Economic objectives (II)

Chief Obafemi Awolowo’s insightful book about Nigeria’s political economic survival The Strategy and Tactics of The People’s Republic of Nigeria, which was first published in 1970

THE latter class would be socialised only to the extent that they are owned and operated by socialized enterprises. The former class would also be socialized, but with the provision that wherever they are forthcoming, owner-drivers, and co-operatives of practising and non-absentee drivers would be assisted by government with finance and expertise to run commercial vehicles on their own account.

Under the new dispensation, commercial road transport would be properly planned. The number of commercial vehicles plying any route would, from time to time, be limited to the volume of traffic available on such route: this would make for conservation of capital, profitability, and better salaries and conditions of service for drivers. As far as possible, passenger vehicles would be separated from those carrying goods and livestock: this would make for comfort in travelling by road for those who do not have their own private vehicles. The number of hours to be worked by drivers as well as their wages, having regard to the type of vehicles-whether private or commercial, doing long or short haul-would be regulated; this would lead to greater efficiency and good morale on the part of drivers, and to a reduction in the number of road accidents. Above all, it would be possible to achieve effective and efficient integration between road and rail, and complementarity and co-ordination among all means of commercial transport-rail, road, water, sea, and air-for the purposes of efficient and profitable performances and results.

(iv) DISTRIBUTIVE OCCUPATIONS: In the present stage of our development, the distributive occupations, that is of wholesalers, retailers, petty traders etc., would be left entirely in the hands of private enterprise and the associations of co-operative suppliers and consumers, subject to such rationalisation, direct government participation, and co-ordinating public control and supervision, as government may from time to time think it fit to effect. It should be a cardinal policy of Government to give the utmost possible preferential encouragement, in financial, technical, and managerial assistance, to associations of co-operative suppliers and consumers.

It should be emphasised that the sphere of distributive occupations is one which Nigerians can wholly occupy, without any disruption to the economy, or drag on the mobility of goods. The only limiting factor, as far as Nigerians are concerned, is capital. It is this factor which places giant wholesale and retail stores in the exclusive proprietorship of foreign concerns. It would be the duty of Government, first to compel the immediate Nigerianization of these giant stores, and second, progressively and in every way possible, to assist associations of co-operative suppliers and consumers to take them over.

At the moment, the exportation of produce is already largely socialized. It would also be the duty of Government to widen its area of activities in this sector, and to monopolise the importation, as distinct from internal distribution, of certain classes of goods as well.

(v) BANKING AND INSURANCE OCCUPATIONS: In the eleventh lecture in his book entitled Lectures on the Theory of Socialist Planning, J.G. Zielinski discusses the general principles of efficient planning, under any economic system. In the introductory part of this eleventh lecture, he poses and answers an important question as follows:-

‘Are there principles of efficient planning general enough to be valid in any country engaged in national economic planning, irrespective of vast differences in socio-political setting and in level of economic development attained? My answer to this question is “yes”,’

In the main body of this eleventh lecture, he enuncia tes four observations and four conclusions. It is the first observation and the first conclusion that are pertinent to our discussion under this head. Accordingly, I quote a short excerpt from the first observation, and reproduce the first conclusion in full.

‘First observation: There is a certain critical size and composition of the public sector, below which effective planning is impossible.

The” critical size” of the public sector necessary for effective planning is usually defined as a requirement of concentrating in the government’s hands so-called “commanding heights” of the economy. In a recent article Professor V.B. Singh of India formulates this requirement as follows: “The history of planned economic development reveals that planning cannot be successful unless and until the “commanding heights” (that is, basic industries, transport, communications, banking and finance) are in the public hands”.’

‘Conclusion: If a developing country wants to engage in effective economic planning its public sector has to embrace certain strategic spheres of economic activity. Otherwise there is a serious danger that its planning remain mainly on paper.’

I want to say that I wholeheartedly agree with Zielinski’s observation and conclusion which are made for the benefit even of a capital system of economy. Accordingly, in addition to what I already said about basic industries like mining and manufacture, transport, and communications, I advocate the early socialization of banking, surance, and other financial and quasi-financial institutions in the peoples’ republic of Nigeria.

In The People’s Republic (pp. 167 and 168), 1 wrote inter alia as follows:-

‘A careful examination of all these theories reveals that the basic cause of trade cycle is economic MALADJUSTMENT: maladjustment of supply of goods to demand, of supply of money to available goods, and of savings to investment. This maladjustment is recurrent and endemic because of the complete lack of co-ordination: (1) among the producers inter se,. (2) between the producers and consumers; (3) between the producers on the one hand and the Monetary Authorities and banking institutions on the other; and (4) between savers and the institutions which handle savings on the one hand and the investors or buyers of savings on the other.’