By Deng Vanang,
Dec 19, 2021 — Bottomline of Adam Smith Law of demand and supply is that the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price. It is what made capitalism triumph over communism as the former allows the greed of an individual entrepreneur for wealth to thrive unguided or controlled.
Gross failure to adhere to the aforementioned Adam Smith’s law of demand and supply South Sudan’s economy fell flat on the muddy ground. Not only due to adverse effects of devastating conflict, but also Kiir’s kleptocracy of distributing money for free among middling foreigners in South Sudanese affairs, old and newly won over political allies. This results in the government’s failure to make its citizens productive in order to tax them which could in turn create industries to employ them. Those looking for self-employment lack a business friendly environment in terms of security, roads, bridges, transport, water and electricity. Without these basic necessities, people can’t be productive as required no matter how hard they work. Without these people being productive, the government can’t have money supposedly to come from taxing the working people. The best resource the world has recently discovered is human capital- citizens’ labor force and not the depleting natural resources found in the land. Which are not longer ours. We are just vessels keeping the wealth whites and Asians come to extract for us with their expensive technology and labor, pocketing more than 75% of total revenues generated from our natural resources.
China, Japan and all Asian economic tigers are best examples of more advanced countries literally less endowed with natural resources and only make use of their human capital to lead the world economically.
In Africa, Kenya, Somalia, Mali and more depend on their people and not natural resources. Â Â
Human capital may not be generally formally educated. Those not formally educated must have the drive to succeed through informal knowledge and business talent.
Village farmer, cattle herder, fishmonger, black smith, traditional medical practitioner and name them dont need specialized training to contribute to the economy, but tips from a broad range of experts.
Creating avenues of production is another way of creating a vibrant economy by encouraging lazy people to work in order to be taxed. Those beyond redemption are fined in courts of law for vagrancy – aimlessly loitering around.
Others engaged in crimes which are part of an idle mindset are not put in prison to consume public money the government can utilize to build the economy, eat free food and sleep free without paying rent from the sweat of hard working citizens.
They are instead sent to work on government’s farms and in factories without pay and after getting released, will realize the importance of working and having money for themselves and their families. And neither kill them with bullets for capital crimes, but with productive labor for life without pay.
Kiir’s desperate effort to increase salaries and tame the hungry and angry work force minus production as a means to keep the economy afloat is heading nowhere.
Since the more the government increases salaries, the more the costs of goods and labor to buy with money will keep increasing. Why? Because sellers as naturally envious human beings wont allow buyers of their goods and services to benefit at their expense.
When President Kiir is increasing the wages of government’s workers he is indirectly increasing costs of goods and services. And when they are increased 100% prices go uncontrollably wild, making lives more worse off than better off.
What keeps the cost of leaving low is over supplying the market with goods and services/labor. For the more the supply, the lesser the demand – which is less money to buy them.Â
What is so bad with ‘’Kiir klepto-economics’’ is not that he is doing it wrong. The big problem with it is that the so called educated class working in his government are buying into it, triggering nationwide protests that endanger the lives of innocent senior government officials  held captive for not paying non-existing increased salaries.
Not knowing or ignoring the fact that national currency, South Sudan Pounds lost value a great deal simply because currency’s strength lies on the over flow of goods and services and not the reverse.
Deng Vanang is a South Sudanese political activist and author, he can be reached through E-mail at dvanang@gmail.com
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