AFRICAN DILLEMMA : DEMOCRATIC CRISIS IN COTE D’VOIRE
Truth and Time are the world greatest warlords and the final arbiter under sun—writer—Ibikunle Laniyan .
In the last previous articles we observed the important of grass root development and capacity building persistently maintaining the pace .Empowering people is the only antidote to transform the society and a means for people to fully control the socioeconomic system from social , economic to political issues .In this edition we perused the current revolution in the African political system beginning with Ivorian political crisis .
We do not yet know why the state of Africa has persistently been swung into cataclysm and inundated with protracted crisis and fratricidal wars for a very long time until now . .Indeed it cannot be disputed that this is a carry over trade from the structural distortion of the colonial era which had become her legacies and trade mark and quota contribution to the world development history contrary to transcendental technological development being successfully experimented in the emerging market. Perhaps someday what we do know could become the final arbiter .Electoral quagmire in cote d’voire in recent times had opened a new vista ,infact a ridiculous and sarcastic chapter in the study of modern African politics and the questionable integrity embedded in the make believe effectiveness of alien political system imported into Africa under external aggression had become food for thoughts super-imposed through political duress to the chagrin of the helpless masses who earnestly yearned for development vital to liberate them from the pawn of mass poverty inflicted by greedy leadership ,western traitors and unworkable system .
However given the recrudescence of this dilemma hanging at a prejudiced crossroad , the girth surrounding the study and criticism of African politics and precisely the muddy waters of the Ivorian politics had assumed an erroneous posture and truthful brigandage ,calling for a redress and a relief from psychological trauma wrought by information mis-therapy of an average African who by nature is the most misinformed and most uninformed homosapien under sun .Various media articles and hypercritical reports published over time had failed to categorically diagnose and unravel the root of this problem and the muddy waters ravaging Ivorian politics not even with tolerance adjudged beyond a reasonable doubt to provide a soft landing . Simply put they were far far off the mark or probably deliberately ignored omitted from various specious arguments in the local dailies .In most cases were in support of Alhassane Quatara who claimed the majority some 54 % in the fiercely contested polls and new western bride who perhaps some day could soon be forced to face the same undertaker and fires and brimstone like his embattled opponent and be hung into obscurity and edge of precipice .A recurrent dirty politics that perpetrates itself in Africa AND A FOOLPROOF that the west has no permanent enemy nor permanent friend .
Ordinarily , we need to get down to the brass tacks and put the bridle on before we can build bridges and avert discord apple that western aggressors had supplanted even in the mere exposition of black political history being their major device for abuse and bruises in which they deny their prey or victims any chance of psychological freedom and perpetrate socioeconomiasis [the incurable ailment of capital under-development and mass poverty ].The question is : Who is Alhasane Quatara ? Where did he come from ? How did he made forays into Ivorian politics ? We might need to go into recorded history a bit to review and exhume the beauty of antecedence in the troubled country .with a view to nail the poser once and for all .African media we contended is full of misinformation unlike the rest of the world but somewhat at a pathetic state .which is the basis of underdevelopment.
According to the book ‘Revive Africa ’ part one [pg.96—97] written by a brother of mine a musician and a writer Gbolahan Laniyan specifically nailed the poser .Alhassane Quattara was given Ivorian citizenship under questionable circumstances by the late Ivorian dictator and professionally hailed from Senegal .He was a staunch supporter of Hophouet boigny ’s policy of assimilation and frenchification –an assimilee indigene which ‘the founding fathers and president Hophouet Boigny believed in ’ Both Leopold Sendor Senghor and Boigny were given French citizenship under this cloud of policy initiated in Paris .The rise of Boigny after independence led to the adoption of similar colonial policy through which Quattara among other eight [8] identified obscure citizens mainly from west African countries were given controversial citizens and appointed these aliens as ministers in his government .
I s that rational ? can such a thing happens in Nigeria ? Anyway this move reciprocated what France EARLIER DIDTO HIM .That sounds truly unfair and the beginning of the incursion and forays of domestic colonial lords in the country and the basis of today ’s hurly burly .Alhassane Quatara of Senegal ; Muhammed Diawara of Mali ; Ibrahim Savadogo of Burkina Faso ;.and Abdullahi Thiam a Senegalese by origin among others benefited from this priviledge and were drafted into the country that they neither lived nor worked or paid tax before and given fame that many civil servants and politicians who labored for years of meritorious service could never enjoy.
According to the book feeding from recorded facts and various interviews at the Ivorian embassy among other reliable sources .Alhassane Quatarra by status originated from BURKINA FASO and not Senegal where he professionally hailed from .LIKE Savadogo and Thiam he too ‘was believed to be a Burkina be by true status ’ He rose to prominence when Boigny appointed him as Prime minister .But before then he had antecedence that stretches from earlier position as the deputy Governor of BCEAO A FRANCO PHONE BANK with headquarters in Dakar Senegal but served originally As Burkina be citizen under the umbrella of cote d’ivoire in the same bank .He was later promoted to the position of Governor while serving as prime minister in his regime . Not many knew he was a Burkina be until the death of Boigny .
It can be contended that with the exception of Nelson Mandela ; Thomas Sankara in Burkina Faso ; Patrice Lumumba in Congo , MURDERED BY THE Belgians ; Samora Machel in Mozambique , hardly will we find a credible African leaders with solid foundations and high moral background that stood the test pof time especially at the exit of their tenure
MICRO FINANCE unknown to many is the sole panacea to mass poverty eradication in human society.The blog specifically focuses on the industry around the world but with more bias on Africa-unarguably the poorest region of the world.
February 22, 2011
THE CONCEPT OF CAPACITY BUILDING AND ECONOMIC DEVELOPMENT
THE CONCEPT OF CAPACITY BUILDING AND ECONOMIC DEVELOPMENT
Contextually Capacity refers to human character that is appropriate to support to human tradition and social development at a time .The primacy of human capacity cannot be underestimated in the general design of socioeconomic system appropriate to support living standard of the people .Its development determines the rate at which economy grows and the quality of human capacity has come to matter in modern times in addition to its primordial contribution to nation building and universal welfare as a whole .
However we need observe that its sustainability also more than determines its strategic impact to economic development and where capacity abuse is perpetrated or persistent there can be no development .This among other reason remains the catalyst for capital underdevelopment in most developing countries as a whole
SUSTAINABLE CAPACITY BUILDING FOR SUSTAINABLE SOCIAL DEVELOPMENT .
Generally human capacity collectively supports social and economic development .Capacity remains the hardware and the changing climate of development the software vital but nature enthuses differently with capacity as the software and the climate and the human system -- the hardware that outlives the software during a round of mechanical operation or use .The value of human capacity cannot be demystified and a missing link that usually midwives underdevelopment .Appropriate capacity supports appropriate development at a time .Inadequacy of development at a time is caused by capacity inadequacies or the inability to reach optimum capacity needed to support highly demanded development needed at a time .The appropriation of development cannot be attained unless capacity and appropriate standard needed are met and sustained before projected development can be met .HUMAN DEVELOPMENT begins by cultivation of required capacity vital to support a given human resource per capital which must supports itself first and foremost prior to general contribution to the development of the society .And effective human capacity follows tradition cycle thing with multiplier effect to transform a nation when collectively endorsed .Its quality by use and practice relative to institution and policy practice in an economy is indicated by the quality of information enterprise of a nation .
Since human capacity pioneers and authors human ,social , economic and political development , sustainability of the tradition flow cycle thing relative to collective social capital tends to nurture this capacity far better and consequently not only passes its effect to the socioeconomic system at large but also harbinger of much vaunted human civilization . We can contend that it is the circulation that matters which follows the tradition cycle flow [TCF ]- and such sustainable effect is vital to transform that jurisdiction from existing lethargy and the moribund nature of the socioeconomic system facing the hurdles and resolving the challenges of nation building .To be precise sustainable human capacity promotes capacity building by aggregate contribution influences socioeconomic development and also sustainable capacity building through its collective wealth promotes social growth ,then sustainable social growth or development . This later snowballs social development in turn following the TCF completes or dovetails into sustainable social development until capital development is attained o harnessed and sustained .This indicates that capitalization of development in any clime can never be possible without appropriate human capacity which will midwives adequate appropriation of development demanded at a time ----contd
Capitalization of Development, Tradition Flow Cycle and Development Density
Capitalization of development is a central precedence in developed society The development critique schools mainly the philosophers and scientists which provide diverse models put to mill to entrench development practice periodically undergo psychological reawakening and moral self-criticality-an inner audit process that reevaluates existing world models by every successive generation of modelers so that a model is not made inactive or left rigid in human tradition far too long .Such capitalization wrought by free will through intellectual remodeling exercise tends to restructure human belief system refocus human tradition and development practice perspective scientifically using per capital competitive bias not only from the critique schools but also from the rest of civil society while evaluating our tradition .This influences the policy makers in the same way as the modelers though to a lesser extent but most specifically the entire fabric of socioeconomic system that they superintend into growth and then into mass development .Their major responsibility is to shape the polity and the social psyche that supported it giving direction to mankind in general .This is passed from nation to nation ,generation to generation and from project to project .The quality of development equation at this consensus of psychological reawakening and modeling self criticality restructuring curve [ measured or tested at the birth of new models or those not accustomed to where development is traded for utility in the market place ] provided hurdles to learning are surmounted is the only competitive parameter and optimal leverage to grow development cycle from one stage successfully into order for true development to be actualized sustained and benefits mutually spread to every class in the socioeconomic system .Total reevaluation of this curve ordinarily insinuates successful market reforms in these territories to further consolidate on the previous gains of development-giving rebirth to elementary doctrine of development civilization .Those nations on the contrary where market had failed must be measured by this development deflator /inflator which addresses a review of previous strategies put in place to drive social capital so as to determine optimal result needed and accumulated .
However also at this stage man by nature highly culturally resistant to change exhibiting preferential bias in favor of the kind of change they desire to tolerate in contrast to following nature’s course which may be costly but the most effective . Inability to let go results into costly revolutions a washed in mortal antecedence .Controlling inexpedient futurity of this climate by practice tends to slow down the economy of development and also dampens sustainability of existing development antecedence . Nevertheless passion for works and strengthening of capacity building promotes and refines human arts with which further consolidation can be effected .Capacity building primarily to be precise is the subordinate institution of mass development[power triangle oriented ] and not just the basic art of development. It is the transit shed and the actualization framework of development materialism .The practice of this arts advocates development grows and matures mass development depending on the level of information adequacy existing in the society at a given period . With perpetual practice swinging from project to project and from activity to activity –a normal daily routine , cultivation of development is turned into arts and then into mass venture backed by sensitive political will and technology to become the very primogeniture of culture pass on from one culture age to the other .
Sensitive societies advocated this on a recyclical renewal basis transforming sustainable capacity building benefits into sustainable development .To study the economy of development and development technology in a society one must first venture to unravel the open mystery of how traditional and scientific information flows freely or consumed by social capital and traded by it resting on culture .This culture popularly but unusually as repetitively emphasized is regarded as the economy of development nature , the foremost institution of nature and the foundation of the universe and life altogether .Man learning from this book of nature evolve the practice of development by domesticating relative capacity which is the author of development . And the ratio of development in a nation feeds from existing capacity .Consistent growth in this regard is not enough to measure sustainability but also the quality and the growth pace also contributed to it .
Development components includes growth , growth assets , growth regulation , growth criteria , accumulation of growth , sustainability of growth , attainment of development itself then, sustainability of development , and then the cycles of development until the last cycle of capital development which measures more of the spread , thickness and distribution of this development through the rapid gains of empiricism or using the gains of technology to circulate mutual benefit to all citizens. This procures development density in which all citizens are both socially and economically affected .Dividend here is usually regarded as civilization . Development parameters such as tradition rigidity where necessary and lncentive leveraging , regulatory standard , development forecast and benchmarking , trial and error processes , development remodeling and development auditing process , bridging learning gap [ critique schools outputs] , necessity and enlightenment demand , social capital and above all the interaction of information freedom over information asymmetry that distributes mass enlightenment which determines the nature of development economy in a society in which primordial goals are the same by observing the great charters of liberty .To ferry material development is to observe this social architecture and then stages can evolve using the political economic and social power and will of a nation while mass enlightenment is leveraged to demand rigidly for mass development .
To devitalize on development is to deny extensively egalitarian access to cultural trinity and abuse this template and the consequence is to enter or embrace development dark ages and vice-versa .The entire development economy worldwide can be measured in this way which falls short of pass mark even if it were to be elementarily graded . Observance over time of this noted criteria automatically fuels development civilization which is made possible by reviewing the effect of these components and parameters in developing development and the extent to which the required sustainability is capitalized . .The basic law of development is already known which is mainly access to the use of cultural rights of man , observing the great charters and the affordable access to information democracy is a foremost starting point .That education especially social education matters a lot could no longer be doubted .The institutionalization of affordable information access promotes capital development adequacy in the long run .The only challenge a nation has is how to maneuver power triangle [being the secondary institution of development and often by its structural defects tend to ridicule the primary institution of development ] into attainment of this capitalization which is why development is faster in one society than the other; irrespective of competitive self interest over time social interest in such economy always prevail –an exposition or a reflection of the quality of social capital in that jurisdiction . The societies that made themselves poor ate poor excreta fallen short when categorized using this simple indicator. A society must have attained certain level of this adequacy democratic flow of information enterprise development and optimization before capital development can be cultivated or made possible .
It is to be noted or remembered that optimum use of information enterprise promotes by multiplier effect mass innovation .In the economy of nature art system market is nurtured by information free market which is the author of full blown cultural free market and also interchangeably and the latter still through artistic evolution It is also the author of capacity free market which in turn authors or cultivates development market economy as they spread over population free market .Nature moves along this cultural trap cycles which is embarrassingly obvious influencing humanity as the epicenter of development by projecting and planning traditionally following similar rules from the ancient until now. Unknowing to man scientific planning cannot be embarked effectively even if growth in technology advanced sustain ably unless we first unravel the nature of development economy in the cultural market –in view of the growth and diminishing returns threat to human civilization .This development pattern and standard is fixed but the capacity to maneuvers the template consumed man ’s atteliery . No wonder Francis Bacon admitted man is an interpreter of nature learning from this book [nature] and development evolution in the family of man has followed this line of thoughts for the entire stretch of utilitarian culture and history .The challenge for developed societies which have observed the rudiments of development is to sustain civilization and avoid development boom and burst cycles . Given the glaring evidence of history and development antecedence that no civilized society in mortal history since ancient until now has been able to sustain her civilization . HENCE SUSTAINING CAPITAL DEVELOPMENT IS NOT ENOUGH EVERY CIVILISATION DID ATTAIN THIS CYCLE BUT SUSTAINING THE TORCH OF CIVILISATION and spread to adjoining races is the greatest challenge in the cultural free market and human history .
Coming down to the developing history , certain parameters ,according to a study by Saleh Nsouli , once concluded that three most important and interrelated components vital to economic development : capacity building ; good governance ; and economic reform .Capacity building is defined as the development of skills and institutions as critical element to the attainment of sustainable economic growth and development .Without good governance full exploitation of acquired skills will be practically impossible and domestic institutions grossly underperformed . And to leverage on economic reforms effectively without a well functioning instutions could be exercise in futility or not operated properly .The quality of the institution itself is a reflection of the extent of capacity building –a core resource for economic growth which uses the institutions as a framework through which corporations and people participates in economic development producing incentives for investment and the resources ’ allocative efficiency .
The importance of institutions is somehow extremely underestimated in the developing history and to some extent advanced countries .No territory is immuned and specifically citing the market downturns and meltdowns that plagued the united states was linked to poor quality of institutions hitherto previously regarded as sacrosanct . Africa ’s growth rates and potentials in the 60s was ranked ahead of East Asia ’s .Nsouli study consistent with Easterly and Levine [97] provided empirical evidence that lack of sustainability truncated this potential due to political and social factors , poor instutions , political instability , bad governance and corruption and inadequate infrastructure .Rodrik [97] shares similar evidence with a view that quality of institution in the region exceeded in real terms contribution by classical economic variables such as technical progress , accumulation of capital and labor supply increases . Capital accumulation and the quality of the institutions according Hall and Jones [1999] in the study of 133 nations are complementary essential to long lasting growth .The two sets of instutions noted by Nsouli and Rodrik [1999] studies : both regulatory institutions and those that supports efficient functioning of the market are pivotal framework for long lasting growth . .
NO wonder capacity building concept is the most popular phrase in the development discourse .According to Infocotonou , the European centre for Development Policy Management noted why aid is not generating sustainable impacts or policies fail to deliver . This is linked to capacity problems as admitted by foreign donors and government alike .In the world bank study for long term development prospects for the SSA region .From Crisis To Sustainable Growth [1989] capacity building is immensely shortchanged or under threat and grossly inadequate .That capacity for sound policy design and policy sustainability is in dire need or critical short supply in nearly every sector of African economies .
For instance in the Nigerian public sector serious capacity gaps [ ratio of derivation between required and actual workforce ] exist especially in most ministries and agencies . The inadequacy in the quality of technical skills and the shortfall in the quantity of available man power posed serious problem to economic development .The inadequacy was also recognized in the national capacity assessment report [Nigeria/World Bank, 2002] affecting negatively in the way public resources are shared and coordinated .The report details were shocking . unequal staff structure , staff concentration in semi skilled and unskilled labour category while qualified staff was grossly lacking in critical areas [ i.e finance ,economics , policy analysis , general management and IT] .The civil service is said to be overstaff at the lower levels and overworked at the higher levels ; ratio of trained workers to total staff strength was very low and very insignificance to some extent citing lack of funds as a major reason behind the shortfall ; more than 70 % of sampled institutions could not meet training needs . [Obadan 2003:Capacity Building For Development [1] . ] . In the private sector the problem of skills mismatch [that do not correlate with industry needs abound . The virtual collapse of educational institutions since the 80s churned out half baked graduates that hardly finds jobs to compete in the economy and 70 percent of which hardly can defend their certificates ;though the workforce are better here than in public sector .Imagine Lagos state the riches state in Nigeria perhaps by IGR and the commercial capital controls more than 50 percent of entire skilled work force in Nigeria and two third of industrial sector . Unfortunately poverty level is as high as 70 percent .That is Nigeria –the elusive giant of Africa .The same story is grimier in the rest of Africa the middle east and beyond
Obadan [2003] commenting these inadequacies and the challenges facing Africa affirmed that ‘ this among others …..informed the nature and pattern of external donors interventions .Inspite of the efforts made the practice of capacity building so far leaves much to be desired and capacity building continues to pose challenges that may be addressed effectively in the long run ’ .
In the developed territories we have noted that poor institutions also abound and the capacity building predicaments there are more linked with poor models which further humiliates and degenerates the quantity and quality of development produced in the insensitive developing region . The institutions that supported development in this region were nurtured over the course of 400 years or so. Hence rigidity of tradition could also influence bibliomaniasis and to avoid this dark age empiricism of past leprosy in development can easily be exhumed . To resolve these challenges facing humanity put together , we need a reminder or briefly re explore the economics of information democracy and the strategic impact governing affordable information access .
