#SudanUprising Economy: debates over government's economic policy
Summary
Sudanese economic experts have provided mixed views on the government’s recent handling of the economic crisis. On one hand, the lifting of fuel subsidies has been credited for reducing the symptoms of the transport and farming crises, with the Central Bank of Sudan’s auctioning of currencies receiving praise for stabilising the national currency on global exchange rates. On the other hand, the stable currency has been described as “fake” and unsustainable, with the government also accused by prominent left-wing economist and politician, Dr. Sidgi Kaballo, for setting the wrong priorities. Solutions for Sudan’s economic recovery have included: internal economic process reforms and a reduction in fuel prices.
Positive views on the government’s economic policy
The government’s economic policies – including liberalisation that was reflected in currency flotation and the lifting of fuel subsidies, has been receiving positively by some economic analysts.
With regards to the lifting of fuel subsidies, Dr. Abdellatif al-Booni (al-Sudani, 1 August) noted “steps forward” that have been reflected in “transport crisis turning from scarcity and high cost to just high cost, [and] the farming crisis turning from scarcity in fuel to just a high price of fuel.”Al-Booni cited the drop in gasoline prices, which he attributes to the unification of gasoline prices for agriculture and transport industries, thus reducing the black market gasoline trading blamed for the transport crisis. Al-Booni also credits government policy for reducing traffic, thereby reducing fuel consumption, as drivers previously burned “cheap subsidised fuel for nothing”.
In addition, amid relative stability of Sudan’s national currency on foreign exchange rates, economic research Babiker Ahmed Abdullah credits government policies, security campaigns against black market currency traders and the Central Bank of Sudan’s currency auctions, adding that stability can be sustained if the state abides by import policies and controls (al-Taghyeer, 7 September).
Negative views on the government’s economic policy
However, economist and Sudanese Communist Party leader, Dr. Sidgi Kaballo, criticised the government for prioritising exchange rates and the budget deficit at the expense of internal economic process reforms, enhancing production capacity and improving infrastructure (Radio Dabanga, 1 September).
Furthermore, banking expert Dr. Louay Abdelmoneim said the current stability is “fake”, a result of increased production and exports, and that the currency auction was “politicised” as they were handed out disproportionately, thereby reducing imports and increasing market prices, leading to a greater reliance on foreign goods and raw materials. He also warned of an economic collapse once the security campaign ends, given Sudan’s trade imbalance and lack of gross national product increase (al-Taghyeer, 7 September).
Solutions
Currency stability
To achieve currency exchange stability, economic analyst Dr. Haitham Mohamed Fathi called for “increasing and improving production quality to meet local needs and reduce imports and increase exports” (al-Taghyeer, 7 September).
Prioritise internal economic process reforms
In calls for the government to prioritise internal economic process reforms, enhancing production capacity and improving infrastructure, rather than exchange rates and the budget deficit, Dr. Sidgi Kaballo suggested that the government slows down its implementation of IMF conditions to obtain new loans in order to focus on “internal reforms, removing exploiting elements from the economy, expanding agriculture, and structurally solving power outages by setting up solar power plants,” adding that the reforms should focus on the export sector and restoring progressive tax law based on production types.
“Most importantly” Dr. Kaballo called for the recovery of the economy from “parasites” affiliated to the former regime, including by reforming the banking system and ending their monopoly on petrol imports. Dr. Kaballo further called on the government “to benefit from grants, loans and investments from the international community in irrigation and of solar energy” (Radio Dabanga, 1 September):
Reducing inflation
Although economic writer Dr. Abdellatif al-Booni praises the impact of the government’s lifting of fuel subsidies, he notes that inflation is an ongoing issue. Thus, he calls for the government to restrict inflation with a limited reduction in fuel prices - potentially helped by an international drop in fuel prices alongside foreign grants or loans – thereby reducing the prices of other commodities (al-Sudani, 1 August).
