Tuesday, May 27, 2008

How Africa NEEDS t'AGOA'bout competing in this NEPAD age.

How Africa NEEDS t'AGOA'bout competing in this NEPAD age.


Introduction:
African businesses must sometimes feel they are being led to slaugther. For many, the firm belief is that the economic policies emanating from our governments have significantly removed both government subsidies and eroded private sector purchasing power. Yet, African businesses can turn the flood of misguided policies into as source of competitive advantage, with a change in market and cultural orientation.

Article:
Are we being led to slaughter? Are those appointed to lead our flock selling us to the butchers? Do the butchers intend to take payment in our flesh and blood? Home-grown analysts of the terms under which African businesses engage in international trade, may wsll answer yes, yes and yes. We have the power. We must have the will. We must also frustrate the actions of those who assign a low-value role to our interests in international trade

Article:
Those who celebrate religions by symbolically cannibalising their orisha need not worry; this article is not about blind faith. Rather it is about misguided and downright treacherous agitations about economic progress.

The National Economic Empowermeent and Development Strategy (NEEDS) programme of the Nigerian government will not deliver either economic prosperity or social stability to the Nigerian people. The marketing is slick but this is stale wine in new packaging.
The programme is wrong because the model it is based on is unreplicable and because it is inimical to the progressive interests of Nigerians.

Let us distinguish the stakeholders in NEEDS. The proclaimed primary beneficiaries are the Nigerian people. This programme will supposedly deliver the people from economic dependence on elected government by privaising all public owned institutions. The operators of NEEDS are the government officials, mainly in the financial sector and multilateral agencies, particularly the IMF, the WB and the Clubs of moneylenders. The sponsors of NEEDS are the international community of international governments and companies who will gain trading benefits from transacting in newly liberalised markets.

NEEDS proclaims: export driven trade, full employment, transparent accountancy, etc. It does not address the cultural, military and social is built on a model with the following premises:
# All countries should industrialise along the European model, so industrial-age technology must be transferred to Nigerians;
# Domestic savings should fund acquisition and application of technology; high interest rates will encourage people to save their funds in the banks;
# The national savings rate is low, so foreign aid and foreign investment must be procured;
# Much industrial-age technology is now obsolete, so foreign technical assistance must be retained to implement technological breakthroughs and assist Nigeria to leap-frog gaps in domestic technical capability;

savings. encouraging people to build savings in order to afford labour-saving machinery, use industrial technologies in creating jobs, manufacturing and exporting goods so that Nigeria and Africa must follow an alternative route to socio-economic improvement than that mapped by the sponsors of NEEDS. The structure of economic opportunity is
State aim of needs. Proposed implementation of needs. Likely impact of implementation. Non-needs alternative



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Nigeria needs to succeed
But development isn't just a question of making markets and economic policy work better. We now know that investing in people - in their health and nutrition, and in their education and training - is an indispensable part of good economic policy. - Tony Blair, Britain leader.


Remi-Niyi Alaran writes on enterprise and social capital.
ALARAN DEVELOPMENT ENTERPRISES. Enterprising Communities.

Copyright (c) ALARAN DEVELOPMENT ENTERPRISES, 2003
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