Statism is a system that vests the control and
use of a nation’s resource within the ambit of the government. There is minimal
room for individual ownership of means of production in such a system. This is
usually ensured by government’s machinery and agencies which are meant to
propagate and further enhance government economic planning. In a free market,
there is absence of government control. The resources of the state are owned by
individuals who make decision to foster growth for their business interest. The
underlying concept is how the market is a self regulating entity devoid of
externalities. According to Adam’s Smith, "the
individual who intends only his own gain is led by an invisible hand to promote an
end which was no part of his intention. Nor is it always the worse for society
that it was no part of it. By pursuing his own interest [an individual]
frequently promotes that of the society more effectually than when he really
intends to promote it’’. This is the underlying presumption of a free market.
Having established the two concepts,
it shows the extremes of a two edged sword each with its potency of destruction
and construction. The principle of interventionism tends to provide a point of
convergence for these two extreme philosophies. It tends to harmonize the
constructive part of each system in order to accelerate objectives based on the
benefits of both systems. In a bid to further examine the evolution of
predominant systems in Africa and to ascertain the suitability of such systems
to catalyze growth or its tendency to distort growth, it becomes imperative to
fully understand the African environment.
Back To the Roots
The African traditional society could be
described as a network. A network of different configurations which sustains
the society we inhabit. The configurations could mean a host of individuals
with diverse interests and aspirations but with single bedrock. The bedrock could be seen as the core of the
society. As the core, it is a system of beliefs that seems to guide individual
interactions within the network. Brotherliness, morality, communality, etc. are
components of the system that are well ingrained by the people and also what
perpetuates the environment.
Human interaction within this network is
beneficial both to the society and to the individual. Open mindedness and transparency,
are principles that guide exchange among individuals, groups, societies, and
the Government. The host in this network could be likened to Government that
exists nowadays. Then, each society had a supreme head to which people paid
obeisance to. As a result of this, there was social, economic and political
order which was necessary for societal survival. This network catered for each
configuration irrespective of class or status. The resource of the society was
equitably distributed among the people with a central authority overseeing
affairs. It aroused people’s consciousness and gave all a sense of belonging in
a bid to propel societal goals. Over the years, the African society has been a
shadow of this. Why?
Principle of Individualism
The principle of individualism was
precipitated by the dark years of African societies. Western domination of
African countries brought about a change as to what the people were otherwise
used to. During this period, the terms of individual relations and exchange
were on western principles or ideals. This reshaped the beliefs of the people
towards individual gains rather than communal goals. Even after independence,
most of these countries still depended on western economies for its
subsistence. Because of the interdependency that exists among countries, the
need for international exchange was highly essential to the global community
and this gave rise to Globalization. Globalization is a new concept that has
opened up new frontiers for states to trade among each other and to ensure
increased integration of world markets. It cuts across production, trade and
cultural exchange between the states involved. This has infringed on the
sovereignty of the state in terms of making impact within its borders and has
also seen the people adjust to foreign influences in their actions.
The Tunnel
Since independence, African’s have toed an
endless path poised with obstacles. A long walk through a tunnel with no sign
of light has inspired people yet some dampen in their hopes. Countries have
engaged in either type of economic system. Some countries which have taken
after the western economic system of free markets have come to realize the
deficiencies inherent in the system. The markets have created an enabling
environment for individual initiatives to thrive which have of often contrasted
against public goals. Individuals in this market see their self interest as
first and foremost and are ready to employ means to achieve same even at the
expense of societal good. An example of this is oil exploration in countries.
In Nigeria, oil exploration is vested in the hands of multinational
corporations which are usually interested in means that would promote the
company’s aspirations caring less for the environment which accommodates them.
Environment which hosts such firms have become victims of environmental
degradation which has led to loss of lives, properties, means of livelihood
etc. and the companies have also failed in their discharge of social
responsibility which is to protect and serve public interest. Some of the
market deficiencies also include failure to allocate resources effectively,
efficiently and equitably, degeneration of moral values, and the inability of
the market to provide social services for the citizenry. These have made
nations realize the ills of this system and a need to amend it for social good.
Meanwhile, countries that strictly vested
management of economic resources in the hands of a central body, government, have
often seen the benefits of the system being overshadowed by inefficiencies and
crippled by mismanagement, corruption, political instability etc. This is the
socialist system taken after the eastern countries like China, and the old
Soviet Republic. This system is founded on the premise of public interest,
promotion of an egalitarian society through investment in public goods which is
undertaken by government agencies. Over the years, these agencies have deviated
from its sole aim and the factors responsible for this ineptitude arise from
administrative deficiencies. Some of the reasons for
the poor performance of the state enterprises and other development projects
generally have been poor project planning, lack of feasibility studies,
improper siting of industries and projects, poor coordination, and
implementation that emanated from defective administrative machineries (George
Ayittey). Is there a way forward?
Light at the End of the Tunnel
Having recognized the present state
of African societies, charting a proper course that would foster economic
growth with its multiplier effect on the whole activities of the state has
never been direr. With statism and free markets been the predominant systems
adopted by African societies and each with its positivity and negativity, it’s
time we reach a compromise. Following the table below, we would better
understand the relationship between these two seemingly distinct concepts:
Relationship between Socialism and
Free Markets
Socialism
|
Free
Markets
|
1.
Inefficient
use of resources
|
Efficient
allocation of resources
|
2.
Availability
of public goods
|
Lack of
public goods
|
3.
Public
interest
|
Selfish
interest
|
4.
Government
regulation
|
Market
monopoly
|
5.
Social
education
|
Immorality
|
As can be seen from the above, there exist
elements of complementarities between the two systems. This should not be taken
as a motive towards Mixed Economic Systems. In modern times, some African
countries (Nigeria, Ghana etc.) have adopted such approach and still the
deficiencies of the two systems have resurfaced and perverted the system. The
major focus of African societies must be to harmonize the benefits of both
systems with a view to impart African traditional beliefs as highlighted from
the foregoing. When, if ever, black
people actually organize as a race in their various population centers, they
will find that the basic and guiding ideology they now seek and so much need is
embedded in their own traditional philosophy and constitutional system, simply
waiting to be extracted and set forth (Chancellor Williams 1987;
p.161). Only then can we consolidate on the gains of
both systems.
In an age where important decisions
need to be made to sustain market, environmental changes etc. African societies
must refuse to be the broadcast segment in terms of effecting change in their
environment and this could be attained by making fundamental choices that would
have a lasting effect on their economy. It is not a question of Statism or Free
Markets but a system that would bring unprecedented changes.
