In the midst of the intoxicating euphoria over the swearing-in of President Muhammadu Buhari as the Head of State of Nigeria on 29th May 2015 in the presence of over fifty Foreign Presidents, Prime Ministers, Foreign Ministers etc., Lt. General T.Y. Danjuma (Retd) delivered a stunning verdict on our political parties and our breed of politicians:
“General Danjuma will certainly be one of the most influential people around President Muhammadu Buhari. He was also one of the most influential people during Buhari’s stewardship as head of state between 1984 and 1985.
Buhari served under Gen Danjuma in the Army and they have known each other during war and peace times.
Beside the fact that both of them served in the Army and retired as generals, both also abhor indiscipline and corruption.
Danjuma only recently urged the new administration to probe the outgoing administration of Dr Goodluck Jonathan.
“What we are hearing is that the treasury of the country is empty at the federal level. I’m calling on the new administration to
investigate what happened to our monies as soon as Buhari takes over power on May 29. With that, some of the stolen funds would be recovered,” the former minister of defence said.
Buhari, during his campaign, also underlined his readiness to tackle corruption head-on once he gets to power.”
It has been featured extensively on CNN’s “Inside Africa” and Bloomberg as well as Al Jazeera.
General Danjuma’s blunt assessment has rightly sent a jolt to the right quarters. However, the issue requires to be discussed within a much wider perspective. Perhaps, we should start with the thesis of Peter Poster in his new book:
“The Psychology of Anti-Capitalism”
Peter Foster was born and educated in England, where he studied economics at Cambridge before working for the Financial Times of London. His columns for the Financial Post have twice been shortlisted for the International Bastiat Prize. In 2011, he received the English-language Economic Education Prize from the Montreal Economic Institute.
He has written nine books. The first, The Blue-Eyed Sheiks, was a number one bestseller. Self-Serve, his book on Petro-Canada, won Canada’s National Business Book Award. He is also a recipient of a Lifetime Achievement Award from the Calgary-based Petroleum History Society.
His magazine journalism has won National Magazine Awards for subjects as diverse as Moscow McDonald’s, oil exploration in the Beaufort Sea and the story behind Toronto’s SkyDome. His latest book, Why We Bite the Invisible Hand: The Psychology of Anti-Capitalism, is available on Amazon.com and Amazon.ca.
In Why We Bite the Invisible Hand, Peter Foster delves into a conundrum: How can we at once live in a world of expanding technological wonders and unprecedented well-being, and yet hear a constant drumbeat of condemnation of the system that created it? That system, capitalism, which is based on private property and voluntary dealings, is guided by the “Invisible Hand,” the metaphor for economic markets associated with the great Eighteenth Century Scottish philosopher Adam Smith. The hand guides people to serve others while pursuing their own interests, and produces a broader good that, as Smith put it, is “no part of their intention.” Critics. however, claim that the hand is tainted by greed, leads to inequity and dangerous corporate power, and threatens not merely resource depletion but planetary disaster. Foster probes misunderstanding, fear and dislike of capitalism from the dark satanic mills of the Industrial Revolution through to the murky concept of sustainable development. His journey takes him from Kirkcaldy, the town of Smith’s birth, through Moscow McDonald’s and Karl Marx’s Manchester, on a trip to Cuba to smuggle dollars, and into the backrooms of the United Nations. His cast of characters includes the man who wrote the entry for “capitalism” in the Great Soviet Encyclopaedia, a family of Kirkcaldy butchers, radical individualist Ayn Rand, father of evolutionary theory Charles Darwin, numerous Nobel prizewinning economists, colonies of chimpanzees, and “philanthrocapitalist” Bill Gates. Foster suggests that the key to his conundrum lies in the field of evolutionary psychology, which offers to help us understand both why some of what Adam Smith called our complex “moral sentiments” may be outdated, and why so many of our economic assumptions tend to be wrong. We are hunter gatherers with iPhones. The Invisible Hand is counterintuitive to minds formed predominantly in small close-knit tribal communities where there were no extensive markets, no money, no technological advance and no economic growth. Equally important, we don’t have to understand the rapidly evolving economic “natural order” to operate within it and enjoy its benefits any more than we need to understand our nervous or respiratory systems to stay alive. But that also makes us prone to support morally-appealing but counterproductive policies, such as minimum wage legislation. Foster notes that politicians and bureaucrats — consciously or unconsciously — exploit moral