THE BRETTON WOODS CRUSADE OF PRIVITISATION ,FREE MARKET AND DEVELOPING ECONOMIES

      
Privitisation has become a thorn in the flesh of developing economies and the vanguard of intellectual terrorism that underpines its global usage is somewhat a misplaced priority in the region adopting it and some sort public theft laden with   moral abuse  by irresponsible leadership.Ibikunle Laniyan the Editor of the Blogger in this piece observes the storming nature of privitisation in the developing society and how succesful is it with the benefit of history -a lesson for Nigeria.
                       UNDERSTANDING THE CONCEPT OF PRIVITISATION=Part 1
The modes of economic development vary markedly across the world but the velocity of growth and the distribution of wealth across social classes is much more significant to the unity of the state and the  practice of nation building than the ideological safeguard of market neoliberalism .To be candid,methinks that  privitisation  is the most volatile western economic textbook terrorism tool, highly politicised and the most misunderstood trade concept in the developing countries and its parlous usage has contributed immensely to economic quagmire in the region in general .The nation is at risk of unprecedented economic crisis similar to what happened in Argentina or Latin America in general after the deregulation of the 80s and 90s if this trend of  intellectual trauma instigated by Bretton Woods imperial neoliberal system and the moribund political class in the land being tormented by neorotic  astigmatism and impenetrable carapace of western hallucination  and  sangfroid imbecility of the soul   is not curbed at the appropriate time.Given the enormity of our capacity building  challenges  the role of governmental planning in economic development as enshrined in our constitution must be revived that characterised the 60s and 70s succesful national development plans  ;is there still any need for it  First, we shall observe the intricacy involved in the ideological undertones and etymological appeal that underpines its brash usage  and clanger practice worldwide in addittion  to its phenomenal explosion ,global prominence including the strategic  impact from the ancient into the mordern civilisation.
First and foremost let us define  privitisation .Several meanings and definitions can be  adduced and attributed to the word  .Primarily , according to wikipedia ,it is the process of ownership transfer of business enterprise ,a public service ,an agency or a public property or public utility into the control of the private sector after outright  divestiture from the public sector .It may be handed over to a profit or non profit oriented companies .Outsorcing of services also fall within this range of roles and functions outsourced to a specialised vehicles or firms   such as  revenue collection ,law enforcement and property management .Secondarily ,it also pertains to several distinctive modes of operation  that govern it in practice.Transactions such as  the purchase of  public companies by private equity and the demutualisation of mutual organisation or cooperatives into or to form joint stock company are strictly held within the confines of privitisation programme .It also implies change and reversal of the state participation and involvement in certain economic activities.Some activities that had been historically handled by the State such as Postal services,telecoms water services ,or Public transportation such as public parks or hotels  and Airways have beeen shifted into the control of private sector .
In this context , four major methods have been widely used .This  includes share issue privitisation;Asset sale privitisation ;voucher privitisation and privitisation from the bottom or below as found among start ups of small companies in the socialist economies .While asset sale involves the purchase of a whole or part of a company by strategic investor either by auction or through Treuhand model ,share issue method involves selling shares on the stock market .Voucher privitisation entails share distribution of ownership to every citizen often for free or at affordable low prices .
In less developed capital market , share sale can be used to broaden the shallow market .and deepen market liquidity ;grow turnover and promote rapid economic growth .This may not be possible in underdeveloped markets ,due to underdeveloped nature of the institution ,inability or difficulty at finding adequate buyers and transaction cost may be higher .So listing in international bourses such as the Euronext ,New York exchange, London and Hongkong exchanges provides a better option for many government.
The developing countries due to incessant bouts of higher political and economic or currency risk detering foreign investors experience asset sales methods more than the transition economies of Central and Eastern Europe includingPoland Czech,Russia and Slovakia where voucher model is dominant .In this region privitisation from bottom is also  prominent driver of economic growth.
In the firist two method bidders compete offer for the highest price generated both privitisation proceeds and taxes to the state coffers.The latter involves authentic transfers of assets to the general public generating mutual form or  mutual sense of economic participation ,economic security and  financial inclusion and if the transfer of  vouchers is allowed ,a market in vouchers could be audible as permitted ,a market in vouchers that could be created with companies offering ready cash to pay for  them...
Though ,in some forms of privitisation, transaction has been heavily interrogated in form of public debt  and criticised as particularly noxious exercise.In this context the privisation proeeds correspond to the principal loans amount in addittion to the proceeds that should correspond to the secured interest  payments from the underlying asset in transaction that can considered as roughly the same as secured loan even though structured as sale .For instance in 2008 ,the sale of proceeds belonging to Chicago parking meters for 75 years was argued to be motivated by politicians ,in a clandestine desire and move to borrow due to limited option of finance as a  whole .
                                                            THE  ORIGIN OF  PRIVITISATION
In 1930s The Economist Magazine first introduced the term or as a word  rediscovered and recoined  it to cover the German war economic policy
It however remains debatable whether privitisation actually originated from the ancient Greece.The Greeks contracted almost everything to be handled by the private sector .In the Roman Empire ,Diverse forms of activity including army supplies  ,collection of taxes ,religious sacrifices ,postal services including the majority of public sector activities were handled by the private sector individuals  and corporations .Infact they also created state owned enterprises -SOEs and almost all the grains were produced by the Emperor s estates The epileptic cost of bureaucracy was partly responsible for the fall of Roman Empire.
The ideological movement in the ancient China  during the period of the golden age of the Han 's Dynasty was one of the first globally acclaimed record and evolution of privitisation in history-a period in which Taosm came to prominence  for the 1st time  as a state and laissez faire principles of Wu Wei that literally means do  nothing.It became a way of life .The sacerdotal pedagogy of the period admits that  the political strength of the period was the ferocious  impact and the invincibility of leadership authoritarianism .
The rest of Europe was still under feudal epoch proned economic model , with  the emergence of the Renaisance era-1300s-1600s.The rise of Ming Dynasty in China later opposed this method  and reintroduced privitisation concept to the real sector .The Song Dynasty that followed closely reversed this trend in favour of once again the vigorous and all-encompassing state socialism
                                                     MORDERN IMPACT AND PHENOMENAL WAVES


The Churchillian era also introduced privitisation shortly after the government of Clement Atlee-a succesful socialist regime that nationalised the bank of England in 1946 .The British Steel industry was privitised in in 1950s as opossed to large scale privitisation embarked upon by the German regime of the  period in which the then govt. sold its stake in Volkswagen to a group of small investors in a public share offering in 1961 .
When Margaret Thatcher came to power in 1979,the Great Britain entered into unprededented phase of her privitisation history .In 1980s under her irongate leadership ,the same with Reagan during the period in the U.S.A .massive privitisation waves gained impetus worldwide. Virtually almost everything was privitised in Britain ,where a handful of public utilities were taken to the cleaners .This includes-British Airways in 1987;British Petroleum gradually privitised between 1979-1987;British Aerospace -1985-87;British Gas-1986;Rover group -formerly British Leyland -1988;British Steel -1988;British Telecom-1984;Sealink Ferries -1984;Rolls Royce -1987; and when there was nothing left to privitise she turned to water .In most cases regional water authourities were privitised in 1989;shortly after NDIC was founded .Councilhouse  tenants in the U.K.were given option to buy their homes After 1979 ,almost a million houses had been sold by 1986.Likewise the privitisation of British rail happened under John Major in 1993.While France Telecom had largest share offering in France ,the British Telecom public share offring was the largest in the .U.K..during the 80s.
This storm attracted general revolt and widespread uproar among the general public and the parliament including the former Prime  Minister Harold Macmillan who lamented and likened it to  the sale  of ''family silver.''.
With the sale of  public properties after 1979,about 6 million shareholders were created in U.K. by 1985 doubled the previous record of 3 million recorded when she took over. Prior to the emergence of John Major in 1990 it stood at 10 million shareholders in the U.K.alone.
Subsequently ,riding on the waves of western impetus privitisation was exported to Latin America where it also became the rave of the 80s and 90s driven by market neoliberal princples of Frederick Von Hayek and Proffesor Milton Friedman  especially under the governance of Augustus Pinochet in chile and also took  the rest of the region by storm .Almost all the commanding heights of economy were massively privitised.There are so many instances with the evidence of history .For instance according to Newsweek  in 1996 ,the enactment of landmark hydrocarbon law in the  poor Andean country   led to the sale of 51 percent of  share in the gas sector to multinationals such as Royal Dutch Shell,Spain's Repsol YPF so that the attempt lowered collection of gas royalty rate to 18 percent from 50  percent .This conducive but profiteering gullible environment attracted 0ver 500million dollars worth of FDIs into Bolivia,between 1998 -2002 By the end of the usury period it was widely known that Bolivian proven natural gas ballooned almost nine times having the largest reserves in Latin America after Venezuela.
Moreover in this headlong rush ,governments from Venezuela to Mexico and Argentina followed the same direction and liberalised their energy sectors to foreign investment including water ,telecom transport etc sold off.In 1990 alone privitisation proceeds as a percentage of Latin American GDP was 6 percent of GDP .compared to private investment which grew to 360.5 billion dollars in 2001 from 150billion dolars in 1990 alone .
Prior to the privitisation it had contributed immensely to the economic boon and state coffers.The energy sector is primely treasured in this region and the oil and gas reserves are as valuable as the pre-columbian artefacts and a central part of national patrimony .It functions as cash cows to the oil exporting  government of the region.Huge states owned corporations  surveyed during the period contributed tremendously to state coffers like in Venezuela and  and Mexico  grossed about 75percent and 35 percent respectively of their  public sector revenues . 
Although Pemex -Petroleos Mexicanos still enjoys longstanding monopoly over the economy  and its sector.Nowhere has that been more true than in Mexico where the monopoly has persisted ever since the nationalisation of   its oil industry having been forced by circumstances and  expropriated  the U.S.AND British companies in 1938.When public utilities were sold off during the period Pemex still stayed in the hands of government.In Brazil Petrobras produces over 85 percent of oil that Brazil uses compared to 1970s when it imported 85 -a startling turnround -you may say.It is regarded as the latin American oil company-the biggest in the region.In 2004 three quarters of electricity distribution in Brazil is handled by private utilities but the government still controls 80 percent of power generation .Think about that .Why did Argentina under late Nestor Kirchner  decided to return energy sector  back to state capitalism  Was he kiddling and how sustainable was the tarrif and spiral of tarrif hikes of the 90s  We shall touch  impact review. But the question is this ;How succesful was it

