Imbecile institutions, misguided economic policies, self aggrandizement bane of Nigeria’s development – U.S Don, Dr Enajite Enajero
….Urges FG to create enabling environment for Nigeria’s economic recovery and growth
…..Says past Delta govs failed to develop private sector, solicit investments from abroad
….Wants Oborevwori to clean up Delta State’s reputation, showcase the shores in international arena, attract foreign investors
….Calls on Government to construct pipe water plants in towns and villages across Delta State
….Tasks politicians, business tycoons on investment in Okpe land
By Naomisophyblog
“THE SOCIOECONOMIC DEVELOPMENT IN NIGERIA, PARTICULARLY OKPE KINGDOM”
KEYNOTE SPEECH BY S. ENAJITE ENAJERO, PH.D.(ECONOMICS) AT THE 94TH ANNIVERSARY/ANNUAL CONFERENCE OF OKPE UNION HELD IN LAGOS
The Okpe Union has come a long way from its inception in 1930 and existed long before Nigeria became independent.
This attests to the acumen and enduring socio-political self-awareness of the Okpe people. The Okpe Union seems to be the first ethnic organization in Nigeria, yet Okpe is not identified as a distinct ethnic group in Delta State and Nigeria.
Until recently, the Okpe Union worked collaboratively with the Okpe Monarch for the socioeconomic development of Okpe land.
In fact, the stool of the Okpe Monarch was vacant until 1945, when the Okpe Union worked tirelessly to restore the throne. Ironically, Okpe Kingdom had no monarchs for years due to fears that a new Okpe King would act like its predecessors who were dictators.
Currently, the Okpe Union is split into two factions, and any attempt to reconcile the Union has been elusive.
There are several schools of thought in economics as a discipline––classical economics, Keynesian economics, neoclassical economics, Austrian economics, monetary economics, and institutional economics. Monetary economics is focused on central banking, and this has become a dominant field in economic development after the gold standard was abandoned in 1971 for the U.S. dollar.
Institutions play significant roles in modern societies. Both the Okpe Union and the Okpe Monarch are social institutions. Since the topic for the 94th anniversary/annual conference is centered on the socioeconomic development of Nigeria and the Okpe Kingdom, pardon me if I divert from mainstream economics to a non-orthodox area of socioeconomic development, that is, institutional economics.
What are institutions?
Bush (1987) defines an institution as “a set of socially prescribed patterns of correlated behaviors.” In short, according to Geoffrey Hodgson (2006), “institutions are embedded systems of rules.” Thus, wherever there are rules, there are institutions.
There are institutions within an institution. The government is an institution. The courts, parliament, National Assembly, rule of law, police, military, education, technology, money etcetera are institutions within a government. Traditional values, norms, customs, religion, churches, and mosques have rules and are institutions. What differentiate institutions are the rules governing the institutions. What is their way of thinking, the mode of valuation, rationality, and acceptable norms?
Institutions emanate from values based on beliefs. Beliefs and values are essential structures of institutions. Thus, different countries may practice the same economics, government, education, healthcare, and military, but these institutions’ end-products may differ from country to country.
Why? In institutional economics, institutions are arranged in order: zero-order, first order, and second-order institutions. Zero-order institutions produce ceremonial outcomes, leading to regressive societies, and second-order institutions are the backbone of socioeconomic development.
The first order is the economic order, social structure, and stabilization of rules. Mainstream economics, where 95-98% of economists, including World Bank and IMF economists are trained, believe in a single institution (one rule). That is a single-mode valuation. Meaning, all economic agents are rational, and mainstream economic development models are constructed around the tenet of single-mode rationality.
Institutional economists, however, vehemently disagree with a one-sweeping rationality in a society.
Classification of Institutions
Traditional rulers are carriers of culture entrenched in spirituality (rituals), and along with religion (churches and mosques), they have identical ways of thinking. These are classified as traditional/habitual institutions (zero order). Whereas institutions such as universities, research, technology, unions, governments, etcetera are established for a purpose and empowered to improve the capacity and general social welfare of a group, community, or nation. These latter institutions are instrumental to social changes and are classified as second-order institutions.
Types of Institutions
Thus, institutions are dichotomized into two values: ceremonial and instrumental values or rule-following and purpose-seeking.
Rule-following in the sense their logic relies on unmodified past rules. The logic behind the reasoning for the two institutions is different. The justification or logic behind ceremonialism allows one social class to exercise power over another. The logic is one of “sufficient reasons” that has not been “tested and refuted” (Bush, 1987) in any scientific or convincing way.
“We do things this way because our forefathers did it this way.”
Our forefathers lived in a time when there were no lamps, electricity, calculators, vehicles, airplanes, computers, internet, or Google, and you want to do things their way?
