A leading economist warns against using higher borrowing costs to fight rising prices in The Gambia. Dr Foday Joof says this method fails because it copies rich country policies that do not fit African economies. He compares the strategy to using tiny amounts of water against large fires. The approach treats foreign price increases with local solutions that cannot work. African central banks copy frameworks from the United States and Europe without considering local conditions.
Gambian price increases come from currency problems and heavy dependence on foreign goods. Climate damage to farming also drives up costs for basic items. Most families spend four-fifths of their money on food and housing expenses. Many essential food products come from other countries through expensive imports. Higher borrowing costs damage local businesses and make government debt more expensive to service.
The economist criticizes the belief that strong money systems exist across developing nations. Most African countries have weak lending markets and limited credit access for businesses. Their productive sectors cannot respond effectively to policy changes through interest rates. Dr Joof describes current central bank policies as dangerous economic betting. Officials hope expensive loans will reduce inflation but actually slow economic growth instead.
The expert urges local policymakers to focus on creating jobs for citizens. He wants officials to resist outside pressure to adopt foreign money policies without proper changes. Leaders should study their people and design policies that address real local problems facing their economies.
Gambian price increases come from currency problems and heavy dependence on foreign goods. Climate damage to farming also drives up costs for basic items. Most families spend four-fifths of their money on food and housing expenses. Many essential food products come from other countries through expensive imports. Higher borrowing costs damage local businesses and make government debt more expensive to service.
The economist criticizes the belief that strong money systems exist across developing nations. Most African countries have weak lending markets and limited credit access for businesses. Their productive sectors cannot respond effectively to policy changes through interest rates. Dr Joof describes current central bank policies as dangerous economic betting. Officials hope expensive loans will reduce inflation but actually slow economic growth instead.
The expert urges local policymakers to focus on creating jobs for citizens. He wants officials to resist outside pressure to adopt foreign money policies without proper changes. Leaders should study their people and design policies that address real local problems facing their economies.
