Economic stabilization: How to get rid of black market in South Sudan (Part 1)
By Baak Chan Yak Deng, Juba, South Sudan
March 22, 2017 (SSB) — A parallel market, popularly known as black market, is a market whereby goods or service are traded illegally. The illegal economy consists of the income generated by engaging in the production and distribution of prohibited goods and services such as prostitution, illegal drugs dealings and smuggling of contraband weapons or ammunition.
According to scientific American Journal, says around 1.9 billion people are engaged in the black market. Every country has been spending a considerable amount of money and time but they all failed to eradicate black markets.
Take example of USA who spends billions of dollars annually to fight the war on illegal market but there are stills numerous numbers of black market in America today. “With estimates of $ 100 to 110 billion for heroin, cocaine and $ 150 for synthetic drugs”
The probable large-scale figure for the total illicit black market would be approximately $ 360 billion. As this statistics show, the world cannot simply get rid of the black market using money or military power.
Therefore, we need to find the most fundamental method that can help us to fight illegal markets without spending huge amount of money. I believe that the most effective methods would be a prohibition of using paper money so that the Government can trace the outflow and inflow of exact amount of money.
In addition, the Government also should relax regulations on illegal activities so black markets disappear without using money or other enforcement including military power.
When we consider a key distinction between paper money and electronic money or credit cards, it is easy to understand why most crime organizations or crime syndicates use paper money for their transactions. This is because they heavily rely on intractability and anonymity of money.
If the world only uses electronic money, it would be so much easier to track illegal transactions. Of course, it is nearly impossible to prohibit the use of paper money since negative side effects will come along but it worth a try considering the volume of illegal black market, which is approximately $ 360 billion.
Another method would be alleviating regulation on illegal markets. It is undeniable fact that black markets will not disappears as long as what people want to buy or sell are prohibited by Government.
If South Sudan Government cannot prohibit freedom of action in respect of one’s own body, I would recommend the Government to legalize the use of black markets and drugs so that they can get tax from it.
It is evident that we can collect a huge amount of tax when we consider the amount of marihuana or other illegal drugs that are being traded every day.
The author, Baak Chan Yak Deng is an economic communicator of south Sudan, a graduate in Bachelor of Science in Accounting and Finance at Star International University College South Sudan affiliated to Busoga University of Uganda and can be reached at baak.maker44@gmail.com or 0954020202
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