Inflationary Pressure from High Tariff (V)

By Iroabuchi Onwuka

But during transitioning strategy, there are always the issue of very few Manufacture companies to start with and fewer locals capable of making competitive investment, hence a third world economy. In such circumstances, this is where the Banks come in. In Nigeria, the recent experimentation with credit yielded a harvest of debt as such a slowdown in representation.

China however solved the problem with Development banks and they remain slightly ahead of manufacture curve of many countries largely on defense of their premier wage and price control on the working and middle class China republic. In essence the rate of growth of Chinese influence in recent years has everything to do with inflation control, a dynamic, that is less wicked for Nigeria whose Naira is not even fixed. But China is a quasi communist economy and as such their price and wage control cannot apply in Nigeria or any third world economy.

I mean Nigeria should look at fixing the currency if such high protective and structured Tariffs will be allowed to continue. Else the NEMT should understand they are fretting the economy away to the cheapest merchants of the world. Merchants when not managed only leave a pill of dumps in any country of their wake. In essence, the wider the chance you give these people, the more they clean the markets.

In terms of Privatization from Government ownership, countries such as Nigeria will only be expected to struggle with successful privatization given above all the fact that they are time constrained to produce more of the same or different goods for their ever expanding demographics.

The same incentive is that necessary if we are to grasp with what happens with small businesses transitioning to mid management. In many ways, most third world economies grind themselves to a halt with false attention on foreign investor seeking to enhance the growth through special privileges. These special privileges create inflationary pressure which rest in peace of the buying power. In the name of economic growth, these third world economies when engaged forget the bullish market side of business and the power of self interest, making silly Tariffs that go the distance ruining the benefits of privatization.