Hon. Stephen Dhieu Dau: High expectations to curb the current economic crises
By Maliap Madit Mabior, Kampala, Uganda
August 17, 2016 – Despite the fact that the economic crises our country is undergoing through are hard for one to place hope on someone tasked with the responsibility of managing our National Ministry of Finance and Economic Planning – MoFEP, one would still mention a word just because we live on hopes that things will work out.
Yes, the top objective of the Ministry of Finance and Economic Planning is managing public finances ensuring transparency and accountability – catering for government sectors financially and streamlining tax collection countrywide. If one could ask, has the ministry (previous ministers) adhered to this objective? Certainly we may or not have the answers.
However, it’s worth mentioning that the ministry or country has registered a number of successes since its inception (2005, 2011 – 2016) under different ministers. In 2012 – 2013, South Sudan was voted as the fastest growing country ever because of the initial promising start but then reversed. Yes, these crises could be blamed on political instability in the country. But from economic view point, it is wise saying that these economic hardships aren’t only politically created but weak economic – financial polices also added on. And with that, let me take you through the vision and mission statements of our Ministry of Finance and Economic – MoFEP.
The Vision Statement – it reads, “Strive for accountability and transparency in all public spending agencies.” On the other hand, The Mission statement states, “Mobilize and manage resources effectively and allocate them equitably for sustainable service and socio-economic development.” The question is, has the ministry stayed up to these statements?
Initially, our economy was a little bit promising and of course we appreciate the little done in the previous years. Now, things are almost out of hand. Why? Yes, The Republic of South Sudan is a petrodollar country which no one would aspect to see it suffering like this. Why?–policies. In a generalized aspect, some failures could be international such as the fall in the global oil prices but does a fall in oil prices calls for our suffering? Obviously, a big NO. These has been evidence by continuous increases in the prices of essential commodities such food, water, ex ce tra. Economists would go ahead and say that these hardships increased interest rates, costs of funding (government or private), opportunity cost of lending, specific risk of default, as well as transaction cost of savings and worst of all – the hyper inflation or the devaluation of our currency against foreign currency and particularly dollar in this case.
The current Consumer Price Index (CPI) or Retail Price Index (RPI) stands at 661.3%. What does it mean to low income earners? It means “no family” is able to get more than one meal a day. Other families or people have already forgotten tea or breakfast in order to save for that one and only meal. Generally, the rich and the poor are alike or all suffering and I am of the view that we shouldn’t be surprise if we see more corruption cases because what people have isn’t enough to sustain a living and so one supplement using public funds within his or her reach.
The ways forward – Economic Recovery Reforms
Yes, we (South Sudanese) are not all policy makers either political, economic, social and technological but this can’t prevent a mere citizen from speaking out his mind regardless of his/her economic class and of course we (the last economic class) would want our ideas also taken because once they are implemented, all classes (people) will appreciate as the rich will be speaking millions, billions, trillions and the poor will be thankful for having two meals a day. Here are some few economic recovery measures which would curb inflation and possibly the entire crises.
Currency reforms measures – These involve circulation, regulation and control of exchange rates. By controlling the circulation of money in the economy – hard or local currencies, we are looking are maintaining the certain amount of monies in circulation. Regulating and controlling the exchange rates is another tool which plays a leading role in managing an economy. Stabilization of economy which can best be done by restrictive monetary policies, liberalization of consumer and produce prices to get a competitive market as well as deregulation of interest rates.
Another measure is a progressive movement towards a market determined exchange rates and strengthening the balance of payments (BOP) but this can only be achieved if we are exporting other commodities in addition to oil. Thus, this calls for improvement of agricultural and industrial sectors.
Fiscal operating and tax reforms – For years the VIPs, (The Very Improved Peasants) have been paying taxes which are assumed to be given back to them inform of social amenities such security, schools, health centers, cleaning drinking water, good roads, electricity, banking services. Of late the peasants or poor down there in the remote villages have just discovered that these taxes don’t even reach Juba and the question is, where does it end? The main objective of levying taxes on citizens is to back up other sources of national incomes giving raise to greater Growth Domestic Products (GDP).
Cutbacks, we don’t know how much funds are spent by government spending agencies but then do these agencies deliver the right services? This calls for clear allocation of funds equitably and possibly the underperforming agencies’ budgets get reduced.
Finally, the development of key economic sectors such as transport facilities – (tarmac roads and bridges, river ports, airports) and modernization of agriculture through irrigation, commercial agriculture, ranching, dairy among others. Yes, the president donated tractors meant for boosting agriculture in an attempt to fight food insecurity but who is following up the use of those tractors now? I believe the tractors are busy in government officials’ farms now instead of government or state owned farms. In other words, our problem isn’t getting ideas but implementation.
Whilst in the Ministry of Mining, Hon. Stephen Dhieu left no stone unturned. Hence, seeing him achieving success will be our joy though it’s a paraphernalia task for the minister given these crises. Some elements of vitiation had hand in our suffering in the nick of time but I’m hopeful that Hon. Stephen will render right services if given support by both government and citizens.
Oh God Bless South Sudan!!
The writer is a South Sudanese and can be reached via email; maliapmadit2016@gmail.com, +2567842297377
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