Consumer rights

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The recent government decisions on tariff reductions and bank mergers have generated much public interest. The decisions re-establish a measure of trust between government and people. The stock market soared after the decisions, as they are expected to reduce red tape and enhance transparency in commercial transactions. Tariff bands have been reduced to 6,000 bands instead of 13,000. There is one tariff per each good, not several as was the case in the past.

What makes these measures particularly effective is that 80 per cent of which would benefit the entrepreneurs, for tariffs have been reduced on capital and intermediate goods, spare parts and motors, as well as means of transportation. By doing so, the government has corrected an endemic flaw that had dogged the national industry for long -- it is no longer cheaper to import a final product than to manufacture it locally. Every one felt good about the new measures, then the government decided to raise the price of diesel oil by 50 per cent.

The record -- of previous governments and this one so far -- shows that the government has no clear mechanism to ensure that the benefits of tariff reduction would trickle down to the consumer. In theory, the laws of supply and demand should take care of such small details, but in reality market forces are unreliable and will remain so until we establish a mechanism to combat monopoly and defend consumer rights.

We cannot rely on the goodwill of merchants alone. Duties on tea have been removed two years ago, but tea prices did not go down -- and the importers are getting richer. This scenario is happening again with diesel oil, for microbuses have just doubled their fares. If the government really wants to help the people through its economic measures, it should pass a law for consumer protection, a law allowing civil society groups to monitor the market and sue traders engaged in unfair pricing. Civil society groups should monitor the market, not the officials of the Ministry of Supply.

As National Democratic Party ends its conference today, it has to keep in mind that it needs to win the nation's trust. The average citizen needs reassurance that the government is intent on providing his/her basic needs at reasonable prices. Prices are a political issue. Fair prices are an integral part of reform.