1988 the government had announced implementation of many IMF and AID-encouraged structural adjustment policies. In regard to foreign exchange, the government had taken many intermediate steps that would lead to the merger of the pegged and market rates. As for banking, legislation had been enacted allowing private banks to operate. In public finance, the government had reduced its deficit from 10 to 7 percent of GDP, as had been advised, but acknowledged that the increased taxes on fuel, rent, and sales had been only partially implemented. A value-added tax on fuel imports remained under consideration, but the tax on rental income had been increased and the sales tax raised from 5 to 10 percent. The government continued to procrastinate concerning public enterprises, holding only informal discussion of plans to liquidate unprofitable enterprises. With the devaluation of the shilling, the real cost of foreign grain became apparent to consumers, and the relative price of domestic grain rose. Rectifying prices induced a 13.5 percent increase in agricultural output between 1983 and 1985. Inflation was tamed as well, falling from an annual rate of 59 percent in 1980 to 36 percent in 1986. World Bank officials used these data to publicize the Somali success in structural adjustment. The overall picture was not that encouraging, however. Manufacturing output declined, registering a drop of 0.5 percent per annum from 1980 to 1987. Exports decreased by 16.3 percent per annum from 1979 to 1986. Moreover, the 0.8 percent rise in GDP per annum from 1979 to 1986 did not keep up with population growth. World Bank estimates put Somalia's 1989 GNP at US$1,035 million, or US$170 per person, and further estimated that between 1980 and 1989 real GNP per person had declined at 1.7 percent per year. In the period from 1987 to 1989, the economic results of agricultural production were mixed. Although corn, sorghum, and sugarcane were principal crops, livestock and bananas remained major exports. The value of livestock and banana exports in 1989 (the latest year for which data were available in May 1992) was US$26 million and US$25 million, respectively. Livestock, consisting primarily of camels, cattle, goats, and sheep, served several purposes. The animals provided milk and meat for domestic consumption, and livestock, hides, and skins for export. As a result of the civil war in many areas, the economy deteriorated rapidly in 1989 and 1990. Previously, livestock exports from northern Somalia represented