Politicss is “ the scientific discipline or art of political authorities. ” [ dictionary.reference.com/browse/politics ] . Laws and policies are created to regulate a state, people and concerns. Whereas, Economics is the manner in which a state decides to reply the three cardinal economic inquiries. In order to happen the political economic system of a state, one must understand the state ‘s political and economic systems individually. Relevantly, Kenya ‘s political relations revolves around its “ semi-presidential representative democratic democracy, in which the President is the caput of province every bit good as the caput of authorities, and in a multi-party system. ” [ www.cfr.org/kenya/understanding-kenyas-politics/p15322 ] . In other words, Kenya ‘s political system can be summarized as a democratic state where there is a President every bit good as a Prime Minister.
Second, Kenya ‘s Economic system can be categorized as a “ market economic system, ” [ www.africa-business.com/kenyainfocus.html ] , ( besides called free endeavor, and private endeavor ) . As the name implies, Kenya ‘s resources are owned in private, intending local citizens and concerns have the ability to have Kenya ‘s rich militias of “ limestone, sodium carbonate ash, salt, gemstones, etc… ” [ hypertext transfer protocol: //www.cia.gov/library/publications/the-world… /geos/ke.html ] . Furthermore, as an operator of a market economic system, Kenya has given local citizens the freedom to open a concern, compete in the planetary market, and to maximise their net incomes.
Now that Kenya ‘s political and economic system are known, its political economic system can be identified. In theory, a state ‘s democratic authorities and market economic system can reason that a state ‘s political economic system to be a capitalist. Therefore, “ Kenya is a favorable capitalist state ” [ www.democracyweb.org/freedom/kenya.php ] in which the citizens enjoy basic rights and freedoms and have the freewill to open and merchandise freely.
ECONOMIC THINKERS ‘ REACTIONS – Adam SMITH
There are many economic minds who will hold and differ with the implicit in message of this issue. Many of these minds will hold their ain sentiment and their ain solutions to the issue. However, two of the many economic minds who efficaciously fit in with the issue are Adam Smith and David Ricardo. There are assorted different positions that would be coming from both of these minds. Both of these minds have had varying life styles and are likely to do varying picks.
Adam Smith ‘s theory revolved around division of labor and opportunism of local citizens, net income and competition. Furthermore, he was a strong advocator of natural jurisprudence, which “ derives from nature and is believed to be adhering upon human actions… ” [ dictionary.reference.com/browse/natural+law ] . He besides believed that “ since people have a natural inclination to function their ain best involvements and to get wealth, the chase of opportunism would finally profit all persons if they were left entirely make more wealth. ” [ Balotta, pp. 48 ] . If Smith were to analyze this issue, he would pull several decisions that would be favorable to natural jurisprudence, self-interest, net income and competition. For illustration, he would state that the competition for land is really normal and it is a healthy manner for citizens and investors to work together and happen a solution to the job based on each others ‘ opportunism. In order to happen a solution to this job, Smith would use his value driven opinion on scarceness and copiousness. There is a scarceness of H2O and at the same clip, an copiousness country of farming area. Investors are attracted to the huge infinite of land and at the same clip disinterested by the deficiency of H2O. Therefore, Adam Smith ‘s solution would be to allow the self-interest of purchasers and Sellerss balance out the scarceness and copiousness of natural resources. As can be seen, there is a batch of land while there is a limited supply of H2O. If one investor buys half of the land, local husbandmans would profit from the excess net income they are gaining through the rental of the belongings, but at the same clip, they will non hold their ain district to farm their ain agricultural merchandises needed to feed their households and themselves. Therefore, they will hold to utilize the money capital that they have earned through the sale of the land to purchase industrially produced goods. Even though the husbandman is non able to farm in his land, he is able to purchase produced goods with the sale of his goods. Meanwhile, the investor who has merely bought the land from the husbandman will non be wholly satisfied either. His ability to reap flora and farm animal would greatly endure non because of his accomplishments, but instead the limited supply of resources to bring forth his goods. Even though he has a huge country of land, he is missing the H2O to H2O the harvests and feed his farm animal. Therefore, he has no other manner but to import H2O from neighboring states, which is traveling to be him more. However, by the clip his harvests and farm animal have matured in the hereafter, he will hold a batch of agricultural goods to sell to non merely the local communities, but to international consumers every bit good. Therefore, even though his net income gaining strategy was non rapid, he is successful in the long term. Therefore, both the marketer and purchaser has met their outlooks and fulfilled their self-interest. Government intercession was non needed to work out the job, but instead the doctrine of each others ‘ opportunism, net income goaded outlook, and competition. Hence, this would hold been Adam Smith ‘s solution to the issue of Kenya ‘s over development of land and the scarceness of H2O. Smith ‘s non-aggressive mode towards an economic crisis is a really unlikely in today ‘s society as many people are willing to welcome authorities ordinances to guarantee that truthfulness and ethical ethical motives are in topographic point for investors.
