Editorial

Black Market Dwindling Economy

In most developed and less developed countries, politics and economic operations are clean, friendly and credible.  In the Western World, the activity of black market is not allowed to affect the economy. But in South Sudan black market is part of economic destruction because all its dirty stuff is contributing to the suffering of the majority. Black market controllers are the main contributors of inflation. Currently the political atmosphere in the country has given an opportunity for the uncontrollable business in the black market to continue without political measures. Black market has affected the economy. Can you believe that some authorities in the government are connected with the business in the black market?  The black market dealers are happy with what they are getting. But what will they benefit if everything in the market is expensive?

Business is being interrupted by selling and buying dollar and fuel in the black-market. There is scarcity of fuel in the petrol stations but there is fuel in the black market. There is scarcity of dollar in the banks but there is no scarcity of dollar in the black market.  A litre of fuel in the petrol station is 22 South Sudanese Pounds (SSP) but in the black market in Juba it has reached 500 SSP. The current political situation would not favor an economic success because the government has failed to manage what we expect it do. From 2005 up to 2012 South Sudanese were living a better and happy life because in those years, economic troubles such as inflation. In those years, I realized that the economic condition of South Sudanese was very fine. Things were fine because many complaints about unstable prices of food commodities were not there. Inflation was not there. But see today. The inflation has gone to more than 500 percent.

In December 2015, the government wrongly decided to allow our local currency to remain afloat against United States (US) dollars. The aim of the move was not only to bring the rate closer or similar to the ones in the black market but was to chase away the black market. The plan failed and the government left it without an alternative solution.

Some people are saying if the government changes the current notes with new ones, things will be a bit okay. Perhaps it might help to support the demand of making a low fixed exchange rate. If we assume that the relationship between the Government and the International Community is still good, then the suggestion to change the notes to support a fixed exchange rate will be fruitful.

The economic situation in the country has forced many people to suffer in getting even one meal per a day. It has developed badly because currently one dollar in the black market is almost doubling the one in the Central Bank. May be the situation will improve in the coming months if the process of the national dialogue succeed. But success of the national dialogue will depend on its transparency, freedom of expression and immediate implementation of resolutions. In politics agreement is different from implementation and the reason which forced many of our people to suffer politically and economically is lack of commitment and good heart in implementing the agreement signed in 2015 between the government and the SPLM-IO led by Dr. Riek Machar. The relationship between the ruling party and the opposition has put procedure of politics in uncharted water. We need improvement in this relationship so that our people will not suffer again. We need improvement now, not tomorrow or next year.

 

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