BY REV. GIBRILLA KARGBO
JUNE 7, 2020: Others before us have worked very hard and even in this generation, so much effort has been put into the quest for national unity and cohesion, but the sad reality is that there is little or nothing to show for such effort in the last fifty-nine (59) years as we continue to grope in the wilderness of disunity and lack of national cohesion. As we pursue the path of genuine national unity and cohesion, we must work on the identified challenges with sincere and concerted effort using a goal-oriented approach. The identified challenges are re-stated for the attention of all in the following order:
- Ethnics, Tribalism, and Regionalism;
- Resource Allocation and the Lack of Equity in the Distribution of such Resources;
- The Existing Electoral System that makes the Winner take all;
- The Weak Literacy Level and Limited Level of Political Education in the Country;
- The Negative Influence of Campus Cults, the Old Boys’ Network and the like in the Context of State Capture;
- The Influence of Certain Interests in the Context of Party Politics;
- The Economy and the Employment Situation in the Country;
- The Stratification of the Society with the Emergence of a Seeming Class System;
- The Politicization of State Institutions especially the Security Sector;
- A Legal System that does not serve the ends of Justice.
In the last six editions, the identified challenges have been addressed in chronological order with a focus on their nature and manifestations followed by common-sense solutions to address the issues raised with room for a national conversation that is multi-dimension or at least two-sided.
The primary aim of this edition is to examine the seventh (7th) identified challenge relating to the important subject of “the Economy and the Employment Situation in the Country”. The economic situation in the country will be evaluated to ascertain its key elements within the context of the political economy and the existing mismatch between the needs of the people and the inherent tension on account of not meeting such needs and the deepening disaffection that is created thereby. Essentially, this write-up will focus attention on the drivers of economic growth in the country as we ascertain the type of economy and identify the factors that have challenged the economy with clarification on political promises and what the economy can provide with the resultant frustrations among the citizenry on account of unfulfilled promises of the last fifty-nine (59) years in the context of the partisan divide that obtains in the country. As usual, common-sense solutions will be suggested as the nation’s economy is positioned to meet the needs of the people to bridge the gap in national unity and cohesion.
The basic assumption is that when there is not enough to go round, sharing what is available is usually a thorny issue as the sharing or distribution process is within the context of partisan politics that has always been characterized by ethnicism, regionalism and tribalism as our democracy obtains within the context of a multi-ethnic society. Sharing the “national cake” has never been easy and with politics described as concentrated economics and with an economy that has not been as buoyant as expected, there has always been tension between and among the key players and the people with resultant mounting tension that does not seem to be abating with suspicion and animosity on the increase as they pan out in the choice of political leaders that are put in charge of growing the economy and eventually distributing the resources that accrue, thus the strong connection between the economy and politics – also known as the political economy – with a direct negative impact on national unity and cohesion. In a situation of scarcity like Sierra Leone, people are going to fight to ensure there “own” is in charge of distributing the limited resources, thus making the economy a very serious factor in the tension that obtains in the country.
It should be noted that despite the huge potential in growing the economy, the Sierra Leonean economy can be categorized as a third world economy or least developed economy that is based on consumerism instead of tangible production of goods and services. We must not hesitate to state the challenging poverty situation in the country as exemplified in the Gross Domestic Product (GDP) of the country with very low monetary value for all the finished goods and services at a particular time in the country. Truth be told, we have not been producing much, and as such our GDP is nothing to write home about. According to the 2019 World Bank Report, the GDP of Sierra Leone stands at 4.10 billion US dollars and this represents less than 0.01 percent of the world economy. What this indicates is that we are extremely poor as a nation and as such our Human Development Index (HDI) rating is very low even as they reflect on our inflation rate, the spending rate, the housing situation, the confidence level, and the employment situation in the country. What has happened over the years is that we have over-relied on grants and loans from the West especially from the Breton Woods institutions to include the International Bank for Reconstruction and Development (IBRD), also known as World Bank and the International Monetary Fund (IMF), among others, a situation that has almost emasculated us as a nation with increased debt burden without any corresponding increase in the much-needed infrastructure in various sectors to fuel economic growth from a sustainable perspective. It has been noted that foreign aids have done us no good as a nation, thus making us a nation that is dependent on others to help us handle our national deficit with the situation not improving but deteriorating at an alarming rate with the politicization of our national processes compounding the problems even further.