Positive views on the government’s economic policy
The government’s economic policies – including liberalisation that was reflected in currency flotation and the lifting of fuel subsidies, has been receiving positively by some economic analysts.
With regards to the lifting of fuel subsidies, Dr. Abdellatif al-Booni (al-Sudani, 1 August) noted “steps forward” that have been reflected in “transport crisis turning from scarcity and high cost to just high cost, [and] the farming crisis turning from scarcity in fuel to just a high price of fuel.”Al-Booni cited the drop in gasoline prices, which he attributes to the unification of gasoline prices for agriculture and transport industries, thus reducing the black market gasoline trading blamed for the transport crisis. Al-Booni also credits government policy for reducing traffic, thereby reducing fuel consumption, as drivers previously burned “cheap subsidised fuel for nothing”.
In addition, amid relative stability of Sudan’s national currency on foreign exchange rates, economic research Babiker Ahmed Abdullah credits government policies, security campaigns against black market currency traders and the Central Bank of Sudan’s currency auctions, adding that stability can be sustained if the state abides by import policies and controls (al-Taghyeer, 7 September).
Negative views on the government’s economic policy
However, economist and Sudanese Communist Party leader, Dr. Sidgi Kaballo, criticised the government for prioritising exchange rates and the budget deficit at the expense of internal economic process reforms, enhancing production capacity and improving infrastructure (Radio Dabanga, 1 September).
Furthermore, banking expert Dr. Louay Abdelmoneim said the current stability is “fake”, a result of increased production and exports, and that the currency auction was “politicised” as they were handed out disproportionately, thereby reducing imports and increasing market prices, leading to a greater reliance on foreign goods and raw materials. He also warned of an economic collapse once the security campaign ends, given Sudan’s trade imbalance and lack of gross national product increase (al-Taghyeer, 7 September).
Solutions
Currency stability
To achieve currency exchange stability, economic analyst Dr. Haitham Mohamed Fathi called for “increasing and improving production quality to meet local needs and reduce imports and increase exports” (al-Taghyeer, 7 September).
Prioritise internal economic process reforms
In calls for the government to prioritise internal economic process reforms, enhancing production capacity and improving infrastructure, rather than exchange rates and the budget deficit, Dr. Sidgi Kaballo suggested that the government slows down its implementation of IMF conditions to obtain new loans in order to focus on “internal reforms, removing exploiting elements from the economy, expanding agriculture, and structurally solving power outages by setting up solar power plants,” adding that the reforms should focus on the export sector and restoring progressive tax law based on production types.
“Most importantly” Dr. Kaballo called for the recovery of the economy from “parasites” affiliated to the former regime, including by reforming the banking system and ending their monopoly on petrol imports. Dr. Kaballo further called on the government “to benefit from grants, loans and investments from the international community in irrigation and of solar energy” (Radio Dabanga, 1 September):
Reducing inflation
Although economic writer Dr. Abdellatif al-Booni praises the impact of the government’s lifting of fuel subsidies, he notes that inflation is an ongoing issue. Thus, he calls for the government to restrict inflation with a limited reduction in fuel prices - potentially helped by an international drop in fuel prices alongside foreign grants or loans – thereby reducing the prices of other commodities (al-Sudani, 1 August).
Negative views on the government’s economic policy
However, economist and Sudanese Communist Party leader, Dr. Sidgi Kaballo, criticised the government for prioritising exchange rates and the budget deficit at the expense of internal economic process reforms, enhancing production capacity and improving infrastructure (Radio Dabanga, 1 September).
Furthermore, banking expert Dr. Louay Abdelmoneim said the current stability is “fake”, a result of increased production and exports, and that the currency auction was “politicised” as they were handed out disproportionately, thereby reducing imports and increasing market prices, leading to a greater reliance on foreign goods and raw materials. He also warned of an economic collapse once the security campaign ends, given Sudan’s trade imbalance and lack of gross national product increase (al-Taghyeer, 7 September).
