What you need to know:
By controlling commodity prices, ongoing projects will continue without interruptions. It allows people to concentrate on the other aspects of their lives. Countries must pay attention to the impact of banning exports of certain commodities.
As the world slowly gets back to life following a major battle against a pandemic that left millions of people dead, we are yet again faced with a global challenge to solve. The increasing cost of commodities is becoming so pronounced that we cannot look away.
We must pay attention, or else we might find ourselves deep into another poverty hole. Even before commodity prices began to rise, the costs of these items were already biting. Items like washing soap, salt, and sugar were not easy to afford. Most of our businesses struggled to recover as many of us abandoned them and solve the effects of Covid-19.
The whole world faced the wrath of this pandemic for at least two years. Until today, many of us are still struggling to get back the livelihoods that we lost during the coronavirus disease. As we do that, we find that we have to deal with the rising cost of every commodity, which at a global level has gone up significantly. From the usual grocery to materials for construction, things have become high.
ALSO READ: High prices: Govt turns its back on Ugandans
We now have to dig deep into our pockets and spend much more on commodities. With this expensive trend set to continue, at some point, our ability to pay for some stuff might be undermined unless somebody comes up with a moment of magic – a quick solution. We look to the powers that be to come up with the much-needed magical moment to get us back to the business benchmark that we were at in 2020.
To get us to the prosperity levels that we aspire to arrive at. Whatever the reason it is for the global rise in commodity prices, we suspect the genesis to be that many countries are now restricting their export of some essential commodities. We also think that many more countries have stopped the export of their locally produced goods.
That due to scarcity within, they have to cushion their internal consumers. If it is true that countries are limiting exports, then countries that depend on these exports are now forced to look at other alternatives. At the same time, supply is scarce and prices will continue to rise. It is a lesson for countries that are mainly importers of such commodities.
They need to find a good solution so that they do not face similar difficulties in the future, especially for foodstuff. It has come at a time when many countries did not see such hardships. If countries continue to restrict exports, the difficulties will continue. Supplies will be scarce, and the increased demand will lead to a continuous rise in prices.
That is our concern, and least-developed countries will suffer the effect of the increasing commodity prices. Since they depend mainly on commodity imports, they spend more. That is why this aspect of the economy demands careful attention. There is a need to maintain a constant supply of commodities and stable prices for the betterment of consumers.
By controlling commodity prices, ongoing projects will continue without interruptions. It allows people to concentrate on the other aspects of their lives. Countries must pay attention to the impact of banning exports of certain commodities. They need not be left behind. Avoid the over-dependency on imports. The poorer ones must produce enough for themselves so that they don’t fall into the desperate zone.
We cannot leave nobody behind if the prices of commodities continue to increase. At the moment, countries are caught up between the rising commodity prices and the recovery from the effects of Covid-19. We need to come out of it quickly. It is a lesson for us to take.
Simon J. Mone is a Civil Engineer, [email protected]