The post-war economy: some characteristics of economic reform ✍️ Professor: Fikri Kabbashi, Al-Amin Al-Arabi
The economic situation is always treated within the framework of the integration of financial and monetary policies, which are all considered as a single whole. Partial treatments do not lead to positive results, and after the end of this damn war, many reforms must be undertaken. I will focus during this window on three areas that must be sought to find rapid solutions, the first of which is the concept of support, the second the exchange rate and the third inflation. This is due to organic complementarity in my opinion. them. This can be explained by the following:
First: The notion of support: There are two types of support, one of which is direct support, which directly pays money to targeted people, who are often represented by people with low income… and whose goal is to bridge the gap. between income and expenses for the weakest in Sudanese society… The second type of support is represented by indirect support, that is to say support for strategic goods such as wheat, sugar and cooking gas , as in neighboring Egypt for example. that their prices remain affordable at the lowest income level.
Second: the exchange rate is represented by the value of the Sudanese pound against the currencies of other countries… rise or fall… Despite all efforts to increase the exchange rate against other currencies , I will summarize the most important mechanisms for increasing the price for you briefly in three points:
1. Increase exports at a higher rate than imports.
2. Receipts from foreign national investments (if applicable) as well as remittances from immigrants and expatriates.
3. Grants, grants and loans from friendly countries and international financial institutions.
Third: Inflation: Inflation is defined as the successive increase in prices. Its types are numerous and varied, but I distinguish three types:
1. Demand inflation or monetary inflation, which is the expansion of monetary issuance, which leads to an excessive quantity of money in circulation without being accompanied by an expansion in the production of goods and services at the within the economic sector of society.
2. Cost inflation: which results in an increase in royalties on locally produced goods and services… as well as an increase in wages without being accompanied by an increase in production.
3. Structural inflation… is represented by the expansion of the public sector at the expense of the private sector… or the entry of the public sector into unequal competition with the private sector… or monopolistic competition through specific institutions and houses the private sector which monopolizes the import and export of strategic goods, the simplest example being wheat and gold…
In conclusion, if there is a treatment, it must be integrated, and what I mentioned is considered part of a whole… and it depends on the space available… but certainly, given the scale of the issue, it must devote more space to it, whether at the civil level or at the official level, if there is really a will and seriousness in the search for reforms…
Teacher: Fikri Kabbashi, Al-Amin Al-Arabi
