Wednesday, November 22, 2017

ActiveCitizenship 101: Cabinet appointment, size and mandate for economic development

The state is an intangible human creation of abstract institutions, real human beings as officers and properties through which the collective sovereignty (self-rule and self-determination) of the people find expression. Such a collective expression of sovereignty (self-rule and self-determination) has an address in the constitution [1] as pronounced in section 3(2)(f), i.e. the "respect for the people of Zimbabwe, from whom the authority to govern is derived." The people of Zimbabwe in their collective sovereignty elect a President whose authority flows directly from them. He/she is compelled to exercise any public power in a representative capacity and in the name of the people and for their good. He/she then appoints public officers with delegated authorities to serve the sovereigns, the people of Zimbabwe, for "the State and all institutions and agencies of government at every level in to formulate and implement laws and policy decisions that will lead to the establishment, enhancement and promotion of a sustainable, just, free and democratic society in which people enjoy prosperous, happy and fulfilling lives." [2] The exercise of executive authority of the Presidents responsible for being the chief of state, chief executive as the head of bureaucracy, commander-in-chief of the armed forces, chief diplomat and guardian of the economy. The executive authority of the President and any public officer is constitutionally defined and limited for the purposes of serving the sovereigns, the people of Zimbabwe, through the following measures: 1) public accountability, 2) checks and balances "through a series of constitutional safeguards," and 3) separation of powers among the executive, judiciary, and legislature. Appointment of Cabinet According to sections 104 and 105 of the Constitution of Zimbabwe, it is the sole prerogative of the President as the appointing authority of senior public officials to be ministers and deputy ministers to serve the sovereigns, the people. He/she determines whom to appoint and what they should do by way of assignment to a particular ministry or special responsibilities. In the same Constitution, the people of Zimbabwe should have trust and confidence in those appointed as vice presidents, ministers and deputy ministers. Section 196(1) is instructive that "authority assigned to a public officer is a public trust which must be exercised in a manner which: a. is consistent with the purposes and objectives of the Constitution; b. demonstrates respect for the people and a readiness to serve them rather than rule them; and c. promotes public confidence in the office held by the public officer." Section 196(3) requires citizens to be satisfied that "public officers in leadership positions must abide by the following principles of leadership: a. objectivity and impartiality in decision making; b. honesty in the execution of public duties; c. accountability to the public for decisions and actions; and d. discipline and commitment in the service of the people." Relatedly, section 194 sets out basic principles and values for public service and should be fulfilled by anyone to be in a public position. Against this background, the president does not only have the responsibility to appoint vice presidents, ministers and deputy ministers but also he/she is accountable to the people of Zimbabwe. The citizens of Zimbabwe cannot exercise silence on the issue as to who will serve them. They also need to have the trust and confidence that those appointed meet the requirements of the sections sited above and any other provisions in the Constitution. This means there is no blank cheque from the people of Zimbabwe in the exercise of the presidential prerogative. For years we have only been informed of who it is the president has appointed as ministers and deputy minsters without even having the official profile of the appointees being published. We have not even been informed if the constitutional provisions cited above have been strictly observed and adhered to. The people of Zimbabwe need to benefit from exercise of pre-appointment parliamentary scrutiny of the ministerial appointees so that they can speak through their representatives that such senior public officials are checked to determine if they are up to the task of public service. [3]. In adhering to the constitution, "public administration must be accountable to Parliament and to the people." [4] Cabinet appointees should be scrutinised by Parliament! Size and mandate of Cabinet As provided for in section 105, the president assigns the appointees to a specific ministry. He/she decides the number of ministries and their terms of reference. Again as citizens we need to be convinced that the terms of reference for each ministry and the number of ministries make it possible that public funds are "efficiently and economically used." [4] This is because these are public officials who will be expected to have "people's needs must be responded to within a reasonable time" while at the same time "the public must be encouraged to participate in policy-making." [5]
Currently there is is duplication and overlapping between many ministries. For example we have a ministry of finance and economic development and then another ministry for macro-economic development. There is need for redefining their roles to avoid duplication and overlap of activities. The core business of a finance ministry should be for the management of public funds through the budget, public finance management system and accounting system; national debt; tax, tariff and customs matters through the national tax agency; supervision of financial system and financial institutions through the central bank. A separate economic affairs ministry should be responsible for economic policies, affairs and investment promotion. In the Netherlands, the Ministry of Economic Affairs is a mega-ministry consisting of the following departments Economic Affairs, Industry, Mining, Trade, Energy and Tourism. Its role is to "promote sustainable economic growth."
In Taiwan, the Ministry of Economic Affairs has the following departments: Commerce, Mines, Trade, Investment Promotion Services, International Cooperation, Statistics, Industry and Industrial Technology. As it can be noticed there is an effect of having a lean but effective size of a cabinet. Currently, Zimbabwe has 32 ministers and 20 deputy ministers [6] and yet countries with more people and high level of economic development have smaller cabinets. It would be prudent if there is a justification of each ministry in Zimbabwe. There should be a process of reducing ministries to more than 17 without deputy minsters and ministers of state for efficient and effective application of public funds in areas that benefit the most people of Zimbabwe! Why do we pretend to have unlimited public funds to finance an oversized cabinet and as if we have so much to do when our economy is so small and burdened? One quick and simple way of determining the necessity of having a stand alone ministry is the day to day decisions and initiatives that are made by the minister and the weight of such decisions to the maximum advantage for the public cause. If we were to have a lean but compact cabinet size, here should be the list of only 18 ministries: 1. Finance and Economic Affairs 2. Home Affairs and Culture 3. Lands and Agriculture 4. Primary and Secondary Education 5. Defense, Security and Veteran Affairs 6. Health and Child Welfare 7. Justice and Parliamentary Affairs 8. Foreign Affairs 9. Sports, Arts and Recreation 10. Industry, Commerce and Enterprise Development 11. Environment and Tourism 12. Mining, Energy and Water Resources 13. Local Government and Public Works 14. Transport 15. Women and Youth Affairs 16. Labour, Higher Education and Scientific Development 17. Communication, Information and Cyber Security 

