POLICY ON SOCIO-ECONOMIC TRANSFORMATION
1.1 Introduction
Being a National Trade Union Centre in an African country, the Association of Senior Civil Servants of Nigeria must play an active role in the transformation of the society. We want to see a Nigeria that is stripped of its industrial backwardness, mass poverty, illiteracy, the collapse of health and social services and institutions, foreign economic dependency, gross exploitation of labour, and political dictatorship and instability.
The thrust of ASCSN policy on socio-economic strategies therefore would underline the need to ensure that economic and social policy target wealth generation aimed at meeting basic and broader needs of citizens, promote common prosperity, entrench culture of social solidarity, redistribute wealth, income, assets and power for the benefits of all.
We want to see and shall work towards a functioning planned and performing economy. Nigerian economy once had growth rate that averaged six per cent (6%) during the first decade of our independent life as a nation (1960 – 1970). The Association shall contribute to efforts towards returning Nigeria back to the path of consistent economic growth, development and national planning, which was abandoned in the wake of the IMF and World Bank sponsored Structural Adjustment Programme (SAP) in the mid 1980s. The economy barely operates at 1.6% annual growth rate, which is less than annual population growth rate of about 2.5% in the 1990s.
We envision an economy founded on twin-pillars of state-led industrialisation and agricultural development within the context of wholistic national development plans. In the most recent past, on account of national planning, manufacturing productive activities transformed major industrial centres such as Lagos, Kano, Ibadan, Kaduna, Port Harcourt and Benin.
We want to see a revived Nigerian economy that overcomes the present industrial stagnation, collapse of industries, mass unemployment, job-losses, collapse of social infrastructure due to lack of planning, mismanagement, visionlessness, corruption and poor leadership.
Association socio-economic strategies, therefore, would take into account the growing need to adopt a more participatory approach, which will involve identification of specific policies that should be pushed by representatives of Association in dealing with government, employers and other social, economic and political actors. Participatory strategies mean processes of consultation that involve convening appropriate organs where specific discussions of policy matters are identified and decided.
1.2 Policy Framework
We envision an economy that is composed of state, private and social sectors. The state must play an active role in encouraging investment through appropriate macro-economic policies and provision of infrastructure. In addition, through appropriate fiscal and monetary policies, transparent and accountable public accounts, the state should exert a tremendous influence on the economy. Property relations must be transformed as to favour working men and women, entrepreneurs and genuine investors as distinct from the existing rentier, compradoral, corrupt and parasitic class. To this extent key socio-economic strategic sectors must remain in public hands. These sectors are: 1. Education 2. Health 3. Energy 4. Communications 5. Land/Water 6. Social Security 7. Road development 8. Policy/Security
In achieving these, our socio-economic policy framework would, therefore, have the goal of:
· Empowering trade unions to participate actively in policy formulation and implementation through assertive social dialogue on socio-economic matters. · Demanding appropriate economic policies to speedily and effectively arrest the current economic crisis facing the nation. · Enthroning an action agenda that will focus on key macro-economic policies of government on employment creation and protection, guarantee a just and fair living wage, strengthen the nation’s currency, eradicate poverty, ensure price stability, skill acquisition, and motivate the workforce for improved productivity. · Empowering relevant sections of civil society to play active roles in all existing productive platforms hitherto dominated by the public sector. · The thrust of ASCSN policy will also be to: · Advocate stoppage of irrelevant projects of government. · Support full and timely implementation of relevant projects. · Ensure the engagement of well qualified personnel and organisations in the execution of government projects. · Ensure that development goals are driven by patriotic objectives. · Ensure that government control key sectors of the economy. · Monitor development objectives.
Based on the recognition that the primary mandate of Association is to uplift the working and living conditions of workers, the mechanisms for the realisation of the above stated goals shall include: I. Monitoring Key Economic Indicators
Association shall, through its research unit, monitor key economic indicators. These economic indicators shall cover cost of living indices such as inflation, exchange rates, employment levels, consumer prices, income distribution, sectoral performances, etc. Also, macro-economic aggregates related to fiscal policy, industrial policy, international trade, etc., shall be monitored. Independent findings of Association shall provide the background for yearly budgetary proposals and wider negotiations on policy directions of the economy.
II Specific Sectoral Monitoring To boost the negotiating power of Association and its affiliates, Association shall undertake a comprehensive survey of all sectors of the economy on a periodic basis. In this regard, Association shall provide base capacity for affiliates to meet their sectoral survey needs for the purpose of collective bargaining.
