24.02.2012
Opportunities in current economic crisis
By: RENIER VAN ROOYEN
THE economic crisis has had a profoundly negative impact on
economies, standards and quality of life the world over. It does,
however, also present opportunities, at a local level in particular.
The crisis emphasises the need for efforts geared towards sustained
socio-economic development; and herein lays the opportunity.
Because
key growth indicators such as trade and exports slow down during times
of economic downturn, countries are forced to take stock and consider
aspects that will contribute to lasting development programmes.
Such
consideration raises the question as to whether enough is being done to
advance the pillars of the economy, particularly education, industry
and infrastructure development.
With the focus on the fundamentals
of economic advancement, countries become more inclined to direct
resources towards these sectors.
The anticipated impact of the
financial crisis on a number of developing countries may entail a
combination of collapse of financial systems and structures, which
impedes lending activity, a general slowdown in exports and interruption
in the flow of financial resources to these countries.
Namibia, to a large degree, has been sheltered from these threats.
It
has a strong financial system, there is sufficient capital available in
the local market, and it is not totally export-dependent. The recent
Euro bond issue also confirms that the country is capable of sourcing
funding and attracting investors in the current economic context.
Drawing
on this advantage, by consolidating the pillars of socio-economic
development instead of merely focussing on regular consumptive patterns,
can place Namibia in a position not only to participate more
meaningfully in the global economy once it recovers, but to present a
model for development that can be replicated in the rest of Africa.
Programmes
such as the Targeted Intervention Programme for Employment and Economic
Growth (Tipeeg) are important instruments in this scenario as it
focuses on the critical elements that need to be put in place during the
course of the crisis, for Namibia to emerge as a continental leader
once the crisis subsides.
The Development Bank of Namibia (DBN)
aligns its strategy with the policy of decentralisation, which involves
development of social infrastructure in rural and unproclaimed areas
among others.
Namibia is in a position to invest in social and
physical infrastructure and to advance key sectors such as
manufacturing. This is due to the availability of funds in the economy
that may not be applied optimally at present as a result of the notion
that Namibia lacks development opportunities and projects.
There is
sufficient opportunity to initiate significant development projects.
There are also sufficient resources, and recognition of the need for
advancement of these projects.
What is required, however, is
coordination of the effort to achieve long term benefit for our nation.
So it is imperative that the different stakeholders tasked with
socio-economic development be brought together for the country to
achieve this goal.
If this approach is followed prudently, we can
expect sustainable wealth creation in Namibia. This wealth will increase
value at a national level, with the resulting financial stability
enabling the country to draw even more foreign direct investment. It
will also improve living standards significantly.
I believe that Namibia is uniquely placed to successfully implement development programmes with enduring benefit.
The
country’s solid infrastructure base provides it with a definitive
comparative advantage and, if harnessed, can see to Namibia sharing its
experience in addressing complex development challenges, with the rest
of the continent.
Namibia has an opportunity to get it right if it
has the courage to seize the moment that the current economic crisis
presents. By seizing the moment during a particularly bleak phase, it
can become a beacon of light; with tangible benefit for its citizens and
those in other parts of Africa.