The following are examples:
Sweden has 11 ministries [7] as follows: 1. Ministry of Culture, is responsible for issues relating to culture, media, democracy, human rights at national level, the national minorities. 2. Ministry of Defence. 3. Ministry of Education and Research, is responsible for the Government’s education, research and youth policy. The Ministry works on issues including school performance, conditions for teachers, study financing and living conditions for young people. Departments - Primary and Secondary Education; Higher Education, Training and Research. 4. Ministry of Employment, is responsible for issues that concern a well-functioning labour market. This includes measures to get young people into work, matching, labour-market policy programmes, unemployment insurance as well as issues on labour law and work environment so that everyone has the opportunity to take part in working life with good working conditions. 5. Ministry of Enterprise and Innovation, is responsible for matters relating to housing and urban development, state-owned enterprises, information technology, enterprise and industrial policy, rural affairs, regional growth, post issues and infrastructure. 6. Ministry of the Environment and Energy is responsible for environmental, energy and climate policy. 7. Ministry of Finance, is responsible for issues concerning central government finances, including coordination of the central government budget, forecasts and analyses, tax issues, and management and administration of central government activities. The Ministry is also responsible for matters concerning financial markets and consumer legislation. 8. Ministry for Foreign Affairs 9. Ministry of Health and Social Affairs, is responsible for issues concerning the welfare of society, sport issues, rights of the child, rights for people with disabilities and gender equality. 10. Ministry of Justice, is responsible for legislation concerning the constitution and general administrative law, civil law, procedural law and criminal law. 11. Ministry of Home Affairs
Singapore has 20 ministries [8] as follows: 1. Deputy Prime Minister & Coordinating Minister for National Security 2. Deputy Prime Minister & Coordinating Minister for Economic and Social Policies 3. Ministry of Infrastructure & Transport 3. Ministry of Trade and Industry 4. Ministry of Manpower 5. Ministry of Communications, Information and Cyber Security 6. Ministry of Defence 7. Ministry of Foreign Affairs 8. Ministry of Home Affairs 9. Ministry of Health 10. Ministry of Trade and Industry (Industry) 11. Ministry of Finance 12. Second Minister for Finance 13. Ministry of Culture, Community and Youth & Leader of the House 14. Minister, Prime Minister's Office & Government Whip 15. Ministry of Social and Family Development 16. Ministry of National Development 17. Ministry of the Environment and Water Resources 18. Ministry of Education (Schools) 19. Ministry of Education (Higher Education and Skills) 20. Ministry of Law
South Korea has 19 ministries [9] as follows: 1. Ministry of Culture, Sports and Tourism 2. Ministry of Education (also automatic Deputy Prime Minister) 3. Ministry of Foreign Affairs 4. Ministry of Justice 5. Ministry of the Interior 6. Ministry of Agriculture, Food and Rural Affairs 7. Ministry of Health and Welfare 8. Ministry of Employment and Labour 9. Ministry of Land, Infrastructure and Transport 10. Ministry of Public Safety and Security 11. Ministry of Strategy and Finance (and automatic Deputy Prime Minister) 12. Ministry of Science, ICT and Future Planning 13. Ministry of Unification 14. Ministry of National Defense 15. Ministry of Culture, Sports and Tourism 16. Ministry of Trade, Industry and Energy 17. Ministry of Environment 18. Ministry of Gender Equality and Family 19. Ministry of Oceans and Fisheries
Sources: [1] Constitution of Zimbabwe (2013), www.constituteproject.org/constitut... [2] Constitution of Zimbabwe (2013), section 8(1) [3] Cabinet Office Guidance: pre-appointment scrutiny by House of Commons select committees www.gov.uk/government/uploads/syste... [4] Constitution of Zimbabwe (2013), section 194(1)(f) [5] Constitution of Zimbabwe (2013), section 194(1)(e) [6] www.parlzim.gov.zw/about-parliament... [7] The Government of Sweden www.government.se/government-of-swe... [8] Singapore Cabinet www.parliament.gov.sg/cabinet; www.parliament.gov.sg/cabinet [9] South Korea Cabinet www.korea.net/Government/Administra...

