Sudan .. The economy’s crisis is getting worse, and experts identify...

Sudan .. The economy’s crisis is getting worse, and experts identify...
Sudan .. The economy’s crisis is getting worse, and experts identify...
Meanwhile, a value is recorded local currency A continuous decline, as one dollar is trading at about 240 pounds in the parallel market, amid stifling crises in basic commodities such as bread, fuel and cooking gas.

And experts who spoke to Sky News Arabia diagnosed 5 main reasons for his crisis The Sudanese economyWhich is the lack of political will, weak production, the apparent defect in fiscal and monetary policies, and the presence of a large number of public companies outside the umbrella of the Ministry of Finance.

The experts also identified 7 prescriptions for dealing with the crisis, which are the availability of strong political will, control of the monetary supply and reduction Government spending The state governs over Gold exports And basic commodities, full control of flour mills, consolidation of revenues under the umbrella of the Ministry of Finance and restructuring of the Central Bank.

Causes of the crisis

A professor of economics at Sudanese universities, Abdel Wahab Bob, attributes the worsening economic crisis to the apparent imbalance in Fiscal policy That led to performance degradation Productive economic sectors And increase the volume of government spending.

Bob told Sky News Arabia that a follower of economic performance in the post-revolution period notices the absence of any kind of change. Rather, there has been an unprecedented increase in the size of the monetary mass estimated at 30% during this short period of Transitional GovernanceAnd there are fatal errors that precipitated this unprecedented collapse, including the frightening increase in salaries, which did not depend on real resources but on paper currency.

Bob draws attention to the seriousness of the current crises that he lives Sudanese street, Especially the bread crisis and the terrible deterioration in the value of the national currency, pointing out that the solution to the bread crises and the deterioration of the pound requires the government to fully control the flour mills and bring all public companies, including the army and security companies, under the umbrella of the Ministry of Finance.

Bob asserts that the only and optimal way is to stop the current “spoilage” in the Sudanese economyThe money market It is represented in creating a creative, wise and transparent monetary authority and not in a way to bridge the gaps and ignore the impact on the street, in addition to stopping the illegal interference of telecommunications companies and other companies that conflict in the parallel market, which requires state control over them completely.

Bob believes that the process of re Structuring the economy It requires a government capable of drawing up strong, effective and transparent policies, which is not available in the current government, as he put it.

Political will

Professor of political economy, Abdo Mukhtar, believes that the crisis as a whole is centered in the absence of the political will capable of devising solutions that lead to the proper use of resources.

Mukhtar stresses the need for the government at this stage to set specific priorities, control trade in major products, such as gold and gum arabic, and control Government spending Unruly, in addition to strict control of public money and all public companies under the umbrella of the Ministry of Finance.

According to Mukhtar, there are many distortions that afflicted the Sudanese economy and exacerbated the crisis, among them the strange and unjustified situation of the army and security companies outside the umbrella of the Ministry of Finance, while the army’s investments should be limited only to aspects related to military production andMilitary technology.

Mukhtar points to wrong government interventions in the currency market that weakened the currency as a direct result of increased demand for dollars.

main condition

The professor of public policies in American universities, Bakri Al-Jack, stipulates the necessity of stopping the current deterioration of the Sudanese economy before considering comprehensive economic restructuring processes.

Al-Jack says that the government of the revolution inherited an economy that lived with structural and structural imbalances, a state of recession and explosive inflation, in addition to striking institutional corruption, but it did not take the necessary steps to confront these imbalances.

Al-Jack points out that the revolution’s government’s continued extravagant spending on the state apparatus exacerbated it budget deficiency Which has been financed by printing money since the last days of the rescue, and the increase in public sector salaries has added a new burden to the public finances because it came without real resources available to finance it, which doubled the state’s need to print money to fulfill its obligations.

Al-Jack says that putting all companies affiliated with the army, security and rapid support support under his control Ministry of FinanceIt will double public revenues and enable the state to obtain hard currencies that go to the accounts of these companies abroad, thus reducing the demand for the dollar and stabilizing its price, which will positively affect the prices of Basic commodities And production inputs, and thus macroeconomic stability and the provision of necessary financing for construction and development processes.

The jack connects between degradation Sudanese currency And the current rise in the prices of basic commodities, and indicates the relationship of the exchange rate of the pound and the high prices, as most consumer goods are either imported or their production inputs are imported.

For Jack, there are two sides to the solution. The first is political, which is the availability of the political will that enables the Ministry of Finance to control all public revenues of telecommunications companies, slaughterhouses, gold and petroleum mining companies, etc., while the second is technical, which is to reduce the budget deficit and control spending at the level of the Sovereignty Council and the Ministers And every state apparatus, to stop Print money Immediately and then work to encourage production, and enable the central bank to play its technical role in regulating monetary policy and start using tight mechanisms to determine the interest rate while developing a practical plan to reform the banking system as a prerequisite for attracting foreign investments.

As for achieving maximum benefit from gold production, the Jack suggests that you do so Sudanese Mining Company By purchasing all domestically produced gold and then exporting it, and preventing export by private companies until long-term arrangements are in place.

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