A Dangerous Idea

PRIVATISATION is not the answer to the already fragile Namibian economy.

It could bring more harm to many Namibians while benefiting the few. Firstly, it is a policy prescription from the World Bank (WB) and the International Monetary Fund (IMF) to further their agendas of exploitation and profit making.Because the moment you privatise, more foreigners will come in to invest in your economy, but can leave at any time, once maximising their profits; thereby leaving your economy vulnerable again.Consequently, the affected country has no other option but to borrow money either from the WB or the IMF, so that they can control your economy.Secondly, it is a policy transfer that need more research because countries differ economically, culturally and socially.Therefore, the option for Namibia is outward restructuring of State-Owned Enterprises (SOEs).I believe most SOEs have already done inward restructuring whereby they have attempted toß ensure that there is equilibrium between organisations’ strategies and structures.Why is outward restructuring is needed? One should look at the lifespan of our productions in the market i.e.how long they stay in the market; too long, because of the lack of technologies and innovations.Therefore, there is a need to reduce this gap, by inviting foreigners or expertise.It is simply because the government will still have major equity share, let’s say 49 per cent, 30 per cent foreigners and 21 per cent locally owned.This would enable our SOEs to become effective, contributing to the economic development and improving service deliveries.Herman Hamutenya Via e-mailFirstly, it is a policy prescription from the World Bank (WB) and the International Monetary Fund (IMF) to further their agendas of exploitation and profit making.Because the moment you privatise, more foreigners will come in to invest in your economy, but can leave at any time, once maximising their profits; thereby leaving your economy vulnerable again.Consequently, the affected country has no other option but to borrow money either from the WB or the IMF, so that they can control your economy.Secondly, it is a policy transfer that need more research because countries differ economically, culturally and socially.Therefore, the option for Namibia is outward restructuring of State-Owned Enterprises (SOEs).I believe most SOEs have already done inward restructuring whereby they have attempted toß ensure that there is equilibrium between organisations’ strategies and structures.Why is outward restructuring is needed? One should look at the lifespan of our productions in the market i.e.how long they stay in the market; too long, because of the lack of technologies and innovations.Therefore, there is a need to reduce this gap, by inviting foreigners or expertise.It is simply because the government will still have major equity share, let’s say 49 per cent, 30 per cent foreigners and 21 per cent locally owned.This would enable our SOEs to become effective, contributing to the economic development and improving service deliveries.Herman Hamutenya Via e-mail