Thursday, August 16, 2012

JOHN MASHAKA ON HUMAN CAPITAL; TANZANIA’S MISSING ECONOMIC PUZZLE PIECE

mashaka
Over the past century, economists, social scientists and other scholars have realized the significance of human capital to global economic success. The buildup of talent, skill, know-how, intelligence, education, and experience embedded within individuals that helps them generate income is what Tanzania need to leap economically. 

Rare metals, stones, natural gas, petroleum and other resources largely regarded as natural wealth have been for the greater part a curse, sources of injustice, hopelessness, and extreme poverty to nations devoid of human capital.

Coming from the ruins of World War II, Germans reinvented their educational system to focus more on human capital development that was direly needed for the country’s rapid reconstruction. The government made education a priority and free for all Germans, educational system was made more practical than theoretical. It was also made compulsory from age five through nineteen, with each student having an option or opportunity to learn a skill or trade depending on their abilities, at an early age.

The effort paid off and made Germany an economic miracle. The country’s economy is the strongest in Europe and the lifeline for the economically impaired nations such as Greece, Spain etc. Germany is a global leader in engineering and manufacturing, producing the world best engineering products; it exported more than $1.44 Trillion worth of industrial products in 2011 alone.  A success story that can be attributed to prioritization of education, and massive investment into domestic talent development.

Countries with no way out –lacking natural resources- have in large part been extremely ingenious. Israel, a tiny desert like nation, sandwiched between lethal foes is a fountain of free enterprise can-do entrepreneurial spirit. With basically no natural resource, Israel turned into attracting Jewish experts and scientists –Diaspora-from all other the world. It became a country of innovators; it created world class universities and research facilities. Israel designed educational system that would produce thinkers -Nobel Laureates- and problem solvers, and indeed most scientific and technological breakthroughs have Israeli roots.

Singapore realized its uncertain and bleak future without natural resources. It outlawed corruption, and made it a taboo. The country launched massive industrial infrastructure projects, communications modernization, and developed the educational system that would make the country maintain its social economic order. Today; Singapore is the world fourth largest financial hub, and one of the emerging market’s economic giants. South Korea is not different from Singapore, infarct, it was much poorer than Kenya in 1960, today; it has $1.1556 trillion economy which is 47 times that of Kenya’s $33.62 billion. Thank you to their emphasis and prioritization of human capital development.

Oil rich Gulf States have realized that, despite their massive petroleum deposits, explosive global population growth in relation to the demand for energy is accelerating the depletion of their current deposits. The Gulf States have realized that, development of alternative sources of energy, and technological advancements could cripple their economies in not distant future if they keep on sleeping on their brains. Saudi Arabia, Bahrain, Qatar etc. are sponsoring their citizens in thousands into American corporations, and learning institutions so they can master different trades vital to keep their economies alive beyond the present oil boom.

Rwanda could be the perfect example of Africa’s rapid growing economy reliant upon the development of its human talents. The country emerged from the ruins of war with vision to be an economic power. Besides his ZERO tolerance policy on corruption, President Kagame is recruiting thousands of Rwanda Diaspora, along with foreign experts that are now running various agencies within the Rwandan economy. Unlike resource rich DRC and Tanzania, Rwanda with virtually no natural resources, is on the verge of becoming Singapore of Africa.

Industrial revolution pushed America to become by far the most dominant and greatest social-economic success in mankind history. America exploited all it had –natural resources and human brains- for its own economic development.  It became the world largest mixed economy. Its trade volume has no match; by far the largest trader and exporter of goods and services, with enormous stock of human capital that has maintained the American competitive edge. Squeeze America in a corner, to see the agility and ingenuity of its people. Americans success is rather not a coincident. They sacrificed and toiled to be where they are, just like Japanese, they are hard workers and take pride at what they do.

They have established research and learning institutions that have no match. Their immigration laws are attracting the best brains from around the world. American learning and research institutions, corporations, and tech companies, are attracting and retaining some of the most brilliant minds to further the American entrepreneurial spirit; People who can create jobs for the Americans.

In contradiction, resource rich African continent is further falling into the abyss of poverty, social chaos and disorder. Richer nations like Democratic Republic of Congo, Angola, Sierra Leone, and Tanzania, have enjoyed nothing out of their wealth apart from providing slave- like labor to foreigners extracting their wealth. The countries are devoid of human capital. DRC and Sierra-Leone know NO peace; all they know is war and endless cycles of violence perpetrated by foreign entities scrambling for their wealth.

If only Africans could stop sitting on their brains, be more patriotic, love themselves, control their greed, value their people as opposed to worshipping foreigners with phony exploitative foreign-aid, and use their resources to develop domestic talents, without a doubt, they will see a new dawn of economic prosperity!

Tanzanians should understand that foreign aid has never been free. Foreign aid is the biggest curse and an impediment to our economic progress. It comes at a steep price. It is an incentive to soften the weak minded for exploitation. Foreign Aid is breeding corruption, and making people lazy.  Foreign Aid strips people of their freedom and dignity. It reduces them into caricatures, and renders into charity cases in the eyes of the world. If the world loves Africa, then it should save Somalia. It is the neediest!

Instead of letting ourselves vulnerable to economic manipulation, Tanzania must rethink its future in terms of human capital, and deal with the Immigration laxity that is killing our entrepreneurial spirits; replacing our small scale entrepreneurs with Chinese machingas. Policymakers and economic planners must design an Industrial- agriculture, manufacturing, mining, transportation, and technology- infrastructural revolution plan, accompanied by skilled immigration policy that will turn Tanzania and its wealth into an economic power.

Tanzania is not business friendly; it is attracting more of exploiters than innovators. The country is sleeping on its natural wealth and its brain power. Like Rwanda, Liberia, and Kenya, Tanzanian government must find a way to entice its skilled Diaspora population, declare corruption a taboo and a national enemy to see a rebirth of a new nation. Our educational system needs a 360 makeup to hasten domestic talent development. Our education must be hands-on oriented for workplace readiness. This dimension of human capital preparedness is therefore, The Tanzania’s missing economic puzzle piece.
  
I have repeatedly said that our natural resources have no expiration date; neither are they running away from us. We may not have the capacity to develop them at the moment; however, given the rate at which they are being extracted and exploited by foreigners, we will soon remain with both craters to fill, environmental nightmare, incompetent and unskilled workforce to deal with amid social and economic chaos.

Mungu Ibariki Tanzania

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