THE BRETTON WOODS CRUSADE OF PRIVITISATION ,FREE MARKETS AND THE DEVELOPING ECONOMIES-Part 2                                

  THE NEED FOR SOCIAL OVERHEAD CAPITAL ;NOT  PRIVITISATION  AS A TRADE CONCEPT
Privitisation in the advanced countries was succesful because they had at least thousands of years of experience and trials  in contrast to China s that had similar exposure but decided to toe the rigid ideological lineage of a socialist enclave had since paid off-a populous boon to the mainland ,now 2nd largest economy in the world .Robust legal framework ,good governance and advanced institutions were responsible factor for its success.After millenia of government intervention in the economy ,the public sector deemed it fit to privitised family silvers.But Africa   is not yet ripe or mature to absorb western excreta .
The reason is simple if at all, it is justifiable because it will take decades  for it to happen .China recognised this imperative and a major reason why government is expanding there and not retreating and she has over 200,000 public enterprises and how many have been privitised so far compared to Nigeria with alittle above 2,000 SOEs In fact from the time of the invasion of the Normans in1066 at Hastings ,France was under fiery control of market socialism fronted for by monarchy  up till the time of  congress of Vienna 1815 that ended Napoleonic Dynasty , government was everywhere.Even till today the most socialist minded Europeans on earth are the French and they detest capitalism like plague though they claim otherwise.This apathy was instrumental to the rise of Mitterand who spent 14 years at the Elysee palace and the rise of Hollandais in the latest dispensation .They never ceased to bulldoze Mascdonald stores and American vestige in their land  to demonstrate their acrimony and further consolidate on the hatred against capitalism .
Generally speaking the private sector in developing countries especially Africa is very weak or too weak.This discourages any potential success in its favour.The private sector was either too backward or slow to take advantage of new and emergent opportunities nor exhibit adequate capacity to grow new businesses .This informed the decision of public sector to intervene in the economy and established the state owned enterprises on the continent in the 1960s and 1970s in addittion to the fact foreign investors were not interested in the market with highly underdeveloped price system.This was later crushed by external aggressors .Whereas similar measures as noted in the so called Marshall plan was used to save western Europe  from economic crisis during the 2nd world war .Rooseveltian New Deal that saved Americans from the great depression of the 1930s cannot be forgotten in a jiffy .If in the developed economy with developed price system they still need government presence and interventionist policies like the Clintonian boom of the 90s and the recent regime of Obama] i.e Obamacare],how much more for the developing countries that lack social overheard capital
The greatest problem America has was the privitisation of money creatiofrecentral bank owned and controlled  by wall street banksters.So in real sense of the world,  the American government under Pressident Obama does not have a central bank because the Fed belong to these fraudsters.In the article written by Brian Browne published on The Nation Sunday-oct,20,2013 pg.12],entitled; America and its debt showdown;Mad dash into lunacy-Browne exhume the evils of the private sector  in a concise incendiary.He unveils the evil of ;
;Government'' that ''borrows its own money  as part of an elaborate scheme  to ensure profits to the biggest players in the financial system.These large financial houses hold most of the bonds government issues .These bonds are virtually risk free .Govt.has the unlimited liability to redeem them because government can issue curency to pay the debt obligation.Through this roundabout system government borrows its own money ,government guarrantees sure profits  to large bondholders .This is a form of corporate  welfare dwarfing the welfare the poor the destitute obtain'' .This speaks volume of the evils inherent in the   privitisation of Fed .since it opened office in 1914-a major architect of great depression and the meltdown and a war profiteer and had firmly remained under control of Wall street as the most fraudulent financial institution in the world .The public safety is under siege .Now they the tea  party guys-the racist kluklux klan  enclave in the Republican party  , threatened to shut down Obama because of the colour of his skin and the evil system coronated by Fed.because it control America 's economic power .The privitisation of money creation in the U.S. can be likened to the greatest financial scandal of all time-a major cause in which 99 percent of A mericans controlled 1 percent of America 's wealth compared to 1 petrcent of U.S. wealth controlled by 1 percent of Americans-the greedy wall street Banksters .    So,what are they privitising in Nigeria  ,when public safety is under siege and it would have been better for it to be liberalised like what we had in  the telecom success .
Although Adam Smith believed and enthused that introduction of easy taxes ,transparency and honesty good governance and the rule of law would lead to economic development .John Stuart Mill also added improvement in public intelligence gathering  and foreign arts and external technology introduction could break even but in a cultural lag  as appended by Charles KindleBerger in his book -Economic Development',government has to lead the way intervene in the economy beyond Smith and Mill' s assumption..This was what happened in the case of Africa in 6os and 70s .
Cultural lag can also be linked to low performing institutions and the inadequacy of industrial entrepreneruship .As noted by Albert Hirshmann that the scarcest decision in the developing countries is decision making and as capacity that grows with practice may be difficult for entrepreneurs in the region to take advantage of new emergent opportunities without an enabling environment created and the risky nature of a capital intensive venture.Kindleberger then noted that 'if the central authorities  can induce pressures  for decisionmaking they will advance growth breaking bottlenecks'.
                                                THE MIASMA OF IDEOLOGICAL DIFFERENCES
Nevetheless conflicting opinions and  ideological differences never cease to abound among economists  and policy makers alike that price system that price system cannot work  effectively in both  developed and developing countries .While other dis agreed and proved the importance of government intervention  and the provision of social overhhead capital .They believe there is no need  for economic planning to be replaced by price system initially or at best scantily cooperate  with  as emergent institutions evolve .Some argued government planning and direct allocation should replace price system  in both climes .The view that direct allocation should proceed to stimulate  competitve price system is not only proven by theoretical permutations but well proven on the pages of history .So price system is less likely going to work in underdeveloped societies unlike the advanced countries with more social overhead capital .The malfunctioining of price system was equivalent to the absence of social overhead capital in the region and inspite of its high capital output ratio the provision of social overhead capital is worthwhile as it stimulates broad based private sector activity and a concrete basis for productive investment .For instance lack of transport in most developing countries in the 60s such as China and parts of Latin  A merica was bridged by government investment .The various national development plans in Nigeria shared similar characteristics.Whereas such shortage was hard to find in South Esstern Europe of the period  but certainly government investment had preceded this kind of positive development
So Hirschmann was right that decison making is the scarcest resource in the region -an onus that governmnet can take to provide  this enbling enviroment for private initiative to thrive.So in such clime privitisation may not an immediate priority and it would have been liberalisation to create the needed competition rather than passing public monopoly into private monopoly .Come to think of it ,can the private sector raise such enormous capital needed to create giant complexes like Ajaokuta Steel cxomplex and a host of other badly needed heavy  industries,refineries and pipelines  founded in the 60s,70s and the 80s .In critical period of history governments are meant to intervene .
Marshal plan was successful in the post  world war reconstruction of Europe.No wonder it still remains a major reference point today  In his book -Earth in The Balance ,chapter -14--A New Common Purpose..Al Gore,  U.S. -former vice president in 1990s calls for the advancement and extension of Marshall Plan to the whole world. Macarthus blueprint for the reconstruction of Japanese society and the economy and in 1947 point four assistance was extended  to Greece and Turkey including NATO and other military alliances  shared similar objectives -spread free trade . These are some of the factors that led to cold war rivalry until the fall of Berlin.


THE BRETTON WOODS CRUSADE OF PRIVITISATION ,FREE MARKETS AND THE DEVELOPING ECONOMIES -Part 3




                         THE GLOBAL STRATEGIC IMPACT OF PRIVITISATION IN THE DEVELOPING ECONOMIES
Privitisation concept nevertheless has become one of the major features of free market economy at full blast and a common phenomenon that  unify the developing and developed nations together in general.Its global prominence is justified by the evidence of historical antecedence .Between 1988 and 1993 ,roughly 2,700 state owned enterprises were privatised with total privitisation proceeds of about  270billion dollars in over 95 countries.In the first half of the 1980s , over 227 firms were privitised in the whole of  Africa with thrree quarters located in about 6 six countries with five including Cote d' ivoire ,Gambia ,Guinea Niger, Togo located in West Africa .12 out of   18 SOEs in Franco phone Africa also had privitisation programme in place .Ghana had liquidated or sold off about 159 SOEs between 1991 and 1995 .Nigeria in like manner had also privitised 55 small scale state owned enterprises between 1988 and 1993 .Though the total number of privitised entities were not fully identified  in this official data  but it is proved that about 847 SOEs were privitised  between 1980 and 1995 .
                                        WASHINGTON  CONSENSUS;PRIVITISATION IDEOLOGY AND FRANKEINSTEIN'S
When Washinghton Consensus was coined in 1989 by English economist-John Williamson he had 10 major points in mind ,described as a set of economic policy prescriptions .With these prescriptions,he devised standard package for reform to alleviate challenges and problems facing crisis ridden economies .THis standard package was later adopted by Washinghton D.C. Bretton Woods institutions including the U.S. treasury .These prescriptions include;macroeconomic stabilisation;economic liberalisation;in terms of trade and investment ;Redirection of public spendiing and subsidy removal ;Tax reform such broadening of tax base and the adoption of marginal tax rates;market determined but cheaper interest rates ;free flow of foreign direct investment ;the privitisation of state enterprises 'Deregulation;and the possession of legal security for property rights ;Opening up import by rwemoval of restrictive trade barriers ;fiscal policy discipline ;Competitive exchange rate ; the growth of free market in these.......contd
Subsequently Williamson narrowly defined term ''Washinghton Consensus ''had been broadly redefined with neoliberal tract placed upon it and inordinately abused.This term was first presented at the institute for international economics -an international think thank based in Washinghton .He used the term in a synopsis of commonly shared policy advice with Latin American politicians and economists and adopted by the Bretton Woods institutions ,This was believed to aid the the recovery of latin A merican economies form the financial and economic crisis of the 80s.  How far has the privitisationin fared in the attainment of its objectives

                                                        THE ATTAINMENT OF  POLICY OBJECTIVES;A MIRAGE
According to Mancala-2013 privitisation processes have taken place in nearly every continent of the world developing and developed world at different periods in time and this pace has been affected by either historical events-decolonisation effort,postwar reconstructioneffort and political and ideological predilection of such climes such as the 1980s liberalisation or the 2008 economic downturns  .Several compelling reasons were given by the diverse nations for its adoptions and the potential incentives  .
First the proponents disputes their critics that it can be used as an avenue for fund raising generating much needed revenue for the state .Secondly, privitisation brings in invested capital  to the privitised companies and reduces corrupt government roles in the economy ;promote wider share ownership ;open up the market to competition,boosting growth in productivity and efficiency as well as heightening competitiveness.These are  essential factors in the ability of the nations to harness growth factor to generate wealth creates jobs and raise wages .-Kulasekera;Public Enterprise Reform Commission of Sri Lanka .,Annual Report ,1996 ] .
With the review of historical antecedence antiprivitisation critics seemed to have upper hands. With empirical evdences have  been able to justify the claims that it should not be seen as an end in itself but a mere means of policy choices and policy process  to attain certain or specific policy objectives  and whose luck depends on fate may or may not be feasible in relation to context ,be it econmic or social ,the industry target and available methods to be used for the accomplishment of the objectives .As we shall see how succesful is it in the reduction of poverty or inequality of wealth or the attainment of its policy objectives as projected given the available conditions and the magnitude of its challenges  .
According to Mancala-2013,the three major objectives of privitisation noted behind this imperial Bretton Woods programme include-fiscal objectives ;the attraction of foreign direct investment -FDI;and the introduction of competition or competitive markets .In the first objective , Mancala disproved its success and argued that the notion behind the reduction of budgetary deficit and the generation of more funds into the state coffers as a predominant reason was not misplaced but also unsuccesful .
Privitisation they contend generates resources than when they were in the control of  public hands .In a pre-privitisation survey ,the SOEs generates financial flows to the state in form of taxes and dividends while the states provides investment and subsidies .On the other hand taxes are provided to the state and privitisation proceeds are received one-off from the buyer .So the positive nature of post privitisation effect had been critiqued .Privitisation by princple should increase productive sector transfers to public sector such as the tax genrated revenue from newly privitised vehicles be fficient alongside savings from on subsidies and privitisation proceeds should be be higher than dividends loss According to Davis et al 2000 ,the evaluation and critical assesment  of such fiscal impact is highly complex especially the total amount generated by the state  coffers as a consequence of privitisation .
In the calculation by Berthelemy et all-2004 of the sales values of privitised entities in Africa in terms of  government revenues allocation and gross domestic ratio in about 36 African countries between 1990 -2000 the post privisation impact appeared negative and mired with bleak results .Its annual sales value on the avaerage  stood at 0.36 percent of GDP and the value as percentage of government revenue stood at 2.20percent and when compared to OECD region total proceeds from the programme was below 9 billion dollars .Nevertheless the advocates were not satisfied with such findings  and debunked these figures that were bereft and  shortchanged of longterm outlook impact of privitisation ranging form the impact of subsidy cut and forecast revenue increase in form of corporate tax etc.
Both the internal and external influence factors have been  noted as a motivating impulse behind the reduction of budgetary deficits .Besides financial crisis that retard economic activity reduce tax revenues and the motivation of new sources of revenues that ordinarily through such  climate in certain cases  created the need, the influence of external aggressors also in some cases such as the need  induced by  the European Union countries to comply with criteria for convergence and membership of monetary union built impetus into privitisation waves.,Above all the Bretton Woods have been largely responsible for its global prominence imposed over developing countries with draconian measures .This was included as part of reform processes in the region -an intergral part of country strategy papers -CAS ; a policy conditionality to approve and sanction lending operations .
What is the size of FDI s generated  in the post privitisation era This can also be debated .
It is therefore necessary to observe that poverty level had increased exponentially in the regions that adopted the Washington confusion ........contd.
      THE BRETTON WOODS CRUSADE OF PRIVITISATION ,FREE MARKET AND DEVELOPING ECONOMIES Part-4-

