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The Trumpet Newspaper Issue 524 (July 29 - August 11 2020)

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Opinion<br />

JULY <strong>29</strong> - AUGUST <strong>11</strong> <strong>2020</strong><br />

<strong>The</strong><strong>Trumpet</strong><br />

After COVID-19, will Africa catch up,<br />

stand still or fall further behind?<br />

Page9<br />

At one time or another, nations and<br />

individuals confront crisis points<br />

– moments of existential<br />

challenge that also open up new<br />

possibilities. African countries, at just<br />

such a crisis point as a result of the novel<br />

coronavirus, face three possible outcomes<br />

post-pandemic: play catch-up, stand still<br />

or fall even further behind the<br />

industrialized world [1].<br />

With this crisis comes an economic<br />

disruption of unprecedented proportion.<br />

To avoid falling further behind, Africans<br />

must narrow the scientific and technology<br />

gap and leverage our comparative<br />

advantages. It is time for Africa to adopt<br />

radical technological and policy<br />

innovations. <strong>The</strong> global economy is<br />

increasingly driven by science-based and<br />

patent-intensive systems. Through<br />

investments in molecular technology, AI<br />

and other technologies the 4 th industrial<br />

Revolution is ushering in, they can<br />

overcome existing barriers to entry.<br />

Catching up<br />

India offers an example of how to<br />

catch up. <strong>The</strong>re, two key developments in<br />

the sixties and seventies sharply altered<br />

the country’s trajectory.<br />

In 1965, following past famines crises,<br />

India imported 250 tons of high-yielding<br />

Mexican dwarf wheat seed varieties for<br />

wide-scale testing on farms. Early positive<br />

results led to the importation of a further<br />

18,000 tons. Along with the use of<br />

irrigation and other innovations adopted<br />

by farmers, Indian agriculture was<br />

transformed.<br />

Within five years, India produced<br />

enough grains to support its population<br />

and, even following a drought in 1979,<br />

had no need to import grain. Overall, the<br />

country’s wheat and rice production<br />

tripled between 1961 and 1980. Radical<br />

policy response to famine-induced crisis<br />

birthed the Green Revolution.<br />

India’s pharmaceutical sector also<br />

experienced a crisis-inflection point in<br />

1972, when the government passed the<br />

Patents Act, which enabled domestic firms<br />

to replicate drugs that had been patented<br />

by multinational corporations. Local<br />

companies have since dominated the<br />

global market through reverseengineering<br />

leading to generic medicines<br />

that are far more affordable than patented<br />

ones. Radical policy response to crisisinduced<br />

shortage of medicines<br />

transformed Indian Pharma.<br />

Falling behind<br />

Africa processes a very small<br />

proportion of its agricultural produce. We<br />

continue to export raw commodities like<br />

cocoa, timber and cotton that others<br />

process and re-sell to Africa at a much<br />

higher valuation. Our continent also has<br />

sufficient sunlight, wind and hydropower,<br />

technologies that can power<br />

Africa sustainably, and other regions<br />

besides.<br />

Critically, Africa also has a median age<br />

of 19, far younger than that of any<br />

continent, a potential demographic<br />

dividend of young innovation-driven<br />

workers and a relatively small proportion<br />

of elderly workers. This human capital<br />

will foster Africa’s forging ahead.<br />

If we fail to harness new technologies<br />

and leverage our strengths to create<br />

abundant high paying manufacturing and<br />

service jobs to compete within global<br />

supply chains, then we risk falling even<br />

farther behind on socioeconomic terms.<br />

Forging ahead<br />

To forge ahead, Africa will first have<br />

to return swiftly to economic growth.<br />

Beyond that, diversifying our economies<br />

will be critical, particularly for those<br />

countries that are dependent on one or two<br />

mineral resources or commodities. Above<br />

all, African companies must deepen<br />

capacities for competitive advantage to<br />

master new technologies in emerging<br />

sectors.<br />

African innovators need a robust<br />

innovation framework and a better<br />

enabling environment to master the socalled<br />

industrial biology embedded in the<br />

4 th Industrial Revolution. For instance,<br />

firms in Morocco, Senegal, Nigeria and<br />

some other African countries have<br />

developed COVID-19 test kits but face a<br />

difficult path to commercialization.<br />

China’s response to the COVID-19<br />

pandemic is once more illustrative of a<br />

dynamic industrial policy. It is targeting<br />

ambitious increases in domestic firms’<br />

share of the global medical supplies<br />

market. <strong>The</strong> government has provided<br />

