Politics › Re: PDP: We Will Admit Obaseki If He Decides To Join Us by sulaak(m): 4:13am On Jun 14, 2020 |
frog12: hsc was form 6. and what certificate were you given after? higher school or high school leaving certificate? i believe that system was ended for JSS and SSS 6 year system. HSC was before my time. I did O/L and A/L, JSS and SSS came into the system in 1985 HSC was two years after the completion of five years O\level |
Politics › Re: Fashola: Many Countries Begged Nigeria For Food During Lockdown by sulaak(m): 4:07am On Jun 14, 2020 |
Corporate2020: The following are not dreams and aspirations, they are on ground;
Lagos-Abeokuta-Ibadan Railway Lagos-Ibadan Expressway Ajaokuta-Itakpe-Warri Railway Apapa-Oshodi-Iyana_Oworo Expressway Oyo-Ogbomoso Expressway Several remodeled international airports
If you have not seen the above listed, then you need psychiatric evaluation. After taking $40 billion loans all they have to show is less than $4 billion worth of infrastructures. Your mumu don start . Lagos-Abeokuta-Ibadan Railway Lagos-Ibadan Expressway Ajaokuta-Itakpe-Warri Railway Apapa-Oshodi-Iyana_Oworo Expressway Oyo-Ogbomoso Expressway Several remodelled international airports |
Politics › Re: PDP: We Will Admit Obaseki If He Decides To Join Us by sulaak(m): 9:35am On Jun 13, 2020 |
frog12: i dont understand ooo.. is he disqualified because the HSC is defective or because he took the party to court ?
even obaseki is not smart. there's no such thing as higher school leaving certificate, so he should just call it or produce his High school leaving certificate. In the 1960s to 1981 the school systems were five years O' Level and two years HSC only the smartest Nigerians entered Unversity. |
Politics › Re: PDP: We Will Admit Obaseki If He Decides To Join Us by sulaak(m): 9:28am On Jun 13, 2020 |
Is this democracy?
No Ideology! No Values!
PDP = APC = Stealing |
Education › Re: Afe Babalola University Ado-ekiti In Pictures by sulaak(m): 4:48pm On Jun 12, 2020 |
Davida33: This is what I am trying to explain to you that ABUAD that was founded in 2011 should be more beautiful than Covenant that was founded in 2002. We are moving backward instead of moving forward. Do you get my point now? You are wasting your time, Nigerians refuse to understand the meaning of progress and merit. 60 years living under NEPA and Quota systems have lower the expectation of every Nigeria, they will rather accept anything no matter how low the standard. Right now it's better to just have a building to keep out the rain and call it a University. I was shocked at the architecture of UNN |
Education › Re: Aerial And Ground Pictures Of The University Of Ghana by sulaak(m): 6:07am On Jun 12, 2020 |
The University of Ghana is the oldest and largest of the thirteen Ghanaian national public universities[3]. It was founded in 1948,[4] in the British colony of the Gold Coast, as the University College of the Gold Coast[5],[1] and was originally an affiliate college of the University of London[6],[2] which supervised its academic programs and awarded degrees. The British knew how to design and build universities. |
Politics › Re: CCECC: Itakpe–Ajaokuta Rail Line And Track Works Passes Final Acceptance by sulaak(m): 6:00am On Jun 12, 2020 |
NGpatriot: [s][/s]
There's nothing wrong with state enterprise, the problem is corrupt and and lawless Nigerians.
I ask you again, with lack of investments by the private sector, what do you think the government should do? Sit on their hands and keep waiting for born and unborn Nigerians to invest and create jobs for you?
Stop the ignorant tribal and bigoted quota garbage, all the tribes in Nigeria are responsible the rot in Nigeria, your ibo brothers and sisters were and are still part of the FG, they are also agency directors, managers, ministers, senators, governors, administrators.
Jonathan administration was full of your ibo people so was that not quota system and can you even list their achievements including all the accomplishments including how they rescued all the refineries and other FG institutions?
Did they complete all the decades old abandoned projects all over the country including this 30 years abandoned Warri Itakpe railway?
Did they even start and complete the 2nd NB right there under your nose?
How many projects were commissioned in the SE with all the ibo people Jona loaded his administration with?
