ABSTRACTION

This article examines the economic difficulties Sierra Leone faces, highlighting the complex
problems impeding the nation's economic growth with the use of a traffic analogy.
The piece makes comparisons between economic policies and traffic control, emphasising how
errors in monetary and fiscal policy might hinder development in a manner equivalent to careless
driving causing traffic jams.

By employing a traffic analysis, the paper offers a distinctive viewpoint on Sierra Leone's
economic difficulties by illustrating the interdependence of economic factors and the
requirement for sensible regulations to guarantee sustainable economic development via the use
of a traffic analogy.

In order to combat economic volatility and instability, the article suggests a number of economic
laws and regulations, including the Taylor rule, the McCallum rule, and Keynesian interventions.
The piece also discusses the mishandling of pension money, making comparisons between the
difficulties older generations confront in the economic model and inadequate pension
administration.

Keywords: Economic Predictability, Tax Subsidies, Exchange Rate Depreciation

Sierra Leone JEJ Classification: F18, E13, E14, 2023

Author: Tel- +23278737183

Email: Address- [email protected]
Department of Economics /University of Makeni, Sierra Leone/ Economic Association of Sierra Leone/ Commonwealth Youth Scholar/ Gateway policy consultancy Firm.

1 I find myself thinking about Sierra Leone's economic situation in terms of a traffic
comparison. This viewpoint reveals the intricacy and difficulties that define the
country's economic development using the lens of a traffic analogy.
https://linktr.ee/emmanulbongay https://universityofmakeni.academia.edu/EmmanuelBongay
THE ECONOMY OF TRAFFIC IN Simultaneously, poor management
SIERRA LEONE exacerbates the situation, leading to an
unintended diversion. Like a motorist who
After years of intense study and research, lacks skill, making unnecessary jerks and
towards a Bachelor of Science Degree in stopping, mismanagement shows up as
Economics with a focus on the complex
inefficient resource use and a glaring lack of
fields of interest in Policy and Climate systematic financial planning.
Change Financing, Environment Economics,
Macroeconomics, Development Economics, Comparably, like an automobile that
and Data-driven Economics. I find myself struggles to keep moving forward over
thinking about Sierra Leone's economic uneven terrain, the economy has trouble
situation in terms of a traffic comparison. growing sustainably when important
This viewpoint reveals the intricacy and industries are ignored. Like a careless driver
difficulties that define the country's endangering the safety of every person on
economic development. the road, inadequate leadership placed the
country's economic stability at risk.
Getting throughout Sierra Leone's complex
economic environment is a lot like driving a Tax subsidies create a confusing financial
car through an intricate network of crowded landscape, much like signs that instruct
and chaotic roads. In such an analogy, the drivers to go in opposing directions. While
fiscal and monetary policies play the parts of subsidies might provide short-term relief,
the accelerator and steering wheel, their long-term implementation often leads
correspondingly, in trying to direct the to inefficiency and a skewed distribution of
country's economy in the direction of resources, worsening already existing
expansion and equilibrium. economic conditions.

Unluckily, the route accompanied has

pavement with a variety of obstacles that are
reminiscent of mismanagement, corruption,
economic inequality, inept leadership,
government handouts, and a disintegrating
Picture credit: Mohamed Kamara
macroeconomic balance.
Exchange rate depreciation is analogous to
Like a hidden and lethal sinkhole, corruption tyres losing grip on a wet road. It becomes
creates strong barriers that inhibit economic more difficult to maintain a stable economic
progress. Similar to how careless drivers path when the value of the home currency
obstruct traffic, the corruption that breeds declines. Devaluation reduces buying power
dishonesty siphons off funds intended for while increasing inflationary pressures at the
national development projects, ultimately same time. Public Policies and Systemic
undermining the potential of the country. banking failures are like car engines that
don't work right.