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                                    THE TIDAL WAVES OF PRIVITISATION AND THE NIGERIAN ECONOMY
The mass liberalisation and deregulation of the Nigerian economy following the introduction of structural adjustment programme -SAP on September 1986 brought phenomenal privitisation waves into the country .
The partial and full privitisation including commercialisation programme ,began in 1988 and the 1st set of both options took off as government selected 111 public enterprises including 35 enterprises .87 of of these 111 public enterprises were identified for partial or full privitisation by 1995 and succesfully processed .25 financial institutions including 14 insurance companies ,11 banks and 20 companies  in the real sector including 6 food processing companies ,3 textile companies ,3 cement plants ,2 salt companies ,22 agroallied businesses and a host of others.These SME-DOEs operated in both in the real sector and the service sector but excluded the tsrtegic sector of the economies.The privitisation programme experienced a break in 1994-97 period and by 1998 with the return of  the programme under a new tag -''guided privitisation '',it had two elements those that occur not in batches but in SOE at a time -an attempt that was described as experential method of learning .

With the emergence and renaisance  of democracy in May 1999,the then government of President O.Obasanjo flagged off the programme in earnest and national council of privitisation -NCP under the chairmanship of vice-president A.Atiku.However ,the success of the programme with the tireless and clueless  efforts of successive regimes leaves much to be desired.We need not contend any longer the common knowledge that SOEs in the country had become a conduit pipe for corruption  and an avenue to siphone state funds where money was voted for the public parastatals and SOEs  without truly spending this fund on the targeted institutions as claimed by political class and the beauracracy.According to El-Nasir Rufai the former BPE Czar between 1973 -1995 the federal government expended over 100billion dollars on public enterprises but their returns stood at 0.5percent per annum costing over 256billion naira to maintain per annum .

As at June 2001 ,NITEL debt stood at a staggering 300billion naira .Railway had consumed  826.6 million dollars on phoney contract between 1997-2007.As at June 2004, some 300million dollars had been looted by the sabotaged  TAM operations in the nation's refineries .The kaduna refinery alone gulped 12billion naira annually on salaries and emoluments,yet it functions next to nothing .Between 1999-2003 it gulped about 254million and 400million dollars  on rehabilitation of refineries  and pipelines all in the name of TAM operations .

The natural corollary is to privitise them but on the other hand our hands is tied given the  fact that  the trials of privitisation over the last 30 years or so ,leaves so much to be desired.For instance ,out of 122 so far privitised as at november 29 none has been succesful besides NAFCON or probably Nigerian stock exchange-NSE.NITEL failed and the telecom was not privitised but was truly opened or liberalised.Infact , the vice-president N.Sambo corroborated senate  report on privitisation at the inauguration of the new board for national council of privitisation on November 24.So who is deceiving who If the senate adhoc committee report said  that the privitisation process has been severely flawed and outcome unsatisfactory ,only a fool would disgree.Daily Times ,Ajaokuta ,ALSCON,Delta Steel company-DSL,NICON ,Sunti and Bacita sugar companies respectively and a host of others .What more can we say

Solgas an American energy company  and another fraudulent  company Global Cif Holdings  with sinister motives  came donw to Nigeria and massively cannibalised the 4.5billion dollars Ajaokuta steel complex .Pentascope equally swindled Nigerian telecommunication company -- NITEL with global system for mobile communication and its subsidiary --MTEL .ALSCON was valuedat 3.5billion dollars and put into market for sale by bureau of public enterprise -BPE for privitisation .BANCORP  FINANCIAL GROUP a Nigerian-American consortium became the highest biddder in the bid for ASCON..It initially emerged with highest bid with the price of 400milion dollars for the majority stake  in the company .

Somehow along the line the bid was overruled by a quirky spirit of resistance  still remained a riddle till today .Two years the second bid was won by United Company RUSAL -UCRUSAL-a Russian company with 75 percent stake worth -205million dolars .One should not forget the strange circumstances that disqualified BFIG were somewhat controversial due to alleged bribery involved  and allegation and refusal  in relation to 10percent of the monumental fraud and proposed bid price to be paid within the stipulated price ;not forgeting also the undue political influence wielded by the Presidency over BPE -a carry over norm from successive regimes .The 1999-2003 was a period in which Nigerian Airways was sold to Aerowing Aerospace -a company whose existence was riddled in falsehood bought over the Nigerian AIrways .But in this case was quite different in that BFIG-a COMPANY  with proven track record had taken the matter to court against BPE ruling which ended in BPE 's favour . The last resort was the supreme court that enforced the reversal  in 2012.......................democracy ,transparency and the rule of law but  6 months after court rulings according to various audits have shown that ALSCON fixed assetswere devalued by 101.2billion naira -a near 90percent when the Russian company took over .Auditors unearhted that it was devalued and beaten down to a mere 14.9billion naira in 2010-a far cry from 129.9billion naira at the end of 2006

It is becoming clearer that privitisation of SOEs is geared towards  selling  of family silvers especially profiting heavily from it s fixed assets .Because after the 75percent stake --a price far less than the amount generated from the fixed assets of the company .It hardly expended or risk any capital on the aluminium plant having the sale of the company assets to raise 115billion naira raking in the  profit of 513.8m dollars that was hardly shared with a Government that owned 15percent in the company .So , in the name of privitisation ,it is profitable for the owners and buyers to sell off company  fixed assets after taking over .It has become a norm in the privitisation exercise in this part of the world .With swindling predilection acquisition proceeeds are beating down under controversial circumstances ,selling off the assets , downsize the workforce and milked heavily SOEs that they are supposed to transform .

To justify this fraud various reasons have been adduced and advanced against the viability of ALSCON  industrial technology with claims that they were outdated and needed replacement .Those claims have been made by seasoned proffessionals and engineers which appeared to hold no waters.In the case advanced  against ALSCON ; the long term price of Aluminium is declining ,production cost escalates were cited .The infrastructural inadequacies in the country such as  epileptic power supply and the notion that production of  metals like Aluminium does not condone power outages that would cause unfinished products  and hot ore to be stuck in various parts and plants during production process while cooling that can cause monumental damage to the plants while cooling also does not hold waters .Similar arguments have been advanced against Ajaokuta steel complex purposely motivated to discourage and demarket this plant that is the engine room of the nation s technological revolution .The claims that the steel complex is outdated and should be scrapped is a part of high level international conspiracy going  on in Ajaokuta.We shall give   each of these SOEs ,a special treatment in our subsequent reports .

But it may be true that mordern technology in use has led to the decline of international price of Aluminium but it is not enoough reasons for the huge capital investment of the plant to go down the drain and its fixed asset auctioned for the benefit of the political class or discarded on the basis of outdateed technology and old machines .While it sis true that new technologies are being emerged and devised but the old machines and existing plants have ben used by other similar aluminium companies to generate money or capital necessary  in the purchase of the new technologies.

Nigerians have been deceived for so long that the blast furnace  technology was outdated .This was corrected several times by the original company -Tyasypromexexport that constructed the  steel company.This Russian company was instrumental at it s peak for the construction of 60 percent  of world steel plants Managing the existing technology using what you have even though plastico metal offers the latest technoiology    The spillover effect of coldwar rivalry and intense ideological free competition immensely contributed to whittle down the steel complex economic relevance and  influence -a sure panacea to our much anticipated industrial revolution..These arguments are politically motivated .

      THE BRETTON WOODS CRUSADE OF PRIVITISATION ,FREE MARKET AND DEVELOPING ECONOMIES -PART 5

                                                      

                       THE NIGERIAN PORT AUTHORITY -NPA,AND  PRIVITISATION ARGUMENT

In an open letter to the Presidency  published in Thisday ]on Sept.2000 pg.74] that the Nigerian Port Authority was slated for privitisation according to the statement credited to the then Minister of information.Contrary to various presentations made bythe house unions to the authority on the fact that the ports should not be privitised based on several which include --

-------That the federal government had good intentions in setting up the port solely as government paratatals ;subject to promulgation of of the Decree 25  of 1988 reviewed in 1999.

-----That in the  said decrees  ,the ports were not listed  for full priivitisation but for full commercialisation ]ref.to the letter from the Presidency --ECD/5/13/VOL.11/349--dated 21ST May,1999 and addressed to the President of General Maritime Workers Union of Nigeria]attested to this fact .

Against this assurance and pronouncement by National Assembly ,priviledged people -the cabals running the country were still bent on selling the ports in which the national security not paramount to them.

Already the Nigerian Port Authority --NPA had performed above board and there was no reason to cite inefficiency as major factor factor to privitise it because it cannot be counted among the inefficiency lot even though there was still need for improvement .According to the reprot in 2000 it had over 12,000 and 60,000 employeess directly and indirectly on its payroll fully engaged in sundry port works with over 20 billion dollars in assets and a prized property of the over 160 million nigerians .

It sound so horrible,disheartening and uninformed why would a rational mind attempt or tinker to privitise probably the only government parastatal under the ministry of transport able to fend for its self without receiving any subvention whatsoever from government Williamson 's 10 point agenda probably did not include such except for the brazen act of brigandage .It is on record since its full commercalisation in 1991 it had received no subsidy form governemnt .meeting evry target set for it by governemt paying into the coffers of govt as well .

The federal government had often guranteed its loans borrowed on her behalf and had not failed to repay as when due even though the loans were secured on the altar of politoical expediency ..With the exception of oil subsector ,with its  seaports  had controlled  99.2percent and 95percent of total import value into the country between  1984 to 2000.It had contributed immensely to national foreign exchange earnings  in the country with some 30 percent released to the NPA to meet its offshore financial obligation .It had also been able to embark on massive port development betrwen 1975 to 1985 asides its huge share investment in various companies and reputable bainks in the country .Its pension schemes still remained one of the best in the country with some over 2 billion naira put in care of pensioneers .The commercialisation decrees give it wide powers and mandate to invest and venture into businesess  as a way to grow its revenue base .This led to the establishment of continental shipyard and the seaview properties .

