May 20th, 2008 12:16 EST
Why is the Universal Price Increasing on Commodities
I think the world is thirsty to experience another era, only then could we tell…
On thesop’s behalf, join me to find out what our society thinks about the latest hits on the planet.
Why is there a universal price increase in most commodities?
Mr. Nkwutio Feko response;
The first English speaking Cameroonian with a B.A (hon.) Economics, working in the Custom Department -1970).
This universal increase in prices of basics and other commodities routes from cumulative sources;
Firstly, the increase in fuel has contributed directly or indirectly to the skyrocket in prices of most commodities. You have to understand that before these commodities reaches their final consumers, it had passed through various means of transportation, whose source of energy is fuel…thus leaving these entrepreneur with no choice than to implement marginal cost so as to meet up their purchasing cost.
Furthermore, the rampant seasonal change which is as a result of global warming has cause a lot of harm on the environment. This destruction on the ecosystem, raw materials, semi & finished goods has created a situation with limited supplies of these vital materials for the available population.
Again another silence invader to price increase is corruption. That is to say, some contractors or retailers sometimes inflate prices since they are the sole suppliers for these produce.
Among other cause is conflicts e.g. Niger Delta crisis. Imagine in such an unstable milieu, there is destruction of available resources which enables the indigenous to meet earn needs. And once it has been destroyed that society is bent to face shortages, hence increase in price for the little available resources.
Mr. BisongTiku response;
We have to understand that each continent has its greatest problem which has contributed for its hike in prices, besides global warming, anthropogenic and natural disasters.
Africa is in to this crisis because of its tendency to be dependent. Africa has this dependency altitude; she doesn’t produce, talking of consuming her own products.
For the last centuries, Africa is only interested in to grammar schools and neglects vocational training, all these has been one of the reasons why Africa depends a lot on foreign aids. But today, things will change because they have understood where they stand.
And in the West, I think some of the reasons behind increase in prices on commodities have been due to terrorism…that is to say, rampant bombing and destruction of infrastructure, equipments & valued properties which helps in building the economy.
The issue of fuel price rising every second is because of greed; actually the world still has crude oil which can last for the next decades if sustainable manage.
What is the way forward to remedy such a situation?
Mr. Nkwutio Feko response;
We live in a dynamic world where things are suppose to change, hopefully for the better.
For example, there is need for alternative sources of energy (biomass, wind & solar energy…). And this could only be a success if the entire public is greatly sensitized about its convenient.
Besides, every individual should shoulder as responsibility for sustainable development.
Talking about Cameroon, she feels this is a time to cut down prices on basic commodities and others.
Is this measure a brilliant idea?
If so, how will it help the population in an era where the world is facing a price rising in all available resources?
Again what are some propose measures that the state could implement to better the state of living in Cameroon?
Mr. Nkwutio Feko response;
Cameroon is an ambiguous case; she behaves like a nation with no natural resources yet known as Africa in miniature. Any country bless with abundant resource at least operates in a low tariffs on imports, low taxations on investors etc. instead it’s the vice with multiplicity of taxes, a tax on a tax.
This idea of forcing people to reduce prices is uneconomic, stupid because these buyers sell with respect to the price the buy, also they will need to make some profits. There are other reasonable ways without hurting the population; physical measures like tax and tariff reduction and the nation make up these differences from petrol…what a shame! We had pledge our oils, but lets re-negotiate e.g. I pledge my oils when a price per barrel was 25 dollars, and today it’s greater than 126 dollars per barrel so let the terms be agree so that both parties are not cheated. And if, this doesn’t work, T he state nationalizes or sue his partner to court for breaching of statutory obligations except for “force majeure”. Instead the nation has made itself to be a French outpost not a sovereign country.
Again this nonsense on salary increase is a total confusion, it is actually doing no good because what will the people buy will a 2o percent increment in salaries.
In my opinion, it will be wise for the state to provide price supports for a period of 6 mouths, subventions and lower tariffs. In addition, taxation system be reformed, well understood by the public especially in areas on direct taxes.
Corruption which is a global malaise should be at least reducing to a friendly level.
Mr. Nkwutio Feko, whose is a mentor, among the first ever Cameroonian who won the United State Agency International Development (USAID)-1966 and many other awards.
Founding member of Southern Cameroon Restoration Movement (SCARM),
Founding member and former secretary general for Southern Cameroon National Council (SCNC),
Founding member of Social Democratic Front (SDF)
Founding member & secretary of British Cameroon Independent Action Group (BRICAMIAG).
B.A (Hon.) History & Political sciences.
Founding member of University of Buea Student Union (UBSU)