You hateful and bigoted people obviously don't have mirrors to look into to see the rot and decay you participated in and even to make matters worse, your region is not Dubai and it's even one of the poorest and the most backwards regions in Nigeria. If after 60 years of independent all your state enterprises are not working, then there is something wrong. That is simple logic to ignorant and irresponsible people. Quota system destroys meritocracy. A government without merit is a government that will be corrupt and lawless, what do you think a man that has ascended to the role of director of a government agency through a quota system or poor education would when faced with complex tasks. The reason why NLNG is profitable is that the Nigeria government is a minority shareholder in the organisation. Awolowo free education program was a noble effort to provide basic education to all Nigerian in the Western region, but the consequence was that the standard of education deteriorated because the UPN state governments didn't have the funds and management skills to support mass free education programme. The products of UPN free education programme of the 1980s are now the hopeless government officials that are now involved in all forms of corruption and lawlessness in 2020. The same can be said of the all-regions in Nigeria when you destroy meritocracy you open the gates to corruption and lawlessness. common sense should have prevailed, free education model should have operated side by side with the private-owned missionary schools that provided qualitative education. |
Politics › Re: Kaduna Imposes 24-Hour Curfew In Atyap & Chawai After Clash Over Farmland by sulaak(m): 5:18pm On Jun 11, 2020 |
Clash or invasion of farmland by Fulani's herdsmen. |
Politics › Re: CCECC: Itakpe–Ajaokuta Rail Line And Track Works Passes Final Acceptance by sulaak(m): 5:16pm On Jun 11, 2020 |
NGpatriot: We have a government starting and completing major projects, also completing major projects that past administrations abandoned for decades.
We have a government correcting the power situation that was never corrected or addressed even after the immediate past administration looted $16 billion power fund by engaging a world renowned power entity like Siemens to offer final solutions to our power challenges..
....but you still think and believe that the president is dumb and you and the useless people that stole our money and never completed any project including the looters that created this problem and left us in darkness since independence are smart
The culture and mentality that the achievers are dumb and incompetent while you the lazy, negative, backward thinking, anti progress and developmental people are smart is so sad, pathetic and disheartening, even simply rettarded. Before you insult me again listen and learn. I do not here to protect the PDP they were are a disaster, not one of the enterprises that were privatised by both Atiku and El Rufai is functioning today, but the propaganda that OBJ spent $16 billion on electricity is a lie perpetuated by Yar'adua Government. The OBJ government funded the construction of over 6000 Thermal power plant was funded by the OBJ government and completed by GEJ. These are the list of power station started OBJ and completed by GEJ under the NIPP (The Nigerian National Integrated Power Project (NIPP) was conceived in 2004[1] when Olusegun Obasanjo was the President of the Federal Government of Nigeria. It was formed to address the issues of insufficient electric power generation and excessive gas flaring from oil exploration in the Niger Delta region. Seven power plants were designed in gas-producing states as part of the project.) https://en.wikipedia.org/wiki/Nigerian_National_Integrated_Power_Projecthttps://en.wikipedia.org/wiki/List_of_power_stations_in_Nigeria |
Politics › Re: CCECC: Itakpe–Ajaokuta Rail Line And Track Works Passes Final Acceptance by sulaak(m): 4:12pm On Jun 11, 2020 |
NGpatriot: 1. All the major companies in China are government owned.
2. Rich people in Nigeria hardly invest in industries, manufacturing, communications and so on, we sit on our hands and beg multinationals or foreign companies to invest in Nigeria and create jobs for Nigerians, this is our culture.
3. Our rich people park their money in foreign banks because of questionable and ill-gotten wealth.
4. Dangote is the only Nigerian with the focus and mentality to to invest and industrialize Nigeria so if Nigerians refuse to invest and create jobs, the government must step in unless you prefer the status quo where nothing is done. Nigeria is not China. Every single enterprise owned by the Nigeria government has never worked. NEPA Refinery Wood Mills Hospital Universities WaterWorks Just name one enterprise owned by the Nigeria government that works, just one. Even the government doesn't work. Do you know why? Over the years the country has been promoting quantity instead of quality, quotas instead of merit. |
Politics › Re: Sale Mamman: Nigerians Now Enjoy 18 To 24 Hours Of Electricity Daily by sulaak(m): 1:25pm On Jun 11, 2020 |
SLAP44: We warned everyone, but they decided to vote with their hate and not with reason. GEJ was not better |
Politics › Re: CCECC: Itakpe–Ajaokuta Rail Line And Track Works Passes Final Acceptance by sulaak(m): 12:01pm On Jun 11, 2020 |
Olominira: The Nigeria govt needs an holistic national orientation for all her citizens especially the young people like myself. Buhari is one of the most intelligent leaders in Nigeria and Africa at large even though his weaknesses are very obvious.