Why would a company noted as a chicken that lays the golden egg and with robust management and such monumental assets second only to oil sector in the country that huge contribution to the economy be slated for privitisation Here is an institiution that had given financial assistance to Nigerian Railway ,Daily Times or some ailing government parastatals to name a few .According to the open letter signed by Peter O.Abolarin the general secretary of  SSA NPA Branch these cabals  and their foreign cohorts were bent on transfer of ownership of NPA to private hands ''in outright defiance of the enabling Decree 25 of 1988 and Decree 38 of 1999'' and flagrant abuse of the constitution.''This is clear intention  of a few  powerful ''moneybags '' trying to own the whole land '' while the rest of us become poor tenants 7.Such a situation must be resisted by all and sundry ''It then concluded -''we want to stae that the same individuals who have failed in their private businesses in the past are the apostles of privitisation today''.

RoRo port was in priviate hands before or was formerly privitised but how succesful was it It has often been sued as as a yardstick or to exhume the flaring testimony  of privitisation  anatthema in the sector and the econonmy at large .

RoRo terminal was once managed and jointly owned by Messrs Akindele and Hoeglline for many years without any concrete result .Although the fake investors claimed to have gennerated a paltry 58 million naira monthly and about 80 percent of the income -some 54 million naira was spent on salalries and sundry exoenses This does not appeal to common sense .6million naira profit for the NPA  and only 50 percent was paid to the NPA.Fortunately enough when it was taken over by the NPA ,IN THE FIRST MONTH OF OPERATIONS raked in 60million naira and salaries and emoluments consumed only 6millionnaira  contrary to previous claims by private fraudsters and generated 54milion naira into government coffers .This same fate is likely going to befall NEPA..

Moreover the reckless antecedence of the foreign port consultants such as the container terminal company and the Hamburg port consultants specialists in port management that handled the A papa  and Tin Cna Island port s respectively cannot be forgotten in a jiffy as a tireless ''saboteaur to the socioecononmic growth  of this country''.

World Bank  as a major advocate of Washinghton Consensus faced with the radical attempt at revitalising and rehabilitating  and the maintenance of  of plants at the Lagos Ports also ended in total  failure ..Out of the total 40 plants given to World Bank to revitalise within a period of 3 years rottening away in its custody only 4 were revitalised.The resultant efdect of vandalisation had crippled the remaining which were later sold as scraps by the port authority.These are the evils of the private sector .Even the four plants that were rehabilitated  could no longer be operated

It is shameful for the world bank not to know its right from three..It had a poor history in the management of pritivised utility and the direction which economy had bled profusely.Which magic will it now perform in the case of NEPA that has not been seen 

Richard Sundry and Peter Tunrbull of LeedsB UNiversity  in the U.K. in their meticulous research and comparative analysis as noted in their book -Private Profit ,Public loss ;The Financial  and Economic Performanc of U.K. Ports ''that the privitised ports has totally failed in the U.K.compared with the management of public managed ports .

The ports of Singapore, Dubai Shanghai etc with full autonomy were fully commercialised ,controlled by government ,award winning and among the best in the world .In year 2000 , Shanghai Port was ranked as 5th best in the world in term of efficency and productivity .In view of the fact that ports play a major role in the defence of the nation ,the privitisation attempt at the ports can be likened to nothing less than a threat to national security .Imports of arms and munitions  and the control of port operations by private jetties portends calamity for the nation such as the Gideon Orkar coup of the 90s was perpetrated  by private jetties .They are still fresh in our minds.

Due to sinister motives ,the cabals are bent on port privitisation .In the recent times renewed  attempt has been made and 3,000 jobs  in NPA as government plans to privitise Marine services department and a host of others .The NPA 's engineering  ,security and fire services department as currently may go .After the concessioning of the Port in 2006 these are the major services left remaining ,now they are slated for privitisation and when this is done the authority is finished .Ports in the hands of buccanneers indicates that the Nation today is unsafe to live and is potentially under threat of external aggressors .Already iunvitations are under way welcoming competent investors to take over the remains of its carcasses .

Marine services involve-dreging and mainttenance of ports channels ;Quay's  cargo handling ;ships berthing and unberthing at the pots ;tallying of goods and storage services;ships repair, stevedoring  and cargo surveilance among others would now be provided by the private sector .Citing our earlier instances of poor handling of port services we can be sure that the economy is headed dunghill. ;

According to the letter signed by the Acting Director General of the BPE-Bureau of Public Enterprises Benjamin Ezzra Dikki sourced from thye Nation Newspapers dated January 18 and addressed to NPA Managing Director,the success of the reform and the colosal gains from Port concessioning informed the decision and the planned extension of the reform initiatives into the marine services.

The port concessioning under erstwhile government Of Presient O.Obasanjo led  to retrenchment of ovedr 8 ,000 workers  in 2006.The semnio staff association through their leader comrade Umar Jimoh kicked against the move .They are certainly going to have their given the failed attempt of the unionists in the past   

We shall have to treat the oil and gas reform separately and a host of other sensitive sectors of the econnomy if time and space permit us .Let us move on briefly  to PHCN and the unbundling saga

                                                                    POWER OUTAGES IN NIGERIA

With the passage  of PHCN to the private sector  i feel dejected and confused that public sector monopoly has been turned  into private sector monopoly .This is a setback to the 80s trying to experience and retest  what latin American economies had tested and vainly experimented with no result .

A monopoly is a monopoly it can never be efficient and is meant by orientation to  short change its  customers. Our antitrust laws and competition policies equivalent of Clayton and Sherman acts in the United States are barely in existence at best at its infancy .The transfer is imperial and people are not satisfied and happy  from manufacturers association of Nigeria-MAN to national unions,virtually everybody disagreed   .one , it is against the constitution  because the constitution says that the public sector must control commanding height of the economy .Two , In the last 5years  30billion dollars was put on power or other source put it succinctly about 3.5billion dollars was spent annually in a decade  yet we have not been able  to generate 1 000 MW.but Brazil put 10billion dollars in power and generated 10,000MEGAWATTS MW.The issue is corruption .It cannot worrk . NITEL failed , Ajaokuta failed Daily times.ALSCON failed. The previous senate report said privitisation had failed .Infact privatisation of the banks had failed because public sector funds of about 3 trillion naira had been used to bail out banks .Now tell me which success have we  enjoyed since the advent of SAP or renaisance of democracy ? Practically none Apart from NAFCON under control of Notore chemicals what have we ?Let s call a spade a spade

The problem is corruption using public sector stolen funds by the same political class to purchase public utilities is the highest level of brigandage in the history of  Nigeria s economy .Nigerian has the lowest per capital megawatt or energy per capital inthe world and South Africa is one third of population  and yet it generates  power that may not be generated or possible in Nigeria for the next 50 years-about 45 ,000MW more than enough for its population .

The administrative bottlenecks has beeen built up .The GENCOS are owned by different owners and the same for  DISCOS even though theu under the same political power dynasty  while another owner -Manitoba -a canadian company controls transmisssion company of Nigeria which does not even have a  board .After the President has handed the companies to new owners ,the gratuities of workers are to be paid by the privitsation proceeds of over 2 billion dollars .

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THE NATURE OF MONEY

Money is fundamental  to the exchange of goods and services in modern society and object of virtue and  value and curse everywhere both to accumulate wealth and poverty .Money itself by value hardly depreciates but the exchange of money perpetrated by market forces too  foreign  to it , does change automatically  but imperfectly to reflect this changing value . When money by value declines ,  it is the exchange that declines by value of its flow that is affected .The consequence is that faith-a metaphysical fiduciary  powers  reposed in paper money also declines .It is this faith in paper  money being the original intrinsic and extrinsic value which could be affected by the flow and exchange spiral, leading to inflation and economic crisis . To curb this spiral and contagion affecting the metaphysique of money  and to stabilize the value of money and make inflation positive –the only phenomenon of economic growth , the liberalization of exchange of money , to perfect  SONACA is the only antidote ,  the commodity value can then spread wealth to every consumer in an economy irrespective of economic status . Consumer spending would hardly decline as long as exchange stability[stable money supply ]  is maintained and sustained .Growth in consumer spending would accelerate investment , boost savings in the long run automatically tackle recession and maintain the economic boom until an economy is willing to apply techno-cession  .To understand the stability of the word ‘money ’,we must understand change cycles and its implication on other vital economic cycles and how they reflect on monetary value .

When money changes hands , it is the value that is exchanged .Exchange keeps swinging periodically affecting the monetary value even though this value is stable .How do we preserve the value and spread the value and let it bear on the exchange ? This we already resolved above .The commodity value of money which is gloriously tied to the apron string of human faith is ordinarily stable and a source of real wealth of commodity money that has not been tapped .But the circulation value of money called money supply which abets inflation influenced by unstable exchange often have an unbearing influence on the general value of money and the economy controlled by credit arbitragers .So . in real terms , the commodity value of money hardly or does not  change hands to contribute real value . When this happens , the word money adopts a different and repugnant  nature discouraging real wealth creation , real economic growth in place of nominal wealth and nominal growth that can only be possible if commodity value is restricted in the dunghill.

If encouraged , this boosts the transparent flows of disposable credit money  in a robust credit economy for the  purpose of universal welfare  .

                              Basic Micro financial functions and economic exchange

The essence of microfinance ,not just the exchange of goods and services but basically to redistribute wealth and circulate the commodity value of money through disposable credit income to every needy economic agents .

Basic economy of exchange is sustained by extensive  credit  arrangements albeit haunted by structural and institutional  inadequacy .In determining the value and volume of money exchanges  , the annual credit income per family and annual credit income per capital both determine the quality of annual per capital national income per annum .What is the size of  this disposable national credit income on a sustainable basis that can back up with each man ‘s naira or dollar of gross and net national income ? What is the turnover rate of each naira or dollar of disposable credit income annually ? Is it 5o times or 100 times turnover rate per year  ? It is this ratio upward quality trajectory devoid of distress market and tight credit cycle can ensure sustainability of desired economic growth on the SONACA  Para-macroeconomic indicator  .This is  made possible by channeling savings  into redistributionist investment though not all is invested which is vital to grow standard of living .

                                   Changing Pattern of Investment

In modern society ,we admitted  those who promote creation of wealth do not promote real wealth but rather nominal wealth back up by nominal GDP growth in contrast to redistribution of wealth and circulation of commodity value of money .Real wealth has  been discouraged with possible consequences of boom and burst cycles .Without  real wealth , marginal savings can also take place but not real savings to promote universal wealth based on heavily restricted business opportunities. Promoters of investments  have been able to dip their hands into these savings not owned by them to promote concentration of wealth while original owners of wealth languished in poverty  .

There is constant flow of savings but the exchanges are not vastly different and adequately efficient  in the circulation of commodity value  ranging financial and microfinancial instruments to communicate values to agents .  Consequently , a non-redistributionist society does not parade a uniform credit cycle or egalitarian cycle of credit arbitration in credit assets or credit  evenly contracted and expanded its efficient use  to over every potential needy project .LIBERALISATION OF THE ACESS TO CHEAP CREDIT is a fundamental challenge to redistributionist oriented society than the former in which circular flow of credit and credit money or income is evenly endorsed to  promote capital development .This is a fundamental basis of free market economy .No free market exists without a robust  national credit trade .

A free market economy until now hardly exists a farce an illusion and impossible without a robust credit trade or credit economy with extensive patronage of  financial sovereign intermediation .More than 200 years after Adam Smith free market is yet to exist .This is a shame to western scholars and the pattern of investment must be determined by the nature of this free market economy .Forget about western neoliberalism .The first free market economy model is the neomarxist free market which is represented by everyone an only be endorsed in redistributionist society than a non-redistributionist oriented society that discourage ordinarily even circular flows of funds among its citizens with incentives pummeled by arbitraging bias .This is the very first reflection of free market in mortal history and the 1^st generation of seven free market macro economic models evolved by market redistributionism as we endeavor to exit modern age civilization to golden age civilization under Potage Golden philosophical templates .

