For Alves da Rocha, adjustments to fuel prices, with the removal of government subsidies, are a measure that results from "necessary adjustments in economies," such as in Angola, because economies cannot be out of balance.
"Economies have to make adjustments. There are adjustments, both at the macroeconomic and microeconomic levels. And some adjustments take time to be made and are more painful than others," the economist stated.
In statements to Lusa, when asked about the new fuel price increase in Angola, the expert stated that the government measure contributes to economic balance and growth, if things are done properly.
"But the fact is that economies cannot be out of balance," he maintained, emphasizing that regarding fuel prices, Angola, in this regard, "has always been out of balance relative to the rest of the world."
He argued that fuel price adjustments in Angola should have been made long ago, emphasizing that if they had been, the economy would probably have absorbed the negative effects of these adjustments.
"And therefore, clearly, when fuels are subsidized, and since fuels are an element, a factor, in the functioning of the economy and factories, there is clearly a cascading reaction that will have repercussions on inflation," he said.
The director of the Center for Studies and Scientific Research at the Catholic University of Angola (CEIC-UCAN) also considered that wages could mitigate the negative impact of fuel price adjustments, but expressed concern about inequalities in the country.
"What concerns me, especially here, is the tremendous inequality that exists in Angola, between people, between sectors, but above all, between people. And these inequalities, to be resolved, require time, a lot of time," he emphasized.
He considered that inequalities in Angola should have been reduced long ago, "because there was sufficient national income at the time" and that Angola "is one of the most unequal countries in the world."
"And to demonstrate this, one only needs to look at the wage levels in Angola, at all levels, the amount of monthly and annual salaries, in all sectors and across all levels of the population, which are, therefore, wage levels that do not help the economy grow," he insisted.
Criticism of the measures to remove state fuel subsidies, the economist continued, stems from the current income distribution model in Angola, which, as he pointed out, needs to be different.
"Naturally, the population reacts with reason; they wouldn't react if the social situation, the income distribution situation in Angola, were completely different," the economist emphasized, noting that economies don't grow with investment alone.
Alves da Rocha also highlighted the need to consider income, "wages, and the creation of endogenous national demand that enables private investment." But to achieve this, he concluded, "there must also be public investment in infrastructure."
