WHY WESTERN ECONOMIC MODELS MAY FAIL TO WORK IN AFRICA

Senathon Ipia (senaipia@gmail.com 
+234 7052802574)
Why do economic models propounded by the West fail in Africa? In this article, we find the answer to this question.
In his widely acceptable definition of Economics, Lionel Robbins, states: “Economics is the science which studies human behaviour as a relationship between scarce and ends means which have alternative uses.”

The term “human behaviour” in the definition denotes that economic postulations, theories and models are reached from observation of economic events or activities controlled or influenced by humans. If expected human economic behaviour would follow a certain pattern, then it follows that postulations would lead to reliable theories or models. So, all other things being equal, if human behaviour underpinning an economic theory/model remains unchanged, then the theory/model developed remains efficacious. 

Most economic theories and models have their origin in the West, meaning western human behaviour underpins those economic theories and models. But African human behaviour is different from that of the Westerners. For instance, in the West, a public office holder resigns when his/her performance becomes unsatisfactory, but in Africa a public office holder sits tight in spite of his abysmal performance. The Head of British Government would likely resign if the policy of the day does not enjoy popular support, but the head of government of an African nation would work to perpetrate himself in power despite his record of woeful performance.       
When there is deviation from expected human behaviour upon which an economic model underlies, its workability fails.

Next is a brief discussion of how African human behaviour stops the smooth workability of an adopted western economic model in Africa. The following is by no means an exhaustive list of the various scenarios but it gives instances of why western economic models fail in Africa.


Human Behaviour of Killing Import Substitution Strategy
When imports are replaced with local product for local consumption, the benefits are eminent: rise in innovation, employment generation, reduced demand for foreign exchange and a move towards self-reliance.
The political and economic heavy weights in Nigeria have the attitude (behaviour) of jettisoning or sabotaging import substitution strategy. Reason: import of basic goods is lucrative to them, as much of their wealth emanates from selling imported goods – the large population of Nigeria portends a large market for the imported goods they deal on. Therefore, the heavy weights refuse to change to a new order, where production process is set up to replace import process. The continuation of business as usual destroys the workability of an import substitution strategy or model adopted by government.

Inordinate Self-Interest of Some Privileged Few
Why would an oil-producing country import refined petroleum products? To create business for some cabals. Why would power generation be on the exclusive list of legislation in Nigeria? If power generation, transmission and distribution were on the concurrent list and unbundled to the federating units, some states would have had stable power supply by now. In the value chain of power generation, transmission and distribution, it is the latter that was sold off to some favoured beneficiaries. Power distribution is the aspect that interacts with the people, from which huge funds is generated. So, a private sector monopoly was created for the favoured few. The benefit of some elites was brought to the fore in the unbundling of power distribution in Nigeria. In the adoption and implementation of any economic policy or model, the few privileged ones do bring their self-interest to the front burner, which undoubtedly, conflicts with public or national interest, resulting in poor economic performance.

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