d Reunion.

Gabon
Gabon enjoys a per capita income four times that of most
nations of sub-Saharan Africa. This has supported a sharp decline in
extreme poverty; yet because 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. Devaluation of its Francophone currency by 50%
on 12 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 mandate
progress in privatization and fiscal discipline. France provided
additional financial support in January 1997 after Gabon had 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
in 1999-2000 helped growth, but drops in production hampered Gabon
from fully realizing potential gains. 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. 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 important mineral or other natural
resources 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 government's 1998 seizure of the private peanut firm
Alimenta eliminated the largest purchaser of Gambian groundnuts; the
follow