The Rapidly Deteriorating South Sudan Economic Troubles (Part 1)
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By Simon El Hag Kulusika, Lusaka, Zambia
Friday, September 18, 2020 (PW) — A few days ago Prof. Akim Ajieth Buny made comments to Radio Tamazuj on economic crisis in South Sudan. He suggested the government should rely on people with economic expertise to prevent the economy from collapsing. The suggestions are welcome and sensible, but they are useful for medium and long – term planning.
The economic troubles of SS require immediate remedial measures. especially in the areas of payment of wages and salaries including arears to stimulate the working forces to improve performance and productivity. This in turn calls for quick actions of identifying potential sources of revenues at all levels of government.
Governments the world over raise money through taxes, duties,, excises and so forth. They also print money. These sources of revenues would appear not to be operational for various reasons. Tax revenues come from individual’s personal income taxes.
These are not possible to collect due to none payment of wages and salaries for many months. social security and other insurance withholdings are also important revenues for government. These again do not make any contribution for obvious reasons.
The same can be said about corporations taxes. As a results of few money chasing high level of supply and services prices of goods, especially foods have gone up resulting in high inflation. attempts to control inflation by printing money led to high inflation taxes forcing many households to cut down on the three meals to two, one or zero with disastrous effects for many families. The worst is yet to come.
What should be done? A lot the government can do contrary to statement of minister of trade snd industry to the National Assembly. Government can stabilise the SS pound by increases in oil exports, improve in agri commodities exports, supply of livestocks to world markets by concluding agreements with foreign buyers: states or private companies.
Control of mining activities and sale of gemstones. Encouragement of people to get involved in honey production and its export.
This will require the revitalisation of key economic ministries and sectors to make them efficient to increase productivity in exports oriented sectorsTo explore the participation of SS in diaspora. Each household and each individual doing business or an academician or working with regional or international organisations should make an annual contributions to the National economy.
This to be called ‘national contribution for recovery’. It’s to be managed by an administrative body under supervision of a VP. In recognition of such contributions there should be incentives such as taxes rebates or grant of lands or plots free of charges. If such an arrangement is well executed it will reduce problems of foreign currencies.
To make the above meaningful, a vibrant monitoring and follow – up mechanisms should be instituted under direct control of the President. Such monitoring is necessary to avoid lapses and corruption.the SS pound should remain pegged tto the USA DOLLARS. It should be allowed to float against foreign currencies.
Also dealing in foreign currencies should be regulated with greater leeways given to Bureau De Changes. This will reduce the lawlessness of the Parallel markets.The above are to be considered as immediate measures not short – term actions. The people must get relief as soon as possible.
The author, Simon El Hag Kulusika, is a Prof of Laws, Zambian Open University, and can be reached via his Email address: pa352128@gmail.com or phone +260973711250
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