A New Model for National Development

A New Model for National Development

GUEST LECTURE BY HARETER BABATUNDE ORALUSI AT FORTIETH ANNIVERSARY CELEBRATION OF UNIVERSITY OF IBADAN PSYCHOLOGY DEPARTMENT

SYMPOSIUM TOPIC: A New Model for National Development

THEME: Place for Psychology & Business

DATE: Monday 7th November, 2016.

PROTOCOLS

  1. it is a pleasure to join you here at University of Ibadan, Dept. Of Psychology and to discuss this important subject of A NEW MODEL FOR NATIONAL DEVELOPMENT. Let me begin by thanking the organizers of this symposium for inviting me to speak on an interesting topic today. My special thanks to Prof. A. S. Jegede, Prof. B. O. Ehigie, Chairman of Organising committee, the management and student of one of the greatest University in the World.
  2. This is the FORTIETH ANNIVERSARY, and from the list of participants, it is clear that this symposium is building a reputation as the key gathering for stakeholders in public and private sectors. I am confident that we will have a very productive and stimulating symposium in the national development of our great nation, Nigeria.

 

‘’THE NEW MODEL FOR NATIONAL DEVELOPMENT IN THE CHANGE AGENDA

NATIONAL DEVELOPMENT

Development is critical and essential to the sustenance and growth of any nation. A country is classified as developed when is able to provide qualitative life for her citizenry. Over the years, Nigeria has been battling with the problems of development in spite of huge human, material and natural resources in her possession.

Every government derives delight in the attainment of higher value level of development in such a way that its citizens would derive natural attachment to governance. However, for a nation to be in a phase of development there must be some pre-requisites, which include socio-political and economic stability. The gap between the developed and the developing countries is not static or narrow but is continually widening. A large majority of the world’s population in developing world lives in a state of poverty.

The problem of urban population, rural stagnation, unemployment and growing inequalities continue to face developing countries, which Nigeria belongs. Hopes of accelerated development are difficult to realize. This depressing situation is of great concern to stakeholders and the concerned citizenry. This has greatly affected her quest to improved quality of life of her citizens. Poverty, unemployment and starvation still pervade the nook and cranny of the country.

For enhancement of meaningful development, effective strategies must be evolved. This paper reviews the trend of national development in Nigeria, and provides a workable method of approach to national development merging new business model with the psychological interventions “the state of psychology”.

Development as a concept is a victim of definition pluralism. It is a complex word to define. However, attempts have been made by erudite scholars to conceptualize development. Some of these definitions will be explored for the purpose of this study.

Gboyega (2003) captures development as an idea that embodies all attempts to improve the conditions of human existence in all ramifications. It implies improvement in material well-being of all citizens, not the most powerful and rich alone, in a sustainable way such that today’s consumption does not imperil the future, it also demands that poverty and inequality of access to the good things of life be removed or drastically reduced. It seeks to improve personal physical security and livelihoods and expansion of life chances.

Naomi (1995) believes that development is usually taken to involve not only economic growth, but also some notion of equitable distribution, provision of health care, education, housing and other essential services all with a view to improving the individual and collective quality of life (Naomi, 1995).

National development therefore can be described as the overall development or a collective socio-economic, political as well as religious advancement of a country or nation. But it is a clear fact that government alone are not sufficient to address the needs for sustainable development of the people and communities in Nigeria.

Government require new development model to drive change and sustainable development in Nigeria, business as usual practice by Nigeria Government can no longer applicable for any good result.

 

BACKGROUND

We have had series of development plans in Nigeria. Nigeria is permanently hunted by the spectres of development. Her fifty-six years of independence actually are rolling by daily in search of development.

The myth of growth and development is so entrenched that the country’s history passes for the history of development strategies and growth models from colonial times up to date. No term has been in constant flux as development.

Two years after independence, the First National Development Plan Policy was formulated between 1962 and 1968 with the objectives of development opportunities in health, education and employment and improving access to these opportunities, etc. This plan failed because fifty percent of resources needed to finance the plan was to come from external sources, and only fourteen percent of the external finance was received (Ogwumike, 1995). Collapse of the first Republic and the commencement of civil war also disrupted the plan.

After the civil war in 1970, the Second National Development Plan 1970 to 1974 was launched; the plan priorities were in agriculture, industry, transport, manpower, defence, electricity, communication and water supply and provision of social services, yet no sustainability in the plan (Ogwumike, 1995).

The Third National Development Plan, covering the period of 1975 to 1980 was considered more ambitious than the Second Plan. Emphasis was placed on rural development and efforts to revamp agricultural sector.

