South Sudan is indisputably one of the poorest countries in the world. It lacks vital institutional settings due to long period of destruction and instability triggered by the decades Sudanese civil wars. There is shocking level of capacity building, it has low life expectancy rate, it has the worse mortality rate in the world, poor basic services and most basically low per capita income.
The current situation is seriously devastating, but then, South Sudan has got numerous resources in Africa making its economic prospect potentially bright. South Sudan therefore needs a well-planned economic system to harness its resources as well as enhance its economic socio political stability.
In my conscience conviction, I would simply suggest that a free market approach (Capitalism) as practiced in the U.S.A is viably a suitable approach for Africa’s newest nation.
The free market system would allow foreign investors to invest in the country. These investors would help bring services to the people, they would help create Jobs to the population, and they will provide vital basic services which are very scarce in south Sudan. Capitalism will aid or build south Sudan’s basic infrastructures which will rapidly facilitate South Sudan’s economic growth. But then, the government will need to create a conducive investment environment inform of security, tax holiday and other incentives.
Private sector will also help south Sudan Government to raise significant amount of revenues inform of taxation like import duties, custom duties etc… On the other hand it will avail foreign capital to south Sudan’s economy thus becoming a major boost to south Sudan’s price stability. Beside, equal resource distribution countrywide can be well done by private sector than the public sector that harbors some political influence.
Basically, private sectors ability to operate in a competitive environment will help generate quality services to the people; improving the standard of living of south Sudanese. A government monopoly which always lack rivalry or competitors does not bring any change to the quality of goods provided.
However, although socialism and communism as practiced in Norway/Sweden and China are economically vital to economic growth, the free market approach (Capitalism) still remains an initial and viable approach to south Sudan’s economy (in spite of) considering the country’s illiteracy rate, lack of capacity building and shortage of man power (human capital).
To conclude, it is appropriate that south Sudan adopts a free market approach in the short run as it work on designing a mixed economic system that will tackle some disadvantages associated with capitalism such as fund repatriations, imports of illegal products among others.