Monday, June 4, 2012

Thanks, it is drawing very close!


Yesterday's news reported that the Union of Sudanese Business Owners (USB) has urged the authorities to seek out alternative austerity measures as opposed to their “catastrophic” intention of lifting fuel subsidies, warning that the move will put the government's survival at risk and recommending, instead, a reduction in the government structure and dissolution of state parliaments as alternative for increase in fuel prices because the government is the largest consumer of fuel.

The ruling National Congress Party (NCP) decided to lift all subsidies on gasoline and fuel oil. The decision, made in a meeting last Friday led by President Omer Al-Bashir, to help overcome an economic crisis and plug a ballooning budget gap, implies a direct rise in the prices of goods sold in the markets.

Most of the opposition parties and concerned society segments have condemned the decision of the NCP. They argue that higher costs will affect directly ordinary citizens who are already suffering from high cost of living, pointing out that such decision would negatively impact means of transport, which will in turn affect the prices of all commodities such as bread, meat and vegetables. Such a policy will cause great food insecurity among the Sudanese population.

The decision confirms the economic failure of the government as citizens are already struggling to buy basic commodities and foodstuffs.  Even if it raises the individuals' income by 150%, this plan will not work because market prices will increase too to 300%, according to experts.

I’m wondering if the government realizes the consequences of this decision!? And, as stated by USB that described the increase as “catastrophic”, these increases will put the government in the eye of the storm.
Although the government has managed to evade the "Arab spring" uprising, social pressures are now increasing. Taking into account the current spiraling inflation, such a move will be highly unpopular because it will definitely lead to demonstrations against the government.

Making such a decision without careful studies and involvement of others looks like a voluntary euthanasia for the regime that seems heedless of the advice and alerts of economic experts. It even underlines that it is not afraid of the opposition's threats to take citizens to the streets! By this step they have given the Sudanese people a good reason for taking to the streets and staging thunderous demos, as the popular adage goes: “You can do whatever you want around a sleeping elephant, but when he wakes up he tramples you and everything else!"

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