Quote:
Originally Posted by Waves
Please what is the common denominator?
The writers suggestion about state owned banks may be problematic, but the unstated problem remains. We have a very serious problem of Capital Formation in Nigeria. Unless this is resolved, we are unlikely to move forward. The sectors of the Nigerian economy that have been growing of recent (Telecoms and Crude Oil production) owe their growth to foreing capital. Either we get that kind of funding to other sectors or find a way of deploying Pension Funds to these sectors.
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I agree wih overlord, there is no getting away from it, corruption is the common denominator. At the end of the day the economic system is surbordinate to the political and legal systems, so it should come as no surprise that problems in either will make it more dysfunctional.
On the issue of capital formation, the Nigerian Goverment is not the same as the Greek Government, it is a currency issuer. If corruption were not so rife and it was bent on achieving development, it can print as much Naira as it wants to achieve its policy objectives.
Capital Formation in the days of Okonkwo was warring with neighbours and expanding ones land. Money has made that unecessary. And all sovereign states, except those in the EU, have the right to issue their own currency and use it to achieve their aspirations. If there is the will, the government can spend as much naira as it wants into existence. The issue of scarcity will still remain and is the only limiting factor, and manifests itself in inflation. Should the government spend unwisely inflation would come sooner than later, if wisely, later than sooner.
Re: Economicwatch
hispy99
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