ECONOMICS AND MARKET INCENTIVES OF
INFORMATION ADEQUACY
Successful capacity building rests squarely on the success of a nation ’s information enterprise which could add value to TCF If harnessed .The cost effectiveness of this market incentives promoted by its enterprise are hereby noted :
--promotes social , economic and political awareness
--ensures universal freedom such as freedom of information at least on a tolerable level inimical to preservation of human rights abuse
--Promotes mass innovation using the democracy of information freedom and ensure development in the longer term
--Without information freedom which is the sole feature of a democracy unknown to many subsidiaries such as freedom of thoughts , freedom of association , freedom of speech , security of life and property etc,among others democracy cannot be sustained.This indicates that democracy in the developing countries is living on borrowed times since the economic framework to support is lacking
--If the above is sustained the path of development cycles can also be sustained and completed until the last stage capital development or its density is sustained .These are indicators for sustainability .
CHANGING WORLD DEVELOPMENT IDEOLOGY
World development ideologies change with time and to capitalize development successfully, the socioeconomic system model must be changed to go alongside robust formula as suitable in the third world in which we have noted democratic formula hardly succeeded or go along to contribute to meaningful development ..A socioeconomic system composed of political ,social to economic system in this region is highly inimical to growth-- a safeguard of growth abuse and the main contributor to capital underdevelopment .Every decade they recorded economic growth but are hardly sustained .This emphasizes the need for change which cannot be possible without self-determination to observe neomarxism and get off the yoke of western aggressors . Learning lessons from emerging markets could give inspiration and practice is another thorn in the flesh of indolent nations where development deputisation deposition colonialisation abound and bibliomaniasis is highly valued as the antiquities .THE NEED FOR CHANGE cannot be bargained for dregs otherwise perdition of these nation states is never far away
In a fast changing climate ordinarily development according to several school of thoughts is determined , quickened or hastened by several factors mainly policies and appropriate institutions put in place to midwive meaningful change that a society or an economy demands at its own trying time which must be supported as noted earlier by highly evolving developmental ideology of the nation to evoke requisite mass of capital development needed to maintain and sustain social life and access to universal wealth . The challenge in our world today we have noted repetitively: is how responsive and effective are the socioeconomic system as a whole and especially the existing macroeconomic models’ reaction and sensitivity to this changing climate ?
AS MACROECONOMICS FADES AWAY MICROFINANCE CHARTS A NEW DAWN
We affirmed that the study of economics from the antiquity until now has never been able resolve the evils of inflation which is the fundamental economic problem let alone its endless tiring theories being propounded by macroeconomists in modern times which has only proliferated in vain Since the days of Thomas Mun,s Mercantilists theory which pioneered modern doctrine of larger market and imperialism or among others earlier in the Neolithic to the Medieval if any of this mode down to classical economics and Keynesian period until this era of the Neoclassical and the monetarists and the like , the vicious indulgence circle riding on the heels of intellectual terrorism sorry to say has assumed a maniacal proportion and refused to abate .Consequently development colonization development arbitraging and development holocaust respectively as components of development crisis have been legacies bequeathed to development market of the third world countries countering requisite density or mass of capital development that has often eluded these territories for a long stretch of human history.
Infact insiders such as Robert Barro at Harvard Keynesian Paul krugman of Princeton University and New York Times Brad De Long of the University of California and William Buiter of London School of Economics [LSE] and a host of others have noted this gradual degeneration .They contended that economics is a dismal science. That the past 30 years of macroeconomics training at American and British Universities and the entire west were ‘a costly waste of time ’ The U. S meltdown greatly plummeted any notion of confidence or provoked crisis of confidence in the field and a glaring evidence of the dismal science .In the best PhD programmes based on the opinions of some economists , macroeconomics it is regarded often as the least most popular class . It is a misnomer to believe that it is a panacea nor even a relief to human and economic misery .
On June 10 , 2009 at a Lionel Robins lecture held at the LSE—London School Of Economics Krugman noted that most macroeconomics of the past 30 years was ‘spectacularly useless and positively harmful at worst ’ .That is particularly a scathing remark and can never be better than this especially when coming from the mouth of an insider-Is that a good halitosis ? Your guess is as good as mine .They failed to diagnose the causes of economic crisis during the melt down not to talk of proffering solutions for recovery uphill They were dormant hardly learnt new things and keep repeating the same mistakes over time
Of course these internal critics were against themselves too both the ‘ purists ‘ freshwater and the saltwater ‘ pragmatists ‘ The behavioral economists and the apologists of efficient market hypothesis raved against each other .Although Paul Krugman noted that ‘ we are living through a dark age of macroeconomics ‘ he was nevertheless criticized by some other macroeconomists such as De Long for falling back on antiquated Keynesian doctrines ‘ as if nothing had been learned over the last 70 years ’ After all many scientists the economists believed ‘ do not leaf through Newton ‘s world machine ‘ principia mathematical’ to solve basic problems in the study of physics .
For the upteempth time in this fast changing technology age existing macroeconomics model ordinarily must ordinarily must also change perhaps at the same pace in which
today’s technology changes .The fact is clear: the poorest regions of the world mainly Africa and the middle east despite landslide GDP growth over the years which is measured declining share of world trade and especially the growing flaccidity in the natural wealth or assets that GDP in real terms precisely does not take into account .There is no need to re-emphasise what is known already –In a cursory analysis let us access challenges facing Africa as a leading case study in this episode .
AFRICA IN THE NEOMARXIST AGE
Like elsewhere around the world the relevance of international financial architecture to Africa cannot be underestimated at this critical period of her history in view of vital demand for development practice in the continent . The quality of growth and development in this territory is heavily interrogated . Greater macroeconomic stability attained especially in the SSA region over the years unarguably grossly masked and shortchanged the quality of this practice and vastly underdeveloped its needed density and pedigree not translated into lasting growth in the continent in the long run . Unfortunately the vicious trap cycle continues without remorse and alternative recourse since the colonial era .
CHALLENGES FACING AFRICA
As usually emphasized demand for development in the continent is under perpetual siege. No wonder nominal and precisely real development is similarly under siege and close to zero . What can we do ? .Challenges facing the practice stems from seemingly insurmountable factors such as poor mass enlightenment ; inappropriate demand for development ; cultural inhibitive supply factor flaccidity ; and above all lack of homegrown ideology OR which we have analyzed or diagnosed as acquired immune deficiency DDDCH syndrome [DAIDS] OR SOCIOECONOMIASIS . This can be regarded on aggregate as mental poverty or spiritual poverty which is the author of all poverty types be it income or economic form of poverty ; physical ;political and social forms of poverty .It is the world greatest plague behind social misery .Before we can resolve this problem we must tackle socioeconomic effect of Braindrain in the continent .
According to Daniel Cohen in the piece ‘Veils of Ignorance ’that two of three Americans sincerely believed that being black is synonymous to poverty and the rest did enthuse that blacks were probably unlucky . For the umpteempth time as earlier admitted yet the pinnacle of their civilization was black by origin .It is a derogatory statement to be made especially for the ignoramuses around being deceived by their shortsighted philosophers and who failed to uncover the strategic importance of the mother of all races and her indelible place in mortal antecedence .Underestimating her unparalleled antecedence surely marked the path to perpetual economic decline
THE CONCEPT OF BRAIN DRAIN AND ECONOMIC DECLINE
The concept of Braindrain particularly is more worrying which reduces the growth rate of available and effective human capital shrinks income reduces the existing size of income per capital and GDP capitalizing gross underdevelopment in the long run .That is why Africans need to take serious considerations on its economic impact and effect on labour and standard of living and international competitiveness [Hague and kim].It has greater impact on international trade and commerce and often occurs between nations states and communities and impact heavily on the climate of sustainable development [Uwaje,2001].
It is to be noted that the Braindrain scourge is one of the author of mass poverty and is synonymous to capital underdevelopment .According to international Organisation for migration and the United Nations Economic commissions for Africa ; for many Africans who went abroad and returns with professional expertise and as skilled labour there are many more that never returns . The scourge is particularly nauseating and steadily increasing .Between 1960-1975 about 27 ,000 exceptionally qualified professionals were estimated to have departed their home countries .And between 1985—90 another 60,000 also departed and since the continent has been loosing 20 ,000 professionals annually .This is particularly worrying because the figures do not include the student population that also departed to study abroad with no hope of likely return .Out of every 100 professionals departing annually only 35 do not return .About 64percnt of Nigerians between the age of 25 and older and 43 percent of all Africans living in U.S.have one bachelor ‘s degree at least .The Senegalese doctors in the U.S. CITY OF CHICAGO is more than in the whole of Senegal .Likewise if the Nigerian doctors at the general hospital in Kuwait should return home enmasse today that hospital will be closed down . There are many more Nigerian doctors and nurses in Saudi Arabia and the .U.S. THAN in the whole of Nigeria put together .
AS a matter of fact Nigeria has more than 21,000 doctors in the U.S. alone as opposed to over 30,000 local doctors . This figure for the U.S. is even more than real local estimates because not all Nigerian local doctors are active excluding those with periodically renewed licenses. . Imagine about 1.7 hospital beds and 0.2 doctors per 1000 people and infact one doctor serving about 15 -20 ,000 clients in the north ; this is not peculiar to Nigeria and the emigrated ones do not dream of coming back .Writing in the ‘Professionals And the Economy ’Prince Bola Ajibola the former attorney general and minister of justice while recalling his experience as a Nigerian envoy at the court of St .James and the alarming number of Nigerians that have left the shores of the country since 1999 once noted that : Frankly speaking a considerable number of those who ought to contribute to the revival of the economy are outside the country . Many of these migrants are professionals .They are currently devoting their talents in developing other people’s economies all over the globe .Sadly the many hundreds of thousands of naira it takes to produce a Nigerian graduate and professional right from primary school to the University would appear to be wasted when you find him or her doing menial jobs such as attendants in the London underground ’
He continued ; United Nations Conferences on Trade and Development [UNCTAD] estimates as at 1979 shows that each African professional between the age of 25—35 contributes $184 ,000 each year to the United States economy .Current estimates are that at least 100 ,000 Nigerian professionals are practicing in the U.S. .Thus conservatively , Nigerian professionals contribute about $18.4billion to the U.S.economy . If adjustments for inflation over 20 years are made the mount of money will be more astonishing .If you include Nigerian professionals living in Canada Europe Saudi Arabia and South Africa the amount will be $100billion [ more than twice of nation’s GDP during the period ].Whereas 30 ,000 doctors Nigerian born medical doctors .I dare say if there is a sudden withdrawal of Nigerian medical professionals [doctors and nurses ] from the united kingdom the national health service [NHS] will face dire consequences .’[defunct National interest Aug.24,2001pg.27]He believed Saudi Arabia will face similar ordeals with adverse effects on their healthcare system should Nigerian doctors and nurses be withdrawn . He was surprised Nigerians every where even in new Zealand ‘way down on the end of the planet ’ believing due to sheer distance will hardly come across any Nigerian but ‘to my utmost …. pleasant surprise ’according to him ‘ a reception ’was ‘held for me the same evening of my arrival by Nigerian professionals gainfully employed and contributing to New Zealand economy ’. That Nigerians are every where around should no longer be disputed and should not be the problem and many will never return according to our lawyer unless social amenities are provided . Social amenities or not people are always on the move even in South Africa where the climate is conducive professionals are moving in droves but who is filling the remaining vacuum ? Any way as we noted the scourge is a phenomenon across Africa .
In Ghana during the 1980s 60 percent of her doctors left the country putting enormous pressure on the healthcare sector while an estimated number of only 400 doctors are still left behind in Zambia out of close to two thousand doctors it formerly had . In 2003 Christian Science monitor reported within a decade in South Africa an estimated 20 percent of skilled workforce have departed the country and within five years in Zimbabwe professional workforce shrank by two third ; this is a grave situation . Now it lamented to replace this missing gap Africa spends 4 billion dollars annually importing some 100 , 000 skilled expatriate to fill the missing link . no wonder development of science and technology is stagnant and fast eroding as scientists emigrated in search of greener pastures .Forget about genocide such as happened in Rwanda I tell you this intellectual genocide not physical genocide far worst and far degrading .
The result today is known all no growth let alone development nothing moves and decline persists as population increases .Policy put in place like NEPAD etc lack leverage to take the continent to the promise land . We contended already that only enlightened people demand for development and can prevent social political and economic instability from degenerating . Today Africa remains the most scientifically backward territory of the world and behind the middleast is the world poorest region . no wonder some researches link that [ two out of three Americans ]thought that black is synonymous poverty . I S there ANY WAY OUT ? The spillover effect of Braindrain was profound .
THE SPILLOVER EFECT AND BRAINDRAIN
The UNESCO WORLD science lamented that the continent failed to make any impact on new materials and product development far lagging in the ICT sector despite marginal growth in recent times .A 1992 survey put the total population of African scientists and engineers at 20,000 which represents a mere 0.36 percent of world scientists and the continent is responsible for less than 1 percent [0.8 %] of world scientific publication .While its shares of patent is next to zero with no nobel laureate for any scientific discipline yet .It is a very serious situation because patents scientific publications innovations and technologies are the common yardstick of growing civilization .
According to the report at the basis of this declining growth is the deterioration of learning . Education is declining due negligible output contributed by science research and development .In the public institutions Africa’s expenditure is said to be less than 1 percent of GNP in which a good chunk of these scanty spending say 47 percent are pumped into agricultural forestry and piscatorial rearing whereas value additive agro allied and manufacturing services persistently lacked behind . As at 2001 UNESCO report summary by Catherine Mgendi besides Seychelles and South Africa no nation in the entire continent spend close to or 1 percent of her GNP on research and development .or larger chunk to sciences .
Enrollment in science has fallen drastically especially in advanced learning institutions a major reason for decline of science on the continent . In most countries about 0.5 percent of scientists and technicians existed for every 10,000 people in 1995 .let ‘ take a look at secondary and tertiary enrollment in selected African countries. In The nation article on African science Mgendi noted :
Selected African and Asian countries compared
Secondary and vocational school enrolment per 10, 000 people
South Africa ……………………………………………….1,085
Korea………………………………………………………..1,037
Gabon…………………………………………………………474
China …………………………………………………………457
Kenya ……………………………………………………………224
Tertiary Enrolment in the selected countries: compared
South Africa ………………………………………………………80
Korea ……………………………………………………………..381
Though the eight African counties rated favorably with six fastest growing in east and south Asia but the low enrollment in science is the greatest undoing .
Before we close this chapter , consider this sad and deplorable facts .According to the magazine –The Newsweek , the U.N. and World bank intensive studies that over the last 20 years which ended in 2003 Arab world average per capital growth rate had been less than 1 percent lower than that of Sub Saharan African region ..Unemployment was in double digits even though they were underestimated and labour productivity hardly changed since 1970s down to 1990s. In terms of access to foreign literature and ideas and technological development and exports middle east is the weakest and persistently the decline never abated. Likewise in Africa , her peer basket case , per capital income in Egypt in 1950 was rated exactly at the same level in South Korea but presently it is 80 % far lower than in the former times .During the same period under review the population of Egypt some 70 million people filed only 77 patents in the U.S. compared to 50 MILLION South Koreans filing 16 , 328 patents works .Today non –oil exports of Hungary is much bigger than all of African countries put together . These are some of the grievous mistakes and Braindrain factor could not have been resolved and exterminated completely
Note :Braindrain like many of African challenges to sum it up is a capacity problem correcting this shortfall is no doubt a function of sustainable capacity building which can only be harnessed and resolved in the longer term .
With this scourge Africans seem to be contributing to growth elsewhere to the detriment of their motherland .It should noted Braindrain has two types or categories : fist we have colonial Braindrain which is slave trade using forceful expulsion of people to foreign lands but now the rest is history ;what we have today is neocolonial Braindrain in which the lure of civilization and greener pastures lured Africans persuasively to serve to grow the superior homeland. This is modern slavery –the most deceptive fighting local development like jihad or shall we say second slavery ?
Africa : the Land of crisis and natural wealth
There is no doubt that Africa is the richest territory of the world and cannot afford to do less since it controls or has 40 percent of world total strategic minerals and the Congo basin harbors half of these with the Niger delta having the highest numbers of rivers and waterways worldwide .70 percent of 300 ,000 species of world total fauna and flora are located in Africa but Niger delta controls 60 percent of these . World largest gas deposits according U.S. GEOLOGICAL STATISTICS is located in Nigeria [ and not Russia or Iran ] probably around 600tr.scf [as opposed to official 200tr.scft .The world largest bitumen probably lead and zinc according to one mining experts are found in Nigeria .South Africa controls world gold reserves diamond and next to Russia in platinum and a world leader in palladium .Every state in Africa is endowed with one resource or the other . Africa controls more than 30 percent of world gold reserves The gulf of guinea is one of the richest and leading hydrocarbon regions of the world
Unfortunately this good development had become a gory tales and in some African countries natural resources have become a curse and not a blessing . From the blood diamond fields of Sierra Leone to the democratic rep. of Congo warring fields where a group of countries are at loggerheads and fighting over solid minerals down to the Angolan terrorist enclave , natural capital have been a source of imprecation and social upheaval .Let’s take look at this known statistics in an historical reminder ;
20 percent of Africans are under condition of conflicts
From the mid-90s upward beginning from Rwandan genocide more than a dozen countries were sucked into armed conflict and crisis perpetuated in the battle to control natural capital .The great lakes region together with Sudan captured international attention and they are a massive region quite as large as western Europe .
Sudan has been mired in conflict all but 10 years since independence in 1956 while African first world war is going in the Congo dr. where 6 countries battle it out over solid minerals .
The effect is poor capacity building and average per capital income is lower than in 1960s
Nearly 50percent of SSA region citizens live below poverty lines the figure is 90 should we use poverty profile . etc.
Border disputes abound and challenges of divisive pluralism as noted by Emeka Anyaoku in the piece ‘South Africa and the challenge of divisive pluralism ’is becoming clearer direr as burden of development increases which can only resolved by grass root empowerment .
The only condition for sustainable growth and development is peace and social stability which h will also create a platform for good trade and the ability to cover her trade gap and development gap with the rest of the world .
Averting cultural Brain drain :A bigger scourge
As a result of this horror tales cultural brain drain also became the natural consequence
Of this traditional brain drain. IF we fail to revive and value our culture as the last asset of black man we nothing to gain in the near future .Although this drain is not peculiar to AFRICA but SHE IS THE most affected of all regions of the world .For instance half of world 6 ,000 languages are expected to go extinct in this millennium .Though skeptics may not believe but close to 10 languages or 9 are already extinct in Nigeria out of bout 526 local dialects .Similar gory tales loom large across the region .IT is worst gory tale any region could experience.
