Home | Comment & Analysis    Wednesday 30 August 2006

The Welfare State and Economic Growth in South Sudan


By Khorhok Gal

August 29, 2006 — There are many views of the impact of social welfare on the economy. Different States are using different models; one model sees welfare as an essential complement to industrial development. Other sees, the ideas of social service help the economy to grow by serving the workforce. Kenesian economy sees public spending on welfare as a useful economic regulator that helps to balance the economy in period of recession. This has been the dominant model in European Counties. On others hand, both liberals and conservatives have represented that welfare has major burden on an economic performance, public expenditure is seen has hindered on the economic growth.

Looking at both views there is no consistent evident to support public spending helps economy growth, or recession. But in the case of South Sudan, without public spending there will be no economic growth, since 99.9 percent of the population cannot afford to buy/own a car, or modern house. In that case the relationship between economic growths and public spending are equaled important to South Sudan government to enhance an economic growth and developments.

Many African leaders believes, poverty reduction can be achieve, if rich nations write-off African debts. They believe the government will be able to provide the free health-care, education and free social services in rural areas. But what African leaders forget is that debt relief is not the only solutions to poverty in Africa. Corruption is a one of major threats to African development, then AIDS epidemic. The estimated annual cost of corruption in Africa economies exceeds $148 billion. This is thought to represent 25 percent of Africa GDP and its increase the cost of goods by as mush as 20 percent. According to Transparency International Report 2005 Report.

The collapse of Socialist economic system in Eastern Europe and former Soviet Union demonstrates to us such a system would not work. Even if Karl Mark still alive today he would admit that his views on equality were wrong, he would use difference approach to tackle the needs that are affecting our society today. Looking at different views from conservative, liberals and social democrats we should note that there would never be right system that would accommodate all our social needs.

About 200 years ago, Adam Smith demonstrated that there is an underlying harmony of interests among self-seeking individuals and that the invisible hand of the market can promote such a harmony. Since then, national economies have grown interdependent and what Adam Smith called individuals within society can now be said countries within world economy.

A freely operating market mechanism with free trade in goods and services of production is the best way to promote equality and self-reliant in South Sudan. Therefore, I believe the long-term humanitarian provisions posters to south Sudanese people by the civil war are hindering self-reliance. Government should concentrate on the root causes that are making people dependence on humanitarian provision. These would include, establishing public school and public housing program that are operated by federal government.

Why School? I believe education is a key to success, as we all know that without education, we cannot be successful in life. The government needs to spend oil money on education, to ensure that all children go to school in South Sudan regardless of their geographical location. Sudanese children are failing, because our schools are organized according to bureaucratic, the Islamic system. The GOSS should reestablish missionary Schools. Missionary school would give Sudanese families more school choices to send their children to. Also it would create more competition within our education system. The more we have competition within education arena, the more likely our children will have better education.

Khorhok Gal Gar is a Sudanese resided in USA and he can be reach at nyankuany@yahoo.com

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