In an attempt to stabilize the economy, which is usually determined by the laws of supply and demand in many countries, South Sudan has issued a 72-hour warrant to traders and businesses in the country to reduce prices in the market with immediate effect.
A dead economy cannot be taken to the graveyard for burial so that people could realize that it has gone forever.
The economic collapse in South Sudan is real but Kiir’s administration ignored it for quite a long time. South Sudan’s economy is like a dead male African buffalo that remain standing waiting for someone to pull it down from the tail.
Economic collapse is any of a broad range of bad economic conditions, ranging from severe, prolonged depression with high bankruptcy rates and high unemployment, to a breakdown in normal commerce caused by hyperinflation. Often economic collapse is accompanied by social chaos, civil unrest, and breakdown of law and order.
All of the above define South Sudan’s economy. Hon. Makuei threw himself into the dark fleabag although the resolution was made regarding change of currency.
He was betrayed thoroughly by his boss. South Sudan will not recover from this mess unless it is accepted that there is a need for improvement in the economic system of the country. Forcing business people to open their shops or lower price will never add to the economy of the country.
If you force them to reduce prices, yet they bought them expensively then you are closing their businesses and another problem will arise: No goods in the market. You can solve one problem by creating another.
Such measures of lowering the prices must be taken gradually. If you want them to reduce price within 72 hours then subsidize them. It is time for South Sudan to think.
Economics is literally defined as a system that balances available resources of a country, such as land, capital, and labor, against the wants and needs of consumers. All the available resources are misappropriated. No need for going around asking for foreign gods to help.
Prices in the market can only be determined by the forces of demand and supply functions rather than by decrees or order. Substantial supply of goods implies lower prices. Alternatively, the government has to maximize subsidy in response to higher prices in the market.
The issue of price inflation has toppled supreme leaders in Africa including the Sudanese former president Al-Bashir and the South Sudanese leadership is not taking chances either.
South Sudan needs to get prepare for the worse since the government has borrowed enough and many options are fading.