INTRODUCTION
It is encouraging and commendable that President Goodluck Jonathan finally bow to the wishes of Nigerians to covey a National Conference. This is because the nation is not currently practicing genuine federalism; rather the nation is under the bondage of unholy and forceful marriage initiated by her colonial master in 1914. Due to this unholy unity called amalgamation, Nigeria have been faced with critical challenges ranging from fight for power among various tribes and religions, corruption, tribalism, discrimination, insecurity and lack of trust on the government by the citizens. Therefore having witnessed these challenges, it is obvious that our unholy unity is questionable therefore a national conference is needed. For a nation to be a true federal state, all the component units have to come together and state why they need to federate, if they finally agree to unite, these component units also have to agree on the principles that will guide their togetherness as a federal state. This mutual agreement will certainly go a long way in ensuring peace and stability in the polity. But in the case of Nigeria, the nation was forced to unite by the British authorities in order to satisfy their selfish interest of exploitation. These however have long-tem consequences which Nigeria is currently facing. It is a fact that from the period of amalgamation to independence and post-independence era, Nigeria had witnessed various ethnic and religious crises that catalyzed the various military coups in the country. It is a well known fact that it is difficult for people of different norms and background to be together in peace without misunderstanding and hatred.
Fawehinmi (2000 ) emphasize that The primary duty of the Sovereign National Conference is to address and find solutions to the key problems afflicting Nigeria since 1914 to date. The concern is to remove all obstacles which have prevented the country from establishing political justice, economic justice, social justice, cultural justice, religious justice and to construct a new constitutional frame-work in terms of the system of government-structurally, politically economically, socially, culturally and religiously.
Also it is shocking for some people to say that Nigerians cannot dictate to government. If democracy which we claim to practice is the government of the people, by the people and for the people, it simply means that the life of democracy lies with the wishes of the people whom the government is serving. Nigerians should understand that as long as democracy is concerned, the government remains the servant of the people because it’s powers lies with the people. So for the nation to achieve lasting peace, progress and unity, the Nigerian people must decide the fate of their federation. The people must decide how our unity should survive or be sustained. This peaper will critically analyze the upcoming national conference looking at its strength, usefulness and weaknesses The Sovereign National Conference will give ethnic nationalities an opportunity to examine the questions that have made Nigeria such a disaster and come up with some answers such as the right of every nationality to have greater control over their resources.
CLARIFICATION OF TERMS
Sovereign national conference
A conference is a meeting of two or more persons for discussing matters of common concern. Sovereignty is authority. Sovereign national therefore a conference is a forum of representatives of the various ethnic nationalities, regions, states, interest groups, etc. where issues affecting the Nigerian state are to be addressed and to determine the extent of our continued unity. It is a forum to choose for ourselves whether to continue with the marriage of administrative convenience foisted on us by the British colonialist or to dissolve it.
Primary Function of The Sovereign National Conference:
The primary duty of the Sovereign National Conference is to address and find solutions to the key problems afflicting Nigeria since 1914 to date. The concern is to remove all obstacles which have prevented the country from establishing political justice, economic justice, social justice, cultural justice, religious justice and to construct a new constitutional frame-work in terms of the system of government-structurally, politically economically, socially, culturally and religiously. Furthermore, the conference is to receive and deliberate upon all grievances and whether contained in memoranda or letter from individuals or groups within and outside Nigeria. The Sovereign National Conference will be enjoined to discuss and deliberate on everything under the sun with regards to Nigeria and how to preserve the country in which Nigerians will have fulfillment of their hopes and aspirations.
AN OVERVIEW OF NATIONAL DIALOGUE (TRAITS), A CASE OF THE 4TH REPUBLIC
As a way of responding to the advocacy for a sovereign national conference by civil and non official groups and the opposition, president Obasanjo on February 21, 2005, inaugurated the 400 delegates national political reform conference also referred to as the national dialogue. In addition to hand picking the membership, government also announced conference agenda. The agenda included:
Reformation of the political party system
Electoral reforms
Judicial and legal reforms.
Civil society reforms
Police/prisons system reform
Intergovernmental relations.
Structure of government and governance
Having set out the agenda, the president limited the scope of the agenda to the announced by setting a no-go area for the conference, which border on such issues as the: unity of the country, federal characters, federalism, multi – religiosity, separation of powers and fundamental objectives and directive principles of state policy (Onuorah et’al 2005) these are issues were treated with less result after 3 months implementation, delegations and deliberations.
The Ya’Aadua regime had little less to do with the connotation of dialogue, as he died in office, President Goodluck Jonathan, on the 2nd of October 2013 announced the setting up of an advisory committee on national dialogue to design the agenda for the dialogue. The committee members have since been worn in by the president. Thus this delegates appointed, will set up models harmed is unity with the six geopolitical zone of the country and presently still on the verge to set up a conference to underpin the findings of the delegates. According to the statements made by secretary to government on the 7th October, 2013. The terms of reference include consult expeditiously with all relevant stake holders with a view to drawing up a feasible agenda for proposed national dialogue/conference, made modalities for proposed national dialogue/conference, and to make recommendations to government of various interest groups at the national dialogue will be determined.
SOME ISSUES TO BE DISCUSSED IN THE UP COMING SOVEREIGN NATIONAL CONFERENCE
On 1st October, 2013, President Goodluck Ebele Jonathan, in his independence speech, agreed to set up a committee to look at the modalities of organizing a national conference. For many, the conference is the only panacea to the litany of woes plaguing the country. The belief is that there is need for all sections of the country to come to a roundtable to discuss the continued existence of corporate Nigeria.
This National Discourse will strengthen our union and address issues that are often on the front burner, and are too frequently ignored.” In spite of the non ambiguity of this brief, the chairman of the advisory committee, Dr. Femi Okurounmu, nevertheless commended the President for establishing no “no-go” areas for the committee. Aribisala (2013)
Inalienable right: We need to agree on the inalienable rights of Nigerians. These should include the right to life and liberty; the right to free speech; the right to religious freedom; the right to live and work in any state of the federation without hindrance. Aribisala (2013)
Resource control: A situation where some states generate scanty resources and, nevertheless, come forward every month with outstretched hands for money to be allocated to them from the proceeds of oil from the oil-states is unproductive and unacceptable. There should be a tie-in clause between productivity and financial bailouts from the center. Some percentage of monies receivable must be matched by local income. Every means must be employed to discourage indolence. The Nigerian union must of necessity be an economically productive union. Aribisala (2013)
Devolution of power: Aribisala (2013) emphasis that the center is too strong. A lot of the power struggle for control of the presidency would recede with greater devolution of government to the states. It is clear now that the states are where the real action is. Whatever strides Nigeria is making today is coming mainly from the states. Therefore, there is need for further review of Nigeria’s fiscal federalism. State governments currently receive roughly 26% of the federal budget, relative to roughly 52% for the federal government. The allocation to the states needs to go up considerably to between 30 and 35%.
The biggest corruption in Nigeria comes from the local governments. They receive roughly 20% of the budget and the councilors simply pocket most of the money. The activities and performance of the local government authorities in Nigeria have been dismal. There should be greater accountability structures put in place to ensure that the functions of the local governments are performed with little scope for embezzlement, and without undue interference from state governments.
National Constitution:The Nigerian constitution is a colonial document. The colonialists, in this case, were the military. They seize power, abrogate the constitution, and then impose new ones that reflect their narrow points of view. Thereby, they imprison the country in their inadequacies by instituting very stringent means by which the constitution can be amended. Aribisala (2013)
The military constitution of Nigeria should be thrown out of the window. We, the people of Nigeria, need to sit down and write a Nigerian Constitution that truly reflects the wishes and aspirations of Nigerians. We should not have a constitution imposed on the country through the illegality of a military coup. One of the things that should be in the Nigerian Constitution is that the abrogation of the Constitution by a gang of soldiers is unlawful. Any group of soldiers that presume to abrogate the Constitution should be sentenced to life imprisonment whenever the Constitution is re-established.
