1.3.5 Governance Challenges

Good governance is a key determinant of the capacity of the public sector to deliver goods and services. According to the World Bank Institute’s governance indicators, the country ranks poorly on government effectiveness, voice and accountability and control of corruption. A legacy of authoritarianism, weak public institutions, political instability, and the limited capacity of the public administration are the most salient causes of state fragility in the country. There is little fiscal space for inclusive growth and improvement of the Gambian economy due to growing debt stock. This has resulted in poor investment in the areas of energy, agriculture, and other utility services for the poor.

Heavy dependence on agriculture, tourism, and a small service sector, coupled with a legacy of unsustainable macro-fiscal management has increased the economy’s sensitivity to external shocks.A combination of slow economic growth, limited employment prospects, political instability and food insecurity has driven a dramatic increase in emigration. The implications are mixed for fragility and resilience. While the loss of skilled labor has long slowed the country’s economic development, remittance income is an increasingly crucial component of household consumption.