 2004 outturn 2. - Grants: 2003 outturn 2.5; 2004 budget 3.3; 2004 outturn 4.5. - Expenditure and Net Lending: 2003 outturn 22.9; 2004 budget 30.9; 2004 outturn 31.2. - Current Expenditure: 2003 outturn 17; 2004 budget 18.2; 2004 outturn 16.9. - Wages and Salaries: 2003 outturn 4.5; 2004 budget 3.9; 2004 outturn 4.3. - Other Charges: 2003 outturn 5.9; 2004 budget 5.8; 2004 outturn 4.9. - Interest: 2003 outturn 6.1; 2004 budget 8; 2004 outturn 7.2. - External Interest: 2003 outturn 1.6; 2004 budget 1.9; 2004 outturn 1.9. - Domestic Interest: 2003 outturn 4.4; 2004 budget 6; 2004 outturn 5.3. - Capital Expenditure and Net Lending: 2003 outturn 5.8; 2004 budget 12.7; 2004 outturn 14.2. - Capital Expenditure: 2003 outturn 6.1; 2004 budget 12.1; 2004 outturn 14.4. - External Capital: 2003 outturn 4.7; 2004 budget 11.4; 2004 outturn 12.6. - GLF (Gambia Local Fund): 2003 outturn 0.6; 2004 budget 0.8; 2004 outturn 0.7. - Net Lending: 2003 outturn -0.2; 2004 budget -0.2; 2004 outturn -0.2. - Overall balance (commitment basis): - Excluding grants: 2003 outturn -7.2; 2004 budget -13.4; 2004 outturn -10.2. - Including grants: 2003 outturn -4.7; 2004 budget -10.1; 2004 outturn -5.7. - Financing: 2003 outturn 6.2; 2004 budget 7.3; 2004 outturn 4.8. - External (net): 2003 outturn 5.7; 2004 budget 4.8; 2004 outturn 2.7. - Borrowing: 2003 outturn 9.3; 2004 budget 9.4; 2004 outturn 6.7. - Amortization: 2003 outturn -3.6; 2004 budget -4.6; 2004 outturn -3.2. - Domestic: 2003 outturn 0.5; 2004 budget 2.5; 2004 outturn 0.5. Table: Source of Budget Funding (Dalasis ‘000s) — Allocation (Budget Estimates) and % Shares (recurrent, development, totals) - GLF: Recurrent 2,178,374; Development 120,300; Total 2,298,674; Recurrent 96.9%; Development 7.3%; Totals 59.2%. - HIPC: Recurrent 69,450; Development 100,000; Total 169,450; Recurrent 3.1%; Development 6.1%; Totals 4.4%. - External Grants: Recurrent 0; Development 240,902; Total 240,902; Recurrent 0.0%; Development 14.7%; Totals 8.2%. - External Loans: Recurrent 0; Development 1,176,990; Total 1,176,990; Recurrent 0.0%; Development 71.8%; Totals 30.3%. - Total: Recurrent 2,247,842; Development 1,638,192; Total 3,886,016; Recurrent 100.0%; Development 100.0%; Totals 100.0%. - Note: Amortizations D578, 286. ### 2.3 Monetary Policy - Monetary policy was less expansionary in 2004 than in 2003. - Year-on-year broad money growth slowed to 18% in 2004 from 43% in 2003. - Reserve money growth (CBG’s operating target) fell from 63% in 2003 to 11% in 2004. - Both broad money and reserve money growth were lower than programmed in 2004 by two percentage points and four percentage points respectively. - CBG net foreign assets increased by D 1,286 million in 2004. - Usable foreign reserves rose to $81 million by end-December 2004, equivalent to 4.3 months of import cover (c.i.f. merchandise imports $197 million in 2004). - Total net issuance of TBs during 2004 amounted to D 1,103 million: - D 570 million purchased by commercial banks. - D 640 million by the non-bank sector. - CBG’s holdings of TBs fell by D 107 million. - Net issuance of TBs exceeded programmed amounts because CBG’s NFA and Other Items Net were larger than programmed, requiring more TB issuance to control reserve money. - Outstanding government domestic debt rose from D 2,325 million at end-2003 to D 3,415 million at end-2004. - Government domestic debt as share of GDP rose from 22.6% at end-2003 to 27.4% at end-2004. - Interest rates remained very high in 2004: - Yield on first 364 day TB issuance in 2004 (beginning January) was 31.1%. - Yield on last 364 day TB issuance (30 November 2004) was 29.9%. - Annual inflation fell by almost 10 percentage points during 2004 to 8% by end-2004; ex post real yield on 364 day TB issued at start of 2004 was 21.4%. - Yield on 91 day TB fell from 30.9% at start of October 2004 to 27.4% at end of December 2004. - Annualised ex post real yield on the 91 day TB issued at start of October 2004 was 29%. - Nominal yields on TBs began to decline during 2005, albeit more slowly than desired. ### 2.3 Governance and Financial Governance #### 2.3.1 Governance of the Central Bank - Audits of the Central Bank of The Gambia (CBG) accounts for financial years 2001, 2002 and 2003 were a primary benchmark in the Staff Monitored Programme (SMP) discussed with the IMF in May 2004 (covering July–December 2004). - Late completion of the CBG audit derailed approval of the SMP. - Completion of these audits allowed negotiation of a new SMP in 2005 with end-December and end-March test dates; a SMP review was scheduled for end-May 2006 and, if completed successfully, would lead to a new PRGF programme. - CBG is implementing audit recommendations to increase confidence and transparency. #### 2.3.2 Judicial reforms - 2004 efforts (largely funded by CBEMP) aimed to strengthen the justice delivery system and support private sector expansion. - Reforms included development of a Legal Sector Strategy, introduction of an IT strategy and Court Case Management System (CCMS), and an Alternative Dispute Resolution (ADR) Initiative to improve access to justice and court turnaround time. - By end-2004: TORs finalized and expressions of interest published for IT strategy and CCMS consultants; ADR bill passed cabinet and slated for enactment in early 2005; adjustments to high court rules for ADR operation effected. #### 2.3.3 Public Expenditure Management - The dominant event in 2004 was institutionalizing the Integrated Financial Management Information System (IFMIS). - Tendering for IFMIS was suspended due to insufficient in-country technical capacity to evaluate bids; an IFMIS Evaluator was to be recruited to facilitate pre-bid conference, evaluate bids and negotiate contracts. - Problems in the tendering process included missing attachments to bidding documents and the need to scale down the IFMIS project; pre-bid explanations to bidders were planned. #### 2.3.4 Privatisation and divestiture - The Gambia Divestiture Agency completed the Regulatory Framework study in 2004; a validation workshop was held in March 2004; the Director General of PURA was appointed. - The Regulatory Framework study enabled commencement of Track I public enterprise studies. - In September 2004 the procurement process for Transport Sector Study (covering GPA, GIA, GPTC and GCAA) commenced; proposals received and evaluation completed by end-December 2004. - Draft report on SSHFC study (possibility of private sector participation in pension fund management and splitting Housing Fund from Social Security Fund) submitted in February 2004 but judged unsatisfactory; consultants asked to improve work or risk re-tendering. - Procurement for consultants to set up a Redundancy and Compensation Framework for public enterprises slated for divestiture commenced in August 2004; evaluation completed by end-December and work scheduled to commence early 2005. - Negotiations commenced to dispose of 30% of Government’s 40% shareholding in Gambia Cotton Company Ltd (GAMCOT) with majority shareholder DAGRIS. *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### 2003. During 2004, a revised proposal was received following the failure to reach an agreement ### _cr06396 - 2003. During 2004, a revised proposal was received following the failure to reach an agreement ### Divestiture, GAMPOST, and Gambia Groundnut Corporation (GGC) - A revised proposal was received during 2004 following the failure to reach an agreement during the previous year’s negotiations. A Cabinet Paper on the way forward has been prepared and is expected to be presented to Cabinet sometime in 2005. - Transformation of Gambia Post Office into an autonomous body (GAMPOST) is in progress. - A financial viability study has been completed. - The GAMPOST Bill is expected to be laid before the National Assembly in 2005. - Major 2004 development: hiring of Financial Advisors for the divestiture process of Gambia Groundnut Corporation (GGC). - The divestiture transaction is expected to be announced in March 2005. - Closure of the transaction is expected to bring tangible benefits in terms of poverty alleviation. - Expected benefits from private-sector involvement in GGC: - Better quality processing will add value to nuts to be exported. - Greater efficiency of processing will reduce cost. - Likely direct and indirect benefits to the poor via improved operations and capital injection. - Success dependencies and implementation actions: - Success depends on continued commitment of donor partner, the EC, given the magnitude of funds required. - GDA developed a comprehensive time-bound action plan on the implementation of the divestiture programme, expected to be submitted to HILEC for approval during 2005. - Constraints in 2004: - Insufficient funding for activities not covered under the Trade Gateway Project. - Attraction and retention of staff were major constraints. - Implementation caveat: - Problems of staff attrition and retention as well as funding need to be addressed to record more meaningful progress in 2005 and beyond. ### Civil Service Reform - Main constraint: high rate of attrition common across Civil Service Departments. - 2004 action: - A study was undertaken with World Bank support through the CBEMP to examine the nature and causes of attrition. - The study has been finalized and a number of recommendations have been made. - Next step: Government needs to use the recommendations as a step towards implementing comprehensive civil service reform. ### Preparation and auditing of Government accounts - Audit Reports: - Auditing of the 1992-99 accounts of Central Government began in 2004 with DFID technical assistance (consultant to help the National Audit Office). - The exercise was completed and submitted to the National Assembly for discussion in June 2005. - Backlog of Un-audited Accounts, 1991-1999: - Auditing of Government accounts for 1991-1999 was expected to be completed in 2004 and was included as a structural benchmark in the SMP; the activity extended to 2005. - Development partners welcomed completion of the auditing of the 1991-99 Government accounts and the finalization of the 2000 accounts. - The 2000 accounts have also been submitted to the Auditor General for auditing. - General ledger and financial instructions: - Update of the general ledger for 2002 has been completed. - Treasury Directorate staff started updating the general ledger for fiscal data for 2003 and 2004. - Organic budget law was passed by the National Assembly in September 2004. - A consultant/TA was hired in the last quarter of 2004 to redraft Financial Instructions for central Government operations in line with the new budget law; this work was completed in 2005. ### Public spending, budget systems, and IFMIS - Progress toward Medium Term Expenditure Framework (MTEF) required basic budget structure improvements commenced in 2003 and advanced through end-2004, addressing: - Budget Classification - Budget presentation & integration of the recurrent & development budgets - Programme based budgeting - Budget system & process - Organizational change: - New structure of DOSFEA was designed during 2004 and incorporated into the 2005 budget. - Budget classification and piloting: - Budget Classifications restructured to a uniform system for both recurrent & development budgets, coding incorporating the 1986 GFS Classification and poverty indicators. - Coding structure provides for programme based budgeting. - Pilot work in 2004 with Department of State for Health (DOSH) to develop programme and sub-programme budgets; Health budget for 2005 can be presented in terms of defined programmes. - Budget process improvements: - Development & Recurrent budgets now considered together at a series of bilateral departmental meetings to assess future current expenditure impact of capital expenditure. - Core circular improved to set realistic departmental ceilings; circular contains broad ceilings for the following 2 years. - Appointment of a macroeconomic advisor at the end of 2004 expected to enable more robust forecasts for the 2006 budget ceilings. - Budget database: - New budget database compiled in 2003 used to produce the 2004 & 2005 budgets. - Database incorporates complete budget coding structure, produces reports used in budget presentation, contains provisional outturn data for FYs 2001 – 2003 and budgets for 2003 – 2005, and will form the basis of MTEF documentation. - IFMIS: - Bidding documents completed and tenders for supply, installations, and implementation of IFMIS made in 2004. - Evaluation found none of the bidders qualified to implement IFMIS, leading to re-tendering and delay. - Mid-term review in 2004 led to restructuring IFMIS into three phases; efforts underway to get the first phase implemented by end 2006. ### Poverty focus of public expenditure — key findings and statistics - GLF allocated to PRSP expenditure in 2004: 13.2%. - PRSP allocations (approved budget figures): - Increased from D230m in 2003 to D380m in 2004. - Share of current expenditures: - Fell from 97% in 2003 to 91% in 2004. - Share of capital expenditures: - Trebled from 3% in 2003 to 9% in 2004. - Proportion of PRSP allocations out of the total budget (excluding debt service): - Increased from 22% in 2003 to 29% in 2004. - Considering debt service obligations: - The share of PRSP allocations dropped to 13% in both 2003 and 2004. - Decline in allocations with debt service is sharper in 2004 (from 29% to 13%) than in 2003 (from 22% to 13%) due to huge debt obligations in 2004. - Government revenue allocated for poverty reduction interventions: - Overall, 21.65% of government revenue was allocated for poverty reduction interventions. - Government committed in the PRSP to utilising 25% of its budgeted revenue to reduce poverty (target not met). - Shortfall attributed to high cost of servicing rising government debt stock consuming more than half of government resources. - Sector allocation trends: - As shown in the source distribution, allocation to priority sectors increased gradually from 25% in 2003 to 28% in 2004. ### Table 2.4: Allocation (% shares) — priority sectors (as presented) - Allocation (% shares)- 2003 | Allocation (% shares)-2004 - Education: 12.20% (Recurrent) 7.30% (Development) 9.90% (Total) → 10.00% (Recurrent) 17.90% (Development) 13.30% (Total) - Health And Social Welfare: 10.60% (Recurrent) 9.50% (Development) 10.10% (Total) → 9.90% (Recurrent) 10.00% (Development) 9.90% (Total) - Agriculture: 3.10% (Recurrent) 7.40% (Development) 5.20% (Total) → 2.10% (Recurrent) 7.80% (Development) 4.50% (Total) - Sub-Total: 25.90% (Recurrent) 24.20% (Development) 25.20% (Total) → 22.00% (Recurrent) 35.70% (Development) 27.70% (Total) - Debt Services: 31.60% (Recurrent) 0.00% (Development) 16.60% (Total) → 44.30% (Recurrent) - 25.60% (Total) - Others: 42.50% (Recurrent) 75.80% (Development) 58.20% (Total) → 33.80% (Recurrent) 64.20% (Development) 46.60% (Total) - Total: 100.00% 100.00% 100.00% → 100.00% 100.00% 100.00% ### Table 2.5: Overall PRSP Initiatives (Dalasi '000s) — selected figures (as presented) - Excluding Debt Service (Dalasi '000s): - Government (GLF Only): 2003: 885,917 | 2004 Prov: 1,303,934 | 2005 Budget: 1,688,950 - Statutory: 2003: 30,199 3.41% | 2004 Prov: 42,763 3.28% | 2005 Budget: 43,033 2.55% - PRSP: 2003: 200,480 22.63% | 2004 Prov: 379,711 29.12% | 2005 Budget: 474,617 28.10% - Discretionary: 2003: 655,238 73.96% | 2004 Prov: 881,460 67.60% | 2005 Budget: 1,171,300 69.35% - Donor (Inc HIPC): 2003: 896,822 | 2004 Prov: 1,587,342 | 2005 Budget: 1,114,362 - PRSP: 2003: 526,247 58.68% | 2004 Prov: 895,797 56.43% | 2005 Budget: 478,104 42.90% - Discretionary: 2003: 370,575 41.32% | 2004 Prov: 691,545 43.57% | 2005 Budget: 636,258 57.10% - All Funds: 2003: 1,782,739 | 2004 Prov: 2,891,276 | 2005 Budget: 2,803,312 - Statutory: 2003: 30,199 1.69% | 2004 Prov: 42,763 1.48% | 2005 Budget: 43,033 1.54% - PRSP: 2003: 726,727 40.76% | 2004 Prov: 1,275,508 44.12% | 2005 Budget: 952,721 33.99% - Discretionary: 2003: 1,025,813 57.54% | 2004 Prov: 1,573,005 54.41% | 2005 Budget: 1,807,558 64.48% - Including Debt Service (Dalasi '000s): - Government (GLF Only): 2003: 1,948,304 | 2004 Prov: 2,876,960 | 2005 Bud: 3,155,167 - Statutory: 2003: 1,092,586 56.08% | 2004 Prov: 1,615,789 56.16% | 2005 Bud: 1,509,250 47.83% - PRSP: 2003: 200,480 10.29% | 2004 Prov: 379,711 13.20% | 2005 Bud: 474,617 15.04% - Discretionary: 2003: 655,238 33.63% | 2004 Prov: 881,460 30.64% | 2005 Bud: 1,171,300 37.12% - Donor (Inc HIPC): 2003: 896,822 | 2004 Prov: 1,587,342 | 2005 Bud: 1,114,362 - PRSP: 2003: 526,247 58.68% | 2004 Prov: 895,797 56.43% | 2005 Bud: 478,104 42.90% - Discretionary: 2003: 370,575 41.32% | 2004 Prov: 691,545 43.57% | 2005 Bud: 636,258 57.10% - All Funds: 2003: 2,845,126 | 2004 Prov: 4,464,302 | 2005 Bud: 4,269,529 - Statutory: 2003: 1,092,586 38.40% | 2004 Prov: 1,615,789 36.19% | 2005 Bud: 1,509,250 35.35% - PRSP: 2003: 726,727 25.54% | 2004 Prov: 1,275,508 28.57% | 2005 Bud: 952,721 22.31% - Discretionary: 2003: 1,025,813 36.06% | 2004 Prov: 1,573,005 35.24% | 2005 Bud: 1,807,558 42.34% - Memorandum: Domestic Borrowing: 2004: 260,000 | 2005: 270,821 *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### CHAPTER 3 ### CHAPTER 3 ### 3.1 Agriculture and Natural Resources — Agriculture: policy and implementation - Agriculture employs 75% of the population and contributes only 30% of GDP. - Government strategy: public and private strategic partnership framework within a new agriculture policy (under review) with the public sector in a catalytic role. - Broad priority activities: - ensuring water control and management; - sustainably improve natural resource management including soil fertility maintenance and biodiversity; - revamping pro-poor agricultural research and extension development; - ensuring affordability and accessibility of Rural Finance/Micro-finance opportunities/facilities. - Investment strategy elements (as stated): - addressing the phenomemnon of deteriorationg natural resources and biodiversity including declining soil fertility and effectively reversing the trend; - bringing about major improvements