By this time we need to realize that Malaria alone that kills a child in Africa every 30 seconds is not just taking more than 1% off African GDP together with other epidemics like tuberculosis sexually transmitted diseases, especially HIV/AIDS ,cancer of all types etc [that could be slicing between 10-20 % of potential growth ] but the slow nature of development and the existing unsustainability of previous development gave us a credible evidence of the long and tortuous road to development .The concern is if Africa does not innovate as noted by Philip Emeagwali it will definitely perish .We note that the traditional brain drain was long caused by cultural brain drain noted in the complacency of earlier civilization which can only be corrected by innovation to save the theft image that the word ‘dark age ’had bestowed on the continent especially in the post-colonial age.
………………contd
.
General effect and International trade
It can be contended due to low capacity building , widespread economic , political crisis and large trade gap the continent is the most marginalized continent in the world .Blooms and Sachs [1988 ] noted that between 1980 –1996 it was the only continent to experience absolute trade decline whereas the volume of goods and services have grown over the years in other competing territories but in Africa has grown below the GDP .Between 1980—90 its share of world exports stood at 3percent but declined to 1.95 percent in the period between 1991—2001 .During similar period that of Asia grew from 11 percent to 18 percent in the latter period . The concentration on natural raw material commodities encouraged the decline .Dollar and kray [2001] also provided evidence that a group of developing countries that opened up their economy recorded astronomical growth . Uncompetitive economies like Africa would always stay behind due to loss of market share , unguarded trade liberalization , tariff barrier , marginalization from world markets with annual loses of more than 70billion dollars , lack of industrial goods and poor terms of trade or bad trade policies , protectionist policies , higher capital flight crisis .
To enumerate a bit , industrial goods are seriously lacking grossly from exports .The shares of manufactures in her exports since 1995 varied between 32-36 %. Whereas in south Asia the ratio stood at 78—79 % and for east Asia and the Pacific hovered around 78—83 percent with manufacturing accounting for one third of export .High transportation cost mainly affecting location of industrial activity and freight rates .Rodrik [99] commenting on the marginalization factor he observed unfavorable terms of trade , trade restriction practice of the trade policies , The GATT Uruguay Round of trade negotiation concluded in 1995 introduced new changes that led to WTO establishment .The internal causes such as trade and exchange ate policies ; primary driven products haunted by price indetermination ; and uncompetitive nature of production. There is too much capital outflows .Collier , 1997 ]9. and Ajayi [ 1996 ]/[1997] argued a higher proportion of Africa’s wealth were stashed outside the continent in the form of capital flight and she integrated into global economy in a negative sense. They contended that capital flight varies between 24 to 134 % of GNP .This is also consistent with ECA study of 30 countries in the period of 1970—96 mounted to about 187 billion dollars .Infact it exceeds 200 percent for a group of eight countries in the ratio of capital stock to the GDP with weighted average of 172 percent for the group .Countries such as ANGOLA , Cameroon , Cote d ‘ivoire Congo [democratic] and Nigeria .In the last twelve years NIGERIA ALONE earned between 400—500billion dollars and every year 60 percent of this passive oil wealth were carted into western metropolis .Uneven flow of FDI is another challenge facing Africa over the last twenty years which ended at 2002 compared to the rest of the world .
FOREIGN DIRECT INVESTMENT---[ FDI] -INLOW
AFRICA----------------------------------THE REST OF THE WORLD
Share % ? Share %
1991—96-----$4.6b./1.8%---------------------------------$254.3b.
2000--------- 0.6 %-----------------------------------------$1.4trillion .
2002----------- $11b.----------------------------------------$651.2b.
------For the decade 1970s—80s , it reduced to half in Africa compared to the rest of the world
-----In 1980s the global FDI Stock as percentage of GDP was 5.3 percent as opposed Asia ‘s share of 28.1 percent and Latin America and Caribbean share of 8.1 percent by 2000 .And thereafter declined .
-------
-----Therefore she failed woefully to tap the economic incentives provided by FDIs mainly bridging savings gap and the ability to transfer technology
With the benefits of globalization gone to the advanced countries the world has become more unequal over the last 200 years and despite being the most endowed continent is still the poorest [together with middle east ] region in the world controlling less than 1 percent of world trade .In the paper delivered at the 7th Ojetunji Aboyade memorial lecture professor AJayi observed that open trade regime though useful will not propel a country on its path to sustained growth .Those nations that have grown faster are those that invested a high share of GDP and maintained macroeconomic stability .The anchor of Africa ’s growth prospects he noted must be appropriate policy measures human capital institutions and infrastructure .Perhaps if done emigrants will one day return and that may not happen in their lifetime due to recklessness of local leaders .
Contextually Capacity refers to human character that is appropriate to support to human tradition and social development at a time .The primacy of human capacity cannot be underestimated in the general design of socioeconomic system appropriate to support living standard of the people .Its development determines the rate at which economy grows and the quality of human capacity has come to matter in modern times in addition to its primordial contribution to nation building and universal welfare as a whole .
However we need observe that its sustainability also more than determines its strategic impact to economic development and where capacity abuse is perpetrated or persistent there can be no development .This among other reason remains the catalyst for capital underdevelopment in most developing countries as a whole
SUSTAINABLE CAPACITY BUILDING FOR SUSTAINABLE SOCIAL DEVELOPMENT .
Generally human capacity collectively supports social and economic development .Capacity remains the hardware and the changing climate of development the software vital but nature enthuses differently with capacity as the software and the climate and the human system -- the hardware that outlives the software during a round of mechanical operation or use .The value of human capacity cannot be demystified and a missing link that usually midwives underdevelopment .Appropriate capacity supports appropriate development at a time .Inadequacy of development at a time is caused by capacity inadequacies or the inability to reach optimum capacity needed to support highly demanded development needed at a time .The appropriation of development cannot be attained unless capacity and appropriate standard needed are met and sustained before projected development can be met .HUMAN DEVELOPMENT begins by cultivation of required capacity vital to support a given human resource per capital which must supports itself first and foremost prior to general contribution to the development of the society .And effective human capacity follows tradition cycle thing with multiplier effect to transform a nation when collectively endorsed .Its quality by use and practice relative to institution and policy practice in an economy is indicated by the quality of information enterprise of a nation .
Since human capacity pioneers and authors human ,social , economic and political development , sustainability of the tradition flow cycle thing relative to collective social capital tends to nurture this capacity far better and consequently not only passes its effect to the socioeconomic system at large but also harbinger of much vaunted human civilization . We can contend that it is the circulation that matters which follows the tradition cycle flow [TCF ]- and such sustainable effect is vital to transform that jurisdiction from existing lethargy and the moribund nature of the socioeconomic system facing the hurdles and resolving the challenges of nation building .To be precise sustainable human capacity promotes capacity building by aggregate contribution influences socioeconomic development and also sustainable capacity building through its collective wealth promotes social growth ,then sustainable social growth or development . This later snowballs social development in turn following the TCF completes or dovetails into sustainable social development until capital development is attained o harnessed and sustained .This indicates that capitalization of development in any clime can never be possible without appropriate human capacity which will midwives adequate appropriation of development demanded at a time ----contd
Capitalization of Development, Tradition Flow Cycle and Development Density
Capitalization of development is a central precedence in developed society The development critique schools mainly the philosophers and scientists which provide diverse models put to mill to entrench development practice periodically undergo psychological reawakening and moral self-criticality-an inner audit process that reevaluates existing world models by every successive generation of modelers so that a model is not made inactive or left rigid in human tradition far too long .Such capitalization wrought by free will through intellectual remodeling exercise tends to restructure human belief system refocus human tradition and development practice perspective scientifically using per capital competitive bias not only from the critique schools but also from the rest of civil society while evaluating our tradition .This influences the policy makers in the same way as the modelers though to a lesser extent but most specifically the entire fabric of socioeconomic system that they superintend into growth and then into mass development .Their major responsibility is to shape the polity and the social psyche that supported it giving direction to mankind in general .This is passed from nation to nation ,generation to generation and from project to project .The quality of development equation at this consensus of psychological reawakening and modeling self criticality restructuring curve [ measured or tested at the birth of new models or those not accustomed to where development is traded for utility in the market place ] provided hurdles to learning are surmounted is the only competitive parameter and optimal leverage to grow development cycle from one stage successfully into order for true development to be actualized sustained and benefits mutually spread to every class in the socioeconomic system .Total reevaluation of this curve ordinarily insinuates successful market reforms in these territories to further consolidate on the previous gains of development-giving rebirth to elementary doctrine of development civilization .Those nations on the contrary where market had failed must be measured by this development deflator /inflator which addresses a review of previous strategies put in place to drive social capital so as to determine optimal result needed and accumulated .
However also at this stage man by nature highly culturally resistant to change exhibiting preferential bias in favor of the kind of change they desire to tolerate in contrast to following nature’s course which may be costly but the most effective . Inability to let go results into costly revolutions a washed in mortal antecedence .Controlling inexpedient futurity of this climate by practice tends to slow down the economy of development and also dampens sustainability of existing development antecedence . Nevertheless passion for works and strengthening of capacity building promotes and refines human arts with which further consolidation can be effected .Capacity building primarily to be precise is the subordinate institution of mass development[power triangle oriented ] and not just the basic art of development. It is the transit shed and the actualization framework of development materialism .The practice of this arts advocates development grows and matures mass development depending on the level of information adequacy existing in the society at a given period . With perpetual practice swinging from project to project and from activity to activity –a normal daily routine , cultivation of development is turned into arts and then into mass venture backed by sensitive political will and technology to become the very primogeniture of culture pass on from one culture age to the other .
Sensitive societies advocated this on a recyclical renewal basis transforming sustainable capacity building benefits into sustainable development .To study the economy of development and development technology in a society one must first venture to unravel the open mystery of how traditional and scientific information flows freely or consumed by social capital and traded by it resting on culture .This culture popularly but unusually as repetitively emphasized is regarded as the economy of development nature , the foremost institution of nature and the foundation of the universe and life altogether .Man learning from this book of nature evolve the practice of development by domesticating relative capacity which is the author of development . And the ratio of development in a nation feeds from existing capacity .Consistent growth in this regard is not enough to measure sustainability but also the quality and the growth pace also contributed to it .
Development components includes growth , growth assets , growth regulation , growth criteria , accumulation of growth , sustainability of growth , attainment of development itself then, sustainability of development , and then the cycles of development until the last cycle of capital development which measures more of the spread , thickness and distribution of this development through the rapid gains of empiricism or using the gains of technology to circulate mutual benefit to all citizens. This procures development density in which all citizens are both socially and economically affected .Dividend here is usually regarded as civilization . Development parameters such as tradition rigidity where necessary and lncentive leveraging , regulatory standard , development forecast and benchmarking , trial and error processes , development remodeling and development auditing process , bridging learning gap [ critique schools outputs] , necessity and enlightenment demand , social capital and above all the interaction of information freedom over information asymmetry that distributes mass enlightenment which determines the nature of development economy in a society in which primordial goals are the same by observing the great charters of liberty .To ferry material development is to observe this social architecture and then stages can evolve using the political economic and social power and will of a nation while mass enlightenment is leveraged to demand rigidly for mass development .
To devitalize on development is to deny extensively egalitarian access to cultural trinity and abuse this template and the consequence is to enter or embrace development dark ages and vice-versa .The entire development economy worldwide can be measured in this way which falls short of pass mark even if it were to be elementarily graded . Observance over time of this noted criteria automatically fuels development civilization which is made possible by reviewing the effect of these components and parameters in developing development and the extent to which the required sustainability is capitalized . .The basic law of development is already known which is mainly access to the use of cultural rights of man , observing the great charters and the affordable access to information democracy is a foremost starting point .That education especially social education matters a lot could no longer be doubted .The institutionalization of affordable information access promotes capital development adequacy in the long run .The only challenge a nation has is how to maneuver power triangle [being the secondary institution of development and often by its structural defects tend to ridicule the primary institution of development ] into attainment of this capitalization which is why development is faster in one society than the other; irrespective of competitive self interest over time social interest in such economy always prevail –an exposition or a reflection of the quality of social capital in that jurisdiction . The societies that made themselves poor ate poor excreta fallen short when categorized using this simple indicator. A society must have attained certain level of this adequacy democratic flow of information enterprise development and optimization before capital development can be cultivated or made possible .
It is to be noted or remembered that optimum use of information enterprise promotes by multiplier effect mass innovation .In the economy of nature art system market is nurtured by information free market which is the author of full blown cultural free market and also interchangeably and the latter still through artistic evolution It is also the author of capacity free market which in turn authors or cultivates development market economy as they spread over population free market .Nature moves along this cultural trap cycles which is embarrassingly obvious influencing humanity as the epicenter of development by projecting and planning traditionally following similar rules from the ancient until now. Unknowing to man scientific planning cannot be embarked effectively even if growth in technology advanced sustain ably unless we first unravel the nature of development economy in the cultural market –in view of the growth and diminishing returns threat to human civilization .This development pattern and standard is fixed but the capacity to maneuvers the template consumed man ’s atteliery . No wonder Francis Bacon admitted man is an interpreter of nature learning from this book [nature] and development evolution in the family of man has followed this line of thoughts for the entire stretch of utilitarian culture and history .The challenge for developed societies which have observed the rudiments of development is to sustain civilization and avoid development boom and burst cycles . Given the glaring evidence of history and development antecedence that no civilized society in mortal history since ancient until now has been able to sustain her civilization . HENCE SUSTAINING CAPITAL DEVELOPMENT IS NOT ENOUGH EVERY CIVILISATION DID ATTAIN THIS CYCLE BUT SUSTAINING THE TORCH OF CIVILISATION and spread to adjoining races is the greatest challenge in the cultural free market and human history .
Coming down to the developing history , certain parameters ,according to a study by Saleh Nsouli , once concluded that three most important and interrelated components vital to economic development : capacity building ; good governance ; and economic reform .Capacity building is defined as the development of skills and institutions as critical element to the attainment of sustainable economic growth and development .Without good governance full exploitation of acquired skills will be practically impossible and domestic institutions grossly underperformed . And to leverage on economic reforms effectively without a well functioning instutions could be exercise in futility or not operated properly .The quality of the institution itself is a reflection of the extent of capacity building –a core resource for economic growth which uses the institutions as a framework through which corporations and people participates in economic development producing incentives for investment and the resources ’ allocative efficiency .
The importance of institutions is somehow extremely underestimated in the developing history and to some extent advanced countries .No territory is immuned and specifically citing the market downturns and meltdowns that plagued the united states was linked to poor quality of institutions hitherto previously regarded as sacrosanct . Africa ’s growth rates and potentials in the 60s was ranked ahead of East Asia ’s .Nsouli study consistent with Easterly and Levine [97] provided empirical evidence that lack of sustainability truncated this potential due to political and social factors , poor instutions , political instability , bad governance and corruption and inadequate infrastructure .Rodrik [97] shares similar evidence with a view that quality of institution in the region exceeded in real terms contribution by classical economic variables such as technical progress , accumulation of capital and labor supply increases . Capital accumulation and the quality of the institutions according Hall and Jones [1999] in the study of 133 nations are complementary essential to long lasting growth .The two sets of instutions noted by Nsouli and Rodrik [1999] studies : both regulatory institutions and those that supports efficient functioning of the market are pivotal framework for long lasting growth . .
NO wonder capacity building concept is the most popular phrase in the development discourse .According to Infocotonou , the European centre for Development Policy Management noted why aid is not generating sustainable impacts or policies fail to deliver . This is linked to capacity problems as admitted by foreign donors and government alike .In the world bank study for long term development prospects for the SSA region .From Crisis To Sustainable Growth [1989] capacity building is immensely shortchanged or under threat and grossly inadequate .That capacity for sound policy design and policy sustainability is in dire need or critical short supply in nearly every sector of African economies .
For instance in the Nigerian public sector serious capacity gaps [ ratio of derivation between required and actual workforce ] exist especially in most ministries and agencies . The inadequacy in the quality of technical skills and the shortfall in the quantity of available man power posed serious problem to economic development .The inadequacy was also recognized in the national capacity assessment report [Nigeria/World Bank, 2002] affecting negatively in the way public resources are shared and coordinated .The report details were shocking . unequal staff structure , staff concentration in semi skilled and unskilled labour category while qualified staff was grossly lacking in critical areas [ i.e finance ,economics , policy analysis , general management and IT] .The civil service is said to be overstaff at the lower levels and overworked at the higher levels ; ratio of trained workers to total staff strength was very low and very insignificance to some extent citing lack of funds as a major reason behind the shortfall ; more than 70 % of sampled institutions could not meet training needs . [Obadan 2003:Capacity Building For Development [1] . ] . In the private sector the problem of skills mismatch [that do not correlate with industry needs abound . The virtual collapse of educational institutions since the 80s churned out half baked graduates that hardly finds jobs to compete in the economy and 70 percent of which hardly can defend their certificates ;though the workforce are better here than in public sector .Imagine Lagos state the riches state in Nigeria perhaps by IGR and the commercial capital controls more than 50 percent of entire skilled work force in Nigeria and two third of industrial sector . Unfortunately poverty level is as high as 70 percent .That is Nigeria –the elusive giant of Africa .The same story is grimier in the rest of Africa the middle east and beyond
Obadan [2003] commenting these inadequacies and the challenges facing Africa affirmed that ‘ this among others …..informed the nature and pattern of external donors interventions .Inspite of the efforts made the practice of capacity building so far leaves much to be desired and capacity building continues to pose challenges that may be addressed effectively in the long run ’ .
In the developed territories we have noted that poor institutions also abound and the capacity building predicaments there are more linked with poor models which further humiliates and degenerates the quantity and quality of development produced in the insensitive developing region . The institutions that supported development in this region were nurtured over the course of 400 years or so. Hence rigidity of tradition could also influence bibliomaniasis and to avoid this dark age empiricism of past leprosy in development can easily be exhumed . To resolve these challenges facing humanity put together , we need a reminder or briefly re explore the economics of information democracy and the strategic impact governing affordable information access .
ECONOMICS AND MARKET INCENTIVES OF
INFORMATION ADEQUACY
Successful capacity building rests squarely on the success of a nation ’s information enterprise which could add value to TCF If harnessed .The cost effectiveness of this market incentives promoted by its enterprise are hereby noted :
--promotes social , economic and political awareness
--ensures universal freedom such as freedom of information at least on a tolerable level inimical to preservation of human rights abuse
--Promotes mass innovation using the democracy of information freedom and ensure development in the longer term
--Without information freedom which is the sole feature of a democracy unknown to many subsidiaries such as freedom of thoughts , freedom of association , freedom of speech , security of life and property etc,among others democracy cannot be sustained.This indicates that democracy in the developing countries is living on borrowed times since the economic framework to support is lacking
--If the above is sustained the path of development cycles can also be sustained and completed until the last stage capital development or its density is sustained .These are indicators for sustainability .