Fight against corruption: Corruption remains a major problem in Nigeria. It is an incubus that ravages virtually all aspects of the polity. However, there is near universal agreement that corruption should be fought vigorously. Aribisala (2013) emphasize that A situation where corrupt politicians hardly ever go to jail for stealing public finds in Nigeria needs to be redressed. This can be done through the creation of special courts to try public officers who are accused of embezzlement. Minimum years of imprisonment, such as seven years, should be imposed for those found guilty.
Power-sharing: Certain designated public offices, such as the presidency and vice-presidency, must be rotated among the regions of the country on an equitable basis. The modalities for this process should be ironed out in the interest of national peace and security.
National productivity: National productivity should now take greater precedence over federal character. For the advancement of the Nigerian union, Nigeria has to become far more economically productive. A situation where all emphasis is placed on the division of the national cake and not on the baking and growing of the cake should no longer be acceptable. Aribisala (2013)
The location of economic units should follow economic logic. Economic decisions cannot be subject to federal character if they are to make sense. If it is not advisable to use federal character to choose a national football team, neither should we use federal character to determine the location of a refinery. If the Lagos-Ogun axis is the powerhouse of Nigerian industrialization, then that axis needs to be allocated a disproportionate amount of the electricity. If states create schemes to increase local electricity generation, they should be allocated the requisite increase in electrical power from the national grid. Everything should be geared towards the determination of Nigeria to become an advanced economic giant within the next generation.
State-creation and origin: The issue of further states-creation must be buried. There are already too many states in Nigeria. State creation cannot be based on the desire for access to wealth generated from elsewhere. State creation must be based on economic viability and economic productivity. We cannot continue to spend all of our resources on paying salaries and for administrative purposes. The United States is the richest country in the world. It has 300 million people but only 50 states. Nigeria is one of the poorer countries in the world. We have roughly half of the American population but four-fifths of the states. The United Sates has 100 senators; Nigeria has 109. This is wasteful.
The issue of state of origin should also be addressed. A Nigerian born in a state should be adjudged to belong to that state. A Nigerian who lives in a state for more than a year should have a right to become an indigene of that state. That means he can vote and be voted for. This will go a long way to promote national cohesion.
Big government: The government of Nigeria is too big. A disproportionately large amount of money is spent just paying salaries. When CBN Governor Lamido Sanusi pointed out the need to down-size the civil-service, he was shouted down. But we cannot continue to waste over 70% of our income just on recurrent expenditure. Why for heaven’s sake, must we have 19 ministries with 36 ministers? In big United States, there are only 15. Why must we have Ministers and then Ministers of State? What is the job of a Minister of Information? Not many countries in the world have such a useless ministry. Countries with far more resources than ours do not have half the size of the Nigerian government. Aribisala (2013)
Oil-producing states: The oil-states cannot continue to be made to suffer the consequences of environmental degradation and oil spillages without adequate national compensation. Adequate compensation must also be made for the fact that the oil comes from their area. In this regard, a 13% derivation in the federal budget for the oil states is not enough. It should be at least 20% percent. Such compensation will encourage other states to look for resources in their own states and to benefit from them. Let the West re-energise cocoa production once again. Let the ground-nut pyramids reappear in the North. Aribisala (2013)
Moreover, for the proposed conference to achieve it’s purpose, the Femi Okurounmu led Committee should ensure that all Nigerians are carried along and the influence of politicians and selfish elite should be avoided. All the pressure groups, communities, religions, rural dwellers, students and youths should be equally represented at the conference. Also there should be no ‘No-Go-Area’ in the agenda of the conference. Nigerians should be left to air their view on the country Nigeria. The people should determine if they are satisfied with our forceful marriage or whether they need the divorce of the unholy marriage. Also if the people expressed satisfaction with our unity as a nation, they should stipulate the system of government to be adopted in the nation and the principles that should guide their governance. The people should also determine the method that will produce the general result of the conference. Also the simple-majority method should be adopted in determining the outcome of the conference. This is because if absolute-majority method is employed, it will certainly lead to difficulties in determining the wishes of Nigerians
DRAWBACKS TO THE UPCOMING NIGERIA SOVEREIGN NATIONAL CONFERENCE
It is important to say that British rule was not forged on negotiation with Nigerians, but negotiations with ethnic nationalities. So also there was no Nigerian position but ethnic nationality positions. Seyon (2013) argued that the federation of Nigeria as it is known today has never really been one homogeneous country for it has widely differing people and tribes. This obvious fact notwithstanding, the former colonial master decided to keep the country one in order to effectively control her vital resources for their economic interests thus for administrative conveniences, the northern and southern protectorates were amalgamated in 1914. The only thing the people had in common was the name of their country since each side had different administrative set up.
The root cause of our national tragedies is the fundamental defects that have always afflicted the process of determining every constitutional framework of the polity. Our constitutional arrangement since 1914 to date (2013) have never truly reflected the political, economic, social, cultural and religious realities of the country. The people of the country have never had the opportunity to make inputs into, accept or reject any constitutional framework through a referendum. Seyon (2013)
There are so many grievances and accusations against Nigeria and by Nigerians which the sovereign national conference must consider and resolve with the sole objective of designing a new constitution for the country which will cast into extinction all the evil tendencies which have conspired to make Nigeria a virtual ghost country, deeply and individually polarised in all directions since 1914 to date and more seriously since January 15, 1966.
CRITICS TO THE UPCOMING NIGERIA SOVEREIGN NATIONAL CONFERENCE
Okpi (2013) when caring out an interview in Kaduna observed that Some people believe Jonathan is only playing politics with the national conference, agreeing to it at this time, when political tides seem to be rising against his second term ambition. Let it even be so. And let us force him to concretize it. We now know that he is now weak and he is accepting the idea of a national conference, therefore it our task now to be stronger and make him concretize it and the world will see it. If Jonathan agrees with us on a true national conference, and he makes it public, it is our responsibility to convince him to participate as the government. If he says he agrees with the national conference and we begin to doubt his sincerity, how can we get up? How can we do it? None of us has the solution. It must be a joint effort to find the solution to Nigeria’s problems. If we don’t do that, a social revolution will push us aside and decide the fate of Nigeria. And it can happen. By social revolution, I’m not talking about the imperialist maneuver that was called Arab Spring. I mean a real social revolution leading to a change in the political reality in Nigeria.
Okpi (2013) also emphasize that those against the national conference fear that it may lead to the break-up of the country or the undoing of the 1914 amalgamation of Northern and Southern Nigeria. Okpi tries to indentify identify what is responsible for the negative state of the nation. One of them is the fears you have mentioned. Another is the social, economic and political controlling of all developments in the country, which has produced a political leadership, the result of which is, for instance, this disabling level of corruption, stealing and criminal waste of resources. The system and the leadership is based on self-interest first; public interest second or incidental. If you can change the system from one based on self-interest, to one based on public interest, you will be able to win the confidence of the people. If we really want a Nigeria that is worth its name, ethnic identity should be secondary. The primary thing should be national citizenship – you are a Nigerian. If we cannot have a system of citizenship, then Nigeria is not even worth having. If we are talking about ethnic nationality, it is impracticable. We have ethnic nationalities numbering up to 300 or 400. How is it practicable to have a conference of ethnic nationalities? Even in democracy as we practise it, such a conference of ethnic nationalities will inevitably be dominated by the Wazobia (the Hausa, the Yoruba and the Igbo). You can’t think of an ethnic nationality, which has a population of less than 100, 000 in Nigeria, expecting to be equal with an ethnic nationality, which numbers up to 20million in Nigeria. It is not practicable. But if you base it on citizenship, every single Nigerian should have the same rights with any other single Nigerian.
