Deregulation: Artificial Prizes in Period of Scarcity May Hurt the Economy-Idika Kalu
By Ibrahim Garba
Former Minister of Finance and Coordinating Minister of the Economy Kalu Idika Kalu has cautioned that improper prizing model may hurt the economy in period of instability.
He made this remark during a ceremony while briefing newsmen on the sidelines of a book launch ‘Writing for Television ‘ at the premises of the Nigerian Union of Journalists in Abuja over the weekend.
He emphasised the need for collaborative efforts between government and private sector critical stakeholders to reach a consensus by adopting a prizing model that is favourable to farmers, manufacturers, oil and gas key players in the country, to help cushion the negative impact on the economy.
” I worked on Korea, Taiwan and the Asian Tigers. We adopted a market-oriented economy report titled ‘Deregulation’. It means let those operators like newsmen, farmers, manufacturers leverage on the right prize. When you have the right relative prize model that is deregulation”.
Deregulation and privatisation will help reduce state control, encourage private sector growth. That period saw the emergence of big companies like Samsung, Hyundai, LG and so on.
So ” If you put artificial prizes in period of scarcity you can not get it right. It affects productuon, energy supply, education, investment, distribution of income, commodities and so on”.
The former minister also speaks further saying “deregulation is your ability to end importation as a means towards efficient prizing model , how you do it makes the difference”.
” When you are in difficulty trim your cloth according to your size; the size of your cabinet and resources allocations”.
Idika Kalu also emphasised the need for improved security stating that ” security should be top notch to boost farming. Manufacturers can not move, miners can not move, businesses can not thrive. Government must invest heavily to protect these critical businesses”.
” In the 90s we got elevated to number one ranking economy in Africa because the economy was healthy, but now we are 4th becauae of increasing population and economic challenges. By 2050 Nigerian population is estimated to be ranked number three globally. So what are we doing about it.
“Going forward the positives are getting the right policies in place not time”.
The Ohafia born Politician from Abia State who recently turned 85 in October, also advised the federal government to set its priorities right especially the market; ” your prizes must be right, your exchange rate, your interest rate to ordinary prizes of basic needs of common people. You have to move steadily towards the market. If you allow divergence for so long then expects shocks in the system”.
While highlighting on the importance of the publication, he praised the organisers saying that it is about time government ” shine the light on every single sector; those who are coming in, those who were there before. Even though NTA is a public entity they have to be professional for people to rely on their analysis.
For the size of this country there is never too much to be published”.