CHANGING WORLD DEVELOPMENT IDEOLOGY
World development ideologies change with time and to capitalize development successfully, the socioeconomic system model must be changed to go alongside robust formula as suitable in the third world in which we have noted democratic formula hardly succeeded or go along to contribute to meaningful development ..A socioeconomic system composed of political ,social to economic system in this region is highly inimical to growth-- a safeguard of growth abuse and the main contributor to capital underdevelopment .Every decade they recorded economic growth but are hardly sustained .This emphasizes the need for change which cannot be possible without self-determination to observe neomarxism and get off the yoke of western aggressors . Learning lessons from emerging markets could give inspiration and practice is another thorn in the flesh of indolent nations where development deputisation deposition colonialisation abound and bibliomaniasis is highly valued as the antiquities .THE NEED FOR CHANGE cannot be bargained for dregs otherwise perdition of these nation states is never far away
In a fast changing climate ordinarily development according to several school of thoughts is determined , quickened or hastened by several factors mainly policies and appropriate institutions put in place to midwive meaningful change that a society or an economy demands at its own trying time which must be supported as noted earlier by highly evolving developmental ideology of the nation to evoke requisite mass of capital development needed to maintain and sustain social life and access to universal wealth . The challenge in our world today we have noted repetitively: is how responsive and effective are the socioeconomic system as a whole and especially the existing macroeconomic models’ reaction and sensitivity to this changing climate ?
AS MACROECONOMICS FADES AWAY MICROFINANCE CHARTS A NEW DAWN
We affirmed that the study of economics from the antiquity until now has never been able resolve the evils of inflation which is the fundamental economic problem let alone its endless tiring theories being propounded by macroeconomists in modern times which has only proliferated in vain Since the days of Thomas Mun,s Mercantilists theory which pioneered modern doctrine of larger market and imperialism or among others earlier in the Neolithic to the Medieval if any of this mode down to classical economics and Keynesian period until this era of the Neoclassical and the monetarists and the like , the vicious indulgence circle riding on the heels of intellectual terrorism sorry to say has assumed a maniacal proportion and refused to abate .Consequently development colonization development arbitraging and development holocaust respectively as components of development crisis have been legacies bequeathed to development market of the third world countries countering requisite density or mass of capital development that has often eluded these territories for a long stretch of human history.
Infact insiders such as Robert Barro at Harvard Keynesian Paul krugman of Princeton University and New York Times Brad De Long of the University of California and William Buiter of London School of Economics [LSE] and a host of others have noted this gradual degeneration .They contended that economics is a dismal science. That the past 30 years of macroeconomics training at American and British Universities and the entire west were ‘a costly waste of time ’ The U. S meltdown greatly plummeted any notion of confidence or provoked crisis of confidence in the field and a glaring evidence of the dismal science .In the best PhD programmes based on the opinions of some economists , macroeconomics it is regarded often as the least most popular class . It is a misnomer to believe that it is a panacea nor even a relief to human and economic misery .
On June 10 , 2009 at a Lionel Robins lecture held at the LSE—London School Of Economics Krugman noted that most macroeconomics of the past 30 years was ‘spectacularly useless and positively harmful at worst ’ .That is particularly a scathing remark and can never be better than this especially when coming from the mouth of an insider-Is that a good halitosis ? Your guess is as good as mine .They failed to diagnose the causes of economic crisis during the melt down not to talk of proffering solutions for recovery uphill They were dormant hardly learnt new things and keep repeating the same mistakes over time
Of course these internal critics were against themselves too both the ‘ purists ‘ freshwater and the saltwater ‘ pragmatists ‘ The behavioral economists and the apologists of efficient market hypothesis raved against each other .Although Paul Krugman noted that ‘ we are living through a dark age of macroeconomics ‘ he was nevertheless criticized by some other macroeconomists such as De Long for falling back on antiquated Keynesian doctrines ‘ as if nothing had been learned over the last 70 years ’ After all many scientists the economists believed ‘ do not leaf through Newton ‘s world machine ‘ principia mathematical’ to solve basic problems in the study of physics .
For the upteempth time in this fast changing technology age existing macroeconomics model ordinarily must ordinarily must also change perhaps at the same pace in which
today’s technology changes .The fact is clear: the poorest regions of the world mainly Africa and the middle east despite landslide GDP growth over the years which is measured declining share of world trade and especially the growing flaccidity in the natural wealth or assets that GDP in real terms precisely does not take into account .There is no need to re-emphasise what is known already –In a cursory analysis let us access challenges facing Africa as a leading case study in this episode .
AFRICA IN THE NEOMARXIST AGE
Like elsewhere around the world the relevance of international financial architecture to Africa cannot be underestimated at this critical period of her history in view of vital demand for development practice in the continent . The quality of growth and development in this territory is heavily interrogated . Greater macroeconomic stability attained especially in the SSA region over the years unarguably grossly masked and shortchanged the quality of this practice and vastly underdeveloped its needed density and pedigree not translated into lasting growth in the continent in the long run . Unfortunately the vicious trap cycle continues without remorse and alternative recourse since the colonial era .
CHALLENGES FACING AFRICA
As usually emphasized demand for development in the continent is under perpetual siege. No wonder nominal and precisely real development is similarly under siege and close to zero . What can we do ? .Challenges facing the practice stems from seemingly insurmountable factors such as poor mass enlightenment ; inappropriate demand for development ; cultural inhibitive supply factor flaccidity ; and above all lack of homegrown ideology OR which we have analyzed or diagnosed as acquired immune deficiency DDDCH syndrome [DAIDS] OR SOCIOECONOMIASIS . This can be regarded on aggregate as mental poverty or spiritual poverty which is the author of all poverty types be it income or economic form of poverty ; physical ;political and social forms of poverty .It is the world greatest plague behind social misery .Before we can resolve this problem we must tackle socioeconomic effect of Braindrain in the continent .
According to Daniel Cohen in the piece ‘Veils of Ignorance ’that two of three Americans sincerely believed that being black is synonymous to poverty and the rest did enthuse that blacks were probably unlucky . For the umpteempth time as earlier admitted yet the pinnacle of their civilization was black by origin .It is a derogatory statement to be made especially for the ignoramuses around being deceived by their shortsighted philosophers and who failed to uncover the strategic importance of the mother of all races and her indelible place in mortal antecedence .Underestimating her unparalleled antecedence surely marked the path to perpetual economic decline
THE CONCEPT OF BRAIN DRAIN AND ECONOMIC DECLINE
The concept of Braindrain particularly is more worrying which reduces the growth rate of available and effective human capital shrinks income reduces the existing size of income per capital and GDP capitalizing gross underdevelopment in the long run .That is why Africans need to take serious considerations on its economic impact and effect on labour and standard of living and international competitiveness [Hague and kim].It has greater impact on international trade and commerce and often occurs between nations states and communities and impact heavily on the climate of sustainable development [Uwaje,2001].
It is to be noted that the Braindrain scourge is one of the author of mass poverty and is synonymous to capital underdevelopment .According to international Organisation for migration and the United Nations Economic commissions for Africa ; for many Africans who went abroad and returns with professional expertise and as skilled labour there are many more that never returns . The scourge is particularly nauseating and steadily increasing .Between 1960-1975 about 27 ,000 exceptionally qualified professionals were estimated to have departed their home countries .And between 1985—90 another 60,000 also departed and since the continent has been loosing 20 ,000 professionals annually .This is particularly worrying because the figures do not include the student population that also departed to study abroad with no hope of likely return .Out of every 100 professionals departing annually only 35 do not return .About 64percnt of Nigerians between the age of 25 and older and 43 percent of all Africans living in U.S.have one bachelor ‘s degree at least .The Senegalese doctors in the U.S. CITY OF CHICAGO is more than in the whole of Senegal .Likewise if the Nigerian doctors at the general hospital in Kuwait should return home enmasse today that hospital will be closed down . There are many more Nigerian doctors and nurses in Saudi Arabia and the .U.S. THAN in the whole of Nigeria put together .
AS a matter of fact Nigeria has more than 21,000 doctors in the U.S. alone as opposed to over 30,000 local doctors . This figure for the U.S. is even more than real local estimates because not all Nigerian local doctors are active excluding those with periodically renewed licenses. . Imagine about 1.7 hospital beds and 0.2 doctors per 1000 people and infact one doctor serving about 15 -20 ,000 clients in the north ; this is not peculiar to Nigeria and the emigrated ones do not dream of coming back .Writing in the ‘Professionals And the Economy ’Prince Bola Ajibola the former attorney general and minister of justice while recalling his experience as a Nigerian envoy at the court of St .James and the alarming number of Nigerians that have left the shores of the country since 1999 once noted that : Frankly speaking a considerable number of those who ought to contribute to the revival of the economy are outside the country . Many of these migrants are professionals .They are currently devoting their talents in developing other people’s economies all over the globe .Sadly the many hundreds of thousands of naira it takes to produce a Nigerian graduate and professional right from primary school to the University would appear to be wasted when you find him or her doing menial jobs such as attendants in the London underground ’
He continued ; United Nations Conferences on Trade and Development [UNCTAD] estimates as at 1979 shows that each African professional between the age of 25—35 contributes $184 ,000 each year to the United States economy .Current estimates are that at least 100 ,000 Nigerian professionals are practicing in the U.S. .Thus conservatively , Nigerian professionals contribute about $18.4billion to the U.S.economy . If adjustments for inflation over 20 years are made the mount of money will be more astonishing .If you include Nigerian professionals living in Canada Europe Saudi Arabia and South Africa the amount will be $100billion [ more than twice of nation’s GDP during the period ].Whereas 30 ,000 doctors Nigerian born medical doctors .I dare say if there is a sudden withdrawal of Nigerian medical professionals [doctors and nurses ] from the united kingdom the national health service [NHS] will face dire consequences .’[defunct National interest Aug.24,2001pg.27]He believed Saudi Arabia will face similar ordeals with adverse effects on their healthcare system should Nigerian doctors and nurses be withdrawn . He was surprised Nigerians every where even in new Zealand ‘way down on the end of the planet ’ believing due to sheer distance will hardly come across any Nigerian but ‘to my utmost …. pleasant surprise ’according to him ‘ a reception ’was ‘held for me the same evening of my arrival by Nigerian professionals gainfully employed and contributing to New Zealand economy ’. That Nigerians are every where around should no longer be disputed and should not be the problem and many will never return according to our lawyer unless social amenities are provided . Social amenities or not people are always on the move even in South Africa where the climate is conducive professionals are moving in droves but who is filling the remaining vacuum ? Any way as we noted the scourge is a phenomenon across Africa .
In Ghana during the 1980s 60 percent of her doctors left the country putting enormous pressure on the healthcare sector while an estimated number of only 400 doctors are still left behind in Zambia out of close to two thousand doctors it formerly had . In 2003 Christian Science monitor reported within a decade in South Africa an estimated 20 percent of skilled workforce have departed the country and within five years in Zimbabwe professional workforce shrank by two third ; this is a grave situation . Now it lamented to replace this missing gap Africa spends 4 billion dollars annually importing some 100 , 000 skilled expatriate to fill the missing link . no wonder development of science and technology is stagnant and fast eroding as scientists emigrated in search of greener pastures .Forget about genocide such as happened in Rwanda I tell you this intellectual genocide not physical genocide far worst and far degrading .
The result today is known all no growth let alone development nothing moves and decline persists as population increases .Policy put in place like NEPAD etc lack leverage to take the continent to the promise land . We contended already that only enlightened people demand for development and can prevent social political and economic instability from degenerating . Today Africa remains the most scientifically backward territory of the world and behind the middleast is the world poorest region . no wonder some researches link that [ two out of three Americans ]thought that black is synonymous poverty . I S there ANY WAY OUT ? The spillover effect of Braindrain was profound .
THE SPILLOVER EFECT AND BRAINDRAIN
The UNESCO WORLD science lamented that the continent failed to make any impact on new materials and product development far lagging in the ICT sector despite marginal growth in recent times .A 1992 survey put the total population of African scientists and engineers at 20,000 which represents a mere 0.36 percent of world scientists and the continent is responsible for less than 1 percent [0.8 %] of world scientific publication .While its shares of patent is next to zero with no nobel laureate for any scientific discipline yet .It is a very serious situation because patents scientific publications innovations and technologies are the common yardstick of growing civilization .
According to the report at the basis of this declining growth is the deterioration of learning . Education is declining due negligible output contributed by science research and development .In the public institutions Africa’s expenditure is said to be less than 1 percent of GNP in which a good chunk of these scanty spending say 47 percent are pumped into agricultural forestry and piscatorial rearing whereas value additive agro allied and manufacturing services persistently lacked behind . As at 2001 UNESCO report summary by Catherine Mgendi besides Seychelles and South Africa no nation in the entire continent spend close to or 1 percent of her GNP on research and development .or larger chunk to sciences .
Enrollment in science has fallen drastically especially in advanced learning institutions a major reason for decline of science on the continent . In most countries about 0.5 percent of scientists and technicians existed for every 10,000 people in 1995 .let ‘ take a look at secondary and tertiary enrollment in selected African countries. In The nation article on African science Mgendi noted :
Selected African and Asian countries compared
Secondary and vocational school enrolment per 10, 000 people
South Africa ……………………………………………….1,085
Korea………………………………………………………..1,037
Gabon…………………………………………………………474
China …………………………………………………………457
Kenya ……………………………………………………………224
Tertiary Enrolment in the selected countries: compared
South Africa ………………………………………………………80
Korea ……………………………………………………………..381
Though the eight African counties rated favorably with six fastest growing in east and south Asia but the low enrollment in science is the greatest undoing .
Before we close this chapter , consider this sad and deplorable facts .According to the magazine –The Newsweek , the U.N. and World bank intensive studies that over the last 20 years which ended in 2003 Arab world average per capital growth rate had been less than 1 percent lower than that of Sub Saharan African region ..Unemployment was in double digits even though they were underestimated and labour productivity hardly changed since 1970s down to 1990s. In terms of access to foreign literature and ideas and technological development and exports middle east is the weakest and persistently the decline never abated. Likewise in Africa , her peer basket case , per capital income in Egypt in 1950 was rated exactly at the same level in South Korea but presently it is 80 % far lower than in the former times .During the same period under review the population of Egypt some 70 million people filed only 77 patents in the U.S. compared to 50 MILLION South Koreans filing 16 , 328 patents works .Today non –oil exports of Hungary is much bigger than all of African countries put together . These are some of the grievous mistakes and Braindrain factor could not have been resolved and exterminated completely
Note :Braindrain like many of African challenges to sum it up is a capacity problem correcting this shortfall is no doubt a function of sustainable capacity building which can only be harnessed and resolved in the longer term .
With this scourge Africans seem to be contributing to growth elsewhere to the detriment of their motherland .It should noted Braindrain has two types or categories : fist we have colonial Braindrain which is slave trade using forceful expulsion of people to foreign lands but now the rest is history ;what we have today is neocolonial Braindrain in which the lure of civilization and greener pastures lured Africans persuasively to serve to grow the superior homeland. This is modern slavery –the most deceptive fighting local development like jihad or shall we say second slavery ?
Africa : the Land of crisis and natural wealth
There is no doubt that Africa is the richest territory of the world and cannot afford to do less since it controls or has 40 percent of world total strategic minerals and the Congo basin harbors half of these with the Niger delta having the highest numbers of rivers and waterways worldwide .70 percent of 300 ,000 species of world total fauna and flora are located in Africa but Niger delta controls 60 percent of these . World largest gas deposits according U.S. GEOLOGICAL STATISTICS is located in Nigeria [ and not Russia or Iran ] probably around 600tr.scf [as opposed to official 200tr.scft .The world largest bitumen probably lead and zinc according to one mining experts are found in Nigeria .South Africa controls world gold reserves diamond and next to Russia in platinum and a world leader in palladium .Every state in Africa is endowed with one resource or the other . Africa controls more than 30 percent of world gold reserves The gulf of guinea is one of the richest and leading hydrocarbon regions of the world
Unfortunately this good development had become a gory tales and in some African countries natural resources have become a curse and not a blessing . From the blood diamond fields of Sierra Leone to the democratic rep. of Congo warring fields where a group of countries are at loggerheads and fighting over solid minerals down to the Angolan terrorist enclave , natural capital have been a source of imprecation and social upheaval .Let’s take look at this known statistics in an historical reminder ;
20 percent of Africans are under condition of conflicts
From the mid-90s upward beginning from Rwandan genocide more than a dozen countries were sucked into armed conflict and crisis perpetuated in the battle to control natural capital .The great lakes region together with Sudan captured international attention and they are a massive region quite as large as western Europe .
Sudan has been mired in conflict all but 10 years since independence in 1956 while African first world war is going in the Congo dr. where 6 countries battle it out over solid minerals .
The effect is poor capacity building and average per capital income is lower than in 1960s
Nearly 50percent of SSA region citizens live below poverty lines the figure is 90 should we use poverty profile . etc.
Border disputes abound and challenges of divisive pluralism as noted by Emeka Anyaoku in the piece ‘South Africa and the challenge of divisive pluralism ’is becoming clearer direr as burden of development increases which can only resolved by grass root empowerment .
The only condition for sustainable growth and development is peace and social stability which h will also create a platform for good trade and the ability to cover her trade gap and development gap with the rest of the world .
Averting cultural Brain drain :A bigger scourge
As a result of this horror tales cultural brain drain also became the natural consequence
Of this traditional brain drain. IF we fail to revive and value our culture as the last asset of black man we nothing to gain in the near future .Although this drain is not peculiar to AFRICA but SHE IS THE most affected of all regions of the world .For instance half of world 6 ,000 languages are expected to go extinct in this millennium .Though skeptics may not believe but close to 10 languages or 9 are already extinct in Nigeria out of bout 526 local dialects .Similar gory tales loom large across the region .IT is worst gory tale any region could experience.
By this time we need to realize that Malaria alone that kills a child in Africa every 30 seconds is not just taking more than 1% off African GDP together with other epidemics like tuberculosis sexually transmitted diseases, especially HIV/AIDS ,cancer of all types etc [that could be slicing between 10-20 % of potential growth ] but the slow nature of development and the existing unsustainability of previous development gave us a credible evidence of the long and tortuous road to development .The concern is if Africa does not innovate as noted by Philip Emeagwali it will definitely perish .We note that the traditional brain drain was long caused by cultural brain drain noted in the complacency of earlier civilization which can only be corrected by innovation to save the theft image that the word ‘dark age ’had bestowed on the continent especially in the post-colonial age.
………………contd
.
General effect and International trade
It can be contended due to low capacity building , widespread economic , political crisis and large trade gap the continent is the most marginalized continent in the world .Blooms and Sachs [1988 ] noted that between 1980 –1996 it was the only continent to experience absolute trade decline whereas the volume of goods and services have grown over the years in other competing territories but in Africa has grown below the GDP .Between 1980—90 its share of world exports stood at 3percent but declined to 1.95 percent in the period between 1991—2001 .During similar period that of Asia grew from 11 percent to 18 percent in the latter period . The concentration on natural raw material commodities encouraged the decline .Dollar and kray [2001] also provided evidence that a group of developing countries that opened up their economy recorded astronomical growth . Uncompetitive economies like Africa would always stay behind due to loss of market share , unguarded trade liberalization , tariff barrier , marginalization from world markets with annual loses of more than 70billion dollars , lack of industrial goods and poor terms of trade or bad trade policies , protectionist policies , higher capital flight crisis .
