Stay Cool And Enjoy Capitalism

JUST a few weeks ago, it was the banks that appeared in the court of public opinion.

And now it’s the City of Windhoek. They all stood accused of robbing customers and consumers through some creative banking fees and electricity tariff structures respectively.The banks promised customers that they would explain their fee structures.They haven’t.Maybe they need a retreat to a local lodge to brainstorm and come up with some creative reasons.We have to give them time.But I’m sure the answer would run something like this: “our banking fees are in line with acceptable international accounting standards and practices and also the lowest in the Southern Africa region”.And as for the City, well, customers will have to wait for the managers to return from their holiday in Mombasa, Kenya, before we get an explanation.Now, if I were a judge, I would pronounce on these issues.The City case is fairly simple.And the problem is of our own making.Here you have a country of less than two million people – that’s the population of an average town somewhere in Ghana.The problem came about because one creative idiot in Government decided that, in addition to NamPower, some extra electricity distributors would be needed to serve different regions.This is how these entities with their ironic acronyms of REDs were born.So, for example, if you live in Windhoek and own a house in Oshakati and an apartment in Henties Bay, you will probably receive electricity bills from three ‘different companies’ with three different fee structures.Before the REDs were created, the consumer used to look after NamPower and the municipalities; now there is third child in the family to feed.There are now three sets of CEOs, managers and general managers, distributing electricity, to look after – and they don’t come cheaply.And because of these untenable arrangements, many people are now in the red.Taken together, the two accused, the banks and the City, haven’t done anything wrong.Mind you, Namibia is one big capitalist monopoly – what Henning Melber characterises as: ‘Namibia Pty Ltd’.There is no competition and thus no choices.Thus these entities have the right to fix their prices as they wish.You either buy their services and products or you will be buried.This applies to the other actors in our economy too.So, for example, don’t be fooled by the eventual entry into the Namibian market by a new cellphone company.MTC and the new kid on the block will find some creative ways, just like the banks do, to maintain MTC’s neck-breaking fees.Now the Constitution says Namibia will be a mixed economy.Yes it might be so on paper, but the political leadership has decided that they don’t want that mix – they want it pure.So, they just turn a blind eye as the country slides into a pure private economy at the speed of a supersonic jet.The private and public have been collapsed into one.And unfortunately, not everyone can get onto that jet.The majority have to make do with donkey carts.Most are thus left behind languishing in shacks or townships – basically labour reserves.The only consolation is that capitalism has made it easy for them to bring in pre-paid meters for water, electricity etc. eliminating the need for owning a post office box – which also costs money.And as if the user fees were not enough to strangle many of the poor to death; here comes the municipality again.This time they say: one shebeen per street.The attack on the poor is unbelievable and is coming from all directions – even people at institutions of higher learning have joined in the assault.I laughed when I read about the “one street, one shebeen” decree.I said to myself: how about some of the very long streets like Independence Avenue – the portion starting from the ‘Groot Winkels’ in Katutura, going all the way to Goreangab Dam? In the final analysis, there is no need for the outcry about exorbitant fees and prices.We have opted for this kind of system.We have also elected the current crop of leadership whether they are in Government, the municipalities or parastatals and this is the kind of leadership quality they are able to bring to the table.And as Chief Riruako would say: you either take it or go and hang yourself.But on a more serious note, it is up to the consumers and citizens to go back to the drawing board and to start asking some fundamental questions as to whether this is the kind of economic system and the kind of leadership they want to have.Is the leadership steering the ship to the promised land of prosperity or is it just making sure that the ship doesn’t sink but stays permanently moored in Luederitz harbour? The problem in Namibia is that people behave as if they have no political choice to make and that perhaps fate has sealed everything.Yes, we have an economic system that has no choices presently, but on the political front, I think, we do have some that we can make use of, only if people can start getting out of their boxes.And I’m not talking about ideological choices here.All, I’m saying is that even within the same political party you find individuals with different commitments, skills and understanding.Go for the good ones.But the bottom line is this: if I am a manager of corporate finance at a parastatal making about N$55 000 per month, why should I be bothered by a ‘mere’ ten per cent increase in electricity or water tariffs or high banking or airtime