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Is President Tinubu's System Of Economic Governance Been Misunderstood - Politics - Nairaland

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Is President Tinubu's System Of Economic Governance Been Misunderstood by Akamon(m): 8:31pm On Aug 01, 2023
Are Nigerians unaware of President Tinubu's chosen style of economic system or is the nation citizenry uninformed?
I think the above subject matter needs immediate clarification so that the current government can either do more to educate Nigerians on their adopted economy model chosen or bring it to a halt if Nigerians cannot take the economic system practiced.
I believe Nigerians have repeatedly heard over media platforms about Free Market economy since the current government came on board. This have shown that the model style of economic system practiced by the government is a Capitalist System Economy or what is known as Free Market economy.

Let's take a look at what this meant

Capitalist System
This is the most predominant economic system practiced in the world today(Though absent in major part of Africa). In this system, the capital is privately owned and distributed and distribution mechanism is left to the market to allocate the resources.

Going by the “Invisible Hand” of Adam Smith that guides the allocation of resources, it is deemed that the market does a good job of determining which sectors receive the capital and how much.

According to laissez faire mode of capitalism the state has minimal responsibility in the economic system and is seen as a “hands off” player rather than being interventionist. The state is expected to have regulatory mechanisms in place and ensure that the market corrections are supervised and the state steps in whenever there is a crisis of liquidity or other market failures.

This system is highly driven by
1. A profit driven system because of the international transaction involvement (Foreign Direct Investment & Foreign Portfolio Investment),
2. Market forces driven by demand and supply
3. Government interventions and not involvement.

In lieu of the above clarification Nigerians needs to come to terms that the previously practiced socialist System of economic Model where Government is involved in the market system, price fixing and subsidy provision is no longer in vogue.
This is the model of practice that has been able to unite the European Union, North America Free Trade Agreement. It's an economic model that China and other Asian nations are currently practicing and has made them a global integrated economic States.

This new economic model adopted by Mr. President will pursue the followings as a Free market;
1. Removal of Subsidies in critical areas that is impoverishing the nation (This will cause a short term hardship because of were we are coming from).
2. The revenue generated will be plunged back into the system to improve Agriculture, education, health care and other hard infrastructure provision instead of going to borrow to sustain the economy and been declared a non attractive and non loan worthy as was done during the socialist System.
3. Education and Trade reforms
4. Globalization will automatically be incorporated as it's one of the benefits of a Free Market economy.
5. Its speculated that Free Market economy works hand in hand with security because a nations boundary (Close System) is eroded because of the economic integration. Security might be tackled because of the huge foreign investment and spread of wealth.

I believe the above will provide a little insight to the system of economy we are currently practicing and not been misled by ignorance.
We have to face the current reality

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