in water resources management; - ensuring a copious flow of appropriate technology and the dissemination and adoption of the same, through strengthened research and extension capacities; - creating the necessary conducive environment through provision of appropriate incentive regime, social and economic infrastructure and a legal framework that affords sufficient protection to private ownership; - facilitating the development of appropriate rural financial systems that address the requirements of all categories of micro-entrepreneurs; - developing the human resource base with a focus on creating the critical mass of skills, technicians and professionals; - initiating and adopting appropriate institutional reforms that enhance broad-based participation in the development process such as land reforms and equal access to resources. - Production, promotion of policies and programmes which continue private sector participation, diversification of the production base, promotion of the agricultural producer organizations, increasing domestic savings and investment, attraction of foreign investment, optimal techniques/projects’ outputs, - Increased use of irrigation and other water harvesting techniques, operationalization of an agricultural development bank/fund, increased use of appropriate agricultural technology/mechanization, - Regular and timely supply of agricultural inputs (certified seeds, fertilizers, agro-chemicals, vaccines and veterinary drugs) on a sustainable basis with active private sector participation, - Provision of appropriate processing and storage facilities and gender (mainly women) mainstreaming in the development process. ### 3.1.1 Agriculture — Performance and activities in the 2003/04 cropping season - Cropping season summary: slight increase in production of groundnut and cereal crops despite scanty and irregular first rains. - Table 3.1: Crop Production Statistics (0000s of tons) for 2003 and 2004 (SOURCE: NASS Statistical Year Book) - Groundnuts: 2003 = 92.9; 2004 = 135.9; % Change = 46 - Sesame: 2003 = 1.2; 2004 = 1.4; % Change = 11 - Maize: 2003 = 33.4; 2004 = 29.2; % Change = -13 - Early Millet: 2003 = 107.1; 2004 = 116.0; % Change = 8 - Late Millet: 2003 = 13.2; 2004 = 16.5; % Change = 25 - Sorghum: 2003 = 30.1; 2004 = 29.0; % Change = -13 - Upland Rice: 2003 = 9.8; 2004 = 12.4; % Change = 26 - Swamp Rice: 2003 = 8.2; 2004 = 8.7; % Change = 6 - Irrigated Rice: 2003 = 11.5; 2004 = 11.5; % Change = 0 - Total Production: 2003 = 213.3*; 2004 = 222.9*; % Change = 41* - * Groundnut and Sesame not included - Divestiture of the groundnut trade and processing plants: - Private sector operated 43% of the buying points (30). - Government, through the Cooperative Department, operated 57% (39) of the buying points that were operational in the trade season. - Both the Cooperative and private dealers combined purchased only 24% (31,500) of the 135,000 tons of groundnuts produced in 2004. - Remaining 103,000 tons (76%) was either kept as seed, purchased through weekly markets, cross border trade and auto consumption, etc. - All private buying agents registered profit while cooperative-operated buying points made an accumulated loss of thirteen million Dalasi (D13, 000.000) which government had to repay to GAMCO. - Identified disincentives: injudicious pricing policies, barriers to adequate public and private sector partinership, and low marketing margins. - Expansion of irrigation (LADEP / SWMU activities): - 3,654 meters of dikes were constructed. - 8970 meters upgraded and repaired. - 1,050 meters of spillways were constructed, maintained or repaired. - 5289m of causeways and 768m of foot bridges were constructed across creeks to ease access to tidal swamps in LRD, CRD and parts of NBD. - Planned ploughing: 1,000 hectares in 15 villages; actual ploughed due to phasing out of LADEP: 264 hectares in 13 villages. - Drilling of tube wells for gardening and supplementary rice production carried out in 3 LADEP scheme sites. - Promoting private provision of inputs: - Government supplied about 4000 tons of fertilizer out of the (*?) estimated fertilizer used by farmers. - About 520 tons of groundnut seeds was supplied; farmers bought only about 32 tons due to poor seed quality. - Seven thousand seven hundred and forty tons (7,740) of seeds in general were planted in 313,265 hectares of land during the 2004 cropping season (NASS 2004). - Main sources of seed planted (ha): own produced seeds 196,188 ha; other farmers 17,669 ha; NGO 7,316 ha; Cooperative 1,734 ha; Government assistance 5796 ha; traders 27,845 ha. - Private sector more prevalent in provision of vegetable seeds, pesticide, herbicides, sprayers and pest control paraphernalia. - Locust invasion: - From the end of November 2003 locusts invaded the country. - Damage limited due to donor, agricultural staff and stakeholder campaigns. - Pesticides mainly from FAO, Action-aid The Gambia and the Governments of Algeria and Morocco. ### 3.1.1 Agriculture — Livestock, veterinary and agro-processing - Livestock disease control: - With support from the PACE project DLS produced a disease control policy: ‘Effective prevention, progressive control and eradication where applicable’. - Vaccination remains the department’s major control strategy. - Clinical interventions provided by central veterinary clinic at Abuko, divisional clinics, livestock assistants and village auxiliaries. - Veterinary Public Health activities included: - meat and milk hygiene; countrywide daily inspections at abattoirs and slaughter slabs (ante mortem and post mortem); rabies control/vaccination; stray dog control; campaigns against illegal slaughter and cattle theft; certification and verification of all foods of animal origin imported/exported in/out of the country. - Diversification into horticulture and agro-processing: - Horticulture research funding on improved vegetables and roots/tuber varieties; new sweet potato (Njalla White and 94-1) and new cassava (Tokumbo) cuttings provided to farmers in all 6 Agricultural Divisions. - Okra variety trials under way. - Food and Nutrition Unit (FNU) in DAS: - Mandate: improve post harvest handling, processing and utilization of agricultural produce, development and introduction of appropriate food processing, preservation and storage techniques. - Farmer training delivered on processing and preservation of major food crops, fruits and vegetables. - Recipes developed: two varieties of ‘wonjo’, mango jam, pepper sauce, tomato jam and paste, pawpaw jam and pepper pickle. - Solar drying training conducted in 4 villages (two each in NBD and WD). - Mobility constraints limit outreach replication. - Technology and machinery: - MOU signed with GTTI for mass production of farm implements and post harvest machinery. - Agricultural research and diversification: - NARI involved in adaptive research to diversify crop mix. - Grain legumes and oil seeds: sesame variety 32-15 under multiplication and characterisation; five groundnut cultivars evaluated (S28/206, 73-33, ICGV 97188 and 47-10). - Cereals: high yielding pest resistant maize, millet, rice and findo varieties screened and diffused; NERICA demonstrations in all six Agricultural Divisions (10 villages per division); trials on extra-early, early maturing, hybrid and drought tolerant maize varieties; two sorghum and one findo seed production activity undertaken. - Livestock production improvements: 250 farmers trained in production, housing and nutrition; four broiler production units established (CRD North, CRD South, NBD and WD); three layer production units established (LRD, URD, CRD South and WD). - Fodder and feed: Intensive Feed Gardens (IFGs) established one each in WD, NBD, CRD South and LRD. - Institutional/organizational gaps: - Agricultural regions are not redefined to facilitate research planning and implementation addressing zonal priorities. ### 3.1.1 Agriculture — Agricultural credit - Government, through projects, streamlines and expands rural financial services to ease credit constraints for agriculture and small enterprise development. - Projects: Rural Finance and Community Institutive Project (RFCIP) and Peri-urban and Small-holder Improvement Project (PSIP) established credit schemes managed by Social Development Fund (SDF), Gambia Women’s’ Finance Association (GAWFA), National Association of Cooperative Credit Unions of the Gambia (NACCUG), National Savers and Credit Associations (NASACA). - These NBFIs are licensed by The Central Bank of The Gambia; they give loans to VISACAs which in turn lend to their members. ### 3.1.2 Natural Resources — Fisheries, Water Resources, Forestry - Fisheries: - Fisheries production for 2004 was 44,000 metric tones. - Artisanal fisheries produced 75% of landings. - Over 80% of artisanal catches are Bonga (Ethmalosa Finbruta). - Fish supplies 40% of the total animal protein in the country. - Sector employment: over 60,000 people employed of which over 90% are in artisanal or small-scale fisheries (excluding public sector). - Estimated some 200,000 people depend directly or indirectly