Signposters Be Warned: We Are in South Sudan, Not Southern Sudan
References to Southern Sudan: Are they Due to Menu Cost or Our sloppiness?
07 September 2011

By James Alic Garang

To GURTONG - 6 September 2011 - I do not know whether you have noticed
an atypical prevalence in the Republic of South Sudan: everywhere you
look in Juba, there are labels reminding us of our past. When will
public references to Southern Sudan cease to exist and the new
signposts, signboards, stickers, markers, billboards or what have you,
spring up to replace “Southern Sudan” labels? I do not know what is
preventing some public and private institutions from changing the
labels carrying the words “Southern Sudan” to “South Sudan.” Needless
to say, Southern Sudan was a region within old Sudan while South Sudan
is a new republic, independent and fulfilled, period. We are the
later; not the former!

If you come or happen to live in Juba, you will not be surprised to
find labels referring to South Sudan as Southern Sudan. Such displays
equating the Country with the Region are eyesore, at least for me.
Take for example, the following institutions whose signposts are
pompously up on public places such as roadsides, ministerial buildings
or government fences:

1.Government of Southern Sudan, Ministry of Social Development,
Central Equatoria State, Juba; 2. Government of Southern Sudan,
Ministry of Commerce and Industry, Juba; 3. Bank of Southern Sudan
(BoSS) Banking Training Center, Juba.

This state of affairs is not unique to Juba or public institutions;
private sector is not exempted. Well, to give one more example, go to
Yei and you will find past labels in parade: 1. The acronym “BOSS”
which is fully spelt out “Bank of Southern Sudan” is on the signpost
at the bank premise; the signpost at the head office in Juba carries
the official name or new sticker “Bank of South Sudan.”

2.The same is true for Hillspring, a bottled water company whose label
reads “Yei- Southern Sudan.” I am not claiming to provide the answers
for our failure to bring down old labels.

Nonetheless, one hypothesis that comes to my mind is a menu cost
theory of sticky pricing. The other is a political negligence or what
I term our political leadership and organizational sloppiness. First,
I take it that for private sector institutions, one reason for not
changing signposts could be due to menu costs. What the heck is a menu
cost?

According to a New Keynesian Economist, Gregory Mankiw, there is a
cost to price adjustment called ‘menu cost.’ In other words, changing
prices or printing new price tags has a cost and unless the marginal
revenue resulting from the changed price exceeds the marginal cost,
firms do not instantaneously adjust price, leading to price stickiness
(Take it on face value from me that this sticky price model is in
sharp contrast with neoclassical economics which assumes market
clearing price).

To be precise, this piece is not about micro-foundation of sticky
price model but rather it is an attempt to get answers as to why the
labels or signposts depicting South Sudan as a region are still up on
notice boards, billboards, key pads in some hotels, guest information,
resort gates or some government properties. Second, someone might say
that we are almost two months into independence and it will take time
to change all old labels. But my question is: how much time do we need
to bring down all references to Southern Sudan in public places?
Another person might argue that there is a cost to public in tearing
down those old labels, therefore citing the menu cost argument.

However, one counterargument is that such costs are negligible
compared to public extravaganza or rent-seeking behaviours rampant in
South Sudan today. Even if there is a cost associated with changing
public labels, the cost is small and it is a price to pay for the
national pride. If our public servants especially head of institutions
care and take pride in our sovereignty, we should have removed old
labels by now and proudly displayed the ‘Republic of South Sudan”
signposts everywhere.

While some of our leaders or institutions concerned have not bothered
to check the consistence of the signboards or posters against the
nation official name, others have put up new signposts and are to be
applauded. Examples abound and they include Republic of South Sudan
National Employees Justice Chamber; Republic of South Sudan ,Ministry
of Foreign Affairs & International Cooperation; Republic of South
Sudan, Ministry of Justice; Republic of South Sudan, Ministry of
Energy and Ministry, etc.

In closing, references to Southern Sudan are still in full view across
South Sudan. You can make a case that the cost of changing the labels
might be high and thus, the private firms are reluctant to change
labels until the benefits outweigh costs. But on the part of Republic
of South Sudan public institutions, the excuse is indefensible. Our
national pride should trump economic cost. We therefore expect all our
institutions at the state and national level, to tear down old labels
and put up new ones. Is that too much to ask for? I suppose not.


Post your views in the space provided below.

Posted in: Opinions
Comments
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07/09/2011, 7:31 AM
 - Posted by Jacob Akol
What about blackening out "ern" until a new poster/billboard is
printed? That's cheap!

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