Suspicious minds: The second attempt at a national conference was made by Olusegun Obasanjo when he initiated the constitutional conference of 2005/2006. Obasanjo’s conference similarly failed as northern politicians became suspicious of his true intentions. It was a open secret that Obasanjo harboured hopes of amending the constitution to allow him to run for a third term in office, and many believed the conference was a ruse to push through this agenda. If this was the case, Obasanjo’s ploy failed when the national assembly voted to maintain the two-term presidential limit. Akinloye (2013)
Like with previous attempts at a national conference, Jonathan’s announcement has also been met with suspicion, particularly around the timing of the plan. Politicking with the 2015 election in sight has already begun in earnest, while the president is currently undergoing the most turbulent challenge to his authority yet.
In September, seven governors from his ruling People’s Democratic Party broke away to form a rival faction of the party; earlier this year, a number of high-profile figures from various parts of the country banded together to form a new opposition party called the All Progressive Congress (APC); and members of his cabinet have found themselves embroiled in scandals. Jonathan’s opponents have not pulled their punches when saying what they think of his most recent plan.
“Why is the conference coming at just about 15 months to the next general election?” asked Bola Tinubu, National Leader of the APC. “Nigeria has never been this divisive in its 53 years of existence, yet President Jonathan now considers a national conference because of the apparent division in his party.”
Meanwhile, Rotimi Fashakin, former National Publicity Secretary of Congress for Progressive Change (CPC), one of the constituent paries of the APC, commented: “The conference is a colossal deception and the president desires to extricate himself from the issues confronting this nation that he has been elected to solve.”
Additionally, the Movement for the Emancipation of the Niger Delta (MEND) has described the proposed dialogue as a “deceit, a distraction and a waste of public funds”, while Japheth Omojuwa, a blogger and political commentator told Think Africa Press, “The conference will not change a thing. We’ve been here before, we don’t need a conference to sack corrupt ministers or deliver the goods of governance to the Nigerian people.”
SOVEREIGN NATIONAL CONFERENCE: PROSPECTS FOR NIGERIA
The Sovereign National Conference will give ethnic nationalities an opportunity to examine the questions that have made Nigeria such a disaster and come up with some answers such as the right of every nationality to have greater control over their resources. The quest for national dialogue has been seen as a panacea for national stability. The deep divisions, controversies and stalemate that emerge from the National Political Reforms Conference are reflections of the divided character of the Nigerian State. The potency of the conference to address and redress the divisive national issues is very weak considering the extreme and irreconcilable positions assumed on issues of resource control, derivation and rotational presidency, among others. The conference, more than anything else, has exacerbated primordial and sub-national loyalty, which has since independence denied the nation of the needed over-arching sense of loyalty and nationalism.
Sovereign National Conference as Solution to Grievances
There are so many grievances and accusations against Nigeria and by Nigerians which the Sovereign National Conference must consider and resolve with the sole objective of designing a new Constitution (the Peoples’ Constitution) for the country which will cast into extinction all the evil tendencies which have conspired to make Nigeria’ a virtual ‘ghost’ country, deeply and invidiously polarised in all directions since 1914 to date and more seriously since January 15, 1966. We must pull Nigeria back from the brink and from the precipice with a Constitution made democratically by Nigerians through the SNC and affirmed in a referendum by Nigerians. The alternative to this path of sanity is to continue disastrously to pretend that pious political preaching, posturing and exhortations and the use of governmental power of brute force will contain the mounting crises. They will not. It is time to call a spade a spade and face the reality of our fate squarely, sincerely and courageously, so as to prevent a disintegration of the country.
The Sovereign National Conference being advocated is to rebuild this single sovereign nation from its collapsing foundation, not to tear the country into several sovereign nations. If we don’t, I shudder to think of the catastrophic consequences to the very existence of the country and its horrible effects on the black race, Black Africa and the world at large.
Let us move away from the brink. The answer is the Sovereign National Conference. We must prevent the experiences of Rwanda, Burundi, Srilanka, Somalia, Sierra Leone, Liberia, Kosovo, Croatia and Bosnia from happening in Nigeria.
The only opportunity we have to do this is the convocation of a Sovereign National Conference. We need to talk, talk and talk ourselves to true peace, genuine justice and appropriate peoples’ Constitution in which all Nigerians will find a fulfillment of their hopes and aspirations and unshaken guarantee of peace, stability and prosperity.
Sovereign National Conference to Nigeria’s Federalism
In the quest of the federalism through the agitation of Sovereign National Conference, it will connote positive and negative impact to the federal structure of Nigeria as federalism is seen as a transcending process.
Sovereign National Conference will bring immerse impact to Nigeria’s federalism, due to the fact that major issues facing the country is federalism will be tracked urgently. These measures will take another look at the composition and operations of the police and other security agencies, census, resource control and labour matters. The national dialogue conference would take an in depth analysis on the items of now on the exclusive list, concurrent and residual list and also at the fourth schedule. Notwithstanding, the Nigeria’s federalism has been the shadow of itself where by it seems to play the role of a partial unity state. Thus the national dialogue will seek to constraint the intergovernmental relations of her federalism, delegating and readdressing her constitutional powers.
The Sovereign National Conference agitation especially through programs like the sovereign national conference will be saddling with the needed legitimacy and genuine powers to make framework for addressing Nigeria’s federalism implantation among the six geo-political zones. This key issues like fiscal federalism where the south-south agitates for more revenue due to it oil producing capacity will be addressed. And also enable state fiscal revenue autonomous from the centre. If the quest for national dialogue will be modeled by the presentation of regional sectional agendas among the geopolitical units, it will promote Nigeria’s agenda/national interest and electoral consensus of each ethnic group.
A real issue at stake, which has not received much attention to date, is how effectively the different tiers of government use their existing resources to perform their functions. In fact, it may be argued that in the context of the Nigerian economy, states and LGAs receive substantial amount of resources, with their total revenues amounting on average to over 5 percent of GDP between 1990 and 1999, and over 10 percent of GDP after the oil price increase in 1999. This report will focus on how the federal system actually works in delivering basic services, and whether there is scope to realign responsibilities both financial and managerial to improve accountability and performance. The analysis will seek to provide some informed speculation on what could be expected in terms of outcomes if revenue shares were changed without any reassessment of the sharing of expenditure responsibilities. Thus, it aims to contribute to the process of national dialogue in the country to reach an agreement on which tier is best suited to undertake what expenditure responsibilities and how these should be financed.
Though with these positive roles it will play, the quest for national dialogue might showcase some negative impact on her federalism. It might forgoes the Nigeria’s federal external problems; where imperialist and multinational operations, partake in the weakening of the nations sovereign powers, which has brought disharmony and marginality through celebration rigging and manipulation of census figures, promoting underdevelopment to sabotage the national economy. This they do by encouraging capital flight through corruption (Omotunde & O.S. Fio – Whiskey 2005).
Also, fall outs of government deep involvement in appointing delegates for National dialogue, and be representative of government rather than the people, as they may not reflect the objective of the messes. The fact that governors and presidents meet with the delegates to renew the on-going of their findings, thus the delegation teensy to reflect government interest rather than either the people or national interest. Thus reading to a government actualizes impact on federalism. The Nigerian agenda/national interest is totally subsumed, and hence the sharp sectional divides among the delegates on issues. The championing of regional agendas and the uncompromising, no retreat stand on some contentious issues show that the survival and unity of the nation occupy background space in the minds of the delegates. It equally manifests the nation’s lack of tradition for bargaining, compromise, consensus and national strategy for managing and resolving national crisis.
Economic Restructuring
The SNC should discuss and resolve the character and nature of the economic system that can ensure sustained improvement in the material lives of the ordinary people. The SNC should be concerned with establishing an economic system that will guarantee economic rights of Nigerians, whether rich or poor.