on the sector. - Ongoing projects: The Gambia Artisanal Fisheries Development Project; SFLP Pilot Project on post-harvest livelihoods. - Infrastructure: fish market constructed in Sanyang fish landing and processing center. - Water Resources: - European Development Fund funding for a National Water Resources Policy to guide management of the nation's water resource base. - UNDP funded development of a National Water Resources Management Strategy to build on and implement the Policy. - Forestry: - Forest Parks managed jointly with neighboring communities; management plans signed in May/June 2004 and implementation just starting. - Extension services and training provided to more than 60 communities (Department of Forestry and NGO NACO). - Benefits realized include: - Licensing of women to collect and sell branch wood from CF villages improving income; - Certification of forest product utilization with forest conservation improving vegetation quality and quantity; - Forest fire control adding value to grazing material for wildlife and livestock; - Enterprise development: Market Analysis and Development (MA & D); small-scale forest product enterprises (e.g., honey, logs and firewood); - Support to the National Bee Keepers Association to promote beekeeping. - Challenges: - Lack of conflict resolution skills in some communities involved in CF management despite CF agreement terms; - Lack of control of bushfires and illegal tree felling in some rural communities particularly in open access forests (State forests). ### 3.2 Trade, Industry & Employment — policy measures and institutional developments - AGOA: - Following eligibility into AGOA, a national committee of relevant government institutions, Private Sector, the US Embassy and UNDP was set up by DOSTIE in 2004 to handle AGOA national issues. - Committee working on acquiring the AGOA textile visa and Category 9 Textile Certificate of origin to enable exporters of textiles, apparels, hand woven fabrics and folkloric articles to export to the US market. - AGOA resource centre established at GCCI and backup support unit at GIFPZA to facilitate information access on AGOA accredited products, quality and standards, and customs procedures. - Trade Policy Review: - DOSTIE with the WTO Secretariat finalized The Gambia’s first Trade Policy Review in February 2004. Findings will inform a National Trade Policy. - Sensitization on multilateral trading systems: - Series of workshops on WTO and specific WTO agreements organized for economic operators. - Workshops on Sanitary and Phytosanitary measures conducted. - Competition policy and standards: - Competition policy and law drafted in collaboration with the Commonwealth Secretariat; bill at cabinet level for consideration and enactment. - Draft Consumer Protection Act and Rules and draft Standards and Quality Control Policy and Law submitted to Attorney General’s Chambers for vetting. - Legislation on Limits of Error for package commodities prepared by Commonwealth Secretariat has been legislated and gazetted. - Sub-regional trade and regional agreements: - National impact assessment study on Common External Tariff (CET) carried out in 2004; results indicate CET would have positive effect on economic growth in the long-run. - Economic Partnership Agreement (EPA): studies commissioned in 2004 with Commonwealth Secretariat and EU to assess impacts and strengthen negotiating capacity; a national committee formed to advise on implementation and participate in regional negotiations. - Employment, human resources and labour: - DOSTIE implementing institutional mechanisms for the National Employment Policy and Action Plan as part of PRSP; funding constraints limit full implementation. - Training conducted with National Women Farmers Association (NAWFA) on agricultural-related income generating activities focusing on processing and marketing of oil seeds (sesame, groundnut), soap, cereals and horticultural products. - Review of Labour Laws: 1990 Labour Act review completed; draft Bill 2004 being finalized by Attorney General’s Chambers and Department of State for Justice. - Establishment of Industrial Tribunals: two tribunals established in Banjul and KMC in 2004; panelists and chairpersons sworn in. - Labour Migration in West Africa: The Gambia chapter established and inaugurated in December 2004; a national committee on managing labour migration for integration and development in West Africa was formed. - Private sector, investment and industry: - Government aims to stimulate private sector growth and participation in industrial production. - DOSTIE secured funding from African Capacity Building Foundation (ACBF) to establish the public sector, private sector and civil society interface capacity building project (GICAP). *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### 2003. The objective of the project is to build capacity of the private sector, civil society and ### _cr06396 - 2003. ### Capacity building of private sector, civil society, and NGOs - Objective: to build capacity of the private sector, civil society and NGOs for effective interface with the public sector. - 2004 activities: - GICAP engaged in training 50 private and civil society operators. - DOSTIE, GCCI and TANGO provided with equipment for information collection, analysis and dissemination as part of institutional capacity building. - Expected outcome: establishment of interface organs and structures to assist government and non-state actors to engage in meaningful policy dialogue, enhancing policy discussion to strongly articulate development concerns of society, particularly the poor and the vulnerable. ### Investment Promotion - Government action: measures to enhance the friendliness of the investment environment. - 2004 diagnostic study: Foreign Investment Advisory Service of the World Bank Group undertook a diagnostic study of the investment climate in The Gambia at the request of the Gambia Government; Government is implementing conclusions of the study. - GIPFZA (Gambia Investment Promotion and Free Zone Agency) responses: - Strengthened capacity and refocused promotional strategy. - Targeted Gambian communities living in the USA in 2004 as part of market diversification strategy. - Conducted a survey on investor perception as part of the Balance of Payment Survey supported by DFID, UK. - Impact of GIPFZA activities (September 2002 to September 2005): - 28 new firms established in sectors: agriculture, fisheries, manufacturing, ICT, tourism, and services. - Total investment value: US$ 81.04 million. - Project target for first five years: 20 new firms. - Jobs created: 1845 direct and indirect new jobs. - Customs processing time reduced to 24 hours (original target 48 hours). - Exports in horticultural produce and fish products to UK markets increased significantly in 2004. - Foundation stones laid for Flourmill Company with an investment capital of US$ 12million, and for a Petroleum storage facility. ### Industrial development - Government commitment: transform the Gambian economy from low levels of output and income and from dependence on agriculture and tourism to a diversified economy through development of a sound industrial base integrated with other sectors. - Assistance: Commonwealth Secretariat assisted in developing a strategy for development of rural agro-based industries. - Training: a training centre for agro-food processing established at Banjulinding Women Horticultural Garden to train women in food processing and preservation techniques to encourage value addition and minimize post-harvest losses. - Expected impact: enhance income levels of farmers in rural areas and reduce poverty. ### Export Development Strategy - Support: International Trade Centre (ITC) in Geneva supported development of an integrated framework designed to promote prospects for export in fisheries, horticulture and tourism sub-sectors. - Capacity building: project organized a training workshop for Gambia Horticultural Producers and Exporters (GAMHOPE) in export marketing, document preparation, Sanitary and Phitosanitory Sanitary (SPS) and technical barriers to trade (TBT). - Constraint: process besieged by budgetary constraint. ### Small and Medium Enterprises (SMEs) Development - 2004: Government finalized formulation of national SMEs policy for development of the sub-sector. - Expected outcome: full implementation of the policy will enhance development of SMEs, increase employment and reduce poverty. ### Tourism - Importance: - Tourism is the main foreign exchange earner for The Gambia, contributing over 12% to the GDP. - Creates significant local employment, currently around 16000. - Revenue projection: - Projected to earn about $40 million for the economy for the period of 2004. - Accommodation stock: - Currently 35 hotels and high-class guesthouses in the Tourism Development Area (TDA) and other areas within the urban centers; more hotels are being built. - Tourist arrivals (2000–2004): - 2000: 82117 - 2001: 77486 - 2002: 75479 - 2003: 85000 - 2004: 90098 - Macroeconomic projection: - Based