ActiveCitizenship 101: Economic Manifesto for Value Proposition: What needs to be done?

There is an ancient Chinese aphorism that says, "Better light a candle than curse the darkness."
We need not to be fond of "cursing the darkness" by mourning, wailing and lamentation without offering alternative solutions by "lighting a candle." An active citizen should not be an agent to amplify lamentation, wailing and invectives.
The solutions being suggested are from a centre-right (#centralist) perspective. This is compared to the #HardLeft and #HardRight positions.
Such a centre-right model is stimulative of the private sector while the government has four key roles:

1. business friendly legal, regulatory and policy initiatives;
2. infrastructural development priorities;
3. infrastructural spending (procurement);
4. prompt payment of procured goods and services.
This means the government isn't demobilized but be considered as a key player in the economy that doesn't undermine business interests, property rights, due process and rule of law. Instead of wanting to create many million jobs, there is need to be the government should actively facilitate the creation of "million businesses." That provides both a distinction and a difference.
In the immediate and short term, there is need to do away with the "bad or toxic politics" that are fractured and alienating of business activity and investor confidence. The prohibitive and punitive aspects of doing business that are scaring away FDI and lines of credit needs urgent fixing.
With or without own currency, any national economy has to generate forex.
In the immediate term, the following has long term effect as legislative and policy interventions:
1. A public education system that advances Self Worth, agency, power of causation, innovation, and critical and creative thinking.
2. Prudence in fiscal governance and the exercise of public power to avoid fraud, abuse and waste. [1].
3. Ease of doing business so that there is a market economy, investment for competitive industrialisation and infrastructure development leading to job creation. Endless workshops, conferences and public speeches of intent around this issue are now an irritant as if people don't know what needs to be done and how.
4. Constitutionality: there should be public accountability (s68), the right to life (s48), liberty, dignity and security (s49, 51-54), private property (s71) and a due process of law (s69-70, 85-86). [2].

