Conditions of Failing Nation States

The greatest kingdoms and nations of this world- eventually brake in pieces, were conquered and left for spoils either economically, politically and socially. Think of the Greek, British and the Persians. We learn from them that success is not a permanent state in life and what will work for you today, may not necessarily be true tomorrow. You and I are privileged to live in a global village- where at the touch of a button you are made of aware of the business of any county, nation, kingdom or state in real-time. So, it with background that I take you through a set of pre-conditions for you to consider on whether or not you are part of a failing nation or not.

High Debt Ratio

By virtue of living in this fallen world- nothing comes free and each comes with a price. In the language of business, we often hear of the interchanging words known as 'supply vs demand' and the role they play in a free market economy. Rightly so, in order for a country to make worthwhile investments for their people and future sustainability, loans will be the order of the day. However, the wise nations will secure loans at lower interest rates premiums to enable them to repay in a shorter duration. Likewise, these loans which are taken will be put to prudent fiscal management and a return on investment (ROI), will have been achieved. Sadly, we have other countries that borrow for a certain development project; only to divert those funds for other unintended purposes. The biggest loser remains to be the citizens of these impoverished nations.

Corruption in less developing countries or lobbying in the developed ones?

We have become so clever with words but the meaning is never lost in translation. President Trump may refer to it as 'lobbying' or giving kickbacks and here we may say: 'towa kitu kidogo', which means to give something small in exchange for services. Corruptions' genesis must also be attributed to the colonizers of the African continent, who came in to create boundaries and borders where none existed, introduction of their native languages, western religion, trade and commerce and new systems of governance. Now, take a look at the economies of these colonial masters and you will find that they are thriving and giving African countries loans read (World Bank) (IMF). Yet in truth, all the resources which Great Britain and France currently enjoy were taken from Africa on a silver platter, America too, imported slaves from Ghana to work in cotton plantations. We have become beggars when in fact we are the real owners of their riches (no history book will ever mention this).

Corruption, continues to stifle public service and kills the respect for the rule of law. Pensioners, those who are widows and widowers have to struggle to get their just reward because someone who has been employed to 'safeguard', their interests is now the same person milking dry the same cow, Mind you, these individuals are on government payrolls and forget that one day they too will retire- and will require their pensions too- but for now they choose to EAT. Corruption also stifles the public health sector. I am a victim of such, allow me to take you back to my experience in Durban when I was accompanying a colleague of mine who was being rushed to the emergency room after a serious car accident. On this ambulance, I was the one who was adjusting his bed so that it didn't sway too hard as we were moving like antelopes to our destination. A gentleman, whose JD (Job Description) entailed taking care of my colleague just stood there with me and later confirmed that he had paid to get the job, which job he knew nothing whatsoever about! My prayer at that moment was for the ambulance driver to get us as quickly as possible to that hospital. Fast forward, my colleague was eventually treated and discharged, however, that lesson will stay ingrained in my soul forever more.

High Unemployment/ Under Employment

When your learn that some countries in this world have unemployment rates of 8 percent compared to others that have nearly 80 percent, you start asking yourself very serious questions. As a policy maker or leader in government, who dropped the ball? What went wrong? How can the trend be reversed? I doubt that the majority of leaders from the less developed world have the courage to ask these difficult questions.... These leaders want to continue to remain relevant through leadership by failing to solve these perennial problems so that they can benefit directly and indirectly through the ballot. The challenge of unemployment is because governments have failed to empower the private sector to create jobs. The education system has also failed to align skills and key competences that suit the private sector. For example, in less developing countries, the bulk of road construction is done by foreigners (Chinese and Indians) instead of locals due to the skills and knowledge gap. Our universities are churning out engineers who can't even assemble an entire car engine or dismantle a Samsung phone. We need to have more technicians, artisans, plumbers, machine operators and individuals that will have the skills to enable the private sector to flourish. Once we have a marriage union between the private sector and government reading from the same script- then we will be moving in the right direction.

The role of the government is to oversee policy and laws that will protect individuals and businesses from being swindled. The role of the government is not to force the creation of jobs by increasing the wage bill, taking unnecessary loans only meant to cater for recurring expenditures in terms of salaries and basic utilities. No country, will ever develop that fails to fortify the private sector to do the job creation. High unemployment/ under employment exists because a country has failed to manufacture its own goods and services and have it consumed by its own citizens. Developed countries have propagated the lie- that less developing countries cannot assemble their own automobiles, phones for example. We have been brainwashed to buy international brands such as a Toyota instead of making our own versions and driving them on our borrowed roads. This consumer culture of other countries' goods and services worsens unemployment and under employment. We should adopt the mantra, 'we buy local and consume local'. Once the true meaning and import of manufacturing becomes ingrained into our thinking, unemployment by and by will be replaced by employment. We will be putting all people into true nation building. Taxes can be collected and pumped back into real development- without looking to BIG BROTHER for more enticing loans.

Failing Businesses and Profit Losses

Another sign that a country is failing its citizens is when private companies and individual businesses continue to declare profit losses as part of their books. This means, that the environment for business has not been conducive- a big blow to the government. A big blow because international investors may pull out, retrench employers and fail to remit taxes to the economy. When this ideal is replicated across the country- because of the high cost of doing business- then it is a sign that the economy is about to collapse. Sadly, sometimes the cause of failing businesses can be attributed to the 'powers that be', who use their influence in the government to kill competition so that their own 'private enterprises' can be made to flourish. The high cost of doing business can attributed to high kickbacks requested by those who are in positions of influence to award such a tender. This kickback is a form of corruption. This can be an endemic cycle that can lead to the stifling of businesses and eventually of the economy.

Poor Leadership

Governance and leadership is not for the faint hearted or those who lack vision. For, indeed the good book teaches, 'that those without vision perish'. Why is it critical that citizens elect individuals who can rise up and lead from the front? Why must these leaders be of sober mind and above reproach? Why must these leaders be agents of change and even cause disruption for their people like technology continues to do? We need such able leadership so that less developing countries can have direction and a road map of where they are going. Sadly, though, we have elected individuals who have failed to see the end from the beginning. Their focus is only on what they can seize, confiscate, hide or accrue for themselves, kinsmen and community for the short haul. These individuals, have not thought or considered what skills and competencies a child in 2050 will need to be equipped with to serve their country, what technology will be then to feed a large population, what form of AI (Artificial intelligence) to embrace to prepare for an economy strictly run by the machines (read The Terminator), which measures of technology to employ in the modern green economy to ensure sustainable water levels, forests levels and a healthy habitation for its citizens. If you find individuals of this school of thought- then elect them to preside over the next disruptive technological dispensation ever! Or you can choose to continue with the current crop of leaders who will only take you as far as Timbuktu.

Parting Shot

When you consider your country, where do you place it? Is it a failing nation or is it moving from less developed, to emerging and maybe finally to a developed country? The future is in our hands for the taking, leadership is sometimes taken, oftentimes given; to improve the lives of its citizens.