7 June 2011
editorial
Nairobi — The more the clamour for price controls of essential goods continues, the more the government finds itself in a bind:
Whatever it does or doesn’t do, it will be condemned by either an increasingly restive public, or by producers. It is a fact that the prices of fuel and food have shot through the roof in the past year or so.
The British charity, Oxfam, predicts that a gargantuan humanitarian crisis looms worldwide, because food prices are likely to go up by between 120 and 180 per cent by 2030.
This will especially affect the 240 million Africans who are already malnourished or on the verge of starvation.
Among them are millions of Kenyans.
For Kenya, things are bound to get worse because the long rains have failed in most parts of the country, which will inevitably lead to severe deficits.
But how are price controls going to fix that problem? Any attempt at dictating the prices of food without an increase in supply will only lead to the commodities disappearing from the shelves.
Seeking ways to cushion consumers through subsidies could just work, but only if the process is transparent and sensible.
We do not want another situation where maize-meal is sold at different prices to the rich and the poor.
AllAfrica – All the Time
Link:
Subsidies Way Forward