Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Sunday, 17 July 2022

The Original Armed Robbers in Nigeria are the Military


Nigeria’s independence in 1960 involved a precarious truce between North, East and South Protectorates that had been put in place by British colonialists. In order to emerge as a unified country the politicians needed time to come together and start to act with a common purpose. The route to shared ideals proved uncertain and uneasy. Corruption and tribal tensions provided the excuses for a bloody and brutal military coup. The military brought with it authoritarian rule, elitism, executive entropy, conspicuous consumption and regional quotas. 

The military subjected Nigeria to another coup within months of overthrowing the civilian government in 1966; and then straight into a civil war in 1967. The military government never had a vision for developing an independent nation and instead focused on placating dissatisfied elements in the military and asserting control over the country. They set about establishing a bureaucracy that reflected military sensibilities. Its leadership was determined by status and entitlement, without very much regard for competence or commitment. 

The military government appointed military officers to head all government agencies. The only qualification required was military rank. They set about a programme of random capital development and resource allocation which paid little consideration to strategic need or social and economic infrastructure. What followed was the introduction of a culture of cronyism, graft and financial misappropriation. They focused on taking full advantage of the newly discovered petroleum reserves to initiate vanity projects and reward themselves with a luxurious lifestyle. 

Instead of exploring the full range of resources available in oil exploration, investing in agriculture, public sewage system, diversifying energy production, and expanding the transportation network the military focused on building roads and bridges in urban areas where they could avail themselves of the many official vehicles they had issued to themselves. There was no strategy to promote small or medium business or develop fiscal facilities to develop commercial ventures and entrepreneurship. 

The period following the discovery of oil became notable for a child like keenness to use the wealth. White elephants were proposed, started and subsequently abandoned or under-utilised. There included two steel plants, multiple refuse disposal facilities and petroleum refineries in Northern Nigeria. In 1972 the Udoji Commission was set up to look at reforming the civil service and improving terms and conditions of staff. However, it turned into a giveaway bonanza with people being given cash handouts, pay increases and brand new official vehicles. Basic level staff got a nominal amount but senior officials received considerably greater benefits. 

Despite the lucrative petroleum exploitation Nigeria fell into a minor recession in 1978/1979, eventually leading to having to implement the IMF Structural Adjustment Programme in 1986. This led to a currency devaluation, rocketing food prices and higher import tariffs. In 1977 Nigeria's national debt rose by an estimated 110%. Power generation was so poorly managed there were frequent power cuts all through the 1970s, and many rural areas still do not have electricty.

A lot of retired military officers have been at the heart of the civilian political kleptocracy that has ravaged Nigeria to the point of destitution. The military is one of the best funded organisations in the country but its budgets have been subject to rampant misuse and misappropriation. The current president, an ex military ruler, has presided over an unfathomable period of decline. He has also been incredibly ineffective and unprogressive. Olusegun Obasanjo who is held up as an example of a leader who got things done, presided over the destruction of postal and telephone services in the country. He introduced cellular services but that has been a largely unregulated money grab by providers. The National Health Insurance Service he set up only provides limited healthcare for a small minority of citizens.

Nigeria's current problems seem insurmountable and the military, and ex military officers are historically and currently at the heart of all that is wrong in Nigeria. Just to halt all the damage done a new political order and system is needed. All the current politicians need to be banned and a new constitution needs to be written. The government apparatus needs to be slimmed down to halt waste and inefficiency and resources directed to building agricultural and manufacturing infrastructure. The sole reliance on petroleum revenue has been Nigeria's downfall. The economy needs to be diversified and more prominence given to productivity. That is the real way to reduce unemployment and reduce poverty and wealth inequity.