Causes of Economic Growth
There are only a few ways to generate economic growth:
  1. Manufacturing instead of trading of natural resources: this is the conversion of economic resources ("factors or inputs used in producing goods or providing services divided into human resources and non-human resources, such as land, capital goods, financial resources, and technology") to produce finished goods.

    2. Educated middle class: policy initiatives and legislative processes that should lead to the growing of a skilled labour force because more educated workers generate more and better economic goods and services.

    3. Modern industrialisation: the creation of superior technology or other capital goods. The rate of technical growth and capital growth is highly dependent on the rate of savings and investment, since savings and investment are necessary to engage in research and development.

    4. Labour specialistion: an increase of specialisation so that labour becomes more skilled at its crafts, raising its productivity through trial and error or simply more practice. [3, 4]
Agency and power of causation
To create is to have or produce something out of nothing like an architect who creates a house or building from his/her MIND.
This means creativity is a mental exercise. We need to exercise both Creativity and Thinking. Being human means to be a Creative-Thinker.
Every human being has the cognitive power and capacity to be reasonable, discerning and causative for anything. Poverty starts in the MIND not materially.
Thereafter, after we have done the work of an architect to creatively think, we need to be builders or constructors of reality. We need to act on our thoughts. We need to CONVERT our thoughts into matter.
Being builders means as human beings we use elements and aspects of nature to have what we would have creatively thought about. The result is a human construct. Material is converted from an idea or thought.
Elements and aspects of nature need human EFFORT to be useful to our lives. Useful in the sense of meeting a need or providing a solution to a problem.
We did not create rocks that we now call minerals but human beings agreed amongst themselves to give value on some specific stones so that they are precious or have commercial (tradable) value. Before that consensus, they were just rocks in the wild. Human beings CONVERTED them into a specific use through exchange in commercial value.
Nature on its own needs human creative thinking and then EFFORT to build and construct.
The top ten global confectionery companies that manufacture chocolate are (not in any order): Nestle (Switzerland), Lindt (Switzerland) Cadbury Schweppes (United Kingdom), Ferrero SpA (Italy), Callebut (Belgium), Mars (USA), The Hershey Company (USA), Kraft Foods Inc (USA) Meiji Seika Kaisha Ltd. (Japan), Barry Callebaut AG (Switzerland) Ezaki Glico Co (Japan).
Israel does not have much land and it then produced one of the best irrigation and greenhouse technology and also leads the world in developing and exporting green technologies.
The country is also a pioneer in geo-thermal and solar energy, the world's leading company in geo-thermal power.
Japan's Nippon Steel Corporation is the world's second-largest steel producer in volume and the second most profitable steel company in the world. The materials to produce steel arrive in Japan at the steelworks found in coastal towns on one end and leave as exports at the other end of the same town. Japan does not have iron ore or coal as natural resources, apart from fish.
By volume, Toyota is the largest motor vehicle manufacturing group followed by General Motors (USA), Volkswagen (Germany), Ford (USA), Hyundai (South Korea), PSA Peugeot Citroen (France), Honda (Japan), Nissan (Japan), Suzuki (Japan). By country, Japan is the second largest motor vehicle producer after China, followed by the USA, Germany, South Korea, Brazil and India. Japan does not have a single raw material for the automotive industry, apart from fish.
The Japanese consumer electronics industry is one of the most prominent industries in the world and is the world's largest electronics manufacturer by companies such as Sony, Pentax, Casio, Citizen Watches, Hitachi, Mitsubishi Electric, Panasonic, Roland, Sharp, Canon, Epson, Yamaha, Sanyo, Fujitsu, Korg, Fujifilm, JVC Kenwood Inc, Toshiba, Pioneer, Nikon, TDK, Nintendo, Olympus, etc.
Japan is the largest consumer electronics manufacturer in the world due to its high concentration of electronics companies, dominant global market share in electronics, and high quality of its products.” – Wikipedia. Japan has only fish as natural resource.
According to the World Trade Organisation (WTO), South Korea is the 8th largest exporter in the world after China, Germany, USA, Japan, France, the Netherlands and Italy, followed by United Kingdom and Canada. South Korea is a country with the least natural resources, just like Singapore.
