The key to prosperity depends more on private sector
By Petrus Haikela Hanghuwo|
When we take time to go around and take a tour of our communities, we see a huge gap between the rich and poor. This market failure exists almost in every economy of the developing world as a result of a mismatch between the public and private sectors.
Most economies comprise both public and private sectors. The public sector encompasses the business activities that the government control and run, whereas the private sector is dealt with by private individuals.
There is no doubt that private individuals form the most part of the world economy in comparison to the government in each country. The earnings of the public sector depends on the government activities, which are usually used to serve the government welfare function.
Therefore all eyes are on the private sector to be the main actor in the economy.
This article is supported by PDK, the trio Namibian musical band, who once sang that “the key to prosperity depends on private sector.” The three (PDK) sang that NCCI (Namibia Chamber of Commerce and Industry) holds the premier voice to inspire the nation.
This is because it’s in the private sector where knowledge is polished in how to use the resources at hand to enable individuals to apply the correct formula for economic success and transcend obstacles in the business industry, i.e. if ‘A’ has only one ladder and she can use it to climb up the building while ‘B’ has two ladders similar to the ladder ‘A’ has, but still cannot use them to climb up the building, ‘B’ is failing to use the resources she has, while ‘A’ is succeeding in using the one resource she has.
This concludes that we must correctly and optimally utilize the resources we have instead of expecting to have more. When this happens, individuals will begin to produce anything to earn something, even while awaiting to receive their basic wage or salary.
Furthermore, the private sector is key because when we become employers, we create connections in societies and set examples to the young generation to work and strive to be independent at the early ages. In this, the network between individuals who run various firms in distinct industries will grow the economy and meet the government half way.
It is essential to boost the economy, but the government alone cannot achieve that. Private individuals can play a huge role in poverty eradication, although the government has set up policies to monitor the gap between rich and poor as well as the supply of money to the country.
These main policies are redistribution of income, fiscal policy and monetary policy. Of course, the tax comes from private individuals but if there are more private employers to employ more private individuals, the income to the government also increases through taxation.
Therefore, more focus is put on private sector to be the main actor in the economy.
This does not however mean just having a job and become personally independent, but also to create an economy that is highly productive and has a higher independent ratio compared to dependent ratio.
In conclusion, the above-mentioned three singers also stated that we must produce more, as the more we produce is the more which will be consumed by our people, but the oppose of this will lead to deficit.
— Petrus Haikela Hanghuwo is a University of Namibia graduate, specialising in business and economics teaching.