ECONOMIC THINKERS ‘ REACTIONS – DAVID RICARDO
David Ricardo is a really rational mind and a vigorous protagonist of free trade. Ricardo prefers comparative advantage over absolute advantage. Comparative advantage can be defined as “ the capacity of one economic system to bring forth a good or service with relatively fewer resources than another ” [ Bolotta, pp. 452 ] . In other words, a state needs to bring forth goods based on their ability and the sum of productive resources available. Angelo Bolotta, uses an illustration of “ when a community which can bring forth grain more expeditiously than another, while the other can bring forth wool more expeditiously, trade will be of absolute advantage, ” [ Bolotta, pp. 55 ] intending the two communities can merely bask what they have produced. Ricardo enormously illustrated the advantages of holding a comparative disadvantage, where two or more states can bask assortments of different goods while at the same clip giving some of their ain. David Ricardo ‘s economic positions revolve around battle for nutrient, district, and employment, comparative advantage, “ Fe jurisprudence of rewards, ” and the diminution of the function of the authorities.
Since Ricardo is a strong protagonist of Free Trade, he will non let investors to merely take over the Kenyan farming areas, nor will he allow them reap their ain flora. What he will urge is that both the husbandmans and investors work together to merchandise expeditiously so that each of their motivations is met. The investors ‘ motivation is to derive net income through reaping flora and farm animal in huge African farming areas located in Kenya, while the husbandmans ‘ motivation is to increase production of their agricultural goods, by happening ways to acquire H2O from neighboring states. Therefore, what he will propose is for the investors to export H2O to Kenyan farming areas so that the local husbandmans may utilize it to feed and H2O their flora and farm animal. When the husbandmans are successful with their addition in production, they may sell it in the local market and abroad and pay their investors through portions and per centum of gross revenues for their supply of H2O. Since many of the investors are from free market economic systems, they are able to have natural resources such as H2O in private. Therefore, the export of H2O should non be a trade barrier. Even though his motivation is the same as Adam Smith, ( authorities intercession is non required ) the actions are wholly different. Ricardo is advancing free trade through an economic crisis in a peculiar state.
However, David Ricardo ‘s position on the issue will be really disapproving of Adam Smith ‘s position in the same issue. While Adam Smith described society as a household working together towards success, Ricardo classified them as different struggle groups. Ricardo categorized these groups as “ working category, industrial category, and blue landlords. He argued that one group could merely thrive at the disbursal of others. ” [ Bolotta, pg. 53 ] . He absorbed that the blue landlords held a greater chance to win, because of their claim on belongings and the “ on the job category would ever work, ” [ Bollota, pg. 52 ] and the industrialists had no political advantages. This can be applied to this issue. Ricardo will sort the husbandmans as the industrialists, the investors as landlords, and the households of the husbandmans as the working category. Although it does non straight use to his point, it can be farther explained as a close propinquity to his aims. The husbandmans can be classified as the industrialist because they own the farming areas, flora and the farm animal. The households of the husbandmans can be classified as the working category because they must work under other husbandmans to bring forth flora and farm animal. The investors can be near to sorting them as the landlords because they own the land. Therefore, the landlords ( investors ) will ever “ prosper merely at the disbursal of the husbandmans “ industrialists, ” and households of the husbandmans ( working category ) . Even though this is non Ricardo ‘s motivation, “ greedy industrialists will ever maintain their workers ‘ rewards low, claiming that they were thereby executing a public service ” [ Bolotta, pg. 53 ] .
THE TIMES – Adam SMITH
Like many people, many economic minds have difficult and easy times in their life. Adam Smith lived in a household like most people today live. He was “ born into a middle-class household in a fishing small town near Edinburgh, Scotland and graduated from Oxford University. ” [ Bolotta, pg. 48 ] . During his growing, he experienced life in a mercantilist economic system. “ This system is based on the province ‘s control of economic production and trade, with the end of exporting as many goods as possible for sale abroad, while, at the same clip, importing as few foreign goods as possible ” [ Bolotta, pg. 49 ] . Although this seems like an intelligent strategy, there are many drawbacks connected to it. If the authorities were to curtail the sum of goods imported, it will go forth consumers with a limited assortment of goods to be consumed, which inordinately cut down consumer disbursement and will take to serious economic issues such as unemployment, pricing, and competition. Besides, this will impact many parties, including the manufacturers, enterprisers, and laborers. They felt disrespected by authorities actions. Adam Smith ‘s thought of a society governed by natural jurisprudence came into drama, which “ led to the Gallic Revolution ” [ Bolotta, pg. 49 ] . “ Numerous thoughts that belong to Smith have been adopted by Great Britain to redistribute big countries of land to little secret plans for single landowners, where they began to farm for subsistence alternatively of net income ” [ Bolotta, pg. 49 ] . Apart from being a natural jurisprudence protagonist, Smith ‘s theory negotiations about opportunism, where he “ believed that human existences are motivated chiefly by the desire each of us has to break status in life ” [ Bolotta, pg. 49 ] . He was besides known for the “ unseeable manus ” theory, where he believed “ authorities ordinance is non needed to command the economic system, because market competition will function as a natural control ” [ Bolotta, pg. 49 ] . Apart from the unseeable manus, he went onto experiment his thought of division of labor, jurisprudence of accretion, and jurisprudence of population.
