Gambia gained its independence from the UK in 1965; it formed a short-lived federation of Senegambia with Senegal between 1982 and 1989. In 1991 the two nations signed a friendship and cooperation treaty. A military coup in 1994 overthrew the president and banned political activity, but a 1996 constitution and presidential elections, followed by parliamentary balloting in 1997, completed a nominal return to civilian rule. The country undertook another round of presidential and legislative elections in late 2001 and early 2002. Yahya A. J. J. Jammeh, the leader of the coup, has been elected president in all subsequent elections.

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 following two marketing seasons have seen substantially lower prices and sales. A decline in tourism in 2000 has also held back growth. Unemployment and underemployment rates are extremely high. Short run economic progress remains highly dependent on sustained bilateral and multilateral aid, on responsible government economic management as forwarded by IMF technical help and advice, and on expected growth in the construction sector.¹⁶

GDP per capita is Intl $1214. This falls within the range of $8,272 ( Libya) and $346 ( Democratic Republic of the Congo) in the countries of Africa (Table 6).

Table 6 GDP per capita (Intl $): countries of Africa, 2001