We cannot all be Capitalists

 

Imagine Nigeria's business landscape as a vibrant marketplace. Bustling stalls overflow with ideas, but everyone's selling the same "hustle" brand. This brand is headquartered in the city of Lagos, Nigeria, where no body is welcomed but rather reminded that "This is Lagos!" and "Eko o ni baje!", a colloquial phrase that loosely translates to Lagos will prevail. Therefore, those that are caught in the hustle and bustle either by default or design, seemingly have no choice but to embrace its energy. Everybody must hustle! This has undoubtedly played a part in birthing some of the wealthiest individuals in Africa and has largely contributed to Lagos alone being amongst the top 10 largest economies in Africa but amidst such opulence lies an underbelly of abject poverty. Kano, an ancient city in the Northern part of Nigeria, is also known for its hustle culture but rather than the cutthroat Lagos version, the hustle tends to be tempered by a combination of an ancient feudal system, intertwined with strong Shariah (Islamic) principles. Whilst it could be argued that this may limit the city's potential for economic growth, it has potentially put a lid on a boiling pot of a city known for social unrest especially during economic downturns.

Therefore, the statement "We cannot all be capitalists" might sound counterintuitive in a world seemingly driven by market forces. But for a nation like Nigeria, with its complex social fabric and diverse needs, a singular focus on capitalism risks overlooking valuable alternatives that could unlock its true economic potential. Diversity is not just about culture and traditions; it extends to our economic perspectives too. Imagine a world where everyone is a capitalist, chasing profits and bottom lines without considering the broader impact. That's not a recipe for success; it's a ticket to economic imbalance and inequality. While free markets undeniably fuel innovation and growth, embracing a broader spectrum of economic views can foster a more inclusive, sustainable, and ultimately stronger business environment. So, let's shake things up a bit and explore how different economic views can contribute to a more robust and inclusive business environment in Nigeria.

The Capitalist Pillar

Capitalism, undoubtedly, has been a driving force behind economic growth and entrepreneurship globally. In Nigeria, it has manifested in the form of ambitious startups, job creation, and an ethos of competition that propels industries forward. The pursuit of profit has led to innovation, efficiency, and a dynamic market. However, an economy dominated solely by capitalism can be a double-edged sword. It has presented the following challenges: 

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  Widening Inequality: Unfettered capitalism, while generating wealth, often concentrates it in the hands of a few, exacerbating inequality, a significant concern in Nigeria. The Gini coefficient, a measure of income disparity, shows Nigeria ranking poorly, highlighting the need for alternative approaches that prioritize equitable distribution.
  

• Neglecting Social Needs: The relentless pursuit of profit can overlook crucial social needs like healthcare, education, security and infrastructure. While private enterprises play a role, solely relying on them often leaves these areas underfunded, hindering human development and societal progress.

• Environmental Degradation: The single-minded focus on maximizing profit can lead to unsustainable practices, harming the environment. Nigeria faces deforestation, pollution, and climate change, demanding economic models that prioritize environmental well-being alongside economic growth.

The Socially Conscious Paradigm

This is where the value of exploring different economic views lies. By acknowledging the limitations of a single model, Nigeria can unlock a wider range of solutions that cater to its unique needs and aspirations. Here are some key alternative perspectives to consider:

• Social Democracy: This model emphasizes a strong role for government in providing social safety nets, ensuring equitable access to education and healthcare, and promoting fair labour practices. This can help address income inequality and create a more inclusive business environment where everyone has a chance to participate and contribute.

• Cooperative Movement: Promoting cooperatives, where workers or communities own and manage businesses, can foster economic empowerment and shared prosperity. This model aligns with Nigeria's existing communal values and can be particularly effective in rural areas where access to traditional capital might be limited.

• Green Economy: Transitioning towards a green economy that prioritizes sustainability and environmental protection can create new business opportunities while mitigating climate change risks. This involves investing in renewable energy, promoting eco-friendly practices, and ensuring responsible resource management.
  

• Inclusive Capitalism: Recognizing the need for social responsibility within the capitalist framework. This involves ethical business practices, fair wages, and investing in communities where businesses operate. This can help mitigate the negative aspects of unbridled capitalism and create a more sustainable business environment.

