By
Femi Aborisade
Introduction
I thank the leadership of PERESSA for inviting me as a Special Guest/Speaker at the Association’s 1st quadrennial and 9th national triennial delegates conference.
It is a rare privilege to have the opportunity for exchange of ideas that may influence our action which may direct or shape the future in the interest of the downtrodden.
Economic Growth & Economic development distinguished
Walter Rodney[1] opined that ‘development’ is, more often than not, used in the economic sense for the reason that the state of the economy is assumed to be an index of other social realities. He posits that economic development refers to the capacity of members of a society to jointly increase their control over the environment. This capacity to deal with the environment is in turn dependent on three elements, namely, the extent:
- of the knowledge and understanding of the laws of nature (science),
- to which the understanding is put into practice to develop technology (devising tools) and,
- of effecting improvement in the method of work organisation.
An example of the third element is the improvement, over the ages, in the character of work, ‘from being an individualistic activity towards an activity which assumes a social character through the participation of many’[2].
To Rodney, the whole essence of economic development is the capacity of every people to independently increase ‘their ability to live a more satisfactory life through exploiting the resources of nature’[3] Rodney recognises that there could be ups and downs in the process of developing societal capacity for gaining control over the environment. As he puts it:
Of course, human history is not a record of advances and nothing else. There were periods in every part of the world when there were temporary setbacks and actual reduction of the capacity to produce basic necessities and other services for the population. But the overall tendency was towards increased production, and at given points of time the increase in the quantity of goods was associated with a change in the quality or character of society.[4]
There is thus, a need to distinguish what Rodney calls ‘increased production’ or ‘increase in the quantity of goods’, which may otherwise be called ‘economic growth’ from ‘economic development’.
The concept, ‘economic growth’ refers to an increase or growth in the national income or product, which is usually expressed in terms of per capita income. That is, the aggregate Gross Domestic Product (GDP) or the aggregate Gross National Product (GNP, which includes net property income from abroad) divided by the total national population. There is ‘economic growth’ when there is a rise in the GDP/GNP or the per capita income. However, economists[5] point out that there is ‘economic development’ where there are certain fundamental structural changes to the national economy, including, but not limited to the following characteristics:
- existence of economic growth or increase in real per capita income.
- the increase in economic growth is reflected in improved material wellbeing of the majority.
- an increase in the number of persons participating in the production process (i.e. economically engaged).
- a change in consumption patterns, from majority of the people spending a large fraction of their income on food and other necessities of life to spending a small fraction of their income on necessities and a large fraction on consumer durables and leisure activity-related items.
- a rising share of industry and a corresponding decrease in the share of the agricultural sector in the GNP.
The foregoing characteristics of economic development mean that though there can be no economic development without economic growth, economic growth is merely a subset of economic development. While economic growth refers to a rise in the GDP/GNP, measured as per capita income, economic development suggests fundamental structural changes to the national economy, including a rise in GDP/GNP. Thus, Rodney’s[6] definition of economic development as:
- ‘increase in the quantity of goods’ (economic growth), and
- ‘a change in the quality or character of society’
aptly captures the economist’s conceptualisation of ‘economic development’.
Thus, where there is only economic growth without the presence of the other characteristics enumerated above, it would be said that there is growth without development. Such is the conclusion that arises where there is a rise in the per capita income (due to windfalls from sale of crude oil or any other natural resource) which is neither caused by the participation of the economically active population in the economic process nor accompanied by improvement in the material wellbeing of the majority
Nigeria has been having economic growth without economic development because the wealth of the society created by the working class and the advantage of bountiful and varied natural resources have been monopolized to enrich the few at the expense of the people who have been dispossessed.
This is the change the labour movement ought to bring about – to ensure that the wealth of the society is enjoyed by the masses of the people rather than being looted by the rogues in power who go about with filthy stolen wealth that belongs to the people
Source of Development
However, in terms of the source of development, the insight offered by Claude Ake[7] is instructive. Ake argues that ‘somebody has to determine that development is desirable, that a particular kind of development should be pursued and in a particular kind of manner’. Ake’s insights show that the desirability of development, the kind of development and the manner of attaining the desired development are neither accidental nor objectively determined. Along with Ake’s thoughts, I argue that it would be a monumental misconception to look forward to the state or the ruling class to bring about development in the interest of the masses of the people. In a capitalist society, the state or the ruling class cannot be expected to govern in the interest of the generality. The state, in the capitalist society, is indeed, a major obstacle to development, from the standpoint of the downtrodden.
