BusinessDay... the voice of business: ETTEHnomics

ETTEHnomics
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Ogho Okiti on 04 October, 2007 12:00:00
 
Since the beginning of the Etteh problems, I have deliberately refrained from
commenting on it on this page, partly due to some urgent things I needed to get
out and partly because I thought I should wait for the issue to run its course.
Following investigations into the contract scam involving the Speaker and her
deputy by the Idoko led panel, the following conclusions were reached. It was
concluded that due process was not followed in the award of the contracts. Other
conclusions are that there were major acts of omission and disregard for laid
down procedure; there were no basis for arriving at the approved contract sums;
there was no budgetary provision for renovation, and furnishing of the
residences; the memoranda for the award of the contracts presented were raised
before some of the quotations for the jobs were processed; some of the companies
that sent quotations were not registered with Corporate Affairs Commission
(CAC); that some principal officers were excluded from the meeting that
deliberated the contract; and that all quotations relating to the renovation and
furnishing contracts were first acted upon by the speaker.
By due process and procedures, the panel explained that the award of the
contract contravened laid down rules and procedures. Obviously, the laid down
rules and procedures were there to prevent both perceived and real corruption,
the same way the type of national economics we have followed failed to follow or
imitate the process by which countries have developed. And when the report says
there was no budgetary provision for the expenditure, it reminded us, how fiscal
policy was carried out since independence. The government has said things will
change, and we hope it does.
Etteh though, was quoted to have said there was nothing wrong in wanting
something good for herself. Yes, I agree with that. By that, she meant people
were begrudging her because she was doing well for herself. People were rather
jealous of her. No, I am not jealous of you. I rather "sympathise" and "pity"
you because you did not sense or gauge that the mood of the nation has changed,
and whether due process was followed or not, it is preposterous to renovate any
government official house for that colossal sum.
Everything about the contract stinks and potently reminds us why we are still
crawling after 47 years of independence as a nation. We are still crawling
because we have been practicing ETTEHnomics. ETTEHnomics is the economics of
consumption and not production. It is the economics of suppliers and
contractors; it is the economics of patronage; it is the type of economics
government officials have ever known; it is the economics of what was 10 per
cent, perhaps 100 per cent of late; it is the economics of mediocrity as
practiced by mediocre government officials; it is the economics of anti people,
it is the economics beyond our means; it is the economics of the consumption of
oil revenue; and obviously, the economics of waste and corruption.
What is the root of the practice of this type of economics? Let me tell you a
story of a man married with 36 children. The name of the man is Nigeria. He sits
in a city called Abuja and presides over the affairs of his children spread over
his massive arable land. The children are industrious and of very high
intellect. Although there should have been some autonomy in their written
agreement, but that is where the autonomy ends. The essence of autonomy is
primarily fiscal, in practical terms, this is non existent. We will come to that
shortly, but let me continue my story.
Among the 36 children, only 4 of them engage in some production of some
significance. The produce of these 4 children are owned and managed by the
father, and get derivation for their efforts. The reason for the ownership dates
back to certain family disagreements and confusion years ago. As a result, they
are not allowed to keep their money and all is remitted into the father’s
account before it is shared out among the 36 children and over 700
grandchildren.
Before this arrangement, the few children the man had used to work really hard
as there was a healthy competition amongst them, and because of that, the whole
family prospered. Since the arrangement, all the other children had stopped
working. From Oyo to Kaduna, Delta to Ekiti, and Anambra to Bauchi, and the
cousins and nephews they all send to Abuja to represent their interest, everyone
is scrambling for a share of the reward of production being carried out by these
few children.
Please think for a minute, if someone is glad to provide you with a measure of
significant amount, for producing nothing, will there be a motivation to do
something? The reason we are where we are, is because, every state governor sit
in their state awaiting monthly allocation. After collecting their monthly
allocation, they also collect for their local governments. Now, consider a
typical governor in the South, West and East and the North; most likely, never
had the need or the initiative to visit the Niger Delta but everyday argues how
much his state deserves from the federation pot. It is the same ETTEHnomics. How
else would you describe the type of economics we practice if governors are
unable to tell you the components of their state economies? How else would you
describe the type of economics we practice, if governors are not able to tell
the GDP of their states and how to grow such GDP? To get a semblance of what I
am talking about, listen very soon to budget pronouncements from the states, and
you will discover it is all about how to distributing the largesse from Abuja.
That is ETTEHnomics.
Should you be reading my column for the first time and decide to take issues
with me. Please do not take it personal. Those that have been following my
analysis will testify that I write from the angle of national development, so
where I come from is not an issue. To buttress my point, if you ask me to choose
in terms of potential, Lagos or Delta, I will not hesitate to choose Lagos. The
point I am making is that, by nature, human beings and by extension, states, are
relaxed because there is some allocation coming from somewhere. Singapore is a
country that imports water and has no natural resources at all. Japan is
virtually in the same league and it is the second largest economy in the world.
It is a question of vision, and sometimes, visions are forced on us by
circumstances. However, as things stand, the governments of the states of the
federation are not expected to work. Until we begin to face some home truths, we
will remain where we are. For instance, what was Oyo State doing with 34,000
workers until they were all sacked, and to demonstrate my point, the economy in
Oyo has not felt the sack. Since Awolowo built the Sectariat, (please go and
check) you will see that nothing has been added. Awolowo did not practice
ETTEHnomics.
Finally, sometimes bad phenomenon can be very stubborn. The more you try to
offload them, the more they try to stick with you. The Etteh scandal has stuck
with us for a very long time. The benefit is that, it has run its course and the
findings of the panel have been made public. What is good for Nigeria has become
very bad for Patricia Etteh. If she had resigned many weeks back and give an
excuse, say, ‘ for the sake of the country,’ she would have been applauded.
Now, she has been disgraced, and she still has to go. Let us use that as a basis
for starting the process that will put an end to ETTEHnomics.