The notion of a free market, where prices and production are dictated by unrestricted competition, is often heralded as the epitome of economic freedom, championed by Western economic schools of thought. However, this idealized vision does not always equate to genuine freedom for all market participants, particularly in developing economies like South Sudan. The potential for market dominance by advanced economies underscores the need for government intervention to protect local industries without discouraging foreign investments.
Unfortunately, in the ongoing public discourse on the economy and the apparent market takeover by foreigners, some leaders, particularly those in the economic and finance sectors, possibly misguided by pseudo-economists, seem to have taken the concept of a free market literally or used it as a scapegoat to mask their failures to reform the economy. More often, when citizens raise concerns about the market takeover by foreign entities, they are met with irresponsible utterances such as, “South Sudan is a free market economy,” or “South Sudanese are lazy and unwilling to work.” These statements not only dismiss legitimate concerns but also reflect a profound misunderstanding of the complexities of our economic challenges. Such rhetoric is not only unhelpful but also intellectually bankrupt, as it fails to address the root causes of economic disparity and the need for strategic government intervention.
Consequently, foreign entities have taken over almost all sectors of our economy, including the lowest levels of retailing, which should ideally be reserved for nationals. Go to any neighboring country and tell me if you will find a South Sudanese person running a chapati business, operating a small retail shop, or riding a boda-boda (motorcycle taxi).
It is a sovereign right of a country to implement protective policies to encourage and nourish local businesses. This is what our government is expected to do. Our local businesses lack the competitive advantage of their regional and international counterparts, which is why government regulation is essential. Government intervention is not only necessary but vital to create a balanced and equitable market. By protecting local businesses, regulating prices, encouraging local production, and creating a favorable business environment, the government can help build a robust and self-sustaining economy that benefits all South Sudanese citizens.
It is not a crime for a government to protect the economic interests of the country. All our neighboring countries have such protective policies in place. Even more recently, we saw how the leader of the USA, a country that supposedly champions this economic ideology, is imposing tariffs on imports from certain countries. This is primarily to protect American economic interests, and he has every right to do so.
It, therefore, goes without saying that a free-market economy is not truly free. Expectations are therefore high on new leadership in the economic cluster to reinvigorate the economic reform agenda. Now is the time for our government to prevail in the market with policies that protect local businesses, regulate foreign investments, and promote sustainable economic growth.
Albino Ayay Makurdit can be reached at dengditakol@gmail.com or +211927327775.
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