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Opinion - Impact of governance on economic recovery in Namibia

2021-08-17  Staff Reporter

Opinion - Impact of governance on economic recovery in Namibia

Administration includes the framework by which an association is controlled and works, and the instruments by which it, and its individuals, are held to account. Morals, hazard administration, compliance and organisation are all components of administration. We must not permit ourselves to be sidetracked by settled-in favoured interface, populist or xenophobic talk, or powers of state capture and corruption. Each of these counter-narratives look to be development-divisive, limit motivation and will redirect us absent from sound economic policymaking.

To put the nation on a pathway that will support its national economic intrigue, Namibia will require a period of significant and astute authority. Our lawmakers as well as those who are involved in authority positions in government, the private sector, work unions and society will have to maintain a strategic distance from the diverting siren songs of privilege, populism, divisiveness and short-termism. Instead, they will get to coalesce around the kind of development, speculation and job-enhancing approach changes that are able of redressing Namibia’s economic course. According to the Bank of Namibia’s Economic Outlook 2021, the domestic economy is expected to grow by 1.4% in 2021, and to improve further in 2022. 

The governance and economic recovery will spur Namibia to a growth of 1.4% in 2021 and beyond. Corruption control measures are the foremost imperative determinants of economic development, and it can impact the economic growth more than any other development determinants. To create development more comprehensively and less unequal, race and sex separations must be killed, obstructions ought to be diminished, and approaches ought to be implemented to guarantee that there’s a more pleasant conveyance of wages, resources and openings. Both the state and markets need to function effectively to achieve inclusive growth. As such, the kind of corruption that has begun to take root in parts of Namibia’s state and private sector must be dealt with decisively before it becomes entrenched as a permanent impediment to inclusive growth.

Political instability should be avoided at all cost. The availability of land is of paramount importance to the community to avoid chaos in the country. Land grabbing incidents experienced in Windhoek should come to an end. The civil unrest can be avoided if those in leadership of all local authorities act in the best interest of the community, and avoid politicising issues.

The annihilation fashioned by the worldwide Covid-19 is widespread on the economy, which is now in retreat. Rising unemployment at the start of this momentous year has made the requirement for an authority committed to, and able of directing Namibia’s economic recuperation, indeed more pressing. The viable execution of vitality and telecommunications changes will help Namibian firms, family units, schools and shoppers to get secure power supplies and speedier web associations. 

Such mediations will not, as it were, cultivate expanded levels of economic action and work creation. But at a more crucial level, these changes will progress Namibia’s capacity to compete in a worldwide economy that’s progressively skills-intensive, green and advanced. Essentially pivotal to the accomplishment of inclusivity is that programmes of quickened change must be planned to provide all Namibians, specifically, possession of country and urban areas, which can be capitalised on and used for profitable economic movements.

Furthermore, good governance should be respected at all levels. But this vision has been hijacked and sidetracked by selfish and corrupt interests. Until corruption is decisively dealt with in both the state and private sector, it is hard to imagine how a new sense of national purpose and new confidence about economic recovery can properly take root. There are so many things that need to be done to make Namibia right. To name a few, we need jobs, education, health, housing, municipal services, effective policing, racial integration, an end to gender-based violence, and the progressive realisation of human rights. 

Achieving all of these things will be made easier if, through a set of focused reforms, we can get our economy growing.  If our economy continues to contract, they will not be achievable. The high political instability and high corruption levels may underpin the lower real per capita GDP (PPP) growth in the country. Therefore, it is necessary to keep both political stability and control of corruption indicators in a balance to achieve sustainable and long-term economic growth.

In conclusion, administration includes a coordinated impact on economic recovery. The control of corruption may be a basic determinant of economic growth. It is imperative to oversee both the control of corruption indicator, and the political solidness and the non-attendance of violence markers to increase economic growth. Corruption control is the basic determinant of economic growth, and a one-unit increment within corruption control causes a 6.9% increment in genuine per capita GDP at the level of significance, on the off-chance that all other variables are solid. The right balance of corruption control and political soundness will have a positive impact on human and physical capital amassing, progress the quality of education and other social foundations, and in this manner increase economic recovery. Therefore, Namibia needs to improve both political stability and control of corruption to increase economic growth.

God bless the Republic of Namibia.

2021-08-17  Staff Reporter

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