Just a quick look at the economic indicators in the country should give you a picture of the very bad shape of the nation’s economy, a situation that should warrant well-meaning Sierra Leoneans to sit up and device ways and means to move the nation forward instead of indulging in unprofitable and cheap propaganda especially on partisan lines even as due consideration is given to the need to reduce the poverty situation in the country and help the people to benefit from the dividends of democracy. Apart from a handful of Sierra Leoneans who seem to live in affluence, the vast majority of our people live in abject poverty, especially in rural communities. The extensive nature of poverty in the country is a breeding ground for mounting tension with the partisan dimension to viewing the economy providing the atmosphere for a constant undermining of efforts at genuine national unity and cohesion.
In the meantime, we continue to experience double-digit inflation with far-reaching implications for the depreciation in the value of the Leones against foreign currencies especially the US dollars. This situation also tends to affect the purchasing power of the Government and the people with a direct impact on the foreign reserves and what we can import as a nation. In the Second Republic, Sierra Leone has had a very strong focus paid on our foreign reserves simply because it is almost nothing to write home about and every political party and leader that has come to power have made a very big deal of the situation with room for the blame game as if nobody is ready to take responsibility in fixing the economy that is in very bad shape. The problem is compounded further by the areas of focus in terms of the priorities of past and present governments with the assumption that they know the felt needs of the people, but they end up focusing on the perceived needs of the people with the poverty situation increasing at an unprecedented rate. Despite our low spending power because of the low GDP, our situation is made worse because we usually spend on the wrong things instead of paying attention to the things that matter most especially to the people. We still struggle with the basic needs and amenities that make for a modern society with almost nothing done to improve on the lot of the people. There is a direct correlation between the inflationary rate and the nation’s ability to spend with our situation reflecting the near lack of the ability to get the basic needs of the people, a situation that is fast becoming a permanent fixture in the reality of the average Sierra Leonean. With the partisan focus given to the administration of the resources of the state, there is an evident division in the reaction to the situation based on the party that is at the helm of affairs with the other side blaming the economic woes on the others and vice versa, thus becoming a see-saw affair especially between the leading parties with little or no time given to a collective approach in dealing with the economic challenges of the country.
Our housing situation in Sierra Leone over the years is nothing to write home about and as an indicator of economic growth, we have a lot of work to do to close the gap and change the narrative in a very significant manner. In the 80s, we saw moves in the direction of affordable or low-cost housing but was not done sustainably as the majority of Sierra Leoneans continue to suffer under very miserable housing conditions especially in rural communities. All the low-cost housing estates are now owned by individual occupants with the project not continued as anticipated. As a nation, we have not been fortunate to have significant developers and investment in the housing sector and as such, there is a serious disparity in the sector with very poor Sierra Leoneans bearing the brunt of the situation. Especially in urban settings in the country, the few houses built by private individuals cannot be described as affordable as most of the prices are quoted in US dollars without due consideration given to the poverty situation in Sierra Leone. Regarding the housing situation in the country, the people are suffering as we see shanty houses alongside mansions with a clear disparity between the rich and the poor with an economic situation that does not favour the poor. Without exaggeration, the gap in the housing situation needs massive investment intending to get it to an appreciable level as the mounting tension and frustration of the people is reduced to the barest minimum as the parity gap or ratio is given serious attention. Apart from the major cities and towns, every region is suffering from this deficit in the housing situation, but with the politicization of every situation in the country, we make it look like it is better on the other side. When we consider the housing situation in our slum communities and all the chiefdoms in the country, we can conclude that we are faced with a major crisis that should not be treated with kids’ gloves as we work on a comprehensive solution to a challenge that has the potential to keep the nation apart especially between the “haves” and the “haves-not” with far-reaching implications especially for living conditions and life expectancy. The deficit in the housing situation has always reflected badly on the image and reputation of the country with our rating on the HDI painting a negative picture of a serious deficit that needs urgent and serious attention. Our policy directives have not helped the deficit in the housing situation in the country with little or no regard for proper planning as our cities, towns, and villages show very little regard for anything systematic and sustainable. Without doubt, the housing situation in the country tells the story about the abject poverty of the general citizenry and the terrible condition of the nation’s economy that cannot be fixed overnight even as we have allowed fifty-nine (59) years to go by without doing much to bank on the plethora of resources that we have as a nation. One would have thought the work of NASSIT would have served as a game-changer in the housing situation, but it has compounded the problem further with their housing estates becoming a far cry from affordable housing that is required by the ordinary man. We have witnessed instances of government workers and their families becoming homeless after retirement as they are dispossessed of government quarters and not having enough to rent decent houses after retirement not to talk about building their own houses with due consideration given to the kind of salaries paid and the pension they receive at retirement.
