Economic system

Economists call for new economic system for South Sudan

JUBA / GENEVA – As some South Sudanese experts recommend that the government adopt a new economic system used by developing states to cut the exchange rate on the black market and stabilize soaring prices, a new report from a panel of The UN says the real problem in South Sudan is deep-rooted government corruption.

South Sudan should move to a developmental state economic system in which the government could control prices, the black market exchange rate and currency flows into and out of the country, according to Abraham Matoch, professor of economics and Vice-Chancellor at Doctor John Garang Memorial University of Science and Technology in Bor.

“There is no rule in a new country that wishes to rebuild, rehabilitate and rebuild to immediately move to a free market economic level which is more or less a catalyst, and therefore I encourage having an economic system developmental state because we cannot apply a capitalist economic system in a developing country, ”said Matoch South Sudan at a glance.

The developing state’s economic system embodies strong state intervention, as well as extensive regulation and planning.

In South Sudan, speculators are able to manipulate exchange rates to their advantage, Matoch said.

“If commercial banks or forex [bureaus] going to abuse the exchange rate to keep most of the money or dollars with them for black marketing, it will affect the economy. And that’s exactly what really happened, ”said Matoch South Sudan at a glance.

FILE – Children play with hoops at the Child Friendly Space, managed by UNICEF at the Protection of Civilians (PoC) site of the United Nations Mission in South Sudan (UNMISS), in Juba, South Sudan South, January 15, 2016.

A new report from the United Nations Commission on Human Rights in South Sudan lashes out at South Sudanese officials and their cronies for destroying the country’s economy, claiming the country is mired in shady schemes aimed at making money. the political elite at the expense of millions of impoverished people. people who have endured years of conflict and abuse.

Looting and pillaging are not only ramifications of war, they are the main drivers of conflict, according to commission chair Yasmin Sooka.

“At one end of the spectrum, South Sudan’s political elites are fighting for control of the country’s oil and mineral resources, thereby stealing the future of their people. On the other hand, soldiers involved in this resource conflict are given the opportunity to kidnap and rape women in lieu of their pay, ”Sooka said.

She said the commission uncovered embezzlement by senior politicians and other government officials, adding that they had embezzled $ 36 million since 2016. Sooka noted that a number of international companies and multinational banks aided and abetted these crimes.

University of Juba economics professor Ahmed Morjan agreed that South Sudan’s problems are political, not economic.

“An economy that produces goods and services must have adequate peace and security whereby people will begin to produce import substitution goods and reduce dependence on imports. If this is done, we would expect the country to have enough reserves of oil money coming in, foreign exchange reserves, but it never happened, and people are not able to produce for themselves or surplus for export ”, Morjan Raconté South Sudan at a glance.

He said the new finance minister, Athian Diing Athian, and the administration needed to find a way to end widespread government corruption.

“If they can work to reduce corruption, there should be some improvement internally, especially now that the government is sometimes not able to pay its workers, wages and salaries of employees. What the new minister could do is fight, reduce corruption, ”Morjan told VOA.


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