By S.O.K Shillings
The cold war ended in the early 90s on the side of the capitalists led by the United States of America. The lesser worlds naturally turned capitalist embracing all anomalies with Hobson’s Choice.
Capitalism, to a ‘third-world’ country, is like a master holding a packet of Saint Louis sugar (containing 90 cubes) asks 120 people to line up for a cube each. If you are number 87, you may be lucky if order is maintained. If you are 93, it is hopeless and you have a moral duty to fashion disorder. So, ’87’ must consider not only the thoughts of ’93’ – ‘120’ who are bound to cause disorder but also numbers 1 – 86 who might still be unsatisfied and cause disorder out of tendentiousness.
Socialism on the other hand is like the Saint Louis sugar master grinding the 90 cubes and dividing the granulated sugar into 120 for everybody. There is no impetus to rush to be on the queue. It is not enough for anybody and it only seems nobody is cheated.
Africa and third-world countries have serious problem in capital formation. The advice from the perverse economics of our traducers of the West is to allow corruption so that money stolen will be the fulcrum for take off of an industrial revolution. Alternatively, Government has no business with doing business hence public property should be sold to individuals who can best manage them and there will be efficient and effective distribution. Those theories failed woefully as exemplified by the unbundling and privatization of PHCN.
As the zodiac have effect on our lives, so is the geographical location. Nigeria and Africa are, by the equator, in the middle. It should stand between extremes. Socially, we are between the extreme freedom of the west and extreme restrictions of the east. Politically, we should adopt a system between extreme democracy and dictatorship. Economically, we should stand between capitalism and socialism (the concept of state ownership of capital and business and distribution according to needs while all contribute according to ability).
The capital required for meaningful industrial revolution does not reside in the pockets of individuals. Even if we cede all capitals to the Dangotes and grant them all monopolies, they are too far behind the Elon Musks.
It is imperative to design a mode by which state resources (the commonwealth) will be joined with individual capitals in a mega capital formation and organised industrial breakthrough without waiting for it to be stolen or first wrongly invested and divested. By this formula, a certain percentage of the earnings of the State from natural resources will be earmarked like was done in the Petroleum Trust Fund (PTF). The fund will be applied to forming a Big Business. All government investments will be quantified and pooled into BIG BUSINESS. Such will include the Ajaokuta steel mill, the moribund refineries, Air Nigeria, NNPC Limited and all and every such investments. Individuals, states and local governments will be encouraged to invest in the pool. Existing businesses too could be valued and pooled.
Management will be nominated by members according to weight of investment while government will nominate its representatives. The profit due to government from Business will be ploughed back for some time. When taken, will be applied to specific social services.
It is noteworthy that Government investments have ended up in waste and prodigal sales. The intention of Government to provide some services like having a national carrier have been forlorn. A situation of shallow investments in some sectors like having many airlines when none of them could provide worthy services will be sorted.
Big Business will have an investment agenda for all kinds of businesses especially the capital intensive ones that will birth small scale businesses. It is our real hope of joining automobile, engineering, aviation, tourism, manufacturing et al on meaningful scale and provide employment and life for our teeming population.
It is not a new idea. It is the kind that birthed the mismanaged Transcorp; but on a larger scale. In law, it is called unit trust*. When properly implemented, Government as we know it will fizzle and become the social responsibility section of Business.
It will be a shame to be citizen of a third-world country for a lifetime without an effort to change the narrative.
Arise o’ compatriots!
S.A Formula for an Economy 4: Capital Formation*
The cold war ended in the early 90s on the side of the capitalists led by the United States of America. The lesser worlds naturally turned capitalist embracing all anomalies with Hobson’s Choice.
Capitalism, to a ‘third-world’ country, is like a master holding a packet of Saint Louis sugar (containing 90 cubes) asks 120 people to line up for a cube each. If you are number 87, you may be lucky if order is maintained. If you are 93, it is hopeless and you have a moral duty to fashion disorder. So, ’87’ must consider not only the thoughts of ’93’ – ‘120’ who are bound to cause disorder but also numbers 1 – 86 who might still be unsatisfied and cause disorder out of tendentiousness.
Socialism on the other hand is like the Saint Louis sugar master grinding the 90 cubes and dividing the granulated sugar into 120 for everybody. There is no impetus to rush to be on the queue. It is not enough for anybody and it only seems nobody is cheated.
Africa and third-world countries have serious problem in capital formation. The advice from the perverse economics of our traducers of the West is to allow corruption so that money stolen will be the fulcrum for take off of an industrial revolution. Alternatively, Government has no business with doing business hence public property should be sold to individuals who can best manage them and there will be efficient and effective distribution. Those theories failed woefully as exemplified by the unbundling and privatization of PHCN.
As the zodiac have effect on our lives, so is the geographical location. Nigeria and Africa are, by the equator, in the middle. It should stand between extremes. Socially, we are between the extreme freedom of the west and extreme restrictions of the east. Politically, we should adopt a system between extreme democracy and dictatorship. Economically, we should stand between capitalism and socialism (the concept of state ownership of capital and business and distribution according to needs while all contribute according to ability).
The capital required for meaningful industrial revolution does not reside in the pockets of individuals. Even if we cede all capitals to the Dangotes and grant them all monopolies, they are too far behind the Elon Musks.
It is imperative to design a mode by which state resources (the commonwealth) will be joined with individual capitals in a mega capital formation and organised industrial breakthrough without waiting for it to be stolen or first wrongly invested and divested. By this formula, a certain percentage of the earnings of the State from natural resources will be earmarked like was done in the Petroleum Trust Fund (PTF). The fund will be applied to forming a Big Business. All government investments will be quantified and pooled into BIG BUSINESS. Such will include the Ajaokuta steel mill, the moribund refineries, Air Nigeria, NNPC Limited and all and every such investments. Individuals, states and local governments will be encouraged to invest in the pool. Existing businesses too could be valued and pooled.
Management will be nominated by members according to weight of investment while government will nominate its representatives. The profit due to government from Business will be ploughed back for some time. When taken, will be applied to specific social services.
It is noteworthy that Government investments have ended up in waste and prodigal sales. The intention of Government to provide some services like having a national carrier have been forlorn. A situation of shallow investments in some sectors like having many airlines when none of them could provide worthy services will be sorted.
Big Business will have an investment agenda for all kinds of businesses especially the capital intensive ones that will birth small scale businesses. It is our real hope of joining automobile, engineering, aviation, tourism, manufacturing et al on meaningful scale and provide employment and life for our teeming population.
It is not a new idea. It is the kind that birthed the mismanaged Transcorp; but on a larger scale. In law, it is called unit trust. When properly implemented, Government as we know it will fizzle and become the social responsibility section of Business.
It will be a shame to be citizen of a third-world country for a lifetime without an effort to change the narrative.
Arise o’ compatriots!
S. O. K. Shillings Esq., writes from Ikorodu
