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Vision 2020 And The Challenges Of Globalisation By Hadi Y. Al-Hassan National Press Centre, Abuja
The wave of globalization phenomenon has taken a centre stage as a dominant feature in the international political economy. In fact, it has become a phenomenon that no country can escape. This, therefore, compels many countries to take strategic steps towards actualizing their economic growth and development. In this respect, Nigeria has the option of either positioning itself and maximize the benefits of this New World Economic Order or be left away as by-stander or marginal player in the international economic configuration. Taking this into cognizance, the globalization of the world economic system has, therefore, compel many developing countries such as Nigeria to initiate policy measures and establish institutional frameworks aimed at accelerating their growth and development in line with current global economic trend.
In an effort to make Nigeria one of the major role players in the international economic system, the federal government has conceived the vision 2020, a project that encompass various developmental policy measures aimed at taking Nigeria to the league of the world’s largest 20 economies by the year 2020. While this is quite desirous and in tandem with the existing global race towards national economic growth and development, the actualization of the vision is certainly challenging as it is tasking, taken into consideration the various forces that propel globalization and national economic transformation and development in the 21st century.
There is no gainsaying that Nigeria has all it takes to be in the comity of the big 20 economies by the year 2020, considering its enormous human and mineral resources.This, however, defends on how the country confronts and addresses the various challenges towards realizing this laudable project.
One of the major challenges towards realizing the vision is the issue of economic diversification. Nigeria heavily depends on oil and gas exports for significant parts of its revenue. For instance, the trend of having agriculture and other commodities as major forex earners stopped in the early seventies. It could easily be recalled that since the discovery of oil, Nigeria’s export commodity pattern has largely remained monocultural.
In addition to this, other sectors such as the iron and steel industry that could have played significant role as major forex earners have not faired well. It could be pointed out that despite sinking billions of Naira into some iron and steel industries like, Ajaokuta Iron and Steel Industry, Itakpe Iron Ore Industry, Aladja Steel Company and Katsina Steel Rolling Mills, among others, no significant contribution have been noticed in this sector of the economy as forex earner to the government treasury. Similarly, mineral resources such as bitumen, coal and barites, among others, have not been fully harnessed to ensure the inflow of forex to the government coppers. The picture painted above undoubtedly shows that the country has for long a very long time been exposed to the international oil boom-and- gloom circle. This scenario further exposes the nation to unpredictable and unstable revenue accruable to government coppers.
It is essential to point out that the diversification policy of the Asian Tigers greatly accelerated their economic growth and development. For instance, Malaysia and Singapore, among others, placed premium on exports. Their manufacturing industries and agricultural sectors played a fundamental role in this respect. This measure resulted in generating forex to the country and increase in their national wealth. This in turn further accelerated development and expansion of functional public sector utilities such as roads and transport, health, power and energy and telecommunications, among others. Similarly, despite Thailand’s advancement in technology, the country remained highly committed to its agricultural economy, as it has become known as one of major nations that lead agriculturally. The Country has confronted globalization by diversifying its economy and opening new markets to encourage production and attract Direct Foreign Investment for the growth and development of their economy. In fact, these among others with the sense of national interest make these countries amongst the major role players in the international economic sphere.
In the same vein, technology, especially computer and information technology has led to advancement in international information flow and ease in business transactions. In realization of this fact, therefore, many nations accord premium to the information technology towards their economic growth and development. In line with this argument, therefore, Kwanashe (1999:20) aptly captures this scenario when he posits that “IT has provided tremendous opportunities for rapid economic growth and conferring competitive advantage to those that have access to it”. With this in mind, it could be safely said that one of the major challenges towards achieving the “strategic goals” of vision 2020 has to do with proper acquisition and massive deployment of information and computer technology.
One of the propelling factors that derived the top 20 economies of the world to their present status is the practice of good governance and judicious use of public funds in developing and maintaining various infrastructural facilities that accelerate socio-economic growth and development of their respective nations. Paradoxically, this is one of the greatest challenge to Nigeria’s vision 2020.For instance, corruption in its various forms such as contract inflation, outright stealing and non remittance of public generated revenue into federation account have deprived this great nation the required funds to develop such critical infrastructures like railway, power and energy, health care and public education institutions, among others.