It is also a matter of must that we consider the confidence level of the private sector and foreign or international institutions to invest in the economy in very significant ways apart from the evident exploitation of the nation’s natural and human resources with very little to show for it. Attracting a significant public-private partnership and direct foreign investment in growing the nation’s economy has been a very grey area with circumstances of varying kinds working adversely against such endeavors. It has been a sea of frustration for successive governments to see the space shrinking with missed opportunities as internal and external factors have conspired against meaningful investment in growing the economy with a telling effect on the people who keep waiting almost in vain to see the situation improve but to no avail. In most instances, bad governance has stood in the way of attracting massive direct foreign investment and public-private partnerships in growing the nation’s economy with the confidence level waning at a faster rate. Our legal environment has not helped the situation either with the existing laws and our governance practices compounding the problem further as they do not engender confidence for meaningful and sustainable investment at the level that can grow the economy with increased rapidity to impact the lives of the people. Over the years, we have seen situations wherein the fundamental human rights and freedoms of individuals have not been respected to the extent that many businesses have folded up and several others are refusing to come into such situations wherein these rights and freedoms are not guaranteed with rights-based institutions providing bad publicity for the country. There are times when the confidence level in the country has plummeted on account of the toxic nature of partisan politics with the Government and the Opposition fighting what seems to be a battle for supremacy with such toxic atmosphere preventing meaningful investors from showing up, thus creating the atmosphere for unfulfilled promises with far-reaching implications for genuine national unity and cohesion. We have also seen fluctuating confidence levels from bilateral partners, thus leaving gaps in the implementation of the yearly budgets with succeeding years showing uncontrollable budget deficits with budget allocations shrinking for MDAs and leading to incomplete projects across the length and breadth of the country.
The situation is even worse when it comes to the employment situation in the country as a key indicator of economic growth. There have been complaints about people losing their jobs apart from political appointments each time a new government comes to power with serious implications for genuine national unity and cohesion. The situation is very delicate with due consideration given to the fact that it is explained with partisan, regional, and ethnic twists. The picture is not positive especially with youth employment as the figures indicate a 60 percent youth unemployment rate, a situation that provides room for significant frustration among the youthful population with a huge potential for mounting tension across the country. Apart from the unemployment situation, we are also plagued with underemployment, low salaries and wages, and lack of harmony in the wage structure resulting in so much disaffection among civil and public servants. Even in the private sector, the employment situation does not present a pleasant picture with issues of maltreatment and related unfair treatment with serious cause for concern. Successive governments have spoken in positive terms about what they have done in growing the economy and creating employment opportunities for various categories of Sierra Leoneans especially the youths, but this has not prevented the hue and cry about living conditions that are mostly considered as deplorable, thus giving rise to political slogans about the “bread and butter issues”, the “gron dry” and related slogans. These expressions speak volumes about what obtains in reality with the need to address the employment situation in the country in addition to the issue of living standards that the ordinary man complains about regularly.
