What is it that we don't seem to understand?
According to newly released figures, the world economy had a record year in 2017. Following on that, stock markets around the world had their best start to a year for a long time at the beginning of 2018.
Even allowing for a time lag of six to 12 months, what is the difference between the economies in the rest of the world and Namibia's economy, for instance? What is it that makes some economies highly successful and others barely able to rub together two dollar pieces? A good indication might come from how ratings agencies perceive this:
Even though our government and ministers enjoy criticising ratings agencies and their outlook and projections for Namibia's economy, as a favourite way to pass the time and deflect attention from the fundamental issues, these agencies are just doing a job and fulfilling a vital function - doing clinical analysis and evaluation of neutral data and information and then making recommendations (mainly for investors) - this is hardly a crime against humanity.
The biggest issue the ratings agencies seem to have with Namibia is its government's handling of the economy and the impact this has on its ability to pay back debt in the future. Chief among these is the way that the state coffers are being perceived and treated as a private cash machine with unlimited funds for selected members to use if, when and how they seem fit. The ratings agencies know this is unsustainable in the long run and adjust their ratings accordingly, thereby enhancing and accelerating this vicious cycle of decreasing access to credit facilities and higher interest rates.
This essentially means that the state as the biggest employer can at the same time also be the biggest destroyer of wealth, economic activity and welfare.
So what's the overriding message in all of this? Quite simple: Stop wasting money and stop stealing. The more you steal now, the less there will be to steal in the future. It has gone far beyond the point of thinking about your own stomach and not caring about anything else. This is about the very survival of a country and its people!
Even allowing for a time lag of six to 12 months, what is the difference between the economies in the rest of the world and Namibia's economy, for instance? What is it that makes some economies highly successful and others barely able to rub together two dollar pieces? A good indication might come from how ratings agencies perceive this:
Even though our government and ministers enjoy criticising ratings agencies and their outlook and projections for Namibia's economy, as a favourite way to pass the time and deflect attention from the fundamental issues, these agencies are just doing a job and fulfilling a vital function - doing clinical analysis and evaluation of neutral data and information and then making recommendations (mainly for investors) - this is hardly a crime against humanity.
The biggest issue the ratings agencies seem to have with Namibia is its government's handling of the economy and the impact this has on its ability to pay back debt in the future. Chief among these is the way that the state coffers are being perceived and treated as a private cash machine with unlimited funds for selected members to use if, when and how they seem fit. The ratings agencies know this is unsustainable in the long run and adjust their ratings accordingly, thereby enhancing and accelerating this vicious cycle of decreasing access to credit facilities and higher interest rates.
This essentially means that the state as the biggest employer can at the same time also be the biggest destroyer of wealth, economic activity and welfare.
So what's the overriding message in all of this? Quite simple: Stop wasting money and stop stealing. The more you steal now, the less there will be to steal in the future. It has gone far beyond the point of thinking about your own stomach and not caring about anything else. This is about the very survival of a country and its people!
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Namibian Sun
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