Within the Top 50 developed countries, one finds industrial powerhouses (not in any order) – Germany, Japan, South Korea, Singapore, Belgium, United Kingdom, Iceland, Luxemburg, and Switzerland do not have any natural resources to match their economic might except that they continue to prove that industrialization is the key to economic development, high employment and very low levels of poverty.
The main chocolate exporters in the world are all European, with the four largest countries, according to World Trade Organization statistics, being Germany (US$1.5 billion exports in 2003), Belgium ($1.4 billion), France ($856 million) and the Netherlands ($821 million).
None of these chocolate-producing countries are among the list of those producing cocoa. They are the biggest producers and among the most consumers of chocolate.
Relatedly, abundant natural resources (land, minerals, sun-hours, a tropical climate, etc) in Africa have created a comfort social condition and industrial inertia leading to very low levels of industrial ingenuity, innovation and creativity.
The fastest growing telecommunications market in the world is Africa? In the mid-90s, there were 600,000 mobile phones in Sub-Saharan Africa. Today there are 750 million users today. What created this growth? There were no aid dollars or conferences. It was human ingenuity, innovation and creativity. These were the real game changers. Yet there is NOT even a single telecommunications equipment manufacturer on the continent.
A human construct is anything that did not exist before human creative thinking and EFFORT of building and construction. Caucasians who came to Africa exercised the power of creative thinking and conversion of their ideas/thoughts using the available elements and aspects of nature.
They CONVERTED that into commercial value and tapped into their own human networks for leverage.
Apartheid and the colonial government systems all over were a human construct to protect their racially-based interests.
Now that the political systems are inclusive, diverse and pluralistic, how come we are not harnessing human ingenuity, creativity and innovation for an improved economic situation? Because we are poor in the MIND as we haven't discovered the cognitive power within us waiting actualization.
What is an economy?
From this thinking, an economy are the activities of the CONVERSION rate of ideas/thoughts into material products using aspects of nature into solving problems and meeting needs.
The word "economy" comes from Greek "okionomia" (Strong's Greek Concordance #3622) which means "management of house affairs" or "stewardship" for the livelihood and well-being of its members.
The word is from Xenophon and Plato to mean, "the management of a household or of household affairs; specifically, the management, oversight, administration, of others' property; the office of a manager or overseer, stewardship."
The word is derived from "oikonomos" (Strong's Greek Concordance #3623), for "the manager of a household or of household affairs; especially a steward, manager, superintendent."
A country is an aggregate of households, an economy is the management of its affairs for the livelihood and the well-being of the citizens' households.
A country is thus an aggregate and collectivity of individuals, households and institutions whose economic decisions and behaviour have a bearing on the well-being of a nation’s economic productivity.
The least developed countries have remained oblivious to the industrialization approach, yet South Korea, Japan and China have sent their best brains to study, adopt and adapt the Western model – innovation, private property and organizational efficiency.
Ironically, the least developed countries simply adopted and adapted the Western model of conspicuous consumption "in the context of addictive or narcissistic behaviors induced by consumerism, the desire for immediate gratification, and hedonic expectations" while not backed by solid and sustainable economic fundamentals of financial prudence, savings, technological innovation and commercial creativity.
Majority of educated Africans are highly Westernized in terms of consumptive style and gadgetry tastes but very unscientific, technically unscrupulous and casual about time in terms of essence and reluctant “architects”.
The top 100 brands of the world are from the developed countries of the world. It was naturally created that way. Expression through human conduct made it so possible. The 1996 book “The Millionaire Next Door: The Surprising Secrets of America's Wealthy” (1996) by Thomas J. Stanley and William D. Danko looked at the wealthiest Americans and found that most millionaires are quite frugal and lead modest lifestyles.