 Mobilization of Savings and Multiplier effect .

Loan able funds arise from disposable[net ]  savings [money not needed by savers over a period of times ] excluding gross savings are channeled to safe investment when mobilized by third party .The facility usually regarded as credit has not been well utilized for a long time as an instrument of wealth creation .What is the proportion of  net national disposable savings to back up meaningful  investment per annum in an economy ? The use of disposability is termed as gross credit oriented to promote credit income by the borrowers after a satisfactory repayment .What is the proportion of  credit  income  required whether loans are rolled over or not  to promote  a befitting  standard  of living  for the borrowers  ? If sustainable after repayment , how can credit and credit income be value added enough to continually run a marginal project without recurring recourse to loans on a periodical basis ? It is pertinent to observe as we know  usually  that  a repeated credit purchases is necessary to improved  business performance .Guiding against credit risk even for tested borrowers is a great challenge to microfinancial institutions .

Most importantly , the volumes and value of microfinancial instruments to gulp the existing cumulative savings are a meager lot if not a rarity,  do not exist in the financial systems world wide .The cost of mobilization of savings  is too cumbersome  and the use of savings does not really  have value and very costly in every sector of the economy .In real sense , in modern societies , channels for their effective usage do not exist . channeling  savings and net national savings to where they are most needed at the right time , at the right place , at the mass and at the right price with the least  cost  and satisfactory convenience to necessarily equate the targeted desired level of growth projected  in an economy.

Micro financial  Management in the free market society

The movement of capital credit  and credit income through various grass root acts of exchanging goods and services profiting largely from disposable savings ,with the sole aim of grass root empowerment   and SMEs capacity building funds deployment for optimum informal sector performance can be regarded as Micro financial management .Though can be noted as  a branch of financial management having secured a foothold on its own given some appreciable disciplinary evolution over the last 30 or 40 years is finally charting  its own course with vital autonomy to enable it add more economic value to general economy.

Actually , microfinance is the origin of finance to say the fact ,  in the much same way in which  we enthuse that micro credit  is the origin  of the modern  credit. Likewise , we need observe that informal sector is the projector , the insulator  and cradle of  the formal sector but as human economy grew complicated , the harbinger was left behind and modern man regarded it as too naïve and  a fugitive even in its backyard; and by conniving with  its siblings betrayed its legacy  , this they did  in the much same way as they have regarded freedom a fugitive in our world today . Informal sector was left to rot and die if indeed it can rot and die .The reclassification in the modern times is sequel to change and growth in the finance technology of the age bringing it under the shadow of a new world of civilization .

Microfinance , if fully perfected academically , technically and practically is far more effective , advanced and broader than mainstream finance and should not be grouped under it in any way  whatsoever even though micro[grassroot/unbankable  finance ] is n’t much different from the word ‘finance’ but not  with the same level of expertise especially in developing countries with large informal sector economies .  The larger spectrum of world society  does not have access to it which indicates the study of finance theoretically and practically is still evolving and can only be matured  until microfinance  by usage and spread  has found its final footing  and bearing in the field of credit trade which must be discovered  and thus world economy can now be rebranded and reclassified to have grown from the level of western primitive finance and jungle finance textbook and moribund nature of microfinance into the broadest field of macro finance , thereby giving birth to macro financial system from the present wobbling and fumbling inhuman structure of financial system that Robert Kiyosaki popularly regarded as a large ponzi scheme scattered all over the world to the system  in which every one is represented .This inadequacy we may not know it and  ignore it , is the fundamental basis of world economic crisis .

Potage Golden templates  and its diverse types of macroeconomic and free market economy ’s models is to guide  in the transition from the present stage of  neoliberal age to the final stage (in which macro financial system is fully matured –that is to serve all) .Microfinance though gained renaissance in 1960-70s which originated finance but was denied glory and social status by existing social forces and betrayed by its own seed  through the noted arbitraging  , crumpling its integrity and dignity sunk  for millennia before the rediscovery by Muhammad Yunus , Grameen Bank and Accion in Latin America among others in the new waves of finance technology sweeping the globe. Unfortunately the credit trade arbitragers dominating world financial system were contented to award only face saving Nobel prize to a world hero  compared to Nobel price for economics despite the fact he had more even more than or could be rated in the same category like Adam Smith or Keynes .I really don t know why he had failed  to receive such attention . Being the father of unexplored microfinance macroeconomics ,  he is far more better than these fellows because his policy or technology  touches close  to 80 percent of world population if well exploited .Now that he had been unfairly removed from his position at Grameen did not speak well of the way an hero should be treated .Is that how to make relevant someone who had contributed to world peace than all of western finance and economic professors put together   ? To be candid , it is the greatest discovery in the field of finance and economics and the luminaries deserved noble prize for economics not once but even twice .The rebirth markedly opened a new chapter in finance and economics revolutions and a new dawn bringing finally to an end the lifelong denial by the mutineers  to save world economy from landmines that economic vampires had supplanted and unleashed on its well being for the entire stretch of human history  .

The way in which microfinance is being managed has a great strategic impact and redefining powers  to revamp the characters of our socio-economic system  and a revolutionary to affect its optimum performance in a way to transfer wealth through the disciplines of the market to the marginalized segment of humanity .This  aims at maximizing  the quality and quantity of economic freedom over all , restructuring where possible for the purpose of universal welfare .We shall have to evaluate existing customs and tradition out there from the study of financial institutions to the reflection of the new role and new development and set corporate governance rules for the budding micro financial institutions among us or new ones as is possible and practicable in real  world .

The  Study of Microfinance And Changing Technology Of Finance .

Therefore like finance and economics , Microfinance , micro financial management and micro financial economics and its ilk’s must be studied in virtually every tertiary institution of the world or relevant studies of finance modified so as to promote and broadens technical and professional expertise in the field .This is vital for a field that has more to offer  in real world ,has great potential in spreading real growth ,real wealth and real standard of living among citizenry of  the marginalized societies .We shall have to inquire more and improve ways in which all this dithering models  can impact heavily  on fundamental human rights  and individual empowerment enterprise lagging behind in mainstream finance markets  .

THE ROLE OF MICROFINANCE

Credit trade arbitraging 

Money and finance  are twin face of an economy –a basis of development in modern societies .Not many  knew an economy is subdivided into two based on this  dual purpose category  .This subdivision in the long run  gives birth to dual macroeconomics .This comprises of monetary and credit system .Redistributionism  believed since they play a different role but similar objectives facilitating economic development  , they should each be given their separate autonomy inasmuch as we have recognized their separate but complimentary role strictly for ease of quality discharge of their obligation .

Though money and finance are strategic twin  faces of an economy ,truly speaking they do not reason the same due to the nature of risk transaction involved .The modern societies have not come to term  with it and the least they can do is to virtually reform everything and how viable will they be? A monetary system and a credit  system should operate differently .But because almost every economic agents that are involved in the monetary system have also been caught in the web transaction of credit system buying and selling   debt to either  prosecute or bail out marginal project depending on timely investment decision   .Along the line , due to lack of effective model and poor perusal of change cycle,  this dual purpose or twin faces were complicated  together in modern society as the financial system even though have mingled for millennia .This was instrumental to unprecedented human prosperity and also tussled with  re-emergence of boom and burst cycles in an economy has proved otherwise .

Initially , the dual nature of an economy had long been recognized long before the merging bias by modern economists because credit and money grew slowly with the first civilization in whatever form they might be and the  first generation whose cradle arts and crafts  were instrumental to later development  .This changing motive was dictated by moral precedence of economists and policy habits later disputed by successive rationalist economists .The dual model purpose still today has long been neglected  .It is true that if we subject our financial system in to intensive study perhaps by public commissions seeking to ascertain  the quality in the discharge of their obligation ,we would however found them wanton with this original device. Economic crisis everywhere is a proof   .This requires not regulatory changes really per say since its abets inflation should be deemphasized , without a perusal of its effect on inflation nor does it require a reform really but systemic changes not reforms needed to put back the financial system on track.

The persistent modification in structure and the very objectives of this volume stresses  vital reform not needed but rather systemic changes motivated to reposition the financial system fairly well as the common asset of the public .We have come to believe that the merging bias might not be the problem really but insensitive pawn brokers and the  economic vampires who spill blood of the poor and constitute social threat to economic growth . The inherent inequality of wealth that Marxism admits is the fundamental erosion of social sanity is also the  very primogeniture and everlasting patrimony of business cycles .  Revamping the financial system models and modeling character is central to effective resolution of man ’s greatest economic challenges . Nothing can be compared to efficient financial system in which everyone is represented not one yoked by the repressionists avoiding a large scale operation and undue patronage of ponzi scheme popularly regarded as the financial system being run today is a task that must be done for the problem not to persist and heavily curtailed even beyond the confines of mainstream banking for the good of unsafe  posterity  wherein we are headed .

The primordial role of microfinance is simply to strangulate and possibly eradicate the credit trade arbitraging a worst form of development arbitraging ever noted bud nipping its syndrome and banish this arbitraging noted in modern societies .Those marginalized  from formal sector yoked with high indebtedness need not  have the same mentality as those who profited heavily from the ponzi scheme  .

                                    Merging Bias : Credit Trade Arbitraging ( CETARB)

The dual face of an economy however from the antiquity to the modern times basically shares this linkage .Credit income which is to draw from surplus[savings ]  mobilized is the super structural  linkage of the two faces but the system of national credit income account  (SONACA)  hardly exist and has not been considered even for once in the much same way in which we have recognized system of national  income account  .In America , Simon Kuznets  opened the way and gave us the latter .Who will bail us out of this knowledge theft haunting humanity and humiliating economists worldwide ? Hence all economic crisis can be resolved . This neglected system is the most important resource and the final arbiter to bridge inequality of wealth existing in human society  .That is the original intention of market redistribututionism  .

A sound financial system rests largely on both legs but not so with the whole [dual system]  jumbled together today  .It can not be ignored that both legs occupy the same level of importance to human body .An amputated financial system whose credit economy is strictly cut off to be dominated by inefficient banks can never avoid business cycles .The financial system worldwide is resting on only one pony trick and the capacity of an amputee is at best inadequate to support the level of market activity vital to ensure   desired growth of an economy  protruding from actual growth of a nation ..To boost desired growth not volatile  GDP growth and bridge against this arbitraging which ordinarily occurred as a result of lack of  effective dual macroeconomics model  , we must perfect the  system of national credit income account [SONACA] first and its GAP[GDP] co-efficients bridging Kuznets missing link [KML] , for a sound deregulated  financial system which deals with circular flows of fund in a redistribututionist economy  as opposed to non-redistributionist economy to be harnessed  to serve as the common property of all a sundry .The perfection would give us a robust credit economy and therefore the attainment of dual macroeconomic stability is possible to effectively counter business cycles for universal development not arbitraged development .

At the time the monetary and credit systems were lumped together the pawn brokers and the usurers who have taken over the domains of the fraudulent system  totally failed to accommodate the unbankables and marginal borrowers not because of lack of credit history  or something but due to  poor banking model whereas the marginalized segment that control the  population base which is the real wealth and not the capital base controlled by wealthy class which is the nominal wealth have refused largely to relinquish their hold having  profited largely from the arbitraging trauma that supplanted the system which is the fundamental causes of economic crisis in all of human antecedence .There is no alternative unless those excluded from mainstream white bowl of porridges to be eaten and consumed by all  be fairly accommodated .That both must be capitalists and owners and workers is the sole essence of a neomarxist era  .These porridges provided by nature must be consumed by all humanity not for capitalist prosperity but for  universal or equalitarian prosperity .

