Globalism And New Dimension Of Strategy On Global Economy; For The Attention Of President Buhari And All African Leaders, By Abbati Bako,psc,,bsis,UK

An analysis for the benefit of politicians, academics, political economy students and Interested Readers

Abbati Bako (psc,,bsis,UK), Special Adviser to the Governor of Kano State on Public Affairs

By Abbati Bako,psc,,bsis,UK

The world order or call “globalization policy or globalism” terms availability never advice emerging nations like Nigeria and other African nations to be involved in business. Therefore, privatization, tax reforms, deregulation, protection of intellectual property and removal of subsidy and diverting the money for healthcare, primary and secondary education and other infrastructure will move the African nations forward and reach Political, Economic and Social Development.

The work of the government is to create policy on economy, political and social issues that will move the nation forward. Some nations in Asia (Asian Tigers) like India, Japan, Vietnam, Pakistan, China, S/Korea, Indonesia had done the reforms and succeeded economically. Hence, the global bandwagon of economic growth is tilting to that side of South East Asia.

Also, in Latin America, Mexico, Brazil, Argentina tried the reforms and succeeded. In the middle east also, UAE, Qatar, S/Arabia are still on it and succeeding assiduously. Other nations in Africa such as Kenya, S/Africa, Ghana, Algeria Rwanda, Ethiopia are (all) trying to reform their economic stability via such ways and they may succeed.

Early year 2000 is a year for reforms especially amongst African nations-

So, the year 1970s is unlike the year 2020 we are currently in for development in economic emerging nations. Reforms or Globalization policy allow only private investors or organizations to be 100% in business. 

Like President Alhaji Aliko Dangote (for example) building refinery in Lagos and President Alhaji Abdussamadu Rabiu is building in Akwa Ibom State and other investors will come to Nigeria (Nigeria is one of the ten huge markets in the world) and do the same. So, there maybe competition in the near future and the common man may benefit economically in Nigeria and other African nations.

Competition as an element of economic reforms globally——-

Hence, competition will take place and Nigerians may see changes as they experienced from the year 2000 to date on GSM communication companies that has been competing for customers in Nigeria. No investor in the world can brush away Nigeria in terms of market economic interplay or competition. Investors are looking for opportunities to invest in populous nations like Nigeria.

Economic reforms is painful right from the word go. But may benefit the common man in the near future. The first company introduced GSM in Nigeria in the year 2000 sold their sim card @#40,000 but when other companies came and competes with that company the sim card is (now) almost free for the common man and every Nigerian can afford to purchase one and enjoy communication. 

NIGERIA/AFRICA’s ECONOMY AND NEW DIMENSION OF STRATEGY———

A New Developmental dimensional Strategy for Africa and Nigeria’s economic boost

Considering the experiences of China, India, Turkey, Malaysia, Mexico, UAE, Qatar, Brazil, S/Korea, S/Arabia, Singapore, Taiwan (and other 18 global emerging economies) taking in to cognizance of the realities of the African economic setting, there is need to fashion a new dimensional developmental strategy for Nigeria and other African nations. 

The strategic plan for such developmental and dimensional strategy must be focused towards harnessing the continent’s rich natural resources and managing them in such a way as to become a major player in the global economy without sacrificing the need for an inclusive development. Looking in to economic inter-play among the comity of nations; Nigeria and other African nations has been left far behind. African Sub-Saharan nations contribute less than 2% of global economy. What will be the way out?

This can be done through government intervention and mobilization of FDI from global investors and sincere systematic development/adoption of free market with a view to promote economic growth in Nigeria and other African nations. To this analysis some of the strategies that can kick start Africa’s economic transformation and development/boost are suggested below:- 

Africa’s Regional—Integration and absolute unity among Nigerians

Regional integration is indeed the continent’s biggest challenge, even though several countries in Africa belong to one regional grouping or the other. Although there has been some achievements across some of these groupings such as the free movement of persons and customs union in the Economic Community of West African States (ECOWAS), and common currency in the West African Economic and Monetary Union (UEMOA), Southern African Development Community (SADC), Southern African Customs Union (SACU) and East African Community (EAC). 

These achievements have to be strengthened and replicated across Africa to further promote inter-complementarities of goods, trade facilitation and free movements of the factor of production, among others. The process of integration would also assist in regional infrastructure development in critical areas like energy, transport, communication/ICT systems, roads and rail transportation.

This would reduce production costs and increase economic activities across the continent. In addition, it would also strengthen Africa’s political voice; improve collective negotiations to achieve more favorable outcomes on the external front. Other benefits would include enhanced access to international markets and fair price for resource exploitation as well as attracting investment flows to the continent from other parts of the world.

