By Saintmoses Eromosele
(Executive Director, Oneghe Sele Foundation, Ewu, Edo State)
Argument For Government Involvement
Economic Stability and Social Welfare:
Government control ensures economic stability, prevents monopolies, and provides essential goods and services to all citizens, reducing inequalities.
Job Creation and Employment Standards:
Government-run businesses create stable jobs, enforce fair wages, and improve working conditions, addressing unemployment and promoting decent work.
Public Accountability and Long-term Planning:
Government businesses prioritize societal goals over profits, leading to sustainable development and provision of public goods like infrastructure and healthcare.
Strategic Control and National Security:
Government control over critical industries ensures national security and strategic resource management.
Argument Against Government Involvement
Inefficiency and Bureaucracy:
Government businesses often suffer from inefficiency, reduced innovation, and poor service due to lack of competition and bureaucratic delays.
Corruption and Nepotism:
Government involvement can lead to corruption, favoritism, and resource mismanagement, undermining effectiveness and public trust. The companies in Edo State that collapsed since 1991 all can be traced to corruption and nepotism.
Stifling Private Sector Growth:
Excessive government control can hinder private sector growth and innovation, reducing competition and consumer choice.
Fiscal Burden:
Unprofitable government businesses can become a financial burden on taxpayers, diverting funds from critical public services.
Conclusion
Balancing government involvement in business requires leveraging both efficiency and social welfare. Hybrid models like Public-Private Partnerships (PPPs) offer a viable solution, combining the strengths of both sectors for sustainable development.
Saintmoses Eromosele writes from his Cassava farm in Ewu
