Economic hardship also weighed heavily on the Daddah regime. During 1977, defense expenditures increased as international demand for iron ore (Mauritania's major source of foreign exchange) fell. Drought conditions that devastated crops and herds further strained the economy. MauriÍÍÍÍtania survived only with the help of grants and loans from Saudi Arabia, France, Morocco, and Libya.

In January 1978, during a special congress of the PPM, Daddah unsuccessfully tried to seek a path out of the Western Sahara war however, the increasingly isolated leader proved unable to undertake any diplomatic or political initiatives. In addition, relations between Daddah and senior army officers were strained because the president constantly shifted senior officers from posting to posting to guard against a possible coup.

In February 1978, in a desperate move, Daddah appointed Colonel Mustapha Ould Salek to be army commander. In the late 1960s, Daddah had relegated Salek, who was suspected of proFrench leanings, to the reserve corps. (Salek had reentered active duty only in 1977, when he was made commander of the Third Military Region, at Atar, and relations between Daddah and Salek were still strained.) On July 10, 1978, the newly appointed army commander led a group of junior officers in the bloodless overthrow of the eighteen-year-old Daddah government.

Data as of June 1988