The ordinary people must enjoy the right to work or unemployment allowance in the absence of jobs, cost-free housing, education, health, water, electricity, etc. In a restructured polity, access to social services by the masses should he regarded as fundamental rights. An obligation ought to be imposed on all levels of government to provide social services such that citizens constitutionally, legally and politically can challenge the government in the event of non-provision. If the provision of social services is made to the the constitutional responsibility of all tiers of government, then national resources will be utilized meaningfully in the interest of the larger society. Accountability of government to the people will equally be promoted because governance will acquire a focused and definitive character. When a government has so many constitutional responsibilities and the people are aware of their constitutional rights and are prepared to fight for them legally and politically, looting, stealing, misappropriation of public resources will be minimized if not eliminated. Fawehinmi (2013)
RECOMMENDATION AND CONCLUSION
To say that the question of the Nigerian unity will not be tampered with at the on-going National Dialogue among other things is a clear pointer to the fact that Nigeria as a nation has a long way to go and that Nigerians are still yet to come to terms with reality.
How do you convene a National Dialogue to discuss and seek solution to Nigeria's problems and exclude from participation the various ethnic nationalities some of which even agitate for secession. Chief Ralph Uwazuruike is agitating for independent Biafran Republic under his Movement For the Actualization of Sovereign State of Biafra (MASSOB) and he must not be taken for granted. Mujahid Alhaji Dokubo-Asari under Niger Delta people Volunteer Force (NDPVF) is calling it quit from the Nigerian federation. The middle Belt region has also come of age and vow not to be associated with the 'core-north' again. These are all political agitations which pose great danger to the Nigerian territorial integrity.
But the religious issues even need much urgent solution. Nigerian Muslims are canvassing for a free Islamic atmosphere to practice their religion without hindrance or molestation. They are striving to bring back their lost Islamic empire destroyed by the British colonialists and merged into what is today called Nigeria.
Therefore excluding some issues as 'no-go' areas in the dialogue regardless of how crucial the issues are is an indication that the conference is being used as a tool to achieve some short-time political ambition and that our so-called leaders are ever ready to compromise the peace and stability of the nation to satisfy their personal interests.
Dialogue, Nigerians must sooner or later be ready to face the inescapable reality: That Nigeria is an artificial creation of British colonial masters created to facilitate their political domination and economic exploitation without consideration of the constituent ethnic nationalities and the geographical situations of the various religious communities and that Nigeria will only know peace when these divergent ethnic nationalities and religious communities have unanimously agree on the terms of their coming together.To face this inescapable reality is a task that must be done. And the more this is neglected the more the country is becoming prone to disintegration
REFERENCES
Omotunde, D. and O. Osifo-Whiskey. 2013. “Britain should apologize to Nigeria - Harold Smith.” Tell, Lagos, Tell Magazine, March 21.
Fassassi, M.A. 2005., “The Essence of Sovereignty.” The Sun, Ibadan, African newspapers of Nigeria PLC, July 22.
Ugwu, Samuel Chijioke (1998). Federal System, The Nigeria Experience. Enugu: Mary Dan Publishers.
Wheare, K.C. (1963), Federal Government. New York, Oxford University Press.
Zabadi, I.S. and Gambo, A.N. (2000), ‘Federalism and National security in Nigeria’. African Journal of Federal studies. Vol.1. No. 1 PP. 65-81.
CITED WORK;
A, OKPI(2013) The Second Republic Governor of Kaduna State, Mr. Balarabe Musa, in this interview with ALLWELL OKPI @ http://www.punchng.com/, speaks on the modality for conducting a national conference.
Aribisala (2013) Issues Before The Sovereign National Conference, By Femi retrieved at @http://thinkafricapress.com/
H.P Seyon(2013), Nigeria: The Benefits And Drawbacks Of A Proposed National Conference - at: http://africanliberty.org
Chief Gani Fawehinmi (2000) The Sovereign National Conference retrieved at http://www.openmindfoundation.com/
Fassassi, M.A. (2005). ‘The Essence of Sovereignty’. The Sun, Ibadan, African newspaper of Nigeria Plc.
Jamilu M. A. Kudan (2013) National Dialogue: Let's Face the Reality Retrived at
www.gamji.com/article4000/NEWS4369.htm
Lagun Akinloye(2013) Nigeria national dialogue; 2013 retrieved at @http://thinkafricapress.com/
Punch Newspaper, (2013). A call for genuine sovereign conference. Written by: Gani Oge.
ANALYZE THE UPCOMING SOVEREIGN NATION CONFERENCE; WHAT PROSPECT FOR NIGERI
TABLE OF CONTENT
INTRODUCTION
CLARIFICATION OF TERMS
PRIMARY FUNCTION OF THE SOVEREIGN NATIONAL CONFERENCE :
AN OVERVIEW OF NATIONAL DIALOGUE (TRAITS), A CASE OF THE 4TH REPUBLIC
SOME ISSUES TO BE DISCUSSED IN THE UP COMING SOVEREIGN NATIONAL CONFERENCE.
DRAWBACKS TO THE UPCOMING NIGERIA SOVEREIGN NATIONAL CONFERENCE
CRITICS TO THE UPCOMING NIGERIA SOVEREIGN NATIONAL CONFERENCE
SOVEREIGN NATIONAL CONFERENCE: PROSPECTS FOR NIGERIA
RECOMMENDATION AND CONCLUSION
REFERENCES
Friday, 25 April 2014
capitalism and its dangers and prospect
PREAMBLE
Adam Smith, the "Father of Capitalism", upended more than the economic order when he published his "Inquiry into the Nature and Causes of The Wealth of Nations" in 1776. His theory disputed the old order of wealth based on land and aristocracy that had organized economies for 500 years in Europe, unraveled the control of wealth by the monarchies and set the stage for the rise of the merchant class and redistribution of power that would begin with the American War for Independence.
Early capitalism required a constantly expanding market for selling its products & a constantly expanding pool of cheap labour. This led to the discovery of the 'new world' & the extermination of its indigenous inhabitants; to colonialism, countless massacres & two world wars. As the world market was finite, capitalism also had to intensify exploitation & create a need for consumer goods. This was the source of class struggle. Collective action by producers was the one threat to capital, so it also had to intensify divisions, between skilled & unskilled workers, manual & mental labour, 'men's' & 'women's' work. As a result the products of capitalism are designed to keep us atomised; the process of production designed to make us slave harder. This was seen in 'Fordism' or 'Taylorism' when all tasks were broken down into component parts & workers' time constantly controlled. This paper seeks to explain the dangers of capitalism, and how it can help developed countries economy.
CLARIFICATION OF TERMS
Capitalism
Capitalism is an economic system in which the means of production is own and controlled by private individual. In capitalist society will have two classes of people the bourgeoisies which are those who have the means of production and proletariats which are the workers those who don’t have the means of production but have labor power . The bourgeoisies exploit the workers. Free enterprise, also known as capitalism, is an economic system where the individuals in the economy have the freedom to create business and conduct economic activity with little or no government intervention. Capitalism is the predominant economic system of the world economy; the system has several important advantages that make it an efficient way to organize the economy.
Definition of Development
Development is not purely an economic phenomenon but rather a multi-dimensional process involving reorganization and reorientation of entire economic and social system. Watler Roodney defined development as the ability of society to tap its natural resources, in order to carter for material and social welfare of the people. Development is process of improving the quality of all human lives with three equally important aspects.
DANGERS OF CAPITALISM
One of the danger of capitalism took place In the 17th century During the industrial revolution , due to the advancement in machinery industry sprang up and there was lots of massive production due to the industrial revolution when this took place many workers were sacked and there was a problem of overproduction and less consumption. In other to sell this produce (excess goods) they decided to colonize some other continent like African, North American, Asia and Latin American.
Many critics have alleged that the capitalist system suffers from inherent instability that has characterized and plagued the system since the advent of industrialization. Because capitalist growth is driven by profit expectations, it fluctuates with the changes in technological or social opportunities for capital accumulation. As opportunities appear, capital rushes in to take advantage of them, bringing as a consequence the familiar attributes of a boom. Sooner or later, however, the rush subsides as the demand for the new products or services becomes saturated, bringing a halt to investment, a shakeout in the main industries caught up in the previous boom, and the advent of recession. Hence, economic growth comes at the price of a succession of market gluts as booms meet their inevitable end.