Development of the poor – product of the political economy of labour
In furtherance of this line of thinking, I rely on the work of Benjamin Selwyn[8] who argues that development in the interest of the majority in the society can only be generated, not by relying on the state or the ruling class, but by relying on actions taken by organized labour, which is an alternative, Marxist political economy of development, that is,
… the political economy of labour – which holds that the uplifting and development of the poor – from poverty elimination, to improvements in human development indicators (health, life expectancy, literacy), to participation in, influence and control within and over the economy and the democratic process – must be achieved by their own means [i.e. by the poor themselves].
Political Economy of Labour As Labour Led Development
It is the alternative political economy of labour as defined by Selwyn that I adopt and term labour led development.
Selwyn[9] eloquently explains the major differences between state led development approach, which is termed ‘statist political economy’ (SPE) in the literature and the political economy of labour or the labour led development, as follows:
The fundamental differences between SPE [i. e. state led development] and the political economy of labour] [i.e. labour led development] are that the former represents a top-down political economy, in which state authorities in conjunction with capitalist entrepreneurs are identified as key developmental actors and their policies are to be achieved through manipulating labouring classes, with the latter denied any developmental role apart from the provision of their labour power as a cheap commodity input. [in the national interest]. [In contrast], the latter [i.e. labour led development] represents a bottom-up political economy, in which labouring classes are the key developmental actors, and their actions take the form of struggles against capitalist classes and states. SPE [i.e. state led development] has historically been associated with imperialist expansion, while the political economy of labour [labour led development] requires anti-imperialist and internationalist solidarity between labouring classes of different countries. While SPE seeks to establish competitive capitalist economies under the auspices of strong, centralised national states, the political economy of labour seeks to win developmental gains for labouring classes under capitalism, while generating the movements and institutions capable of transcending [i.e. overthrowing] capitalism nationally and internationally.
The political economy of labour or the labour led development is rooted in the thoughts of Karl Marx[10] who, speaking about the English industrial working class, had argued that no matter the degree of economic growth under capitalism, development would not trickle down to the mass of the working class; indeed, the working class would be sunk into deeper misery as economic growth rises, as follows:
It is a great fact that the misery of the working masses has not diminished from 1848 to 1864, and yet this period is unrivalled for the development of its industry and the growth of commerce.
Marx[11] went further to argue that, without the constraining effects of resistance through the struggles of organized workers, they would not benefit from economic growth:
What the lot of the labouring population would be if everything were left to isolated, individual bargaining, may be easily foreseen. The iron rule of supply and demand, if left unchecked, would speedily reduce the producers of all wealth to a starvation diet.
The gains won by the working people and their allies in terms of improvements in their working and living conditions are products of the struggles between labour and capital, rather than being the product of benevolence of the state or ruling class.
For example, Marx[12] pointed out that the Ten-Hour Act, which was introduced in England in 1847, resulting in reduction of the working day to ten hours, for the first time, reflected, how:
…in broad daylight the political economy of the [capitalist] class succumbed to the political economy of the working class.
Another critical attribute of labour led development is the development of policy on solidarity, not only on a national scale but also at an international level. It is thus labour led development that can negate primordial differences in race, ethnicity, gender, or in geographical units, as workers constantly see the need to unite in concrete struggles in their own interest.
AGENDA FOR DEVELOPING SUSTAINABLE ECONOMIC DEVELOPMENT AND JOB SECURITY
It is my opinion that the goal of sustainable ‘economic development’ places responsibility on organized labour to embark on an advocacy for a decent work agenda.
“DECENT WORK” DEFINED
Another way to understand “decent work” is to ask: “what makes work decent?”