THE TIMES – DAVID RICARDO
Adam Smith ‘s theories and sentiments are enormously argued by David Ricardo for several grounds. One of the grounds is because his upbringing and life style were really contrasting from Adam Smith ‘s. “ Ricardo was born into a comfortable household in London on 1772 ” [ Bolotta, pg. 52 ] . He is known for his aggressive and hazardous trading motivations. Unlike Adam Smith, “ Ricardo lived during a period of great societal struggle and political agitation in Britain ” [ Bolotta, pg. 53 ] . The population was dining taking to a deficit of nutrient. In his theory, he categorized society as three different groups. They are the “ on the job category, industrialist and Aristocratic Landlords. He argued that one group could merely thrive merely at the disbursal of others. He thought that the blue bloods had a greater opportunity to thrive because of the high rent they charged for the rental of their belongings and the on the job category would ever work and the industrialists had about no power in parliament ” [ Bolotta, pg. 53 ] . He efficaciously put his theory to utilize by agencies of Corn Laws. “ Corn Laws are the revenue enhancements on grains imported from other states, which so increased monetary values. The Industrialists had to increase rewards to assist their workers survive which so decreased net incomes. In add-on, high grain monetary values meant the payment of high rent to the landlords. Therefore, the industrialists succeeded in revoking the Corn Laws and thereby ‘breaking the power ‘ and replacing the blue bloods ” [ Bolotta, pg. 53 ] . Ricardo besides went onto experiment with his celebrated Fe jurisprudence of rewards, where he “ believed that higher rewards would increase population but would non better criterion of life because it has to be distributed among larger households ” [ Bolotta, pg. 53 ] . He was besides known for understanding comparative advantage of trade, where he believed that “ two states can profit greatly by merchandising with another state that is better in bring forthing another point ” [ Bolotta, 55 ] . Therefore, the economic system of his life-time played a great function in his economic theories and sentiments.
THREE ECONOMIC QUESTIONS
WHAT TO PRODUCE?
The foreign investors interested in the Kenyan farming areas are seeking to bring forth flora and farm animal in the dry water-scarce country. They are seeking to bring forth every bit much as needed for the local and international consumers. They believe that since the population in Kenya is lifting, the deficit of nutrient is obvious. Therefore, they think that the production of agricultural goods is deserving bring forthing. The chance cost of utilizing the country to bring forth flora and farm animal is the country to better substructure, such as edifice infirmaries, roads, schools and Parkss. In Adam Smith ‘s book, The Wealth of Nations, he summarizes “ aˆ¦diversification is greatest for states with more industry and betterment. Agriculture is less conformable than industry to division of labor ; hence, rich states are non so far in front of states in agribusiness as in industry. ” [ hypertext transfer protocol: //www.democraticunderground.com/ ? com=view_post & A ; forum=1116 & A ; pid=5842 ] . Therefore, he believes that agribusiness is merely feasible for states that have technological and economic betterments. Kenya does non suit in with these standards, so he will non be supportive of the agricultural program. On the other manus, Ricardo believes that “ the most fertile land of course produces more nutrient than land of poorer quality ” [ hypertext transfer protocol: //www.victorianweb.org/economics/ric.html ] . As stated in the article, Kenya ‘s dirt is hapless quality and a batch of H2O is required to turn any flora. Therefore, both Smith and Ricardo are non supportive of the thought of the agricultural program.
FOR WHOM TO PRODUCE?