When people compare Buhari to a Dumb racist spearheading things over here, it shows people lack basic understanding of things. He called Buhari lifeless, just because he refused to sign a free trade agreement with the US. He thought Buhari lacks basic understanding of economics.
While shouting China...China...China,..... and all the tweeting and noise. Tesla moved a whooping of $250bn to Shanghai to build Tesla Gigantic Auto plant. A big step towards America becoming importer of Tesla cars just like Apple phones, GM, etc.
Buhari, the so called dullard, secured deals from same China to set up a train assembly plant and a University in Nigeria. A step towards industrialized Nigeria. If not for weak institutions in Nigeria, Buhari's performance would be making global headline news.
Edited: Tesla investment in China is about $5bn, kindly correct that not 250. Buhari despite his good intention, he is not an intelligent leader. The most critical industry in any country is human development, good education, healthcare and security, Buhari has failed on those three key issues. - The government should not be building new universities when it can't support the old ones - The government should not be building a training assembly plant, let the Chinese or a Nigerian entrepreneur build the plant. - The NNPC that Buhari and OBJ created in 1977 is now a cesspool of corruption, that can't operate refineries or deliver gas to the Thermal Power plants. -Buhari is the Federal Minister of Petroleum yet the four refineries are still not working, despite five years in government. - It has taken Buhari five years to engage Siemen on the issues with the power sector. Iran and Turkey have 90,000 MW Electricity capacity, Nigeria has 13,000 and can only distribute less than 3000 MW Finally, Buhari must be held responsible for the weak institutions in the country, he has five years to start the process of civil services reform and has done nothing. He could have started the restructuring process which was in his 2015 manifesto. |
Politics › Re: CCECC: Itakpe–Ajaokuta Rail Line And Track Works Passes Final Acceptance by sulaak(m): 5:58am On Jun 11, 2020 |
Olominira: The Nigeria govt needs an holistic national orientation for all her citizens especially the young people like myself. Buhari is one of the most intelligent leaders in Nigeria and Africa at large even though his weaknesses are very obvious.
When people compare Buhari to a Dumb racist spearheading things over here, this shows people lack basic understanding of things. He called Buhari lifeless, just because he refused to sign a free trade agreement with the US. He thought Buhari lacks basic understanding of economics.
While shouting China...China...China,..... and all the tweeting and noise. Tesla moved a whooping of $250bn to Shanghai to build Tesla Gigantic Auto plant. A big step towards America becoming importer of Tesla cars just Apple phones, GM, etc.
Buhari, the so called dullard, secured deals with same China to set up a train assembly plant and a University in Nigeria. A step towards industrialized Nigeria. If not for weak institutions in Nigeria, Buhari's performance would be making global headline news. Stop lying, Telsa factory in China is not worth $250bn? The Telsa Chinese plants value is not even worth $5bn and funded entirely buy Telsa Chinese partners and banks. I commend the completion of this Itakpe–Ajaokuta Rail Line and support the government planned Lagos to Kano railway line. Buhari is still a ruthless tribalist but he has done more than that Ijaw drunkard (GEJ) that wasted many opportunities despite high oil price. |
Foreign Affairs › Re: Charles Brown Is First Black Service Chief In USA by sulaak(m): 11:50pm On Jun 10, 2020 |
Swipa: On a totally unrelated note to this article,my eyes were opened today to see some things.
Please believe me when I say THE FUTURE OF AFRICA IS BRIGHT AND NIGERIA WILL BE GREAT!
