How The Economy Can Sustain Democracy
By
Federal Government has released its fiscal and monetary policy for the year 2001.Last year the Federal Government also released its economic blueprint to the public. The Government argued that the blueprint which it claimed is quite different from others will turn around the country's economy by 2003. The government supported this with statistic to convinced the local and international actors that the Obasanjo administration is poised to accelerate the country's social-economic development in order to sustain the sledding democracies.
Government officials always real off figures and indices as a proof of triumph for official policy over forces of economics adversity. Government statistics do look impressive on papers while in actual fact, they have failed to make food available to millions of Nigerian. Unemployment continues to rise and workers purchasing power has been eroded because of harsh economic environment in the country.
Today 50 percent of Nigerians are said to be living condition below the poverty line and life expectancy put at 52 years. The living conditions in the country are worse than those obtained in countries with far less resources. Endowment., public infrastructure are in the worst state of disrepair, while privatisation process which should have been the key to economic restructuring is not moving with the desired speed.
Industrial capacity utilisation continues to dwindle and consumers purchasing powers eroded. In-spite of claims by the government of an offensive hold on inflation, prices of goods are yet to come to within the reach of most Nigerians.
Today the country is in economic crisis because of mismanagement of the economy by past leaders. Lack of performance and lack of transparency in public accounting have cost the country the support of its external creditors and offshore investors. Corruption and outright looting of the treasury has been the order of the day. All interest are coverged on the appropriation and consumption of oil revenue, but not on production, investment in the productive sector.
Many economic policies until recently lacked the national values of social Justice, equity and legitimacy. Some of the tight fisted policies that enable the government to rake enormous amounts in the past from such channels as the Value Added Tax (VAT), Petroleum (Special) Trust Fund (PTF), Education Tax, Autonomous Foreign Exchange Market (AFEM) was not judiciously used.
Autonomous Foreign Exchange Market (AFEM) were not utilised to alleviate poverty and stimulate overall industrial growth. Many projects embarked upon with monies realised from the fiscal policies were characteristically over-ambitious, poorly planned and implemented.
Nigeria's current position within the global economy is one characterised by unimpressive performance. Virtually all the economic indication as published by the World Bank show in clear and vivid terms that our country is a weak player in global scene. However given the numerous resources, endowment of our country coupled with the current effort by the Obasanjo Administration to revamp the economy, one can say that there is unique chance of turning our economy round from the one of a "faded or sleeping giant" to one that will once more become an important contributor to global prosperity.
Issues of unemployment, regeneration of environment and equity are important components, but the most central of sustainable human development is the elimination of poverty. Nigeria's historic responsibility in the matter of poverty alleviation are enormous and daunting. Current statistics show that more than 60 percent of the country's population is trapped in poverty with 80 percent of these being women. Since Nigeria has about quarter of Africa's population, any breakthrough achieved in sustainable development initiative by the Obasanjo Economic Blueprint will have a statutory effect on the West African sub-region and offer an inspiring model for the rest of the continent.
Though the country has returned to Democracy, Nigerians will like to see the dividend of Democracy translated into improved standard of living. They are looking for provision of basic health facilities, good infrastructure, availability of food at affordable prices, among others. A hungry people cannot be effectively mobilised for any lofty national assignment. The Obasanjo administration has used over a year for policy articulation in order to mitigate the pervasive level of suffering in the land. The much talked poverty alleviation programme should be sincerely implemented.
Nigeria's development process should continue to be people- oriented, broad-based, market-oriented, self reliant, high competitive and private sector driven. Specifically, the strategies target and goals for attaining recovery growth as well as and development with the framework of the recently launched National Economic blueprint should be diversification of the positive based of the economy through enhanced capacity utilisation in industry, increased agriculture productivity, and accelerated productivity and accelerated development of gas and solid minerals. In addition, they should be promotion of sustainable, non-inflationary (single-digit) economic growth though achievement of macro-economic policies, exchange rate and fiscal stability as well as product monetary policies. Raising income level and reduction of level of unemployment through enhanced economic growth through vigorous implementation of poverty alleviation programme should be given priority attention.