The Fourth National Development Plan 1981 to 1985 recognized the role of social services, health services, etc. The plan was aimed at bringing about improvement in the living conditions of the people. The specific objectives were: an increase in the real income of the average citizen, more even distribution of income among individuals and socio-economic groups, increased dependence on the country’s material and human resources, a reduction in the level of unemployment and underemployment (Ogwumike, 1995).

During these periods, Nigeria’s enormous oil wealth was not invested to build a viable industrial base for the country and for launching an agrarian revolution to liquidate mass poverty. For instance, the Green Revolution Programme that replaced Operation Feed the Nation failed to generate enough food for the masses. In the recent past, various strategies for development have also been tried with little or no result; among these were the Structural Adjustment Programme (SAP), Vision 2010, National Economic Empowerment and Development Strategy (NEEDS), creation of development centres, etc. So recently, 7-point agenda of the past administration with vision 2020 without any clear methodological approach towards achieving them. It is obvious that the current administration’s change agenda could actually improve on the previous strategies and policies to achieve sustainable national development.

In spite of series of development strategies, put in place by successive governments, and sometimes with good intentions, all attempts to generate meaningful development proved futile. If nothing was wrong with the plans, then why is it still difficult to generate meaningful development in spite of the huge resources at our disposal? The solutions to these puzzles are not far-fetched. A lot of factors have combined together to impede the nation’s development.

Firstly, there are in most cases, no executive capacity responsible for the formulation and implementation of the plan. What we usually see are officials entrusted to such a position but without any meaningful executive authority. Some of the previous development plans failed because; there was little or no consultation of the general public. Planning is supposed to involve even the peasants in the villages. Even, the Local Government officials who are close to the people were not consulted. Planning is not an edifice where technocrats alone operate (Mimiko, 1998).

Secondly, lack of good governance also militates against national development. Where there is no good governance, development becomes a mirage. This is as a result of bad leadership in the country. Most of our leaders have no sense of commitment to development, and this is the time we have to acknowledge the psychology of leadership and management as a typical solution.

Thirdly, high level of corruption and indiscipline is another barrier to development. The Nigerian state is corrupt, managed by corrupt leaders who have made the state an instrument of capital accumulation, rather than using it to project the interest of the citizenry. A very good plan supervised by a thoroughly corrupt state can hardly do a thorough good job (Mimiko, 1998). Corruption and development are antithetical to each other, the two cannot cohabit, and so, where one is present, the other suffers.

Finally, the mono-economic base of the country paralyzed development. The country largely depends on crude oil for her survival to the detriment of other resources. All other sectors of the economy are neglected. For instance, agriculture, which constitutes the mainstay of the Nigerian economy in the 1950s and 1960s, has been thrown into limbo over the years. How would government encourage export promotion when there is virtually nothing to export? The economy is not diversified and this is not suitable for a sustainable development (Mimiko, 1998).

The beauty of any development plan is the faithful implementation of such plan, which its success lies with the strategic models. It was mentioned that most of the past development plans failed as a result of implementation problem and lack of sustainable development model and leadership etc. Based on this fact, new development policies and strategies is required as alternative strategies for development, such as the New Business Model and the Psychology of Change etc. But if faithfully implemented, the nation will, at least, move towards path of development.

 

THE CHANGE AGENDA

Our lives are affected at every turn by politics, economics and culture – often without us realizing. Academicians and researchers have always studied these institutions and how they change, but often within strict academic disciplines which can lead to a blinkered view. We break down these barriers, with researchers working across disciplines to solve problems. What kind of change are we expecting in this era of change agenda?

Change is the process or end result of becoming different. President Muhammed Buhari led administration promised Nigerians change for the nation. In his agenda, the president aims to execute and implement policies that will change our wrong orientation and the country’s dependence on crude oil, provide mass employment, adequate security in the country, fight corruption and improve infrastructure, health care, education, agriculture etc.

In the analysis of the problems of Nigeria, the usual emphasis is on stagnation and obstacles to change: a low rate of overall economic growth, especially as compared to the growth in population; dramatic increases in the balance-of-payments deficit, due mostly to imports of consumption goods; an unusually high proportion of current consumption in the national income and a correspondingly low level of domestic saving; a high rate of inflation; extensive domestic price distortions with consequent inefficiencies in production and distribution which also arise from bureaucratic sources; a slow and cumbersome economic decision making machinery in the government and an apparent absence of cogently planned policies in a number of critical areas; domestic political liberalization which has been more superficial than real and only marginal changes in fundamental political processes with widespread, genuine change cannot be achieved without new implementation model.

