Leadership (Abuja)
Samuel C. Onwubiko
17 September 2007
analysis
Abuja — Nigeria under the government of President Umaru Musa Yar'Adua has set a towring dream to become one of the 20th most developed global economies by the year 2020.
In this essay, Samuel C. Onwubiko, while expressing reservations on the daunting ambition also suggest how the nation can surmount the hurdles and cross to the promised land.
President Umaru Musa Yar'Adua made the most promising and challenging policy statement of his administration on June 18, 2007 while declaring open the international conference organised by the Central Bank of Nigeria (CBN) to brainstorm on the Financial System Strategy (FSS) 2020 vision. The president revealed the goal of his administration to register the presence of Nigeria among the top 20 economies of the world.
He was corroborated by Prof. Chukwuma Soludo, the governor of Central Bank of Nigeria, some days later, at the graduation ceremony of the National War College, Abuja, where the later stated the resolve of the administration to 'conquer the Dynasties of poverty.' Also at the presidential retreat organised for ministers, permanent secretaries and special advisers in Abuja between the 18th and 20th of July, 2007, the president revealed that the federal government has set a 13% annual growth rate for the economy till 2011 when his tenure expires.
The president had earlier at his inauguration speech on May 29, 2007, acknowledged the contributions of his predecessor, Chief Olusegun Obasanjo, at setting the economy on the path of growth and the resolve of his government to focus on accelerating the economy and other reforms by creating more jobs, reducing inflation and maintaining exchange rates for the attainment of rapid growth and development.
This is the first policy statement not just geared towards a buoyant economy but also at embracing global economy. The past has been characterised by escapist arguments and pessimistic views on the negative and terribly destructive nature of globalisation by third world countries. They saw globalisation as an exclusive cult of few advantaged industrialised nations spearheaded by the United States of America who set the standards. They saw it as a further exploitation and colonisation of the weak and disadvantaged nations by the more developed ones, especially with the roles played by institutions associated with forces of globalisation like the International Monetary Fund (IMF) 98, The World Bank, The World Trade Organisation (WTO) etc. They failed to realise that it is a development in the flux of time, a trend whose time has come and a phase in human development and historical evolution. Though it could be excruciating, ferocious, ravaging to the weaks and the groups that cannot absorb or utilize it, it is unstoppable.
But globalisation is not that evil and this can be justified by the progress made by hitherto underdeveloped countries like India, China and other Asian countries, even South Africa our neighbours, who are able to tap from the opportunities afforded by this new order. With its inherent contradictions and conceptual paradox, while it creates fragmentation, it generates inter-dependence and solidarity. Even as it provides opportunities for the spread of global wealth among regions and countries, it increases disparities between states and reinforces equalities among states and regions. It is a catalyst for development and reinforces tension also.
There may be strong economic growth in states that embrace globalisation, there my be declining poverty, but there is a yawning widening gap between the rich and the poor within nations as well as between states. Despite all these, the whole idea about integration of the globe, of reconnecting the human community and the bridging of international boundaries is unavoidable and inescapable. Nations who do not join the global train do so at their own peril.
Nigeria may have started experimentations at globalising. But how possible is the realisation or attainment of this 2020 dream, considering our rather belated realisation at joining the train, the time frame since 2020 is just 13 years away, and also considering that we are a distant 147 in the economic indices (ranking)? Will 2020 go the way of other past ritualistic unattainable ambitions? Health for all by the year 2000, housing for all by the year 2000, electricity for all by the year. Where are they today?
Target 2020 is realisable and achievable with political will and sincerity of purpose and commitment on the part of all stakeholders. Nigeria must copy from other globalised economies or emerging market economies especially India, China, and other Asian countries, who within a short period of time and with the least expectation grabbed the opportunities provided by globalisation and have positioned themselves as 'alternative economies' and 'kings in waiting' to the USA and central Europe.
China and Nigeria share certain common similarities. China is the most populated country in Asia, while Nigeria is in Africa. Like China in Asia, Nigeria is expected to play a major role in future world politics in her region. The two countries share similar experiences of external interest in their countries and, moreover, both countries in the course of nationhood, gave into complacency and inertia. China we are told had a head start over Europe and would have surpassed the later's civilization as a result of their initial integrity and creativity.
Nigeria on her own part is a country endowed with rich natural, human and material resources and had started with this slogan of 'Giant of Africa,' but all these has not been harnessed to greatness. China set on the path of realisation and restructuring with the socialist Revolution of 1949. Chairman Mao Tse Tung and his Chinese communist party charted the course to development anchored on nationalism. Since then China has not looked back.
This could be the opportunity Nigeria has been waiting for. A wholistic and encompassing approach needs to be adopted following the various reforms adopted by these transition economies which goes in tandem with global trends. Government must start the fixing, upgrading and development of its social infrastructures, those inter-connected structural elements that form the framework supporting an entire system, that helps other economic agents to produce goods and services, like electricity, clean water, good roads, transportation, affordable houses etc. since it is the catalyst of economic growth.
The various reforms initiated by the past government especially the monetary and financial sector policies seem to have yielded some good result. The recapitalisation exercise which pegged the asset base of banks operating in Nigeria to a minimum of N25 billion has brought confidence and integrity in that sector. A well developed financial system is a catalyst for the growth attainment of a nation's economy since it allocates resources with high expected returns, and can mobilise capital from disparate savers. The reforms in the insurance, Aviation and Telecoms industry should be consolidated.
The privatisation exercise or the sale of state owned enterprises is very vital to a developing economy. The exercise seems to have generated much controversy as a result of its flawed approach. The vanishing of state owned enterprises are visible in advanced/developed economies and transition/emerging market economies. They are drain pipes and absorb large amount of funds that would be better spent on basic social services. When business is allowed for the bureaucrats, inefficiency sets in.
The fight against corruption should be intensified and should adopt an all encompassing approach. The EFCC should be strengthened and totally depoliticised, and the anti-graft agency should extend its dragnet beyond its present scope. The fight against corruption should not just be apprehending and prosecuting offenders, there is a need for government to look at the entire gamut of corruption, because like crime, it is not a one man activity; it is anchored on connivance and ring syndicate.
Government can arrest corruption by making it unattractive through re-organising and building a reputable civil service where recruitment and promotion are merit based. Korea, China, Taiwan and Malaysia lay emphasis on exams and recruitment from the academia. Recruitment and promotion are based on capabilities and performance rather than quota. Singapore and Malaysia offer incentive based compensation for civil servants. Encouragement comes in form of rewards and decoration in China, while public disgrace goes the way of civil servants that engage in corruption.
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