Price regulation the right policy for South Sudan

Calgary, AB, CA - In an environment where all assume to know all, one thing is certain: everything goes wrong. When I read an article by Makol Garang (NSV, 02/18/08), I was impressed.

Then I read another letter written by a Mr. Chap Phan. It sounded like a piece of comedy.

Mr. Phan refuted the argument that prices should be regulated in Juba in the interest of the local consumers.

He bases his argument on the premise that the government should not be allowed to have an influence in business affairs. Sounds right! But think about it. The argument sounds about right, but it’s ridiculous.

As Makol argued, the prices are based on the cost of the process that led to the production of the product or services being provided. Do the business people in Juba base their price on this fact? I don’t think so.

The sensible concern that one has in relation to the prices being charged is this; Most of those who can afford these prices are either diplomats; foreign aids workers, foreign business people and a few South Sudanese who have decided to tap into quick money-making in an unregulated market.

I am not sure as to what the average salary of a typical civil servant in Sudan is. Can all the civil servants and every salaried worker in South Sudan afford such prices? If they cannot afford these prices, then in whose interest are these prices?

If the average salaried worker in Juba cannot afford these prices, then someone needs to tell us if the few businessmen in Juba and foreign businesses are to be the sole beneficiaries of post-conflict fruits.

This is absurd.

Reports that come out of Juba only tell us of the deplorable conditions of things in Juba. No one is comfortable with these prices except the businesses.

But what business person cannot laugh his/her way to the bank if he/she gets three times (an example) what he invests?

Mr. Phan should tell us if he thinks the current states of business in Juba has any benefit to the average Southerners. It might perhaps help the government in form of taxes. But are the tax collection laws in Sudan effective and favorable? Can the government put that interest above the needs of the people when the money that is collected cannot even reach the average southerner?

The question that one needs to ask is this: who will be able to afford and support the businesses when all those who afford the prices can no longer afford them? Suppose most of the aid workers in South Sudan leave.

Unless most or all the residents in Juba afford these absurd prices, there is no argument against price regulation.

*Kuir Garang is The New Sudan Vision's editorial and opinion editor. He is also its columnist. He can be reached at kuirthiy@yahoo.com.