Psychology is an instrument for change and development. To complement other efforts, psychosocial well-being has been recommended as an important complementary indicator. There is a considerable body of psychological research, including research in the fields of Social Psychology and Positive Psychology, which demonstrates empirical relationships among psychological well-being, social well-being, optimal functioning, positive human growth, and development. Nobel Laureate economists, international experts, and UN member states like France, Great Britain, and Japan have initiated efforts to complement the GDP as the measure of national wealth with a measure that quantifies well-being alongside economic strength.

Psychosocial empowerment and interventions can provide access to productive employment and decent work. Research in psychology indicates that being engaged in decent work promotes psychosocial empowerment by developing a sense of resourceful among members of families, communities and society which reduces marginalization and poverty.

 

THE NEW BUSINESS MODEL

Business is a powerful force for change for government and individual. The role of business to define and shape our collective futures is immense, and more crucial than ever before. Solutions to the world’s most pressing problems and exciting opportunities are global, interconnected and interdependent.

Today’s challenges – unemployment, exclusion, inequality, economic shocks, poverty and global warming – oblige us to rethink the way we do business. The needs of large groups in society in industrialized as well as developing countries are neither met effectively by conventional markets nor by the state. One product of this rethinking has been the emergence of social enterprises – businesses with primarily social objectives – as part of a growing “Social and Solidarity Economy” that also includes the economic activities of community and voluntary organizations. Social and solidarity economy enterprises complement other channels of providing goods and services. This includes the reintegration of vulnerable groups into working lives and the extension of social protection.

The Nigerian economy is rated largest in Africa and one of the world highest economy with average growths of 7% having a gross domestic product of over $500 Billion USD per annum. Apart from the growth rate that does not match economic realities, many confirm that the economy has been underperforming and several indexes put Nigeria much lower ranking than smaller African Countries.

It is a fact that Nigerian economy is deflating; Central Bank of Nigeria (CBN) recently confirmed that 70% of the 80 million youths in Nigeria are unemployed. Poverty is a major challenge; National Bureau of Statistics (NBS) stated that 112.5 million Nigerians live below poverty line while World Bank rates Nigeria among extremely poor countries.

The social economy is an important player in delivering support to people and community. It provides support to ensure that adequate livelihoods are secured by addressing food security, homelessness, unemployment, financial exclusion, lack of access to good healthcare and education, as well as support for physical and economic regeneration of deprived urban and rural communities. It also plays an important role in supporting the labour market integration of those who are in a precarious situation.

Indeed, the term “Social Economy” refers to a universe of organisations based on the primacy of people over capital. Their aim is providing goods, services or jobs to the community at large with a long-term perspective. This  universe  includes  organisational  forms  like corporations,  cooperatives,  non-profit, foundations  and  associations,  as  well  as  newer  forms  like  social  enterprises.

The Social Economy is contributing to  the  implementation  of  several  key developmental objectives,  such  as  employment creation  and  retention,  social  cohesion,  social  innovation, infrastructure, rural  and regional development including international cooperation and development, environmental  protection,  etc.  Indeed,  its  role  has  become even  more significant in recent years, as social economy organisations have proved to  be  a  major  anti-cyclical  force  in  confronting  the  economic crisis affecting the world.

Social innovation is one of the growing and promising sectors in the world, provides the blueprint on track for development of the nation. Social enterprise offers solutions to social dislocation, inequality, education failure and climate change. It also provides a sound basis for self-development. Social enterprise is a survival tactic for the poor in the developing countries across the world.

Social enterprises are businesses that attempt to tackle social problems, improve communities, people’s life chances, or the environment. These businesses are in our communities and on our high streets – from coffee shops and cinemas, to pubs and leisure centres, banks and bus companies. They make their money from selling goods and services in the open market, but they reinvest their profits back into the business or the local community.

Social enterprise has the capacity to create a sustainable market that is dynamic and job creating, through this social enterprise contributes to national development. This in addition to the social services they already provide, which support the economy by improving quality of life for the local workforce. It is clear that social enterprises are the best tools for development. Much should be invested by the public and private investors to improve social entrepreneurship sector. More people should be sensitized on how to tap their skills and talents as a means of venturing into entrepreneurship, the key goal being self and community development.

