Archive for the ‘Baak Chan Yak Deng’ Category


By Baak Chan Yak Deng, Gogrial, South Sudan

Kiir and Garang, liberation day

Dr. John Garang and Commander Salva Kiir Mayaardit, during the liberation era

April 14, 2017 (SSB) — The South Sudan currency crisis arose from a collapse of confidence in the ability of a number of countries to maintain their fixed exchange rates while continuing to allow the free movement of foreign finance capital at a time of increasing current account deficits.

The South Sudanese currency was initially not affected by the pressure on other regional currencies. When it begins to fall, however, the underlying weakness of the South Sudan financial sector was revealed and private foreign debt was far higher than previously thought. The crisis worsened in South Sudan because of the lack of an effective government policy response.

The International Monetary Fund (IMF) financial stabilization package agreed to by the South Sudanese Government contained conditions requiring South Sudan to reform its financial sector, reduce fiscal expenditure and radically change the nature of government involvement in the economy.

(more…)

Advertisements

A Powerful Solution to Our Current Economic Crisis

By Baak Chan Yak Deng, Juba, South Sudan

economy

April 5, 2017 (SSB) —- You know the feeling when the whole world has let you down.  Isn’t that what we are experiencing right now?  To get you in the right frame you know the feeling when the whole world has let you down.  Isn’t that what we are experiencing right now?  To get you in the right frame of mind, let me ask you this: What would you do if you were at the beginning stage of an enormous snowstorm that showed no signs up letting up?

Surely, to get ahead of it, you’d grab a shovel and start shoveling or jump in your car to buy the last snow blower on the floor.  Well, in our current economic mess, the solution is right in front of us, too.  Hire the best and brightest entrepreneurs (yes – that’s us!), and put them to work!  Who else is going to try something new that will shake us out of these tiresome doldrums?  Here are ten things entrepreneurs can do that make them smart power resources.

(more…)


By Baak Chan Yak Deng, Juba south Sudan

unity of nuer and dinka

April 3, 2017 (SSB) — South Sudan’s economy is only one of the factors that divides the country, encourages violence, has led to civil conflict, and has helped empower IO. Sectarian and ethnic divisions, population pressure, religious extremism, intervention from outside states, poor and grossly corrupt governance, authoritarianism, and a fractured political system have all made their own contribution to the present level of violence in what in many ways has long been a failed state.

What is possible is to provide an overview of the complex interactions between economics and the other factors driving violence in South Sudan, and the extent to which South Sudan’s deep structural economic problems interact with its sectarian and ethnic divisions, help empower SPLA, and help increase the tensions between Dinka and Nuer.

(more…)


By Baak Chan Yak Deng, Juba, South Sudan

salary

salary

March 28, 2017 (SSB) — Black markets typically exist because the regular markets are not going to provide a seller the highest possible revenue for an item he has for sale. Because black markets are illegal, the seller requires a substantially higher price than he would get on a legal market.

Reasons for regular markets to not support the higher price would be that the item being sold is illegal or the item being sold has some kind of price control on it that prevents the seller from getting the full amount a buyer is willing to pay.

Illegal items can include goods that have been banned, or goods that have been stolen and cannot be represented as legally obtained by the seller. Examples of banned items are certain arms and ammunition, drugs, books, videos and other compilations of information or ideas that have been prohibited in that jurisdiction.

(more…)


By Baak Chan Yak Deng, Juba, South Sudan

salary

salary

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”

(more…)


By Baak Chan Yak Deng, Juba South Sudan

salary

salary

March 21, 2017 (SSB) — As I said in Monday’s article that government needs to stop emphasizing the need for austerity and hard times.  Yes I agree on ‘growth’ but we don’t understand how to achieve sustainable growth. This can only come from either continuing to increase the South Sudan’s population or by continuing to improve efficiency.

The first is clearly impossible as we would bust at the seams. This means the only choice we have is INVESTMENT and in the RIGHT areas. Our politicians and most economists do not understand this. I believe that I have some of the answers.

Investment is a good idea however, going back to basics, investment alone will not stimulate the economy, and firstly you need real demand for products and services. That comes from me and you the consumers providing there is the disposable income available, with wage restraints and uncertainty in the economy this will take time.

(more…)


By Baak Chan Yak Deng, Juba, South Sudan

salary

salary

March 18, 2017 (SSB) — For the South Sudan, I really feel the economy could be helped, if there is strong and decisive leadership. The fundamental thing is the government need to stop emphasizing the need for austerity and hard times. This is currently trying its best to take us into a recession. It is not just a fiscal crisis; the real problem is prospect of a second recession.

For us to come back to our normal position like 2005 and 2012 we have to reconcile and look into the following fundamental problems which led the dwelling and crippling of our economy so much and these problems include; Lack of Economic growth, High Unemployment rate, Long term structural deficits and Lack of Confidence in finance and consumer sector.

(more…)


By Baak Chan Yak Deng, Kampala, Uganda

salary

salary

salary in rss

Salaries in dramatic decline

March 4, 2017 (SSB) — As I said on Thursday Article that South Sudan economy has faces twin challenges of high inflation and low growth. Most of the short term policy instruments at our disposal trade off one for the other. For example, the some individuals have raised interest rates to combat inflation. This may lower inflation, but hurts growth because it increases the cost of funds for companies.

Yes it has long been considered a scourge, an obstacle to investment and a tax on the thrifty. It seems strange, then, that inflation is now touted as a solution to the rich world’s economic troubles. At first sight the case seems compelling. If central banks had a higher target for inflation, that would allow for bigger cuts in real interest rates in a recession.

Faster inflation makes it easier to restore cost-competitiveness in depressed industries and regions. And it would help reduce the private and public debt burdens that weigh on the rich world’s economies. In practice, however, allowing prices to rise more quickly has costs as well as benefits.

(more…)


By Baak Chan Yak Deng, Juba, South Sudan

salary

salary

February 9, 2017 (SSB) — The South Sudan economy faces twin challenges of high inflation and low growth. Most of the short term policy instruments at our disposal trade off one for the other. For example, the RBI has raised interest rates to combat inflation. This may lower inflation, but hurts growth because it increases the cost of funds for companies.

Nearly all short term fixes are going to face this problem that they can’t solve both inflation and growth together. But in the long term, there is a way we can reduce inflation and increase growth simultaneously. The way to we do this is by investing heavily in infrastructure. This includes both creating new infrastructure and improving existing infrastructure.

The three areas where we need to tackle inflation are housing, transportation, and food. House prices are much too high relative to average incomes, and increased construction will make housing more affordable. When it comes to transport, poor roads and poor public transport make transportation expensive and slow. This affects both the movement of individuals, and of goods. Better transport infrastructure will reduce the cost of transportation, and thus lower inflation.

(more…)