III. Establishment of Statutory Tripartite Negotiating Body
Association shall seek to institute an annual statutory tripartite body towards the formulation and implementation of broad macro-economic policy. This body, comprising all the stakeholders mainly, government, employers and labour, may be referred to as the National Advisory Council on the Economy.
IV. Active Participation in all Statutory Bodies
Association shall actively participate in all statutory bodies on the economy with a clear mandate and a proper report back mechanism. These bodies include the National Prices, Incomes, Salaries and Wages Commission, Nigerian Social Insurance Trust Fund, Education Tax Fund and all similar bodies vested with the mandate of undertaking or planning development strategies.
V. Strengthening International Solidarity for Economic Development
International solidarity shall be pursued in order to meet increasing challenges associated with globalisation. In this context, international solidarity shall serve to build capacity of Association and its affiliates to match the increasing sophistication of capital and managerial skills through intensive training for union members and officials at all levels. 1.3 Some Specific Policy Direction
The position and policy direction of the Association with respect to key issues in the economy and society are as follows:
I. Employment
The Association believes that the people must remain both the agent and ends of economic development. In that context, national development priorities must focus on the protection and creation of employment. National economic performance should be assessed in the context of the provision of viable employment for Nigerians; it should not be just a question of monetary index of growth assessment. Viable employment will mean expansion of employment, productivity and wages. The Association, through advocacy, shall insist on key macro-economic policies, which will ensure employment creation and retention. Economic policies should:
· Ensure that the parameters of fiscal policy are consistent with employment creation and retention strategies. Government will be encouraged to avoid imposing rigid and rapid deficit reduction targets, which limit public expenditure and infrastructural development that in turn lead to public sector job losses and job rationalisation. The task of rebuilding Nigerian economy and social infrastructure (education, health, etc.) calls for greater employment creation and retention and NOT retrenchment and jobs’ rationalisation. · Maintain and expand demand for domestically produced goods and services, which will generate employment. · Meet increased demand through an expansion of the productive capacity of the economy, which in turn would generate new jobs. · Stimulate demand by lowering interest rates, pursuing redistributive fiscal policies and developing effective strategies to boost exports. · Create an environment conducive to boosting productive capacity of the economy. Increase state-led investment to ensure that increased demand can be met through domestic production, and not through import goods.
II. Social Security
The social security policy of Association for Nigerian workers shall cover issues of pensions and general welfare programmes. In the case of pensions, Association policy shall be based on the principle that the minimum shall not be less than the existing national minimum wage. With regard to the private sector, Association shall strive to have an effective role in the activities of Nigeria Social Insurance Trust Fund (NSITF). Association will ensure that social security schemes such as NSITF are managed by contributing workers as it is done worldwide. Moreover, Association shall advocate for the conversion of NSITF to Universal Social Security Agency catering for contributors and non-contributors such as the sick, the under-aged, the aged and the unemployed.
The ASCSN shall campaign for social security policy to cover the welfare of the unemployed, the under-aged and the aged.
III. Education, Health and Housing
In the post-colonial decades, Nigeria’s social indicators were generally promising. There were systematic efforts to increase the level of school enrolment, increased budgetary allocation to education, which in early 1960s averaged 50% of the then regional budgets. It is a tragic commentary that this earlier social development effort was reversed and abandoned. Today, half of Nigerian population is illiterate compared to 40% in Ghana, 33% in Zimbabwe, 23% in Indonesia and less than 20% in Brazil and Mexico. Over 20% of children between ages 6 and 11 are today not enrolled in schools.
The health service is extremely poor. Public hospitals are barely functional. Private healthcare, is out of the reach of most Nigerians. This is largely because the direction of state policies has been towards using Nigeria’s wealth for the welfare of workers and other exploited classes of Nigerians. In the area of housing, there is no coherent housing policy in the country. Workers have been forced to pay into the Federal Housing Fund, which gives them nothing in return. The state governments have not provided affordable houses for the people.
From the welfarist ideology of the immediate post-independence days, the Nigerian state has moved to an ideology of anti-welfarist ideology sponsored by the World Bank and the IMF. Yet, without sound education, healthcare systems, and without providing decent houses, the base of development will be destroyed.