MARK THESE WORDS. How will Nigeria be great? What is Nigeria doing today, that will make it great tomorrow |
Politics › Re: WTO: Okonjo-iweala Testament Of Buhari's Passion For Integrity - Kalu by sulaak(m): 11:41pm On Jun 10, 2020 |
The person wey put microphone for his face should be shot |
Education › Re: Enugu State University (ESUT) in pictures by sulaak(m): 1:35pm On Jun 09, 2020 |
Nan maximum prison? |
Politics › Re: FG Declares June 12 Public Holiday, To Mark Democracy Day by sulaak(m): 10:26am On Jun 09, 2020 |
Abfinest007: nonsense ...and madness. When will they celebrate production day? |
Education › Re: Ultramodern Schools Built By Governor Zulum In Borno (Photos) by sulaak(m): 1:41am On Jun 08, 2020 |
Auladimeji: I've noticed so many things about Northerner leaders and southern leaders
When northern want to steal from his state,He steals quarter and use the rest for infrastructures but southern, he'll use quarter for infrastructures and steal the rest.Lastly,Northerners have the best best road and standard hospital in Nigeria Rubbish, building model schools and good roads in the city centre is all good and rosy, what about the rural towns and villages do they have well-tarred roads, goods model schools and security, the answer is no, the Northern village and town dwellers are forced to survive on their own. I will not praise Northern or Southern leaders for doing their job that, but what concerns me is the hypocrisy in presenting modern infrastructure in the major cities while millions of Nigerians are being raped, kidnapped and murdered in the rural areas. |
Health › Re: NNPC Is Constructing N21bn Hospital In Katsina – GMD by sulaak(m): 8:49am On Jun 07, 2020 |
NNPC cannot supply gas to the thermal stations, they cannot secure the oil and gas pipelines, simple refineries are not working yet this stupid GMD, agrees to waste time and funds building hospitals in Kastina. Healthcare is the responsibility of the state ministry of health.
Nothing will work if the so-called leaders understand their roles and responsibilities. The North needs to stop depending on oil and start utilising the large reservoir of gold and agriculture to fund their development. |
Politics › Re: Lagos To Conclude 4th Mainland Bridge Financial Foreclosure Next Year by sulaak(m): 12:18am On Jun 07, 2020 |
The government should focus on getting Nigerian off the road and onto rail. Focus on the rail projects as a first priority |
Properties › Re: Novare Tenants Get 4-Month Free Rent In Abuja And Lagos by sulaak(m): 9:23pm On Jun 04, 2020 |
olamidedivotee: South Africa is colonizing us slowly How does investment turn into colonisation? The mind of a simpleton, Nigerians complain that there is no investment in the country and when they invest they complain. |
Education › Re: I Have Been Withdrawn From Medical School. I Can't Tell My Parents by sulaak(m): 9:48pm On Jun 03, 2020 |
Amotolongbo: @dear OP, Sagna112
I’m writing to you as someone who had passed through this kind of experience before. Mine was worse than yours. I will share the experience with you
Inform your parents on what is happening, they can’t beat or rebuke you
I was admitted to study pharmacy in 2006 at the great citadel, Obafemi Awolowo University. After my first session, I had 4 carryovers. Not as if I wasn’t serious or very dull, things just went in the way I didn’t understand. I summoned courage and repeated the first year, taking only the 4 courses. I passed all and proceeded to 200level. I repeated 200level and had to take all the courses again in my fourth year at the university. After the fourth year, I passed the courses though with resit in two courses. I promoted to 300level for the fifth year. I repeated 300level and had to take all the courses in 300level in my 6th year at the university.
Finally, the worse came after my 6th year in OAU pharmacy school, it was a withdraw from the faculty of pharmacy to other faculty. I wept and felt so bad as if that was the end of my life. Every thought in me had elements of suicide in it. But my parents were so aware, I called my mum who was at work immediately my course mate notified me of my fate. Dad had known earlier that day before me through one of our lecturers.
My parents stood by me and made sure I was happy and supported me financially, physically and spiritually until I was able to change my department to Geography in the faculty of Social Sciences.
I’m a Geography department graduate now and on a verge of being a registered Surveyor and I feel more happy and fulfilled than being a pharmacist
Being withdrawn from the medical school is not the end of life. There are billions of opportunities in other fields.
