Primacy of science and technology in economic growth
This article is a reminder to those in the government that there is limit to the wealth of a nation without science and technology. And without sustainable economic growth, there can be no economic development. What Nigeria needs to grow its economy is the capacity to produce goods and services. If Nigeria could work towards achieving a sustained economic growth, it would have a positive impact on the national income and level of employment. This will further result in higher standard of living.
Factors that affect the economic growth of a country include human capital, natural resources, capital formation, technological development, as well as social and political factors. Regrettably, Nigeria is not doing well in all these areas. It is not a secret that Nigeria is one of the countries that has not been able to attain rapid and sustainable economic growth in recent years. In fact, a professor of technology policy once told this writer almost two decades ago that Nigeria’s economy is “inert.” The country’s economy, he says, hardly reacts positively to economic stimuli.
The philosophy of Bill Gates on Nigeria’s slow economic growth profile still resonates with this writer. The American multi-billionaire and philanthropist says that “if you invest their health, education and opportunities- the “human capital” we are talking about today-then they will lay a solid foundation for sustained prosperity. If you don’t, however, there will be a sharp limit on how much the country can grow.” Technological development is one of the critical factors that will make the economy grow faster. Research has proven the contribution of technology to economic growth.
On the contribution of technology to economic growth, a qualitative analysis was done by Professor Robert Merton Solow of the Massachusetts Institute of Technology. Solow, an economist, conducted a study for more than 40 years to measure the contribution of technical change to economic growth and found that the output of man doubled during the period. He attributed only about four-fifths of the growth in US output per worker to technical progress. That is, about 20 percent only of the growth was due to more capital, while the remaining 80 percent was attributable to advances in technology.
Several scholars have confirmed the validity of Solow’s findings, albeit in different ways. Since Solow’s initial work in the 1950s, many more sophisticated models of economic growth have been proposed, leading to varying conclusions about the causes of economic growth. Since then, many governments have invested huge funds towards improving their nation’s technological capability because they strongly believe that technological innovation will enable them break out of recessionary cycles, enhance competitiveness, drive economic growth and ultimately provide jobs for a lot of their citizens.
Today, economists have accepted the primacy of technology in economic growth. The technology referred to in this article is the systemic knowledge of technique of production embodied in people such as skill, experience, managerial techniques amongst others. The use of appropriate technology by entrepreneurs will enable them survive today’s competitive landscape occasioned by globalization. Adoption of science and technology as a way of life in Nigeria is one of the tough choices that the nation has to make in order to be relevant in the Twenty-first Century.
It was 48 years ago, precisely in May 1970 that the highest level of government in Nigeria demonstrated awareness of the role of science and technology in national development. It was Yakubu Gowon, Head of State who first made a policy statement on Science and Technology (S&T) and its relevance to national development as follows: “It is my hope that today will similarly symbolize the beginning of a great future for the development of science and technology and their application to the constructive exploitation and utilization of our national resources.”
In January 1980 almost 10 years after Yakubu Gowon’s policy declaration, Shehu Shagari, former President of Nigeria and Commander-in-Chief of the Armed Forces also had this to say: “It is no accident that the Science and Technology Bill is the first bill my administration presented to the National Assembly. It is a conscious act to give practical expression to our desire to promote science and technology without which rapid development of our country cannot be possible. We had already indicated the importance we attach to the promotion of science and technology by creating the first fully fledged Ministry of Science and Technology in Nigeria.”
In 2011, the former President of Nigeria, Goodluck Jonathan, made a statement of commitment on S&T as follows: “We are going to run our economy based on science and technology…..because nowhere in this world now that you can move your economy without science and technology. For the next 4 years, we will emphasize so much on S&T because we have no choice, without that we are just dreaming…”
On February 2, 2018, the Buhari-led government signed Executive Order Five which if implemented faithfully is expected make Nigeria have an economy that is knowledge and innovation-driven. This Executive Order will not translate into innovation if the complex interaction between the industry and society are unresolved.
Achieving innovation through S&T, requires working smart, and not hard. Innovation is complex. Yes, innovation is complex but not complicated. If innovation was complicated, Japan, Singapore and South Korea would not be among industrialized nations today. The complex interactions between the industry and society requires a miracle to understand. That the world can muster developed and industrialized nations today is because they have been able to manage those several complex parts that give rise to innovation. The miracle lies in understanding how S&T works with the industry.
Since the establishment of the Ministry of Science and Technology in Nigeria in 1980 successive governments have formulated various policies geared towards improving economic growth. Yet, the economy is sluggishly growing. If Nigeria has not reaped the benefits of S&T in the last 48 years, it only means that something is either wrong with policies on S&T or there are challenges with implementation. Economic development may elude Nigeria without science and technology. Hence, the need for a rethink of the nation’s economic development policy and strategy.