Economist says gov’t can intervene in free-market economy

JUBA – South Sudan government can intervene in free market to adopt price control to protect low-income consumers, said professor of economics Abraham Matoc on Wednesday.

Speaking to Sudans Post in an exclusive interview on Wednesday, Matoc who is also the Vice-Chancellor of Dr. John Garang Memorial University said the assumption of a free-market economy can’t prevent government from regulating prices of commodities in the market.

“The assumption of the free-market economy shouldn’t make the government to intervene in the market to control the prices or to monitor why the prices of commodities are so high,” Matoc told Sudans Post.

He argued that South Sudan is still developing economically which makes it possible for the government to regulate the prices of commodities.

“The government in the developmental state has the right to intervene in the market to control the market because as a developing economy, it is only government intervention that can actualize control of prices,”

“Through government intervention, we can apply market-friendly an economic system where the government will have the freedom to interfere in the market to regulate commodities,”

He said traders’ ignorant of the laws of demand and supply is contributing negatively to the hike in prices in the market.

“Ignorant of economic ways of doing things and even the ignorant about the laws of supply and demand is the main factor why prices are increasing every day even when not related to exchange rate,” he said.

He also attributes the hike in prices to lack of local production.