Financial markets in The Gambia, 1981-91

Banks, cooperatives, village savings and credit associations, non-governmental organizations, private traders, suppliers, and microentrepreneurs are examined in terms of the magnitudes of their financial activities, the nature of the financial services that they offer, the markets in which they operate, the clientele they serve, and the efficiency of their operations. Chapter one reviews the formal banking system in The Gambia, examining such issues as the impact of stabilization and privatization drives, the lack of incentives for savings, institutional instability, and urban bias. Chapter two documents the financial activities of NGO"s, especially in rural areas. Chapter three summarizes the history of the Gambia Cooperative Union since its privatization in 1988, with a focus on its performance in input, output, and financial markets before and after privatization and on its current credit and savings programs. Chapter four evaluates the UN Food and Agricultural Organization"s (FAO) program to distribute fertilizer and the potential for privatizing this program. Chapter five documents the performance of the Village Savings and Credit Associations in the Sapu region; these organizations, with donor assistance, successfully supply a range of financial services. The sixth chapter evaluates the performance of the public sector Indigenous Business Advisory Service in promoting microentrepreneurs. Chapters seven and eight examine commodity and financial flows in the fertilizer and food commodity (rice and flour) sectors, respectively. Policy recommendations are included.