Absolute Investment—in—Human—Capital 

Africa has a young population compared to the ageing societies across the world. Skill acquisition is critical to turn this resource into wealth. For example, for the manufacturing sector to take off the new development strategy must avoid the current fragmented approach to education which is not adapted to the developmental needs of the African economies, hence, emphasis should be placed on tailoring education to growth sectors. Education and training in cutting edge technologies would enable countries to adjust more swiftly to the challenges of globalization as enterprises become more flexible and better able to absorb new technologies. 

As such an integrated approach to education (is the key) would enhance human resources development and create sufficient skilled manpower desired for the enhancement of industrial production. In particular, acquisition of requisite skills is also crucial for the development of Africa’s informal sector, which account for the lion share of employment. In the short-term, technical and vocational skills are critical for building agro-allied industries using basic technology.   

Utilization of Natural Resources for Economic Development 

Africa must produce what she needs from what she has. No country in the world has developed from the export of only primary products and therefore the export of primary commodity for import of finished goods is detrimental to the development of the key sectors of the African economies, including the enhancement of technological know-how and factor productivity. 

The need to effectively develop the value chain – from extraction through processing to finished goods with the domestic economy – is a critical development strategy for the development and industrialization of African economies. 

Aside from the utilization of the abundant natural resources and primary commodities Nigeria and Africa must maximize the benefits of her comparative demographic advantage and market potential. The huge and cheap (skilled and unskilled) labour force should be a competitive advantage for cost minimization for African goods and price advantage for exports. 

Africa to produce at a lower cost the continent should leverage on the vast endowment of natural resources like land, water resources, solid minerals, oil and gas and renewal energy to launch itself into the next development phase. Unproductive practices such as land tenure system must be discarded, while property rights and rule of law must be enforced. Agreements on mining rights must ensure fair pricing and sustainability of these natural resources. 

Institution of Good Governance and Zero Tolerance for Corruption 

Institutional development and good governance anchored on the rule of law are paramount for sustainable development. Strong political commitment on the part of the relevant authorities is also quintessential. 

Enhancing the operation of public enterprises is essential to address corruption and improve efficiency. Like China, Nigeria and African countries should encourage the adoption of a zero tolerance policy against corruption by instituting severe punishment to penalize and control or even eliminate corruption in totality. 

The example of Nigeria and Kano at State level—

Since we know that politics has competing values, interest and ambition, let us critically examine these three key points that make politics what it is. 

Let’s make a political comparative analysis on an advanced Democracy and a less advanced Democracy: that is USA and Nigeria operating the same system of “Liberal Democracy” or the Presidential system of Government; And the efforts of their leaders to ensure smooth transition of Democratic system in their nations. The American Democracy is about 245years in practice and without military intervention, can now be described as matured Democracy. On the other hand, Nigeria’s Democracy has been under transition for the past 21years. Despite the shortcomings, Nigeria is better than most African nations in terms of Democratic practice. Although there are some countries better than Nigeria such as Ghana, Senegal, Namibia, South Africa, Rwanda and so on. But analysts opine that with time Nigeria may supersede these nations in terms of Democratic practice. It is expected that by 2030 Nigeria will lead African nations  and other South South nations in terms of matured Democracy. Especially if a Nigerian’s annual income will reach as high as $3,000 per year or $10 per day. 

Economy of individuals in Democratic practice is a live wire of continuity of the system. Sincerely speaking, economic aridity of citizens alters the positive impact of Democracy in the mind of the common man.  

This writing said it several times that 70years ago if someone had predicted that the son of a Kenyan muslim man  (Barack Hussain Obama) would be president of the world’s most powerful nation, that person would have been tagged insane/delusional. So one may ask; why and how did Obama become President and a global leader? 

The answers are simple; the USA’s values, interests and ambitions must be pursued, ensured and protected. That is politics! 76years as global leader, USA is leading the world politically, economically and socially and might continue to do so indefinitely. Although George Friedman the author of the book titled “The Next 100 Years, 2009, Yew York” observed that “In international relations, the way the world looks right now is not at all how it will look in twenty years… or even less.” The fall of Soviet Union was hard to imagine, and that is exactly the point. 

Conventional political analysis suffers from a profound failure of imagination”. One may ask on why this writing is making the claim. This is also very simple that what mostly matters to USA leaders is protecting the values of Americans at all cost and anywhere around the world. As such only patriotic political leaders will think that way. On the economic side, Americans constitute about 4% of the world population but produce about 26% of all goods and services. Hence, America is still the leading economy and Political voice in today’s world.

This is as a result of motivational approaches towards the US citizens to be patriotic, united, hard-working and love one another as well as to be law abiding. These are the only ways that a nation would be strong and economically developed. Evacuation of US citizens and other European countries by America from Afghanistan is an excellent example of patriotism by their leaders.

Nigeria as a leading economy and Democracy in African continent possibly by 2030———

NIGERIA’s current political leaders are doing the best they can to locate the exact direction of globalization system adopted by global nations; Democratization, Global Economic Integration and Multiculturalism. 

Factually speaking, the initial stage of the system is painful and unbearable to many people but with time there may be light at the end of the tunnel. 