Please notify your parents now. They will know later, but they will feel more disappointed then than now. Good advice, doctors are dying like rat due to COVID-19 pandemic, study microbiology and find a cure for all these yeye viruses. I had a lot of friends that did a first degree in Biochemistry, Microbiology or Physiology and then joined the send year of a medical degree. Many medical students tend to complete a master degree in Physiology after the completion of their MBBS |
Education › Re: Pictures Of Landmark University Omu-Aran, Kwara State by sulaak(m): 7:39pm On Jun 03, 2020 |
I am very impressed with the investment in University building infrastructures across Nigeria, can we now extend that investment into the academic staffs and students.
I was an Agric Engr student at UI in the late 1980s, the quality lab and teaching materials were below standard in the 1980s. I guess it will be very poor today. |
Crime › Re: Herdsmen Invade Southern Kaduna, Kill Women, Children (Graphic Photos) by sulaak(m): 7:28pm On Jun 03, 2020 |
LeakStation: Can someone forward this pictures to Buhari? 21savages: He has seen it. He is behind the killings |
Crime › Re: Pastor Emmanuel Bileya And Wife, Julianna Killed In Taraba State by sulaak(m): 7:14pm On Jun 02, 2020 |
philip0906: Any hashtags for him? Ofcourse not. A young 9 year old boy who had been missing in Suleja was found dead today with his eyes plucked...Seen any hashtags for him or this pastor?
Ofcourse you won't see any. It doesn't fit the sensationalist headlines for Twitter and celebrities to latch on and engage in senseless #justiceforcrap charades.
The day Nigerians decide to have sense and choose to hit the nail on it's head demanding the right things from the government even if it means shutting down the country, then we might just be on track to sanity.
Till then, hol anything you believe tight, shine your eyes and hope for luck because the jungle don mature and only the fit and lucky survive. Life is cheap in Nigeria. On the day George Floyd (RIP) was murdered, 6 Nigerians were butchered in Kaduna State and on the 29th, 70 Nigerians were murdered by so called "Bandit" |
Politics › Re: Reps Approve Buhari’s $22.7 Billion Loan Request. South East Reps Kick by sulaak(m): 5:31pm On Jun 02, 2020 |
chiefolododo: More than 1trillion naira($30bn) loan in about 2 months Madness, complete madness. |
Politics › Re: Reps Approve Buhari’s $22.7 Billion Loan Request. South East Reps Kick by sulaak(m): 5:30pm On Jun 02, 2020 |
The Lawmakers are all thieves, how can Nigeria afford to pay for the current debts, talkless an additional $22.7 billion debt on an income of $15 billion. I finally give up on Nigeria. The lawmakers, especially those of the south-east caucus, complained about the government’s failure to include projects in the region amongst those to be financed from the loan. |
Business › Re: Oil Production: $4 Per Barrel In Saudi Arabia, $3 In Russia, $21.2 In Nigeria by sulaak(m): 3:06pm On Jun 02, 2020 |
Senator olodo, The offshore cost of production when working with IOC is $ 21 and Deep Sea cost of production when working with IOC $35 The government cannot explore onshore oil due to insecurity, pollution and lack of infrastructures, road, rail, water and security. I was shocked when the stupid Malami and Mele Kolo Kyari, decided to exchange increase ownership of the redundant deepsea oil fields in exchange for $62 billion, there a dummy born every day Nigeria to negotiate with IOCs over $62 billion demand Nigeria’s Justice Minister, Abubakar Malami, disclosed over the weekend that negotiations had begun towards a possible resolution. https://nairametrics.com/2019/10/14/nigeria-to-negotiate-with-iocs-over-62-billion-demand/ |
Crime › Re: George Floyd's Death: Thousands Join UK Protest by sulaak(m): 11:09am On Jun 01, 2020 |
Useless people, I don't see them protest over the more than one hundred people that have been recently murdered in Nigeria. |
Politics › Re: Ikpeazu Secures ₦27.4 Billion World Bank Funding For Aba Roads by sulaak(m): 6:24am On Jun 01, 2020 |
Officialgarri: Every one keeps borrowing with no current plan of loan repayment only to leave massive debt for the next government. You seek loans to build roads and fund other capital expenditures whereas you pay your people peanuts, subject them to starvation and when they cannot bear it anymore, they resort to committing suicide, transfer of aggression —but wont hesitate to put the blames on the Federal Government when the problem is clearly from the state government  I agree, the debt burden is too much and must be curtail, but a government cannot maintain the current recurring expenditure and at the same time build capital infrastructures. The responsibilities of the government is capital expenditure and social services, Nigerians must learn to build businesses and stop expecting the government to provide jobs. |
Politics › Re: President Buhari Set To Approve Reopening Of Worship Centres by sulaak(m): 6:18am On Jun 01, 2020 |
rentAcock: I weep for shortsighted people who have written off this great nation. I and my household will continue to believe in this great nation.