Having expressed in brief the state of the economy given these basic indicators, it is necessary to consider the factors that have militated against the growth and development of the Sierra Leonean economy amidst the plethora of resources that we can boast of as a nation. We can consider both internal and external factors as we examine the state of our economy to look for lasting solutions to the issues that should be addressed as a matter of urgency as attention is focused on the issue of genuine national unity and cohesion as the nation’s economy provides a firm foundation for their consolidation. Due consideration will be given to our resource types, our methods of administration, and how they fare in the world market. Also, due consideration will be given to the impact of natural disasters, epidemics, and pandemics in the output of our economy. Furthermore, consideration will be given to governance issues and their impact on the economy especially as it relates to transparency and accountability. This is in addition to other miscellaneous issues as they impact on the nation’s economy.
It has been mooted that agriculture is the mainstay of the economy and in all sincerity, you cannot expect much from subsistence agriculture as opposed to cash crop agriculture with the seeming lack of diversification in our agricultural productivity. Apart from research-based agriculture that is done by the Sierra Leone Agricultural Research Institute (SLARI), agriculture has not been done on a massive scale by Sierra Leoneans to boost economic growth and impact on living standards and livelihoods. We always refer to the vast array of arable land that is not utilized adequately to produce the right kind of impact on the nation’s economy. Successive governments have indicated the desire to do mechanized farming on a very large scale, but the result is yet to reflect significantly on the nation’s GDP. It leaves a depressing feeling on well-meaning Sierra Leoneans with the realization that rice was part of our exported commodities, a situation that has so deteriorated to the extent that we are now a mass importer of rice with far-reaching implications for our foreign reserves, thus putting a serious strain on the value of the Leones as against the US Dollars. For a very long time now, our potential in the agricultural sector is merely a pipe dream resulting in able-bodied men and women abandoning the farmlands and relocating to urban communities where they are adding little or nothing to the nation’s GDP, but instead putting serious strains on the available facilities and amenities in these urban settings.
The story in the mining sector is not different and for all our years of mining different natural resources including diamond, gold, bauxite, iron ore and the like, we don’t have much to show with the prices in the world market impacting negatively on our GDP in addition to bad mining agreements that have left our nation the worse for all its huge economic potential in the sector. The mineral wealth of the nation has not been handled very well with the sector generating a lot of tension and even violence by way of indicating the level of frustration especially among young people in the country. We have seen miners go on strike for poor conditions of service with locals protesting for the lack of corporate social responsibilities and at times for surface rents that do not make sense as the exploitation of our natural resources continues unabated. Even with the continued exploitation of our mineral wealth, we are yet to see the dividends in tangible national development and even with the one-time reputation of having one of the fastest-growing economies on account of the boom in the export of iron ore, the boom was not sustained with the drop in the price of iron ore and the Ebola epidemic, thus making our economy susceptible to shocks of different kinds. As a nation, we have had the reputation of degenerating into a very debilitating civil war that was fuelled by our rich deposit of mineral resources with the use of the infamous “blood diamond” that saw Sierra Leoneans killing each other for almost eleven (11) years, thus resulting in the resource curse. We have also witnessed the closure of mining companies and legal tussles between the government and some of these mining companies with many workers losing their jobs and livelihoods with several families and communities feeling the impact of such fallouts. Despite the several years of mining our mineral resources, it appears as if we still have not gotten it right as the royalties we get from mining are nothing to write home about with expected income tax in the last two budgets far outweighing such royalties in so far as the GDP of the country is concerned.
The situation has also been very disappointing with our marine wealth with artisanal fishing contributing very little or nothing to the nation’s GDP as we see our marine wealth being carted away by foreign vessels or trawlers resulting in growing disaffection among local fishermen and the general citizenry with low fish stock and limited catch, especially for internal consumption. Our dugout canoes have not succeeded in bringing in the much needed economic boom in the sector and it is a tale of woe and squalor for these artisanal fishermen who are not protected in practical reality by the law as owners of foreign vessels or trawlers are having a field day in poaching our coastal waters with almost nothing to restrict them and change the situation for the best. We don’t seem to have the capacity to process our marine resources and as such, they are fetching us very little in terms of contributing significantly to the nation’s GDP. We continue to lag in terms of how much we can fetch from our marine resources with the collusion of fisheries monitors that work with foreign vessels or trawlers. Even with government investment in the sector, the collusion of some Sierra Leoneans in turning a blind eye to what obtains on our coastal waters with these foreign vessels or trawlers in beating the system is a serious cause for concern. It is certainly an unfortunate situation with telling effect in the negative on the nation’s economy, thus presenting the proverbial situation of “living along the river Nile and washing your face with spittle”.
