Efraim Shimbali
Namibia and Africa at large, has suffered a huge socio-economic dilution. To understand this dilution, one ought to dig deep to the roots of Africa’s historic community pre-colonialism. Communities of empires with a single head of governance and control. A background of social inclusion and economic ownership of togetherness as well as exchange of possessions without being bias. Gone are the days of investment through sharing. Days of kings or queens receiving economic assistance from the community, and when bad days approach, the palace rescues. Many will recall how Africans went to war with kings and queens only to return with presidents and ministers. History defined what happened, and a systemic change occurred with things falling apart.
With the systemic change that occurred, Namibia found itself swimming in a mixed economy system. With this system, Namibia is associated with huge inequality, high unemployment, societal instability, downgraded economic status, increasing crime rates, and high poverty. Unfortunately, problems that were unheard of in the pre-colonial era. This speaks to socio-economic dilution with a mixed economy that constitutes of private and state ownership. With this mixture there are tensions, but ultimately one must take control to shape and define the path. The worst fall will be when none of the two takes ownership. Which dimension will work best and rescue the socio-economic doldrum of Namibia?
The private sector defines privatisation under the fundamental characteristic of profit maximisation. Often dealing with individual skills backed up by strong capital. The end goal is to earn profit on investment, and it takes advantage when demand is high. The standard of living is usually increased through this process of capturing demand, which will then cater to the little that own it or can afford it. The result will be a raised bar of inequality. whereby, those presiding will serve themselves alongside those that can afford it and cut off the rest. With no vacuum allowed in nature, the rest will try to catch up, but when they cannot afford anything, brutality/criminology to acquire will be the result, or they will surrender in waiting for arising opportunities known as unemployment. To solve unemployment with privatisation, it’s a function of profit measured against expenses, which is directly proportional to entities and population. It requires a quantitative private force to accumulate the population at the expense ofprofit. In case of gross loss or loss of interest, private powers will opt for survival at the expense of the population. On the other hand, it’s self-controlled, and its economic force is run by decisions focused on profit. Its economic power and wealth distribution are amongst the minority owners, usually catering to the rich getting richer. It is not guaranteed that profits circulate within the boundaries obtained, which will negatively impact economic growth. Will privatisation be the solution towards urgent socio-economic transformation?
The public sector defines state ownership, which has a fundamental responsibility of providing services to the population with little to no priority of profit accumulation. Associated with a driving force of inclusivity and well-being of the population. It aims at striking a balance towards socio-economic equity among the people. The space where the population looks up for problem-solving and where accountability towards their well-being is questioned. The public sector enforces and presides over regulatory objectives of socio-economic benefits for all. State ownership co-exists with the objective of continuous revenue generation to execute service delivery as the priority. This will then require continuous production for more revenue accumulation to serve the masses. The overall goal is to improve the living conditions of people and empower a majority, if not all. Factually, it aims at empowering the majority to uplift the minority. In the mixed economy of Namibia, the state mostly accumulates revenue through taxation to
Return service delivery to the people. Taxation is the main source of revenue, and it’s generated from the public and private sectors. The greatest contributor of this taxation revenue will then define and take ownership of socio-economic growth. In Namibia, the public sector doesn’t really constitute a population that contributes enough revenue for state self-service delivery dependence; hence, loans become a necessity at times.
With the mixed economy system of Namibia, contribution from both sectors becomes highly important. However, with the private sector, the contribution becomes tricky as it is summed around profit accumulation. This often results in depressions of the economy and presents the danger of relying on a privately administered economy for socio-economic growth. A good example is the Ramatex clothing industry. On this note, it showcases the importance of a state-owned economy. With the fundamental responsibilities of the state, there is a need for total ownership of the economic means to positively influence social welfare. Which should then involve state capacitating to enhance production and earning enough revenue that in return turns to service delivery. The state ought to be involved in direct business investment and industrialisation to earn direct revenue. The state must capacitate its innovation, capture production of people’ needs, manufacture, make sales, earn revenue, and carry out social welfare on its own. It may not be the employer of everyone, but through state capacitating, it should be the employer of the majority that will then carry the minority. Not forgetting about the private sector, state administration should then produce a mechanism to facilitate privatisation from taking ownership of the economy, as this will be allowing the minority to carry the majority, which will most likely collapse over profit ambitions. The state must focus on capacitating itself to boost production and earn direct revenue towards a prosperous socio-economic growth.
*Efraim Shimbali is Namibia’s YALI 2024 partnership and resources mobilisation coordinator and the author of I Woke Up on African Leadership. He can be contacted at shimbaliefraim98@gmail.com.