on a projected doubling in tourist arrivals, tourism’s contribution to monetary GDP is projected to increase from an estimated 13% in 2004 to around18% in 2020. - Conclusion: tourism is economically significant to The Gambia and the Gambian people. ### Basic Social Services — Education - Policy framework: - Department of State for Education (DoSE) committed to improving coverage of basic social services in line with The Gambia’s Poverty Reduction Strategy Paper (PRSP). - New Education Policy (2004 – 2015) aims to provide quality basic education for all. - Five PRSP priority areas for DoSE contribution to poverty reduction: - Access to basic education - Quality of teaching and learning - Teaching and learning materials - Non-formal education - Skills training/appropriate technology - Access to Basic Education initiatives: - Classrooms construction and rehabilitation targeting the poor, the ‘unreached’ and pockets of resistant communities. - Utilize existing physical and human resources more effectively and linkages with Madrassa and non-formal sectors. - Enrollment and GER: - Despite increased enrolment over 2001~2005 and expansion in classrooms and schools, population grew faster than enrolment at basic level. - Gross Enrolment Ratio (GER) at the Lower Basic Cycle remained stagnant at 91% over the period 2003 -2005 with the madrassa contributing 15%. - Enrollment rates for girls: - 1995-96 enrollment rates for girls in Lower Basic: 55% - 2001-02 enrollment rates for girls in Lower Basic: 73% - If madrassas included, the rate would be 86% for 2001-02 (National EFA Plan, 2004). - Regional improvements: especially in regions 4, 5, and 6. - Schools by Local Government Areas (LGA): - No. of Schools by LGA (1999-2000) — totals: - Total: 457 - Breakdown by region (Lower Basic, Upper Basic, Basic Cycle, Senior Secondary) as listed in source. - No. of Schools by LGA (2004-2005) — totals: - Total: 557 - Breakdown by region (Lower Basic, Upper Basic, Basic Cycle, Senior Secondary) as listed in source. - Inclusion of remaining 10% out-of-school cohort — DoSE strategies under consideration: 1. Establish through a baseline the whereabouts of this cohort 2. Develop programs and mechanisms to enroll them or support the learning systems in which they are enrolled. 3. Close collaboration with the Majlis, Karanta or Dara system as it is being done with the madrassa 4. Sensitize out of school youth and once identified develop appropriate learning programs that suit their needs and which are above all relevant to their socio-economic context *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### 5. Collaborate with NGOS, civil society organizations and CBOs at community levels to ### 5. Collaborate with NGOS, civil society organizations and CBOs at community levels to implement agreed plans of operations to ensure that if not all majority of the concerned 10% are back in the learning process ### Basic education indicators (Table 13) - Lower Basic education GER excluding Madrassa: 74, 75, 76, 76 (2001/02, 2002/03, 2003/04, 2004/05) - Lower Basic education GER including Madrassa: 85, 90, 91, 91 (2001/02, 2002/03, 2003/04, 2004/05) - % of female enrolment including Madrasa: 46, 44 - % of female enrolment excluding Madrasa: 48, 49, 50, 51 - Upper Basic education GER excluding Madrassa: 43, 68, 65, 65 (2001/02, 2002/03, 2003/04, 2004/05) - Upper Basic education GER including Madrassa: 66, 72 - % of female enrolment including Madrasa: 42, 44 - % of female enrolment excluding Madrada: 28, 42, 46, 49 - Source: Planning Unit (DOSE) ### Access, infrastructure, and equity - New basic cycles and senior secondary schools are being built, furnished, and equipped to enhance coverage. - Junior and senior staff quarters constructed to address accommodation needs for teachers in deprived areas; extra allowances provided as incentives to motivate and retain teachers. - Policy requirement: 9 years of uninterrupted basic education guarantees every child in grade 6 a place in grade 7. - Double shift classes and multi-grade teaching expanded to address equity between boys and girls. - Education made free for all girls in all regions through schemes funded by the World Bank, UNICEF, the President’s Girls Empowerment Programme, and other international sponsors. - A safe and supportive learning environment for girls is being provided alongside support to parents to allow their children to go to school. ### Early Childhood Development (ECD) and curriculum foundations - An ECD policy adopting a holistic integrated approach (Nutrition, Health and Education in a minimum package) has been developed. - A curriculum for the minimum package will be developed; in poor communities ECD centres will be attached to existing lower basic cycles to support transition to grade one. - Operational guidelines for ECD have been reviewed, a database established, and the ECD training programme enhanced. - Curriculum Directorate revised syllabus for grades 1-4: core subjects reduced to three (English, Math, Integrated Studies). - For grades 1-2: syllabus, teacher guide, and textbooks piloted, revised, and printed to be fully introduced next school year. - Grades 3 and 4 revised with grade 3 currently on trial. - Curriculum coordinator is the main responsible person; a panel of senior teachers recruited on contract provides input on content and methodology. ### Quality of teaching and learning: findings and targets - Textbook provision target: increase number of textbooks per pupil from 2: 1 to 1:1 by the end of the policy period. - Textbooks provided free for girls at the upper and senior secondary level. - Inspection, continuous monitoring, and in-service training of teachers are being intensified. - BESPOR pilot: Whole School Development (WSD) approach (teacher training, curriculum, whole school management) piloted in Region 5 (Central River Division). - National Assessment Test (NAT), administered in grades 3 and 5, measured Mathematics, English language, Social and Environmental Studies: - Finding: in all subjects, at least 90% of students did not reach the mastery level of 73%. - Learning Achievement Targets (LAT) available for grades 1-6; LAT for grade 6 revised but not yet published. - Participatory Performance Monitoring (PPM) strategy designed by SQAD: - Planned pilot: select sample of students equal to 10% of overall student body. - As of May 2004, PPM was still in planning stage; aims to use public gatherings to discuss assessment results and school performance. - Management status of regional schools upgraded to directorship level to enhance supervision, M & E, and decision making. - Cluster monitoring system established at regional level through FTI support. - Budget allocation change: allocation of 15% of government education recurrent to quality related activities in contrast to the previous 7%. ### Teacher training, supply, and college capacity - Higher Teachers Certificate (HTC) holders being offered further training to degree level; first batch graduated this year and re-deployed to Basic cycle schools and management positions. - Expansion of admissions at The Gambia College increased over the years to address teacher shortages and untrained constraints. - Gambia College shortfall example: - Intake to the PTC for 2004 academic year: 170 (300 short of the projected 470 for 2004 and 130 short of the 300 agreed to in the Credit Agreement of the IDA project). - Suggested reasons: inadequate number of qualified applicants and lack of budget for Government grants to students (budget constraint appears critical). - DOSE should ensure Gambia College returns to its normal intake quota next school year and address organization and quality of instruction within the College. - Calibre of PTC entrants low: many entrance exam results in the 30% - 40% range; entrants heterogeneous in content knowledge and professional experience. - Remedial courses (RIFT) organized for students who do not meet minimum criteria: - RIFT provides remedial courses (2 hours/a week, in addition to a two-week course during Easter vacation, and a four-week course during the summer vacation). - The program’s success has not been evaluated in depth since the reform of the teacher-training program. - Tracer-study by UNICEF conducted four years ago and needs updating. - Observed problems: - Many students enter PTC as a last resort, with little or no interest in primary teaching; motivation among such students is low, reflected in poor attendance. - Dropout/attrition in teacher training is significant: - Expected graduates in school year 2003-2004: 227 PTC and 262 HTC students. - Admission when cohort enrolled: 374 PTC and 332 HTC students. - This indicates significant attrition among students enrolled in the programs. - Student-teachers/teacher trainees are very poorly prepared at the College; mastery of basic teaching skills rated very low. - Perception: quality of teacher preparation has deteriorated since introduction of the new model of training. - A comparative study of costs of old and new models was commissioned; a comparative