By Abdulwarees Solanke
The introduction of a new price regime for Petrol in Nigeria last year has significantly altered the country’s socio-economic landscape. This is to such an extent that there is a visible reduction in number of cars on her roads now.
The so-called market forces of demand and supply of petrol now dictate how Nigerians spend time on the roads and at home. The government is now cutting needless journeys. People now pool to drive to work. Even, those who disdain public transporters have technically become commercial drivers.
There are stories that owners of some vehicles that are not fuel efficient are offloaded from their garages. Whether or not subsidy is returned or permanently removed from Nigeria’s petroleum consumption lexicon.
The country will still have to deal with the enduring challenges that confront many developing nations. The situation is challenging governments to be more innovative and responsive in meeting the public needs in terms of affordability, accessibility and efficient services for the citizenry to enjoy a quality life.
This is because the government’s direct provision of certain public goods and services is almost becoming an anathema due to corruption, compromises and bureaucratic bottlenecks in the system. There is also needless muscle flexing among agencies and departments involved in the delivery process. This often results in delays and poor quality of service delivery.
Provision of some public goods, is best left in the hands of private sector, if such are not strategically significant. In these scenarios, the end user is always at the mercy of either the corrupt public official or exploitative private sector provider.
From public water supply, electricity, transportation, market stalls, health and education to infrastructure for conveniences, entertainment and sports, the reality is that the government cannot have its hands in all the pies.
Where Big Government is being discouraged because of bloated expenditures without impact, what should be an ideal size of the government? What must it be involved in? What must it leave? In leaving any sector to private providers, what must be the ground rules? These are the issues related to market deregulation that prompt commercialisation and privatisation of public goods and services.
However, champions of market deregulation mostly think not necessarily of citizens’ interests but in terms of opportunities for profit maximisation, in terms of players’ freedom of entry and exit into the market. And in terms of the absence of restrictions on the pricing of goods and services provided emphasising market forces or demand and supply as the ultimate arbiter and in terms of non-involvement of government pay standards for workers or labour.
When these opportunistic considerations are factored in and the government caves into apostles of deregulation, the market goes haywire. Public transportation, telecommunications and electricity supply are areas often cited as businesses in which the government should get involved directly.
But then, the government has an overriding public interest to protect in many ways. That is, while the government may not be the sole provider of such services, it must ensure that whatever the private sector providers offer meets every criterion. A criterion of affordability, accessibility, quality and efficiency. This is where regulation comes in.
But beyond regulation, the government must continue to make long-term investments in critical infrastructure and maintain them. Any serious or public interest-based or interested government cannot afford to succumb to champions of deregulation, because this is the definition of abdication.
At all times, the concern of the government must be public value, which bottom line or financial gains can never measure. Public value is a utilitarian principle of delivering the greatest good to the greatest number of people.
Remarkably, this is also a democratic principle. Pitch this against deregulation, it would seem apostles of market determinism are nothing more than merchantilists with huge resources to control and command strategic sectors of the national economy. Indirectly, they target the national jugular and ultimately hijack the state power, rendering the government powerless.
A closer look at champions of deregulation in the economies of developing countries reveals something. They are mostly front for transnational or multinational corporations perpetuating the neo-colonial agenda of economic exploitation.
They are not interested in the best interests of countries whose economies they want to control. They are merely interested in their population as a fertile market to milk their citizens and repatriate profit massively. Whatever they may give in that process as CSR usually amount to tokenism.
Yes, Big Government is anachronistic while lean, smart and nimble government is desirable. But what is needed in managing the African and Third World economies are strong and transformational governments.
That is a government that understands world dynamics and cannot be stampeded into buying unfavourable policies from the international system. Such policies only enrich a few and indirectly transfer power to fronts for foreigners.
Such governments, public or national interest-based, must be ready to confront these so-called powers and chart their own course of economic emancipation, prosperity and development. They must never give in to champions of total deregulation.
They must find a middle path of transferring economic command to their citizens in the consciousness of partnership for development. And not an abdication of responsibility in favour of fronts for foreign interests and powers.
In this case, we cannot wish away regulation in our public life. Even, if market deregulation becomes a necessity or reality. In Nigeria, the public expects this from the new government under President Bola Ahmed Tinubu.
He has promised a ‘Renewed Hope’ for the country. To inspire a new Nationalism in Nigeria, President Tinubu cannot afford to let the nation down.
Abdulwarees is a fellow of the Chartered Institute of Public Diplomacy and Management and 2007/2008 Commonwealth Broadcasting Association Scholar in Public Policy at Universiti Brunei Darussalam (korewarith@yahoo.com, +2348090585723)
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