To restart free market economy all over again ,  which presently does not exist , we must go back to the basic and create capacity for the two legs of macroeconomic body  each with its own autonomy and ethonomy to walk effectively  and perfectly well and not like an amputee whose life dreams were long truncated by terrible landmines – Then it cannot only crawl but walk , stroll, then  jog and later run like a gazelle or greyhound ,slow down when it pleases and then speed up .Right now has not yet started to crawl let alone adjust to walk  and the entire flexibility isn’t just there and a major reason behind intermittent financial turbulence  that comes not once again every century , with the emergence of the great depression of the 1930s to occur  twice or thrice even in a decade .Rampant economic crisis  shall be a thing of history when every one else  eats from this bowl of porridge .

This remains the fundamental aim of neomarxist era to be maneuvered through the instrumentality of market redistributionism and microfinance .To redistribute wealth in this context , we can crush the arbitraging mendacity that separates indigent men from development market and the inequalities that causes inflation –a fundamental economic problem .This is a new dawn in the history of macroeconomic study and of mankind making the world a safer and a friendlier world to live .Here , we have come ,  the intention of the book is known , let us now begin from the scratch .

Next article - THE  NATURE  OF MONEY

FAFOWORA VS.MADUNANGUFAFOWORA VS. MADUNAGU: SEEKING FOR IDEOLOGICAL FREEDOM

In reply of postscript of May 26 written by Dapo Fafowora in The Nation campaigning for the adoption of market neoliberalism

This axiom is undisputed for all time :that freedom is the salvation of man under sun and the commonwealth and godfather of all social progress and human civilization is the ideological freedom .It cannot be so successful to achieve its desired ends unless intellectual freedom is leveraged to transplant it from the nursery and preserve it into the main field .When they mature culture is reborn and refined which is the mother earth of all progress and the foundation of the universe .How so great if we adore them and we shall preserve our civilization for all time or launch imprecation that may take eternity to cure when abhorred. It is the greatest challenge in mortal history-indeed it is the greatest battlefield of freedom –author.

 It is imperative to note that a society or a nation evolves based on the existing capacity of her economy and the available competence and core competence respectively needed to mobilize mass development cannot exceed this capacity rigidly motivated over time by wiles of nature and human instinct .

The development of human capacity , mainly human capital and human resources using these changing caprices predetermines the extent and the ratio of capital development that can be mustered over the long haul .Development therefore , no matter how small or big cannot go beyond the pedigree of social capacity at a time .

 However , inasmuch as it is pivotal to mass development , without development ideology or ideological freedom , the uniqueness and the quality of capital development which is the totality of mass development at a time cannot also be sustained over the long run . In stead of long term sustainable mass development , or capital development , capital underdevelopment roosted by increasing development mortality had become a lasting patrimony in the developing territories .

In one of my previous posted articles ‘the concept of capacity building and economic development ’ l categorically shed light and appraisal on the mobilisable proportion and importance of capacity building and unrivalled influence on not just economic development but sustainable economic development and the ire effect and imprecation of brain drain over Africa .

 Similarly , in my two books ‘Neomarxism : How to conquer world Poverty ’slated for publication in America and especially its African version ‘World Development Ideology and the Age of Microfinance ’(note:ebook version available } I also shed light on the effect of ideological subserviency over Africa ,diagnosing and proffering solutions to world wide economic crisis while using Africa as a case study , to nail the poser once and for all .

 I also believed this is the first time in history in which development system is proposed for each territory of the world based on prevailing local macroeconomic climate .In my successive studies , even it is plainer to a layman or casual observer that the problem of Africa today or most developing territories is lack of ideological freedom .In these researches ,I highlighted the rise and fall of African civilizations and successive ones .

Today , after the fall , no attempt had been made and accumulated complacency [bibliomania sis ] encouraged the latter triumph of slave trade , the outburst of successive neocolonialism and relentless blind patronage of modern neoliberalism . No development ideology, nothing! Why? Even where we have some philosophers and economists or some good thinkers coming up making a giant stride like south western Marxism popularized by great Awo, they seem to be basically pro-west like Edwin Madunagu or a Neoliberal advocates like Soludo, Sule Lamido or Dapo Fafowora .

It is certainly clear that the gain of erstwhile banking reforms had be come moribund and effect unsustainable. Even the newly rescued banks according to AMCON will take 10trillion naira to be liquidated rather than 1.5trillion naira needed for recapitalization .The banking system is in a colossal mess. The economists and the policymakers are the major bane and bone of contention .This ilk’s hardly think out of the box .No one thinks clearly nor get rid of this bias .

 To liberate African minds from the yoke of western ideological trap had become an arduous task .Even when their scientists and economists have been trying hard to relinquish and jettison past moribund theories which led to previous boom and burst mainly from the great depression of the 1930s to the past meltdown, our so called --African avangarde are still stuck in between , eating the excreta of dejected western moribund theories and proffering them as solutions to deter our nightmare . The worst part of this mess is that even a slight modification of these theories had been hard to come by.

The best we had was southern Marxism and effect not sustainable with the successive generation .Madunagu is an unrepentant Marxist .I have known him for long as media incendiary probably more than a decade now when I was still a vendor , before taken on journalism and writing as next target ,though we never met . A friend of mine was a core aficionado and is still very fond of him .He had so many followers like this guy and bequeathed nothing but trash to them .This guy hardly believed there were other intellectuals in the country that were far better than him . HE USUALLY CALLED HIM FATHER –‘ baba agba’ in Yoruba meaning somebody unbeatable and a leader in the field . All attempts to convince him he was no brainier sounded like the hoot of the raspberry .Fortunately , he is a scholar of repute and have strong sense of history .

Anyway , we can not take that from him .But my worry is that he would have been very good original luminary if he had challenged Marx AND contributed immensely to expand or refine Marxism in this country, besides being good historian because he is the nation’s no.1 Marxist and knows the terrain very well in and out .

THE FALL OF SOVIET UNION
 It is particularly interesting to note that the propagation of ideology must be preceded and succeeded by a good sense of intellectual and ideological freedom .The crash of Soviet Union came as a result of lack of intellectual freedom for the people of the old Bolsheviks .

 Hence , people were alienated from social ,political and economic freedom reserved only for the elite class who enjoyed the boon of ideological freedom .With the emergence of Stalinism , Marxism was heartlessly raped for good three decades and capital development was attained at the risk of intellectual freedom .It is the greatest empiricism in modern times as far as dispersal of ideological freedom is concerned .That in a society where ideological freedom is ensured , intellectual freedom sown over all citizens must be allowed to roost and distribute the gain of great charters of liberty over all .This was experienced by the Anglo-American or western Europe beginning from the Renaissance era and tirelessly keep mustering its steam for a good five centuries persistently clining even in the post-industrial age . We can imagine the kind of challenge a society without ideological freedom is facing talk less of an embedded disability potential entrenched in a socioeconomic system via the distribution of ideological freedom over all .

That is the ideology must be absorbed and fully imbibed over all irrespective of demographical differences prior to evolution of capital development so as to sustain ideological freedom –this is intellectual freedom .If the framework is abused , mass development could be strangulated which requires muses from the people for its success

.This remains a tall creed in the great charter of liberty .That a society to be liberated through ideological freedom must be mandated to also imbibe the fruits of intellectual freedom prior to explosion of capital development .This defines the essence of development cycle in a cameo which should be repeated by every successive generation so as to maintain and sustain growing antecedence of human civilization . Inability to adhere to this creed , better explains why democracy ,neoliberalism , nationalism , Marxism and the gains of economic freedom had failed woefully to materialize or yield result in most developing societies . 

The great soviet society did attain this up to a time and capital development attained was not sustained with the next generation due to abuse of intellectual freedom .70 YEARS LATER led to its fall. It is necessary to observe that local tradition usually grows or patronizes new ideology use so slowly .But when intellectual freedom is entrenched in human tradition via psychological behaviour , ideological freedom can grow so quickly with mass development and then capital development nurtured as cycle graduates and flow sustainable .

NIGERIA IS A FERTILE GROUND for ideological freedom especially in the south where mass enlightenment is a bit higher-a proof that intellectual freedom can be cultivated as the sole insulator of ideological freedom being the baseliners in the great charters of liberty . WESTERN NEOLIBERALISM : A SINKING SAND Madunagu’s unbridled and blind support for Marxism would not help Nigeria or developing countries in any way without rethinking Marxism and refining Marx to gain required aptitude and eligible standard for adoption .

That is an imperial fact .On May 26 ,2011 , I read ‘Searching for new Economic Perspectives ’a post script written in The Nation by Dapo Fafowora—a veteran essayist and young Nigerian mind making waves in this arena which informed the kernel of this article. I noted with rapture and bamboozle his erudition and perusal which exhumes the unworkable antecedence of socialism in most part of the world where it was adopted and how it was overtaken by Neoliberalism .He noted China , India and entire BRIC countries forming this nucleus and thus concluded that the model should be adopted for the Nigerian economy while declaring null and void the efficacy of socialist model .In my new book [African version ] .I call this mentality and prejudice ‘Biblio Myopia’ not common to developing countries alone .Mentally enslaved people hardly think out of this Pandora box of repression and especially we-- blacks are confronted with this problem as the most culturally subservient race .This stigma continues to confront us .

These men and we have similar features -- ideologically famished minds. Unfortunately , a Nigerian was calling for the adoption of the same model that led to great depression and the meltdown that thoroughly thrashed 5 out of 7 American investment banks into dungeon of obscurity .AIG , Merrill lynch , Bears Stearns , Lehman brothers and U.S. mortgage banks --Fannie Mae etc.all fell without remedy IN THE FOURTH QUARTER OF 2008 .A period in which MILLIONS OF Americans were bankrupt and homeless and countless marriages crumbled .

 When the sub prime crisis took the world by storm in 2007 , not many knew it would lead to credit crunch of this magnitude that detonated the toxicity in 2008 .On September 15, 2008 ,Lehman crashed with the largest bankruptcy filings in U.S. history .Then Merrill Lynch ,the largest stockbrokerage company in the United States also went bankrupt and was bought by Bank of America .The same banksters behind the economic holocaust and the new depression with no financial education even though claimed otherwise , are still being looked upon , teaching people everywhere , proffering solution to the crisis they perpetrated .AIG ,Fannie Mae and Freddie Mac are still mired in depression , in serious trouble and haunted by the crisis .

Today , Warren Buffet a notorious criminal and the world leading bankster, running the world largest Ponzi scheme empire is still being courted by government to help proffer solution to the nagging crisis mustered by their empire .Seeking help from a bankster who helped midwives the crisis is unfair and who sold the toxic mortgages known as the derivatives to government , pension funds and investors around the world , after rating the same sub prime mortgages AAA through Moody -an agency he controls [like Wells Fargo , General Electric , American Express and Gold man Sachs ] can be regarded as a fraud .According Robert Kiyosaki in the new book –Unfair Advantage , he regarded selling sub prime debt packaged as AAA prime debt a ‘fraud ’.Yet his companies have received billions of dollars worth of bail out fund from government after the crash .

 Is it not unjust that somebody behind the world largest Ponzi scheme empire is still being regarded as the smartest investor in the world ? Millions of homes are now under water , worth less than the mortgages .Retirement funds in America is short of 6.6 trillion dollars according to Kiyosaki and Boston college report 2010.These looses would leave Americans unsafe after retirement .In just one month alone August 2010 , approximately 108 billion dollars worth of defined benefit pension plan assets of the top 100 biggest corporations recorded monumental loses .

