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Wednesday, 5 November 2014

THE EFFECT OFFLUCTUATION IN ECONOMIC SYSTEM OF THE NATION



…. Of all the banes confronting the economics of the developing nations, not  in the  least  in seriousness  in consistency  in policy. Apart  from the  quit  obvious  factor  of  frequent changes  of governments in these    countries, a phenomenon which invariably  tolls the death knell of existing polices  each time  a government  is  swept out  of  office ,  even stable government  themselves  seem to have  a knack of modifying  policies  frequently. A leader  of government is is often regarded as  radical, and  hence   popular,  when  he shakes  up hid  cabinet .such  shakes up  often  leads  to change  of policy
Quite often, such  avoidable  changes  reflect the  shift  in  leaders friendship  patterns  in the  third  world  countries, a  position at the top  attracts  a large number  of friends, a phenomenon  which engenders  keen  rivalry  for attention  among the friend,  back  biting  is hence  not uncommon   and a favorite  who is  today rewarded with an office  may easily  get the boot tomorrow
 Basically the poor economic situation ,  a common cost of social unrest, bring  about frequent  changes  in policy. An economic policy which does not produce  the expected result  within a short period of time is usually  thrown out,  often with the initiators  of the policy.  Sadly though the fault lies,  not so much  with the  policy  as with  factor both  within and outside, beyond  the operators. The truth  here is that failure  tends  to rush leaders into taking  rash  actions  which  result  in further  damages
 Finally, quite a number  of the sharp changes  are  dictated  or at  least  influence from outside. In a situation  where a weak  country  decides  to embrace  a stronger  one, it has  to contend  with some  dictations  from other strong partners. To  reach an agreement  with another country  necessarily means  modifying  operation  at home  in so far  as the  agreement  affects activities at home.  For instance to take a loan from a stronger country  is to tailor one’s economic operation  to reflect  the spirit  of the loan agreement
Frequent changes in policy harm development  far more than realized. Apart from the financial wastage  brought about the sudden abandonment of project  when new rulers assume office,  the  resulting  sense of  insecurity scares  off  foreign  inventors. Besides,  inconsistency in policy  hinders  the concentration of effort  on specific projects . moreover, the  frequent abandonment of project mid stream, especially those being executed under international agreements,  tends  to suggest  aids donor  and leader  that  the beneficiaries  are not serious . and  potential  donor  and leader  prefer  dealing  with  serious  minded and committed  leaders

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