Daily Independent Online.
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Friday, August 13, 2004.
The burden of capital flight
A recent study by the Commission for
Africa, an initiative of the British Prime Minister, Tony Blair, has revealed,
in its authoritative report, that the African continent loses US$15 billion (N250 trillion) yearly to capital
flight to the developed countries of the world. The agency also disclosed that 40 per cent of Africa’s
wealth is stashed away in countries outside the continent. These revelations were made penultimate
week when two of its 17 commissioners, Sir Nick Stem and Mr. Fola Deola,
Chairman of FATE Foundation held a parley with Nigerian journalists as part of
the organisation’s plan to air Nigerian views on Africa and what more the
Western world should do to help develop Africa.
While we commend the boldness of the Commission to
openly admit this telling reality, we lament the fact that this is an age-long
tale which unfortunately was being swept under the carpet by Africa’s
leaders and their foreign collaborators.
The report is indeed a sad commentary on a continent whose economies are
in tatters no thanks to bad leadership, misgovernance, corruption, insecurity,
lack of accountability and political instability. The abyss to which crass opportunism, greed and the quest to
own properties abroad have driven most Nigerians and other Africans is
horrendous and unfathomable. It is
about time we reflected on some of the bitter currents of our existence as
Nigerians and as Africans.
Undoubtedly, the cynicism and hypocrisy that the West
have used all this while to clothe the agonising state of the African economic
condition have been revealed by this recent report. This is in fact the major cause of our over-dependence on
foreign goods. Part of the problem
arises from the fact that most African rich men are not patriotic enough to
invest locally where their money would help transform the society by generating
employment and helping to earn foreign exchange for the country through export
of locally manufactured goods. On
the other hand, government is not helping matters when instead of encouraging
local entrepreneurs to grow, government agencies take delight in the patronage
of imported goods and services.
A case in point is the reported loss of $1 billion
annually by the Federal Government to the importation of computer soft-wares at
the expense of locally produced ones.
Driven by profligacy and self-interest, our public officers are
engrossed in the habit of buying houses and other choice property abroad
thereby stashing the nation’s wealth overseas. A recent report even has it that despite all the campaign by
Government for patronage of home-made goods, Governor Peter Odili of Rivers
State is importing furniture and other materials from abroad for the new
Government House his administration is building. What an excellent way of saving cost in a nation that has
the best stock woods in this part of the world and equally very sophisticated
furniture companies!
Aside from the current commendable action of the
Works Minister, which is just a flash in the pan, the practice has been that
contracts are awarded to foreign firms and paid in hard currency when we have
qualified professionals within who can handle our maintenance, and even
construction, projects without let or hindrance. Indications are that though the leadership may have lost
bearing and is seemingly strutting in confusion, the moral turpitude and inertia
of the led go only to confirm the fatalism of the Nigerian, nay African
condition. A nation that prides
itself as the centre of black power and civilisation, Nigeria is a hostage of
its embarrassing and tragic military legacies. It would be recalled that in 1995, IMB, the world acclaimed
computer organisation, relocated a multi-billion dollar investment from Nigeria
to South Africa because of the Nigerian political crisis.
The recourse to violence as a means of settling
societal difference no matter the degree should be halted. With its propensity to exacerbate
hostilities, violence has contributed immensely to capital flight in
Africa. As part of the game plan
of the West, Africa has been turned into a theatre of war where the
industrialised nations of the world market their arms and ammunition. Our goal in this millennium should have
been to achieve a peaceful, harmonious environment where the individual would
be secured to achieve his optimum ability as a human being. Regrettably, the wanton killings and
destruction of lives and property have continued unabated thus making the
continent unattractive to even our local investors. One major reason for capital flight is the lack of a
dependable justice system. In
Nigeria the judiciary lacks sufficient manpower and the necessary infrastructure
needed for the dispensation of justice.
In most instances, the Executive openly intimidates the judiciary by not
obeying court orders and by deliberately starving it of funds.
Lamentably, our judiciary seems to have succumbed to
this executive intimidation. Most
of our judges now operate with caution so as not to be ridiculed. What is the
need pronouncing a judgment that would not be obeyed? At other times our judges have even countered themselves
- a situation where two individuals can obtain two separate court
injunctions on the same subject.
As a result of all these, as former Lagos State Chief Judge Mr. Justice
Ilori observed: “The confidence of the public in the efficiency of the
judiciary has been shaken and justifiably so”. How many investors would like to put their money in a system
where they are not sure of justice?
Therefore, to attract investment and facilitate rapid
economic growth, Africans must adopt a new set of social, economic and
political values. Both the
political and economic leadership must evolve a new national or continental
vision, commitment of government to the promotion of transparency and
discipline in governance, maturity of political institutions and campaigns of
private sector-led small enterprises development and employment creation. There must also be a smooth democratic
pace and adequate infrastructure and a sound reward system that must recognise
the value of hardwork.