study of outputs or impact of the two models was not done. ### Sector planning, partnerships, and financing - A Sector Wide Approach (SWAP) adopted, resulting in a comprehensive sector strategic development plan mapping resource requirements and capacities to realize EFA and MDG goals. - Six program areas identified: Basic Education and ECD, Secondary Education, Tertiary Education, Technical and Vocational Education, Quality Assurance and Sector Management. - Mobilization since 2004 of additional resources under World Bank Fast Track Initiative (FTI) and the strategic sector plan. - Activities supported by FTI and African Development Bank (AfDB) project: - Training of teachers - School infrastructural development and provision of teaching and learning materials - Curriculum review - Monitoring of student performance - Improving overall sector management ### Teaching and learning materials; curriculum relevance - Basic education curriculum revised with emphasis on strengthening school-based assessment and making it more relevant to children’s learning needs. - Quality and Relevance component expenditures enabled: - Review of curriculum for grades 1-4 - Evaluation of options for introducing instruction in national languages for grades 1-2 - Revision of syllabus and textbooks for all subjects - Introduction of free textbook recycling scheme for grades 1-6 - Development of a continuous assessment manual for teachers ### Fast Track Initiative (FTI) initiatives addressing posting difficulties and female teacher posting A. Access and Equity - Construction of new Classrooms in Region 1~6 - Construction of Staff quarters for teachers in difficult areas - Rehabilitation of Staff quarters B. Participation and Retention of Girls - Girl Friendly School - Remedial courses (RIFT) for female teachers - Financial support to needy girls C. Quality of teaching and Learning - Hardship Allowances to teachers serving in remote areas - Allowances for teachers in special schools *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### 3. Supervision of teacher trainees ### 3. Supervision of teacher trainees ### Supervision and incentives for teachers - Hardship and remote areas that previously could not accommodate a teacher for a minimum of a term have become attractive due to attached incentives, including allowances and provision of housing facilities. - Qualified and experienced teachers serving in urban areas, especially in region 1, have requested postings in hardship areas to benefit from associated incentives and accompanying packages. - The incentive schemes under the FTI have contributed to attracting and stabilizing teachers in remote areas. ### Non-Formal Education - Programmes target the 15+ and out-of-school youth; content varies by target groups, age, sex, occupation and other needs. - Adult learning includes functional skills useful in family life: HIV/AIDS, malaria, and tuberculosis prevention, household budget, health, childcare, nutrition and occupational skills. - An AfDB funded Community Skills Improvement Programme provides adult literacy training nationwide. - Adult literacy programme objectives: reach as many women and out-of-school youth as possible, perform regular assessment of learning to enable promotion of qualified learners and enroll new intakes. - As at end of 2004: - 260 literacy facilitators identified from all the LGAs and the municipalities and trained on local orthography, adult teaching techniques and related topics. - 50% of the facilitators are female, 50% male. - 244 literacy classes functioning with an average enrollment of 35 learners per center. - Women represent 90% to 95% of total learners. - Over 43,800 literacy primers for learners, 430 facilitators’ guides and 280 class record books in Wolof, Mandinka, Pular, Jola and Saraxulle were printed and distributed in all the 7 LGAs including the two municipalities of KMC and BCC. - Other materials such as blackboards and stationery are provided. - Outcomes: a good number of regular literacy participants can read and write in their languages, do basic calculations, facilitate record keeping, and have developed a booklet in Wolof on how to perform ablution. ### Skills Training / Appropriate Technology - December 2002: National Training Authority established by the National Assembly; private led and autonomous to coordinate training institutions and regulate skills training and Appropriate technology. ### Health — Access to health services - Geographical access to health services has greatly improved: more facilities built and expanded; a hospital is being built in Serekunda. - Four Minor Health Centres constructed in Albreda, Sara Kunda, Foday Kunda, and Kafuta. - Two major health centres (Basse and Kuntaur) are being upgraded to District Hospitals. - Plans: upgrade all minor health centres to major health centres; dispensaries to minor health centres; some Out-Reach Stations to Dispensaries. - Full functionality hampered by inadequate trained, skilled and motivated personnel; perennial problems of inadequate fuel supplies and logistics; shortages of drugs in health facilities. - Health policy target: all communities should be within 5km to the nearest health facility. - Economic access: - Reproductive and child Health (RCH) services plus family planning are ‘free of charge’. - Consultation charged D5.00. - Diagnosis and Laboratory investigations charged separately; fee usually D10.00 for Gambians. - Admissions and operations are the two most expensive fees in the health sector. ### Health — Reproductive and child health indicators (from MMR/CPR Survey – 2001) - Maternal Mortality Ratio (MMR): 730/100,000 live births. - Perinatal Mortality Rate (PNMR): 54.9/1000 live births. - Neonatal Mortality Rate (NNMR): 31.2/1000 live births. - Infant Mortality Rate (IMR): 84/1000 live births. - Child Mortality Rate (CMR): 56/1000 live births. - Under-five Mortality Rate (UMR): 135/1000 live births. - Contraceptives Prevalence Rate (CPR): 17.5% (modern 13.4%, traditional 4.1%). - Total Fertility Rate (TFR): 6.04 (children per woman). - Main causes of maternal deaths: eclampsia (18 percent), sepsis (12 percent), anti-partum haemorrhage (10 percent), post-partum haemorrhage (10 percent). - Micronutrient survey 2000: iron deficiency anaemia prevalence — 91% of children 0 – 59 months, 78% of pregnant women, 58% of lactating mothers. ### Health — Reproductive Health policy and priorities - National Reproductive Health Policy (2001 – 2006) approved by Cabinet in 2002 encourages cohesion between DoSH and partners. - RH services part of the Essential Health Care Package (EHCP) on a cost-effectiveness basis. - Priorities for Reproductive Health: - Safe motherhood, Family Planning and prevention, Management of STI/HIV/AIDS. - Strengthen referral capabilities of 4 tertiary hospitals with life-saving medical equipment. - Operationalize 6 strategically located Major Health Centres for basic and comprehensive Emergency Obstetric Care (EOC). - One year later: strengthen existing 12 Minor Health Centres and 4 other new ones to be commissioned in 2006. - Strengthen 15 Dispensaries and 442 PHC villages for basic Essential Obstetric Care. - Footnote: 4 New Minor Health Facilities have already been built, and will be operational soon. This development needs to be taken account of in the planning. ### Health — Quality of services - Health policy goal: provide quality health care delivered by appropriately and adequately trained, skilled and motivated personnel with stakeholder involvement. - Quality of service lacks a dedicated policy; no formal definition of quality despite standards and norms in the Health Mapping Needs Assessment Report of 1999. - Quality of services has never been formally assessed in the health sector. - Key factors affecting quality: - Skilled and qualified health personnel. - Quality and functional equipments. - Morbidity and mortality. - Availability of essential drugs. - Training outputs (Gambia College and other institutions): - Gambia college school of nursing introduced a double shift for about 40 state registered nurses (SRN) yearly and 20 state certified nurse midwives every one and half (11/2 years). - State Enrolled Nurse (SEN), Community Health Nurse (CHN) and Public Health Officer (PHO) training institutions produce 40 Graduates each yearly. - High attrition rate especially among nurses. - Human Resources Unit (HRU) created under Directorate of Planning and Information (DPI) for HR planning and capacity building. - DOSH&SW plans: - Develop capacity to absorb and retain trained/skilled, experienced and qualified staff by providing incentives and emoluments commensurate with qualifications, experience and local living costs (subject to resource availability). - Provide necessary equipment, materials, and conducive working environment. - Equipment gaps: - Most health facilities lack basic essential equipment like delivery kits in labour wards at major health centres like Kuntaur and Soma (RCH baseline survey 2004). - Most major health centres lack functional laboratory services. - 