May God continue to bless the Federal Republic of Nigeria. Nigeria is not and has never been a great nation. So I weep for you. |
Foreign Affairs › Racism Is The Biggest Reason The U.S. Safety Net Is So Weak by sulaak(op): 6:12am On Jun 01, 2020 |
Racism Is the Biggest Reason the U.S. Safety Net Is So Weak Harvard economist Alberto Alesina, who died last week, found that ethnic divisions made the country less effective at providing public goods.
Last week, the economics profession lost one of its leading lights -- Harvard professor Alberto Alesina. The Italian economist, who died of a heart attack at age 63, helped revolutionize the field of political economy.
Economists are often criticized for ignoring the political aspects of their theories. At least since the end of World War II, economists have generally seen their role as offering expert advice to wise technocratic leaders -- “whispering in the ears of princes.” But in the real world, leaders with both the wisdom to listen to academic experts and the power to implement any much less all of their recommendations are quite rare; more often, the political world is a tangle of interest groups, culture wars, partisan bickering and electoral expediency.
Some economists throw up their hands at this mess and conclude that if leaders aren’t going to listen to reason, so be it. Not Alesina. He waded directly into the tangled mess, using theory and data to try to tease out the complicated interplay between politics and economics.
One of the big questions Alesina tackled was why the U.S. doesn’t have the generous welfare benefits of advanced countries in Europe. His answer, along with co-authors Edward Glaeser and Bruce Sacerdote, was twofold. First, U.S. institutions -- the Senate, the electoral system, the legal system -- were designed much earlier than their modern European equivalents, and are thus more oriented toward protecting private property above all else. But in addition, the economists found evidence that racial animosity was a source of American exceptionalism:
Opponents of redistribution in the United States have regularly used race-based rhetoric to resist left-wing policies…Within the United States, race is the single most important predictor of support for welfare. America’s troubled race relations are clearly a major reason for the absence of an American welfare state.
Listening to conservative talk-show hosts such as Rush Limbaugh, who derided Obamacare and other Obama administration social programs as “reparations,” it’s hard to argue with Alesina’s conclusion.
Alesina also believed that racial and ethnic divisions could inhibit a country’s economic growth. With co-authors Reza Baqir and William Easterly, he found that U.S. cities with more ethnic fragmentation were less effective at building roads, picking up trash and spending money on education -- all things that contribute to economic growth. And with Easterly and Janina Matuszeski, he found that post-colonial states with boundaries that cut across ethnic groups tended to do worse economically than those with more natural borders like rivers and mountains.
To some, this might seem like a confirmation of right-wing ideas that diversity is bad for a country. But although it might help explain the success of homogenous countries such as Sweden and South Korea, Alesina’s theory is much more subtle than it might appear. As he explained in a 2003 paper, the key isn't how similar the inhabitants of a country might appear on paper, but how much they see themselves as one people; fractionalization is in the mind, rather than in the genes. That implies that the way forward for the U.S. and other diverse countries, to become more equal and prosperous, is to de-emphasize racial and ethnic divisions and promote a shared identity.
Alesina’s research, of course, covered much more than the question of ethnic tensions. He also researched the link between inequality and growth. Some economists believe that the key to growth is to cut taxes and deregulate the financial system; the increased inequality that results from these policies, they argue, is simply the price of greater efficiency. But Alesina had the opposite theory -- inequality, he reasoned, leads to social discontent, which foments political instability, reducing economic growth. Looking across recent history, he and co-author Roberto Perotti found that more unequal countries are more likely to fall into political chaos and suffer economic decline. So time and again, Alesina shows that politics can turn intuition about markets on its head.
