Ver Angola


Economist criticizes “isolated liberalization” of prices that only aims to “save the Government”

Economist Precioso Domingos criticized this Thursday the “isolated liberalization” of product prices, such as the gradual withdrawal of fuel prices, considering that this “only aims to save the government” and send the bill to families and companies.


"Reforms to liberalize the prices of goods, which affect all other goods in the economy, cannot be carried out in isolation, that is, the ultimate end of what are the advantages that come from it only occur when you have the economy manumitted", said Precioso Domingos to Lusa this Thursday.

For the economist, who was reacting to the announcement of the gradual withdrawal of gasoline subsidies in Angola, which will go from the current 160 kwanzas to 300 kwanzas/litre, the measure only aims to protect the government and "suffocate" families and companies.

"The private sector is imprisoned, the State is very controlling and this is a culture that comes from communism. I have said that it is not possible to be making a list of things that we are going to liberalize", he reasoned.

According to Precioso Domingos - who defends, however, the freedom of prices, with which economic agents can move -, any price, exchange rate or fuel, is correlated with the price of all other activities that are carried out.

"And then, from the moment that we liberalize in isolation, such as the price of fuel, we cannot leave the economy tied down, this was done with the exchange rate and I feel that we intend to do this with fuel", he noted.

Leaving the price of the others (products) "still controlled by the State or repressed", he pointed out, then the "desired effect from the point of view of what economic progress is is not achieved".

"I see this measure as an attempt to once again try to protect the State", insisted the expert, considering that the easiest "would be to liberalize everything and then see the list of things that can still be regularized by the State".

In the opinion of the university professor, what is actually happening is the "suffocating" of companies: "That is, I am in favor of liberalizing the exchange rate, fuels, the problem is how you do it, and you do it in isolation, just to save the government you are sending the invoice to the families".

Today, "basically, the work of entrepreneurs is being devalued, who have not stopped working less", concluded the economist.

The Government announced this Thursday the gradual withdrawal of gasoline subsidies, which will increase from the current 160 kwanzas to 300 kwanzas/litre, maintaining the subsidy to the agricultural sector and fishing.

According to the Minister of State for Economic Coordination of Angola, Manuel Nunes Júnior, the tariffs of taxi drivers and motorcycle taxi drivers will be subsidized, with them continuing to pay 160 kwanzas per liter of gasoline, with the State covering the difference.


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