The foreign investors are seeking to bring forth as much flora and farm animal as possible in Kenya ‘s dry farming area chiefly for international consumers. The net income that they earn from the production will be distributed in the signifier of portions and per centum. The international consumers will have most or all of the goods while local husbandmans receive employment chances, per centum of net income in add-on to leasing charges for the land bought. Harmonizing to the article, merchandises will be shared every bit among international consumers while the merchandises will non be every bit shared among local consumers. Adam Smith ‘s position on this inquiry is once more negative. He believes that, ” aˆ¦ harvests are portion of an ecosystem. Many workss do non turn in isolation aˆ¦ Other workss and animate beings depend on the harvests that grow for endurance. By promoting husbandmans to abandon the natural aˆ¦ and exchange to foreign alien ‘cash harvests ‘ , wider environmental harm ensues ” [ hypertext transfer protocol: //www.globalaffairs.es/en/is-free-trade-fair/ ] . As declared, he is a supportive of environmental savings and therefore, will differ upon the thought of turning flora for the intent of hard currency harvests. Ricardo meanwhile, believes that “ hard currency harvests can be favorable for the nutrient security of manufacturers if they can buy nutrient in local markets at just monetary values. Food security could be at hazard if inefficiencies in the nutrient selling system consequence in high nutrient monetary values ” [ hypertext transfer protocol: //www.fao.org/docrep/003/X7352E/X7352E02.htm ] . Ricardo thinks that hard currency harvests can be effectual if merely the manufacturers ( local husbandmans ) have entree to nutrient at a sensible monetary value ) . It is really improbable that Kenyan famers will hold entree to nutrient, because they themselves are fighting to bring forth nutrient in their dry lands. Therefore, Ricardo will non favor this thought of hard currency cropping as this will restrict the nutrient security of local husbandmans populating in Kenya.
HOW TO PRODUCE?
The foreign investors are looking to bring forth the goods by agencies of local husbandmans in Kenya with the dry land and limited supply of H2O. They should take up every inch of land spared to works flora and raise farm animal. Kenya ‘s limited supply of H2O can be used more expeditiously by irrigating the land merely, because large foliages will forestall rain H2O from making the land. To raise farm animal, husbandmans should feed H2O to animate beings through feeding bottles alternatively of pails, because they tend to slop H2O when traveling about in limited infinite. Automation should non be used because harmonizing to the article, African farming areas are really delicate and will be disrupted if machines and technological inventions are used on the environment. Manual labor should be used harmonizing to the Kenyan labour ordinances, because the husbandmans that are traveling to be working on the husbandmans are local and it seems immoral to burthen them with work load that is unusual to them. Adam Smith explains that to work out a job of limitless resources with limitless wants, “ the resources that are available in nature must be efficaciously utilised and more goods should be produced to fulfill human wants ” [ hypertext transfer protocol: //www.indiastudychannel.com/resources/133733-Adam-Smith-his-theory-human-wants.aspx ] . Therefore, Adam Smith will be supportive of the thought of utilizing limited resources to carry through the limitless wants of consumers, if merely the foreign investors expeditiously use limited resources. Meanwhile, Ricardo states that, “ Gold, though of small usage, compared with air or H2O, will interchange for a great measure of other goods. ” Here, he is stating that H2O, like gold, is a limited resource and when traded, a high measure of goods will be received. This can be interpreted in a manner to advance free trade. What Ricardo is proposing is that trade the produced agricultural goods to other states that have huge sum of H2O and utilize the H2O as a productive resource to bring forth even more flora and farm animal. Even though Adam Smith is stating to expeditiously utilize H2O to do greater production of goods, Ricardo is proposing to merchandise our produced goods with other states for H2O.
There are many economic minds who have opinionated on complicated economic issues. But one of the celebrated economic minds to hold quoted a really thought arousing remark is Adam Smith. His quotation mark, “ To experience much for others and small for ourselves ; to keep our selfishness and exert our benevolent fondnesss, constitute the flawlessness human nature ” [ hypertext transfer protocol: //www.brainyquote.com/quotes/authors/a/adam_smith.html ] . This quotation mark is an first-class piece of art that conveys the implicit in message of the event. Smith is reminding people to love others and look out for their safety and wellbeing without the selfish motivation and work together to demo what human nature truly is. This quotation mark efficaciously pertains to the current event, because the foreign investors are being inconsiderate on the hapless Kenyan husbandmans. They are pull stringsing the husbandmans to give up their land so that the investors can utilize the husbandmans as labors and turn hard currency harvests on their ain land and export it to international consumers. From Smith ‘s position, this is nil but pure narcissistic. To utilize the attempts of a individual to bring forth net income for oneself and non admiting their attempts is malevolence and does non suit in with Smith ‘s quotation mark of demoing empathy towards others.
David Ricardo, like Adam Smith, is a sort hearted adult male who looks after the wellbeing of hapless husbandmans and the on the job category. One of his celebrated quotation mark, “ As the gross of the husbandman is realized in natural green goods, or in the value of natural green goods, he is interested, every bit good as the landlord, in its high exchangeable value, but a low monetary value of green goods may be compensated to him by a great extra measure ” [ hypertext transfer protocol: //www.brainyquote.com/quotes/authors/d/david_ricardo.html ] . Ricardo ‘s quotation mark can be analyzed, by the husbandmans ‘ guaranteed compensation by the industrialist. When a husbandman ‘s rewards are low, he is compensated by the goods he has produced, which he will so utilize to feed himself and his household. However, in this event, the hapless Kenyan famers are non acquiring anything in return except pay and a part of the investors ‘ net incomes. If rewards are non at the subsistence degree for the husbandmans, they will non be compensated by the production, as they are hard currency harvests and are non grown for the society. Therefore, this event does non run into Ricardo ‘s outlooks of working husbandmans ‘ compensations.