The Danger Of Capitalism In African And Third World Countries ;
Africa, a continent with virtually all the resources it takes for development, is the worst hit by hunger, starvation, armed conflicts, instability, displacement and abject poverty. Politicians, jockeying for the little resources left by the capitalist class, display the politics of hide-and-seek, repression and oppression.This is mainly because of the system which encourages capital accumulation and profit-seeking. The cumulative effect is flagrant corruption, deprivation, wastage and impoverishment which intensifies underdevelopment.
Walsh (1998) argues that capitalism has helplessly dragged African into the global free trade championed by the International Monetary Fund (I.M.F.) and World Bank; Africa's natural resources are further exposed for deep exploitation by international capitalism, which deteriorates the woes of the already impoverished African working class. This shows that the objective conditions of African socio-economic formations do not favour capitalism. Capitalism and imperialism are perceived as the major cause of the current underdevelopment in Africa. Capitalist development has tended to reinforce the exploitative dependence that enables underdevelopment to persist. The fact remains that Africa will never witness any meaningful development under capital accumulation and market profit-seeking which breed dissension, division, greed, selfishness, tribalism, ethnic chauvinism and the like.
After the 22nd economic community of west African states (ECOWAS) Summit in Abuja, Nigeria, one African president identified division and the exposure of the region's economy (market) to the Western capitalist class as the major source militating against the development of the region. But this is the base of capitalism market profit-seeking and exploitation. It is not enough to identify these problems but more so to resolve them by helping to abolish the system that creates them.
The African working class has the cards in their hands for socialism if only they want it. Indeed, African conditions have revealed capitalism in its harshness and brutality: inequalities are too glaring. In the face of extremities of want and a meagre surplus, it is difficult to sell the idea that those who are in positions to accumulate should take what they can and leave the rest to suffer what they must. Africa's ruling class has run out of ideas for fashioning and inspiring a functional development strategy, limited as it is by the constraints of working with ideas compatible with the maintenance of the existing property relations.
The evils of capitalism are conspicuous in Africa and Africans have lost confidence in capitalism, exemplified by the renewed springing-up of working-class consciousness in South Africa, The Gambia, Namibia, Kenya, Nigeria, Ghana and others but are choked by the external forces of capitalism. Again, another problem for the transition to socialism is the state of the development of productive forces in Africa which may turn even the best of intentions into caricature. The lack of the development of the productive forces appears to encourage political authoritarianism and reduces "Socialism" to the management and redistribution of poverty.
But underdevelopment will surely persist if the existing capitalist relations of production are maintained, and if the dependence of Africa on international capital continues. Therefore, the overturning of the existing relations of production is necessary for overcoming underdevelopment. Socialism is inevitable if development is desirable.
It is obvious that in the event of protracted futile developmental efforts, the politics of anxiety has become institutionalized and increasingly the ruling class is displaying signs of paranoia while the subordinate classes have become frustrated, demoralised and available for induction into extremist movements as in Algeria, Senegal, Burundi, Rwanda and the like. The ruling class is fast psychologising failures which lie in the economic sphere. Walsh (1998)
Through the International monetary fund, World Bank, general agreement on trade and tariff (GATT), and other agencies, backed up with threats of financial sanctions, the imperialist powers forced the underdeveloped countries to open up their economies and drastically scale down state intervention in their economies. Third-world countries, which had previously been allowed some protected national economic development, were opened up to plundering by the multi-national corporations and banks.
The fact is that Africa has less hope of development if the property relations of production and distribution and the market system continue. The reverse is the solution socialism abolishing capital accumulation and market profit-seeking and embracing production for need. The time is now to co-operate with fellow workers all over the world to establish global socialism.
The danger of capitalism on colonization
Countries colonized by European countries where were forced to practice capitalism, which led to underdevelopment in these third world countries. This capitalist during colonization encouraged farmers to produce more of cash crop instead of food crop, this cash crop will then be exported and process in Europe and later brought to African for sale.
Class division
The common capitalist mantra that “anyone can be rich if they work hard enough” is a fallacy. There’s only so much room at the top. In order to make money, first you have to take it from someone else. This can be done through selling things, taxation or any other means. But this means that the rich cannot exist without the poor. Any way you look at it, there’s never going to be equality under capitalism. ( Ryan, 2012)
Johngray (2003) sees Capitalisms the social system which now exists in all countries of the world. Under this system, the means for producing and distributing goods (the land, factories, technology, transport system etc) are owned by a small minority of people. We refer to this group of people as the capitalist class. The majority of people must sell their ability to work in return for a wage or salary (who we refer to as the working class.)
The working class are paid to produce goods and services which are then sold for a profit. The profit is gained by the capitalist class because they can make more money selling what we have produced than we cost to buy on the labour market. In this sense, the working class are exploited by the capitalist class. The capitalists live off the profits they obtain from exploiting the working class whilst reinvesting some of their profits for the further accumulation of wealth.
Johngray (2003) argues that capitalism can lead to Starvation because, if some have an excess of the resources in society, there are others who do not have enough. In Third World countries, many are starving because they cannot afford to feed themselves, while those in Western countries fatten themselves with an excess of food, and waste the rest of it. There is enough food in the world to feed the entire world population.
The profit motive
In capitalism, the motive for producing goods and services is to sell them for a profit, not to satisfy people's needs. The products of capitalist production have to find a buyer, of course, but this is only incidental to the main aim of making a profit, of ending up with more money than was originally invested. This is not a theory that we have thought up but a fact you can easily confirm for yourself by reading the financial press. Production is started not by what consumers are prepared to pay for to satisfy their needs but by what the capitalists calculate can be sold at a profit. Those goods may satisfy human needs but those needs will not be met if people do not have sufficient money. Walsh (1998)
The profit motive is not just the result of greed on behalf of individual capitalists. They do not have a choice about it. The need to make a profit is imposed on capitalists as a condition for not losing their investments and their position as capitalists. Competition with other capitalists forces them to reinvest as much of their profits as they can afford to keep their means and methods of production up to date. As you will see, we hold that it is the class division and profit motive of capitalism that is at the root of most of the world's problems today, from starvation to war, to alienation and crime. Every aspect of our lives is subordinated to the worst excesses of the drive to make profit. In capitalist society, our real needs will only ever come a poor second to the requirements of profit. Johngray (2003
Exploitation of workers
Swedberg,(1998) view capitalism as a system inherently exploitative in nature. In an economic sense, exploitation is often related to the expropriation of labor for profit and based on Marx's version of the labor theory of value. The labor theory of value was supported by classical economists like David Ricardo and Adam Smith who believed that "the value of a commodity depends on the relative quantity of labor which is necessary for its production."
Karl Marx identified the commodity as the basic unit of capitalist organization. Marx described a "common denominator" between commodities, in particular that commodities are the product of labor and are related to each other by an exchange value (i.e., price).By using the labor theory of value, Marxists see a connection between labor and exchange value, in that commodities are exchanged depending on the socially necessary labor time needed to produce them. However, due to the productive forces of industrial organization, laborers are seen as creating more exchange value during the course of the working day than the cost of their survival (food, shelter, clothing, etc.). Marxists argue that capitalists are thus able to pay for this cost of survival, while expropriating the excess labor (i.e., surplus value).]
