Thursday, November 18, 2010

USA Africa Dialogue Series - RE: ROLE OF GOVERNMENT IN THE DEVELOPED WORLD

“”””So when Mr. Jonathan says that Nigeria's problem is beyond the government, he has a point.”””””Unquote Ben Aduba

The above (mis-)statement (pardon me Ben) reminds me of the popular a campaign cliché of Presidential and Senatorial Candidates in the United States, which is a tactic to demonstrate capable leadership. They would say: “””There is no American problem that Americans cannot solve: the leadership and people working together will surmount any challenge facing America!”

So all you need is the RIGHT Leadership, Vision/Roadmap and close engagement of the public/private sectors and citizens. And Capable and Effective Govt Leadership has ALWAYS done this in EVERY progressive society, bringing together the public and private sectors as well as all the Citizens to resolve societal and citizens’ problems. Anything less is sheer merry-go-rounding!

Thus, for the Apex Leadership of a reigning National Govt to PUBLICLY DECLARE that the Nation’s problem is BEYOND the Govt, that Govt should either be preparing to QUIT/RESIGN; or the media Office should revert immediately with a resounding Ooops to the public, restating that “what the Prez meant to say is that the Govt alone will not solve Nigeria’s problem; that in Nigeria, the Govt WILL provide the LEADERSHIP to ensure that both the public and private sectors work tirelessly to SOLVE all Nigeria’s Problems”! Let’s hope that later is the case here. Again, I say I hope some of us who LOVE GEJ don’t start CRINGING whenever he wants to say something NEW or OLD!  Take care. JUI

 

 

From: NaijaExcel@yahoogroups.com [mailto:NaijaExcel@yahoogroups.com] On Behalf Of BENJAMINA
Sent: Thursday, November 18, 2010 4:20 PM
To: NaijaExcel@yahoogroups.com
Subject: NaijaExcel ROLE OF GOVERNMENT IN THE DEVELOPED WORLD

 

 

ROLE OF GOVERNMENT IN THE DEVELOPED WORLD

"…Look closely, and you will realize that all developed counties, were propelled to great heights by the policies and actions of their governments…"

 

"…Watch out for how US Pres Obama will use targeted mass infrastructural development to reproduce the Clinton's Economy Revitalization Miracle soon! I have Watched, Lived and Experienced these cycles in the United States for 20-something years! I aint falling no sucker private this, private-public that any more!..."

"…The people, industry, and governments at all levels must approach the problems of Nigeria as a collective responsibility…"

The three quotes above were in response to President Goodluck Jonathan's quoted statement that Nigeria's problems are beyond the government. The gentlemen above have just fallen in line on both sides of the long running economic debate about who is responsible for economic growth or decline. On the one hand is the school of thought that government is the engine (Mr. Osagie Ayanru and Mr. Joe Igietseme) and on the other hand is another school of thought that as President Reagan put it "the government is the problem" (Mr. Fubara David-West).

 

There is some truth in each of the positions above but as in all economics discussions the issue is much more complex. The trick is to understand the role of each of the 3 parties involved in the economy and for each to play its part well and to step aside when the role is done.

 

The government's most important role is to serve as the referee. The private sector is a player and the public (consumer) is a player. The government's role is to provide a level playing field through legislation: fair laws and strict implementation of the laws, fair taxes that would still allow the investors (private enterprises) to keep a fair amount of their profits, infrastructure (roads, power, social services for the workers, etc). The private sector's role is to follow and sometimes to lead the demand. In following demand the private sector has to supply what the probity wants: clothing, housing, food, transportation, etc at a price the public can afford. In leading the demand the private sector must anticipate the future: changes in energy supply and its implication could lead to the manufacture of smaller cars as the Japanese foresaw and Detroit failed to see, longer life expectancy could lead to lower insurance premiums and lower payoffs, etc.

 

Failure to see the future could have disastrous consequences as 2006/2007 thought us.

The public has the responsibility to hold both the government and the private sectors accountable for their roles and to play its role as a rational consumer, as a borrower, as an elector, as a purchaser etc.

 

When each plays its role responsibly, the economy hums: Consumer

Confidence increases; governments collect taxes and hopefully run surpluses; businesses make profit and invest more in newer technologies. Whenever one party does not play its role well the economy tanks and trouble infests all segments and all suffer: high unemployment both of workers and factory capacity; lower tax collections and increased deficits, factory closings and losses and lousy balance sheets, consumer confidence declines, and in extreme cases riots may result.

 

So when Mr. Jonathan says that Nigeria's problem is beyond the government, he has a point. Government alone cannot fix all the problems. When Mr. Osagie Ayanru says that the government in developed countries serves as the engine of development, he is calling on Mr. Maynard Keynes theory that when everything fails it is the government that has the responsibility to prime the economy. If Mr. Joe Igietseme is tired of private this and that he is merely saying that the private sector cannot replace the government. But Mr. Fubara David-West is closest to the mark when he asserts that all segments of the economy: public, private and government have a role to play.

 

I live you with the the end of a poem by John Godfrey Saxe on the Blind Men and the elephant:

And so these men of Indostan
Disputed loud and long,
Each in his own opinion
Exceeding stiff and strong,
Though each was partly in the right,
And all were in the wrong!

MORAL.

So oft in theologic wars,
The disputants, I ween,
Rail on in utter ignorance
Of what each other mean,
And prate about an Elephant
Not one of them has seen!

My peace I live with you

Benjamin Obiajulu Aduba

Boston, Massachusetts

November 18, 2010

 

 

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