THE IMPACT OF GLOBAL TRADE WAR ON THE ECONOMY

The Gambia must decide between the power and influence of America and the power and influence of China in terms of its trading relations specific to the current war on tariffs on imports and exports of goods. This global war on tariffs will have a great impact on the world economy. We have seen the devastating impact on the world economy due to the Russia- Ukraine war of which the Gambia was no exception. This global trade war should be an eye opener for this country and for the rest of the continent. Our national sovereignty and independence is best guaranteed by our economic independence. A producing country rather than an importing country enhances competitiveness and tangible returns in global trading. In this regard, the priority should be agriculture take-off through commercial production. Then comes manufacturing and technological innovation. The dependency syndrome on foreign aid in a volatile international geopolitical and financial situation, has become increasingly unpredictable means of support for African development. A case in point, is the ‘America First’ economic policy of the Trump Administration. The withdrawal of USAID funding has negatively impacted on the Gambia’s transitional justice framework. These unforeseen circumstances in international cooperation and in the world economic order, goes to show that we are on our own as a country and by our own efforts, we must earn our keep. The dependency culture is an obstacle to sovereign responsibility and independence. A production and export oriented economy is either the key or answer to sustainable development. The fundamental problem in Africa is that when Independence was achieved from Colonial Masters, African countries rushed to copy Western civilization without paying much attention to the development and underdevelopment trajectory of both sides of the equation. African governments started with white elephant projects and engaged in conspicuous consumption. Hence the continent has been largely trapped in poverty and underdevelopment. Therefore, despite the efforts at development, Africa and including this country, is food poor and faced with a domestic economic crisis. The fundamentals of economic development are indeed wrongly executed. We cannot deny this Gambians! We must attack the productive sectors of the economy such as agriculture. fisheries, tourism and manufacturing for economic emancipation and National prosperity. This is the right development trajectory that will bring about sustainable development and make the country competitive in the global economy. We cannot afford to become victims of global trade wars and other unforeseen tensions and circumstances in the international environment.

We need to reexamine our development approach and to emphasize economic development rather than emphasis on recurrent budgeting. We need to look at countries like The People’s Republic of China. With hard work, discipline, a centrally planned economy, poverty was eradicated in that country as of 2020. A country of 1.4 billion people can feed itself and become a world exporting Nation. China has become a giant in progress and development. All this happened in a short period of time in the history of the country. The world now looks up to China for development partnership and cooperation. The steps the Chinese have taken to become a world power, from all indications, are focusing on the productive sectors of the economy. This direction is the logical answer and must form the cornerstone of the development agenda of the Gambia.