Windhoek – We were lucky as Namibians as the blessed rain we had since the beginning of this year. The whole country is generously immersed and not too soon.
Our roads are the only part of our country that is not very happy with the rain. Namibia has the best, if not the best road infrastructure in Africa, in Africa, but it couldn’t rival the relentless rain. Dodging holes have become a national sport. Some pot holes are very large so we expect to need a bridge to pass through them.
These potholes quickly bring opportunities to Namibians and Namibians. They don’t just need to fill out, they need to be corrected forever. Local governments in Namibia are demanding $500 million from the Road Fund Authority (RFA) to repair roads damaged by recent rainfall. RFA CEO Ali Ipinge said local governments have applied $5 billion so far to repair damaged roads. This will inject an additional $500 million into the local economy. Imagine what it does for people.
As an economist in various roles throughout my career, I have always been adamant about stimulating the economy from the grassroots level, in this case, from the pothole level. If people at all levels are not employed and cannot make a living, they cannot concentrate on large projects in the country.
Paying unemployed people to pay unemployed people can fill the hole.
I look at economic theory and how it can be applied in the real world. In this case Keynesian economics applies. Developed by John Maynard Keynes, it highlights the role of government interventions in economic stabilization, suggesting that during the economic downturn, governments should increase spending, increase demand and create jobs.
If we can temporarily increase spending, and if we can fill the pot hole for local unemployed Namibians at the local level, we will quickly catalyze the economy.
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In Windhoek, this is what happens when some enterprising locals begin to fill the potholes with buckets and spades. They received tips from drivers who appreciated not navigating canyon-like hollows. A few days later, the same enterprising young man returned in an old wheelbarrow and packed a longer stretch of road. The money they received quickly returned to the local economy when they bought food, supplies and a wheelbarrow.
If we are smart, we will recruit these young men and pay from the allocated N$500 million to fix the pothole and teach them how to correct the road properly and permanently. Return on investment is immeasurable and will truly demonstrate empowerment at the grassroots or “pothole” level across the country.
In Namibia, these contracts are usually awarded to one contractor with a large overhead, but here people can be hired at a truly local level. This will put money directly in the pockets of people who need it most. There are pot holes all over the country. This means there is an opportunity to empower any local economy.