confusion and economic ignorance. Ideological obsession with market imperfections, income gaps, corporate power, resource exhaustion and the environment are useful justifications for those seeking political control of our lives. The book refutes claims that capitalism’s validity depends on the system being “perfect” or economic actors “rational.” It also notes the key difference between capitalism and capitalists, who are inclined to misunderstand the system as much as anyone. Foster points to the astonishing rise in recent decades of radical, unelected environmental non-governmental organizations, ENGOs. Closely related to that rise, Foster examines with one of the biggest and most contentious issues of our time: projected catastrophic man-made climate change. He notes that while this theory is cited as the greatest example in history of “market failure,” it in fact demonstrates how both scientific analysis and economic policy can become perverted once something is framed as a “moral issue,” and thus allegedly “beyond debate.” Foster’s book is not a paean to greed, selfishness or radical individualism. He stresses that the greatest joys in life come from family, friendship and participation in community, sport and the arts. What has long fascinated him is the relentless claim that capitalism taints or destroys these aspects of humanity rather than promoting them. Moreover, he concludes, when you bite the Invisible Hand… it always bites back”.
Indeed, we should accord due recognition to the robust thrust of the speech delivered by “JK” (Justin King, the former Chief Executive Officer of J Sainsbury the supermarket chain) at the Annual Dinner of the Institute of Chartered Accountants in England and Wales [ICAEW]. His eloquence was spell-binding as he argued that one half of the equation is the distrust of politicians by citizens but the other half is that politicians themselves have issues with businessmen/businesswomen.
“Who is to blame for this popular antipathy to so much capitalist endeavour? The blame lies squarely at the door of the business community itself (and our business colleagues). If the business community is comfortable with the idea that its social responsibility extends no further than doing the minimum they can legally get away with and no more, it has become its own worst enemy.
It is self-evident that business has a moral duty to live up to higher standards than this. We can draw a parallel between what makes one individual a good citizen (which most people accept extends beyond merely obeying the law) and the idea that a different set of rules should apply to corporate citizens.
One major problem business has is that, senior figures from the business community want all leaders to engage in complicit silence on matters of morality.”
By stirring the hornet’s nest, General Danjuma’s views deserve consideration alongside the editorial opinion of the accountancy journal –
“Economia”:
“The recent UK general election campaign has seen almost all politicians, regardless of party allegiance, adopt a stance that is critical of the way business conducts itself.
Politicians exist to garner popular support and tap into public opinion. If there has been a trend to anti-business rhetoric in politics, it is surely a reflection of a wider disaffection with business. By almost every measure the public trusts business less than ever. Part of the explanation for this is a tendency to see all businesses in the same, negative light.
Ed Miliband’s (leader of the Labour Party) early attempts to distinguish between “productive” and “predatory” capitalism captured the public imagination about as much as his talk of redistribution. And arguments that the jobs – not to mention the taxes that pay for public services – are created by businesses are prone to fall on similarly deaf ears.
By popular consensus, the big banks and big businesses are all in cahoots and all the fat cats at the top of all organizations are naturally only in it for themselves.
Entrepreneurs fare somewhat better in terms of popular support, the public seemingly more able to endorse those who have built a small business from scratch than those who have turned a small business started by someone else into a large organization.
Matters are certainly not helped by the following report on the website of KPMG:
“Britain’s Big Five banks paid 60% of their combined profits in for misbehaviour and repayments to customers over the last four years. HSBC; Barclays; Standard Chartered; Lloyds and Royal Bank of Scotland paid £38.7 billion in penalties since 2011 – almost two-thirds of their cumulative profits in the same period. The figure includes £24.4 billion repayments to customers related to Payment Protection Insurance (PPI) payments as well as fines issued by regulators to HSBC and Royal Bank of Scotland (RBS) over their attempts to manipulate foreign exchange rates.”
As confirmation that Nigerian politicians are a great puzzle to the rest of the world, David Letterman in his valedictory show on CBS devoted a segment to the following reports from Nigeria.
