THE NATION WEDNESDAY, JUNE 6, 2012
19
EDITORIAL/OPINION EDITORIAL FROM OTHER LAND
COMMENT
Set, and Left, Adrift
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What growth? •If what is happening to our economy is growth, then we have to redefine the word
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HE National Bureau of Statistics (NBS) has reported that the economy’s growth actually dipped to 6.17 percent in the first quarter of the year, compared with the growth of 7.13 percent recorded in the corresponding quarter of 2011. The bureau attributes the development to several factors: the removal of subsidy on petrol and the ensuing civil protests; weaker consumer demand – the consequence of general increases in price levels across the economy; higher costs of production and, of course, the prevailing security situation. It claimed nonetheless that the recorded growth actually surpassed its forecast of 5.34 percent for the quarter – which it attributes to the legendary resilience of the economy. Resilience or not, the NBS figure has merely confirmed our fears about the negative effects of the removal of subsidy on petrol. The picture painted by the NBS of a general rise in price levels across the board, the negative impact on production costs and the shrinking demand for goods and services – all deriving from the action by the Federal Government – obviously bear out the fears that the removal of subsidy forebodes nothing but trouble for the economy. And just as the NBS noted, the impact is mostly noticeable in the non-oil sectors of manufacturing, wholesale and retail, telecommunications, which on the aggregate declined from 8.73 percent in the first quarter of 2011 to 7.93 in the first quarter.
And if it seems any paradox – the NBS expects stronger growth in the second quarter based on what it described as “recent sectoral policies” in the non-oil sector. In a country where 70 percent of the population is said to live below the poverty line, the point has always been made that this is hardly the time to shrink citizens’ disposable incomes through such measures as high taxation and fuel subsidy removal which can only push more of the population down. Indeed, a better strategy would have been to reflate the economy by enhancing consumer spending power to get businesses going. This is where the incongruities of the government, luxuriating in the illusion of outlandish growth projections (fuelled by no other than earnings from crude oil), in an environment of rising poverty and unemployment cannot be more apparent. The Federal Government should borrow from the developed countries currently experiencing the excruciating pains of the shrinking economies, the imperative to drive economic growth as against making fetish of austerity. The tragedy of Nigeria’s so-called growth isn’t just that it is driven by the commodity – crude oil; it is neither inclusive nor deep; hence it is at best superficial. The challenge is to deepen the economy by getting more people to work, to lift many more out of poverty. The surest strategy, in the circumstance, is for the government to embark on an aggressive investment in infra-
structure. At the moment, too little is being done with very minimal results. Massive investment in infrastructure would serve multiple purposes: jobs with great multipliers to the economy will be generated instantly; it would certainly unleash the potential of the economy currently locked in, not to talk of shoring up the economy’s capacity (output) and competitiveness. If it seems any lessons at all, the experience of the past decade plus – of socalled growth -- should instruct on a different paradigm of measuring progress. What manner of progress is it that does not deliver jobs or lift anyone out of poverty? What is progress in a situation where majority of the population are effectively locked out of the economic system?
‘If it seems any lessons at all, the experience of the past decade plus – of so-called growth -- should instruct on a different paradigm of measuring progress. What manner of progress is it that does not deliver jobs or lift anyone out of poverty? What is progress in a situation where majority of the population are effectively locked out of the economic system?’