The herdsmen in Northern Nigeria, for example, are running around the bushes killing farmers and raping the women. The logic behind this behavior is, “We do this because our religious leaders did it in the 17th century.” Ridiculous! Or we do things this way because “God says so.”
The mode of valuation for zero-order institutions is fixed; it does not change. If economic development arises from institutional changes (habits, norms, values), as shown below, zero-order institutions will not be the answer. Zero order institutions are accepted based on their “ceremonial adequacy.” (Bush, 1987; Redmond, 2004)
The second mode of valuation in the institutional space is instrumental values.
This mode of valuation requires deliberative, methodological, and calculative actions in which relevant knowledge, tools, and skills are applied in the problem-solving process of a community or nation. This mode of valuation, unlike the ceremonial mode, is not fixed; it is subject to changes through scientific enquiry and technological development. New sets of behaviors and habits must change to adapt to new technologies.
The dynamic problem-solving processes inherent in instrumental value change the habits and behaviors of the community or nation. Therefore, economic development is a consequence of changes in the habits of thought (Veblen, 1919)
Table 1 – Dual Rationality
The institutional space of every society is dichotomized into ceremonial and instrumental rationality, which is dual-mode rationality, compared to mainstream economics, which assumes “rational choice,” is a single-mode rationality.
Type
Ceremonial Institution
Traditional/Habitual,
Religion,
Instrumental Institutions
Education, Government, Technology, Rule of Law, etc.
Mode of Valuation
Rule following, committed to the past, pre-scripted, or routinized behavior.
Apply relevant knowledge, skills, and tools.
Calculative deliberative, purpose seeking
Cognitive Effort
Effortless
Durability
Considerable effort
Invariable (fixed)
Classification
Ever changing and dynamic
Zero-order
Development outcome Regressive society
Second-order
Progressive society
Table 2 – Dialectical Value Structure of a Community/Nation
Due to the dialectical value structure of institutions, just like in languages, there are four possible scenarios (feasibility), as shown below.
Instrumentally Feasible
Instrumentally Non Feasible
Ceremonially Feasibility
Both Ceremonial and Instrumental behaviors are in the community.
All Ceremonialism and no Instrumental behavior
Ceremonially Non Feasible
Instrumental behavior exists, but no Ceremonial behavior in this community
Cell 1 – Sector of ceremonial encapsulation.
Both behaviors are present. Social progress depends on which behavior dominates.
We apply the Index of ceremonial dominance as a measure of ceremonial encapsulation. If the index of ceremonial dominance greatly overshadows existing instrumental thinking, communities and society will remain underdeveloped.
Cell 2 – This is the best of all worlds. There is no ceremonialism. Only instrumental thinking exists in the community or nation. These nations are progressive.
Cell 3 – This is the worst-case scenario known as the Lysenko effect. In a community where instrumental thinking does not exist, all ceremonial behaviors hinder innovative thinking and technological progress. In this cell there will be no socioeconomic development. Veblen (1919) refers to this cell as the “absolute triumph of imbecile institutions over life and culture.”
Why are ceremonial values more dominant in societies? It is due to the structure of the human mind. The brain is comprised of long-term and short-term processing memories. According to behavioral psychologists, it takes 5 to 10 seconds to transfer information from short-term to long-term memory, but it takes only a fraction of a second to recall information from long-term memory (Redmond, 2004).
In Europe, the separations of ceremonial and instrumental values date back to 500 AD through 1700 AD. The period could be divided into the Dark and Middle-Ages. The Dark Ages witnessed feudalism, sorcery, witchcraft, rituals, mystical powers, and superstitions. These practices were a common way of life across Europe.
Concerted efforts were made to exterminate these behaviors and replace them with instrumental values. European leaders recognized the barriers these habits placed on scientific enquiries.
It took three stages:
First, Christianity initially eliminated ceremonial practices through ex-communication and persecution, and later by Parliamentary Acts. The Acts made witchcraft, and other pagan practices punishable by death through execution and burning (Wikipedia, n.d.).
Second, however, the church that assisted in ending paganism, as those practices were referred to, suffered its fate in the Middle Ages during the movements to separate secularity from spirituality.
Third, this was followed by a series of social revolutions aimed at aligning the desires (ceremonial behaviors) of the peasants and wage earners with the national objectives (instrumental behaviors) of the upper class.
The Church in Europe was a symbol of spirituality, and the monarchy was a vestige of traditional European values. Both should not interfere with scientific thinking and the secular schemes of things. History indicates that it was a tough battle in England and Rome. The church was ultimately separated from science and secular issues; the monarchies were relegated and restricted to their palaces to play ceremonial roles.
Therefore, one would not be wrong to conclude that the strong European influence in the world today should be credited to the displacement of ceremonial rationality in their culture.
