Industrialisation is solution to mass unemployment

In this edition, we serve you the concluding part of the interview on “industrialisation is solution to mass unemployment.” Enjoy it.

How can African nations, Nigeria in particular, be industrialized like Europe, America and Asia?

Prof. Ogbimi

A very important result of our curiosity-driven research is that all the industrialized nations of today were agricultural/artisan, non-industrialized and poor nations for 2000-3000 years. This finding suggests that the development process is a serious matter. More importantly, the Euro-Asian experiences raise three fundamental questions.

First, why did it take Caucasians and Asians 2000-3000 years to achieve modern industrialization? Second, what does industrialization entail? Third, how long will it take Nigeria and other African nations to achieve modern industrialization? Western social sciences have no scientific answer to any of these questions.

A crucial question still crying for a scientific answer from all those claiming to be experts in managing an economy is: WHAT DOES A NATION DO TO ACHIEVE SUSTAINABLE ECONOMIC GROWTH AND INDUSTRIALIZATION (SEGI)? To this question we found out that many researchers had shown that mere capital investment is not the primary source of SEGI.

Further analysis, using algebraic techniques, showed that the intrinsic values of all capital assets (roads and bridges, railway lines, telecommunications networks, stadia, airport and seaports, machinery and equipment, real estate, furniture, etc.) depreciate with time and intensity of usage. The concept of depreciation is well known in economics and accountancy. Hence all capital assets are Depreciating Assets (DAs).

A nation which emphasizes capital investments only invests on a decreasing investment function like that person pumping water into a profusely-leaking overhead water tank. Who is that man who fails to educate his three sons and builds estates for them to inherit? Is the man a sage or a fool? In the same vein, a nation which emphasizes erection of structures to the neglect of developing the people is a foolish nation.

On the other hand, our research revealed that learning is the primary source of sustainable economic growth, industrialization and development (SEGID). The newly-born baby, whether Caucasian, Asian or African, cries to announce its arrival in the world, if it is quite healthy. The baby soon begins to babble (learns how to talk) and acquires the skills and capability to talk and speak a language. All other skills are acquired through learning.

Learning transforms an individual or nation from an undesirable status (UDS) into a desirable status (DES). Thus, it is learning that transforms a nation from the UDS characterized by agricultural/artisan economy, mass unemployment and poverty into the DES characterized by industrialization and wealth. Nigerians must learn how to make the things Nigeria imports. Industrialization is promoted through learning. The intrinsic value of the learning-man or learning-woman appreciates in a compound fashion with learning intensity and time.

Hence, the learning-man and learning-woman are Appreciating Assets (AAs). That means learning – education and training, is the primary source of SEGID. A nation which promotes education and training invests on an increasing investment function. Learning increases our knowledge, skills and capability to do things including production. Industrialization is a learning and capability-building process. Learning institutions increase the intrinsic values of the citizens of a nation and the intrinsic value of the nation.

Thus, when a person commences an educational or apprenticeship (training) scheme, he or she begins from the lowest or novice position. Usually, at the end of the first year of learning, the learning-person is promoted to the second level, having learnt the things scheduled for level one. At the end of the second year, the learning-person again, is moved to level three. The growth achieved this way is sustainable and promotes economic development.

The learning person builds-up capabilities or competences. That is, his or her capabilities for doing things increase as long as he or she continues to learn. This also means that the learning person and nation move up the competence scale or ladder with increase in learning time and intensity.

The intrinsic value of the learning-person can be expressed in a quantitative manner. In a nation where learning – education and training, is emphasized, there is continuous build-up of knowledge, skills and competences (KSCs). As the learning process continues, a point is reached where each type of KSCs begins to enjoy the supportive impact of all others and all of them together form an invisible KSCs-network, a sort of problem-attacking front.

The nation at that point achieves Industrial Revolution (IR) – a technological puberty. The nation is described as an industrialized nation. That means, the nation achieves a unique knowledge-skills-competences status similar to achieving biological puberty in human beings. Industrialization like achieving puberty confers special advantages on an economy.

The nation then enjoys the powers, or aftermath or fruits of industrialization. National productivity improves dramatically, the nation achieves economic diversification – the various sectors of the economy begin to perform efficiently and effectively.

Prof. Ogbimi