Criminal connivance •Professionals should not abuse their skills by helping fraud BRAHIM Lamorde, as chairman of the Economic and Financial Crimes Commission (EFCC) is no doubt competent to speak on matters of corruption in the country. Being formerly in-charge of the commission’s operations, and now at its helm, he could be described as the repository of corruption tracking in the country. Thus, his verdict of criminal connivance against professionals in the commission of economic crimes in the nation should not be considered as ranting of an ant. During a courtesy visit on Lamorde in Abuja by the Association of Professional Bodies of Nigeria (APBN) led by its president, Segun Ajanlekoko, he bemoaned: “Most of the corrupt cases we encounter are aided by one professional or another. In money laundering, for example, bankers and accountants are involved, in estate and property- related crimes, quantity surveyors are also involved… It is not in all cases that people steal raw cash, but
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‘We must however add that the commission has a great role to play in restoring sanity to the professions. Since most of the regulatory bodies saddled with the responsibility have refused to live up to expectations, the EFCC should wade in by investigating cases brought to its attention, with a view to diligently prosecuting any professional found to have committed or aided fraud in the course of his duties’
in some instances rely on professionals to doctor documents that will aid them in perpetrating corrupt acts.” The association is made up of 26 professional bodies that are chartered and recognised by Acts of Parliament. The EFCC is obviously miffed by the rampant connivance of professionals with suspected fraudsters in entrenching corruption. Just recently, its Review Team reportedly uncovered alleged non-diligent and untidy prosecution of 13 former bank executives by counsel contracted to do so. The team reportedly discovered that some of the reversal of fortunes suffered in court by EFCC had to do with mishandling of cases by trial counsel. Several cases, especially those involving nine distressed bank chiefs, were thrown out on avoidable technical grounds. Unfortunately, some of the affected lawyers are senior advocates who are expected to raise the bar of standards and excellence in the legal profession. They handle the cases shoddily because the anti-graft agency is not paying their bills. The EFCC investigates and arraigns in court, suspects involved in distressed bank frauds while the Central Bank of Nigeria (CBN) reportedly offered to oversee the payment of legal fees, being the consequence of its banking reform. The flopped bank cases in particular give the public the impression that the commission is compromising or deliberately frustrating the trial of the former bank chiefs. Even some doctors connived with fraudsters standing trials in court to come up with phantom medical reports that would make them escape from justice.
We are appalled by the entire situation because professionals, wherever they are, should help develop the society. It is sad that many Nigerian professionals are doing the opposite because of the rampant get-rich-quick syndrome. Most professional bodies can no longer promote best practices and good corporate governance among members because there is an absolute breakdown of ethics across professional boundaries. The various professional bodies should quickly do something to halt this ugly trend of professional immorality. It continues to fester because few professionals have been sanctioned by the umbrella associations or even the disciplinary committees regulating discipline in the professions. We call for the restoration of values among professionals in the country. We share the sentiment of Lamorde’s EFCC on this matter. We must however add that the commission has a great role to play in restoring sanity to the professions. Since most of the regulatory bodies saddled with the responsibility have refused to live up to expectations, the EFCC should wade in by investigating cases brought to its attention, with a view to diligently prosecuting any professional found to have committed or aided fraud in the course of his duties. The question of who institutes proceedings against such professionals is not important; what is important is for them to know that they can be caught and prosecuted if they compromise their professional integrity. That is a way to restore sanity and corporate probity in the operations of the professionals.
ROUND the world, some 42.5 million vulnerable people were forcibly out of their homes and on the move in 2011, according to the office of the United Nations High Commissioner for Refugees. There are growing concerns that those numbers will get even worse in the face of armed conflicts and political violence that are increasingly exacerbated by climate change, population growth, rising food prices, natural disasters and struggles for scarce resources. According to António Guterres, the United Nations high commissioner for refugees, Africa and Asia are the most vulnerable regions. But new crises are appearing unpredictably — in the past year, thousands have been driven from their homes in Syria, Sudan, Mali, Yemen and Côte D’Ivoire — and will continue to grow. Since 2005, the agency’s caseload has expanded — from about 24 million, mostly internally displaced persons and refugees, to roughly 37 million at the end of 2010. Today’s environment is also more chaotic. Instead of negotiating with governments for humanitarian access, the agency often must deal with multiple actors, including warlords and rebels and breakaway regions, even less subject to international pressure, law or shaming. The risk for aid workers and the displaced has increased. There is also a crisis of political will. The international community, preoccupied with financial and domestic crises, has been less willing to help — whether with money or diplomacy or offers of asylum. Take the 7.2 million refugees considered to be in “protracted exile,” meaning they may never go home again. The report said that everybody involved — host countries, countries of origin and donors — “seem less able to work together to find solutions.” There are no easy answers, but certain strategies stand out. In 2010, 94 percent of all resettled refugees went to just four countries: Australia, Canada, Sweden and the United States, which takes more than any other country. Surely there are scores of others that can also open their doors. Better systems for predicting crises and quickly responding to natural and man-made disasters would also help. As ever, the best solution is for the world to do a better job of pre-empting conflicts in the first place. – New York Times
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