Our inadequacies in the agricultural, mining and marine sectors are compounded further by uncertainties in the world market, natural disasters, epidemic and pandemic, dependence on loans and grants (aid) in addition to bad governance with corruption as a key element in this jigsaw puzzle. It should be noted that corruption accounts for a huge chunk of the challenge in the economy of the nation as successive governments continue to grapple with this enigmatic monster. It is a very complex situation with no seeming solution in sight with the situation made worse by the fact that the nation’s economy is not in the hands of the indigenes, but mostly in the hands of foreigners with living standards showing such disparity. It is in the business sector that this picture is grim and very glaring as big businesses are mostly owned by foreigners with indigenes serving as petty traders, resulting in very little being contributed by the indigenous population to the GDP of the country with capital flight becoming the order of the day as most of the profit made by these foreigners are sent back to their countries of origin to improve on their lot with a mere pittance being retained. The frustrating aspect is that these foreign businesses employ Sierra Leoneans in mostly low paying jobs and these employees are treated with evident disdain with complaints that usually go unheeded and unresolved with resulting disaffection and mounting tension. There are times when the situation is blamed on weak policies and laws that do little or nothing to protect Sierra Leoneans from the harsh realities of cutthroat capitalism and unfair competition. We have witnessed the unsavory situation of trade laws not being enforced with foreign businesses also engaging in retail instead of just wholesale activities with many Sierra Leoneans bearing the brunt of these illegal and unfair trade practices that have gone on for several years without being checked in a more concerted manner.
In all of what is happening, a very heavy tax burden is also placed on the people with a seeming narrow tax base that requires serious review to make for diversification in the economy of the country. Until such diversification is attained from a multi-sectoral approach inclusive of tourism and the existing income-generating activities, the strain on the economy will no doubt be evident with the needs of the people not being met with those in charge coming under constant scrutiny and outright condemnation for these unfulfilled promises. It is obvious that for as long as the basic needs of the vast majority of the people are not met, the tension will not cease and as such opening up the nation to more economic activities is the way to go with the need for a more concerted effort on the part of all concerned to grow the economy in more realistic ways using especially workable models on the backdrop of inclusion with laws that are pro-poor and make for a plurality of views. We must endeavor to move away from the production of raw materials to the production of finished products on an industrialized scale with room for sub-regional cooperation and utilizing the markets that are made available by the sub-region and beyond. We must work on our competitive advantage and utilize the opportunities made available by such sub-regional markets and groupings. With our eyes fixed on the goal, the possibilities are endless and what seems to be a daunting challenge can be surmounted in no time. Other nations refused to mortgaged their economic potential on the altar of convenience, but made the necessary sacrifice to grow their economies instead of depending on the pittance that accrues on account of loans and grants (aid) from bilateral partners. To end the seeming vicious cycle of the partisan blame game on the state of the economy, this generation should be prepared to work as a formidable team to reach the goal of a middle-income economy. Sierra Leone is not the only country with political parties, but the difference is that these other nations have put aside their differences and worked on their commonalities and the common good to beat poverty and lack of development as they make themselves relevant among the community of nations with the dividends of economic growth being felt by the people. We are in a catch-22 situation in that until the economy is grown and/or developed to provide opportunities for all, genuine national unity and cohesion will be a far cry and without genuine national unity and cohesion, our economic growth and/or development will continue as a pipe dream or a fleeting illusion. Learning from the examples of other nations, they focused attention on their common interests, they built the requisite institutions and worked on the corresponding ideals using a nationalist approach with a responsibility placed on every citizen to understand these interests, institutions, and ideals regardless of which political ideology they espoused through robust citizenship or civic education that spans the entire national curriculum. It is a national imperative to grow the economy to make room for all with meaningful opportunities as we change the narrative on genuine national unity and cohesion
