Is the world flat?

A few days ago, I saw a 140-page document titled the “Economic Recovery and Growth Plan 2017-2020.”In the plan, the federal government targets 2.19% growth in 2017 and 4.6% growth rate. It aims to increase oil production to 2.5 million barrels/ day, with 8.5% growth in manufacturing, while expecting to earn N35 billion from the sale of some national assets, among others.

Also available is the 60-day National Action Plan on the ease of doing business in Nigeria from 21 February to 18 April 2017, which is to move the nation 20 steps upwards in the World Bank’s ranking. I wish the objectives reflected in these documents are actualized by the stated dates. If they are not actualized, then Nigerians should begin to re-examine themselves. Why? “The world will not respect Africa until Nigeria earns that respect. The black people of the world need Nigeria to be great as a source of pride and confidence,” according to Nelson Mandela.

I am aware that most Nigerians when they leave their cultural soil excel outside Nigeria. What set of cultural values inhibit economic development when Nigerians are in their father land? Why are these cultural values not a challenge to their aspirations when they relocate to other nations? Millions of Nigerians who emigrate to Europe, Asia, and America excel in their respective endeavors because of their new cultural environment. But back home, they find it difficult to turn their economy around. Why?

Recently, someone drew my attention to a book in my reading room which I read almost ten years ago. The book titled The World is Flat is authored by Thomas Friedman. Anyone who has read the book as well as observe policies geared towards economic development in Africa, and most importantly, Nigeria`, would have pondered on the author’s main theme. The author’s main thesis is that in the age of globalization, it’s easy for capital to cross boarders effortlessly, and that investment funds in one country can respond promptly to business opportunities in another nation. While globalization ensures economic development is attainable in most remote places on the earth’s surface. If these were true, why are investors not finding it easy to invest in some countries?

It has been stated in this column that the development of any nation is not strictly the function of economic conditions alone but arise from the total situation within the country. That is, certain conditions would have to be met to attract foreign direct investments into a country. For instance, it is expected that a nation with stable government, investor-friendly climate, coupled with the rule of law, should be a destination for foreign investors. Regrettably, not all poor nations are able to meet these conditions. In some instances, when the government of a country is responsible, and it has provided a friendly environment for foreign direct investment, there may be other factors that make investors (local or foreign) shake their heads in displeasure, take a decision to invest elsewhere, and walk away quietly.

Monetary and fiscal policies have not stabilized the economy. Investors are unwilling to invest their Dollars in Nigeria’s economy, because the value of the Naira to most foreign currencies is not stable. The federal government has more than five different official foreign exchange rates for business transactions. Recently, Dollars are being injected into the economy by the CBN so that the Naira can appreciate. Although the federal government claims that the foreign reserve is increasing, but we know that the nation has a negative balance of payment. This perhaps, give an impression that the world may not be flat after all.

When policies and strategies of governments fail, it may be that there are other requirements for economic development which are extensive than some of the conditions usually prescribed either by the International Monetary Fund or the World Bank. In most cases, economic development is impaired by the culture of the people.

Culture matters more than anything else when it comes to national economies. “Thrift, hard work, tenacity, honesty, and tolerance” are factors that make all the difference according to David Langes in his book The Wealth and Poverty of Nations. Max Weber also suggests that social attitudes and values are key to knowing what economies will succeed and which will fail. If you think culture doesn’t matter, why then are some countries doing well economically, while others fail miserably even when all the macroeconomic statistics are correct. What is the explanation we have for most African nations that fail woefully in their pursuit of economic growth when they have abundant mineral resources to develop their economies? Why are some countries in spite of strong resource base and educated people resistant to development? It is due to lack of business-friendly culture.

That’s why any nation that cannot develop its economy must begin to re-examine its culture and identify some of the causes of failure. Although, culture and technology are continuously reinforcing each other, some scholars have argued that modern technology alone will not turn around an economy and boost the standard of living of the people. They argued that the development of a positive attitude, with accompanying values and habits, are components of the equation.

Contemporary scholars have argued that economic growth will take more than capital, labour, land, technology, including strong political and economic institutions. Nigeria needs an assemblage of cultural values suited for modern business. Cultural values that will flourish in an environment characterized by “disposition to mental work, deductive reasoning, intellectualism, inquisitiveness, motivation to learn, and to acquire new knowledge, free exchange of ideas, socio-economic mobility, focus on quality and deep roots in excellence.” Societies where these characteristics are entrenched are more successful in economic development. I hope these plans will ease business, grow and recover Nigeria’s ailing economy. For now, I can only conclude safely that in the contest for economic development, the playing field is far from level. The world is certainly not flat as Friedman declares.

MA Johnson