Wednesday, 3 May 2017

Labour Party's Halfway Housing Hokum

One thing Karl Marx made clear was that first principles don't add up to much if they are not backed by a sound working theory. Jeremy Corbyn is very quick to flaunt his socialist credentials but it has become clear that he has no idea of what a coherent theory of socialism for the 21st century should be. He doesn't seem able to define the role of a socialist government in relation to public services, economic production or social welfare. The Labour Party's new housing proposals seem to be another example of him lacking the rigour to define a fair and responsible approach without alarming a section of the electorate.

Labour's new housing policy proposes more action against 'rogue landlords', more new builds including social provision and reversing housing welfare reforms. These sound appealing but are mostly populist attempts to sway voters rather than a genuine effort to reform housing policy. Focus mostly on building more homes for sale will further the ambitions of the middle class and increase urban purge of poorer working class groups. There's no mention of support for sustainable housing.

A genuine socialist housing policy would come up with rent control proposals for inner city and urban areas, scrapping of right to buy policy and targeting help to buy solely at essential staff. That way low income and young people have improved access to affordable rental accommodation in accessible areas. It will also ensure that social housing is targeted at those most in need. This will provide an opportunity to reform council housing allocation policy.

While these Labour proposals will do some good; yet again Corbyn sacrifices coherence for convenience. Housing requires both policy reform and attitudinal change. A cohesive policy that will change things for the better for the most people over the longest time is what is needed. The Labour Party's proposals offer little more than more of the same.

Monday, 24 October 2016

Leadership in the 21st Century: A Monty Pythonesque Farce

It is interesting that as science is breaking new ground and taking technology and innovation to new heights social development has not just taken a backward step but is sliding rapidly downhill. This world was built on the vision of great thinkers and passion borne out of selfless integrity. Now we're keeping up with the Kardashians and striving to be pseudo apprentices with a spotlight blinding us in some sort of lions den.

In modern times leaders in various fields have proven to be extremely prone to promoting self interest as cautious action driven by the common good. Most notions of duty have been supplanted by the desire to achieve longevity and dominate popular opinion. Notable academics have been discredited for giving questionable evidence as expert witnesses. We have had cases of researchers being paid off by pharmaceutical companies to publish biased studies. Journalists are openly partisan, serving paymasters, falsifying news, plagiarising and even setting honey traps. Various longstanding and reputable businesses in the U.K. have closed down thanks to asset stripping by rapacious owners.

Rulers from Saudi Arabia and the UAE have stood by while refugees from Syria have been subjected to indignities seeking shelter in Europe. In fact, the Saudi regime has been mostly occupied with bombing random civilian targets in Yemen. African presidents have individually and collectively found leadership inspiration by looking back to eras of plundering and pillaging. They have rendered their countries broke and peoples destitute and broken. Russia is busy starting and supporting conflicts wherever it can as a cover for arms trading and diplomatic grandstanding.

Obama has proven a calming influence in the American White House but he has shown a lack of leadership in dealing with the economy, race relations and policing of minorities. When Obama stood by quietly and let GW Bush detail an economic bailout plan that favoured corporate America he demonstrated what was to be an ongoing reticence in dealing directly with working class poverty in America. Two of the candidates who will be contesting the American presidential elections this year have significant questions over their integrity and suitability.

In the U.K. the Conservative party has lost one prime minister thanks to David Cameron's reluctance to take a stand against eurosceptics in the party. Theresa May, the current prime minister failed to deliver on a promise to curb immigration when she Home Affairs minister. She is now playing politics with the handling of the U.K.'s exit from the European Union. The economy is suffering as a result. The Labour Party has been plagued with a series of ineffective leaders following Tony Blair's resignation as prime minister. The party is currently at war with its present leader and itself, to all intents and purposes. It has been no help that the current leader of the Labour Party has proven somewhat ineffectual and divisive.

Africa is rife with instances of ineffective and corrupt leaders. Many leaders in the continent are obsessed with not leaving the seat of power rather than actually leaving a positive legacy. In Africa a lot of business leaders have achieved success through fraud and the corruption of public institutions and officials. The 'Arab Spring' was supposed to bring revolution to North Africa but has only succeeded in miring the region in extremism and instability. Mugabe has succeeded in holding on to power while completely wrecking the economic and social life of Zimbabwe. The ANC in South Africa has managed to take its people out of apartheid into poverty.

