The hyperinflation level in the country is alarming and even more frustrating to average Gambians. It’s quite disappointing that the Barrow administration had woefully failed to control and properly manage inflation due to the ill-advised, cunning and manipulative nature of his ex-Minister of Finance.
The reason for such a predicament was the continued use of expansionary fiscal policy without paying due regard to the economic prospects of the country.
It is in view of this background that I wish to congratulate the new Minister of Finance and Economic Affairs, Seedy Keita.
Honourable Minister, I am of the strongest conviction that you have been given a daunting task to restore the already broken economy and curb the very worrisome situation of double-digit inflation. You can’t do anything in this very ministry if you follow the footsteps of your predecessor and disregard all opinions from experts and concerned citizens.
Inflation occurs when spending on goods and services outstrips production; this has been the order of the day for the past five years.
To restore and build our confidence, I believe there isn’t a better time than now to commence contractionary monetary policy. Today, contractionary monetary policy is among the most popular methods of controlling inflation. For Gambians to live in a dignified life and make the very best of their money, I think such a policy will be of significant benefit to the masses.
However, the Gambian market appears to be more oligopolistic than a competitive one as the current situation fulfils all the characteristics of an oligopolistic market.
Among the features of an oligopoly are few firms with large market share, high barriers to entry, and higher prices as well.
The oligopolistic nature of this market, has, over the years, seriously hampered the efforts of some Gambians as many believe the market is controlled by foreigners and they prefer not to compete with Gambians. Till such a syndrome is tackled, it will be difficult for Gambian businessmen to penetrate the market as we wish.
Having served at the Trade Ministry; Hon Minister with the abysmal performance without much blame, I believe you can do better if you stick to your oath of office and have a sense of nationalism.
Together, we can create a perfectly competitive market which shall exist not by name but by reality.
BSc; Islamic Banking and Economics