Marxists further argue that due to economic inequality, the purchase of labor cannot occur under "free" conditions. Since capitalists control the means of production (e.g., factories, businesses, machinery) and workers control only their labor, the worker is naturally coerced into allowing their labor to be exploited. Critics argue that exploitation occurs even if the exploited consents, since the definition of exploitation is independent of consent. In essence, workers must allow their labor to be exploited or face starvation. Since some degree of unemployment is typical in modern economies, Marxists argue that wages are naturally driven down in free market systems. Hence, even if a worker contests their wages, capitalists are able to find someone from the reserve army of labor who is more desperate. Swedberg, (1998)
Societal Damage
Economic growth without control from an outside force, such as the government, results in workplaces that are dangerous and have unhealthy environments. If the only test of a company is profitability, the wealthy minority usually has the advantage of living far from the neighborhoods of the factories, removed from the lives of the workers and the environments they're subjected to.
There is nothing keeping a wealthy investor from backing any project no matter how unwise. This lack of control over investment results in a boom and bust process caused by investors rushing to get a piece of the current popular product. A new technological discovery promises big money, investors flock to it and invest too much, the market collapses because it becomes saturated and the bubble collapses
Some economists, most notably Marxian economists, argue that the system of perpetual capital accumulation leads to irrational outcomes and a mis-allocation of resources as industries and jobs are created for the sake of making money as opposed to satisfying actual demands and needs.
Market failure
Market failure is a term used by economists to describe the condition where the allocation of goods and services by a market is not efficient. Keynesian economist Paul Krugman views this scenario in which individuals' pursuit of self-interest leads to bad results for society as a whole. From this, some critics of capitalism prefer economic intervention by government to free markets. Some believe that the lack of perfect information and perfect competition in a free market is grounds for government intervention. Others perceive certain unique problems with a free market including: monopolies, monopolies, insider trading, and price gouging. Schumpeter, (1954)
CAPITALISM DEVEOPMENT PROSPECT
There are many ways to construct an economy. One model is socialism, in which all people are required to contribute their possessions and earnings to the common storehouse (usually run by the governing authority) for distribution among everyone, even if some of the recipients did not labor to produce anything. Another model is the capitalist model, where individuals or businesses own products or ideas, and decide on their own how to price, manufacture and distribute those goods in a free market without government intervention.
Capitalism Enhances Innovation
Capitalism relies on good ideas or products to succeed. The capitalist figures out what people want or need to purchase, then devises the most efficient way to manufacture and distribute that product. Henry Ford, for example, developed the assembly-line manufacture of automobiles. He, as the creator, benefited greatly from being able to produce more cars. However, he was also able to hire an increasing number of people at a good wage, and was also able to produce cars at a better price. More people had jobs, and more people were able to buy a reasonably priced automobile. The same is true for those who developed many of the medicines and vaccines people use, which certainly enhance our quality and quantity of life, not to mention people who created what were once luxury items, such as refrigerators and radios. Alexis (2008)
Capitalism Eliminates Bad Ideas
If you think of a great idea, you are free to market it in a capitalist economy. If your idea is a good one, your risk--investment in the idea--becomes a reward. People will buy your product or use your service. If your idea is unpopular with potential customers or your product does not work, your risk becomes realized. People will not buy your product or use your service. While some may consider the risk/reward concept to be a harsh teacher, remember that the good ideas survive in a capitalist economy. People are not forced to purchase or use products or ideas that are inferior. Alexis (2008)
Capitalism Empowers Choice
The biggest benefit of capitalism is that it allows you to make choices for yourself. Capitalism creates a sort of contract that allows people to offer a good or service (their choice) and allows you to use or forgo the offered good or service (your choice). It also allows people to choose how much risk they want to take in offering their product or service. Further, capitalism is a friend to the poor. In a capitalist society, the poor are not forced to remain poor. The poor are given the same property rights, laws, market competition and entrepreneurial spirit as the rich. They are free to compete, whether the competition is difficult or easy, to improve their lifestyles and that of their families. With capitalism, the rich person and the poor person are equals, both in rights and in opportunity.
Some people mistakenly think that capitalism is inherently flawed. In a perfect world, where no greed or malice or even hard feelings existed, perhaps a socialist model would work, as well. However, we live in a world where no one is perfect, and capitalism provides a chance for everyone to be equal. Alexis (2008)
Stability
Capitalism is an inherently stable system in that it is consistent with human behavior, according to Alexis (2008). A broad understanding holds that hard work is the only way to advance, and as a result people are incentivized to use their skills to earn a living rather than wait for someone else to provide for them. By placing this premium on hard work, a capitalist society is also better equipped to handle competition from external sources. Ruch (2010)
Dynamic Society
Because there is typically no guarantee of government support, companies must adjust their supply to consumer demand, which results in a more efficient economy. Companies perform better in the long run because they are not able to rely on a stable source of support. Ruch (2008)
Lack of Alternatives
A popularly-held view of capitalism is that while it isn't an ideal economic system, it does have the virtue of being a better option than any of its alternatives. Government-controlled economies are often marked by "corruption, lack of incentives (and) poor information," according to Economics Blog. These problems are far less prolific in capitalist economies as a direct result of government non-interference. Ruch (2008)
CONCLUSION
Capitalism requires a centralised authority - the state. Without this the necessary infrastructure for production - canals, railways, and roads - would not have existed. Capitalism has a wide variety of benefits for economic systems and society at large. Although opinions on the specific nature of these advantages differ, most economists agree on a few basic characteristics of capitalism that are beneficial to most people. While these advantages don't necessarily hold true for every person in a given environment, they do generally apply for the majority of the population.
Even though blame may be seen more as an action, it is still derived from a system of opinions and attitudes which are found in capitalist societies. Perhaps it is the prosperity of those who live in such societies which causes them to assume that those who are not prosperous are always responsible for this condition. The attitude which summarizes that people may always help themselves through hard work does not always apply in situations where too many people need to be fed with too little resources. Blaming the victim, then, is another way in which problems of the Third World are reinforced.
REFERENCES
Alexis (2008) Benefits of Capitalism: Cited At Www.Ehow.Com _
Jeremy Ruch(2010) Capitalism On The Economic System Cited At Www.Ehow.Com _
Roodney W, (1972) How Europe Underdeveloped African Bogle- L Oueverture Publications
Schumpeter, J. (1954) History Of Economic Analysis. Oxford University Press, New York.
Swedberg, R. (1998) Max Weber And The Idea Of Economic Sociology:Princeton University Press,
Princeton. Alexis (2008) Benefits Of Capitalism: Cited At Www.Ehow.Com _
Walsh (1998) "Pyramid of the Capitalist System" depicting an anarchist perspective on statist/capitalist social structures; cited at http://www.worldsocialism.org/articles
TABLE OF CONTENT
INTRODUCTION
CLARIFICATION OF TERMS
DANGERS OF CAPITALISM
CAPITALISM DEVEOPMENT PROSPECT
CONCLUSION
REFEREN
CA
Adam Smith, the "Father of Capitalism", upended more than the economic order when he published his "Inquiry into the Nature and Causes of The Wealth of Nations" in 1776. His theory disputed the old order of wealth based on land and aristocracy that had organized economies for 500 years in Europe, unraveled the control of wealth by the monarchies and set the stage for the rise of the merchant class and redistribution of power that would begin with the American War for Independence.
Early capitalism required a constantly expanding market for selling its products & a constantly expanding pool of cheap labour. This led to the discovery of the 'new world' & the extermination of its indigenous inhabitants; to colonialism, countless massacres & two world wars. As the world market was finite, capitalism also had to intensify exploitation & create a need for consumer goods. This was the source of class struggle. Collective action by producers was the one threat to capital, so it also had to intensify divisions, between skilled & unskilled workers, manual & mental labour, 'men's' & 'women's' work. As a result the products of capitalism are designed to keep us atomised; the process of production designed to make us slave harder. This was seen in 'Fordism' or 'Taylorism' when all tasks were broken down into component parts & workers' time constantly controlled. This paper seeks to explain the dangers of capitalism, and how it can help developed countries economy.