Many of these ceremonial values “displaced” by Europeans and elsewhere in the Dark and Middle-Ages are still prevalent and visible in Africa in the 21st century. For example, during the colonial days, the British governed Nigeria via “indirect rule” (Natufe,1984). That is, governing through the local Emirs, Kings, and Chiefs. The colonial authorities meant no “double standards” (displacing traditional values at home but using them in the colonial territories). The method was intended to make the British authorities look authentic at the grassroots in Nigeria.
However, the main responsibility of local Kings and Chiefs is to promote and sustain traditional values in their domains. The Kings and Chiefs are the roots of ceremonialism (traditional values, several local religions, and two competing imported religions) heavily entrenched in the long-term memories of the educated and uneducated indigenes. Indirect rule resulted in a complete ceremonial encapsulation of every instrumental institution Nigeria inherited from Britain. Therefore, behaviors of politicians, government officials, military, scientists, educators, and managers in the country are heavily adulterated, such that instrumental institutions in Nigeria do not thrive.
Table 3 – Countries with Displaced Ceremonial Values
Country
Ceremonial Values
Restrictions
Australia
Aborigines
Result
Restricted from
mainstream society
Brazil
Indigenous People
(305 tribes)
Developed
Amazon Rain Forest (274
languages).
Britain
Paganism,
Churches, and
Monarchs,
Developed
Paganism was destroyed.
Churches & monarchs were not part of secular scientific sector.
Developed
United States
Singapore and other Asian Tigers
Native Americans^ Live in reservations to practice ceremonialism, Buddhism, Hinduism, Islam, Christianity, etcetera
Neutralized through grassroots economic policies.
Developed
Developed
Nigeria
Monarchs, Churches, Islam, Voodoo Priests
No separation from the secular sector. All are active in mainstream society.
Under developed
I must say that the modern British Monarch is not completely ceremonial. The British Royal Family symbolizes virtues, glamor, acceptable protocols, mores, and spectacles. If emulated by the public, these behaviors become public goods.
Moreover, the Royal Family attracts visitors to Buckingham Palace, Windsor Castle, among others, and these have become tourist attractions that generate, on average, $715 million per year for the U.K. economy. The Royal Family is resourceful and instrumental in the U.K., yet there are cries among the Brits for it to be abolished.
How much do myriads of monarchies in Nigeria generate? I am not saying the countless Nigerian monarchies should be stripped of their titles. However, their role in secular society, if any, should be made clear.
Under institutional economics, development does not rely on past behaviors; it requires changes in habits and values. One could argue that habits and values change because of economic development. The counter argument is that habits and values cannot change if they are stuck in the past. Technological innovation is a problem solving process that exposes further problems. For example, The United States’ Central Business Districts (CBDs) were heavily congested at the turn of the 19th century.
The suburban communities emerged, which exposed another problem––the time it took to commute to the CBDs using horse-pulled carts. An entrepreneur developed a gasoline powered internal combustion engine that resulted in a new era of vehicle transportation industry. Freeways and highways were constructed so that cars could reach their destinations faster. Other vehicle-related technologies surfaced including safety issues.
Yet, another problem emerged––the destruction of the ozone layers by vehicle emissions. To solve the problem of emissions, electric vehicle (EV) technology was developed. Why can’t Nigeria acquire technology and development by solving visible food shortage problems, housing construction, security, education, etcetera? To solve social problems, people must be instrumental.
Table 4 – Economic Development and Technological Innovation
MODEL
INSTITUTIONAL ECONOMICS
MAINSTREAM
NEOCLASSICAL ECONOMICS
Theoretical Framework
Habits
Psychology and Sociology Mathematics & Biology
Acquired and Modifiable
Economic Behaviors
Biological and invariable
Dual-Mode: Ceremonial and Instrumental
Technology Acquisition
^A Single mode: Everyone is Rational.
A problem-solving Process that exposes further problems
Economic Development
Change in Habits
Human capital through Education and R&D
Accumulation of capitals including borrow and spend.
Index of Ceremonial
Dominance
HIGH: Regressive Society
LOW: Progressive Society
No ceremonialism: everyone is Instrumental
Of course, after spending sixteen centuries destroying ceremonial beliefs and practices, and mopping up the remnants with a stringent rule of law, such societies could comfortably embrace development models centered on a single-mode rationality.
Ceremonial Encapsulation
Two Types of Ceremonial Encapsulation that retard economic development in Nigeria are Past-Binding and Future Binding.
In past-binding ceremonial encapsulation, the existing value systems are a source of pride that binds a community. There is every attempt to preserve the existing ceremonial values because they support a distinct symbol of the community.
Traditional values, ethnic competition in the use of resources, suppression of women in communities, and religious beliefs exemplify past-binding ceremonial encapsulation in a society.