To enumerate a bit , industrial goods are seriously lacking grossly from exports .The shares of manufactures in her exports since 1995 varied between 32-36 %. Whereas in south Asia the ratio stood at 78—79 % and for east Asia and the Pacific hovered around 78—83 percent with manufacturing accounting for one third of export .High transportation cost mainly affecting location of industrial activity and freight rates .Rodrik [99] commenting on the marginalization factor he observed unfavorable terms of trade , trade restriction practice of the trade policies , The GATT Uruguay Round of trade negotiation concluded in 1995 introduced new changes that led to WTO establishment .The internal causes such as trade and exchange ate policies ; primary driven products haunted by price indetermination ; and uncompetitive nature of production. There is too much capital outflows .Collier , 1997 ]9. and Ajayi [ 1996 ]/[1997] argued a higher proportion of Africa’s wealth were stashed outside the continent in the form of capital flight and she integrated into global economy in a negative sense. They contended that capital flight varies between 24 to 134 % of GNP .This is also consistent with ECA study of 30 countries in the period of 1970—96 mounted to about 187 billion dollars .Infact it exceeds 200 percent for a group of eight countries in the ratio of capital stock to the GDP with weighted average of 172 percent for the group .Countries such as ANGOLA , Cameroon , Cote d ‘ivoire Congo [democratic] and Nigeria .In the last twelve years NIGERIA ALONE earned between 400—500billion dollars and every year 60 percent of this passive oil wealth were carted into western metropolis .Uneven flow of FDI is another challenge facing Africa over the last twenty years which ended at 2002 compared to the rest of the world .
FOREIGN DIRECT INVESTMENT---[ FDI] -INLOW
AFRICA----------------------------------THE REST OF THE WORLD
Share % ? Share %
1991—96-----$4.6b./1.8%---------------------------------$254.3b.
2000--------- 0.6 %-----------------------------------------$1.4trillion .
2002----------- $11b.----------------------------------------$651.2b.
------For the decade 1970s—80s , it reduced to half in Africa compared to the rest of the world
-----In 1980s the global FDI Stock as percentage of GDP was 5.3 percent as opposed Asia ‘s share of 28.1 percent and Latin America and Caribbean share of 8.1 percent by 2000 .And thereafter declined .
-------
-----Therefore she failed woefully to tap the economic incentives provided by FDIs mainly bridging savings gap and the ability to transfer technology
With the benefits of globalization gone to the advanced countries the world has become more unequal over the last 200 years and despite being the most endowed continent is still the poorest [together with middle east ] region in the world controlling less than 1 percent of world trade .In the paper delivered at the 7th Ojetunji Aboyade memorial lecture professor AJayi observed that open trade regime though useful will not propel a country on its path to sustained growth .Those nations that have grown faster are those that invested a high share of GDP and maintained macroeconomic stability .The anchor of Africa ’s growth prospects he noted must be appropriate policy measures human capital institutions and infrastructure .Perhaps if done emigrants will one day return and that may not happen in their lifetime due to recklessness of local leaders .
THE EVOLUTION OF MICROFINANCE AND GLOBAL PRACTICES
EVOLUTION OF MICROFINANCE AND GLOBAL PRACTICES 1
It is unusually observed that the concept of microfinance today is the world fastest growing market technology and the most effective economic model ever contrived by man. It is more appropriate to poverty stricken climes and redistributionist societies offering reliable salvation dividends complete with robust financial innovation required to empower extremely impoverished people of the world .It is basically maneuvered not only for grass root empowerment but also for development of sustainable income generating projects thereby uplifting the living standard of the abject citizenry .And in many cases so to say help the poor build wealth and exit poverty . According to Grameen [1966] ‘it is the right of the poor ‘.
Initially the objective of the study was to target the industry in its pristine form and make comprehensive analysis in comparison to global practices. However it was found out that a growing body of relevant researches and existing literature abound which are hereby reviewed in this piece in a vigorous analysis resting the earlier resolve .The paper is divided into 4 sections After the introduction or the background the concept of microfinance falls under sections 11 .Section 111 discusses or takes a cursory look and analysis of the top leading global institutions in the industry. And section 1V concludes and touches or exhumes the local environment in Nigeria and its challenges and untapped potentials. However these sections are spread into several chapters for convenient and elaborate readership
2.0 THE CONCEPT OF MICROFINANCE
Microfinance is the provision of financial services to the poor the unbankable and the low income households without access to formal financial institutions[Conroy ,2003] Besides being banking to the poor its progammes are broad based which make loans accessible to the poor and savings mobilization are endorsed especially for advanced [MFIs] in addition to other financial services are provided to micro enterprises and SMEs needy businesses
Nevertheless of all the sectors of microfinance micro credit is a foremost element and a leading component in the industry opening up the economy of the underprivileged and a new lease of life for the marginalized communities and economically active poor.
2.1 MICROCREDIT
According to Wikipedia micro credit specifically refers to small loans to the unemployed to poor entrepreneurs and to those living in poverty who are considered unbankable .It is a unit of microfinance which is the provision of a broader range of financial services to the poor It is also the extension of informal credit to the micro entrepreneurs. This helps them engage in productive venture .It has been touted as the last panacea for poverty alleviation in some countries .It succeeded immensely being a largely driven private sector initiative and avoided being extremely politicized and consequently has also outperformed all forms of development lending [Abolo,2001]
Given the unwillingness of the formal financial institutions and the poor innovation of the sector which tends to be reluctant to micro enterprises citing too much transaction costs associated with micro loans processing or the unreliability of MSMEs dubbed as high risk .A new market for micro credit was developed where the risk of default processing and other administrative expenses for business start up are manageable
Micro lending is a more effective complementary means to financial intermediation and a viable alternative to traditional practice of economic development .It empowers both individual and community for sustainable growth and development.
Its sets of principles are different from general financing or credit such as employment generation trust building micro entrepreneurial capacity building micro entrepreneurial initiative development socialist development lending and a strategic tool for socioeconomic development .Micro lending empowers the individual which has a multiplier effect as they contribute economically to the development of the communities they live over the long haul .It is also a saving grace to the lab our market as formal sector large sized companies ‘ decline .
THE IMPORTANCE OF WOMEN AND GLOBAL ECONOMY
Women have been vital resource a predominant focus and increasing priority of micro credit institutions and agencies worldwide. Women loans are repayment proof nearly freed of default and more beneficial to the family than loans to men and have more socioeconomic impact while bridging gender inequality gap. They are a good credit risk asset managing credit more efficiently invest income towards family welfare .They also benefit higher social status as they develop capacity to provide increasing sources of family income .Experience has also shown that of the 1. 2billion poor people worldwide women are in the majority and are responsible for the upbringing of tomorrow ‘s children .The consequence is that the poverty of women usually affects more humanity than it seems figuratively which leads to physical and social underdevelopment of their children laying foundation in stark negligence for tomorrow’s mass poverty .
An increasing number of Microfinance institutions [MFIs] are beginning to focus on women borrowers – truly the world worst poor people .SKS microfinance Promujer Nemaste Direct LAPO in Nigeria and the Grameen Foundation among others currently emphasize on the predominance of women in the socioeconomic arena and informal sector market economy.
FEATURES OF MICROCREDIT
1. Those that lack collateral
2. Individuals with no steady employment
3. Lack of client verifiable credit history
4. Extension of micro loans and clients are unbankables.
5.Encourage grass root empowerment
6.Execute self employment projects and boost micro entrepreneurial development.
7. The target is largely the informal sector.
THE ORIGIN AND TRADITON OF MICROCREDIT
According to Wikipedia micro credit as a financial innovation originated from Bangladesh where it has succeeded in liberating the extremely impoverished local peoples mainly the unbankables enabling them exit poverty and build wealth and generate capital through self empowerment and sustainable income generating projects .Its success today has largely encouraged the adoption of micro credit technology into mainstream banking and attempt was made to reclassify this league [unbankables] for the very first time as pre bankable.
With this reclassification it is increasingly gaining ground and credibility in the mainstream finance industry and various micro credit projects were contemplated by large finance organization as reliable source of future growth .When it was begun by ACCION and GRAMEEN in its modern incarnation in the mid-70s as a pilot projects only a very few gave it a chance of survival let alone its nascent or burgeoning global institutional appeal .It is the industry of now and the future the next big thing the last hope of the underprivileged and the ideology of market communalism.-the building block to Marxist homeland.
With the scathing remarks of the 1970s hardly dying away humanity had entered a new dawn and eventual potential relief for the less privileged was found as the industry evolved . The concept of micro credit can be traced back to portions of Marshall plan in the immediate post world war 11 the middle of 20th century .Some sources also link it back to the mid-1800s and the writings of abolitionist/legal theorist LYSANDER SPOONER who was a crusader of the benefits of numerous micro loans to the poor for entrepreneurial activities as a way to alleviate
Poverty .The New York Providence Fund is another tested historical source. All put together are launching pad to the incarnation and burst of the post -70s .
THE ANCIENT CONCEPT AND MORDERN RENAISANCE
There are historical differences between the ancient and modern concept of micro credit as expatiated .But the origin of the ancient started in Egypt where the ancients had found a means of buying now and paying later [creditisation]and the Egyptian equivalent of the term ‘charge it ‘came into being .When the Greeks came along a bit later with their belief in the worth of an individual citizen freeman became an exalted thing . That someone can be trusted in all aspects of life even commercial transactions influenced credit economy and the use of micro credit began to spread .The Romans came later and were only their followers established procedures for this budding market Which evolved as micro loans setting penalties for default or failure to pay .
Therefore this indicate that socialist lending began before capitalist lending and a proof that the ancients started micro credit and the entire credit market and provided a means of recording transactions laying down laws and establish man ‘s right to go into debt using the laws to regulate debtor[poor] – creditor [MFIs] relationship. Although it persisted through the millennia but the practice was heavily resisted due to its inadequate perusal as an incentive for egalitarian market economic building until fairly recent times. By the turn of 20th century when lending was well developed transcendent growth in science and modern theories beginning from LYSANDER’S among others it regained Pre eminence .though at a very slow pace until the 1970s of the YUNUS and ACCION
The industrial revolution [1770-1914] could not have been possible without micro credit and the evolution of the works of cottage factories during the period s such as the pin manufacturing shops noted by Adam Smith-[the exponent of laissez faire and classical economics ] could not have been possible without it and a contributory factor to Anglo Saxon or Germanic civilization .
SMES DEVELOPMENT INITIATIVE AND INDUSTRIAL REVOLUTION
Professor Alexander Geshenkron in a comparative study conducted ‘Economic Backwardness In Historical Perspective ; A Book Of Essays [1962] England ‘ . He noted the success of industrial revolution in England rested largely on the success of SMEs which require little capital to operate in addition to founder’s specialized entrepreneurship . As an economy categorized as moderately developing Germany also flourished during the period through them
And depended heavily on the Banking sector for their success . Likewise the quantum leap by Japanese economy during the similar period presented a more remarkable picture of the power of these wealth machines to support her phenomenal development prior to World war 11 .The secret behind this economic miracle according to Professor Yamamuva was simply cultivated by phenomenal growth in commercial lending to micro enterprises .This was made possible through the great Zaibatsu – an equivalent of modern development banking model . Today the world sole super power the United States followed similar universal pattern of mass development For instance Banks in Louisiana were noted to have relied heavily on SMEs as engine of growth and so heavily financed them for purposes of economic welfare of the Nation ‘s citizens It is the same logic everywhere .The developing countries also after independence have pursued and implemented similar policies to no avail .owing to socio psychological self imposed barriers
THE ADVENTURE OF MULTIDIMENTIONAL MICROFINANCE
With the emergence of roaring 70s pragmatic microfinance has come to stay much touted as the last panacea in the eradication of mass poverty and empowerment of the poor around the world .Beginning with micro credit or micro lending has come to include a broader range of value - added services [ credit savings micro insurance micro housing micro leasing etc] Originally according to Enugu Forum [ 2006] it is based on traditional forms of community financing amalgamating ideals of traditional finance and development assistance – a sort of socialist lending has grown to become a household name in the territories of Africa Latin America and Asia The microfinance movement evolved in the early 1980s.and Bangladesh and Bolivia were noted as major protagonists at the forefront of the movement which has gained increasing patronage over the last 20 years from multilateral agencies [ donor ] international financial institutions [IF Is] and commercial bankers flocking to the business.
THE ROLE OF MICRO INSURANCE AND SUSTAINABLE CAPACITY BUILDING
Getting down to the brass tacks it is to be noted that the long standing boom in the industry cannot be possible without micro insurance It is the lynchpin of successful micro credit projects oriented towards the sustainability of this venture especially undertaken in a sensitive and responsive economy .Simply put micro insurance is the provision of grass root insurance services as a basic strategic tool to securitize the micro and small businesses from alarming corporate mortality in an economy According to experts its services provide a lasting solution against unpremeditated mortality common among MSMEs especially those trading with microfinance credits .
Evidence of checkered antecedence abound in the nation’s history in which concerted efforts were made by successive administrations in the empowerment of the people through various micro credit projects and several poverty alleviation progammes Although each of this scheme Started well initially but fizzle out along the line closing shops while the target masses returned to their former poor state Their essence was to serve these unbankables and marginalized MSMEs .Insurance experts have noted that the schemes did die a natural death due to lack of insurance .Consequently could not provide a lasting solution to intended suffering masses .BETTER LIFE FOR WOMEN INITIATIVE and NAPEP were prominent samples .This ignorance has ravaged the country for along time both public and private sector have wasted millions of lives that could have been saved .
With the incursion of microfinance banks [MF Bs] the problem has persisted haunting ignorant depositors patronizing their services where unsecured micro credit is the order of the day .Educating the masses on the method to insure their deposits seem not to be their immediate priority .The policy makers and industry operators perhaps are ignorant of the implication and increasing corporate mortality in the country .The schemes practitioners are only interested in putting down a condition for accessing funds that are at best not truly insured failing to save the future of the funds .
FAILURE OF INSURANCE PRACTITIONERS TO CREATE MASS AWARENESS
Insurance businesses in the country are basically metropolitan based and hardly any awareness being created in the countryside .As the formal sector insurance industry potential businesses and market decline the level of awareness has refused to grow .Those who care about grass root limit their attempts to life products which is usually comprised of long gestation period not attractive and affordable to the peasants with no surplus funds to throw round or at best concentrated on third party motor insurance .They believed the grass root poor or common man has no muscle to flex around or pay much premium in comparison to former market size (Nwoji, 2008). Hardly a few concentrated efforts on grass root penetration even though they claim to do so .This is vital because the poor need insurance more than the privileged considering the over 148million un served potential market .in the country .
According to experts micro insurance is the solution to the failure of micro and small businesses especially those with micro credit from MFIs It ensures sustainable capacity building both for the institution [supplier] and the target audience in the long run .In Nigeria today more than 90 percent do not have any form of insurance Hence it offers a reliable medium to address this huge gap and deplorable cultural barrier that separates the nation from development market .Daniel[2009] also concluded it is characterized by low premium low coverage limits and sold as typical risk pooling and marketing arrangement are usually designed for low income people concentrating on marginalized grass root businesses not served by mainstream typical social or commercial insurance companies
Ojinaka [2009] argues that it is more profitable than all industrial risks put together. It is very cheap pose fewer problems than the traditional insurance in addition to the fact that the poor cannot instigate claims. To avoid failure of micro insurance projects it suggests group bonding based on societies bodies unions and associations as precondition for success .This distribution channels will be prime movers compounded with appropriate regulation monitoring and enforcement. Its sustainability would translate into sustainability of micro credit projects in the long run preserving capacity building .
OPERATIONAL STRATEGY PACKAGING AND MARKETING ARRANGEMENT
Micro insurance follows simple marketing arrangement For every micro credit project to be undertaken it should be attached .For instance where money is given to a borrower for a motor cycle or a sowing machine insurance package could be included using the distribution channels. It is a form of security and not a luxury the study noted .The road to sustainable economic growth can be harnessed through this practice liberating our people from mass poverty and sustain wealth creation capacity. The strategy will take care of mass market the petty traders farmers SMES and not saturated top market
Few companies that have tested the virgin market can testify to its growing appeal and profitability. In 2009 the Group managing director of Mutual Assurance Akin Akinbiyi affirmed this potential That his company main product was micro insurance He concluded that with total income of 1.3billion naira coming from the sector in 2008 alone covering policies worth 100,000 naira and per capital premium payment stood at100 naira .While it also paid over 300 million naira during the period as brokerage fees and commission on businesses in the sector .It is a promising experience that refocused the business as he pledged never to run after government account again.
Not only will it grow the economy it will also potentially combat crime violence theft and prevents slums through development finance insurance .It can also prevent frequency of losses
boost competitiveness and life expectancy bridge gender inequality protecting education employment generation sanitation influenced population control and parade intimidating corporate profitability as in the case cited above .Unfortunately Nigeria is a non starter in the business compare to other advanced countries of Europe and Asia .The role of micro insurance is to build capacity nurture sustainable social development maneuvered to eradicate mass poverty transforming the dividends of successful micro credit project into dividends of our nascent democracy .
HUGE MARKET POTENTIAL
In Nigeria today our communities are lying dormant being heavily humiliated and annexed by mass poverty .Thousands of micro insurance companies will be needed .For instance in Sierra Leone about 15 insurance companies are currently operating .Whereas Ijebu Ode Local Government in Ogun State has none presently which is the same size by population density as the 3million people in sierra Leone if not more .Not to talk of Alimosho local government formerly the largest local government in Africa before it was broken off into 6 local development Authorities Many countries on its own Even after the split the Ikotun -Igando LCDA alone is roughly the same size as Singapore and bigger than Equatorial Guinea Mauritius Sao Tome put together and some states in the federation We are yet to see one single insurance company located there ,let alone a micro starter .The market potential is as huge as the market ignorance
OTHER SUBDIVISIONS AND NEW INSTITUTIONS IN THE MARKET
Besides micro credit trade and micro insurance other sectors in the market include micro housing micro leasing Micro health micro industry micro leisure micro banking and development finance a new innovation of Development Finance Group [DIG] .All this can be noted in the advanced microfinance market [ AMM]of Asia etc.
