Aid Flows and Policy Reforms: A General Equilibrium Analysis of Adjustment andthe Poor in The Gambia

摘要

The Gambia's Economic Recovery Program is an example of a structural adjustmentprogram which significantly increased economic equity in the country. Thus concludes this study, which uses a computable general equilibrium (CGE) model to examine the program's effects on economic growth and income distribution. The study first describes the Gambian economy and discusses the country's experiences during the past decade of policy reform and structural adjustment, with specific emphasis on policies that had the greatest impact. The Gambia CGE model is then described in detail, and simulations of external shocks and policy measures undertaken as part of the Economic Recovery Program are presented. The study concludes that for the most part the improvements in income level and income distribution that occurred in The Gambia were the result of changes in exogenous factors and increased capital inflows, and not the direct results of policy reform.