Economic system

Economists call for a new economic system for South Sudan

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

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 wants 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,” Matoch said. South Sudan in brief.

The developmental state 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] will 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,” Matoch said. South Sudan in brief.

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

A new report by the United Nations Commission on Human Rights in South Sudan, however, accuses South Sudanese officials and their cronies of destroying the country’s economy, saying the country is mired in twisted schemes aimed at to enrich the political elite at the expense of the impoverished millions. people who have endured years of conflict and abuse.

Looting and looting are not just consequences of war, they are key 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, stealing the future of their people. On the other hand, soldiers in this conflict over resources are being offered the opportunity to abduct and rape women in lieu of their salaries,” Sooka said.

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

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

“An economy that produces goods and services must have adequate peace and security through which people will start producing import-substituting goods and reduce their dependence on imports. If this is done, we expect the country to have enough reserves from oil money coming in, foreign currency reserves, but that has never happened, and people are not able to produce for themselves or surpluses for export”, Morjan Raconté Focus on South Sudan.

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

“If they can work to reduce corruption, there should be some improvement internally, especially now that the government is sometimes unable to pay its workers, employee wages and salaries. What the new minister could do is fight, reduce corruption,” Morjan told VOA.