Role of Governments and Traditional Institutions in Industrializing

Role of Government(s) and Traditional Institutions in Industrializing Ijesaland Abiola Falayajo Jr. At a Virtual Colloquium on the Industrialization of Ijesaland, 27 September, 2020.

INTRODUCTION § Ijesaland is renowned for its abundance of natural resources, capability and talent. Our land is saturated with ingredients that can make it globally successful in the raw materials cultivation and resources, agribusiness, education, tourism and hub for manufacturing industries. To achieve this, the need for massive industrialization drive cannot be over emphasized. § When we talk about Industrialization, we mean the process by which an economy of a region, in our case, a state is transformed from primarily agricultural to one based on the manufacturing of goods. And individual manual labour is often replaced by mechanized mass production, and craftsmen are replaced by assembly lines. A modern example of industrialization took place in China.

§ The country’s manufacturing output jumped from $83 B in 1970 to nearly $16. 5 T in 2010. This increase in production occurred due to a revolution in the Chinese economy. § Between 1978 and 1988, the Chinese government encouraged village enterprises, and the number of collectively owned rural businesses increased from 1. 5 M to 18. 9 M. Chinese companies imported foreign machinery to begin mechanizing production, and by 1998, the nation became the world’s largest exporter of toys, textiles, and furniture. Since then, China has heavily industrialized, building millions of miles of roads and highspeed trains to transport goods and raw materials. While up to 800 M Chinese citizens worked in agriculture in the 1970 s and 1980 s, only 350 M did in 2006.

§ Also, Korea’s economic growth performance in the past 30 years has been cited as an exemplary model of rapid economic development and has been termed an “economic miracle. ” Some even constructed a model for the occurrence of economic miracles based on the Korean growth example. Korea started its process of economic development in the early 1960 s with a small industrial base and little accumulated capital and technology. The post-war division of the country severed whatever industrial link existed between the north and south, and the Korean War (1950 -53) almost completely destroyed the production facilities and infrastructure of the economy. In the 1950 s, many foreign observers regarded the Korean economy as hopeless.

§ Until the early 1960 s, the economy depended on foreign economic aid, and its per capita income was less than $100, which lagged behind that of many African countries (including Nigeria, Ghana and Kenya), not to mention most Latin American countries. Korea, perhaps with Taiwan, is one of the few countries that grew from poverty to industrial strength comparable to advanced OECD countries. Identifying the factors behind Korea’s fast growth was narrowed down to the Korean government assistance which affect positively, the speed of human capital accumulation.

§ The role of governmental assistance has been given little attention in the Push for industrial based economy in many African societies. Whereas, in practice, the most successful economies, such as those of the East Asian countries, were not only big exporters but were those whose governments extensively supported exports and industrialization. § I have provided the above background information to refresh our memories about the concept of industrialization and importance to development, and what can be achieved if supported by the government and other major stake holders.

Why Industrialization? § Industrialization is important because it formed the basis of many modern economies. All developed countries have experienced industrialization and now have industrial economies rather than agrarian ones. Even countries that rely heavily on the farming industry, like Australia and New Zealand, have industrialized agriculture to increase output. § It has also been argued that industrialization helps reduce poverty and improve living standards, making it an important part of economic development. § Understanding industrialization can also help countries manage its side effects, such as environmental pollution and carbon emissions. § Coming back to Nigeria, Osun state and Ijesaland in particular.

How can the government support industrialization drive in Ijesaland? 1. 2. 3. 4. 5. 6. 7. Policies. Infrastructure. Establishment of Technical Institutions. Waivers and favourable Tax regimes e. g tax holiday. Collaboration e. g PPE. Security. Grant availability

How can the Traditional institutions support industrialization drive in Ijesaland? 1. Education. 2. Promotion of peaceful communities. 3. Encourage community development. 4. Making land available at reasonable price. 5. Encourage investment and strong work ethics

Conclusion § To support industrialization in Ijesaland the state at large, the state government must greatly improve their policies. § Business friendly policies must be developed and implemented. § Institutionalize business and investment summits and strengthened collaboration between public and private enterprises. § Security of life and property must be made paramount. § Stability in our political process must be enshrined.

Abiola Falayajo Jr. resides in Melbourne, Australia.

References üKim, K. S. , and S. R. Park. 1988. Productivity change and factor analysis in South Korean manufacturing (in Korean). Seoul: Korea Institute of Economics and Technology. üPyo, H. K. , B. H. Gong, H. Y. Kwon, and E. J. Kim. 1993. Sources of industrial growth and productivity estimates in Korea (1970 -1990) (in Korean). Seoul: Korea Economic Research Institute.