This means millions of Americans who contributed to this pool are in serious trouble of unsafe retirement and may not receive the guaranteed paycheck for life .Besides , the university of California retirement system –Calsters that was unfunded by half a trillion and engaged in risky investment , the Californian government pension agency ,Calpers –a public retirement pension system that accounts for 1.6million public employees ’health and pension benefits was also in serious trouble having lost more money than all others combined.

 The spill –over effect of the successive financial contagion even in the immediate post –meltdown era has not yet abated .What a rascal we would be if it is adopted! Fafowora himself in the post script concluded that – ‘‘currently , three European countries-Greece , Portugal and Ireland have asked the EU for financial bail out to avoid falling into economic depression .The British coalition government has introduced savage cuts in public expenditure to reduce its huge budget deficits ’’ I believe these are short lived measures and inadequate options .Madunagu was right to interrogate the quality of Neoliberal free market , he proposed to liberate the nation from economic quagmire .

 Then I burst to laughter a bit when he said ‘‘ So far Nigeria has been able to ward off a depression ’’I can ’t understand Fafowora linking it to a surge in unreliable oil income .Are we not in depression already or now in a country in which 15 million graduates are not employed and unemployable and 90 percent of the people are below poverty if we use UNDP poverty profile and not world bank poverty line concept .Great trouble is imminent if we adopt western neoliberalism hook line and sinker .Although , I quite disagree with Madunagu as a remorseless Marxism in most cases , but he was right to lampoon Fafowora ’s ignoble doses ‘with a populist passion ’ or any such ‘was bound to fail ’.

Truly speaking , it was a total failure in almost all developing countries .And mind you , market socialism not of the type preached by Madunagu had always been the savior .During A. Lincoln era besides the civil war [1861-65] James Garfield ’s 100 days in office and Kennedy ’s 1,000 days in the white house , the attempted introduction of U .S . green backs during the period to the era of Roosevelti an New deal that ended the depression at the end of world war 11 but disapproved and branded as national socialism by the supreme court in addition to Clintonian boom of the 90s –the golden age of U.S. economy
An era that created more than 22 million jobs and over 500billion dollars as surplus piled up in the treasury cannot be whisked away in a jiffy . The Marshall plan introduced during the end of the second world war to liberate Europeans from the miseries of the war cannot be forgotten but they blinkly unearthed some of its hidden potential

They same banksters behind the land speculative crisis of the 1830s were behind the great depression and who also profited immensely from the finance of world wars 1 & 2 helped induced the meltdown .During the depression, thirteen thousand banks crashed in America prior to establishment of FDIC in 1933 and from the end of the second world war till the 70s inflation not employment blanketed the nation. At the root of this problem ,the Fed .stood as the major catalyst of American economic crisis .

 It would be surprising to note that American government did not have nor own a central bank because the Fed .does not belong to it .The private Wall street bankers owned the institution established by Woodrow Wilson in 1914.Here is an institutions that was created in violation of article 1 section 8 of the constitution which restricts delegation of the right and power to create money and regulate its value beyond the congress or o other body .Despite the fact in 1935 supreme court ruled against delegating this power to another authority , it acted contrary instead against the law .

By the time the President eye opened to the ponzi scheme , it was too late .A full trained Professor of Law-a senior intellect was deceived to defraud his country .The Federal Reserve Act gives private bankers the American sovereign powers and the most important of all powers .According to Stephen Lendman in the ‘Grand Theft America :The untold story Of global economic crisis’, is the one most of all that governments hardly relinquish which is the power to print money and control its supply .This is the greatest calamity ever bequeathed to ADAM Smith philosophy of free market .Not only control its supply but also determine its value or price its scarcity mainly through federal fund rate manipulation and through changes in the monetary policy .

It is graphically absurd to charge government interest on its own money and later returned the same flat with no interest to owner ,creating money out of nothing and mortgaging the future of generation yet unborn . When on June 4 , 1963 , with the Kennedy issuance of the executive order [EO] 11110 , it gave the authority to the President to issue currency, ordering the treasury to print U.S.treasury notes replacing the Fed . notes and attempted a process to let government owns its money and resided with the power to print money and not Fed. banksters .

Several months later he was killed and Lyndon Johnson took over government to reestablish the Ponzi scheme to the glory of the Banksters and continue with the statusquo of fraudulent monetary policy shift , contracting and expanding interest with no government regulation and oversight control while the taxpayer foot the bill .Does it make sense to create money out of nothing transferring wealth to the banksters from the people ? When Nixon came , in August ,1971 closed and ended the gold window which once backed local currency , suspended its convertibility into metal beginning a new dawn contrary to Breton Wood core provision.

 Few greedy men had mortgaged the posterity as faith in the dollars declined on the altar of profligate policies and unbridled corruption . According to Lend man half a century later after the great Jefferson statement ,Lincoln narrated his vision : I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country ….corporations including bankers have been enthroned and an era of corruption in high places will follow , and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the republic is destroyed .

’’The Fed today is the world largest Ponzi scheme . It is the most fraudulent central bank in the world controlled by greedy banksters who were behind the killings of three American presidents for trying create one .Economist Michael Hudson and critics Stephen Lend man in their critics of meltdown reconstruction efforts had regarded EESA ‘cash for trash ’as a give away and not bail out .It indicates simply transfer of public wealth to the few banksters and insiders –a sort of financial coup d’etat and the largest and the most inequitable kind since the 19th century. That is why I have contended that inequality of wealth leading to reguflation causes inflation.

.The critics lamented this inequality and were angry at the amount of deceit and relentless fraud going on in the system .Having dished out junk of all sorts –structured finance or SIVs ,credit default swap , securitized mortgages , student loans , collateralized debt obligations such as car loans , credit and corporate debt , special purpose vehicles [SPVs] repackaged arcane and commercial papers and more later resorted to costly hedging ,when the bubble burst to socializing losses at the expense of hapless taxpayers .

 This enriched the fraudsters to cripple the economy .A system that rewarded criminals and crashed industrial capitalism replacing it with the kleptocrats .Little wonder Jefferson regarded the banking institutions as far ‘more dangerous to our liberty than our standing armies . Already , they have raised up a money aristocracy that has set government at a defiance. ’He further noted : the issuing power should be taken from the banks and restored to the people to whom it properly belongs ’.

There is a great deal of secrecy going on in the Wall Street . Some have blamed the universal banking model as the real culprit but indeed not really . In the banking crisis of 1930s the reform advocates during the period blamed losses on the reckless behaviour of securities’ affiliates of commercial banks .The universal banking model which entertains full gamut of both retail and wholesale ends of the chains offering services across diverse sectors and regions was scrapped with the emergence of Glass Steagall Act of 1933 repealed in 1999 which stipulated and enforced legal separation of commercial banking and investment banking .

But during the period subsequent perod have shown that those institutions without a security arms had a much greater threat and tendency to fail .Whether both studies are good and reliable or not is a matter of intellectual debates with the emergence of great meltdown .It is inadequate to link the problem really to lax lending practices , poor savings , poor credit rating , credit crunch and poor regulation .This happens everywhere .

These are secondary inconsequential factors . This indicates that the system is the problem and inadequacy entrenched in the neoliberal free market would keep crisis reappearing unless new model is evolved .How can few private banksters and greedy individuals in the country mortgaged the right to central banking of a sovereign and most powerful nation like America to their own parochial ends ? What they did not know is that inflation and recession are twin arms of inequality of wealth.

What a calamity will we caused our nation if adopted ! .About 13,000 banks crashed during the depression and was speculated that in a decade about half or more of 9,000 banks would soon go if the present model persists. We should not be a rascal to adopt this moribund theories here in Nigeria. Not many knew that even before the laws of the market were discovered by Adams Smith ,some scope of communism and extensive practice of unrefined market socialism not really the sort preached by utopian socialism was endorsed in Europe .

A long barren medieval abetted this practice . Moreover, this lasted from the late medieval for instance for good 800 years in France even after its revolution of 1789 [ref.Robert Heilbroner: Economic Revolution, pg.137,shaping of western civilization explains the mood of the era ] .The Renaissance movement that started in Italy became the sole catalyst of modern free market which began in Britain and lucre was the sole motivator .The trenches of disillusionment he noted with neoliberalism in the 70s and 80s and its total failure was due to ongoing ideological rivalry of the period or so called cold war a period in which it was reborn and resurrected by P.M. Thatcher in G. Britain and President R.Reagan in America . They adopted the philosophy of Adams Smith followers-Fredrick Von Hayek and Prof .Milton Friedman .When Soviet union fell , democracy and political freedom [ not economic freedom ] swept the world like tidal wave –a major reason behind its growing patronage and increasing world poverty prevalence 

AS UNFINISHED REVOLUTION MARXISM SUFFERS DAMAGE OF IDEOLOGICAL DISCIPLESHIP

But the problem here is that Karl Marx had no ideological disciples like Biblical Jesus , Prophet Muhammad or like Adam Smith ,whether in support or in opposition of the baseliner model .Smith had masters before him . Thomas Mum ’s mercantilism came before him and free market existed before him fully entrenched in human tradition left unexplored We also have people like John Law and the share trading of Mississippi company .When he came he reorganized this field of economics and had a large followers who succeeded him consistently polishing his thoughts .For instance , from the classical economics to neoclassical economics that produced the like J.B. Says among others to people like Joseph Schumpeter or historical giants like Milton Friedman ’s monetarism and Hayek , the world had become a better place to live ushering in unprecedented prosperity whose views were heavily adopted and respected around the world .Though Nobel laureates in economics are awarded on annual basis contributing their quota , broadening the study , many more challenges and hurdles however still remain to be mounted .--- The Keynesians and the era of macroeconomics were also influenced by classical economics ’s theory of larger market , mass production , division of lab our , laissez faire etc. [ref.later study on macroeconomics ] .

 Whereas Marxism suffers drought in this regard .Besides Engel , I barely knew or read about a prominent philosopher or many of such expanding this field of thoughts --Marxist economics .Practically none . Yet, it is the sole alternative study and the most reliable to spread wealth evenly ,or near evenly to ensure universal prosperity and banish poverty if well refined . The utopian socialists before Marx or prior to 1848 European revolution were prominent historical figures who mentored and indirectly influenced Marxism and Bismarckian nationalism, drawing inspiration from the failure of the revolution .

 I believe that lack of disciples in the development of this field and the nature of stiff resistance meted out to opposing schools especially during Stalin era strictly accounted for the fall of old Soviet . Several countries that adopted it like Cuba or China couldn’t survive solely with it. And even Cuba would cave in sooner or later to free market deceit like China because lucre is a deceiver .The reason is simple : Marxism was regarded as ‘ unfinished revolution ’because many details and grievances were left unexplained and unsettled .Several principles that should form the nucleus of Marxist Scriptures guiding the transition of social institutions towards the communist homeland were not expatiated and clarified . In ‘Adam Ulam: The Unfinished Revolution ’Ulam noted ‘‘How different will the better world of socialism be from the old one of capitalism? Marx and Engel have notoriously little to say about the wonderful new world their criticism and theories imply ’’ 

So much references were made in regard to the nature of capitalism compared to skimpy evidence of socialism .The Marxist world of Western Europe in 1880 fell mainly to Engel but his view was not that vastly different from his great companion .When he died in 1895, Ulam concluded ‘‘the canon of Marxism was frozen and vital questions of socialist role in parliamentarianism of the nature of transition from capitalism and of socialism itself remained to be fought over by revisionists and orthodox Marxists ’’As noted by an American ‘ain’t no disciple gat no appeal ’. I want to believe the anticlericals that form the nucleus of the reformation of the 16th century by the nature of their roles were socialists The Martin Luther king Jnr.Malcolm X. Rosa Parks among others who redefined American values , racial equality and the course of black history were no less socialists in the modern sense .

