of high income inequality,
a large proportion of the population remains poor. Gabon depended on
timber and manganese until oil was discovered offshore in the early
1970s. The oil sector now accounts for 50% of GDP. Gabon continues
to face fluctuating prices for its oil, timber, and manganese
exports. Despite the abundance of natural wealth, poor fiscal
management hobbles the economy. The devaluation of the CFA franc -
its currency - by 50% in January 1994 sparked a one-time
inflationary surge, to 35%; the rate dropped to 6% in 1996. The IMF
provided a one-year standby arrangement in 1994-95, a three-year
Enhanced Financing Facility (EFF) at near commercial rates beginning
in late 1995, and stand-by credit of $119 million in October 2000.
Those agreements mandated progress in privatization and fiscal
discipline. France provided additional financial support in January
1997 after Gabon met IMF targets for mid-1996. In 1997, an IMF
mission to Gabon criticized the government for overspending on
off-budget items, overborrowing from the central bank, and slipping
on its schedule for privatization and administrative reform. The
rebound of oil prices since 1999 have helped growth, but drops in
production have hampered Gabon from fully realizing potential gains,
and will continue to temper the gains for most of this decade. In
December 2000, Gabon signed a new agreement with the Paris Club to
reschedule its official debt. A follow-up bilateral repayment
agreement with the US was signed in December 2001. Gabon signed a
14-month Stand-By Arrangement with the IMF in May 2004, and received
Paris Club debt rescheduling later that year. Short-term progress
depends on an upbeat world economy and fiscal and other adjustments
in line with IMF policies.

Gambia, The
The Gambia has no confirmed mineral or natural resource
deposits and has a limited agricultural base. About 75% of the
population depends on crops and livestock for its livelihood.
Small-scale manufacturing activity features the processing of
peanuts, fish, and hides. Reexport trade normally constitutes a
major segment of economic activity, but a 1999 government-imposed
preshipment inspection plan, and instability of the Gambian dalasi
(currency) have drawn some of the reexport trade away from The
Gambia. The Gambia's natural beauty and proximity to Europe has made
it one of the larger markets for tour