Harmonizing to Adam Smith ‘s theories, a legion sum of people are likely to be affected. Some of the people who will be affected are the consumer, because Adam Smith believes that hard currency harvests are harmful to the environment. If the industrialist were to listen to Smith, he/she will non merchandise internationally. If they do non merchandise, international consumers will non acquire a clasp of merchandises ( flora ) produced in different states. Investors will be affected because they are traveling to be puting in the companies that are purchasing the land to cultivate. As said before, the land has a deficiency of entree to H2O and if the undertaking of cultivation does non win, investors ‘ money would be disappeared and they will be greatly impacted. Communities will be affected because the companies ‘ determination to purchase the land will greatly cut down their ability to ain land and will restrict their handiness of land. Furthermore, environment will greatly endure, because as Smith has acknowledged, hard currency harvests are a negative impact to the ecosystem and the companies ‘ continuance of exporting agricultural goods for exclusive benefit of international consumers will connote a negative impact on the environment. Another stakeholder who could be greatly affected is the employees, who are the husbandmans. The husbandmans could be greatly affected because they are being robbed of their land by the aliens and they are traveling to be working difficult for the intent of profiting international consumers and are likely to be compensated really ill. The authorities is likely to be affected in a positive and negative manner, because they are traveling to hold a trade excess, because their exports of flora and farm animal would be greater than their imports. Besides, the employment rate of Kenya will be high, so at that place would non be many people unemployed. However, they would hold a deficit of nutrient, because the agricultural merchandises exported are hard currency harvests for the exclusive benefit of international consumers. However, the stakeholders of this issue looking under Adam Smith ‘s theories will be different from looking under the theories of David Ricardo.
Some of the stakeholders who will be different from that of Adam Smith ‘s theory are the consumers, employees, and investors. The consumers will be different from that of Adam Smith because Ricardo is a protagonist of free trade and consumers will profit from the import of agricultural goods from Kenya. The employees will hold different results because Ricardo believes his theory of Fe jurisprudence of rewards is contrasting to that of industrialists. The industrialists will ever maintain the husbandmans ‘ rewards at the lowest degree to claim that “ they are thereby executing a public service ” [ Bolotta, pg. 53 ] . Finally, investors will hold different results under Ricardo ‘s theory, because he himself was an aggressive and a hazard taking investor and if all the investors invested to a great extent in the cultivating concern, they will be probably to win, because the foreign companies will acquire the chance to free-trade with other states for H2O to bring forth agricultural goods. Therefore, even though the stakeholders are the same, their impacts differ greatly under different economic minds ‘ theories.
Adam Smith ‘s theories did non alter Canada ‘s economic system greatly. Canada ‘s free trade system is really rigorous, which means that it merely allows merchandises that are safe, high quality to be entered into our state. Smith believes that authorities intercession is non required to command the economic system, instead the market competition itself. If Canada were to step back from the economic issues go arounding Canada, there would be a catastrophe. For illustration, since many Canadian are immigrants from different parts of the universe, their civilization and faith are all different. There would be deficiency of communicating between new immigrants and the demand to show wants and demands will be limited. However, some of Smith ‘s theories are still at usage in some of Canada ‘s economic system. For illustration, “ the division of labor, or the specialisation of workers in a complex and mechanised production procedure, led to additions in degrees of production ” [ Bolotta, 50 ] . This is used in many industries and endeavors to maximise production, for illustration, there are physicians, carpenters, painters, instructors and technicians, which will increase production. Furthermore, Smith ‘s jurisprudence of population besides plays a similar function in today ‘s economic clip. For illustration, Smith states that, “ In order to pull more workers, viing industrialists must offer high rewards ” [ Bolotta, 50 ] . There are many viing concerns in today ‘s society offer higher rewards for workers for them to remain because of ongoing competition. Therefore, some of Smith ‘s theories are in usage in the Canadian economic system.
Ricardo ‘s theories did play a major function in the Canadian economic system as did Adam Smith ‘s. On the contrary, his Fe jurisprudence of rewards did non truly play a major function in Canadian Economy, because each individual is entitled to a lower limit pay which is above the subsistence degree. However, Ricardo wanted the “ rewards to be determined by free-market conditions, ” [ Bolotta, 53 ] which is the manner it works in Canada. However, his theory of the comparative advantage of trade can be easy related to the Canadian economic system. For illustration, Canada participates to a great extent in free trade and takes advantage of the comparative advantage. This can be seen by Canada ‘s discrepancy in imports and exports, which are automobile parts and petroleum oil for aircraft and electricity. ” [ hypertext transfer protocol: //www.cia.gov/library/publications/the-world-factbook/geos/ca.html ] . Therefore, the Canadian economic system is run by the theories of both Smith and Ricardo.