It appears that leadership is one area in which humanity has managed to regress. Opportunism and profit appear to be the defining characteristics of leadership in modern times. It appears the qualifications needed for leadership now are wealth and influence. Needless to say this makes for leaders who are essentially unprincipled and easily swayed. It also spells trouble for those hoping that the privileged few might protect the needy many.  

Monday, 21 March 2016

Change That Beggars Belief

The new new Nigerian government was elected on a promise to change the corrupt and self serving government of the past regimes. It was going to sweep out corruption and misadminstration, and clean up the corrupt mess left by the previous government. That promise has proven to be an empty boast. It now appears that the faith placed in the new government by the people of Nigeria was misplaced. There was a delay in appointing ministers. It was hoped that this was to be ensure that the right people were appointed to take forward an agenda for change. It turns out that the delay was just another function of the government's inertia and lack of ideas. The appointees have proven less than impressive. 

The economy that has been left to drift. The ministry of finance tussling with the central bank for control of fiscal policy. This has led to economic stagnation with the foreign exchange market practically imploding. The stock exchange has crashed and then fallen even further. No tangible domestic economic strategy has been outlined. Even corporate taxation hasn't yet been radically reformed. The government presented a disastrous budget to the senate that had to be withdrawn. It so clearly didn't address the economic issues at hand or properly allocate funds to areas of greatest need. The government has been focused on obtaining bridging loans rather than securing investment. Little has been done to diversify the economy and move it from a predominantly services base to a more manufacturing one. 

The minister for services rushed into the breach with a strategy document but failed to do his due diligence or any impact assessments. Lofty ambitions of managing power and developing infrastructure have rapidly been overwhelmed by the need to just keep things running. As it turns out operational continuity has lost out to poor planning and incompetence. Almost every month of this new government has seen fuel shortages. Electricity supply has fallen to new lows. Something that is almost unimaginable given how usually poor it is. 

Law and order in the country seem to be breaking down in a lot of states. Elections in Rivers state recently provoked calls for the imposition of a state of emergency. Fulani herdsmen seem to be rampaging unchecked, laying waste to villages and murdering women and children on a regular basis. Certain elements have started a campaign for a so called 'Biafra state'. This agitation has been tackled in a heavy handed manner. A radio show host arrested, detained and arraigned in court on charges of treason and sedition. More time has been spent briefing about how Boko Haram has been defeated than on actually tackling the terrorist menace itself. 

The government has become increasingly associated with misinformation and spin. Campaign promises have been watered down or at times denied outright. A campaign pledge to offer an allowance to the unemployed was first scorned by the president in a webchat in December and is now being said to have never been made at all. It appears that contrary to President Buhari's declaration that his experience of democracy has changed him from a military dictator; he appears to be increasingly leaning towards a militaristic totalitarian approach to governing. 

A lot of work has gone into probing the huge amount of corruption linked to the previous government. However, this appears to be an excuse for the government's inaction on a whole raft of other areas of public service. To date it appears that tackling corruption is the only policy that government is actually pursuing.

There is no doubt that the previous government left services and the infrastructure of government in a sorry state. However, this was always the task at hand when President Buhari campaigned for election and when he assumed office. Continuously pointing it out has worn thin on the citizenry and shows an element of cluelessness in a government that promised so much and claimed to have the answer to the country's problems. President Buhari is at the helm of an administration that is presiding over an unprecedented level of social and personal difficulties for Nigerians. His credibility, like his approval ratings is at an all time low. He needs to take a step back and come up with a more considered action plan to address all that is currently going wrong in the country. More importantly though, it needs to embody real change and act to reverse the poor performance and perception of the administration.