Front page headline of “Nigerian Tribune” newspaper of 26th May 2015:
(i) $32 BILLION SUBSIDY FUND, SOURCE OF NIGERIA’S PROBLEM – Saraki
“Chairman Senate Committee on Environment and Energy, Senator Bukola Saraki, on Monday, said mismanagement of fuel subsidy regime was the source of the scarcity currently being experienced by Nigerians.
Saraki, who spoke with Senate correspondents on national issues, in Abuja, on Monday, said he had earlier raised issues about the fuel subsidy regime, but was misunderstood by the Federal Government.
He said the amount involved in the subsidy was in the region of $32 billion, adding that if the Senate had got to the root of the matter in 2012, the problem would not have resurfaced again.
“No matter what is happening now, if you go back to look at the major issue that puzzled us, it was the subsidy management. We are talking about minimum of over $32 billion in five to six years.
That is the difference between where we are now and that time. It has impacted on our exchange rate; it is going to impact on our infrastructure, as there is no money for capital budget.
When you have surplus money, people do not feel the impact. So, the party continues, now that the party is over, everybody is beginning to see the after-effect,” he said.
He stated that the Nigerian National Petroleum Corporation (NNPC) had no business withholding some funds for recovery, adding that oil proceeds should be paid to Federation Account.
“I do not understand how, till today, NNPC will continue to say that there are certain funds they need for recovery. All revenues should go to the central account, but if you do not do that, you pay. These are major policy issues that the National Assembly must be seen as playing a key role in supporting transparency,” Saraki further said.”
(ii) “FUEL SCARCITY BEYOND PAYMENT TO OIL MARKETERS – Okonjo-Iweala
“Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, on Monday, said there are other factors behind the ongoing fuel scarcity other than the debts owed the marketers by the Federal Government.
Okonjo-Iweala, who stated this at the Senate hearing on the scarcity, said it was surprising that diesel, which had been deregulated since the time of former president, Chief Olusegun Obasanjo, was still being lumped into the current scarcity.
“The first thing I want to say is that this government has done quite a lot to demonstrate that it prioritizes payment to marketers.
This is because the economy needs fuel to run and Nigerian families need fuel for all kinds of activities which are important to them and their businesses. But I want to make one thing very clear diesel has been deregulated. It is not being subsidized since the era of President Obasanjo.
So, it is very puzzling to me when you say this about a commodity that is not subsidized. Nigerians will want to know why diesel is affected. Why is everywhere shutting down? The world does not know, but the world needs to know that diesel is not being subsidized.
This is a product that should be freely available in the market for anyone to purchase. The first question is: why is it being lumped in? What is the issue? I too would like an explanation because there is no reason for that.
The second fact that I’d like to put on the table is that we have made very good effort to keep up with payments for the marketers. And I have the numbers.”
However, what brought the house down was the back page report of “Daily Independent” newspaper of May 27, 2015.
Headline: “DRAMA AS OSHIOMOLE SWEARS-IN, SUSPENDS LG CHAIRMAN”
Edo State Governor, Adams Oshiomhole, on Tuesday, did what may pass as erratic when he suspended the Chairman of Etsako West Local Government, Mr Alhassan Mohammed, for two months, soon after swearing him in.
Mohammed was earlier sworn in to replace the former Chairman of the Council, Alhaji Hassan Kadiri, who passed on last week.
The Governor directed the new Vice Chairman of the Local Government, Mr. Busari Yusuf, to act as the Interim Chairman, pending the findings of a panel of enquiry to investigate the allegations against the new Chairman.
Speaking at the swearing-in ceremony on Tuesday, the Governor explained why he had to suspend the Chairman who had just been sworn in.
He said: “The name of the former Vice Chairman who is now the Chairman has been mentioned by several persons as being responsible for financing and instigating students who are supposed to be on vacation (and who are on vacation) to come back, like a general purpose vehicle, to carry out those protests in order to force the resignation or the removal of the Chairman who was bedridden.
As a matter of conscience, therefore, I have decided that these allegations have to be investigated and under the Local Government Amendment Acts, while these investigations are going on, the Chairman has to be suspended.
