I have said this before and I will say it again. Puntland must cease immediately this un-planned free market approach, which will not lead to investors coming. Investors will only come when there is a 'purchasing power' among the locals and the purchasing power of the locals can only be guaranteed by 'regulating pay and conditions' of all industries in Puntland.
We need to set 'bare minimum wages' of each industry and we need to correlate our wages based on the housing/grocery/utility costs locally and set a realistic wage and conditions so it can lead to a stronger purchasing power among our locals. We need to calculate what the average family grocery bill is, rent or mortgage, utility bills across a year and set in laws that no company in PL can pay less then this. This must be seen by our business people as necessary to revive PL economy and ensure growth which is what investors demand.
In-fact we should add a 'little extra margin' to include a savings and spendings allowance on our workers as this will stimulate our banks who will have more saving accounts to withdraw from while using that as 'lending' money to new start ups or mortgage clients.This will also stimulate our market to increase their goods/products/produce as their will be more disposable income from workers generating demand.
For example if a house/land cost 50k for an average family. We must divide 50k over 20 years mortage plan. That means their housing costs alone will be $2500 a year. Then we need to add their phone/water/electricity/school/health cost. Let's say that's $250 a month x 12 months. That's another $3000. Then add a reasonable amount of savings a year to ensure our banks have lots of customers with disposable income after expenses r paid. Savings should be anywhere 10-20% on top of income so add $500-1000 a year for savings or extra spending in the market.
So a fair livable wage in PL should be. $2500 for housing, $3000 in living costs expenses and anywhere from $500-1000 in savings. That's $6000-6500 a year. We should set this amount immediately as the bare minimum for any industry as this will oversee economic revival in our banks, our markets will have more demand and therefore produce more, and our housing sector will boom with new clientele.
$6500 a year is roughly $500-550 a month. We should ensure no worker goes below this minimum wage. We need to then assess other industries which require skills and set these jobs higher then minimum wage jobs while also ensuring they have the same level of protections for high skilled workers. Once we do this we can index the minimum wage according to yearly inflation which should be around 1-5% a year in a stable market place if there isn't any disturbance to general 'spending and production' areas.
If we do this we can manage our economy not let our economy manage itself, our market place needs to grow with more products and goods and this cannot happen without ensuring locals have purchasing power. The more our locals have purchasing power, this gives an incentive for more suppliers to be generated to service this growing market. If we set our wage laws to be pegged to realistic housing/utilities/savings indexes, we will ensure, each generation will follow in the previous generation foot-steps and purchase houses, cars, products and goods and have savings in the bank.
We need to set 'bare minimum wages' of each industry and we need to correlate our wages based on the housing/grocery/utility costs locally and set a realistic wage and conditions so it can lead to a stronger purchasing power among our locals. We need to calculate what the average family grocery bill is, rent or mortgage, utility bills across a year and set in laws that no company in PL can pay less then this. This must be seen by our business people as necessary to revive PL economy and ensure growth which is what investors demand.
In-fact we should add a 'little extra margin' to include a savings and spendings allowance on our workers as this will stimulate our banks who will have more saving accounts to withdraw from while using that as 'lending' money to new start ups or mortgage clients.This will also stimulate our market to increase their goods/products/produce as their will be more disposable income from workers generating demand.
For example if a house/land cost 50k for an average family. We must divide 50k over 20 years mortage plan. That means their housing costs alone will be $2500 a year. Then we need to add their phone/water/electricity/school/health cost. Let's say that's $250 a month x 12 months. That's another $3000. Then add a reasonable amount of savings a year to ensure our banks have lots of customers with disposable income after expenses r paid. Savings should be anywhere 10-20% on top of income so add $500-1000 a year for savings or extra spending in the market.
So a fair livable wage in PL should be. $2500 for housing, $3000 in living costs expenses and anywhere from $500-1000 in savings. That's $6000-6500 a year. We should set this amount immediately as the bare minimum for any industry as this will oversee economic revival in our banks, our markets will have more demand and therefore produce more, and our housing sector will boom with new clientele.
$6500 a year is roughly $500-550 a month. We should ensure no worker goes below this minimum wage. We need to then assess other industries which require skills and set these jobs higher then minimum wage jobs while also ensuring they have the same level of protections for high skilled workers. Once we do this we can index the minimum wage according to yearly inflation which should be around 1-5% a year in a stable market place if there isn't any disturbance to general 'spending and production' areas.
If we do this we can manage our economy not let our economy manage itself, our market place needs to grow with more products and goods and this cannot happen without ensuring locals have purchasing power. The more our locals have purchasing power, this gives an incentive for more suppliers to be generated to service this growing market. If we set our wage laws to be pegged to realistic housing/utilities/savings indexes, we will ensure, each generation will follow in the previous generation foot-steps and purchase houses, cars, products and goods and have savings in the bank.
