AL: The Rise in the Prices of Commodities and Growth of Redundances
We hope the Gambian population is now convinced that the Foroyaa editorial is simply amplifying the concerns of the people. The National Assembly members of the ruling party had to acknowledge the plight of the workers who are being made redundant and the high prices of commodities.
Phone - in radio programmes cannot ignore the rise in commodities as a cup of sugar goes to 10 dalasi and one medium size onion being sold for 5 dalasi.
It goes without saying that many companies, especially in the Hotel Industry, are laying off workers. Some are replacing old appointment letters with new ones which reduce salaries and allowances.
There is no doubt that the combination of high prices with redundancies could only lead to growth in poverty.
The months between June and October are often referred to as the hungry season in the rural areas. The high level of remittances in the past had served as a cushion to reduce the choking effect of rural poverty. However, contrary to expectations the economies in Europe are contracting thus creating the basis for increase in taxation and reduction of welfare services. This is going to impact on remittances.
There is no doubt that if the transit economy had also benefited from the type of drug syndicates as has become manifest in the court cases the current clamp down could impact on any business which is connected to such drug barons.
In short, as far as Foroyaa is concerned the Gambian economy is about to undergo its severest tests for legitimacy. If it does not suffer any shocks then it would become clear that its fundamentals are not based on a drug related trade. If it suffers severe shocks then it would become clear that the fundamentals of the economy have been distorted by illegitimate trade in illegal substances.
Instead of waiting for the outcome the Government should establish a commission to look into the causes and consequences of the rise in inflation and the threat of a scarcity in the availability of essential commodities. Banks should be aligned with legitimate commercial operators to enable them to fill any vacuum left by those who use legitimate businesses as fronts to be able to carry out illegitimate businesses. The Chamber of Commerce should be a core institution for consultation and partnership in keeping track of current economic trends and impacts in the short, medium and long term.