“ 70 % OF NIGERIA ‘S 150M PEOPLE LACK DECENT QUALITY URBAN LIFE ”
Writer: Chuka Uroko | Published: September 04, 2012 | Beginning: hypertext transfer protocol: //www.businessdayonline.com/New/index.php? option=com_content & A ; view=article & A ; id=43794:70-of-nigerias-150m-people-lack-decent-quality-urban-life & A ; catid=182: homes-a-property & A ; Itemid=633
Seventy per centum of Nigeria ‘s population is missing proper quality life.
Nigerian lodging is estimated to be 2.3 per centum per 1000 dwellers.
Timothy Nubi, from University of Lagos stresses that “ more than seven metropoliss in Nigeria have population above 1 million, ” [ Uroko, 2012 ] assuring them lodging and town development for more than a decennary.
Over 80 per centum of lodging minutess are rental, because there is no signifier of mortgage in the state.
Chukwuma argues that “ if these 80 per centum leases had entree to mortgage, things would be better and quality of life would be improved ” [ Uroko, 2012 ] .
Social lodging is an of import facet of a Nigerian citizen, but authorities intercession is required.
The Federal Housing Authority is responsible was created to supply societal lodging but is non taking any action.
Even the lodging industry can be taken over by private sector ; the authorities still must guarantee that lodging is every bit shared among everyone so that no 1 is stateless.
Citizens suggest that the state give people cheap land rubrics, supplying “ mortgages, and substructure so that developers wo n’t hold to pass money on that. [ Uroko, 2012 ] .
POLITCAL ECONOMIC SYSTEM
Politicss is “ the scientific discipline or art of political authorities. ” [ dictionary.reference.com/browse/politics ] . Laws and policies are created to regulate a state, people and concerns. Whereas, Economics is the manner in which a state decides to reply the three cardinal economic inquiries. In order to happen the political economic system of a state, one must understand the state ‘s political and economic systems individually. Relevantly, Nigeria ‘s jurisprudence is “ based on the regulation of jurisprudence and the independency of the Judiciary, and besides on the British common jurisprudence because the long history of British colonial influence ” [ hypertext transfer protocol: //en.wikipedia.org/wiki/Politics_of_Nigeria ] . In other words, the political system of Nigeria happens to be democratic, where the citizens are allowed to exert basic rights and freedoms and have a say in authorities activities.
Meanwhile, Nigeria ‘s economic system can be categorized as a “ in-between income, assorted economic system and emerging market, with spread outing fiscal, service, communications, and amusement sectors ” [ hypertext transfer protocol: //en.wikipedia.org/wiki/Economy_of_Nigeria ] . Therefore, Nigeria is a assorted economic system where endeavors are owned by both in private and province, authorities intercession is present, nevertheless, most determinations are made by the manufacturers and consumers.
Now that Nigeria ‘s political and economic systems are known, it is now convenient to place its political economic system. Since Nigeria is a democratic state with a assorted market economic system, its political economic system is in the center of capitalist economy and socialism, which means that “ consumers do hold a say in affairs, democratic, a semi truster of theories of Adam Smith ” [ www.dsausa.org/pdf/widemsoc.pdf ] .
ECONOMIC THINKER ‘S REACTION – KARL MARX
There are many economic minds who will hold and differ with the implicit in message of this issue. Many of these minds will hold their ain sentiment and their ain solutions to the issue. However, two of the many economic minds who efficaciously fit in with the issue are Karl Marx and John Galbraith. There are assorted different positions that would be coming from both of these minds. Both of these minds have had varying life styles and are likely to do varying picks.
Karl Marx theory revolved around worker ‘s rights, “ the economic reading of history, the international Communist Revolution and the labour theory of value ” [ Bolotta, pg. 58 ] . Furthermore, he was non a strong advocator of “ exploited workers, capitalist economy, child labor, slums, insecure and dirty mills ” [ Bolotto, pg 58 ] . Marx spoke of the dissolute results of working workers. “ He saw a universe in which all the wealth was achieved on the dorsums of the workers. Yet the on the job category received few of the benefits of their labor. If Marx were to talk of this event, he will state that the Nigerien authorities is an immoral capitalist and the citizens are the workers who endure long hours of work in insecure and dirty houses. What he will seek to make to work out the job is that he will wait for the workers to unite and over throw the corrupt opinion category, which is the authorities. What he means is that the opinion category will ever set a load on the working category, until they rebel. For illustration, if the Nigerien authorities continues to do broken promises sing the building of societal places, the working category ( the citizens ) , will “ lift up and arise ” for their voices to be heard. Although Nigeria is in the center of socialist and capitalist political economic system, they portion both qualities of the systems. They would contend for their voices to be heard and will finally “ unite to over-throw the corrupt opinion category ” [ Bolotta, pg. 58 ] .