“What makes work decent” may be understood by the ILO’s conceptual definition of “decent work”. According to the ILO, decent work means “productive work for women and men in conditions of freedom, equity, security and human dignity”[13]
INDICATORS[14] OF DECENT WORK
The broad definition of Decent Work can be further explained by measurable indicators, which include:
- Employment opportunities.
- Stability and security of employment
- Adequate earnings, paid as and when due.
Many governments across the world increase their minimum wage every year, as is the case in Britain (1st April) and France (1st Jan). According to the International Labour Organisation[15]:
Most frequently, countries adjust their minimum wages once a year. Some countries, adjust rates every six months, while others have 2-years intervals. Annual adjustments seem adequate in periods of low or moderate inflation
- safe working and living conditions
- decent hours of work
- not engaging in work that should be abolished (e.g. child labour, forced and slave labour).
- possibility of combining work, family and personal life.
- social protection/social security system,
- equal opportunity and treatment in employment and
- other fundamental rights at work, including guaranteed right of:
- freedom of association
- freedom of expression (voice)
- freedom of peaceful action (right to strike)
- opportunity for collective bargaining.
From the foregoing, the concern for decent work is a concern for work in the “conditions of freedom, equity, security and human dignity”, as the ILO posits.
“DECENT WORK DEFICITS”
We have “decent work deficits” where the elements that make work decent are lacking. Therefore, the following constitutes “decent work deficits”:
1. Lack of employment opportunities.
2. Lack of stability and security of employment.
3. Inadequate earnings (non-payment of salary, pro-rata payment, irregular payment, etc)
4. Unsafe working and living conditions
5. Indecent hours of work
6. Engaging in work that should be abolished (child labour, forced and slave labour)
7. Inability to combine work, family and personal life
8. Absence of social protection/social security system (lack of social safety nets).
9. Lack of equal opportunity and treatment in employment
10. Negation of fundamental rights at work, including lack of:
- Freedom of association
- Freedom of expression (voice)
- Freedom of peaceful action (right to strike)
- No opportunity for collective bargaining.
NUPENG – DANGOTE REFINERY CHALLENGE AS A DECENT WORK AGENDA CHALLENGE
Dangote Refineryis located within the Lekki Free Zone. It is thus eligible to enjoy a series of incentives, which by virtue of Regulation numbers 49 and 50[16] include the following:
“49. Incentives and concessions
Free Zone Enterprises within the Zone shall be entitled to the following incentives and concessions –
(1) legislative provisions pertaining to all Federal, State and Local Government taxes, levies, duties and foreign exchange regulations shall not apply within the Zone;
(2) repatriation of foreign capital investments in the Zone at any time with capital appreciation of the investment;
(3) remittance of profits and dividends earned by foreign investors in the Zone;
(4) no import or export licenses shall be required;
(5) exemption from procurement of import licences for importation of goods and raw materials into the Zone;
(6) exemption from payment of rent during construction stage subject to such time schedules as provided in these Regulations or as otherwise prescribed by Zone Management;
(7) up to 100%of production may be sold in the Customs Territory against a valid permit, and on payment of appropriate duties;
(8) up to 100% foreign ownership of business in the Zone;
(9) foreign managers and qualified personnel may be employed by companies operating in the Zone;
(10) exemption from expatriate quota requirements;
(11) the import duty on goods manufactured, processed or assembled in the Zone and exported into the Nigerian Customs Territory in commercial quantity, shall be the rate applicable to the raw materials (in the state in which they are originally introduced into the Zone); and
(12) any special product imported into the Zone under this scheme, on which value has been added without changing the essential character of the product after processing in the Zone and intended for the Customs Territory, shall be granted 75% of the chargeable import duty as tariff rebate.
50. Goods manufactured or produced in the Zone shall be imported into the Customs Territory irrespective of whether the goods are prohibited or not, upon payment of the appropriate duties. Provided that goods have been assembled or packaged without meeting the 35% value addition requirement shall not be allowed into the Customs Territory”.
However neither the Lekki Free Trade Zone Regulations nor the Nigeria Export Processing Zones Act prohibits trade unionism. The formation of Dangote Petroleum Refinery’s inspired Direct Trucking Company Drivers Association and hostility to NUPENG is therefore unconstitutional.