Solutions
Currency stability
To achieve currency exchange stability, economic analyst Dr. Haitham Mohamed Fathi called for “increasing and improving production quality to meet local needs and reduce imports and increase exports” (al-Taghyeer, 7 September).
Prioritise internal economic process reforms
In calls for the government to prioritise internal economic process reforms, enhancing production capacity and improving infrastructure, rather than exchange rates and the budget deficit, Dr. Sidgi Kaballo suggested that the government slows down its implementation of IMF conditions to obtain new loans in order to focus on “internal reforms, removing exploiting elements from the economy, expanding agriculture, and structurally solving power outages by setting up solar power plants,” adding that the reforms should focus on the export sector and restoring progressive tax law based on production types.
“Most importantly” Dr. Kaballo called for the recovery of the economy from “parasites” affiliated to the former regime, including by reforming the banking system and ending their monopoly on petrol imports. Dr. Kaballo further called on the government “to benefit from grants, loans and investments from the international community in irrigation and of solar energy” (Radio Dabanga, 1 September):
Reducing inflation
Although economic writer Dr. Abdellatif al-Booni praises the impact of the government’s lifting of fuel subsidies, he notes that inflation is an ongoing issue. Thus, he calls for the government to restrict inflation with a limited reduction in fuel prices - potentially helped by an international drop in fuel prices alongside foreign grants or loans – thereby reducing the prices of other commodities (al-Sudani, 1 August).
Positive views on the government’s economic policy
The government’s economic policies – including liberalisation that was reflected in currency flotation and the lifting of fuel subsidies, has been receiving positively by some economic analysts.
With regards to the lifting of fuel subsidies, Dr. Abdellatif al-Booni (al-Sudani, 1 August) noted “steps forward” that have been reflected in “transport crisis turning from scarcity and high cost to just high cost, [and] the farming crisis turning from scarcity in fuel to just a high price of fuel.”Al-Booni cited the drop in gasoline prices, which he attributes to the unification of gasoline prices for agriculture and transport industries, thus reducing the black market gasoline trading blamed for the transport crisis. Al-Booni also credits government policy for reducing traffic, thereby reducing fuel consumption, as drivers previously burned “cheap subsidised fuel for nothing”.
In addition, amid relative stability of Sudan’s national currency on foreign exchange rates, economic research Babiker Ahmed Abdullah credits government policies, security campaigns against black market currency traders and the Central Bank of Sudan’s currency auctions, adding that stability can be sustained if the state abides by import policies and controls (al-Taghyeer, 7 September).
Negative views on the government’s economic policy
However, economist and Sudanese Communist Party leader, Dr. Sidgi Kaballo, criticised the government for prioritising exchange rates and the budget deficit at the expense of internal economic process reforms, enhancing production capacity and improving infrastructure (Radio Dabanga, 1 September).
Furthermore, banking expert Dr. Louay Abdelmoneim said the current stability is “fake”, a result of increased production and exports, and that the currency auction was “politicised” as they were handed out disproportionately, thereby reducing imports and increasing market prices, leading to a greater reliance on foreign goods and raw materials. He also warned of an economic collapse once the security campaign ends, given Sudan’s trade imbalance and lack of gross national product increase (al-Taghyeer, 7 September).
Solutions
Currency stability
To achieve currency exchange stability, economic analyst Dr. Haitham Mohamed Fathi called for “increasing and improving production quality to meet local needs and reduce imports and increase exports” (al-Taghyeer, 7 September).
Prioritise internal economic process reforms
In calls for the government to prioritise internal economic process reforms, enhancing production capacity and improving infrastructure, rather than exchange rates and the budget deficit, Dr. Sidgi Kaballo suggested that the government slows down its implementation of IMF conditions to obtain new loans in order to focus on “internal reforms, removing exploiting elements from the economy, expanding agriculture, and structurally solving power outages by setting up solar power plants,” adding that the reforms should focus on the export sector and restoring progressive tax law based on production types.
