September 21, 2021
By Dadson A. Musa
Since independence, our currency the Leone has been steadily losing its value. At the time we gained independence in 1961, the Leone was equivalent to the pound sterling, the British currency.
Basic economic principle tells us that what gives value to a currency is the ability of a country to export enough and have foreign currency reserves. Raw material export like rutile, diamonds, gold, timber is what our economy is characterized by.
This does not bring much foreign currency.
Manufacturing these raw materials into finished products is what will bring us much foreign currency earnings. This is what will bring a turnaround in the value of our currency and hence improve the economy. This is what will make the bread and butter issue in our country better and put citizens at ease.
A strong currency gives the country the purchasing power ability. This has been lacking in our country for over three decades now. Hyperinflation had hit our economy as we have seen too many Leones chasing too few goods. And Professor Kaifala Kallon is attempting to address the age –old problem of inflation in our country by using another method which I find strange as it goes against basic economic principles. I see his attempt to put too few Leones into circulation ignoring the other rules of importing less and exporting more. Inflation has caused lots of hardship on the people of this country especially the ordinary citizens.
He is a professor in economics who has lived in the developed world for a good part of his adult life and has lectured that subject. I hope he is not here to implement armchair economic principles. Here is what he should have advised the president to implement; get the technocrats and the professionals to run the economy not political appointees, start importing finished products which will bring us more money instead of raw materials, ensure a stable and peaceful socio-economic climate in our country, continue with the robust fight against corruption and stop the leakages and ensure the free quality education does not fail.
The intention is good prof. but the methodology is what we have issue with. It is a short cut methodology to achieve what should be sustainable. It should be step by step, gradual and bottom-up. Our country has potential but it is bad politics that has got us here so we do not make you the fall guy. The war, Ebola, mudslide and now corona virus are plausible excuses. We are about to put that behind us and we hope that if you are still in charge you will change approach to handle the bread and butter issue of Sierra Leoneans and reduce inflation using the sustainable methods.