opinion

Morning Economy – Part 2

In developing countries, granting full economic freedom to the producers in their “morning markets” will put the entire economy on the right track and will eliminate illegal activities inside countries and along the tense borders.

Mekki ELMOGRABI
Press Writer on African Affairs
WhatsApp & Telegram +249912139350
elmograbi@gmail.com

The second question: Trade, Industry or Agriculture?

Improving the economic performance is needed in three sectors of trade, industry, and agriculture but which one should be prior? Or in other words, which sector could help in improving the two others faster and more efficiently? I think the trade. Why? Here is the answer.

The already existed achievements in industry and agriculture are stuck between the formal and informal sides of the economy. Also, the obstacles in the flow of industrial and agricultural products prove that the producers cannot achieve more success. We need to help them so they can improve their sectors.

logically, bringing the existed achievements out from the gray economy and integrating them within the modern organized economy is before search for new achievements.

For example, the producers from the sector of “agricultural processing” are facing a real problem at the stage of marketing because, in some cases, borders are closed or not having any priority within the national policies. The producers lose the money that would help them in improving their sectors. The success in trade-in morning markets will lead automatically to the success in the primary stages of processing which are “packing and storing”. This could happen with no government intervention but by the power of the competitive market.

Another example, in the discussion on “production and productivity”, some would rush to the role of the government in setting plans and exporting technologies and agricultural inputs that help to improve productivity. Still, the trade approach is better. In a competitive economy, the free zones can play a better role than the government’s direct intervention. In some cases, technologies and inputs are available in neighboring countries. It was clear that, if the producers are allowed to sell their products freely, then they can purchase the “productivity” possibly in the same morning market. If the government can solve a lot of problems in the sectors of agriculture and industry by adopting smart policies in trade, why do we need to start direct intervention in these two sectors?

The third question: Informal or Formal economy?

Here is the problem, it is in the government strategies and intervention. instead of adopting flexible short-term policies that build the trust between authorities and local communities, the government raids threaten or close some markets to enforce the law. Consequently, these actions push – falsely classified – informal activities to be part of smuggling and trafficking. Then the illegal activities will create a suitable environment for rebel groups, armed movements, trafficking in persons’ gangs, and lately the unwelcomed guest “terrorism”. What a bad recipe for law enforcement!

As a result, Imposing the formal economy makes the government destroying itself and changing farmers and producers into warriors, criminals, and illegal immigrants. So, no way for a better approach for improving developing and underdeveloped economies without respecting and working with the informal economic sector through a gradual and smart process of formalizing and developing. 

The fourth question: Inclusive reforms or more focus on markets?

We reach this point with the priority of developing informal trade but still, what is the best and more practical step to do that?

Even Morning Economy is dealing with economic activities that need general policies but still, the question is valid; Is it better to launch a strategic plan for production being informal or informal in all sectors or to focus on the zones with the heaviest concentration of informal trade activities and to work shoulder-to-shoulder with the stakeholders in an atmosphere of trust and fair policies. The practical and pragmatic answer is to deals with zones because this approach matches the limited power of governments and local authorities.  The said zones are the community markets, producer markets, and border markets that already existed, or even closed because of government intervention.

Border and producer markets are easy to be connected with morning time. In some cases, producers choose one day a week or a season in the year because they cannot come regularly. They come in the morning because they prefer to spend some hours and to save the rest of the time for their essential process of production. In border areas, people need to come during the morning time and then travel back in the daylight. In the third category, the modern free trade zone, the morning time doesn’t make the same difference. Yet, the regional free trade zones are – in several aspects – part of the Morning Economy because they are highly connected with producers and suppliers.

What are the direct results of the Morning Economy?

  1. Strengthening economic freedom by domesticizing the market economy orientation.
  2. Enhancing democracy, political and civil freedoms because the financial independence of the local producers is the real change that empowers the community and individuals to protect their rights and freedoms. 
  3. Solving big and complicated problems easier by building trust between the community and the government.
  4. Empowering the communities to make wealth and to use it in developing their economic sectors by themselves.
  5. Eliminating the negative factors such as smuggling, trafficking in persons, black market, and illegal activities.

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