05/07/2024
The Contrasting effects of differences between competence and incompetence in leadership of the Ministry of Finance and Bank of South Sudan.
The current economic landscape of South Sudan is alarming, characterized by rampant inflation, delayed salaries, and general fiscal mismanagement. At the heart of this crisis lie two key figures: the Governor of the Bank of South Sudan and the Minister of Finance for the Republic of South Sudan. Their tenure has been marked by decisions that have exacerbated the nation’s economic woes, calling into question their capability and commitment to stabilizing the country’s financial health.
One of the primary culprits behind the deteriorating economic conditions is the reckless approach to deficit financing. Deficit financing was re-introduced during the tenure of Dr. Bak Barnaba and Dr. Alic Garang, and carried forward by Eng. Awou ( current Minister of Finance).The current administration, spearheaded by the Minister of Finance, has resorted to printing money and borrowing from the Central Bank to cover budget shortfalls. This short-sighted solution has fueled hyperinflation, eroding the purchasing power of ordinary South Sudanese citizens. Prices for basic goods have skyrocketed, making everyday necessities unaffordable for the average family. This policy not only reflects a fundamental misunderstanding of economic principles but also a blatant disregard for the well-being of the population.
The Governor of the Bank of South Sudan has failed to implement effective monetary policies to curb this inflationary spiral. Instead of adopting measures to stabilize the currency and control the money supply, the Governor has allowed the unchecked issuance of currency, further devaluing the South Sudanese pound. This failure to act responsibly has undermined confidence in the banking system and stoked fears of a complete economic collapse.
Adding to the populace’s misery is the persistent delay in salary payments for public sector workers. Teachers, healthcare workers, and civil servants are left waiting for months to receive their wages, pushing them into severe financial distress. The Minister of Finance’s inability to manage public funds and prioritize salary disbursements is a clear indication of administrative incompetence. These delays not only demoralize essential workers but also hamper the delivery of critical public services, exacerbating the nation’s humanitarian crisis.
The consequences of these fiscal policies and administrative failures are dire. The economic instability has sparked social unrest, with citizens losing faith in their government’s ability to manage the country effectively. If these issues are not addressed promptly, South Sudan risks sliding further into an abyss of economic despair and political turmoil.
To prevent an impending economic collapse, it is imperative that both the Governor of the Bank of South Sudan and the Minister of Finance be removed from office. Their continued presence is a barrier to necessary reforms and a reminder of the policies that have led to the current crisis. New leadership, equipped with sound economic strategies and a genuine commitment to the nation’s welfare, is crucial to steering South Sudan towards stability and prosperity.
In conclusion, the mishandling of South Sudan’s economy through deficit financing, the failure to control inflation, and the persistent delays in salary payments are clear indicators of the need for a change in leadership. The removal of the Governor of the Bank of South Sudan and the Minister of Finance is not just a matter of accountability but a necessary step to restore economic order and prevent further suffering among the nation’s citizens. The time for decisive action is now, before the situation deteriorates beyond repair. It is unfortunate that the Governor and the Minister did not take notes from some of the good performing and competent predecessors but instead chose paths that have been proven to be catastrophic to the economy and the kind people of South Sudan.
Opinion by Mading Mabior Deng