With the new microfinance technology recently advanced by Microfinance Africa [MIFA] undoubtedly the world first potential microfinance rating bureau specifically focusing on highly untapped African market The entire world microfinance market had been reclassified as Advanced Grey Market [AGMMs] They are advanced but certainly a grey market .Given the magnitude or enormity of mass poverty bedeviling the territories of Asia andLatinAmerica .Excluding the OECD Club the rest of the world are classified as Blockbuster Grey Market [BGMMs] .That is un developed microfinance market of the world . Even in the advanced market some 10 percent poverty levels were found in the 90s [also AGMMs].The grey market of Africa Middle East parts of Asia and Latin America is highly extreme and a blockbuster in that regard .We know the strategic benchmark is usually mass poverty ravaging more than 80 percent of world population should we use UNDP Poverty profile as calibration and not World Bank ineffective poverty line concept
The entire formal market size institutions and models can easily be reclassified repackaged and imbibed into lower cadre microfinance market where suitable to enable the market diversify risk spread and serve the complex needs of the economically active poor while keeping undiluted the ideals of structural microfinance . .This is naturally expedient thing to do and must be fully adhered. Given the fact that the size of the existing market institutions at a given period determines the adequacy proportion of development capacity and sustainable practice vital to harness sustainable mass poverty relief and possibly eradicating the menace especially where microfinance neokeynesian [MNKs] ethics are imbibed by state political will
This needs a good development planning .Many Institutions can be nurtured such as micro- finance hedge funds[MHFs/MIHEFs] microfinance investment banks[MIBs] and houses[MFHs] microfinance discount houses[MIDIHOs/MDHs] micro venture capital [MVCs] community sovereign wealth funds[COSOWEFs] private wealth fund [PWFs] micro asset managers [MAMs] micro mutual fund [MMFs] private equity microfinance corporation/shops [PEMS] and micro investment security institutions[MISIs] and a host of others have been advanced by [MIFA]as a means to spread wealth .This is more suitable for territories with large informal sector which often constitutes 70-80 percent of the economy A nation can then have dual financial system adding the micro financial system to serve the huge informal market albeit better with grass root oriented laissez fairer regulations and micro prudential standard that are affordable to the microfinancial markets Most informal sectors if not all are heavily un served and similarly underserved even with the effort of informal institutions tirelessly providing inefficient services .The above institutions would serve in the micro financial credit markets .
According to [MIFA] in Nigeria alone they are to cut across the nation’s entire 97,000 economically passive communities .With a good political backing the nation can create wealth worth more than the U.S current G.D.P[15trillion dollars/2009 prices] prior to the maturity of Vision2020 and poverty can be eradicated in a decade or even less –It is an effective model one to tame the evils of inflation that the Keynesians and the monetarists and the entire macroeconomists have struggled in vain after over the last 30 years or more .But we seem not to believe our intellectual power desecrated in favor of western models [i.e. outdated neoliberalism] that could not spread wealth to the impoverished nations and the potential of our population market[POM] which is the major criteria in this micro-metric redistributionist dual financial model .
Should China adopt this dual micro financial model how much wealthier will she be in terms of GAPco-efficients [not GDP] and then making efficient GDP size in the long run since it has a very large poverty market and population market respectively. Nigeria can even be far richer than she does in this regard if we consider the untapped wealth of her natural wealth the POM size and making money from the export of this service to the rest of the developing territories where the model actually fit in the same way as the British export her financial services indisputably as the best in continental Europe Not left behind the full exploitation of her highly untapped technology base and optimization of 60 percent of her arable land lying moribund it can indeed be a world superpower while exploiting the mystique of her ancient esoteric knowledge system like the IFA oracle in the Yoruba land among other untapped esoteric religious power spread nationwide fully exploited and turned into science like the Anglo-Americans
A NEW GLOBAL ORDER : WLMNs/WOMILONs
Truly speaking in the World League of Microfinance Nations [WLMNs] no top market nor the middle market is found .That could be extreme We may come down to the level of poly-myopism in the industry and classify the noted markets as both top and mid-ranged while the least Developed Microfinance Nations [LDMNs] or territories are non-starters mainly in the Microfinance Dark ages. Their grades are sensationally hyper-critical and objectively over sensitive using the menace enormity as measurement criteria and highly unprejudiced.
The neomarxist free market envisaged to rival neoliberalism presently and even though through its instrumentality is far older than neoliberalism has no global structure .With the rise of Bretton Wood treaty United Nations was formed in 1944 and named by FDR .The World Bank and the IMF followed thereafter spreading the tentacles across the globe .Hence a global structure was created based on the Keynesian ideology and by the late 70s to early 80s Adam Smith free market principles gained renaissance through neoliberal exponents Milton Freidman and Fredrick Von Hayek The rise of globalization was added plus to western powers profiting immensely from its inequity .On the hand the antiglobalisation protesters worldwide unfortunately protesting at the cost of their lives have no voice which neomarxism brought as relief to their salvation door .It is expected to cover world poverty market—approximately 80 percent of world population .To erect structure for elusive equalitarian globalization they also need a voice –the international macro financial architecture to complement the effort of global mainstream market
WLMNs is equivalent to U.N. OR can be called United Nations For Macro finance [ UNFORM /UNFM ].
SOURCES OF MICROFINANCE FUNDING
THE BACKGROUND PRINCIPLES OF MICROFINANCE
CREATING A CONDUCIVE CLIMATE FOR ENTREPRENEURIAL DEVELOPMENT
During the industrial revolution or Lysander’s period around 1800 J.B. SAYS a French economist observed that an entrepreneur is the one that shifts resources out of an area of lower yield into a more profitable avenue parading higher productivity and greater yield .But Says hardly mentioned who an entrepreneur is
Centuries after the coinage by Says there had been total confusion about the emerging terminology The definitive appeal was highly vague and ambiguous It is not exactly clear whether a trader or a businessman who hardly create something new is an entrepreneur neither does he create a new satisfaction nor a new demand
Today it seems to include every tom dick and Harry in the business Is that so
Although the neoclassical economist introduced the word into our lexicon the coming of Joseph Schumpeter did more than locate the place of entrepreneurship in the economic analysis Corroborating Lysander’s to a larger extent Schumpeter once described the role and impact of combining credit plus new means of income production flows .This is regarded as ‘ fundamental phenomenon of economic development ‘ and the process known as enterprise is noted as the soul of human material progress . Factors influencing this practice such as cultural development [dominant values] , human capital availability , institutional development and policy choices according to [Utomi,2008]. are fundamental resources available to leadership for the prosperity of their nations. Any abrasion against these ideals better explains why nations are poor .
Unknown to the study More worrisome is the fact the ability of even leadership is heavily constrained in an ocean of ignorant follower ship or where objective follower ship is grossly lacking This would certainly bounce back as unbearable burden on the former and could truncate earlier golden effort .Entrepreneurial revolution will be very hard to attain in the developing territories unless a certain level of information democracy is first attained . This promotes mass enlightenment as the very first requirement of advanced economies .The reason is clear; objective follower ship often makes the work of ordinary leadership more effective . How so wise to follow this ideal which has distinguished the poor nations from the rich and mighty .Information democracy provides institutional incentives for the development of Utomi development factors [UDF] does not need an effective leadership where objective follower ship the very first requirement that could potentially nurtures the former is seriously lacking or ill which can only capitalize capital underdevelopment. Since they control the natural forces that throw up incentive to nurture this leadership effectiveness it holds the ace for rapid capital development of vastly underdeveloped nation . Therefore the relative proportion of information democracy existing in a socio- economic system determines the size of a nation ‘s development capacity
The truth is that only enlightened follower ship can demand for development It is a fundamental phenomenon of socioeconomic development that catalyses entrepreneurial development as the very soul of human material progress .The submission also is that only robust socioeconomic system can nurture maintain sustain and safeguard virile economic system as a platform for entrepreneurial revolution Building up cottage industry from the scratch into a multinational is made possible by such Para macro- economic efficiency. Once social value is created economic value where created and possible can then be sustained and leveraged for capital development [not sustainable development ] to build which is the last stage in the development cycle. market. If indeed this process ‘enterprise ‘ is the soul of human material progress information free market as a social enterprise is the very soul of social material progress .Value innovation can truly be cultivated by it which is the primary function of an entrepreneur .
A micro entrepreneur was identified as the steam engine of industrial revolution The strategic impact of this revolution which was nothing less than the promotion of economic freedom and was first made possible by art of social freedom [information democracy] promoted by the Renaissance [1300-1600] Although a leading exponent of monetarism professor Milton Friedman once noted that without economic freedom there can be no political freedom Circumstances over the last 500years of western civilization has proven otherwise that social freedom is the totality of all freedom brands in the face of ever elusive cultural freedom underpinning the institution of liberty and that without intellectual freedom there can be no spiritual freedom and without spiritual freedom also there can be no intellectual freedom .Also without intellectual freedom there can be no economic freedom and without economic freedom there can be no political freedom. This formed the auto –freedom art of social enterprise or what is called the Great Charters Of Liberty [GCL] functioning according to noted equation which provide a virile framework for a robust socioeconomic system .Inability to liberate the auto-run device of this art has often dampen development zeal in the developing countries market greasing the cycle of counter-development trap imbroglio boosted by the separatist league and then the elusive search for mass development and entrepreneurial revolution perennially persisted in vain.
Utomi [2008] once noted why is high value enterprise not so easily pursued by a lot of interested individuals that really desired to make huge profit .This is not really linked to risk or unpredictable outcomes per say but the realm of this socioeconomic system is structurally beleaguered perpetually alienating the nation from potential development density that might take centuries to nurture and recover .Therefore the cost implication of development forgone accumulated over time multiply as mass poverty truncating the effect leverage of development market policy choices and successive institutional legacies without remorse
The practice of microfinance today in Nigeria has been fraught with structural indignities. Unmanageable credit risk steep interest rates increasing repayment defaults strategic market deleveraging and lack of national disposable data resources are symptomatic evidence of poor performance and lack of national micro financial system .Even where the risk or noted defects are avoided the entrenchment and optimization of the system is another matter The climate noted above must be created for any successful microfinance projects to be cultivated They formed the principles of socioeconomic microfinance that will ensure a sustainable and conducive platform for its cultivation launching entrepreneurial revolution in the long run. These are background principles not related to the industry but a necessity for its success . And Upon this framework the fundamental principles of microfinance can be successfully launched . It not only determines the quality of the practice but also strengthens and multiply its socioeconomic impact .In the microfinance developed territories or advanced grey market besides OECD Club this is grossly lacking or less exploited which fully explains why poverty is still very high there Besides India which unluckily has extensive population market Bangladesh and Bolivia are a poor sample of the industry general problem and the ailment of microfinance usual ineffectiveness and market insensitivities . Policies and institutions have been a colossal failure due to this challenge that took half a millennium for the Anglo Saxon to battle which can only be prevented by resolving the identified socioeconomiasis .The dichotomy between the rich and poor nations was linked to this factor .It is both internally and externally imposed and no matter how they try it keeps strangulating every projected future development agenda from attainment in the territories.
It is unusually observed that the concept of microfinance today is the world fastest growing market technology and the most effective economic model ever contrived by man. It is more appropriate to poverty stricken climes and redistributionist societies offering reliable salvation dividends complete with robust financial innovation required to empower extremely impoverished people of the world .It is basically maneuvered not only for grass root empowerment but also for development of sustainable income generating projects thereby uplifting the living standard of the abject citizenry .And in many cases so to say help the poor build wealth and exit poverty . According to Grameen [1966] ‘it is the right of the poor ‘.
Initially the objective of the study was to target the industry in its pristine form and make comprehensive analysis in comparison to global practices. However it was found out that a growing body of relevant researches and existing literature abound which are hereby reviewed in this piece in a vigorous analysis resting the earlier resolve .The paper is divided into 4 sections After the introduction or the background the concept of microfinance falls under sections 11 .Section 111 discusses or takes a cursory look and analysis of the top leading global institutions in the industry. And section 1V concludes and touches or exhumes the local environment in Nigeria and its challenges and untapped potentials. However these sections are spread into several chapters for convenient and elaborate readership
2.0 THE CONCEPT OF MICROFINANCE
Microfinance is the provision of financial services to the poor the unbankable and the low income households without access to formal financial institutions[Conroy ,2003] Besides being banking to the poor its progammes are broad based which make loans accessible to the poor and savings mobilization are endorsed especially for advanced [MFIs] in addition to other financial services are provided to micro enterprises and SMEs needy businesses
Nevertheless of all the sectors of microfinance micro credit is a foremost element and a leading component in the industry opening up the economy of the underprivileged and a new lease of life for the marginalized communities and economically active poor.
2.1 MICROCREDIT
According to Wikipedia micro credit specifically refers to small loans to the unemployed to poor entrepreneurs and to those living in poverty who are considered unbankable .It is a unit of microfinance which is the provision of a broader range of financial services to the poor It is also the extension of informal credit to the micro entrepreneurs. This helps them engage in productive venture .It has been touted as the last panacea for poverty alleviation in some countries .It succeeded immensely being a largely driven private sector initiative and avoided being extremely politicized and consequently has also outperformed all forms of development lending [Abolo,2001]
Given the unwillingness of the formal financial institutions and the poor innovation of the sector which tends to be reluctant to micro enterprises citing too much transaction costs associated with micro loans processing or the unreliability of MSMEs dubbed as high risk .A new market for micro credit was developed where the risk of default processing and other administrative expenses for business start up are manageable
Micro lending is a more effective complementary means to financial intermediation and a viable alternative to traditional practice of economic development .It empowers both individual and community for sustainable growth and development.
Its sets of principles are different from general financing or credit such as employment generation trust building micro entrepreneurial capacity building micro entrepreneurial initiative development socialist development lending and a strategic tool for socioeconomic development .Micro lending empowers the individual which has a multiplier effect as they contribute economically to the development of the communities they live over the long haul .It is also a saving grace to the lab our market as formal sector large sized companies ‘ decline .
THE IMPORTANCE OF WOMEN AND GLOBAL ECONOMY
Women have been vital resource a predominant focus and increasing priority of micro credit institutions and agencies worldwide. Women loans are repayment proof nearly freed of default and more beneficial to the family than loans to men and have more socioeconomic impact while bridging gender inequality gap. They are a good credit risk asset managing credit more efficiently invest income towards family welfare .They also benefit higher social status as they develop capacity to provide increasing sources of family income .Experience has also shown that of the 1. 2billion poor people worldwide women are in the majority and are responsible for the upbringing of tomorrow ‘s children .The consequence is that the poverty of women usually affects more humanity than it seems figuratively which leads to physical and social underdevelopment of their children laying foundation in stark negligence for tomorrow’s mass poverty .
An increasing number of Microfinance institutions [MFIs] are beginning to focus on women borrowers – truly the world worst poor people .SKS microfinance Promujer Nemaste Direct LAPO in Nigeria and the Grameen Foundation among others currently emphasize on the predominance of women in the socioeconomic arena and informal sector market economy.
FEATURES OF MICROCREDIT
1. Those that lack collateral
2. Individuals with no steady employment
3. Lack of client verifiable credit history
4. Extension of micro loans and clients are unbankables.
5.Encourage grass root empowerment
6.Execute self employment projects and boost micro entrepreneurial development.
7. The target is largely the informal sector.
THE ORIGIN AND TRADITON OF MICROCREDIT
According to Wikipedia micro credit as a financial innovation originated from Bangladesh where it has succeeded in liberating the extremely impoverished local peoples mainly the unbankables enabling them exit poverty and build wealth and generate capital through self empowerment and sustainable income generating projects .Its success today has largely encouraged the adoption of micro credit technology into mainstream banking and attempt was made to reclassify this league [unbankables] for the very first time as pre bankable.
With this reclassification it is increasingly gaining ground and credibility in the mainstream finance industry and various micro credit projects were contemplated by large finance organization as reliable source of future growth .When it was begun by ACCION and GRAMEEN in its modern incarnation in the mid-70s as a pilot projects only a very few gave it a chance of survival let alone its nascent or burgeoning global institutional appeal .It is the industry of now and the future the next big thing the last hope of the underprivileged and the ideology of market communalism.-the building block to Marxist homeland.
With the scathing remarks of the 1970s hardly dying away humanity had entered a new dawn and eventual potential relief for the less privileged was found as the industry evolved . The concept of micro credit can be traced back to portions of Marshall plan in the immediate post world war 11 the middle of 20th century .Some sources also link it back to the mid-1800s and the writings of abolitionist/legal theorist LYSANDER SPOONER who was a crusader of the benefits of numerous micro loans to the poor for entrepreneurial activities as a way to alleviate
Poverty .The New York Providence Fund is another tested historical source. All put together are launching pad to the incarnation and burst of the post -70s .
THE ANCIENT CONCEPT AND MORDERN RENAISANCE
There are historical differences between the ancient and modern concept of micro credit as expatiated .But the origin of the ancient started in Egypt where the ancients had found a means of buying now and paying later [creditisation]and the Egyptian equivalent of the term ‘charge it ‘came into being .When the Greeks came along a bit later with their belief in the worth of an individual citizen freeman became an exalted thing . That someone can be trusted in all aspects of life even commercial transactions influenced credit economy and the use of micro credit began to spread .The Romans came later and were only their followers established procedures for this budding market Which evolved as micro loans setting penalties for default or failure to pay .
Therefore this indicate that socialist lending began before capitalist lending and a proof that the ancients started micro credit and the entire credit market and provided a means of recording transactions laying down laws and establish man ‘s right to go into debt using the laws to regulate debtor[poor] – creditor [MFIs] relationship. Although it persisted through the millennia but the practice was heavily resisted due to its inadequate perusal as an incentive for egalitarian market economic building until fairly recent times. By the turn of 20th century when lending was well developed transcendent growth in science and modern theories beginning from LYSANDER’S among others it regained Pre eminence .though at a very slow pace until the 1970s of the YUNUS and ACCION
The industrial revolution [1770-1914] could not have been possible without micro credit and the evolution of the works of cottage factories during the period s such as the pin manufacturing shops noted by Adam Smith-[the exponent of laissez faire and classical economics ] could not have been possible without it and a contributory factor to Anglo Saxon or Germanic civilization .
SMES DEVELOPMENT INITIATIVE AND INDUSTRIAL REVOLUTION
Professor Alexander Geshenkron in a comparative study conducted ‘Economic Backwardness In Historical Perspective ; A Book Of Essays [1962] England ‘ . He noted the success of industrial revolution in England rested largely on the success of SMEs which require little capital to operate in addition to founder’s specialized entrepreneurship . As an economy categorized as moderately developing Germany also flourished during the period through them
And depended heavily on the Banking sector for their success . Likewise the quantum leap by Japanese economy during the similar period presented a more remarkable picture of the power of these wealth machines to support her phenomenal development prior to World war 11 .The secret behind this economic miracle according to Professor Yamamuva was simply cultivated by phenomenal growth in commercial lending to micro enterprises .This was made possible through the great Zaibatsu – an equivalent of modern development banking model . Today the world sole super power the United States followed similar universal pattern of mass development For instance Banks in Louisiana were noted to have relied heavily on SMEs as engine of growth and so heavily financed them for purposes of economic welfare of the Nation ‘s citizens It is the same logic everywhere .The developing countries also after independence have pursued and implemented similar policies to no avail .owing to socio psychological self imposed barriers
THE ADVENTURE OF MULTIDIMENTIONAL MICROFINANCE
With the emergence of roaring 70s pragmatic microfinance has come to stay much touted as the last panacea in the eradication of mass poverty and empowerment of the poor around the world .Beginning with micro credit or micro lending has come to include a broader range of value - added services [ credit savings micro insurance micro housing micro leasing etc] Originally according to Enugu Forum [ 2006] it is based on traditional forms of community financing amalgamating ideals of traditional finance and development assistance – a sort of socialist lending has grown to become a household name in the territories of Africa Latin America and Asia The microfinance movement evolved in the early 1980s.and Bangladesh and Bolivia were noted as major protagonists at the forefront of the movement which has gained increasing patronage over the last 20 years from multilateral agencies [ donor ] international financial institutions [IF Is] and commercial bankers flocking to the business.