2004 statistics indicate increasing morbidity and mortality, especially malaria, Tuberculosis, STIs, HIV/AIDS, hypertension, and Diabetics. ### Reported disease cases (selected) - Table 14: Reported Disease cases in adults and children age cohort >= 5 years in 2003 and 2004 (values presented in source) - Malaria: 27,706 (2002); 21,011 (2003); 75,897 (2004). - Tuberculosis: 387 (2002); 494 (2003); 20 (2004). - Sexually Transmitted Infections: 1166 (2002); 1059 (2003); 753 (2004). - HIV/AIDS (Prevalence Rate) [age cohort 15-49]: - HIV1 [age cohort 15-49 years]: 1.4% (2002); 1.5% (2003); 2.1% (2004). - HIV2: 1.0% (2002); 1.0% (2003); 0.8% (2004). - Hypertension (age cohort >= 5 years): 24,759 (2002); 18,790 (2003); 23,329 (2004). - Diabetes (age cohort >= 5 years): 1009 (2002); 551 (2003); 690 (2004). - Health indicators: - Infant Mortality rate: 84/1000. - Maternal Mortality rate: 730/100,000. - Under 5 Mortality: 135/1000. - Source: Department of State for Health (Planning Unit) and HIV Sentinel Surveillance Data. HIV (Prevalence Rate) Excluded in the totals. - Availability of drugs: about 95% of all the essential drugs are available in all the major/minor health facilities throughout the country. ### Immunization and EPI performance - Gambia’s WHO certification status in 2003 for eradication of neonatal tetanus and leprosy; efforts to sustain achievements. - 2004 National Immunization Days (with vitamin A) results: - Measles first round: 92%. - Vitamin A: 83%. - Administrative Cumulative Coverage for January – July 2004: - DPT/HIP 3 coverage: 97.31% in 2004. - Government procurement of vaccines and consumables resumed after phasing out of Vaccine Independent Initiative (VII) beginning 1998. - Financial Sustainability Plan (FSP) developed to maintain EPI. - Cold chain system rehabilitated for the entire health system. - Immunization Coverage in 2004 (selected): - BCC: 92.2%. - HB3: 94.9%. - OPU3: 91.2%. - DPTHIB3: 92.2%. - MEASLES: 89.7%. - YELLOW FEVER: 88.7%. - Fully Immunized Under 1: 75.4%. - Fully Immunized Under 2: 83.1%. - JJ2: 94.6%. ### Social Protection and Welfare - Financial support to needy destitute and families: 660 destitute persons benefited from the relief assistance fund. - Food rations distributed to families of people living with HIV/AIDS; education sponsorship provided to their children. - Foster Care Programme ongoing; increase in abandoned babies noted though statistical data unavailable. - Decentralizing Social Welfare services into three divisions: URD, CRD and LRD to improve rural access. - HIPC funds: estimated four hundred thousand Dalasis disbursed to three disabled organizations (GOVI, GADH, GAPD) for financial protection in accessing health. - Seventeen (17) disabled persons benefiting from HIPC fund for income generating activities. - Disaster Relief Assistance active for flood and fire victims. ### Cross-cutting issues — HIV/AIDS - 2004: The Gambia accessed Global Fund financing for an HIV/AIDS treatment, care and support project for September 2004 to October 2008. - Project goal: provide highest standard of available treatment, care and support to PLWHAs, accessible and affordable, reducing discrimination and stigma. - Project expanded access to services: VCT, PTCT, prevention and treatment of OIs, ART, Community Home Based Care. - NAS coordinating, collaborating with nine sub-recipients from public, private and NGOs. - HIV prevalence among women 15-49 attending antenatal clinic: HIV1 2.1%, HIV2 0.8% in 2004; epidemic described as on the increase. - Main challenges: - Coordination: weak coordination among stakeholders and donors; duplication of efforts. - Capacity: inadequate human resource capacity due to high attrition rate of nurses and other professionals. - Limited data on high-risk groups: sex workers, uniformed personnel, long distance truck drivers, fisher folks. - Actions needed: - Legalise NAS by an act endorsed by Parliament to strengthen coordinating mandate. - Mainstream HIV/AIDS into poverty reduction and national development programs. - Address cross-border issues through sub-regional initiatives (Health for Peace Initiative). - Promote accelerated training of nurses and doctors; create conducive working environment and incentive package. - Improve data availability through research and continuous updates. - Create a government budget line for NAS to ensure adequate funding. - Improve access to services, e.g. VCT in rural areas. - Close gap between knowledge and behavior. - Address stigma, discrimination and denial. - Support and coordination gaps: implementation of the Three Ones is identified as a missing element: - One agreed HIV/AIDS Action Framework. - One National AIDS Coordinating Authority with broad multi-sector mandate. - One agreed country level Monitoring and Evaluation System. - Requested support: - Technical assistance on research, data collection, analysis and reporting. - Acquiring data on behavioural and biological indicators among most-at-risk groups. - Assistance in human resource development and retention. - Role of PLWHAs societies: active and visible; public declarations by members helped humanize the epidemic. ### Cross-cutting issues — Gender - Women’s Bureau shifted role from implementation to coordination; retains Advocacy, Research and Monitoring and Evaluation roles. - DFID support rehabilitated most Community Video halls; further work needed. - Sensitisation and group discussions with women on HIV/AIDS; Population Taskforce of Gender and Development Project sensitizing communities on population issues. - Traditional Communicators and theatre groups trained on population issues, HIV/AIDS, CEDAW and NPAGW. - SDF and LIF provided micro credit, labour saving devices and storage facilities to women in five rural divisions. - CSIP provided women access to functional literacy combined with skills training and income generating activities. - Presidential Empowerment for Girls Education Project and Jammeh Foundation increased girls’ access and retention via scholarships and incentives. - School curriculum reviewed to be more gender sensitive. - National Conference on Women and HIV/AIDS held during 2004 National Women’s week. - Sectoral Investment Programme (SIP) for gender mainstreaming into PRSP developed with SPACO. - Women’s access to productive resources improved via small loans/grants financed through a Taiwanese grant; government subvention loan in progress. - Additional labour saving devices (coos mills) from UNFPA; resources from GGC to pilot women’s groundnuts marketing programme. ### Cross-cutting issues — Youths - Youths now treated as a priority; several studies on youth and poverty by SPACO with Department of State for Youths and Sports funded by UNESCO. - Programme for mainstreaming youth into PRSP being developed for next PRSP. - National youth policy outlines empowerment to realize potential for sustainable and gender responsive development. - Early implementation educated and trained youths in professional and skills development, Youth and Health, Youths against HIV/AIDS, youth entrepreneurship and peace building. - National Enterprise Development Initiative (NEDI) trains youths in basic business skills. - Partnerships with Action Aid The Gambia, UNFPA, UNICEF, NAS, NAYAFS on food security, responsible behaviour, HIV/AIDS. - Many youths trained in food production contributing to the productive sector. - Training of staff in management and professionalism pursued; National Sports act formulated aligned with Vision 2020. ### Cross-cutting issues — Environment - Policy frameworks: Gambia Environment Action Plan (GEAP), Vision 2020, MDGs, PRSP. - NEA coordinates and implements GEAP, controls pollution, conducts Environmental Impact Assessments (EIA). - NEA activities: continuous assessment and monitoring of pollution and environmental hazards; monthly environment cleaning; removal of derelict vehicles; pesticide analyses; EIA handbook developed. - Public awareness: NEA Environment Open Days, school quizzes, press releases, Gambia Environmental Newsletter, free three-digit environment complaint telephone line (167). - NEA implements Multilateral Environment Agreements (MEAs): Montreal Protocol on ODS, UN Convention to Combat Desertification (CCD), UN Convention on Biological Diversity (CBD), Protocol to phase out POPs, UNFCCC, among others. - NAP mainstreaming: recommendation to submit NAP and allied action plans for biodiversity and climate change as NEA’s investment programme under SPA II; recommendation adopted by National Validation Workshop in September 2001. - NAP is almost fully mainstreamed into SPA II / PRSP; eight out of twenty-five priority issues yet to be mainstreamed per National Report on CCD implementation. - National Environmental Youth Corps (NEYC) and Cap 2015 engaged in poverty reduction and natural resources management. - NEYC activities: afforestation, horticulture, floriculture, eco-tourism, bee keeping, waste management, livestock management. - 465 youths trained in 26 groups in four regions (Western, North Bank and Upper River Divisions and the