Quote from: Promocodeudo on January 22, 2024, 10:48:03 AM

Quote from: Funke on January 21, 2024, 10:30:45 PM

Price Regulatory Mechanisms: The Solution to the Economic Hardship in Countries

The basic principle of businesses and productions is making of gains for the advancement of that business and life. In most cases , state economic systems determine the constant increase in the prices of goods that leaders to the hardship.

In political Economies, three factors generally leads to price increment.

1. Increase in Petroleum products, the increase in fuel , diesel prices automatically increases the price of transportation and distribution of goods across state boarders.

2. The forces of Demand, when there excess demand for a product, an artificial scarcity is created which places value on the product. This scarcity is artificially created by two means - There could be scarcity created by shortage in the production and distribution process or short of the product in the market over a period of time.

3. Supply Chain, the supply forces are most times influenced by the increment in petroleum products and other motor body parts, the cost of transportation as the major means of distribution and supply greatly affects the price of goods , which makes it hard for individuals to easily purchase such products.

These factors are greatly affect in times of war and conflicts. For instance inflation the Russia - Ukrainian war.

https://www.statista.com/statistics/296164/ukraine-inflation-rate/

The Nigeria civil war of 1967 -1970 ended as a result of the artificial scarcity and inflation that was caused by the Nigerian Government. Nigeria's inflation increased from 0.3% to near 10.5% inflation rate in 1967 to near 20% by 1970, the afterward effect of that war raised inflation to over 20% from 1974.

https://www.funtimesmagazine.com/2023/01/15/423779/the-nigerian-civil-war-against-biafra

What will the government do to reduce inflation and hardship among the citizens that are complaining especially countries with such unbearable inflation's.

What states and countries needs is an effective price regulation body and law on certain areas that directly affects the citizens.

1. Petroleum products Price Regulatory Board (PPPRB) is an essential component that need to improve on its effectiveness especially in the Nigerian economy for instance, component states also need the same board in regulating the price and behaviours of petroleum product marketers , like the petroleum task force of states that will be effective enough to regulate the constant increment of prices of petroleum products.

2. House Rents, in many African countries, house rents are increased by landlords at will whenever they like , thereby putting an undue pressure on tenants especially in urban areas. This pressure and hardship has also lead to decrease in population or urban - Rural Migration.

3.Electricity Price Regulation, Power supply in most African countries are privately produced and distributed , so prices of electricity tariff increases at every point for the purpose of making gains.

4. Externalities such as consumable, externalities are essential products or goods man cannot do without. Government of states and countries should create a task force to regulate the powers of monopoly on such products.

In another way, governments should be the producers of some of these products , the distributor and retailer of these products in order to drag down the monopoly of the private hands.

Yes I agre with you that government should be in charge of most products both in production and distribution so that the price can be subsidize, but I must tell you that even though the government take charge of the production aspect without strict monitor, there will still be price hike by the retailers, if price control can be effective, then we can get it right, the problem most under developed nations are experiencing today is as a result of inefficiency of their government to set a standard for their pricing scheme but before the government solve this problem, the gas industry or petroleum sector has to be tackled very well because this sector virtually controls every aspect of logistics and production, a country that doesn't have a good gas sector does not function well for some at reasons, so this calls for the urgent attention of the government, before you control some stuffs you have to put somethings in other, you can't control a price of goods when the transportation is high and production aspect aspect unbearable because of high cost of raw materials, but we have to start from somewhere to make it right.