cheap land for factories subsidized loans,<br />

helps them to secure a supply chain of raw<br />

materials, and to stimulate domestic<br />

demand by incentivizing hospitals and<br />

companies to use their products.<br />

And there are powerful examples right<br />

here on the continent. South Africa<br />

successfully financed the production of<br />

<strong>The</strong> National Ventilator Project to address<br />

COVID-19, developing prototypes,<br />

securing component supply chains, and a<br />

manufacturing facility. <strong>The</strong> project owes<br />

its success in part to strong government<br />

support and broad coordination among<br />

economic and technological agencies. As<br />

with South Africa, the rest of the continent<br />

would benefit from strong innovation<br />

systems that are part of national budgeting<br />

and planning frameworks.<br />

African businesses have a critical role<br />

to play, but so do African leaders, who<br />

must strike a delicate balance between<br />

State intervention and open markets.<br />

African governments are best placed to<br />

identify market failures and opportunities,<br />

and devise policies and regulations that<br />

By Professor Banji<br />

Oyelaran-Oyeyinka<br />

benefit Africa’s private sector and its<br />

people.<br />

* Professor Banji Oyelaran-Oyeyinka,<br />

is the Senior Special Adviser on<br />

Industrialization to the President, AfDB,<br />

he is a Fellow of the Nigerian Academy of<br />

Engineering and Professorial Fellow,<br />

United Nations University.<br />

[1] <strong>The</strong> theory was mooted in a 1986<br />

paper by Moses Abramovitz who posited<br />

that countries with lagging productivity<br />

could grow rapidly and catch up with the<br />

leading economies by realizing their<br />

potential.<br />

NDDC and other stories<br />

Continued from Page 8<<br />

he delegates authority to them and they are<br />

required to help him achieve the objectives<br />

of his administration. Under President<br />

Buhari, the in-fighting among his team<br />

conveys the impression that many of his<br />

appointees are either not interested in his<br />

own objectives or they are on a frolic of<br />

their own. We have had the Director<br />

General of the Nigerians in Diaspora<br />

Commission at logger heads with the<br />

Minister of Communications over office<br />

space; Minister of Information vs. DG<br />

National Broadcasting Commission<br />

(NBC), Minister of Labour and<br />

Employment vs. MD NSITF, Joy Nunieh<br />

vs Godswill Akpabio; Minister of Health<br />

vs. Executive Secretary, NHIS, AGF<br />

Malami vs EFCC Chair Magu, DSS vs.<br />

EFCC, First Lady vs. Presidential<br />

aides…all fighting-to-finish as if “Oga is<br />

not around”. <strong>The</strong>y have done so much<br />

damage. Five years ago, the fear of<br />

Buhari’s war against corruption was the<br />

beginning of wisdom Today, his own<br />

appointees and political associates have<br />

messed up the message and strategy. <strong>The</strong><br />

economy is in bad shape. <strong>The</strong> war against<br />

terror is not working…<br />

Whatever is happening is a wake-up<br />

call and an opportunity for Mr. President<br />

to steady the ship. He needs to rescue his<br />

government from ambitious and disloyal<br />

individuals and strengthen the institutions<br />

of State. He should disband the present<br />

Interim Management Committee of the<br />

NDDC and sack the Minister of Niger<br />

Delta Affairs. <strong>The</strong> Board of the NDDC as<br />

provided for in the enabling Act should be<br />

immediately constituted. <strong>The</strong> audit of the<br />

Commission must be totally independent<br />

without any interference. <strong>The</strong> major<br />

challenge at the NDDC is that politics has<br />

been placed above development<br />

objectives. That must change with<br />

appropriate mechanisms put in place. On<br />

the war against corruption, the<br />

Independent Corrupt Practices and Other<br />

Offences Commission (ICPC) should also<br />

be audited. <strong>The</strong>reafter, it should be merged<br />

with the EFCC. <strong>The</strong> new EFCC should<br />

then be unbundled. It should have<br />

autonomous departments: an investigation<br />

department, a prosecution department and<br />

an enforcement department, all headed<br />

separately by professionals who will not<br />

be required to report to one individual. <strong>The</strong><br />

EFCC must also be disengaged from the<br />

Nigerian Police. Since inception, only<br />

policemen have led the EFCC. How about<br />

neutral persons or graduates of the EFCC<br />

Academy that has produced many officers<br />

who have enjoyed international training<br />

and who joined the EFCC with the hope<br />

that they were looking forward to a career?<br />

<strong>The</strong> President must restore dignity and<br />

respect to the governance process.

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