ECONOMIC THINKER ‘S REACTION – Toilet GALBRAITH
While Karl Marx was an aggressive capitalist detester, John Glabraith is a strong protagonist of industries and encouraged concerns to open up in the boom mid-twentiess ( the economic prosperity that followed the Second World War ) . Even though he supported the reaching of concerns and corporate success, he besides believed in the common goods like substructure, such as infirmaries, roads, schools, Parkss, etc. While Marx believed in workers ‘ rights, Galbraith believed in societal balance.
If John Galbraith were to see this issue, he would state that the authorities should endeavor to run into its duties and fund societal lodging for the better of society. Besides, he would state that many concerns should be opened up in Nigeria for the flow of money to take topographic point and eventually, he would state that the authorities must present fiscal aims such as mortgage and down payments to break the efficiency of the economic system.
The actions of John Galbraith would about be the same as his position. The different is that he would press concerns to open up and bring forth consumer goods. When people start purchasing luxury goods, the authorities will acquire money through the belongings revenue enhancements from concerns and that capital would be plenty to construct societal places as promised. Besides, Galbraith would take a firm stand that the authorities must offer mortgages and down payments for consumers who are willing to pay to buy a house. Furthermore, Galbraith would propose turning the political system in such a manner that the authorities is involved to modulate the economic system. He believes that “ more authorities engagement and ordinance of the economic system would assist better society ” [ Bolotta, pg. 63 ] .
THE TIMES – KARL MARX
Like many people, many economic minds have difficult and easy times in their life. “ Karl Marx was born in the German Rhineland in 1818. One of the first columns to acquire Marx into problem with the authorities denounced a new jurisprudence that prevented provincials from exerting their right to garner dead wood in the wood ” [ Bolotta, pg. 56 ] . Marx became more and more of an vocal militant.
“ Marx was populating in the 2nd half of the 19th century ; he witnessed the sick effects of the Industrial Revolution on the working category ” [ Bolotta, pg. 56 ] . During the Industrial Revolution, “ workers lived in the slums, because they could non work anyplace because machines have replaced their occupations. Besides, Children were working because there were no child labor Torahs ” [ Bolotta, pg. 56 ] . Children did non obtain the cognition they needed, because they were working in unsafe occupations.
Marx believed that the “ capitalist system was immoral and the people who exploited it, ineffably evil ” [ Bolotta, pg. 56 ] . Marx ‘s theories revolved around the economic reading of history where he thought that the “ Torahs of economic sciences determine the class of human history ” [ Bolotta, pg. 57 ] . He believed that there was ever an user and an exploited. “ Whenever conditions became intolerable, the oppressed rise up in unfastened rebellion against their oppressors ” [ Bolotta, pg. 57 ] . This would go on until the laden unite to organize a brotherhood to over-throw the corrupt opinion category.
Besides, the international Communist Revolution is when the “ violent over-throw of capitalist economy, would take to international socialism based on the common ownership of land and capital ” [ Bolotta, pg. 58 ] . Marx besides believed in the labour theory of value where “ the value of any point is the value of all labors used in its production ( labour value ) ” [ Bolotta, pg. 58 ] .
THE TIMES – Toilet GALBRAITH
John Kenneth Galbraith was born in Canada, and graduated from the University of Toronto with a grade in Agricultural Economics. Galbraith worked in the “ federal Office of Price Administration, but after the war, he was appointed manager of the US Strategic Bombing Survey ” [ Bolotta, pg. 62 ] . Galbraith ‘s celebrity was noticed merely after the Second World War when there was an “ economic prosperity. ” The prosperity did non diminish poorness in rich communities. At this clip, many international corporations were “ emerging as a new influence in economic determination devising ” [ Bolotta, pg. 63 ] .
Galbraith was besides a strong truster of societal balance where he believed that the addition in international corporations brought in excessively many consumer goods such as telecastings and wirelesss but non adequate public goods such as schools, infirmaries and roads. Therefore, Galbraith argued that the “ existent demand in society was for the production of public goods functioning the common good ” [ Bolotto, pg. 63 ] .
He besides fantasized about the visual aspect of corporate directors being the caput determination shaper in a corporation. Besides, he was a truster in authorities intercession and “ ordinance of the economic system would assist better society ” [ Bolotta, pg. 63 ] .
THREE ECONOMIC QUESTIONS
WHAT TO PRODUCE?
