By Cletus George
Government Has No Business In Business!
The above statement says it all, but not in such a brutal sense. What it simply means is that the economy was neither designed nor installed by government, nor is it constituted by government, nor is economy a government institution, for government to expect to control or develop it. Having stated the above, government has the responsibility to support the development and let us start by saying that our governments are not to blame for the woes of our economies. I will further shock you by saying that expecting our governments to have the solutions to the economy is from ignorance and wrong understanding on our part; government inclusive.
This error is not mysterious. It is like saying that government should know how to build a space rocket! Wow! What an impractical, illogical expectation. Last time I checked, government governs and should have expertise in governance, but is not an expert in BUSINESS to be expected to have business solutions nor to apply them, although it has a responsibility to support them and should do so for the growth and betterment of the economy, towards a higher standard of living for the people and better salaries cum facilities for governance and civil servants.
This is why in International Institutional Business guiding principles, it is clearly stated that Government Has No Business in Business! This should not be taken as an affront but as an expert guiding principle leading to the proper destination of responsibilities and occupations; without which we will be lost forever. Let us look at what should be the proper occupations of government in the context of the economy and the proper source to expect solutions towards economic development.
“Everyone knows that Africa and Nigeria economy are very sick, and Governments and Institutions on ground, so far, have not been able to find an adequate solution. This is for certain logical reasons, and in the midst of these facts, it is first of all not their business to find the solution, although they can and should support a solution for the transformation of the economy to higher GDP, better standard of living, mass employment creation, the success of government and upliftment of the nation. Governments in developing countries to economy for many decades without any satisfactory result Why? The basic answer is simple:”
Economic solutions are not a part of economic tutorials in any institution of learning, anywhere in the world. This is because if such concepts are developed at all, they emanate from private investment of efforts towards that destination. This automatically implies elements of intellectual property ownership that are never allowed to be infringed upon. The implication is that such solutions to economy will never be freely available to government or any other party. Given their level of importance, immediately they are signalled as available from any party, the immediate government will impose restrictive laws to their access to any other party but themselves, knowing fully well that even they will not be privy to those secrets, although they can benefit from them for the upliftment of their economy.
To avoid beating about the bush and go straight to the point, there is only one single, ever designed and perfected solution to evolution of economy from an underdeveloped economy or a developing economy to a developed economy.
A look at developed economies would immediately indicate that they are operating practically identical principles proving that only one successful principle is available for the evolution of economy into the maximum possible prosperity and this is a durable and stable process needing no further intervention. Consequently, there are what are known as international best practices in economy maximization. In one word, the process is called economy formalization.
What is economy formalization?
Economy formalization is a set structural intervention in developing economy constituted in a defined intervention of functions. In this context, the functions in formalization structuring are directly attached through the immediate banes and challenges of underdeveloped economy.
What is an underdeveloped or developing economy?
The answer is precisely in the words Developing and Underdeveloped. The words directly suggest an uncompleted process of development. Underdeveloped economies are structurally uncompleted economies. In the more critical sense, these are structurally deficient economies. The challenge is in situating in what sense they are structurally deficient. For an answer, let us look at the features of an underdeveloped economy.
Characteristics and Properties of Underdeveloped and Developing Economies: The Perceptible Differences and Developed Economies
Characteristics of Underdeveloped Economies
1. They are forever wrestling with poverty;
2. Their market systems and business settings are largely obscure;
3. They are forever reinventing their economic principles;
4. Their politics is unstable;
5. They have high insecurity index;
6. Their currencies are subservient and unstable;
7. They perceive their civil service and local government offices as Mass Employment Solution Gates;
8. Statistics are unreliable and largely unavailable;
9. Their governments are the managers of economy and direct representatives of the private business sector of the economy;
10. Diversion of funds is high;
11. They largely disregard international best practices principles and business rules of engagement;
12. They engage directly in private business, only to turn around and engage in huge privatization schemes at wastage value;
13. Their civil services are overstaffed/overburdened;
14. They invent their own economic principles outside international norms and rules;
15. Politics and government constitute their Economy!
16.To them the Private Sector is solely a place for taxation; They rely on foreign writers and foreign media to advertise and promote/market their potential and brand their images;
17. Their civil servants regard economy and private sector challenges and development funding as opportunities to divert funds;
18.They have high corruption index;
19. Documentation and record keeping is poor and careless;
20. Continuity between administrations and governments is truncated or Poor; thus abandoned projects are a common feature;
21. Welfare system is rudimentary and undefined;
22. Vices and abuses thrive in their markets;
23. They have heavy debt burdens;
24. They engage in multiple taxation;
25. Their private sectors are largely dependent on associations and unions for business representation;
26. Association and union platforms are unstable and manipulable;
Erroneous Conclusions and Expectations in Underdeveloped Economies From the above, it is easy to regard governments and the civil service as reckless demons to their nations and generations; but strangely, this is not the truth even as it seems apparent and logical.
They are simply naturally reacting to a circumstance of grave omissions in the economic system in which they operate. The development history of what are, today, highly developed, functional, prosperous economies, will reveal that they were all no different and at times even worse off prior to the advent of industrialization, closely followed by the psychology and principles of a resilient economy.
The Perceivable Characteristics of Developed Economies
Developed economies always have an over-abundance of wealth and huge regular revenues and high incomes with high standards of living.
