We are in trouble: Alweendo

NAMIBIA is no way near reaching its own development targets and needs drastic intervention in its labour market and education system to get back on track, Bank of Namibia Governor Tom Alweendo has warned.

‘We can no longer pretend that everything is in order,’ the Governor said in his annual address on Thursday evening.Namibia aims to be an upper-income country, with a per capita income of US$17 000, and an unemployment rate of below five per cent by 2030. However, the way things are going now, the country will have a per capita income of only US$10 000, while the unemployment rate will likely be higher than the official 36 per cent now, Alweendo said.’All I know is that we, all of us, need to do something fast,’ the central bank chief urged.His suggested turnaround kit includes a less cautious economic development approach, better salaries for teachers, focus on transport infrastructure, tourism and agriculture and forward-looking labour unions.Currently, 28 per cent of Namibian households of four have to live on less than N$262 a month. Fourteen per cent have to survive on less than N$185 a month, Alweendo said.’Let us for a moment pause and reflect on what it means to be in this category.’It could well mean that the person cannot feed herself; it means she cannot provide her child with the necessary education; and she cannot afford a decent shelter,’ the Governor said.According to the latest Afrobarometer, 25 per cent of Namibians had to go without anything to eat ‘several times’ last year. About 14 per cent had nothing to eat on ‘many’ occasions, while 18 per cent were without food ‘once or twice’ during the year.Sustained and high economic growth, and not social safety nets, are the only proven ways to fight poverty, he said.’It is a pity that the responsible people for collecting employment statistics are not able to provide the latest unemployment figures.’The last official figure, that of 36 per cent, was released in 2004. However, economists in the private sector estimate that the rate may be as high as 50 per cent.The Governor furthermore said that unemployment is at levels ‘where anywhere else it will be declared as a crisis’.The sad thing, according to Alweendo, is that 60 per cent of those without work are young people with little education.’Youth unemployment will result in too many shattered dreams, it leads to loss of identities and lack of zeal for life in general,’ he warned.Education is a good place to start fixing the problem, the Governor feels.’The most effective way in which we can address the quality of our education system is when education is once more regarded as a meaningful profession to pursue,’ Alweendo said, adding that education is currently seen as ‘the profession of the last resort’.’Our research suggests that the young people who enrol to become teachers are those who have passed grade 12 with the lowest points,’ he said.It is therefore not surprising that that Namibia has been unable to turn out the skills the economy so badly needs.’The only way to change this is to make teaching an attractive profession,’ Alweendo said.’As a first step, by starting to reward our good teachers and educators commensurately.’He also called on labour unions to ‘look beyond the interest of their immediate constituent’.’What is good for the workers is not necessarily good for the country. It does not help we protect a few jobs at the expense of lower future unemployment,’ Alweendo said.The Governor said by channelling more resources to transport infrastructure, tourism and agriculture over the next decade, the economy could grow by nearly seven per cent, ‘which is more in line with what is required to meet Vision 2030’.He also called for an export-led development strategy, more focus on micro-business level and strictly enforced accountability.jo-mare@namibian.com.na