Some decades ago when the whistle was forcibly blown for African countries
to race for political independence after series of turbulent nationalists'
agitation, a brand of leaders with confusing ideologies sprang up to dictate
and plunder the continent. A junk of the left behind colonial "cake" was
hijacked by self-imposed, self-styled saviours to form political parties
that coalesced in anticipation of independence; and not surprisingly (if not
depressingly) they coalesced along regional lines coagulating the most
brutal and resource-draining ethnic violence in contemporary times.
But while Africa was entangled in the maze of endless crisis in the last
decades, South East Asia was experiencing a comprehensive economic growth
that puzzled economists and development workers alike. The success of the
"Asian Tigers" has led to other development countries also plunging - or
forced to plunge for economic liberalisation, thinking that a similar
miracle will surely come by.
But how were these tiny South East Asian countries able to outwit
mineral-crowded Africa?
The basic factor in Asia were the fundamental prerequisite for success and
are the nucleus of this commentary: an enabling environment; provision of
market friendly incentives for national enterprise development and business
support services; and fostering linkages between firms on one hand and
between firms and other institutions, in particular those on science and
technology.
Significant to the success of any economy is the existence of political
stability and basic accessible education. Before independence, the South
East Asian countries, through their religious pundits (Muslim and Buddhists)
had already embarked on a civic education campaign aimed at indoctrinating
their people with nationalistic and business-like values. Their call was
geared towards willingly entrusting political power to society's respected
individuals while the rest put hands on deck to foster national development.
With this seemingly lukewarm but rather mature and sensible arrangement,
political struggles and ethnic violence between the Malay and the
Indo-Chinese were greatly averted. This is not to say that South East Asia
has a history devoid of skirmishes. Indeed, the region experienced
dictatorial regimes with forced labour and dizzy human rights records.
Indonesia for instance went through a brutal military coup in 1966 with a
period of agonising fear under illegitimate decrees. Singapore had its own
share when Lee Kuan Yew monopolised power from 1959-1990, a period in which
to be an opponent was tantamount to substituting yourself with the numerous
commodious jails.
However, these somewhat oppressive times in South East Asia were too mild to
prevent investment and rapid economic growth as the conditions for growth
were already fortified. Thus, with the guaranteed enabling environment and a
vibrant educational system (Asians are the most mathematically minded people
on earth), an unceremonious invitation was extended to investors and
financially dwarfed companies to take advantage of the cheap labour provided
by the productive Indo-Chinese. So as early as 1970, South East Asia was
already serving host to a conglomerate of genuine companies. There was no
time for political agitation; no time for ethnic violence; no time for rebel
incursions. Development was the watchword!
With the flooding of potential investors, the economic barometer of South
East Asia became promisingly legible. This led their economists to search
for suitable economic policies to respond to the needs and aspirations of
highly excited investors.
The Asian tigers' economic philosophy basically advocated for a relatively
equitable sharing of revenue according to the criterion of need. It was a
mild disguise of the best portions of socialist and capitalist doctrines.
With the visionary splendiferousness of the central banks of Singapore,
Malaysia and Taiwan, coupled with its burgeoning local markets led to the
drafting for subsequent implementation, economic and foreign exchange
policies that led to rapid economic growth. The savings were later
channelled to the banks and the enterprise sector, which was extensively
parasitic on debt financing. The availability of credit allowed those with
management experience, often acquired from working with a multi-national
affiliate, to set up their own small and medium sized enterprises.
In order to ensure continuity of the in house economic growth for small
enterprises, protectionist measures were put in place with emphasis on the
use of local suppliers, who were knotted with larger firms as
sub-contractors. This simple and practical arrangement created an appetising
avenue for the acquisition of technical skills and technological
advancement. But the way in which technology was adopted and capital
imported varied from country. While the Republic of Korea was selective in
permitting foreign investors, Taiwan did not discriminate between the
foreign and domestic investors, except in a few sectors.