The biggest challenge to our economic survival today is the need to promote non-oil export and earn foreign exchange not just as an integral part of our national economic policy but also as a cornerstone of our corporate philosophy.
Unfortunately no-oil export have not receive the desired attention by the past administrations because of reliance on oil.
The need for the country to promote non-oil exports can not be over- emphasised. Since the oil boom years, efforts have not been concentrated on the development of productive sectors.
President Obasanjo should continue to use his international contacts and connections to attract foreign investment in the country provided he creates a good enabling environment to welcome potential investors such as good security, power supply etc. With Democratic government, it could be said that the pendulum of debate is in favour of foreign investment in the commanding areas of the economy. This is a positive development as the country under a civilian president takes a realistic step in harmony with triumphant global ideology of liberalisation nation. The only guarantee for foreign investment is a stable body polity built on Democratic values.
Unless the country's work towards the growth of Democracy, our present campaign aimed at wooing foreign investors might be fruitless. Chief Obasanjo should address with necessary decisive measures, factors that stifle the attainment of veritable investment climate. The international community elucidated the well-known investment barriers such as infrastructure and corruption. Corruption it appears takes the premier position above all. We must re-educate public officials about their roles in investment promotion and the need to portray Nigeria in a positive light. Nigeria must market itself, embarking on aggressive but truthful image building programmes.
In nutshell, the National Economic Blueprint should ensure, First, launching the immediate turnaround of the Nigerian economy from its current deteriorating condition. Second, defining the strategic and long-term economic direction which, when properly implemented, can lead Nigeria towards a high level of sustainable economic development. The challenges ahead should be examined in a wide, global perspective. In today's highly competitive and uncertain global economic environment. The country must adjust its economic policies to meet the changing requirements of global trade, capital, technology transfer and market forces.
Nigeria can attain the expected economic prosperity in this increasingly interdependent world, if it creates viable economy capable of competing in global markets. A consensus building process is necessary and it must involve all stockholders interested in Nigerian - national and international. An economic philosophy with widespread public support is the foundation for an enabling environment conducive to private investment in quality of life for all Nigerians.
The way forward for the Obasanjo administration involves adjusting and coping with a constantly changing world. The way forward requires hard choices and a willingness for us to experiment with new ideas. The way forward involves continuous dialogue among all stakeholders interested in Nigeria's future. The way forward is to explore new frontiers courageously and to innovate in the national interest. Our dream should be to create a Nigerians strategy for economic development which will enable us to harness our human and natural resources.
Our economic system must also strengthen the Democratic process and help fortify our resolve for good governance through leaders who work in the national interest. Our overall development will depend on a sound economic foundation which is turn supports a viable political process. Certainly, these are challenges the Obasanjo administration will address at it charts a course for Nigeria's economic development in this millennium. A restructuring of the economy to ensure that the wealth of the nation is no longer concentrated in the hands of only a few people but equitably distributed is a task that must be addressed firmly and objectively. The Obasanjo administration should involve more of the younger generation in the scheme of things.
I enjoin all Nigerians to co-operate with the Obasanjo administration in revamping our economy from it present decadent state. The government and the public sector should come up with a proposal that will assist in providing an economic platform for democracy to nurture. The country's economic development task must be seen as continuous challenge. A challenge which must commit ourselves on behalf of future generations of Nigerians if we are succeed. We must begin our economic philosophy and strategy with the Nigerian people. It is their well-being and quality of life which is the aim and end result of our economic systems. Our economic philosophies and strategies at national level economic policies can only successful it they are fully supported the Nigerian people who voted for Democracy.
Dr. Ajagu, an Industrialist delivered this paper to a select Nigerian Audience in Ghana.