According to Arthur Herman, historian and author of “How the Scots Invented the Modern World: The True Story of How Western Europe’s Poorest Nation Created Our World and Everything In It,” private enterprise is a process of the unleashing of rational and informed self interest through economic processes in meaningful commercial activities which breed in human beings an independence of mind and ability to make and to judge the world, judge what’s right and what’s wrong, to make decisions for themselves. He said the Scottish Enlightenment as it impacted the USA was an understanding of the principles of property. Property is the resource and a resource is the basis of having an affordable society. Business is the wealth creator of our society.
According to Adam Smith and David Hume, both of them Scots, commercial private enterprise is, in fact, the driving engine of change and human progress. The free market is more than just a place where goods are exchanged. It is really the clearinghouse of civilization because civilization is not only about the exchange of commercial products between the customer and businessperson, between consumer and producers but also the exchange of ideas among scientists, among intellectuals within the larger culture as a whole. That’s the focus that the Scottish Enlightenment gave the role of commercial interest as the driving creative productive force in society.
"Economic growth is the fuel that makes new jobs, creates new industries, and helps your hard work pay off...Growth expands the tax coffers nationally and locally, enabling investments for the future...Growth is not complicated. It is a force of nature. But when it stalls, as it has for the last four years, it will not return without effective leadership. A great leader understands and applies the power of incentives to encourage growth. Incentives appeal to a basic human instinct and motivate productive choices. They are used throughout our lives from grades in school that encourage learning and higher performance, to the incentives we use at work through pay, bonuses and promotions to recognize and encourage accomplishment. Incentives are the most powerful tool a government and its leaders have to spur economic growth.
"Every voter needs to ask which candidate will offer the most incentives to get our economy growing again. For example, which candidate will look at tax policy as an incentive to spur growth? Capital gains are taxed at a lower rate in our tax system today to recognize and encourage people to put their money to work. That money in turn gets invested in businesses which hire and expand. That tax incentive encourages risk taking and investment for growth. Which candidate understands the power of tax incentives?
"Which candidate understands how to effectively apply an incentive to encourage businesses to invest in job training? It is a tragedy today that there are jobs available but not enough people trained to fill them. Which candidate would streamline the muddle of ineffective programs today and encourage corporations to sponsor training programs through a simple, universal incentive? A properly-sized tax credit for job trainees hired over the next five years would do the trick.
Which candidate will review every line of the tax code and regulation to assess its relevance and its complexity? If there is a simpler, clearer way to meet the goals, the regulation should be rewritten. If the regulation is outdated, it should be scrapped. Job creators, particularly small businesses, are looking for clarity and certainty: certainty from the tax code, certainty on the regulatory environment. Business leaders cannot create jobs when they cannot accurately assess the impact of taxes and regulations on their business…
"Incentives should not be confused with disincentives, their ugly step-sisters, which are based on penalties and don’t motivate progress. They stifle investment and innovation. Today, disincentives abound and are on the rise. Increased taxes, in whatever form, are a disincentive to earn, to spend, to save and invest…
Today, our fundamental problem is a lack of economic growth and no attention to the incentives that can re-ignite it. The test for deciding who should be our next President is who understands that and will put the pieces in place to solve it. Our economy, job prospects, investments and retirement plans will get substantial help by picking the growth candidate. Which candidate has the record to arrive at the big decisions and incentivize growth?" - Charles R. Schwab, "Fundamental Economic Requirements For Our Next President" Forbes, 14 October 2012.
Public officials do not have a monopolistic knowledge in managing economic affairs. It is a collective of business (producers and industrialists, traders and service providers); regulators (public officers); and labourers.

Please now read this, www.investopedia.com/articles/investing/022415/worlds-top-10-economies.asp
Sources
[1] Public Office Charter of Zimbabwe www.facebook.com/notes/shingai-rukw...
[2] Constitution of Zimbabwe (2013) www.constituteproject.org/constitut...
[3] Economic growth www.investopedia.com/terms/e/econom...
[4] Understanding Supply-Side Economics www.investopedia.com/articles/05/01...