Of the total of $19.5 Trillion global FDI flows between 2005 - 2018, $15 Trillion went to OECD countries. This means that 77% of global FDI flowed to 36 (mostly rich countries) out of 196 countries. The rest of the world (mostly Africa) was left to scramble for crumbs.
A THREAD!
A THREAD!
The idea that the "world" is investing more in "emerging economies" is at best a PR campaign and at worse, a lie. The data doesn't support it. Their economic and financial models surely doesn't prescribe it either. To break it down in simple language, WE ARE ON OUR OWN!
The idea that what you need to turn around your economy is a rich knight riding in from the west is a myth. If you don't grow your local economy by creating value through markets creating innovations that creates local jobs, industry and infrastructure, you will struggle.
China did not become the second biggest economy and the biggest exporter by waiting to scramble for FDI leftovers, they did it by creating local value and invoiced it to the world. It was the same principle that built western economies & it's the same principle that'll build ours
When you study the major economies we celebrate today, you will see that their development stems from market creating innovations, that created local jobs, new industries & new govt rev. From Ford in the US to Toyota in Japan and Samsung in S.Korea.
When Mo Ibrahim wanted to invest in telecoms in Africa, he was given every reason to rethink the gamble. The experts in Europe with their data told him "the market is not there....It'll be too expensive....No one will invest". He followed his guts and the rest is history.
If Nigeria is going to develop to the nation of our dreams, it is going to be off the back of the creativity, productivity and value creation of Nigerians and not from FDI crumbs or portfolio gamblers exploiting loopholes in FX policy to make a short-term kill.
How do we begin? Start Buying Naija. When u do so, you're supporting a industry & jobs locally. Every time you buy an imported product, you are helping to pay the salary of somebody abroad and increase their govt rev & GDP. KIA started by selling bicycles. Toyota was initially..
...rejected by the US market until the Camry became the highest selling car in the US. The Sony brothers started producing low quality radios from WW2 ruins before the "Walkman" gave them a break. If we don't support our own, they won't get the needed capital to scale & compete.
Capital is risk-averse. It'll always flow in the direction of safety. The models are there to guarantee this. Rich countries will continue to attract a large chuck of available Capital and when there is crisis, they'll withdraw the crumbs they let go. That's not gonna change ATS.
It is time to be selfish for once. When you buy that local product, know you are helping to keep someone in a job and keeping a organisation afloat and also increase government revenue and increase our GDP. Economic Patriotism is a must if we must develop and grow this economy.
* an organisation.
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