CLARIFICATION OF TERMS
Capitalism
Capitalism is an economic system in which the means of production is own and controlled by private individual. In capitalist society will have two classes of people the bourgeoisies which are those who have the means of production and proletariats which are the workers those who don’t have the means of production but have labor power . The bourgeoisies exploit the workers. Free enterprise, also known as capitalism, is an economic system where the individuals in the economy have the freedom to create business and conduct economic activity with little or no government intervention. Capitalism is the predominant economic system of the world economy; the system has several important advantages that make it an efficient way to organize the economy.
Definition of Development
Development is not purely an economic phenomenon but rather a multi-dimensional process involving reorganization and reorientation of entire economic and social system. Watler Roodney defined development as the ability of society to tap its natural resources, in order to carter for material and social welfare of the people. Development is process of improving the quality of all human lives with three equally important aspects.
DANGERS OF CAPITALISM
One of the danger of capitalism took place In the 17th century During the industrial revolution , due to the advancement in machinery industry sprang up and there was lots of massive production due to the industrial revolution when this took place many workers were sacked and there was a problem of overproduction and less consumption. In other to sell this produce (excess goods) they decided to colonize some other continent like African, North American, Asia and Latin American.
Many critics have alleged that the capitalist system suffers from inherent instability that has characterized and plagued the system since the advent of industrialization. Because capitalist growth is driven by profit expectations, it fluctuates with the changes in technological or social opportunities for capital accumulation. As opportunities appear, capital rushes in to take advantage of them, bringing as a consequence the familiar attributes of a boom. Sooner or later, however, the rush subsides as the demand for the new products or services becomes saturated, bringing a halt to investment, a shakeout in the main industries caught up in the previous boom, and the advent of recession. Hence, economic growth comes at the price of a succession of market gluts as booms meet their inevitable end.
The Danger Of Capitalism In African And Third World Countries ;
Africa, a continent with virtually all the resources it takes for development, is the worst hit by hunger, starvation, armed conflicts, instability, displacement and abject poverty. Politicians, jockeying for the little resources left by the capitalist class, display the politics of hide-and-seek, repression and oppression.This is mainly because of the system which encourages capital accumulation and profit-seeking. The cumulative effect is flagrant corruption, deprivation, wastage and impoverishment which intensifies underdevelopment.
Walsh (1998) argues that capitalism has helplessly dragged African into the global free trade championed by the International Monetary Fund (I.M.F.) and World Bank; Africa's natural resources are further exposed for deep exploitation by international capitalism, which deteriorates the woes of the already impoverished African working class. This shows that the objective conditions of African socio-economic formations do not favour capitalism. Capitalism and imperialism are perceived as the major cause of the current underdevelopment in Africa. Capitalist development has tended to reinforce the exploitative dependence that enables underdevelopment to persist. The fact remains that Africa will never witness any meaningful development under capital accumulation and market profit-seeking which breed dissension, division, greed, selfishness, tribalism, ethnic chauvinism and the like.
After the 22nd economic community of west African states (ECOWAS) Summit in Abuja, Nigeria, one African president identified division and the exposure of the region's economy (market) to the Western capitalist class as the major source militating against the development of the region. But this is the base of capitalism market profit-seeking and exploitation. It is not enough to identify these problems but more so to resolve them by helping to abolish the system that creates them.
The African working class has the cards in their hands for socialism if only they want it. Indeed, African conditions have revealed capitalism in its harshness and brutality: inequalities are too glaring. In the face of extremities of want and a meagre surplus, it is difficult to sell the idea that those who are in positions to accumulate should take what they can and leave the rest to suffer what they must. Africa's ruling class has run out of ideas for fashioning and inspiring a functional development strategy, limited as it is by the constraints of working with ideas compatible with the maintenance of the existing property relations.
The evils of capitalism are conspicuous in Africa and Africans have lost confidence in capitalism, exemplified by the renewed springing-up of working-class consciousness in South Africa, The Gambia, Namibia, Kenya, Nigeria, Ghana and others but are choked by the external forces of capitalism. Again, another problem for the transition to socialism is the state of the development of productive forces in Africa which may turn even the best of intentions into caricature. The lack of the development of the productive forces appears to encourage political authoritarianism and reduces "Socialism" to the management and redistribution of poverty.
But underdevelopment will surely persist if the existing capitalist relations of production are maintained, and if the dependence of Africa on international capital continues. Therefore, the overturning of the existing relations of production is necessary for overcoming underdevelopment. Socialism is inevitable if development is desirable.
It is obvious that in the event of protracted futile developmental efforts, the politics of anxiety has become institutionalized and increasingly the ruling class is displaying signs of paranoia while the subordinate classes have become frustrated, demoralised and available for induction into extremist movements as in Algeria, Senegal, Burundi, Rwanda and the like. The ruling class is fast psychologising failures which lie in the economic sphere. Walsh (1998)
Through the International monetary fund, World Bank, general agreement on trade and tariff (GATT), and other agencies, backed up with threats of financial sanctions, the imperialist powers forced the underdeveloped countries to open up their economies and drastically scale down state intervention in their economies. Third-world countries, which had previously been allowed some protected national economic development, were opened up to plundering by the multi-national corporations and banks.
The fact is that Africa has less hope of development if the property relations of production and distribution and the market system continue. The reverse is the solution socialism abolishing capital accumulation and market profit-seeking and embracing production for need. The time is now to co-operate with fellow workers all over the world to establish global socialism.
The danger of capitalism on colonization
Countries colonized by European countries where were forced to practice capitalism, which led to underdevelopment in these third world countries. This capitalist during colonization encouraged farmers to produce more of cash crop instead of food crop, this cash crop will then be exported and process in Europe and later brought to African for sale.
Class division
The common capitalist mantra that “anyone can be rich if they work hard enough” is a fallacy. There’s only so much room at the top. In order to make money, first you have to take it from someone else. This can be done through selling things, taxation or any other means. But this means that the rich cannot exist without the poor. Any way you look at it, there’s never going to be equality under capitalism. ( Ryan, 2012)
Johngray (2003) sees Capitalisms the social system which now exists in all countries of the world. Under this system, the means for producing and distributing goods (the land, factories, technology, transport system etc) are owned by a small minority of people. We refer to this group of people as the capitalist class. The majority of people must sell their ability to work in return for a wage or salary (who we refer to as the working class.)
The working class are paid to produce goods and services which are then sold for a profit. The profit is gained by the capitalist class because they can make more money selling what we have produced than we cost to buy on the labour market. In this sense, the working class are exploited by the capitalist class. The capitalists live off the profits they obtain from exploiting the working class whilst reinvesting some of their profits for the further accumulation of wealth.
Johngray (2003) argues that capitalism can lead to Starvation because, if some have an excess of the resources in society, there are others who do not have enough. In Third World countries, many are starving because they cannot afford to feed themselves, while those in Western countries fatten themselves with an excess of food, and waste the rest of it. There is enough food in the world to feed the entire world population.
The profit motive
In capitalism, the motive for producing goods and services is to sell them for a profit, not to satisfy people's needs. The products of capitalist production have to find a buyer, of course, but this is only incidental to the main aim of making a profit, of ending up with more money than was originally invested. This is not a theory that we have thought up but a fact you can easily confirm for yourself by reading the financial press. Production is started not by what consumers are prepared to pay for to satisfy their needs but by what the capitalists calculate can be sold at a profit. Those goods may satisfy human needs but those needs will not be met if people do not have sufficient money. Walsh (1998)
The profit motive is not just the result of greed on behalf of individual capitalists. They do not have a choice about it. The need to make a profit is imposed on capitalists as a condition for not losing their investments and their position as capitalists. Competition with other capitalists forces them to reinvest as much of their profits as they can afford to keep their means and methods of production up to date. As you will see, we hold that it is the class division and profit motive of capitalism that is at the root of most of the world's problems today, from starvation to war, to alienation and crime. Every aspect of our lives is subordinated to the worst excesses of the drive to make profit. In capitalist society, our real needs will only ever come a poor second to the requirements of profit. Johngray (2003
Exploitation of workers
Swedberg,(1998) view capitalism as a system inherently exploitative in nature. In an economic sense, exploitation is often related to the expropriation of labor for profit and based on Marx's version of the labor theory of value. The labor theory of value was supported by classical economists like David Ricardo and Adam Smith who believed that "the value of a commodity depends on the relative quantity of labor which is necessary for its production."