As the provision of tax incentives and levies promoted in house training in
domestic firms, Singapore and Taiwan vigorously embarked on research and
development initiatives through granting of tax advantages and other
incentives. By way of research and through experience, there was increased
capacity to make minor changes, which in turn led to improved productive
facilities and eventually significant innovations. Gradually and with
growing capacity, the industries were able to respond to the growing
competition from world markets. South East Asia soon became strong enough to
begin producing for specialised needs and later more sophisticated
knowledge-intensive products. As the export market gained momentum, South
East Asia acquired the necessary technical and marketing expertise that
transformed their economies from ailing dwarfs to the biting mighty tigers
of modern envy (until recently that is). The painstaking struggle of the
masses, the razor sharp vision of their development workers and economists,
coupled with the presence of belligerent and charismatic leaders, made South
East Asia's impending economic miracle a shining glitterati bristling with
office towers and humming with entrepreneurial energy.
However, the rapid and tantalising economic growth of the South East Asian
countries during an era of excruciating economic stagnation, has been widely
touted as the model for other developing countries precisely so AFRICA. But
the enabling environment that parachuted South East Asia from the nadir of
poverty to the zenith of prosperity was generally absent in Africa. From the
Kalahari desert to the waters of the Nile, and from the creeping Sahara to
the tick forest of the Congo's, wars of mammoth scale emerged with velocity
and brutality characteristic of a harmattan bush fire. The healthy, the
skilled and the intelligent died en masse. Those counted lucky ran helter
skelter to seek for refuge thousands of miles from home. The madness that
ensued forced many economies to coma. With daily reports of endless rampage
of armed "sons" of Africa, the magnetic elements needed to seduce investors
became as imaginary as the lines of longitude and latitude. Thus the
impending political miracle in Africa painfully bequeathed a volatile
economic system presided over by confetti of untried corruption scandals.
Albeit the cloudy political atmosphere in Africa, attempts were made by some
countries to indegenise industry and to instil an ethic of self-reliance to
combat inflation and to counter perceived economic divisions in the
continent. Strategies to curb consumption in order to establish a buoyant
and durable infrastructure were also tried. A case in point is the often
ill-fated policies of Nigeria's military rulers. In the early 1970s. Nigeria
doubled the printing of money to enable new rates of pay to public sector
employees. This inevitably fuelled inflation without creating any increase
in standards of performance. The increase of wages steered industrial unrest
in private indigenous industry while inflation gripped the spines of the
non-waged agricultural sector. Ironically, in oil rich Nigeria, dawn to dusk
queues developed from a single gallon of petrol and other basic food
condiments.
But sleazy export rates and inadequate mechanisms in a deflationary economic
climate has largely dwarfed and seriously limited Africa's foreign exchange
earnings especially in corrupt civilian and military dictatorships that have
blindly acquired an expensive flare for imported goods. Thus while South
East Asia was grooming and breast feeding their economies to become tigers
in years to come, Africa was being raped and looted with budgetary cuts in
education and health under the deadly masks of worthless economic and
political slogans. The available resources that could transform Africa into
a dazzling land of unrivalled prosperity are unfortunately being pocketed by
some few morally maladjusted leaders-cum-mercenaries. In the meantime,
illiteracy reaches frightening heights, while malnutrition, poverty, greed
and ethnic violence become institutionalised facets of our cultural set up.
The very people expected to be the benchmark for change (the intellectuals)
have shown no remorse for this continent married to despondency.
By and large, as the race progresses on the information superhighway towards
the potentially flashy second millennium. Africa has a herculean task ahead,
but more so galloping through foggy moments to come afar with already miles
ahead Asian tigers. But as a journey of a thousand miles begins with the
first step, we must take bolds steps, utilise our human and natural
resources and ensure a relatively equitable sharing of revenue. But if
blunders come by again, we shall sink in atrophy and continue to be beggars
until the incomprehensible clamps down His final baton. The ball is in our
court.
Abou Jeng.
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