I have served him his suspension letter, he stands suspended with immediate effect and I will be announcing a Commission of Enquiry that will investigate all the issues that led to that protest.
Until then, depending on the findings of the Committee, the Vice Chairman that has just been sworn in will act as the Chairman of Etsako West Local Government Area, in accordance with the Local Government Amended Act.”
While appealing to the people to maintain calm and ensure peace in the local government, Oshiomhole said: “I want to appeal to our people, let no one do anything to undermine the peace and stability of Etsako West Local Government.”
He added: “This government will not submit to political sentiments; we must respect people even on their sick bed and anyone who seeks to profit from the misfortune of others does not have my backing.”
Americans were somewhat bewildered by the front page editorial of “The Nation” newspaper of May 27, 2015.
Headline: “HONOURARY HIT WOMAN”
- Yale University’s odd recognition of Okonjo-Iweala
“The award of a honourary doctorate degree in Humane Letters to the outgoing Minister of Finance and Coordinating Minister for the Economy, Dr. (Mrs) Ngozi Okonjo-Iweala, is a stark demonstration of the willful blindness that can affect even the most enlightened of Western institutions.
Okonjo-Iweala becomes the second Nigerian to receive such an honour in the university’s 314-year history, after Nobel Laureate, Prof. Wole Soyinka, who was awarded a honourary Doctor of Letters degree in 1980.
In his remarks, the President of Yale, Prof. Peter Salovey, described Okonjo-Iweala as “a brilliant reformer and dedicated civil servant” who “has spearheaded efforts to stabilize and grow Nigeria’s economy, battling widespread government corruption and creating greater fiscal transparency and discipline.”
There is no doubt that the minister is blessed with a larger-than-life reputation, not least because of her global prominence as a senior executive at the World Bank and her first tenure as Minister of Finance which was distinguished by major fiscal and economic reforms, most notably the debt write-off negotiated with the Paris Club of creditors in 2005.
However, if Okonjo-Iweala is to be assessed on the basis of her current performance as opposed to her past achievements, it is hard to see how Yale can rationally justify its award. If she has received worldwide renown for the things that she did well, she cannot avoid censure for what she did badly.
As coordinating minister for the economy, she bears a great deal of responsibility for turning a nation that was once flush with cash to one that is now struggling to pay salaries.
There is no shortage of evidence that the minister has fallen far short of expectations. A particularly obvious example lies in the fact that, while she was being feted in New Haven, her fellow Nigerian citizens were caught in the throes of the most devastating fuel crisis ever to occur under the Jonathan administration.
The scarcity, which is entering its fourth week, is the culmination of the minister’s signal failure to deal with the nagging fuel-subsidy issue competently and honestly. In the wake of the protests which convulsed Nigeria after the Jonathan administration attempted to remove subsidies on fuel in 2012, government made a three-pronged promise: to comprehensively investigate the glaring discrepancies in the payment of subsidies; to create a programme aimed at ameliorating the effects of increased petroleum prices; and to strengthen local refining capacity in order to reduce the nation’s ludicrous dependence on imported fuel products.
None of these promises was fully met. The investigation of the fuel subsidy scam has been bogged down in the courts; not one person has been sentenced. Refineries are still operating below optimum capacity, and private investors have largely declined to take up the slack.
Nigeria’s overall economic performance has not been that good, either. Although the country became Africa’s largest economy under Okonjo-Iweala’s watch, its new pre-eminence only appears to have underlined the structural deficits which still bedevil the nation.
Worse still, the Jonathan administration has been plagued by misappropriation scandals mainly revolving around the Nigerian National Petroleum Corporation (NNPC), ironically aggravated by government’s clumsy attempts to dismiss them. The incoming Buhari administration is widely perceived as inheriting the worst economy in the nation’s history.
In essence, there is a surfeit of hard facts and concrete figures to show that Okonjo-Iweala has superintended a national economic system riddled with incompetence, shambolic policy implementation and bare-faced corruption. All the honourary doctorates in the world cannot change that. Yale University is too serious an institution to lend its accolades to mediocrity as it has done to Okonjo-Iweala.
By Bashorun J.K. Randle, OFR, FCA