THE ROLE OF MICRO INSURANCE AND SUSTAINABLE CAPACITY BUILDING
Getting down to the brass tacks it is to be noted that the long standing boom in the industry cannot be possible without micro insurance It is the lynchpin of successful micro credit projects oriented towards the sustainability of this venture especially undertaken in a sensitive and responsive economy .Simply put micro insurance is the provision of grass root insurance services as a basic strategic tool to securitize the micro and small businesses from alarming corporate mortality in an economy According to experts its services provide a lasting solution against unpremeditated mortality common among MSMEs especially those trading with microfinance credits .
Evidence of checkered antecedence abound in the nation’s history in which concerted efforts were made by successive administrations in the empowerment of the people through various micro credit projects and several poverty alleviation progammes Although each of this scheme Started well initially but fizzle out along the line closing shops while the target masses returned to their former poor state Their essence was to serve these unbankables and marginalized MSMEs .Insurance experts have noted that the schemes did die a natural death due to lack of insurance .Consequently could not provide a lasting solution to intended suffering masses .BETTER LIFE FOR WOMEN INITIATIVE and NAPEP were prominent samples .This ignorance has ravaged the country for along time both public and private sector have wasted millions of lives that could have been saved .
With the incursion of microfinance banks [MF Bs] the problem has persisted haunting ignorant depositors patronizing their services where unsecured micro credit is the order of the day .Educating the masses on the method to insure their deposits seem not to be their immediate priority .The policy makers and industry operators perhaps are ignorant of the implication and increasing corporate mortality in the country .The schemes practitioners are only interested in putting down a condition for accessing funds that are at best not truly insured failing to save the future of the funds .
FAILURE OF INSURANCE PRACTITIONERS TO CREATE MASS AWARENESS
Insurance businesses in the country are basically metropolitan based and hardly any awareness being created in the countryside .As the formal sector insurance industry potential businesses and market decline the level of awareness has refused to grow .Those who care about grass root limit their attempts to life products which is usually comprised of long gestation period not attractive and affordable to the peasants with no surplus funds to throw round or at best concentrated on third party motor insurance .They believed the grass root poor or common man has no muscle to flex around or pay much premium in comparison to former market size (Nwoji, 2008). Hardly a few concentrated efforts on grass root penetration even though they claim to do so .This is vital because the poor need insurance more than the privileged considering the over 148million un served potential market .in the country .
According to experts micro insurance is the solution to the failure of micro and small businesses especially those with micro credit from MFIs It ensures sustainable capacity building both for the institution [supplier] and the target audience in the long run .In Nigeria today more than 90 percent do not have any form of insurance Hence it offers a reliable medium to address this huge gap and deplorable cultural barrier that separates the nation from development market .Daniel[2009] also concluded it is characterized by low premium low coverage limits and sold as typical risk pooling and marketing arrangement are usually designed for low income people concentrating on marginalized grass root businesses not served by mainstream typical social or commercial insurance companies
Ojinaka [2009] argues that it is more profitable than all industrial risks put together. It is very cheap pose fewer problems than the traditional insurance in addition to the fact that the poor cannot instigate claims. To avoid failure of micro insurance projects it suggests group bonding based on societies bodies unions and associations as precondition for success .This distribution channels will be prime movers compounded with appropriate regulation monitoring and enforcement. Its sustainability would translate into sustainability of micro credit projects in the long run preserving capacity building .
OPERATIONAL STRATEGY PACKAGING AND MARKETING ARRANGEMENT
Micro insurance follows simple marketing arrangement For every micro credit project to be undertaken it should be attached .For instance where money is given to a borrower for a motor cycle or a sowing machine insurance package could be included using the distribution channels. It is a form of security and not a luxury the study noted .The road to sustainable economic growth can be harnessed through this practice liberating our people from mass poverty and sustain wealth creation capacity. The strategy will take care of mass market the petty traders farmers SMES and not saturated top market
Few companies that have tested the virgin market can testify to its growing appeal and profitability. In 2009 the Group managing director of Mutual Assurance Akin Akinbiyi affirmed this potential That his company main product was micro insurance He concluded that with total income of 1.3billion naira coming from the sector in 2008 alone covering policies worth 100,000 naira and per capital premium payment stood at100 naira .While it also paid over 300 million naira during the period as brokerage fees and commission on businesses in the sector .It is a promising experience that refocused the business as he pledged never to run after government account again.
Not only will it grow the economy it will also potentially combat crime violence theft and prevents slums through development finance insurance .It can also prevent frequency of losses
boost competitiveness and life expectancy bridge gender inequality protecting education employment generation sanitation influenced population control and parade intimidating corporate profitability as in the case cited above .Unfortunately Nigeria is a non starter in the business compare to other advanced countries of Europe and Asia .The role of micro insurance is to build capacity nurture sustainable social development maneuvered to eradicate mass poverty transforming the dividends of successful micro credit project into dividends of our nascent democracy .
HUGE MARKET POTENTIAL
In Nigeria today our communities are lying dormant being heavily humiliated and annexed by mass poverty .Thousands of micro insurance companies will be needed .For instance in Sierra Leone about 15 insurance companies are currently operating .Whereas Ijebu Ode Local Government in Ogun State has none presently which is the same size by population density as the 3million people in sierra Leone if not more .Not to talk of Alimosho local government formerly the largest local government in Africa before it was broken off into 6 local development Authorities Many countries on its own Even after the split the Ikotun -Igando LCDA alone is roughly the same size as Singapore and bigger than Equatorial Guinea Mauritius Sao Tome put together and some states in the federation We are yet to see one single insurance company located there ,let alone a micro starter .The market potential is as huge as the market ignorance
OTHER SUBDIVISIONS AND NEW INSTITUTIONS IN THE MARKET
Besides micro credit trade and micro insurance other sectors in the market include micro housing micro leasing Micro health micro industry micro leisure micro banking and development finance a new innovation of Development Finance Group [DIG] .All this can be noted in the advanced microfinance market [ AMM]of Asia etc.
With the new microfinance technology recently advanced by Microfinance Africa [MIFA] undoubtedly the world first potential microfinance rating bureau specifically focusing on highly untapped African market The entire world microfinance market had been reclassified as Advanced Grey Market [AGMMs] They are advanced but certainly a grey market .Given the magnitude or enormity of mass poverty bedeviling the territories of Asia andLatinAmerica .Excluding the OECD Club the rest of the world are classified as Blockbuster Grey Market [BGMMs] .That is un developed microfinance market of the world . Even in the advanced market some 10 percent poverty levels were found in the 90s [also AGMMs].The grey market of Africa Middle East parts of Asia and Latin America is highly extreme and a blockbuster in that regard .We know the strategic benchmark is usually mass poverty ravaging more than 80 percent of world population should we use UNDP Poverty profile as calibration and not World Bank ineffective poverty line concept
The entire formal market size institutions and models can easily be reclassified repackaged and imbibed into lower cadre microfinance market where suitable to enable the market diversify risk spread and serve the complex needs of the economically active poor while keeping undiluted the ideals of structural microfinance . .This is naturally expedient thing to do and must be fully adhered. Given the fact that the size of the existing market institutions at a given period determines the adequacy proportion of development capacity and sustainable practice vital to harness sustainable mass poverty relief and possibly eradicating the menace especially where microfinance neokeynesian [MNKs] ethics are imbibed by state political will
This needs a good development planning .Many Institutions can be nurtured such as micro- finance hedge funds[MHFs/MIHEFs] microfinance investment banks[MIBs] and houses[MFHs] microfinance discount houses[MIDIHOs/MDHs] micro venture capital [MVCs] community sovereign wealth funds[COSOWEFs] private wealth fund [PWFs] micro asset managers [MAMs] micro mutual fund [MMFs] private equity microfinance corporation/shops [PEMS] and micro investment security institutions[MISIs] and a host of others have been advanced by [MIFA]as a means to spread wealth .This is more suitable for territories with large informal sector which often constitutes 70-80 percent of the economy A nation can then have dual financial system adding the micro financial system to serve the huge informal market albeit better with grass root oriented laissez fairer regulations and micro prudential standard that are affordable to the microfinancial markets Most informal sectors if not all are heavily un served and similarly underserved even with the effort of informal institutions tirelessly providing inefficient services .The above institutions would serve in the micro financial credit markets .
According to [MIFA] in Nigeria alone they are to cut across the nation’s entire 97,000 economically passive communities .With a good political backing the nation can create wealth worth more than the U.S current G.D.P[15trillion dollars/2009 prices] prior to the maturity of Vision2020 and poverty can be eradicated in a decade or even less –It is an effective model one to tame the evils of inflation that the Keynesians and the monetarists and the entire macroeconomists have struggled in vain after over the last 30 years or more .But we seem not to believe our intellectual power desecrated in favor of western models [i.e. outdated neoliberalism] that could not spread wealth to the impoverished nations and the potential of our population market[POM] which is the major criteria in this micro-metric redistributionist dual financial model .
Should China adopt this dual micro financial model how much wealthier will she be in terms of GAPco-efficients [not GDP] and then making efficient GDP size in the long run since it has a very large poverty market and population market respectively. Nigeria can even be far richer than she does in this regard if we consider the untapped wealth of her natural wealth the POM size and making money from the export of this service to the rest of the developing territories where the model actually fit in the same way as the British export her financial services indisputably as the best in continental Europe Not left behind the full exploitation of her highly untapped technology base and optimization of 60 percent of her arable land lying moribund it can indeed be a world superpower while exploiting the mystique of her ancient esoteric knowledge system like the IFA oracle in the Yoruba land among other untapped esoteric religious power spread nationwide fully exploited and turned into science like the Anglo-Americans
A NEW GLOBAL ORDER : WLMNs/WOMILONs
Truly speaking in the World League of Microfinance Nations [WLMNs] no top market nor the middle market is found .That could be extreme We may come down to the level of poly-myopism in the industry and classify the noted markets as both top and mid-ranged while the least Developed Microfinance Nations [LDMNs] or territories are non-starters mainly in the Microfinance Dark ages. Their grades are sensationally hyper-critical and objectively over sensitive using the menace enormity as measurement criteria and highly unprejudiced.
The neomarxist free market envisaged to rival neoliberalism presently and even though through its instrumentality is far older than neoliberalism has no global structure .With the rise of Bretton Wood treaty United Nations was formed in 1944 and named by FDR .The World Bank and the IMF followed thereafter spreading the tentacles across the globe .Hence a global structure was created based on the Keynesian ideology and by the late 70s to early 80s Adam Smith free market principles gained renaissance through neoliberal exponents Milton Freidman and Fredrick Von Hayek The rise of globalization was added plus to western powers profiting immensely from its inequity .On the hand the antiglobalisation protesters worldwide unfortunately protesting at the cost of their lives have no voice which neomarxism brought as relief to their salvation door .It is expected to cover world poverty market—approximately 80 percent of world population .To erect structure for elusive equalitarian globalization they also need a voice –the international macro financial architecture to complement the effort of global mainstream market
WLMNs is equivalent to U.N. OR can be called United Nations For Macro finance [ UNFORM /UNFM ].
SOURCES OF MICROFINANCE FUNDING
THE BACKGROUND PRINCIPLES OF MICROFINANCE
CREATING A CONDUCIVE CLIMATE FOR ENTREPRENEURIAL DEVELOPMENT
During the industrial revolution or Lysander’s period around 1800 J.B. SAYS a French economist observed that an entrepreneur is the one that shifts resources out of an area of lower yield into a more profitable avenue parading higher productivity and greater yield .But Says hardly mentioned who an entrepreneur is
Centuries after the coinage by Says there had been total confusion about the emerging terminology The definitive appeal was highly vague and ambiguous It is not exactly clear whether a trader or a businessman who hardly create something new is an entrepreneur neither does he create a new satisfaction nor a new demand
Today it seems to include every tom dick and Harry in the business Is that so
Although the neoclassical economist introduced the word into our lexicon the coming of Joseph Schumpeter did more than locate the place of entrepreneurship in the economic analysis Corroborating Lysander’s to a larger extent Schumpeter once described the role and impact of combining credit plus new means of income production flows .This is regarded as ‘ fundamental phenomenon of economic development ‘ and the process known as enterprise is noted as the soul of human material progress . Factors influencing this practice such as cultural development [dominant values] , human capital availability , institutional development and policy choices according to [Utomi,2008]. are fundamental resources available to leadership for the prosperity of their nations. Any abrasion against these ideals better explains why nations are poor .
Unknown to the study More worrisome is the fact the ability of even leadership is heavily constrained in an ocean of ignorant follower ship or where objective follower ship is grossly lacking This would certainly bounce back as unbearable burden on the former and could truncate earlier golden effort .Entrepreneurial revolution will be very hard to attain in the developing territories unless a certain level of information democracy is first attained . This promotes mass enlightenment as the very first requirement of advanced economies .The reason is clear; objective follower ship often makes the work of ordinary leadership more effective . How so wise to follow this ideal which has distinguished the poor nations from the rich and mighty .Information democracy provides institutional incentives for the development of Utomi development factors [UDF] does not need an effective leadership where objective follower ship the very first requirement that could potentially nurtures the former is seriously lacking or ill which can only capitalize capital underdevelopment. Since they control the natural forces that throw up incentive to nurture this leadership effectiveness it holds the ace for rapid capital development of vastly underdeveloped nation . Therefore the relative proportion of information democracy existing in a socio- economic system determines the size of a nation ‘s development capacity
The truth is that only enlightened follower ship can demand for development It is a fundamental phenomenon of socioeconomic development that catalyses entrepreneurial development as the very soul of human material progress .The submission also is that only robust socioeconomic system can nurture maintain sustain and safeguard virile economic system as a platform for entrepreneurial revolution Building up cottage industry from the scratch into a multinational is made possible by such Para macro- economic efficiency. Once social value is created economic value where created and possible can then be sustained and leveraged for capital development [not sustainable development ] to build which is the last stage in the development cycle. market. If indeed this process ‘enterprise ‘ is the soul of human material progress information free market as a social enterprise is the very soul of social material progress .Value innovation can truly be cultivated by it which is the primary function of an entrepreneur .
A micro entrepreneur was identified as the steam engine of industrial revolution The strategic impact of this revolution which was nothing less than the promotion of economic freedom and was first made possible by art of social freedom [information democracy] promoted by the Renaissance [1300-1600] Although a leading exponent of monetarism professor Milton Friedman once noted that without economic freedom there can be no political freedom Circumstances over the last 500years of western civilization has proven otherwise that social freedom is the totality of all freedom brands in the face of ever elusive cultural freedom underpinning the institution of liberty and that without intellectual freedom there can be no spiritual freedom and without spiritual freedom also there can be no intellectual freedom .Also without intellectual freedom there can be no economic freedom and without economic freedom there can be no political freedom. This formed the auto –freedom art of social enterprise or what is called the Great Charters Of Liberty [GCL] functioning according to noted equation which provide a virile framework for a robust socioeconomic system .Inability to liberate the auto-run device of this art has often dampen development zeal in the developing countries market greasing the cycle of counter-development trap imbroglio boosted by the separatist league and then the elusive search for mass development and entrepreneurial revolution perennially persisted in vain.
Utomi [2008] once noted why is high value enterprise not so easily pursued by a lot of interested individuals that really desired to make huge profit .This is not really linked to risk or unpredictable outcomes per say but the realm of this socioeconomic system is structurally beleaguered perpetually alienating the nation from potential development density that might take centuries to nurture and recover .Therefore the cost implication of development forgone accumulated over time multiply as mass poverty truncating the effect leverage of development market policy choices and successive institutional legacies without remorse
The practice of microfinance today in Nigeria has been fraught with structural indignities. Unmanageable credit risk steep interest rates increasing repayment defaults strategic market deleveraging and lack of national disposable data resources are symptomatic evidence of poor performance and lack of national micro financial system .Even where the risk or noted defects are avoided the entrenchment and optimization of the system is another matter The climate noted above must be created for any successful microfinance projects to be cultivated They formed the principles of socioeconomic microfinance that will ensure a sustainable and conducive platform for its cultivation launching entrepreneurial revolution in the long run. These are background principles not related to the industry but a necessity for its success . And Upon this framework the fundamental principles of microfinance can be successfully launched . It not only determines the quality of the practice but also strengthens and multiply its socioeconomic impact .In the microfinance developed territories or advanced grey market besides OECD Club this is grossly lacking or less exploited which fully explains why poverty is still very high there Besides India which unluckily has extensive population market Bangladesh and Bolivia are a poor sample of the industry general problem and the ailment of microfinance usual ineffectiveness and market insensitivities . Policies and institutions have been a colossal failure due to this challenge that took half a millennium for the Anglo Saxon to battle which can only be prevented by resolving the identified socioeconomiasis .The dichotomy between the rich and poor nations was linked to this factor .It is both internally and externally imposed and no matter how they try it keeps strangulating every projected future development agenda from attainment in the territories.
THE BEING OF MAN AND NATION BUILDING
THE BEING OF MAN AND NAT ION BUILDING
The being of man is extremely complex in human society and indeterminate .Man by nature is evil parochial unconcilliatory conciliatory and can be good by nature only if he so wills Evidence of history abound to prove this indisputable fact .In philosophy self preservation is the very first law of human nature. This might have encouraged the parochialism in man which is in turn the very first law of self preservation .This propensity is prevalent in capitalist world of Adam Smith which preaches preservation of self interest and competition acting against each other to regulate free market Ninety years after Wealth of Nations. Karl Marx was to make the most rebellious and portentous declaration of how capitalism slowly proceeded but reluctantly and ineluctably into doomsday . The existentialist philosophers such as Kierkegaard , Sartre , Heidegger , Kant by modern teaching believed that man is alone in a meaningless world that he is completely free to choose his action and that his actions determine his nature .
Man as Marx claimed is not natural a being but’ human natural being’ whose being is for himself [Carver,1983], human[constructive] and [deconstructive/destructive ] inhuman parochialism is at work here .He described man as biological [aggressive jealous and territorially protective ], sociological and psychological [autonomous self reflective and creative using constructive parochialism[ altruism] in the society ] .Man ’s dual nature and manicheanistic bias was captured by this admiration and also sees man as capable of limitless thinking conceptual problem solving and autonomous in innovative activity and can harmonize social and community relations .On the other hand man is capable of substituting oppressive power for creative power while safeguarding his heteronomous nature . Or might set up barriers rather than build bridges to other communities [Bottomore ,1991] ,[Iyanda,2001] .