It’s worth noting that there was one case when his emphasis on politics may have led Alesina astray. After the 2008 financial crisis, Alesina and his co-authors argued that it was possible for spending cuts to be expansionary in a recession. A key idea was that spending cuts convince the public that a government will be fiscally responsible in the future, and makes consumers more confident to spend in the present. But later research by various economists at the International Monetary Fund found that the conventional wisdom is right -- austerity in a recession hurts growth. In the case of stimulus, brute economic forces tend to be more powerful than political ones.
But even though politics doesn’t always dominate market forces, it does so often enough that the economics world can ill afford to ignore the insights that Alesina uncovered. The world is not ruled by wise, selfless technocrats, but by the chaotic sentiments of the masses. Good advice is never enough; there must be some way of making economics work in the eyes of the people it’s designed to benefit.
The European Union has a habit of disappointing when trying to design a joint response to an economic crisis. However, Ursula von der Leyen’s speech at the European Parliament on Wednesday about a pandemic recovery fund could well be one for the history books.
The Commission president outlined a 750 billion-euro ($825 billion) rescue program to help the bloc cope with the fallout from Covid-19. EU governments still have to agree to the plan, and some northern member states — especially the Netherlands and Austria — are likely opponents. But if the final deal looks even close to Von der Leyen’s proposal, it will mark a radical transformation of Europe.
The Commission plans to borrow the hefty sum on the financial markets and then distribute it to member states between 2021 and 2024, with those who’ve suffered the most economically getting the bigger share. The fund is the sum of many parts. Some 560 billion euros will pay for a “Recovery and Resilience Facility” that will go directly to governments. There will also be a 31 billion-euro scheme to support solvent companies that need temporary state aid, and 9.4 billion euros to prepare for future health crises.
Italy and Spain will be the biggest beneficiaries, while Germany will receive relatively little. The EU will pay back investors via its own budget over a long period — as much as four decades.
The fund breaks a number of EU taboos. First, it raises significantly the amount the Commission can borrow on the financial markets. These are not “euro bonds” in the classic sense of the word, since individual member states will still have to pay their individual contributions to the EU budget, to be calculated by the relative size of their gross domestic product. The vehicle is also expected to be a “one-off” for the pandemic. However, it will be a very useful blueprint if the euro zone ever chooses to move closer to a much-needed fiscal union.
The second big change is that two-thirds of the money would given away as grants. This is the most controversial part of the plan, and it risks being watered down in the forthcoming negotiations between member states. There will be strings attached too, since governments will have to present reform programs to receive support. The extra spending will need to comply with EU-wide priorities such as technology investments and tackling climate change. But the generous provision of grants is a step change from the European Stability Mechanism, the euro area’s rescue fund, which only offers loans.
The final taboo to be possibly broken is on EU-wide taxation. The Commission has an eye on setting up new revenue streams, which could help to pay back investors, including environmental taxes and levies on multinational companies. This is the vaguest part of the plan, but potentially one of the most profound. It would create the seed of an EU Treasury, which could disburse its money where it sees fit.
Von der Leyen will have a tough time selling all of this to the so-called “frugal four,” which includes Sweden and Denmark as well as Austria and the Netherlands. They prefer loans because they fear some of this money will be misspent.
Countries in Eastern Europe have traditionally benefited from the bulk of the EU’s cohesion fund, but they’ve have had a relatively good pandemic so won’t receive much of this new support. It will be interesting to see which way they lean. The proposal needs unanimous support, which will be hard to secure.
At least the Commission president can rely on France and Germany, the EU’s biggest beasts, who struck the breakthrough deal that paved the way for Von der Leyen’s proposal. Spain, Italy and other southern countries are obviously in favor since they’d get most of the money. For once, the political stars may be aligned. If so, 2020 might be remembered in Europe as more than just the year of the pandemic.
0 Bloomberg L.P. All Rights Reserved Careers Made in NYC Advertise Ad Choices Contact Us Help https://www.bloomberg.com/opinion/articles/2020-05-30/racism-is-the-biggest-reason-u-s-safety-net-is-so-weak
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