All other unions who have members working in the Dangote Petroleum Refinery and in all other companies in the Dangote group of companies, including PERESSA, should join NUPENG in demanding observance of the freedom of association, including complete freedom for trade unions to operate effectively.
REQUIREMENT OF POLITICAL INTERVENTION
We have argued that only labour-led development can bring about economic development. This means that labour should take more active interest in winning political power. For this to be facilitated, there is a need for constitutional amendment so that small parties, no matter their size and scope of influence, a local government or even a ward, or state, should be allowed to exist and participate in election.
CONSTITUTIONAL POLICY OF ‘NATIONAL PARTIES’ AS BARRIER TO POPULAR PARTICIPATION
The import of the Constitutional requirements, which a party must fulfil to qualify for registration as a political party is that it must be a national party. S. 222(e) provides that a political party shall not be confined to only one geographical area of Nigeria. S. 222(f) prescribes that the headquarters office of the party must be in Abuja. S. 223(1)(b) stipulates that the national Executive Committee (NEC) of the Party shall reflect Federal Character. The party structure is thus conceived in the image of a Nigerian institution. What all the conditions imply is that it requires a lot of money to organise parties. Parties are not perceived as organisations of people who share similar ideas, programmes and perspectives as to the kind of society they want to build if they win. In the interest of popular participation in governance, the sections referred to above ought to be amended
By virtue of S. 40, of the Nigerian Constitution on right of association, including right to form unions and political parties even though the latter requires registration by INEC, and the authority of the Supreme Court in Independent National Electoral Commission v Balarabe Musa & Ors (2003) 10 WRN 1, nothing also stops public officers from active participation in politics.
In the case cited above, the Supreme Court faulted the Civil Service Rules which restrict the participation of civil servants and other public servants in the politics of the county. In the leading judgment of the apex court, the Honourable Justice Ayoola JSC held that:
“There is nothing reasonably justifiable in a democratic society in the interest of defense, public safety, public order, public morality or public health in prohibiting a member of the public service or civil service … from eligibility to be registered as a member of a political party. The submission that the restriction is a valid derogation from section 40 by virtue of section 45 (1)(a) of the Constitution was erroneous.”
In his concurring judgment, Hon. Justice Uwais, the then Chief Justice of Nigeria said that:
“The provisions of section 40 of the 1999 Constitution are clear. Their import is to allow ‘every person,’ including public office holders and civil servants, the freedom to assemble freely and associate with other persons to form or belong to any political party, or trade union or any other association for the protection of his interests. The section has made no exception and there is no proviso therein limiting its application to civil servants or public officers.”
Even though the civil service rules were not set aside as its legal validity was not challenged in the case, it has been held by the Court in several cases that sections 7, 66 (1); 107 (1) (f); 137 (1) (g); 142(2); 182 and 187(2) of the 1999 Constitution permit civil servants and other public officers who wish to contest elections to resign their positions 30 days[17] to the date of elections for all the various positions of the President and Vice President, Governors and Deputy Governors, Federal and State Legislators as well as Chairmen and Councillors. See FAYEMI v. ONI & ORS (2019) LPELR-46623(CA); PPA v. PDP & ORS (2009) LPELR-4865;(CA); ADAMU V. TAKORI (2010) ALL FWLR (P. 540) 1387 (C.A)
THE CONTEXT AND IMPORTANCE OF THE PRECISION, ELECTRICAL RELATED EQUIPMENT SECTOR OF THE ECONOMY
The precision and electrical equipment sector underpins critical industries — energy, manufacturing, ICT, and infrastructure. It thus occupies a strategic position in driving the entire economy.
Similarly, the demand for precision and electrical equipment is growing due to the clean energy transition advocacy, electrification of transport, and digitalization. With its large domestic market, youthful workforce, and potentially growing industrial base, Nigeria is well-placed to become a regional hub. However, the capitalist ruling class is not interested in economic development. They are interested in looting resources. Hence, the urgent need for labour political intervention.
Ordinarily, to achieve sustainable industrial growth requires value addition & local manufacturing – a shift from import dependence to local production and assembly of precision instruments, electrical machinery, and components. The challenge is the ruling class is just not interested in investing for development.