The constraints imposed by life challenges tends to influence this nature in man .Long before Marx ancient political philosophers have ascribed similar attributes to man ‘s nature .From Plato and Aristotle down to Hegel Marx and Engel and Lenin by the nature of their philosophies and writings certain basic common underlying principles unite them ; Such as the culture structure and origin of the state and most importantly the nature of man .Plato believes that ordinary men are both selfish and rational and all men are potential tyrants .Commenting in this light Aristotle affirmed that human beings are inherently wicked .
In the Leviathan Hobbes concluded that men love liberty and the ability to dominate their fellow men although Locke holds that man’s nature is inherently good .In the Citizen Locke also observed that man should be restrained from fear of coercive power or else every man will distrust each other .Contrary to this dissenting opinions Marx and Engel believe that the prevailing pattern and nature of production and distribution of wealth determines the nature of man .They were quick to point out in the anatomy of class struggle that economic mode of production in every era determines the political and intellectual antecedence of that era .
It is true that an average humanity is capable of this dualistic expression and potentially he by nature is an indeterminate human superior and capable of unleashing pain and pleasure good or horror and evil on the society should his right be denied him. We make bold to affirm that inequalities of wealth in every society of the world is unusually very high and about 80 percent of world population do not have economic right. The human institution is highly impugned , insensitive government abound everywhere and infinite potential unusually abhorred . Managing human resource therefore constitutes the most difficult task of all life cultural endeavors.
This is naturally expedient thing to observe because in the Marxian theory of surplus value man is the only producer of surplus value which relates to man’s unlimited capability on the ground that all other factors of production parade material finiteness. That he is a limitless thinker justified this axiom . According to Marx , human labor contributed this value that is appropriated into wealth by capitalists . Human capital is the most productive capital . For instance , in the Jakarta Plan while the country ’s physical capital accounts for 16percent of its wealth formation and natural wealth about 20 percent , human capital gulps 64percent close to twice the above .[Iyanda, 2001] .
Where economic right is heavily abhorred or where circumstances benefited some to the repugnance of the wishes of the majority and those powerful likely to be affected by change may thwart effort to protect the statusquo.Eileen Wolf described this suffering class as victims who are threatened by change Wolf victims of insensitive change are the majority poor in the society . Victims of mass deprivation may find no alternative than to revisit the same offence back to the society or to insensitive government which has contributed to the ordeal as consequences . For a larger part of human history it has been the major cause of social instability and intermittent crisis and global wars .This is common in the territory that failed to invest in its people .
It can be contended for instance that for close to 50 years since independence the underlying thesis is that Nigeria as a country measured development in terms of physical structures or the number of construction cranes operating at a time contrary to Jakarta plan .It has largely ignored the most crucial element of development. Physical infrastructure though good is not the basis of development but only the outcome of development. Unfortunately Nigeria today has more two thousand state owned companies with no adequate skills to man them. The end result is phenomenal deindustrialization shrinking formal market and passive oil wealth .Of course poor capacity ordinarily leads to poor nation building and gross under development truncating potential density of development.
Other statistics are scary as they cut across every sector of the economy .Using the nation as a case study which constitutes one-sixth of African population it is the same story across the continent where 70-80% of SSA region population lived below poverty line .The panacea as observed in building capacity for sustainable development is to harness the informal sector not through public noise by policy makers and industry regulators which has persisted for decades in the developing territories defying every attempted resolve .
MEETING DEVELOPMENT PLANNING CHALLENGES
IN NIGERIA
Learning to climb the Ladders of development and value chain is a fundamental resource and a demanding choice of man , communities and nations worldwide . We remember Abraham Maslow’s hierarchy of needs
.It ’s easy to get stuck in a psychological trap when consideration is given to basic physiological needs such as houses foods capital clothes cars and various facilities that guaranteed comfortable living .As these needs mature or are attained they cease to be motivators of performance as man’s preference and precedence move up the value chain craving for further satisfaction and sustainability in the everyday complicated challenges ..Nations and economies share the same burden like Man facing emotional challenges that is particularly more important in a sensible society that values national precedence beyond mere frivolous parochial or alternative competing needs .
Since development is a binding factor of humanity an attempt to define this subject is as long as humanity can remember but by 1960 became specifically important and more prominent in various academic literature and scholarly references .This era witnessed the universal declaration of global development decade . According to UN . development means people and welfare remains its essence goals and objectives when measured in real terms [ quality of life index ] .Contextually , Todaro [1997: 70] and Igun [2004] in general terms break them down emphasized the craft of development into the following :
Increase in availability of basic means of life such as food shelter healthcare and protection with sustainable enhanced distribution ;
Increase in standard of living such as higher income higher education better jobs together with increase in human self esteem and cultural net worth ;
Increase in citizenry freedom, economically independent nation freedom from alien people from ignorance misery and servitude .
Whitehead [1982] also emphasizes the need for 6 basic means of life namely : Healthcare/Medicare ; housing ; land ; clothing ; foods ; and
Water. HDI –Human development index is a combination of these indicators necessary to ensure adequate standard of living .The UNDP/ HDI approach at measuring development stresses the need for human welfare and denotes human welfare as the ultimate essence of any development planning basinal process be it social and economic imperatives .To measure prosperity it also stresses economic efficiency over all units in the society.
In the 1990 report UNDP specifically emphasizes the need for growth and development process should involve social and economic equity where conducive environment is created both collectively or socially and individually . But there are no philosophy supporting this greatest vision and provision in the history of man .This eventually find a voice in neomarxism . The provision enables the underprivileged in the society to harness their full potential for the purpose of leading a fulfilled productive and creative life [UNDP1990:5] .Similarly , the rise of sustainable human development concept was borne out of desire to sustain credible antecedence of HDI or any development attained in the field .Brundtland commission 1987 quoted in UNDP report on Human development 200/01 defines it thus as ‘meeting the needs of the present generation without jeopardizing ‘the needs of’ the future generation ’.This rhymes with Fiona Harvey definition of sustainable development in 2007 .
According to UNDP certain key elements form the concept of sustainable human development .This includes :
Development of the people ; Development for the people ; and Development by the people . The first notion entails human capabilities and health enhancement so that they can motivate people to participate fully in life .While the least emphasizes the need to provide opportunity to every citizen to participate fully in the development process ; the 2nd notion entertains belief in creating and providing equal priviledge for all people to have a fair share of benefits that flow from economic growth .This can be regarded as equalitarian or universal development that neomarxism preaches .
The UNDP human development report [1993] say :This can be not be possible especially development by the people without a spread of political social and economic power to all .With such type of dispersal the social political and economical framework and functioning of the society can easily be influenced by the people giving them a sense of belonging in their nation .According to the report it is a core element of human development .But the fact is clear :without a radical transformation of macroeconomic ideology and a review of the study of economics that constrains equilibrium in the sharing of wealth , it can never be possible
Human development is indeed a sacrosanct core element of the concept and nature of development . The report graphically maintained that :
This view of human development implies that people by right should have access to a variety of avenues for exercising power .Its logic suggests that participation is both a means and an end and that the decentralisation of government is desirable for its sake .The mechanism through which people may exert influences can vary widely ; as individuals they can cast a vote or engage in entrepreneurial activities ,as groups they can form community organizations of different types or belong to trade unions or ethnic associations . High levels of participation give natural expression to human capabilities -……………………………[UNDP,1998 : 4] / [ rephrased and requoted by Igun[2004] .
It also noted gross inequities and highly disadvantaged people are increasingly marginalized from this power market which are usually the poor from women , children and pious segment of the population and ethnic minorities .
THE CONCEPT AND NATURE OF DEVELOPMENT
Despite lofty provision for development and the maturity of development concept in some countries of the world and the giant strides made in the economy of development , mass development and infact the nature of development on its own is persistently under siege even in the advanced countries irrespective of landslide being recorded in science and technologies , the world today is still yet to have a universal development ideology or a macro philosophy that unify the entire fabric of humankind. .
Sectarian , racial and quintessential national interest besides usually this economy is in crisis beginning from the dawn of human civilization . The Law of development which is in most cases the law of culture says that: a nation must first have a developmental philosophy ; and secondly should also observe the great charters of liberty [GCL] as the constitution of mass development ; and then thirdly maintain and sustain its leverage, density and tradition through robust bibliocracy when cultivated . In the succeeding chapters we explore the abuse of the Law using Africa as the case study, Nigeria and America to some extent and the world at large and certain syndromes and infections inherent in the abuse befalling the nature of the society to unleash the rise and fall of great history and great civilization respectively .We also chart a new era for the continent in its ability to regain development density . A new chapter is opened in world history with the rise of neomarxist era to achieve the goals and provisions of UNDP oriented to CREATE EGALITARIAN WORLD as noted in above analysis .No society developed and sustained development without this law and no civilization had been sustainable fully indicated how depraved they were perennially against this ethos . This remorseless abuse usually led to the fall of great civilizations that persisted till this day .
The being of man is extremely complex in human society and indeterminate .Man by nature is evil parochial unconcilliatory conciliatory and can be good by nature only if he so wills Evidence of history abound to prove this indisputable fact .In philosophy self preservation is the very first law of human nature. This might have encouraged the parochialism in man which is in turn the very first law of self preservation .This propensity is prevalent in capitalist world of Adam Smith which preaches preservation of self interest and competition acting against each other to regulate free market Ninety years after Wealth of Nations. Karl Marx was to make the most rebellious and portentous declaration of how capitalism slowly proceeded but reluctantly and ineluctably into doomsday . The existentialist philosophers such as Kierkegaard , Sartre , Heidegger , Kant by modern teaching believed that man is alone in a meaningless world that he is completely free to choose his action and that his actions determine his nature .
Man as Marx claimed is not natural a being but’ human natural being’ whose being is for himself [Carver,1983], human[constructive] and [deconstructive/destructive ] inhuman parochialism is at work here .He described man as biological [aggressive jealous and territorially protective ], sociological and psychological [autonomous self reflective and creative using constructive parochialism[ altruism] in the society ] .Man ’s dual nature and manicheanistic bias was captured by this admiration and also sees man as capable of limitless thinking conceptual problem solving and autonomous in innovative activity and can harmonize social and community relations .On the other hand man is capable of substituting oppressive power for creative power while safeguarding his heteronomous nature . Or might set up barriers rather than build bridges to other communities [Bottomore ,1991] ,[Iyanda,2001] .
The constraints imposed by life challenges tends to influence this nature in man .Long before Marx ancient political philosophers have ascribed similar attributes to man ‘s nature .From Plato and Aristotle down to Hegel Marx and Engel and Lenin by the nature of their philosophies and writings certain basic common underlying principles unite them ; Such as the culture structure and origin of the state and most importantly the nature of man .Plato believes that ordinary men are both selfish and rational and all men are potential tyrants .Commenting in this light Aristotle affirmed that human beings are inherently wicked .
In the Leviathan Hobbes concluded that men love liberty and the ability to dominate their fellow men although Locke holds that man’s nature is inherently good .In the Citizen Locke also observed that man should be restrained from fear of coercive power or else every man will distrust each other .Contrary to this dissenting opinions Marx and Engel believe that the prevailing pattern and nature of production and distribution of wealth determines the nature of man .They were quick to point out in the anatomy of class struggle that economic mode of production in every era determines the political and intellectual antecedence of that era .
It is true that an average humanity is capable of this dualistic expression and potentially he by nature is an indeterminate human superior and capable of unleashing pain and pleasure good or horror and evil on the society should his right be denied him. We make bold to affirm that inequalities of wealth in every society of the world is unusually very high and about 80 percent of world population do not have economic right. The human institution is highly impugned , insensitive government abound everywhere and infinite potential unusually abhorred . Managing human resource therefore constitutes the most difficult task of all life cultural endeavors.
This is naturally expedient thing to observe because in the Marxian theory of surplus value man is the only producer of surplus value which relates to man’s unlimited capability on the ground that all other factors of production parade material finiteness. That he is a limitless thinker justified this axiom . According to Marx , human labor contributed this value that is appropriated into wealth by capitalists . Human capital is the most productive capital . For instance , in the Jakarta Plan while the country ’s physical capital accounts for 16percent of its wealth formation and natural wealth about 20 percent , human capital gulps 64percent close to twice the above .[Iyanda, 2001] .
Where economic right is heavily abhorred or where circumstances benefited some to the repugnance of the wishes of the majority and those powerful likely to be affected by change may thwart effort to protect the statusquo.Eileen Wolf described this suffering class as victims who are threatened by change Wolf victims of insensitive change are the majority poor in the society . Victims of mass deprivation may find no alternative than to revisit the same offence back to the society or to insensitive government which has contributed to the ordeal as consequences . For a larger part of human history it has been the major cause of social instability and intermittent crisis and global wars .This is common in the territory that failed to invest in its people .
It can be contended for instance that for close to 50 years since independence the underlying thesis is that Nigeria as a country measured development in terms of physical structures or the number of construction cranes operating at a time contrary to Jakarta plan .It has largely ignored the most crucial element of development. Physical infrastructure though good is not the basis of development but only the outcome of development. Unfortunately Nigeria today has more two thousand state owned companies with no adequate skills to man them. The end result is phenomenal deindustrialization shrinking formal market and passive oil wealth .Of course poor capacity ordinarily leads to poor nation building and gross under development truncating potential density of development.
Other statistics are scary as they cut across every sector of the economy .Using the nation as a case study which constitutes one-sixth of African population it is the same story across the continent where 70-80% of SSA region population lived below poverty line .The panacea as observed in building capacity for sustainable development is to harness the informal sector not through public noise by policy makers and industry regulators which has persisted for decades in the developing territories defying every attempted resolve .
MEETING DEVELOPMENT PLANNING CHALLENGES
IN NIGERIA
Learning to climb the Ladders of development and value chain is a fundamental resource and a demanding choice of man , communities and nations worldwide . We remember Abraham Maslow’s hierarchy of needs
.It ’s easy to get stuck in a psychological trap when consideration is given to basic physiological needs such as houses foods capital clothes cars and various facilities that guaranteed comfortable living .As these needs mature or are attained they cease to be motivators of performance as man’s preference and precedence move up the value chain craving for further satisfaction and sustainability in the everyday complicated challenges ..Nations and economies share the same burden like Man facing emotional challenges that is particularly more important in a sensible society that values national precedence beyond mere frivolous parochial or alternative competing needs .
Since development is a binding factor of humanity an attempt to define this subject is as long as humanity can remember but by 1960 became specifically important and more prominent in various academic literature and scholarly references .This era witnessed the universal declaration of global development decade . According to UN . development means people and welfare remains its essence goals and objectives when measured in real terms [ quality of life index ] .Contextually , Todaro [1997: 70] and Igun [2004] in general terms break them down emphasized the craft of development into the following :
Increase in availability of basic means of life such as food shelter healthcare and protection with sustainable enhanced distribution ;
Increase in standard of living such as higher income higher education better jobs together with increase in human self esteem and cultural net worth ;
Increase in citizenry freedom, economically independent nation freedom from alien people from ignorance misery and servitude .
Whitehead [1982] also emphasizes the need for 6 basic means of life namely : Healthcare/Medicare ; housing ; land ; clothing ; foods ; and
Water. HDI –Human development index is a combination of these indicators necessary to ensure adequate standard of living .The UNDP/ HDI approach at measuring development stresses the need for human welfare and denotes human welfare as the ultimate essence of any development planning basinal process be it social and economic imperatives .To measure prosperity it also stresses economic efficiency over all units in the society.
In the 1990 report UNDP specifically emphasizes the need for growth and development process should involve social and economic equity where conducive environment is created both collectively or socially and individually . But there are no philosophy supporting this greatest vision and provision in the history of man .This eventually find a voice in neomarxism . The provision enables the underprivileged in the society to harness their full potential for the purpose of leading a fulfilled productive and creative life [UNDP1990:5] .Similarly , the rise of sustainable human development concept was borne out of desire to sustain credible antecedence of HDI or any development attained in the field .Brundtland commission 1987 quoted in UNDP report on Human development 200/01 defines it thus as ‘meeting the needs of the present generation without jeopardizing ‘the needs of’ the future generation ’.This rhymes with Fiona Harvey definition of sustainable development in 2007 .
According to UNDP certain key elements form the concept of sustainable human development .This includes :
Development of the people ; Development for the people ; and Development by the people . The first notion entails human capabilities and health enhancement so that they can motivate people to participate fully in life .While the least emphasizes the need to provide opportunity to every citizen to participate fully in the development process ; the 2nd notion entertains belief in creating and providing equal priviledge for all people to have a fair share of benefits that flow from economic growth .This can be regarded as equalitarian or universal development that neomarxism preaches .
The UNDP human development report [1993] say :This can be not be possible especially development by the people without a spread of political social and economic power to all .With such type of dispersal the social political and economical framework and functioning of the society can easily be influenced by the people giving them a sense of belonging in their nation .According to the report it is a core element of human development .But the fact is clear :without a radical transformation of macroeconomic ideology and a review of the study of economics that constrains equilibrium in the sharing of wealth , it can never be possible
Human development is indeed a sacrosanct core element of the concept and nature of development . The report graphically maintained that :
This view of human development implies that people by right should have access to a variety of avenues for exercising power .Its logic suggests that participation is both a means and an end and that the decentralisation of government is desirable for its sake .The mechanism through which people may exert influences can vary widely ; as individuals they can cast a vote or engage in entrepreneurial activities ,as groups they can form community organizations of different types or belong to trade unions or ethnic associations . High levels of participation give natural expression to human capabilities -……………………………[UNDP,1998 : 4] / [ rephrased and requoted by Igun[2004] .
It also noted gross inequities and highly disadvantaged people are increasingly marginalized from this power market which are usually the poor from women , children and pious segment of the population and ethnic minorities .
THE CONCEPT AND NATURE OF DEVELOPMENT
Despite lofty provision for development and the maturity of development concept in some countries of the world and the giant strides made in the economy of development , mass development and infact the nature of development on its own is persistently under siege even in the advanced countries irrespective of landslide being recorded in science and technologies , the world today is still yet to have a universal development ideology or a macro philosophy that unify the entire fabric of humankind. .
Sectarian , racial and quintessential national interest besides usually this economy is in crisis beginning from the dawn of human civilization . The Law of development which is in most cases the law of culture says that: a nation must first have a developmental philosophy ; and secondly should also observe the great charters of liberty [GCL] as the constitution of mass development ; and then thirdly maintain and sustain its leverage, density and tradition through robust bibliocracy when cultivated . In the succeeding chapters we explore the abuse of the Law using Africa as the case study, Nigeria and America to some extent and the world at large and certain syndromes and infections inherent in the abuse befalling the nature of the society to unleash the rise and fall of great history and great civilization respectively .We also chart a new era for the continent in its ability to regain development density . A new chapter is opened in world history with the rise of neomarxist era to achieve the goals and provisions of UNDP oriented to CREATE EGALITARIAN WORLD as noted in above analysis .No society developed and sustained development without this law and no civilization had been sustainable fully indicated how depraved they were perennially against this ethos . This remorseless abuse usually led to the fall of great civilizations that persisted till this day .
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