Therefore, the ASCSN will: · Advocate and lead the struggle for qualitative and free education at all levels for Nigerian children. · The ASCSN shall press the Nigerian governments to provide adequate funding for education at the elementary, secondary and tertiary levels. · The ASCSN shall struggle to remove class barriers from the accessibility to education to Nigerians. · The ASCSN shall strive to ensure that the content of education is in accordance with the needs of Nigeria. Education shall not be controlled by the interest of international finance organisation. · ASCSN shall advocate the development of all levels of education, in the interest of the country. ASCSN shall discourage the privatisation of education, as this will drive the children of workers and the poor out of the education system.
In the area of health, the ASCSN shall pursue the following policy objectives:
§ ASCSN shall press for the provision of healthcare for citizens. § ASCSN shall advocate for adequate funding for health. § ASCSN shall call for an entire revamping of the healthcare system on welfarist basis. § LC will advocate strong emphasis on preventive care. § The health insurance of workers shall be pursued. Every Nigerian child and adult must be kept healthy.
ASCSN shall pursue the following policy objectives in the area of housing: · ASCSN shall press for the building of affordable houses for workers by both federal, states and local governments. · ASCSN shall push for equitable loans system for workers who want to use such loans to build houses.
IV. Welfare
Association shall insist on government’s responsibility to provide social welfare services and amenities. Government responsibility shall cover human development and training, provision of credit facilities, the provision of certain social services such as health, education and transport, electricity etc. V. Inflation
The problem of inflation is endemic. Government programmes targeted at reducing inflation level have consistently failed. Fiscal indiscipline on the part of government has been identified as one of the factors responsible for failure of policy measures to reduce inflation. Association policy on inflation therefore shall seek to enthrone fiscal discipline through active participation in budget formulation, monitoring and evaluation.
Nigeria is a classic case of a situation where a large section of the money class arrived at its wealth without hard work or entrepreneurship. This has implications for good governance, transparency, political stability and the evolution of a just and fair incomes policy. This is further compounded by the well known phenomenon that while Nigerian workers and the poor pay taxes, the rich and money class pay either very little or no taxes. Association shall pursue a policy that guarantees wealth through hard work and entrepreneurship while also ensuring that direct stealing of national resources is eliminated. Association will also pursue income policy that shall lead to a regime of socially defensible income differentials in the economy. Also, Association shall insist on appropriate policy measures that will target the elimination of unearned income in the economy, particularly those associated with graft, currency speculation and inheritance.
The current wage levels in the economy have not matched the incomes of workers in terms of purchasing power and its US $ equivalent which for the legal minimum wage was about US $200.00 in 1981. The policy of Association on wages shall focus on the need to institute a just and fair living wage for all Nigerian workers. The initial stage shall be to raise the real value of wages of each worker to a level that will ensure that Nigerian workers can live a decent life. Thereafter, a wage policy that enhances the standard of living of each Nigerian worker shall be vigorously pursued. This will include a policy of wage indexing while protecting the jobs of workers.
ASCSN shall seek the review of tax laws to address issues of tax evasion. NSITF and other allowances should be included in free pay allowance code to reduce tax burden of workers.
VIII. Prices
Price levels in Nigeria today are more a function of speculative activities by market actors than costs related to production activities. This has resulted in varying degrees of distortions in national income accounting. It also encourages the current inflationary trend in the economy, which depreciates incomes, particularly wages. Association' policy on prices shall therefore be targeted at eliminating the speculative activities of marketers, which now dominates the economy.
Association shall oppose the current orthodox laissez faire approach to prices based on a domineering market economy. Association shall fight for price control as a strategy for stabilising prices. Specific characteristics of the Nigerian economy must be taken into account as well as set development objectives.
IX. Exchange Rate
The current Naira exchange rate is more a reflection of pressure from Nigeria's external creditors. The rising rate of depreciation of the nation’s currency in relation to other international currencies is unacceptable. Association shall therefore press for an exchange rate regime that will guarantee both comparative advantages for local industries as well as protect income levels of Nigerians. Specifically, Association shall press for an exchange rate that is based on the principle of purchasing power parity of currencies. Association shall promote policies that will seek to abolish parallel markets.
X. Protection of Local Industries
The current wave of trade liberalisation, if not moderated, will destroy our local industries and marginalise the country in the global economy. Being the largest market in the sub-region necessarily attracts international competitors, which, if not checked, will undermine local industries. Association policy in this regard shall be to enthrone policy measures that will protect local industries through appropriate fiscal measures.