Benefits of a Pluralistic Approach

Embracing a diversity of economic views promises numerous benefits for Nigeria's business environment:

• Resilience in the Face of Challenges: Economic diversity acts as a shield against unforeseen challenges. In a world where uncertainties abound, having a mix of economic perspectives ensures that the nation is not overly reliant on one approach. A diverse economic portfolio fosters resilience, mitigating risks and providing stability in times of economic turbulence.

• Inclusivity and Social Progress: Not everyone possesses the inclination or means to be a capitalist. By embracing diverse economic views, we create an inclusive environment where individuals with varied strengths and aspirations can contribute meaningfully. This inclusivity becomes a driving force for social progress, addressing disparities and empowering marginalized communities.

• Catalyst for Innovation: Diversity is the cradle of innovation. Different economic views bring forth varied ideas and perspectives, creating a fertile ground for creativity. A harmonious blend of capitalism, social consciousness, and a mixed economy can spark innovation, positioning Nigeria as a frontrunner in the global marketplace.

• Environmental Sustainability: Socially conscious businesses often prioritize sustainability, recognizing the interconnectedness of economic prosperity and environmental well-being. By incorporating these principles into the economic landscape, Nigeria can set a precedent for responsible growth that considers the long-term impact on the planet.

• Global Competitiveness: A diverse economic landscape enhances global competitiveness. By showcasing a well-balanced approach, Nigeria becomes an attractive destination for international investments. The ability to adapt and integrate different economic perspectives positions the nation as a dynamic player on the global stage.

The Path Forward: A Unified Approach

Acknowledging the importance of economic diversity is only the first step. The path forward requires a concerted effort from all stakeholders – government, businesses, and citizens alike.

• Governmental Policies and Regulations: The government plays a pivotal role in shaping the economic landscape. Crafting policies that encourage a balanced approach, fostering competition while safeguarding against exploitation, is paramount. Regulatory frameworks should incentivize socially conscious initiatives and provide a level playing field for businesses of all sizes. By this inference, the government cannot be fully capitalist.

• Education and Awareness: Generating awareness among the general population is crucial. Understanding the benefits of economic diversity empowers citizens to make informed choices as consumers and entrepreneurs. Educational programs that highlight the importance of different economic perspectives can be instrumental in shaping a more economically literate society.

• Collaboration and Knowledge Sharing: Businesses can lead the charge by embracing collaboration and knowledge sharing. Learning from the successes and challenges of different economic models allows for a more nuanced and informed approach. Networking and partnerships between capitalist, socially conscious, and mixed economy enterprises can lead to a more interconnected and resilient business ecosystem.

• Corporate Social Responsibility (CSR): Businesses, regardless of their economic philosophy, should integrate CSR into their core values. Contributing positively to the communities they operate in ensures a symbiotic relationship between business success and societal well-being. CSR initiatives can bridge the gap between profit-driven motives and social responsibility, creating a holistic business environment.

• Continuous Adaptation: Economic landscapes are dynamic, and adaptability is key. Embracing economic diversity requires a commitment to continuous adaptation. Businesses and policymakers must be willing to evolve, incorporating the best elements from different economic perspectives to address the ever-changing needs of society.

Nigeria's economic future is not predetermined. By acknowledging the limitations of a single model and embracing a wider spectrum of economic views, the nation can unlock its full potential and create a business environment that benefits all. This is not about abandoning capitalism entirely, but rather about recognizing its limitations and seeking complementary solutions that foster a more inclusive, sustainable, and equitable future for all Nigerians.

Thanks for taking time out to read this article. Please feel free to send me a message or comment on the article. I am always happy to discuss other perspectives and explore different philosophies.

Ibrahim Shelleng (MBA, ACIS, ACS) is a highly skilled and experienced business development consultant with a proven track record of helping organizations achieve their strategic goals and overcome complex challenges. With a deep understanding of business & economic dynamics and a passion for problem-solving, Ibrahim has consistently delivered measurable results and added value to clients. He is a graduate of Psychology & Socio-legal Studies and a Master of Business Administration (MBA). He is also an Associate Member of the Chartered Institute for Securities & Investment (CISI) UK and the Chartered Institute of Stockbrokers (CIS) Nigeria.

*Disclaimer*: Views shared in this article are mine and does not reflect any organisation that I am affiliated with.