The Pothole Economy: Filling People’s Pockets

Namibia and namibians have been blessed with generous rains since the beginning of the year, and not a moment too soon.

Only our roads are not too pleased by the abundant showers.

Namibia has some of Africa’s best, if not the best, road infrastructure, but it was no match for the unrelenting rain.

Dodging potholes has become a national sport. Some are so big you feel that a bridge is needed to traverse them.

These potholes present an immediate opportunity for Namibia and Namibians. The potholes don’t just need to be filled, they need to be fixed permanently.

Local authorities across Namibia have requested N$500 million from the Road Fund Administration (RFA) to repair roads damaged by recent rainfall.

RFA’s chief executive Ali Ipinge says local authorities have so far applied for half a billion dollars to repair roads.

This would inject an extra N$500 million into local economies; imagine what that would do for people. 

KEYNES AND THE GRASSROOTS

As an economist, I have always strongly advocated for stimulating the economy from the grassroots level, or in this case, from a pothole level, up.

You cannot only focus on large-scale projects in a country if people at every level are not employed and cannot make a living. 

I look at economic theory and how we can apply it in the real world.

In this case, Keynesian economics apply.

It was developed by John Maynard Keynes and emphasises the role of government intervention in stabilising the economy.

It suggests that during economic downturns, governments should increase spending and reduce taxes to boost demand and create jobs.

If we can temporarily increase spending, paying local unemployed Namibians to fill the potholes at a local level, it will immediately help catalyse the economy. 

In Windhoek, we have seen this in action – when some enterprising locals started filling potholes with buckets and spades.

They received tips from drivers who were grateful not to have navigate canyon-like potholes.

A few days later, the same enterprising young men returned with an old wheelbarrow, filling in longer stretches of road riddled with potholes.

The money they received immediately went back into the local economy when they bought food, consumables and a wheelbarrow. 

EMPOWERMENT

If we are smart, we will recruit these young men, pay them from the N$500 million earmarked to fix the potholes and teach them how to properly and permanently fix the roads.

The return on investment will be immense and will truly show empowerment at a grassroots or ‘pothole’ level across the country. 

In Namibia, we usually award these contracts to one contractor with large overheads, whereas in this case, we can employ people at a truly local level.

This puts money directly into the pockets of the people who need it most, who will immediately spend it within their local communities.

There are potholes countrywide, which means there’s an opportunity to empower every local economy.

• John Steytler is a Namibian economist.