XI. Agriculture
The importance of agriculture in national development lies in the vital need of the nation to feed its people. The development of agriculture must be based on the following principles: · Agricultural production must be organised to meet the needs of the people. · Agricultural production must be encouraged in all parts of the country. · The integration of agricultural production must be promoted. · Agricultural production shall not be dominated by few. · The interests of farmers and farm workers must be protected. To achieve these principles, the ASCSN shall undertake the following actions: · The ASCSN shall produce a blue-print for the agricultural development of Nigeria. · The ASCSN shall link up with the various groups involved in agriculture to protect the interests of Nigeria’s development. · The ASCSN shall unionise all workers in the agriculture sector. · The ASCSN shall struggle to prevent a situation where Nigerian workers produce agricultural goods that Nigerians can not afford.
XII. Poverty Eradication
In the immediate past, government and its organisations have proclaimed commitment to poverty alleviation. The truth has been that the more claims are made and organisations created, the higher is the incidence of poverty. Association is committed however, not just to poverty alleviation but mainly to poverty eradication. The policy of Association on poverty eradication shall be linked to the ILO framework of creating income-earning opportunities to citizens.
XIII. Debt Crisis
Association' approach to the debt crisis shall be first and foremost to verify the current level of indebtedness. It is sad that Nigeria pays huge amounts by way of debt servicing without verifying the authenticity or otherwise of these debts. As a policy framework, Association shall insist that all future debts servicing must target verified debts.
Also, given the gravity of the debt problem, which makes economic recovery impossible, Association shall support the global coalition, under Jubilee 2000 initiative, for the cancellation of all African debts.
XIV. Recovery of Looted Funds
Association shall campaign for the recovery of looted funds.
XV. Deregulation and Privatisation
The current civilian government is committed to the capitalist path of development; the economy is to ‘be market oriented and private sector-led’ and made ‘competitive internally and externally’. This commitment to a market driven economy has translated to such policies as privatisation of public enterprises and attempted deregulation in the petroleum sector. These have adverse implications for employment, prices and public welfare.
The official policy is to divest over
Association maintains that there shall be no divestiture in the strategic sectors of the economy, namely petroleum, water, education, health and social security. Where privatisation proves inevitable, the process must be transparent, participatory and accountable with the emphasis on the need to protect jobs and benefits of the workers in the affected enterprises.
XVI. Globalisation
Globalisation has come with larger and more powerful multinationals as major players, casualisation and mass retrenchment of labour, elimination of local industries in the developing countries, the weakening of national governments, trade liberalisation and the economic, political and cultural domination of the “third world” countries. For the workers and the poor in general, it promises hardship and deeper levels of poverty. Association, in its efforts to mitigate the negative effects of globalisation, shall, among other things:
Counter globalisation from below through;
building solidarity with trade unions, environmentalists, human rights and other civil society organisations across the globe for the purpose of curtailing the powers of multinational companies;
§ action and policy initiatives that expose the dangers of the programmes of global finance capitalist institutions such as the IMF, World Bank and World Trade Organisation; § action and policy initiatives that enhance the capacity of Nigerian workers in particular and the Nigerian people in general to resist and defeat the meddlesomeness of Bretton Wood institutions (IMF, World Bank and world Trade Organisation), a meddlesomeness that is achieved with the active collaboration of the Nigerian state; § mobilising, training and re-training its members to enable them meet the challenges of modern technology and globalisation; § fighting for wage parity between Nigerian workers and their counter-parts in the same industries in the advanced countries; § campaigning for an industrial policy that would enhance Nigeria’s economic comparative advantage; § working for an urgent programme of universal computer literacy to enable the country take advantage of information and communication technology. In this connection, Association shall urge government to invest heavily in the computer and communication industry so as to make Internet and telephone services available and affordable to a vast majority of Nigerians; § actively defending the right of each Nigerian to full employment, qualitative and comprehensive education, health care, water, electricity, adequate housing, good roads, a comprehensive rail network and provision of essential infrastructures;
3.4 Trade and Industrial Policy
Association will insist that the fundamental objective of industrial policy should be a significant increase in the number of quality and sustainable jobs as well as full employment.
Industries, which are labour intensive and can serve as engine for job creation will be identified by Association. Campaigns will be intensified for the protection of these labour-intensive industries namely agro-allied, furniture, construction, textile, food and beverages and service sectors.
Association objective in regard to international trade will seek to ensure that trade contributes to full employment and fair labour standards in all countries. To this extent, Association will campaign for the review of Nigeria’s membership of WTO, which has adversely affected domestic industries leading to mass job losses through dumping of relatively cheaper goods without corresponding market access by Nigerian goods.
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