2 I find myself thinking about Sierra Leone's economic situation in terms of a traffic
comparison. This viewpoint reveals the intricacy and difficulties that define the
country's economic development using the lens of a traffic analogy.
https://linktr.ee/emmanulbongay https://universityofmakeni.academia.edu/EmmanuelBongay
Similar to how traffic patterns highlight the Similar to efficient traffic flow management,
complexity of urban movement, Sierra the Taylor rule might lessen sudden
Leone's economic environment reveals a movements by matching interest rates to
variety of complicated problems. These inflation and production gaps. Keynesian
difficulties come into contact with economic ideas place a strong emphasis on the use of
variables including tax laws, currency rate fiscal measures to keep the economy stable
depreciation, unemployment, and erratic during fluctuations and on coordinating
macroeconomic data. Economic theories and traffic management techniques to avoid
regulations may be used for assessing each unexpected bottlenecks.
of these factors.
In Sierra Leone, subsidies require careful
Economic predictability is hampered by resource allocation, equivalent to traffic
unstable macroeconomic indicators that are congestion. By incrementally cutting
much like unpredictable patterns of traffic. subsidies, the Friedman Milton approach—
The McCallum rule, the Taylor rule, and which promotes limited government
Keynesian policies need to be implemented intervention—suggests preventing resource
in this situation in an equitable manner. misallocation, just how traffic congestion
Similar to consistent traffic management may be avoided through improved
principles, the nominal income growth infrastructure. Similar to rerouting traffic
consideration of the McCallum rule might during road closures, the Keynesian rule,
moderate indicators. Similar to averting which places a premium on government
unexpected traffic interruptions, the Taylor spending during economic downturns, might
rule's matching of policy rates with address the problem of unemployment.
economic conditions may reduce volatility.
Similar to traffic rerouting techniques, Similar to traffic laws, tax policies have an
Keynesian interventions during economic impact on economic conduct. Similar to
well-regulated traffic flow, using transparent
downturns might minimize issues associated
to unemployment and guarantee smooth and efficient tax policies—as advocated by
flow. the stability emphasis of the Taylor rule—
may spur economic growth. However, as
Volatility in rates of interest undermines the suggested by the nominal income growth
country's economic stability, just like erratic factor of the McCallum rule, tax policy must
traffic patterns do. Possible remedies include balance generating revenue with fostering
the Keynesian rule, the McCallum rule, and economic activity in order to be in line with
the Taylor rule. Like well-maintained economic stability.
highways which guarantee smooth traffic,
Depreciation of exchange rates affects
the implementation of the McCallum rule,
which grounds monetary policy on nominal economic stability in a manner similar to
income growth, might offer a secure that of roads. In this instance, the McCallum
rule may help preserve exchange rate
foundation for economic decision-making.

3 I find myself thinking about Sierra Leone's economic situation in terms of a traffic
comparison. This viewpoint reveals the intricacy and difficulties that define the
country's economic development using the lens of a traffic analogy.
https://linktr.ee/emmanulbongay https://universityofmakeni.academia.edu/EmmanuelBongay
stability, similarly to the way well-kept In the traffic comparison, the mishandling of
highways provide easy travel. road infrastructure is analogous to the
incorrect channeling or misuse of pension
In the detailed context of the economic funds, which are representative of the
overlapping generation model, in which economic model. The deficiencies in
successive generations live side by side and
pension fund management obstruct the vital
follow the path from young job to old age financial channels that support seniors'
pension, a relationship with the detailed subsistence, much as traffic jams and the
dynamics of vehicle traffic on a convoluted ensuing jams caused by poorly maintained
network of roads becomes apparent. roads. In the same way as traffic jams cause
According to this paradigm, people work delays, annoyances, and disappointment
hard throughout their productive years and among commuters, poor pension
accumulate savings that they may use in administration creates obstacles to the
their later years of retirement. The pension smooth flow of funds, causing instability in
systems' process of intergenerational the economy and hindering future growth.
exchange plays a crucial role in coordinating
a dynamic whereby the retired population's Think of the vehicles navigating dirty roads
financial support comes from the payments as a representation of the younger
made by the a working generation in generations in the overlap generation model.
existence. Just as cars struggle to get over obstacles on
crowded roadways, so too does the younger
Likewise, a comparable similarity is seen generation's ability to save and invest due to
between the operational status of a road a poorly run pension system. This mimics
system and the management of pension the constrained flow of automotive traffic by
plans. In the same way that poor pension reducing the mobility of resource
management leads to pensioners running transmission across generations. In addition
into challenges while trying to obtain basic to disrupting economic equilibrium, this
benefits, a poorly designed road system restriction feeds a vicious circle of
causes traffic jams. In the context of the frustration, inefficiency, and possible long-
economy, mismanaging or allocating term hardships.
pension funds incorrectly creates a barrier to
the older generation's capacity to fulfill their
financial obligations after retirement.

This supports the traffic analogy, which

EMMANUEL BONGAY
compares inadequately managed pension https://linktr.ee/emmanulbongay

funds to a deficient and inefficient transport

system.

4 I find myself thinking about Sierra Leone's economic situation in terms of a traffic
comparison. This viewpoint reveals the intricacy and difficulties that define the
country's economic development using the lens of a traffic analogy.
https://linktr.ee/emmanulbongay https://universityofmakeni.academia.edu/EmmanuelBongay