The 30 economic emerging nations such as Brazil, India, China, UAE, Qatar, Kenya, South Africa, South Korea, Macedonia, Argentina, Mexico, Indonesia, Malaysia, Thailand, Singapore, Turkey, Vietnam and the rest and even Saudi Arabia making efforts to implement some of the principles of the system such as privatization, tax reforms, currency deregulation, removal of subsidy and gingering citizens to be hardworking and knowledgeable in all spheres of life. That has been some of the prescription for emerging economy by the UN agencies like “IMF/WB”.

This writing understands that only few Nigerians can fathom the way the leaders of our nation are trying to ensure that Nigeria remains in the bandwagon of globalism.

NIGERIA’s leadership cannot afford to isolate the nation from the current global direction of Economic Integration, Political Democratization and Multiculturalism.

Can Nigeria afford to join nations such as North Korea, Venuezuala or Cuba? No! 

There is no doubt that there is economic hardship but this writing understands that with time the pain will heal no matter how long. Hence, the most important point in “Globalization Policy” is for the people and the nation to be hardworking, competitive, accountable and patriotic approach to every policy formulated. And again, the leadership must be knowledgeable, visionary based on positive missions to solve the problems of the nation. 

President Buhari’s PIB approval and globalism———

No nation can go alone in the current globalism type of global economic integration and Democratization as well as Multiculturalism. Countries such as China, Brazil, Malaysia, Indonesia and India are doing the best they can.

Many countries privatize their properties for the world to come in and invest. Foreign Direct Investments (FDI) is the key principle to globalism. Singapore benefits about 90% from investors compared to Africa’s 54 nations with 10% cumulatively (Prof. Tatah Mentan, 2007). So, the efforts of the current President Buhari by traveling to almost 60 countries of the world is to woe investors to come to Nigeria; based on the fact that Nigeria is the number one market in Africa and amongst the ten most populous nation. 

The PIB will change the patterns of Nigeria’s economic interplay with other nations. Nigeria is on the way to privatize N.N.P.C and it’s subsidiaries to attract investors to come to Nigeria which will change the patterns of Nigeria’s economic growth for the better. 

This means that Nigeria’s new economic moulding system will create more employment and stabilize the nation’s economy as it happened in Brazil and other economic emerging nations. 

Nigeria seems to be smarter than Saudi Arabia (Saudi Arabia is yet to privatize it’s oil company but they must in due course) despite the fact that Saudi Arabia produces about 10m barrels of oil daily compared to about 1.7m barrels by Nigeria, Saudi Arabia with about 30m population and Nigeria with about 210m population. Both countries are almost completely dependent on oil, the cost of one barrel takes care of two Saudi citizens while 80 Nigerians are to one barrel in terms of security, education, healthcare, agriculture, infrastructure and so on.

Therefore, the positive results of the current implementation of globalism may not be seen now but in the near future for Nigerians to remember and say HURRAY to Buhari’s policies on global changes!

Kano State as an example of globalism—–

Also in my Kano State there have been radical and positive changes especially on economy and infrastructural developments that have not been seen since the creation of the State in 1967. The people of Kano State and beyond must understand that the world is changing and will continue to change. Governer Dr. Abdullahi Umar Ganduje (OFR) is tilting with the direction of the world to invite investors to the State, for the fact that Kano State is the most populous State in Nigeria and the West African Subregion. Kano State is the potential gravitational center of economic growth; with ease for doing business, availability of lands for investors and for agriculture, a strong workforce in terms of youth population and hospitality of the people of the State. 

An example of such hospitality is when the State Governer Dr. Abdullahi Umar Ganduje (OFR) welcomed dignitaries from different geopolitical zones of the nation to grace the wedding fatiha of the President Buhari’s son and that of the daughter of Emir of Bichi Emirate Alhaji Nasiru Ado Bayero. President Buhari, former President Goodluck Jonathan, former Vice President Atiku Abubakar as well as Governers, Ministers, Political rivals to APC Government like Femi Fani Kayode (FFK) were in attendance. This symbolizes the fact that Nigeria’s Democracy is getting better than in the past years; this means that politics without bitterness is gaining ground in the country. And the stewardship of APC Party to change Nigeria from Political Barracudas to the Political Jingoism is gaining positive response from Political heavyweights in Nigeria. 

This means that the country Nigeria will not develop until all the political and economic stakeholders come together and give tremendous contributions. Kudos to Governor Dr. Abdullahi Umar Ganduje (OFR) for his efforts and good intention to make Kano State secure and the hub for economic investors to come to the State. Factually speaking, the current leaders of Nigeria are doing well but only few Nigerians will understand as far as the term “globalism” is concerned. But time will tell! The world is changing and will continue to change with time. 

Abbati Bako,psc,bsis, mti,UK, Political Strategy and Communication Consultant and Special Adviser to the Governor of Kano State on Public Affairs———