Various alleged corrupt practices in the public sectors illustrate this point. The Siemens 10m Euro bribe scandal, the N300m Ministry of Health unspent fund sharing scandal, the $180m Halliburton bribe scandal, the N850m contract fraud in the UBEC, the N5.2b Rural Electrification Agency allege fraud, among others. In addition, the House of Reps ad-hoc committee investigating the NNPC has alleged that the Corporation failed to remit the sum of about $3.8billion in revenue to the federation account. Still further, the EFCC has recently declared that 49 unnamed Nigerians siphoned the national treasury to the tune of N146.6billion. This horrible picture was succinctly captured by a respected media columnist Is’ haq M. Kawu when he pointed out that “Imagine what this amount can add in terms of value to the country.......Our ruling class shoots itself in the feet by its irresponsible conduct, especially with the institution of corruption that saps the nation, alienates the people and weaken the state’’. I t is apparent that the scenario painted above poses a major challenge to the realization of Vision 2020.
The crisis in the Niger Delta is equally a fundamental factor that could make or mar the realization of Vision 2020. It was estimated that the federal government is loosing over 1m bpd, which translates to about N8.7b daily. The GMD of NNPC recently said that from the beginning of this year, the nation lost aboutN880 billion because of illegal bunkering, and pipeline vandalisation in the Niger Delta. This and the fallen price of oil in the international oil market therefore pose a major challenge to the government treasury. Thus, paucity of funds because of dwindling oil revenue is likely to pose major challenge to the nation’s entry into the club of top 20 economies in the world by the year 2020.
Meanwhile, the call by the federal government on the private sector to support the “funding process” of Vision 2020 is quite in order, it is, however, essential to note that this same sector is hamstrung with plethora of challenges that makes business barely profitable. This challenging economic environment may not be unconnected to the massive closure of industrial and manufacturing complexes in Ikeja, Lagos state, Kakuri in Kaduna state and Sharada and Bompai both in Kano state. Lack of power and energy to run these industries has been identified as one of the major reasons advanced for the closure of most of these industries because they could hardly break even and this is a fundamental challenge towards the realization of the Vision. Indeed, no nation develops without functional power and energy to run the various sectors of the economy.
One major obstacle that may likely face the actualization of Vision 2020 is the issue of policy in consistency, a phenomenon that has greatly hampers the development of this great nation. Essentially, it is important to point out that several regimes had came up with well thought out developmental policies but subsequent regimes after them throw out such policy documents. This is may not be unconnected to the egocentric personal interest or personal vendetta of some of our leaders. For instance, such policies like, Operation Feed the Nation, Green Revolution, DFFRI, PTF and Vision 2010, among others, suffered their shares of all kinds policy shifts mostly due to self-interest of our leaders instead of national interest which should be the driving force for our various developmental programmes. Consequent upon the foregoing, how sure are we that Vision 2020 and the Seven Point Agenda will escape the wrath of subsequent leadership after Yar’adua’s administration? Only time will tell. This scenario exposes how policy inconsistency has been the bane of stability, growth and prosperity of this nation
While the federal government has been trying to educate the public that it is doing everything possible to actualize vision 2020, it needs to be pointed out that concrete short and long term measures needs taken towards actualizing this laudable national roadmap. The issue of economic diversification is expected to play a fundamental role in this respect. With one of most arable land in the world, this country needs to give premium to long-term investment in agriculture. This would guarantee food security and generate employment, enhance massive production of food and cash crops and the later would be used for exports, which will generate alternative source of revenue for government. In this respect, we would have put behind us the third world problem poverty, hunger, squalor and misery, among others.
Equally important is the need to develop robust iron and steel industry. This industry could provide veritable raw materials for industrialization as well as exports thereby generating revenue for the government instead of over dependence on oil as a source of revenue. In addition to the above, there is the need for proper acquisition and deployment information and communication technology. This sector accelerates economic growth and development and it has been identified as a moving factor that places the major economies in the world in their present status.
Finally, serious efforts must be geared towards long-term massive development and maintenance of critical infrastructure and institutional frameworks in order to propel national development. In this respect, there is the need for functional power and energy, efficient railway system, motorable roads, enhanced sea and airport services, a robust and reliable financial sector especially a veritable stock exchange as well as prudent management of public funds.
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