A Reading of the Economic Decisions of the Sovereignty Council’s Head
Professor Ahmed Magzoub Ahmed Ali
We thank Head of the Sovereignty Council for his recent attention to the economic deterioration, the roots of which have penetrated the very core of the economic sectors.
The key to success in any economic reform lies in strengthening and activating the government’s economic institutions to ensure participation, responsibility, and subsequent accountability. This must be coupled with coordination between policies and addressing the root causes of the crises, not just their symptoms. As we have previously stated, the fundamental cause of the problem is weak production across all sectors, and the exchange rate is merely a symptom revealing the extent of the illness.
It is self-evident that the government should not adopt policies and procedures that have already been implemented and whose results are known, especially when relevant authorities participated in their development. This is essential for integrated efforts to achieve the desired goals. Specifically, the issue of food security should be a central focus of every plan and program, not just a matter of ad hoc decisions and hasty measures, in order to achieve food security.
I begin my commentary on these decisions with the prohibited list system, which has proven ineffective and failed to achieve its objectives. It can only be implemented as part of a comprehensive package of policies. I wrote an article about this when the relevant ministry issued the decision. I would like to point out that most current wars are driven by conflicts over resources and food security, and that securing food should be a top priority for governments, not just in the short term, but in its strategic dimensions. This means that food security programs should be central to government priorities and an integral part of its plans, not merely reactive measures for temporary solutions.
Addressing the problem of food shortages and rising prices, which has affected every citizen, requires adopting clear policies toward the agricultural sector, especially as we now enter the winter season, the season for wheat, vegetables, and fruits.
The measures and decisions taken by the President are expected to help resolve a temporary problem, ensuring and facilitating the flow of some food commodities. However, they will increase the demand for dollars and drive up its price against the pound. Despite this, we support their continuation for a period of time that guarantees the availability of these commodities in the markets. We emphasize that the correct emergency measure in light of the apparent global food crisis and the looming threat of war is to focus on the current agricultural season, especially after the decline in rainfall and the shrinking of rain-fed agricultural land. This makes prioritizing efforts in the irrigated sector to bridge the food gap the highest priority, and this can be achieved through the following:
First: Establishing a high-level emergency operations room and state-level operations rooms to monitor all stages of agricultural preparation for the winter season in irrigated projects.
Second: Providing the necessary financing for irrigated projects for preparation operations (fuel, seeds, fertilizers, pesticides, spare parts, etc.).
Third: Creating an agricultural financing portfolio with the participation of the Central Bank and other banks, supported by guarantees to ensure the availability of all necessary supplies.
Fourth: Implementing the package of customs and tax exemptions announced for all winter season supplies. Fifth: Taking legal measures to incentivize all those involved in the success of the planned emergency agricultural program, from field farmers to project management, government departments, and operations rooms, while simultaneously penalizing and holding accountable anyone who obstructs the program’s progress.
Sixth: Reviewing the annual and strategic agricultural plans and rectifying the executive management structure of the agricultural sector.