With Mike Adeyemi
The real economic growth rate measures growth in relation to Gross Domestic Product (GDP) from one period to another and in proportion to inflation.
It is expressed as a percentage that shows the rate of change in a state’s GDP, typically, from one year to the next.
Before now in Kwara State, companies like Global Soap and Detergent Industry, Nigerian Sugar Company, Nigerian Paper Mill, Tate Industries PLC, Okin Biscuits, Okin-Foam, Okin Malt, Noble Breweries Nigeria limited, Union Steel Industry, Patigi Rice Mill, Kwara Paper Converter, Erin-Ile and many other companies were waxing strong with thousands of workers in their fold.
At creation, Kwara was fast growing geometrically with bold blue print through Kwara state first development plan.
The plan laid solid foundation for accelerated economic growth, increased productivity in agriculture, providing favourable climate for industrial development and improving the quality of life of the people through the provision of necessary infrastructure.
The progressive pace continued even many years after the creation, but unfortunately, this fleet of industries that were the pride of the state and the envy of the neighbouring states started fizzling out in turn as the years progressed.
The urgent need to revive Kwara moribund companies cannot be over emphasised as doing so would augment the Kwara State Internal Generated Revenue (IGR) and the same time provide employment for the teeming youths as well as possibly reinstating their former workers that are now left to their fate.
Over the entire period of active industrial performance, the growth of the Kwara manufacturing sector was rapid and sustained. The average annual growth rate of 15.5 per cent was really impressive.
However, it is of concerned that despite this high growth rate, the industrial sector lagged behind some other sectors of the Kwara economy.
The rate of manufacturing in GDP was increasing, 5.65 per cent in 1975, 7.79 per cent in 1985 and 9 per cent in 1988, but it was below what it should have been.
A recent study suggests that Kwara today should have a manufacturing sector representing about 16 per cent of the GDP.
Industrial sector is the most important revenue earner for any government. It contributes more than 70 per cent of governance.
Economic growth is essential in order to reduce poverty in developing countries and to improve people’s living standards. The activities of private sector enterprises play an important role in achieving high economic growth rates.
Reviving moribund companies if not establishing a new one means there will be more goods and services produced in an economy.
Conversely, the GDP (Gross Domestic product) will improve and hence, economic growth.
The standard of living will be enhanced and people will have variety of goods and services available in the economy as people will have more choices.
Poverty and unemployment can be eradicated quickly through rapid industrialisation. It has occurred in industrially advanced countries like Japan.
The slow growth of industrial sector is responsible for widespread poverty and mass unemployment.
It is noteworthy that revenue is collected from companies in form of royalties, which is a major source of fund for development.
For Kwara State to climb up the ladder of economic growth in correlation with her contemporaries, the government has to come up with policy measures for industrial growth such as revitalization of agriculture and improvement of the manpower.
To tackle high rates of unemployment in Kwara state, we must first ask what determines the level of employment. If employment could be explained, then unemployment could be explained too.
The level of employment is directly correlated with the level of production. Thus, what economist called ‘Multiplier’. That is, the numerical co-efficient showing how large an increase in income will result from each increase in investment.
In a modern capitalist economy, the level of business production will be determined by the amount of planned spending to purchase business products or aggregate demand.
It therefore behooves the Kwara State government to have huge investment in infrastructure and industries to create employment which in itself will stimulate demand.
The Kwara State government can revive these moribund companies by leveraging on technical and financial capacity of the Bank of Industry (BOI) to build a partnership for sustainable industrial growth in the state.
Also, the government and the Kwara Chambers of Commerce, Industry, Mines and Agriculture (KWACCIMA) should work in synergy towards positioning the state among its peers in the country.
Industrialising Kwara is the surest way to go in achieving rapid economic growth and development.