Little wonder, the permission obtained by Edgar Hoover from the U.S.attorney general of the period to ransack and scrutinize King’s private life found out shockingly he was no communist but indeed his action showed otherwise .If there were disciples shortly after Marx and Engel to polish this ideology , it could have been a more powerful force in mortal history .The role of ideological disciples [ as opposed to mere followers] is to maintain and sustain the tempo vital in the distribution of ideological freedom transplanted by early golden age thinkers in the field .Darwin also had great followers like many of the world great religion founders. 

DARWIN ’s LONG STANDING HISTORICAL COLOSSUS

Charles Darwin had a good history to draw from .According to Robert Wright -the author of Moral Animal , he noted after the Origin Of Man ,a great revolution began with the emergence of an increasing body of natural researches beginning from historians like John C.Greene and intellectual reactionaries such as William Hamilton ,George Williams ,Robert Trivers and John Maynard Smith encouraged the deepening that occurred thereafter in the study of evolution .

This broadened the instinct of evolutionary biologists opening the long withheld mysteries behind the social behaviour of animals and man .Wright concluded when he noted the existing defects that two epoch making books such as E.O.Wilson’s Sociobiology ,(1975) and Richard Dawkins (1976)-The Self fish Gene’ which spoke relatively little about the influence of human behaviour no doubt contributed their quota to increasing global appeal of Darwinism . The study of Darwinism or evolution is by no means peculiar to Darwin .Charles Lyell is the pioneer in this field had already advanced the study prior to or as at the time that Darwin started his thesis drafting 35 pages and expanded it to 230 pages later. While Newton discovered the laws of nature and dominated the 17th century ,Darwinist thesis on the evolution of man also competed during the period .Jean de Lamark (1744-1829) had earlier challenged the immutable fixity of species envisioning a comprehensive evolution from worm to man using the theory of acquired characteristics to explain the evolutionary process .Karl Marx also applied this to social sciences that social institutions were constantly in the process of change .

The thesis started from 1840s upward . In his ‘Progress ,its Law and Cause ’Herbert Spencer applied this to all phenomena. Whether commerce , Production , social development , language ,science ,literature and art all undergo simple evolution. This I described as ‘development cycles’ which rests largely on the institution of freedom .The social Darwinist who adopted this philosophy utilized its belief to justify the golden age of colonial expansion and Darwinism was enforced to justify imperialism of weaker race [i.e. blacks] .That colonies were instrumental to the survival of great powers .The philosophy of the aggressors-Marxists , Bismarckian nationalists and social Darwinists may not serve well Africa because it was meant to keep us as a perennially defeated race . The resistance and loggerheads between Darwinists and creationists till date serves to broaden the horizon and study of natural selection spreading intellectual freedom beyond initial scope that could have moved even Darwin in his grave today .

 The successive development created so many schools of thoughts and later refined their world view such as the belief of social Darwinists .On the other hand , in the Greek society , Several branches of philosophy such as Epicure , Stoicism and existentialism were evolved .But by the nature of their evolution had finished their assignment booking a place of pride I n the world civilization ’s history - It is necessary for ideology itself to evolve like every field of human study , it has promoted .This eradicates the irregularities and shortcomings involved in the original context for the benefit of universal welfare . 

THE SOCIALIST MOVEMENT VS. THE SOCIALIST ENTERPRISE. 

The socialist movement debuted as an intellectual and ideological institution in the 19th century . This created a means to counter the problems posed by rising tide of industrialism and launch protest against liberalism .Socialism as a word and ideology first appeared in 1833 and 1839 respectively .It simply re-emphasized the need to return to pre-liberal traditional society that once existed prior to explosion of industrial revolution .They were concerned with the social challenges created by industrial evils and the inherent trespass on right of man .That a society exists for the benefit of all its members as advocated in the middle ages ..They opposed the free market powers of the individual bourgeoisies which they believed had prompted social misery of industrial workers. They advocated social cooperation ,state capitalism and planned economy . Even though they could not cope they represent a rising conscience against the evils of capitalism .

 In France , count of Saint Simons (1760-1825)a bold aristocrat held sway who also fought alongside the patriots during the American war was the first to realize this challenge. Rene Joseph Proudhon (1809-1865) a self professed anarchist of French peasant stock also consolidated socialist influence in France .He was hostile to state and opposed private property .Robert Owen (1771-1878),a successful textile industrialist believe in good education and a good working environment would lead to human progress .Simon’s most vocal critics –Charles Fourier distrusted all centrally planned authorities and believe large bureaucracy would certainly lead to anarchy .Nigeria should learn from this .Whereas Sismondi a swiss economist entertained a popular stance believed all class struggle occurred as a result of world scarcity of goods .He could have been a great Marxist economist had he being that popular with that viewpoint a world model like Smith. 

My view on Neomarxism is a bit similar to this ends. He believed that with the new means of mechanical production an increasing floodgate of goods if left unchecked would lead to class war far more incomparable to previous wars. In an attempt to gain market share over temporary market rivals , increased competition induced by increase marketing , would create lower wages and increase working hours which would in turn lead to economic crisis and internecine wars between capitalists and further ballooning artificial poverty . Isaiah Berlin commenting in ‘Isaiah Berlin : The Utopian Socialism ’noted ‘‘Fourier ’s indictment is the prototype of all later attacks on the doctrine of unchecked laissez faire ,of the great denunciations of Marx , and Carlyle , of Daumier ’s cartoons and Buchner’s plays ,no less than a communist ,fascist and Christian protests against the substitution of new forms of privilege for old and against the enslavement of the individual by the very machinery designed to set him free. ’’ When Charles X was expelled during the revolution of 1830s bringing the Louis Philippe to the throne of France ,socialism gained impetus once more reviving literary revolution .

A tireless succession of books and media freedom attacked social evils of the day and proliferated remedies .The Lamar tine or Cremieux softly liberal proposals ,and the developed state capitalist model expounded by Louis Blanc and semi-radicalist demand of Ledru Rollin or Marast .Blanqui and Barbes also proposed drastic socialist policy using their journal L’homme Libre endorsing abolition of private property or violent eruptions . Apart from Pecquer , Blanc and Dezami , other scholars , who followed closely either popularized ,altered and diluted their original thoughts and doctrines. With his Christian socialist ‘words of a believer ’Lamais --a catholic priest in 1834 , published his revolutionary ideas .Also In 1845 , the ‘Bible of Freedom’ appeared and was circulated by Abbe constant . Fourier ’ s disciple –Consider ant also gained popular appeal when he supported and declared in favor of the abolition of private property .

They lasted for a quite a while and later evanesced as a movement especially the Saint Simonists .Unfortunately, they later became the same capitalists,--railway magnates , rentiers whom they had lived for all time to preach against .The previous gains of ideological freedom nosedived in to obscurity as intellectual freedom developed volatility. Sharing and suffering the same fate as the Marxists .Can you imagine ? That is the power of lucre . They lived only to fulfill at least one out of their master ’s prophecy . Communist settlement was funded by the fourierists in America like the Oneida community that attracted popular American thinkers. They could not sustain the tempo and pressure in the defence of what they believed like the Capitalists .Time pressure was against them –an advantage that the capitalists had exploited to the full altering the forms of the society as they deem fit .The capitalists and the merchants after the overthrown of feudal lords were able to exploit not only the gains of intellectual freedom but its proven merit of better standard of living derived from the fruit of technology , tested and applied to advance the course of capitalist prosperity .The socialists who promised universal prosperity-a far better alternative have fallen far behind .Most especially , the socialists have been seduced by lucre, and according to V.Lenin , have sold themselves to the capitalists think not of the future of their children or grandchildren but they themselves. 

MARXIST SOCIALISTS VS .UTOPIAN SOCIALISTS

We know that the original pre-Marx Socialists and original pre-Bismarckian nationalists were conciliatory , peaceful ,evolutionary , pacifist and tolerant in the great liberal tradition .Robert Owen , Fourier and the rest were derogatorily regarded as utopian by Marxist socialists .They were so labeled because in binging about peaceful change without class war such as the Scandinavian socialist reforms .That they need not sacrifice civil liberties to get the job done . The pre bismarckian nationalists like Herder [1744-1803] in Germany and Mazini [1805-1872] prominent in Italy .And like their historical brethren failed woefully in the revolution of 1848 .

This failure erupted the iron and blood nationalism preached later by Bismarckian and Marxist socialists ,opening a new vista in modern history .The so called Machiavellian was nothing new but not until 1870s was it systematized effectively and never before the age of Stalin and Hitler was it practiced with such ferocity and coordination never seen before in mortal history .The iron and blood nationalism that followed after 1870s culminated in Nazi Germany and fascist Italy and also led to Soviet Russia advancing iron curtain from Europe to Asia. It instigated like social Darwinists both world wars and global crisis .In the great words of Cavour who accomplished Italian revolution ‘‘if we did to ourselves what we do to our country what a rascal would we be ’’ 

SOLUTION TO WORLD ECONOMIC CRISIS : A NEW DAWN

 Rethinking Marx and reforming Marx is the way forwards for a nation ready to develop or in love with this revolutionary idea .That is why I have taken my time to advance neomarxist free market economy , dual or meta-macroeconomics and neomarxism respectively for Nigeria .I briefly appraised them in my books. I wonder what the fate of Nigeria would be if according to Madunagu, it is the BEST option for Nigeria .I believe we are in Neomarxist Era - not neoliberal era and the world economy if adopted will swing from neomarxism to post Marxism as humanity transit from modern age to golden age civilization . The ideals of neoliberal as may be relevant and neomarxism can be merged to create neomarxist free market as sole alternative to conquer world poverty .There is no alternative for both developed and developing countries .This I believed if adopted , Nigeria can grow quickly and we can do in 5 years what could have taken 10-15years to achieve under normal circumstances . We can begin with this platform and then leveraged subsequent unique models as entrenched in this package to usher in universal prosperity for nations that adopted it .Nigeria ’s problem today is lack of development ideology and not corruption or mismanagement as such which is secondary factor .We are in new dawn we must change our mentality and prepare for the adoption .

 BLOGER’S DIRECTION

Not many know that the essence of this blog is to advance the concept and practice of microfinance which is the centerpiece of neomarxist free market economy and neomarxism.It basically deals with strategic impact of the microfinance industry worldwide especially Africa which is to be by content , 60-70 percent for microfinance and 30-40 percent for general economic analysis .Though I posted the African Dilemma –a political essays , this original direction will remain .

It is sometimes expedient for consideration of general economic analysis to be exploited to better align them to dire need of microfinance in an economy .It is by this initiatives that we can weigh its utmost important and optimal effect in economic planning and nation building .References and exposition of macroeconomic models are also needed to compare with the new solution being proffered. It places more emphasis on the fact that foibles in the mainstream formal financial system cannot be resolved without reference to common men to be served by microfinance being the economy of the poor .

Our special reports , interviews and related articles dwell on this axiom We must assess the role of microfinance in poverty alleviation , grass root productivity , microindustrialisation and self empowerment and how relevant are the effect of government policies to their yearnings and plight .Microfinance through its unique free market model would be the beginning of a new dawn in mortal history and the battle to eradicate mass poverty is more than real with this micro financial model. We proffer solution therefore to world macroeconomic problems which I believe cannot be solved unless micro financial model is adopted .