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, âsaid 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, âsaid Matoch South Sudan at a glance.
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.
âAt 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 being offered the opportunity to kidnap and rape women instead of their pay, âSooka said.
She said the commission uncovered brazen 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.
âAn 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 neither for themselves nor surpluses for export â, Morjan RacontÃ© 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.
âIf 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, salaries and employee salaries. What the new minister could do is fight, reduce corruption, âMorjan told VOA.