Karl Marx identified the commodity as the basic unit of capitalist organization. Marx described a "common denominator" between commodities, in particular that commodities are the product of labor and are related to each other by an exchange value (i.e., price).By using the labor theory of value, Marxists see a connection between labor and exchange value, in that commodities are exchanged depending on the socially necessary labor time needed to produce them. However, due to the productive forces of industrial organization, laborers are seen as creating more exchange value during the course of the working day than the cost of their survival (food, shelter, clothing, etc.). Marxists argue that capitalists are thus able to pay for this cost of survival, while expropriating the excess labor (i.e., surplus value).]
Marxists further argue that due to economic inequality, the purchase of labor cannot occur under "free" conditions. Since capitalists control the means of production (e.g., factories, businesses, machinery) and workers control only their labor, the worker is naturally coerced into allowing their labor to be exploited. Critics argue that exploitation occurs even if the exploited consents, since the definition of exploitation is independent of consent. In essence, workers must allow their labor to be exploited or face starvation. Since some degree of unemployment is typical in modern economies, Marxists argue that wages are naturally driven down in free market systems. Hence, even if a worker contests their wages, capitalists are able to find someone from the reserve army of labor who is more desperate. Swedberg, (1998)
Societal Damage
Economic growth without control from an outside force, such as the government, results in workplaces that are dangerous and have unhealthy environments. If the only test of a company is profitability, the wealthy minority usually has the advantage of living far from the neighborhoods of the factories, removed from the lives of the workers and the environments they're subjected to.
There is nothing keeping a wealthy investor from backing any project no matter how unwise. This lack of control over investment results in a boom and bust process caused by investors rushing to get a piece of the current popular product. A new technological discovery promises big money, investors flock to it and invest too much, the market collapses because it becomes saturated and the bubble collapses
Some economists, most notably Marxian economists, argue that the system of perpetual capital accumulation leads to irrational outcomes and a mis-allocation of resources as industries and jobs are created for the sake of making money as opposed to satisfying actual demands and needs.
Market failure
Market failure is a term used by economists to describe the condition where the allocation of goods and services by a market is not efficient. Keynesian economist Paul Krugman views this scenario in which individuals' pursuit of self-interest leads to bad results for society as a whole. From this, some critics of capitalism prefer economic intervention by government to free markets. Some believe that the lack of perfect information and perfect competition in a free market is grounds for government intervention. Others perceive certain unique problems with a free market including: monopolies, monopolies, insider trading, and price gouging. Schumpeter, (1954)
CAPITALISM DEVEOPMENT PROSPECT
There are many ways to construct an economy. One model is socialism, in which all people are required to contribute their possessions and earnings to the common storehouse (usually run by the governing authority) for distribution among everyone, even if some of the recipients did not labor to produce anything. Another model is the capitalist model, where individuals or businesses own products or ideas, and decide on their own how to price, manufacture and distribute those goods in a free market without government intervention.
Capitalism Enhances Innovation
Capitalism relies on good ideas or products to succeed. The capitalist figures out what people want or need to purchase, then devises the most efficient way to manufacture and distribute that product. Henry Ford, for example, developed the assembly-line manufacture of automobiles. He, as the creator, benefited greatly from being able to produce more cars. However, he was also able to hire an increasing number of people at a good wage, and was also able to produce cars at a better price. More people had jobs, and more people were able to buy a reasonably priced automobile. The same is true for those who developed many of the medicines and vaccines people use, which certainly enhance our quality and quantity of life, not to mention people who created what were once luxury items, such as refrigerators and radios. Alexis (2008)
Capitalism Eliminates Bad Ideas
If you think of a great idea, you are free to market it in a capitalist economy. If your idea is a good one, your risk--investment in the idea--becomes a reward. People will buy your product or use your service. If your idea is unpopular with potential customers or your product does not work, your risk becomes realized. People will not buy your product or use your service. While some may consider the risk/reward concept to be a harsh teacher, remember that the good ideas survive in a capitalist economy. People are not forced to purchase or use products or ideas that are inferior. Alexis (2008)
Capitalism Empowers Choice
The biggest benefit of capitalism is that it allows you to make choices for yourself. Capitalism creates a sort of contract that allows people to offer a good or service (their choice) and allows you to use or forgo the offered good or service (your choice). It also allows people to choose how much risk they want to take in offering their product or service. Further, capitalism is a friend to the poor. In a capitalist society, the poor are not forced to remain poor. The poor are given the same property rights, laws, market competition and entrepreneurial spirit as the rich. They are free to compete, whether the competition is difficult or easy, to improve their lifestyles and that of their families. With capitalism, the rich person and the poor person are equals, both in rights and in opportunity.
Some people mistakenly think that capitalism is inherently flawed. In a perfect world, where no greed or malice or even hard feelings existed, perhaps a socialist model would work, as well. However, we live in a world where no one is perfect, and capitalism provides a chance for everyone to be equal. Alexis (2008)
Stability
Capitalism is an inherently stable system in that it is consistent with human behavior, according to Alexis (2008). A broad understanding holds that hard work is the only way to advance, and as a result people are incentivized to use their skills to earn a living rather than wait for someone else to provide for them. By placing this premium on hard work, a capitalist society is also better equipped to handle competition from external sources. Ruch (2010)
Dynamic Society
Because there is typically no guarantee of government support, companies must adjust their supply to consumer demand, which results in a more efficient economy. Companies perform better in the long run because they are not able to rely on a stable source of support. Ruch (2008)
Lack of Alternatives
A popularly-held view of capitalism is that while it isn't an ideal economic system, it does have the virtue of being a better option than any of its alternatives. Government-controlled economies are often marked by "corruption, lack of incentives (and) poor information," according to Economics Blog. These problems are far less prolific in capitalist economies as a direct result of government non-interference. Ruch (2008)
CONCLUSION
Capitalism requires a centralised authority - the state. Without this the necessary infrastructure for production - canals, railways, and roads - would not have existed. Capitalism has a wide variety of benefits for economic systems and society at large. Although opinions on the specific nature of these advantages differ, most economists agree on a few basic characteristics of capitalism that are beneficial to most people. While these advantages don't necessarily hold true for every person in a given environment, they do generally apply for the majority of the population.
Even though blame may be seen more as an action, it is still derived from a system of opinions and attitudes which are found in capitalist societies. Perhaps it is the prosperity of those who live in such societies which causes them to assume that those who are not prosperous are always responsible for this condition. The attitude which summarizes that people may always help themselves through hard work does not always apply in situations where too many people need to be fed with too little resources. Blaming the victim, then, is another way in which problems of the Third World are reinforced.
REFERENCES
Alexis (2008) Benefits of Capitalism: Cited At Www.Ehow.Com _
Jeremy Ruch(2010) Capitalism On The Economic System Cited At Www.Ehow.Com _
Roodney W, (1972) How Europe Underdeveloped African Bogle- L Oueverture Publications
Schumpeter, J. (1954) History Of Economic Analysis. Oxford University Press, New York.
Swedberg, R. (1998) Max Weber And The Idea Of Economic Sociology:Princeton University Press,
Princeton. Alexis (2008) Benefits Of Capitalism: Cited At Www.Ehow.Com _
Walsh (1998) "Pyramid of the Capitalist System" depicting an anarchist perspective on statist/capitalist social structures; cited at http://www.worldsocialism.org/articles
TABLE OF CONTENT
INTRODUCTION
CLARIFICATION OF TERMS
DANGERS OF CAPITALISM
CAPITALISM DEVEOPMENT PROSPECT
CONCLUSION
REFEREN
CA
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