PERESSA needs to campaign for green and low-carbon growth predicated upon energy-efficient technologies, renewable-powered manufacturing, and sustainable materials to align with global climate goals.
PERESSA needs to campaign for innovation & R&D – promotion of partnerships between universities, polytechnics, technical institutes, state and federal government owned businesses for homegrown technology and patents.
PERESSA should continue a robust fight to ensure that the minimum wage is implemented fully including consequential adjustments back to July 2024. An annual cost of living allowance is also required to ensure that the real value of salaries is not undermined.
PERESSA needs to campaign for infrastructure & power reliability – stable electricity supply and modern industrial parks with logistics, broadband, and export facilities.
PERESSA has a responsibility to embark on campaigns for job security and workforce development involving skills training & technical education; expansion of vocational training in precision engineering, electronics, robotics, and maintenance to prepare a skilled workforce.
PERESSA should fight to have a voice and support other unions fighting to have a voice. We should oppose unilateral imposition of terms and conditions of work in the clean energy transition programs in order to ensure fair wages, safe working conditions, and career progression.
PERESSA should be forward looking and anticipate introduction of automation and digitalization, which may affect its members and demand investment in re-skilling and upskilling so workers adapt to new technologies.
The sector in which PERESSA operates is central to renewable energy expansion (solar panels, inverters, grid equipment) and sustainable transport (electric vehicle components). We should insist on a Just Transition. We must argue to ensure that industrial policies protect workers and communities from displacement, while ensuring new green industries generate secure and well-paid jobs.
Above all, we must appreciate that rights are not given. We have to fight for them.
I thank you for your attention.
Femi Aborisade
[1] W. Rodney. (1973). How Europe Underdeveloped Africa. Dar-Es-Salaam: London and Tanzanian Publishing House. Available online at http://www.blackherbals.com/walter_rodney.pdf as at 10/05/12, p. 8.
[2] Ibid.
[3] Ibid.
[4] Ibid.
[5] http://www.referenceforbusiness.com/encyclopedia/Eco-Ent/Economic-Development.html as at 11/5/2012.
[6] Rodney, Op.cit.
[7] C. Ake, (1989). ‘Africa and the Political Economy Approach’ in Ihonvbere, J (ed.). The Political Economy of Crisis and Underdevelopment in Africa, Selected Works of Claude Ake. Lagos: JAD Publishers, p. 43)
[8] Selwyn, Benjamin (2015) The Political Economy of Development: Statism or Marxism? in Pradella, Lucia and Marois, Thomas (eds) (2015) Polarising Development: Alternatives to Neoliberalism and the Crisis (London: Pluto Press, pp.39-40. See also: https://ivavalleybooks.com/2020/11/16/struggle-for-development/
[9] Supra, p. 40.
[10] In his 1864 Inaugural Address to the First International. See Marx, K. (1974a) [1864] ‘Inaugural Address of the International Working men’s Association’, in K. Marx and F. Engels, Selected Works, Vol. 3. London: Penguin/New Left Review, p. 73.
[11] Marx, K. (1974b) [1867] ‘Address of the General Council of the International Working Men’s Association to the members and Affiliated Societies’, 9 July 1867, Minutes of the General Council of the First International,1866-68. Moscow: Progress, p. 137, cited in Selwyn (supra), p. 46.
[12] Marx, K. (1974a) [1864], op. cit. p. 75, cited in Selwyn (op.cit), p. 46.
[13] https://international-partnerships.ec.europa.eu/policies/sustainable-growth-and-jobs/employment-and-decent-work_en
[14] See also the 2008 work of the ILO’s International Tripartite Meeting of Experts (TME) on the Measurement of Decent Work.
[15] http://www.ilo.int/global/topics/wages/minimum-wages/setting-adjusting/WCMS_439254/lang–en/index.htm
[16] Investment Procedures, Regulations and Operational Guidelines For Free Zones In Nigeria. Nigeria Export Processing Zones Authority, 2004
[17] Challenge is to campaign for a Constitutional amendment in support of leave of absence rather than resignation