Let’s bring this to light. The presence of religious extremism in Nigeria under the logic that their leaders behaved the same way in the 17th century, his followers must practice it today, are instances of past-binding ceremonial encapsulation. The entire small-scale farming industry in Nigeria is paralyzed by actions of these groups.
Future-binding ceremonial encapsulation seeks to maintain control over a community or a country grabbing power, and steering development policies in their desired direction. Northern Nigerian religious zealots in the last administration steered development programs away from their true path. In addition, the misguided economic practices introduced in Nigeria since independence that are unsuitable in its stage of development and resulted in one failure after another are examples of future-binding ceremonial encapsulation. I referred to this in my earlier paper as “economic misnomer.”
Ceremonial Behaviors in Delta State and Okpe Nation
Delta State is a microcosm of the entire Nigeria speaking about ceremonialism.
Since 1993, when the state was created, successive state governors’ objective was only to set up projects and universities in their villages with disregard for locations and duplication of programs. This has resulted in the inefficient use of state resources. The only reason behind locating projects in hometowns is the adoration and exaltation by home folks to the detriment of other places in the state. This ceremonial habit will continue until, hopefully, every clan and village has a university.
To make matters worse, the successive governors of the state are focused only on revenue allocations from the federal government. They ignored the fact that an economy is comprised of the public and private sectors. The private sector, if properly tapped, would generate substantial economic activities as well as provide employment for Deltans compared to the public sector.
All successive governors of the state failed to aggressively develop the private sector or solicit investments from abroad (Europe, the U.S, Arab nations) that could create jobs and hopes for the graduates of these universities.
Nonetheless, it is now incumbent on the current governor to clean up the state’s reputation before embarking on such an endeavor of soliciting foreign capital. The international communities have not forgotten the activities of MEND, replicated by incessant kidnapping, bandits, and robberies. The recent murders of 17 soldiers in the state revealed that cleaning up the state’s image would require a bold, calculative, and relentless effort that would assure potential investors that Delta State is open for business.
State resources include water, land, and the people. We have a beautiful Atlantic coastal line in the state. If the federal government failed to utilize the deep seaports due to ethnic marginalization, the state administration could adequately showcase the shores in the international arena and make it attractive to private investors.
Sapele waters lie in waste, because successive governors, including champions of “Urhobo Ovuovo,” saw Sapele, giggled, and looked away.
Furthermore, I am an acquaintance of several Deltan chemists and engineers who worked and retired in city water plants in the U.S. They would be willing to advise the governors on what is involved in the construction of pipe water plants in towns and villages across Delta State. State resources are more than federal allocations. They include domestic and Diaspora technocrats. Governors can reward party chieftains with public positions. However, they need scientists and technocrats locally or abroad to develop the state. For the past three decades, China, India, and the Arab world, benefited wholesomely from their citizens in developed countries. Nigeria does not take advantage of its vast reservoir of human resources abroad.
On top of ceremonialism that dominates and strangulates instrumental behaviors in Nigeria, plus ethnic-focused projects in Delta State, Okpe land has local institutional problems.
Most daunting is self-aggrandizement among Okpe politicians. Consider, for example, how many federal projects and educational institutions have come to Okpeland since the State was created in 1993? Zero. Whom to blame? While everywhere in Delta State is dotted with federal projects through the hard work of their representatives, their counterparts from Okpe Kingdom believe once they visit the Palace and pay homage to the King, they have completed their responsibilities and obligations to the Okpe people. This is the epitome of ceremonial behaviors. Okpe people sent you to Asaba and Abuja to negotiate, vigorously engage in political maneuvers and win projects for Okpeland. Besides, what happened to the Sapele Polytechnics? It is left in ruin. I hope the Orerokpe School of Social Science is not viewed as a solace or a substitute for the Sapele Poly!
Overall, ceremonialism has overshadowed our minds in Nigeria and the Okpe Kingdom.
The three economic players––leaders, entrepreneurs, and consumers––have become ineffective. Leaders failed in governance because of my-village-first philosophy.
Our Okpe elites cannot be entrepreneurs and set up businesses that could employ the youths, because one must be purpose seeking, deliberative, and calculative to be successful in business. We cannot even be consumers owing to complete devotion to past habits. We consume foods our forefathers consumed and not due to their nutritional contents.
Read Also:Kano govt orders police to remove deposed Emir from mini palace
Ceremonial behaviors have brought poverty to the land. The leaders, the elites, and the commoners will learn to separate Ceremonial from instrumental values like many other nations, or we must purge ceremonial habits from our long-term memory and acquire instrumental behaviors to attain sustainable development in Nigeria and the Okpe Kingdom.
I thank the Okpe Union for the opportunity to express my views.
