Further outlining the country’s economic indicator from 2006-2013, the IMF local rep pointed out that the Gambian economy has been progressing. He explained that if a country is experiencing economic growth with high revenue, it always has the potential to create more and more jobs.

IMF’s financial assistance

Commenting on other areas, he explained that part of IMF’s mandate is to render financial assistance to member countries, which provides them the breathing room needed to correct problems relating to balance of payments. 

Mpatswe also explained that a policy programme supported by IMF financing is designed by the national authorities in close cooperation with the global economic institution, but noted that continued financial support is conditioned on the effective implementation of this programme.

“In an early response to the recent global economic crisis, the IMF strengthened its lending capacity and approved a major overhaul of the mechanisms for providing financial support in April 2009, with further reforms adopted in August 2010 and December 2011,” he indicated.

He continued: “In the recent reforms, the IMF lending instruments were improved further to provide flexible crisis prevention tools to a broad range of members with sound fundamentals, policies and institutional policy frameworks. In low income countries, the IMF doubled loan access limits and is boosting its lending to the world’s poorest countries, supported by the windfall profits from hold sales with interest rate set at zero through 2014 year’s end.” 

Technical assistance

The IMF rep also informed that the institution provides technical assistance and training to help member countries strengthen their capacity to design and implement effective policies. “Technical assistance is offered in several areas, including tax policy and administration, expenditure management, monetary and exchange rate policies, banking and financial system supervision and regulation; legislative frameworks as well as statistics,” he further explained.

Role of IMF

Further giving an insight into the operations of the IMF, Mpatswe noted that the institution works to ensure the stability of the international monetary system; system of exchange rates and international payments that enable countries and their citizens to transact with each other.  

This mandate, he went on, is essential for promoting sustainable growth, increasing living standards and reducing poverty. He elucidated further that the institution that was created in 1945 is accountable to the 188 countries that make up its near global membership. To this end, the resident coordinator explained in detail the different but complementary roles of the IMF and the World Bank, which were created on the same day. 

“The IMF focuses on stability and growth of economies whereas the World Bank concentrates on long-term economic development and poverty reduction,” he concluded.