Their welfare is vast and fantastic, practically inexhaustible! They often have little natural resources but their economies are robust, resilient and magnificent in every sense of the word. They are always ready to absorb all capable labor in any category down to illiterate laborers of every kind. Look at Canada practically begging Africans and workers to come from all over the world, even after the extensive devastation of the COVID pandemic! Israel is on a very small piece of land in the heart of the desert, but just look at their economic status, agriculture and what have you. All education is entirely free! Their welfare is a marvel and their infrastructure is top quality; all these are forever assured and stable in all circumstances; even in extreme natural disaster, it is out of the question that they lack. This is true of New Zealand, China, Japan, France, Germany, Russia, Holland, UAE, and England; so what about Africa and other third world countries?
Single Possible Unique Solution Package for Mega Economic Structure
Business provides a service or combination of services to the market for profit. The component driving structures of economy MUST by International Best Practices be in profitable self-sustaining business formats. They will never sail nor be effective/wealthy/durable nor connectable to international markets as government based/funded or beggar platforms.
Economy/Business solutions are, therefore, private business initiatives of given titles and economic secrets of individuals and companies driving them, all covered by intellectual property rights and laws because only certain individuals and private interests derive and discover them over time at great efforts and expense; so they will never disclose them to
anyone nor to any institution, especially at this level of economic interests where protective national interest laws become binding! This is the first reason why Africa and Nigeria economy do not have these levels of economic structures and will never be given them.
The second reason is that we have been naive enough to think that every possible knowledge is available in the educational institutions; not being quite aware that cultural and economic warfare are fundamental to national and economic boundaries even when group economic systems occur. We expect Britain for example to work for Nigeria’s economic or political success, when our destabilization creates wider opportunities for Britain and our economic omissions increase their sense of socio-cultural superiority; for which reasons they will rather exploit the situation than end it. They are out by diplomatic mission to trade policy and mission to swallow as much of you as possible if not all of you, which is not considered an aggression in international relations! Africa has become used to being taught and given things; forever going cap in hand. From the foregoing, we also presume that our persons of high educational title can think out everything in their domains, because they went to school abroad. If it were so, there would be no one to call an Inventor or a Genius.
There is an African adage saying, Allah Drives The Flies For The Tailless Cow. So, in comes the GOD factor.
Our God is good and always provides. There are things that are not taught in any existing institution on earth but some individuals get to know about them in a flash of inspiration, which is how most inventors and geniuses come about!
Economy Formalization Diagnostics
Before attempting to cure a patient, one needs to diagnose the ailments to be able to prescribe the appropriate medicines for panacea.
Diagnosing the ailments is simple: Insecurity of Investments is very high, so finance comes into the economy only in limited amounts and very reluctantly. Why? High density Obscurity! In our market environment we can only see what is directly in front of us; we cannot even see what is inside what is right in front of us.
We don’t know who is in there, exactly what they are doing there nor how they connect with us. This is a blindfolded business setting. We find things mostly only by being told about them
by someone or stumbling into them on internet and media where we cannot always be because we have to face our own work and jobs. This kind of obscurity is very limiting and even killing to an economy and trade system. If somebody steals your money or sells you a fake product it is hard to find him; and even if you do find him, it is difficult to get your money back or have the product replaced. In this kind of market only mostly thrives and frauds thrive and prosper while the clients and investors are always operating in fear and uncertainty.
Is this not our situation ?
One and Only Unique Way Out for Underdeveloped Economies Formalization!
Formalization is a very obscure term for the exercise in reference. It does not at all suggest what the process is about nor does it give any hint on the constitution of it. All these, I suppose, increase the mystery about it and further stretch the security locks so no one can accidentally infringe on the secrecy of it or presume to think any institution can hint them about the process, which they never can beyond, maybe, the mention of the word, because actually they have little idea of the operational aspects; although it is quite easy to recognize when an economy is on the process of being appropriately structured. It is simply recognized to be fully conformed to International Best Practices in formalization procedures, by the titles and functions of the additional business structures introduced. They must also be in the proper formats to impact.
So, in brief, when the completing structures of an economy come into play, certain cogs and wheels, absent before, come into place and begin to turn, and what were challenges before are transformed into uncommonly wealthy Business opportunities! Formerly lost and abandoned revenues and income streams become accessible.
These structures position and connect an economy appropriately to the world economy, automatically triggering huge inflow of capital previously impossible; huge streams of employment opportunities not actually requiring so much formal education emerge in a two-way benefit fashion within and outside the economy, thus bringing reverberations of economic relief across much of the world economy. This is because the Emerging Economy creates new opportunities and income streams almost everywhere in the world economy! Look more closely and you will agree that this is exactly what practically every advanced economy does within the world economy!
Essence and Power of Economy Formalization
Formalization is the finishing process of structuring an economy for maximization of performance and positioning for automatic worldwide business and trade on the press of a few buttons, in full uninfringeable security. It is a two-way runway benefitting and opening new opportunities and income streams for the local and worldwide market and presenting a much wider market spread that reaches both ways.
In a fully formalized economy, the world market automatically comes to your doorstep with little or no physical contact, and you reach the entire world market down to petty businesses layout, without having to physically go to them! You can see how fantastic and appropriate this was in the post pandemic era, conforming to drastic reduction of travel necessities, protecting health, reducing multiple risks and high costs associated with distant travel; but succeeding in doing much bigger business with easier and more secure financing and business support systems by taking full advantage of the more sophisticated market environments and volumes of trade, but with much more ease, comfort and security of interests.