On a recent trip to Italy, having been invited by a colleague to look at some business possibilities at the Milan Trade Fair, I enquired of my host what the situation was in Italy. He started to lament the political and economic situation that they were facing. The entrepreneurial but sex driven Ex-President Berlusconi had tried his best but was beaten by the political system in the country. He had started out as an entertainer on a cruise line and had built up and impressive business empire which business included newsprint, television and radio. He had been voted in as President and controlled the propaganda machine as well!
It really was a rag to riches story but why would someone who was able to build up such an empire and then decide to serve his country fail so abysmally in turning the country around. All he is remembered for today is sleaze.
Italy is in serious debt and the current government is trying to salvage the situation by putting in place proper fiscal and accountable policies along with looking inwards at what they have been doing wrong. It is the system that is bad, it is the political system that was bigger than Berlusconi and defeated him. He grappled with the unions, bureaucrats and the mafia, who had decided that corruption in government, would give them a much better return than the protection racquet and drugs trade that is their traditional domain. Just because you are good at one thing and have excelled in it, does not mean that you are good at everything. We should all learn from this, I am sure that Berlusconi has.
The same script is raging throughout the European Union and we have countries like Greece, Spain and Portugal, struggling to keep things afloat but refusing to understand that there is something fundamentally wrong with the way that they have been carrying on. The system is not sustainable and the solution is to understand what has been done wrong.
What I found encouraging was the fact that Milan was a building site. The product fair ground that we attended was quite impressive and was an improvement on the last one that I had visited. I was shown the master plan of the new and rejuvenated Milan with on-going upgrade of the roads and underground systems, along with new buildings and infrastructure, to host a world expo in 2015.
What are they doing? They are backing themselves and recalibrating. Italy is a nation that has none or very few natural resources. They have had to produce and export to survive. They are inviting the world to come to Italy and showcase their products, to see what they can do and to kick start new business for their people.
I went to a German stand where they were proud to inform me that they were now collaborating with the Chinese and had opened a plant there to reduce their costs and become more competitive. Yet they were here in Italy, looking for new business and by their presence aiding the Italian economy. (The world is now a village o!)
The Germans are the people in the European Union that are propping up the failing states. This is because they recognised the looming problem in good time and put in austerity measures, long before it became a crisis. They also shed the wasteful salaries and the excessive social services that the state was bearing, in order to stabilise their economy. They created new jobs by optimising their products and carried their people along. They saw the writing on the wall, before it became a problem. It is quite impressive. They are holding the rest of the European Union together and advising on the way forward. The break up of the European Union is not an option for them, as it will leave them exposed and vulnerable to stronger economies and further erode theirs, as the fortunes of their neighbours will affect their economy too. The countries of the European Union are some of their best trading partners.
Here in Nigeria, the government’s answer has been to raise the price of petrol and on the 1st of June, raise the electricity tariff. Our leaders must understand that the machinery that is government needs to be efficiently run.
They should understand that Nigeria’s issue is not the fact that there is oil in the Niger Delta but the fact that we must improve in the areas that we are lacking. We must improve the exploitation of our natural, mineral and human Resources. Pool these strengths together and build a powerhouse with the trust of the people. We need to recalibrate our minds and look at the global picture. This is the only way that we will survive.