Theory of change – Your Social Impact

Resources

(Resource Strategy)

Activities (Business Model) Outputs Short and Long Term Outcomes Impact
In order to accomplish our set of activities, we will need the following: In order to address our problem, we will accomplish the following activities We expect that once  accomplished these activities will produce the following evidence or service delivery We expect if accomplished, these activities will lead to the following changes in 1-3 then  4-6 years We expect if accomplished these activities will lead to the following changes in 7-10 years
Tangibles:

  •  Funding

Intangibles:

  • People (social capital)
Assembling of the Business Plan itself:

  • Vision & Mission
  • Strategy (includes Go-to-market strategy, market plan)
  •  Competition
  • Team and Operational Plan
  • Growth Strategy
  • Measuring Results
  • Financial Plan
     

 

For instance, Muhammad Yunus, who won a Nobel Peace Prize in 2006, established a multi-billion-dollar bank on a simple idea: Poverty need not to be permanent. He reasoned, most people have the innate skills to lift themselves out of poverty. Since establishing the Grameen Bank in Bangladesh in 1983, Yunus has seen his theory borne out: millions have benefited from the bank’s small, interest-free loans. In his speech when addressing the Harvard Business School audience, he said “all human beings are entrepreneur, with no exceptions whatsoever” “Human creativity has no limit,” he said. “It’s a question of how we apply it.” Yunus said. “It’s important to envision a world without poverty, and to imagine how we might create that world.” He added, “Just as we once relied on science fiction to inspire and guide us toward a possible technological future, we must now dream up tomorrow’s social innovations.”

Recent research has presented a multidimensional view of empathy. Based upon the results of recent study, it is proposed that where empathy impacts positively on the governance of an entity it can foster the moral and psychological environment necessary for social enterprise to flourish. However, this may be an excessive simplistic view of the impact of empathy on cooperative social enterprise in general. Based on this finding, it is proposed that empathy can influence behavior within social enterprises (internal) and between social enterprises and their potential beneficiaries (external).

Internal empathy relates to the empathy that takes place between the leadership and staff of a social enterprise that can facilitate moral decision making and shared intentionality. External empathy is the emotion generated by the social enterprise for the beneficiaries it is trying to help.

Many social enterprises are started because the social entrepreneurs empathize with plight of the people they wish to help. This is the point at which social entrepreneurs should be aware of the multidimensional concept of empathy: emotional contagion, emotional disconnection and cognitive empathy (Decety, 2011a, Decety and Michalska, 2010). If social entrepreneurs are experiencing emotional contagion only (Iacaboni and Dapretto, 2006; Lipps, 1979) then there is a danger that they will be so emotionally involved in the plight of their beneficiaries that they will not be able to react objectively to alleviate their plight.

This situation could lead to a failure to produce an appropriate social enterprise model to help their potential beneficiaries. The emotional contagion experienced requires regulation through emotional disconnection, which can protect the social entrepreneur from extreme emotional impact (Lamm, Batson and Decety, 2007) enabling a more rational response to the plight of their beneficiaries.  Having regulated the emotional contagion through emotional disconnection, the social entrepreneur can then experience cognitive empathy (Decety, 2011b), which enables the understanding of other’s emotions and can return objectivity when trying to help their potential beneficiaries. This means that social entrepreneurs who are leading social enterprises will require the quality of empathy in addition to the qualities of intelligence, responsibility, vision and passion.

Figure 1 – The Role of Empathy in Social Enterprise Formation

Non-entrepreneurial solution identified

 

           
     
 
   
Entrepreneurial and Innovative solution identified
 
Social entrepreneur emerges from DG
 

Looking to the future, these issues will be the most essential key drivers of industrial and economic change, and the most successful enterprises are likely to be those that respond most effectively to these challenges. Indeed there is a growing base of evidence to highlight that enterprises which bring social sustainability into the heart of their business strategy, outperform their counterparts over the long-term, both in terms of capital market and accounting performance.

CONCLUSION

In conclusion, psychology and business can play a prominent role in facilitating change and fighting corruption. Case studies can be found in Asia, Europe and United States. For example in few European countries like Sweden, Demark, Austria to mention few, some prisons are run by social entrepreneurs as social enterprise generating income for inmates, businesses, government and themselves through large work force opportunity.  Government rather generate income from prison instead of heavy spending, businesses use prison inmates as a cheaper labour for insensitive products and services, inmates earns income while in prison and change their minds away from crime while the social entrepreneurs also make sustainable income. We need to look beyond as usual system and be ready to adopt new model leadership and business that can accelerate development in Nigeria.

God Bless you, UI and Nigeria.

 

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