“Most importantly” Dr. Kaballo called for the recovery of the economy from “parasites” affiliated to the former regime, including by reforming the banking system and ending their monopoly on petrol imports. Dr. Kaballo further called on the government “to benefit from grants, loans and investments from the international community in irrigation and of solar energy” (Radio Dabanga, 1 September):
Reducing inflation
Although economic writer Dr. Abdellatif al-Booni praises the impact of the government’s lifting of fuel subsidies, he notes that inflation is an ongoing issue. Thus, he calls for the government to restrict inflation with a limited reduction in fuel prices - potentially helped by an international drop in fuel prices alongside foreign grants or loans – thereby reducing the prices of other commodities (al-Sudani, 1 August).
Positive views on the government’s economic policy
The government’s economic policies – including liberalisation that was reflected in currency flotation and the lifting of fuel subsidies, has been receiving positively by some economic analysts.
With regards to the lifting of fuel subsidies, Dr. Abdellatif al-Booni (al-Sudani, 1 August) noted “steps forward” that have been reflected in “transport crisis turning from scarcity and high cost to just high cost, [and] the farming crisis turning from scarcity in fuel to just a high price of fuel.”Al-Booni cited the drop in gasoline prices, which he attributes to the unification of gasoline prices for agriculture and transport industries, thus reducing the black market gasoline trading blamed for the transport crisis. Al-Booni also credits government policy for reducing traffic, thereby reducing fuel consumption, as drivers previously burned “cheap subsidised fuel for nothing”.
In addition, amid relative stability of Sudan’s national currency on foreign exchange rates, economic research Babiker Ahmed Abdullah credits government policies, security campaigns against black market currency traders and the Central Bank of Sudan’s currency auctions, adding that stability can be sustained if the state abides by import policies and controls (al-Taghyeer, 7 September).
Negative views on the government’s economic policy
However, economist and Sudanese Communist Party leader, Dr. Sidgi Kaballo, criticised the government for prioritising exchange rates and the budget deficit at the expense of internal economic process reforms, enhancing production capacity and improving infrastructure (Radio Dabanga, 1 September).
Furthermore, banking expert Dr. Louay Abdelmoneim said the current stability is “fake”, a result of increased production and exports, and that the currency auction was “politicised” as they were handed out disproportionately, thereby reducing imports and increasing market prices, leading to a greater reliance on foreign goods and raw materials. He also warned of an economic collapse once the security campaign ends, given Sudan’s trade imbalance and lack of gross national product increase (al-Taghyeer, 7 September).
Solutions
Currency stability
To achieve currency exchange stability, economic analyst Dr. Haitham Mohamed Fathi called for “increasing and improving production quality to meet local needs and reduce imports and increase exports” (al-Taghyeer, 7 September).
Prioritise internal economic process reforms
In calls for the government to prioritise internal economic process reforms, enhancing production capacity and improving infrastructure, rather than exchange rates and the budget deficit, Dr. Sidgi Kaballo suggested that the government slows down its implementation of IMF conditions to obtain new loans in order to focus on “internal reforms, removing exploiting elements from the economy, expanding agriculture, and structurally solving power outages by setting up solar power plants,” adding that the reforms should focus on the export sector and restoring progressive tax law based on production types.
“Most importantly” Dr. Kaballo called for the recovery of the economy from “parasites” affiliated to the former regime, including by reforming the banking system and ending their monopoly on petrol imports. Dr. Kaballo further called on the government “to benefit from grants, loans and investments from the international community in irrigation and of solar energy” (Radio Dabanga, 1 September):
Reducing inflation
Although economic writer Dr. Abdellatif al-Booni praises the impact of the government’s lifting of fuel subsidies, he notes that inflation is an ongoing issue. Thus, he calls for the government to restrict inflation with a limited reduction in fuel prices - potentially helped by an international drop in fuel prices alongside foreign grants or loans – thereby reducing the prices of other commodities (al-Sudani, 1 August).