Kanifing Municipal Council) with an average earning of D3000 in 2004. - Coastal Protection Project completed in 2004: - Protected coastline from Banjul Ferry Terminal to Hotel Resort Area via revetment groynes and beach nourishment. - Built capacity of Coastal Zone Management Unit (CZMU) at NEA. - Restoration considered essential for tourism development. ### Cross-cutting issues — Nutrition - Achievements in control of micronutrient deficiencies. - National Vitamin A Supplementation Programme (initiated 2000) ongoing: - 52% of children 6 – 59 months received at least one dose during MCH services. - 91% received vitamin A during National Immunization Days (NIDs). - Iodine Deficiency Disorders actions: - NaNA and partners working with salt producers to improve production and iodisation. - Iodisation plant supported in Sami, North Bank Division; Bintang communities supported to commence production and iodization. - Sami Salt Company produces iodised salt; WFP procured 82 tonnes for School Feeding Programme. - National Food Bill drafted to include food fortification; when enacted will enforce production, importation and sale of iodized salt. - National household consumption of iodized salt (2003): - Banjul/KMC: 8.3% - Western Division: 0.3% - NBD West: 1.7% - NBD East: 10.0% - LRD: 15.0% - CRD: 42.2% - URD: 36.7% - The Gambia: 13.3% - Dietary diversification promoted through nutrition education and community gardens established in 11 communities with NaNA support. - National Nutrition Surveillance Programme: - Biannual surveillance since the 1980s of children under 5 by Community Health Nurses in PHC villages. - At each surveillance about 50,000 children are assessed nationwide. - Trends of wasting (low weight for height) monitored over the past ten years (figure presented in source). *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* ### CHAPTER 4: ### CHAPTER 4: CONCLUSIONS AND RECOMMENDATIONS ### 4.1. Introduction - Long Term Goal of SPA II: eradicate poverty by significantly increasing National Income through stable economic growth and reducing income and non-income inequalities through specific poverty reduction priority interventions. - Five main objectives pursued: - Create an enabling policy environment to promote economic growth and poverty reduction. - Enhance the productive capacity and social protection of the poor and vulnerable. - Improve coverage of the basic social service needs of the poor and vulnerable. - Build the capacity of local communities and Civil Society Organisations (CSOs) to play an active role in the process of poverty reduction. - Mainstream poverty-related cross-cutting issues into SPA II. - Implementation coordination: Strategy for Poverty Alleviation Coordination Office, SPACO, within the Department of State for Finance and Economic Affairs (DOSFEA). - At the start of the PRSP period in January 2003: - The Gambia was on a PRGF program with the IMF and had accessed $62 million (m) from the multilateral donors through the HIPC decision point window. - $135m was expected at HIPC completion point. - Setbacks during PRSP implementation: - Slippages in financial governance, including misreporting by the Central Bank, led to suspension of the PRGF. - Regular independent audits of Central Bank operations have since been instituted and are operational. - Government revenue contracted and domestic debt became unsustainable, undermining budgetary expenditure on priority PRSP sectors. - Challenge to ring fence spending for priority PRSP sectors amid dwindling budget resources. - Institutional framework formation for PRS implementation suffered considerable delay, leading to lack of ownership by Departments of State and misunderstandings on priorities after the Geneva Round Table Conference. ### 4.2. Progress on SPA II Action Plan (2003-2005) - Expected impacts, outputs, and progress: - Increased security against macro-economic instability - Output: Memorandum of Economic and Financial Policies for 2003-2005; a Staff Monitored Program between GOTG and the IMF is being implemented. - DOSFEA exploring a Domestic Debt Fund (DDF). - An Aid Coordination Unit established at DOSFEA and should be operational by early 2005. - Improved Coordination and Funding of the Social Sectors Investment Program - Output: Program-based SWAp arrangement for Health, Education, Agriculture, and NP&HIV-AIDS. - DOSE SWAP finalised and being implemented. - Health PER up-date to identify basic health services for the Health SWAP. - DOSA PER up-date to be conducted after re-appraisal of Agricultural Policy. - Cabinet memorandum on operationalisation of the UFF completed. - Improved coverage, efficiency and sustainability of basic social services - Output: Achievement of social sector targets. - Acute resource requirements emerged due to effect of debt servicing on allocations to Social Sectors. - Addressing Domestic Debt expected to free more resources for social sectors. - Improved Management of Public Enterprise Sector - Output: A multi-sector Regulatory Agency. - Public Utilities and Regulatory Authority established and gradually becoming fully operational. - A Social Fund for protection of the poor and vulnerable - Output: Direct Funding for a Country Risk Management Framework. - WB, ADB, IFAD and EU agreed in principle to coordinate interventions within a CDD / Social Fund program; GOTG working to finalise institutional arrangements and convene consultations with partners. - Improved infrastructure for economic empowerment and private sector development - Output: Public Infrastructure Investment Program. - Road infrastructure expanded significantly, mainly through external financing. - A PER completed for the infrastructure sector to rationalise capital expenditure and identify measures to sustain recurrent cost implications. - A road transport authority has been set up by government. - Enhanced participation of CSOs at Macro-, Meso- and Micro- Levels - Output: A Secretariat to coordinate Civil Society engagement in SPA II Process. - Pro-Poor Advocacy Group (NGO funded mainly by DFID and action aid and subvented by Government) in operation since 2002; undertaking participatory budgeting and social accountability exercises with grassroots communities. - Thematic group on participation and participatory processes actively engaged with grassroots institutions. - Enhanced Monitoring of SPA II processes, outputs and outcomes - Output: A Poverty Monitoring System and a feedback mechanism to decision-making. - Poverty Monitoring Strategy finalised and validated in 2003, integrating MDG monitoring. - Capacity assessment for implementing the PMS effected; funding measures being discussed with UNDP. - Discussions held with Local Government Authorities for decentralised poverty monitoring activities. ### 4.3. Major constraints/challenges - Budgetary financing and debt: - Government committed in the PRSP to utilising 25% of its budgeted GLF revenue to reduce poverty; actual expenditure fell short of the target. - Shortfall attributed mainly to high cost of servicing government rising debt stock which continues to consume more than half of government resources. - Reforms underway in the budget process to ensure focus on priority sectors and better measurement of impact. - Commitments and pledges from the Geneva roundtable in 2002 were not honoured, causing serious shortfalls in revenue targets. - Institutional delays and ownership: - Delays in development of institutional frameworks for PRSP programs resulted in lack of ownership by Departments of State and misunderstandings on priorities post-Geneva Round Table. - Progress toward setting up a Unified Funding Framework (UFF) for poverty reduction is underway. - An Aid Co-ordination Unit and a Central Projects Management Unit have been set up within DOSFEA. - Human resource scarcity and capacity constraints: - High attrition rate and turnover in the civil service led to major capacity constraints and declining absorptive capacities. - Scarce technical and financial resources aggravated implementation bottlenecks. - Serious human resource constraints across all sectors led to: - Sector investment programmes being undeveloped. - Non-existence of linkages between sector policy and budgets. - Non-finalization of provisional costing of the PRSP programme. ### 4.4. The Way forward - Core issues to address: - How to accelerate the slow pace of implementation in the last year of the PRSP implementation and in the next PRSP cycle. - Enlargement and increased intensity of broad-based participation of all stakeholders in PRSP implementation and monitoring. - Capacity-related priorities: - Address capacity gaps at policy, sector and LGA levels caused by inadequacy of skills, weak systems and processes, high civil service attrition, and slow decentralization and local government reform. - Need for government to critically review implementation and incorporate lessons learnt. *Department of State For Finance and Economic Affairs: PRSP Annual Progress Report; 2004* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06396.pdf_