fees etc? These are peanuts.I would rather stay cool and enjoy the system.They all stood accused of robbing customers and consumers through some creative banking fees and electricity tariff structures respectively.The banks promised customers that they would explain their fee structures.They haven’t.Maybe they need a retreat to a local lodge to brainstorm and come up with some creative reasons.We have to give them time.But I’m sure the answer would run something like this: “our banking fees are in line with acceptable international accounting standards and practices and also the lowest in the Southern Africa region”.And as for the City, well, customers will have to wait for the managers to return from their holiday in Mombasa, Kenya, before we get an explanation.Now, if I were a judge, I would pronounce on these issues.The City case is fairly simple.And the problem is of our own making.Here you have a country of less than two million people – that’s the population of an average town somewhere in Ghana.The problem came about because one creative idiot in Government decided that, in addition to NamPower, some extra electricity distributors would be needed to serve different regions.This is how these entities with their ironic acronyms of REDs were born.So, for example, if you live in Windhoek and own a house in Oshakati and an apartment in Henties Bay, you will probably receive electricity bills from three ‘different companies’ with three different fee structures.Before the REDs were created, the consumer used to look after NamPower and the municipalities; now there is third child in the family to feed.There are now three sets of CEOs, managers and general managers, distributing electricity, to look after – and they don’t come cheaply.And because of these untenable arrangements, many people are now in the red.Taken together, the two accused, the banks and the City, haven’t done anything wrong.Mind you, Namibia is one big capitalist monopoly – what Henning Melber characterises as: ‘Namibia Pty Ltd’.There is no competition and thus no choices.Thus these entities have the right to fix their prices as they wish.You either buy their services and products or you will be buried.This applies to the other actors in our economy too.So, for example, don’t be fooled by the eventual entry into the Namibian market by a new cellphone company.MTC and the new kid on the block will find some creative ways, just like the banks do, to maintain MTC’s neck-breaking fees.Now the Constitution says Namibia will be a mixed economy.Yes it might be so on paper, but the political leadership has decided that they don’t want that mix – they want it pure.So, they just turn a blind eye as the country slides into a pure private econo
my at the speed of a supersonic jet.The private and public have been collapsed into one.And unfortunately, not everyone can get onto that jet.The majority have to make do with donkey carts.Most are thus left behind languishing in shacks or townships – basically labour reserves.The only consolation is that capitalism has made it easy for them to bring in pre-paid meters for water, electricity etc. eliminating the need for owning a post office box – which also costs money.And as if the user fees were not enough to strangle many of the poor to death; here comes the municipality again.This time they say: one shebeen per street.The attack on the poor is unbelievable and is coming from all directions – even people at institutions of higher learning have joined in the assault.I laughed when I read about the “one street, one shebeen” decree.I said to myself: how about some of the very long streets like Independence Avenue – the portion starting from the ‘Groot Winkels’ in Katutura, going all the way to Goreangab Dam? In the final analysis, there is no need for the outcry about exorbitant fees and prices.We have opted for this kind of system.We have also elected the current crop of leadership whether they are in Government, the municipalities or parastatals and this is the kind of leadership quality they are able to bring to the table.And as Chief Riruako would say: you either take it or go and hang yourself.But on a more serious note, it is up to the consumers and citizens to go back to the drawing board and to start asking some fundamental questions as to whether this is the kind of economic system and the kind of leadership they want to have.Is the leadership steering the ship to the promised land of prosperity or is it just making sure that the ship doesn’t sink but stays permanently moored in Luederitz harbour? The problem in Namibia is that people behave as if they have no political choice to make and that perhaps fate has sealed everything.Yes, we have an economic system that has no choices presently, but on the political front, I think, we do have some that we can make use of, only if people can start getting out of their boxes.And I’m not talking about ideological choices here.All, I’m saying is that even within the same political party you find individuals with different commitments, skills and understanding.Go for the good ones.But the bottom line is this: if I am a manager of corporate finance at a parastatal making about N$55 000 per month, why should I be bothered by a ‘mere’ ten per cent increase in electricity or water tariffs or high banking or airtime fees etc? These are peanuts.I would rather stay cool and enjoy the system.