Retain profits in the Namibian economy
Namibia is crying today because our economic policies are at times too diplomatic. A perfect Independence Day endowment would be a policy that will shake Namibia’s wealth bag so that all Namibians may eat and live above the poverty line.
There is no doubt of the urgent need for Namibia to introduce aggressive economic policies that will drastically improve the livelihoods of Namibians.
This article advocates for the introduction of a policy that mandates companies to reinvest profits in various industries that will boost employment creation and reduce inequality in Namibia.
As we may all be aware, many of our challenges today can be attributed to Namibia’s historic colonial past, starting from the German occupation, through apartheid to the current geopolitical neo-colonist system.
As we celebrate independence may we be reminded that we are a sovereign nation now and we have the power through parliament to make policies that are beneficial for Namibia and her future generations.
Over the years, Namibia has suffered, and many Namibians continue to suffer from the reverberations of our past. However, at the same time, a few Namibians and non-Namibians within and without our borders benefitted and continue to benefit from the current and past systems, most of the time unfairly for argument’s sake; supported by the extremely high inequality rates. This situation has caused the inequities that we experience today.
These inequalities continue to disintegrate our unity as a nation and are beginning to threaten our peace and stability. Although peace and stability have benefitted us all, it continues to profit the bourgeoisie far beyond what we can imagine. Contrary to popular belief, even politicians especially those from poor backgrounds are not benefiting lucratively from our peace and stability.
The reality is that Namibia has billions of dollars in private wealth, these monies, however, belong only to a handful number of the population shooting the Gini coefficient for Namibia to a high of 59.1 (World Bank, 2015) towards perfect inequality. The rest of the wealth generated in Namibia is exported to other countries to the owners of the means of production; the government is then left with little money from taxes and royalties to address socio-economic challenges.
Inequality and economic depression can be addressed using wealth generated from the country by introducing wealth-retaining policies.
The proposed policy will ensure a percentage of profits (wealth) generated in Namibia undergoes a reinvestment cycle into a priority area that would reduce inequality and address social-economic challenges.
Attempts to force the bourgeoisie to share the means of production have proved to be ineffective; therefore, we should rather compel them to reinvest the profits generated from the sweat of the Namibian proletariat.
An example of this concept would be if a bank in Namibia declares N$100 million in profits, 30% of that should be reinvested in a specific area such as agriculture or technology.
Here the government would be saying well congratulations on earning some profits in our country, however, we need to hold onto some of that money and give you another opportunity to make some more profits from it provided that it creates additional jobs and helps us deal with some social sector issues.
This is also a question of the morality of capital (some monopoly capital), where entities are proud to announce hundreds of millions in profits in a country with such high unemployment and inequalities. This policy is premised on the moral compass of the need to share in the spirit of Ubuntu.
The proposed policy will help to create jobs and reduce unemployment in Namibia. By requiring companies to reinvest a portion of their profits, the government can encourage the creation of new businesses and the expansion of existing ones. This, in turn, would lead to a drastic reduction in unemployment, as more people would be able to find work.
Additionally, this policy would help to ensure that companies operating within Namibia contribute to the country’s overall development. Currently, many companies take their profits and invest them in other countries, which can drain resources and talent from Namibia.
By requiring companies to reinvest their profits within the country, the government can ensure that these resources and talent are used to support the development of Namibia.
Well, of course, this proposal calls for tough decisions to be made and there might be some form of opposition, however, we are Africa’s favourite child; we can get away with it easily and will be hailed the world over again for our outstanding policies just as it is the case with our constitution.
Moreover, this policy would also encourage innovation and competition within the country. By compelling companies to invest in sectors that will boost the economy, the government can create an environment where companies are motivated to find new and innovative ways to grow their businesses. This, in turn, would increase competition and drive innovation, which would benefit the entire economy enormously.
Finally, by introducing this policy, the Namibian government can help create jobs, contribute to the country’s overall development, and encourage innovation and innovation competition. This policy will have far-reaching benefits for the country, its people, and future generations.