The Nigerien authorities is looking to construct societal houses for local citizens. Social places where two households can portion a house, which will utilize up fewer stuffs and suit more people will be deserving bring forthing. The chance cost of constructing societal places for local citizens is constructing one single place for each person, which requires a batch of money and resources. Karl Marx would be a protagonist of this because he was a protagonist of the working category and he would desire the working category to stand up for themselves and demand what they want, perchance governing out the authorities. Galbraith would hold with the local citizens, because he is believer in authorities intercession in economic issues and this so is an economic issue. Therefore, both economic minds will be supportive on the local citizens ‘ side.
FOR WHOM TO PRODUCE?
The entire end product will be shared by the local citizens. The local citizens will acquire the societal places and they will be shared every bit depending on household size. Karl Marx would be supportive of this, because at his clip, the working category were populating in busy streets and he would desire them to hold houses where they can be safe. Galbraith would desire to be supportive of the working category besides, because in himself witnessed some poorness during the boom mid-twentiess so, he will desire the working category to hold a place every bit good.
HOW TO PRODUCE?
The societal places will be built by local builders and sticks, bricks, cement, and H2O will be used to construct the societal places. The limited resource in Nigeria is land so, if they built the houses truly near to each other, they can expeditiously utilize up their land. A batch of mechanization should be used because it is a edifice and a difficult and unafraid alliance is needed to last it for long. Manual labor should be used for simple things, such as fuck. Both Marx and Galbraith will be of supportive to this, because they both are supportive of a safe topographic point to populate.
There are many economic minds who have opinionated on complicated economic issues. But one of the celebrated economic minds to hold quoted a really thought arousing remark is Karl Marx. His quotation mark, “ History repeats itself, foremost as calamity, 2nd as travesty, ” [ hypertext transfer protocol: //www.brainyquote.com/quotes/authors/k/karl_marx.html ] can be greatly linked to the issue at manus. What this is stating is that a since history is merely a repetition of oppressors and the oppressed, it will give a warning and so a prostration. For illustration, in this issue, the local citizens were tired of the Nigerien authorities ‘s broken promises and disagreed with it and changeable angry words at it ( calamity ) and if the authorities does non listen, all of the local citizens will unify and subvert the Nigerien authorities. Therefore, Marx ‘s quotation mark efficaciously ties in with this issue.
James Galbraith along with Karl Marx is a adult male who believes in workers ‘ rights. One of his quotation marks, “ Under capitalist economy, adult male exploits adult male. Under communism, it ‘s merely the opposite, ” [ hypertext transfer protocol: //www.brainyquote.com/quotes/authors/j/john_kenneth_galbraith.html ] is a great illustration to this issue. Galbraith is traveling onto argue that capitalist economy and communism are different things. This can associate to the issue because in a capitalist province, the authorities ( adult male ) is working the local citizens ( adult male ) . Under communism, it is the antonym, which means the local citizens will work the authorities. In this instance, this is what happened. John Galbraith is stating that a capitalist authorities can shortly go Communist.
Harmonizing to Karl Marx ‘s theories, a legion sum of people are likely to be affected. These include consumers, authorities, and employees. Consumers would be affected because the article is stating that the authorities is non interested in constructing the local public places, so, the local populace ( consumers ) will be affected. Besides, authoritiess will be affected if the local public decides to travel the United Nations, because “ Nigeria is portion of the UN ” [ www.un.org/en/members/countryinfo.asp? countryname=nigeria ] . Here, Karl Marx ‘s theories are against the authorities. Employees of the state may or may non be affected because if the authorities decides to construct the populace houses, they will be affected because they are being unemployed, nevertheless, if the authorities decides to construct the populace houses, they are non being affected because they are being employed.
Some of the stakeholders who will be different from that of Adam Smith ‘s theory are consumers and authorities, because Galbraith wants the authorities to be involved in economic issues, to better society. Therefore, this will impact the consumer, because if the authorities decides to non construct the houses, they are being homeless.
Karl Marx ‘s theories did non alter Canada ‘s economic system greatly. In Canada, a batch of workers are respected by the authorities and even when the local populace are disapproving of the Canadian authorities, they compromise. Besides, Marx ‘s labour theory of value is non used in Canada because it will deter consumers from purchasing the merchandises. Therefore, Marx ‘s theories have non made much of a difference in today ‘s society
John Galbraith ‘s theories did assist the Canadian Economic System and it is still being used. For illustration, Galbraith believed that “ more authorities engagement and ordinance of the economic system would assist better society ” [ Bollota, pg. 63 ] . This is used in Canada because the Canadian authorities intervenes in some economic issues. Besides, Galbraith ‘s support for workers has besides been used in Canada by agencies of Pension, and societal public assistance plans. Therefore, John Galbraith has made a important alteration to the current modern economic system.