On-why-nigerian-billionaires-are-not-intellectually-driven-in-a-system-that-is-based-on-connections-and-not-competence-and-the-future-cost-implications-on-the-countrys-development
September 7, 2020 | News
ON WHY NIGERIAN BILLIONAIRES ARE NOT INTELLECTUALLY-DRIVEN IN A SYSTEM THAT IS BASED ON CONNECTIONS AND NOT COMPETENCE – AND THE FUTURE COST IMPLICATIONS ON THE COUNTRY’S DEVELOPMENT
Images Showing Bill Gates, Steve Jobs, Mark Zuckerberg & Richard Branson
I have reiterated in times past that, in my own opinion, majority of Nigerian billionaires are best described as worthless because most of them are nothing but crooks, who have become billionaires without evidence of legitimate means of income. And they have become rich and wealthy not by hard work, competence or their level of intelligence/IQ, but by their ‘connections’ and access to the Government and public Office holders. The sad part is that the society worships them nonetheless. In fact, the issue of theft/stealing/thievery/misappropriation – be it in any form, practice, degree, dimension, and at any level; have been the bane of Nigeria’s expected growth and development across all boards since we became an independent nation and Federation. And often times, we do not talk about the spill over effects of this very unhealthy trend and the future cost implications this has on our nation’s growth and development. For instance, this has left us with an Economic System that does not give room for Economic Opportunities for the majority of the people, which has also made the nation to constantly lose its top talents to other nations that thrives in competence and not connections.
A recent video I came across on social media, of a young South-African social commentator who threw more light on this subject matter, clearly nailed the points I wish every Nigerian would wake up to its reality. Talking about Economic Systems that provide/give Economic Opportunities for people, he noted that “if you want to understand what it takes to thrive in an economic system, look at the top 25 wealthiest people in that system. And then look at the top 25 most respected people in that system. You will understand everything you need to know about that economic system. If you live in a country where the top 25 wealthiest people, and the top 25 celebrated people, are people who are Entrepreneurs; who built businesses from the ground-up – who did it without ‘Connections’ to any politician or government/government huge contracts.
“I am talking about guys who started from the scratch to have one customer, and from there to a million customers paying them a dollar, etc. And that guy builds his business to become one of the wealthiest people in that country. You can bet, that in that country, the economic system is one of a Free Market, and Effort marching Rewards. And that economic system is one about ‘competence.’ Usually, not always, in those markets, you will find the people with the highest IQ, tend to rise toward the highest echelon of prosperity and wealth. Here is an example. If you look at the US, and you ask who are the billionaires that you know about, that have done really well? Mark Zuckerberg – top IQ, built a business for billions, now he is a billionaire; Jeff Bezos – top IQ, highly educated, built a business in billions, now he is a billionaire… I could just keep going. But if you look at the guys in the US that have made extraordinary amount of money, these are people who have literary shifted the trajectory of the economy and systems; Lawrence (Larry) Page, Reid Hoffman who founded LinkedIn, Steve Jobs, Henry Crowell, etc., all of them have one thing in common. Even our very own Elon Musk, left here (South Africa) to go there because he is an IQ-driven guy. And he recognized (I’m going to make that point), that we do not live an IQ-driven society. So, he went; ‘I am going to go where my strength will give me the highest reward. Am going to go the environment where I’m going to generate the highest reward based on my strength because I am that kind of guy that would build a business that is driven by competence, not connections.’ Does that make sense?
“Juxtapose that with many of our economies here in the African continent… If you look at Africa, and then look at Latic America, look at many of the countries in Asia too because we love to talk about the Asia economies. But the truth is that many of the Asia economies are actually similar to ours. Even in Russia, the economic system is very similar to ours. Those economic systems are not necessarily driven by their talents, or competence, or capabilities. Of course, you have to be smart enough to survive, but you don’t have to be the smartest of the pack. They are also not driven by your level of competence because there are people who are much more competent than you who don’t necessarily have the same access. What they are driven by, tends to be; access to power. So, it is about connections, and not competence. And they also tend to be driven by access to massive state funds opportunities that can generate ‘Instant Wealth’ for you, instant Wealth!
“So, in those markets, all you’ve got to do is to be close enough to somebody in power. Get access to an amazing opportunity that can generate you instant wealth like tomorrow – you are sorted, you’re fixed and made. And one of the ways you know this is true, is usually what people in such markets do. At the minute they generate wealth, and they get free cash flow from that wealth, they will ‘Externalize the capital.’ They will take their money, and they will take it out of their country. That is why there are very few people who do government tenders, and do venture capital. Because why would I take my money that I’m earning in a government contract, and invest in a high-risk alternative, or asset instrument that is highly-liquid, where I can lose my money? I’m not going to do that! Why? Because in that market, and in that space, the view of the future is different. See this, if I am living in a market that is driven by competence and free market, I tend to take a view about the future based on my own competence and abilities because it is driven by competence and a free market. So, I can compete because I believe that the future is good. But if I live in a market that is driven by connections, then I don’t know what the future holds because if the people I am friends with loses their seat, loses their power or is out of office, I don’t know where things would go.
“So, what I’m going to do; the minute I have money, I’m going to externalize it, take to another country. How do you know this is true? Look at who buys the properties in Switzerland. Look at who buys the properties in Monaco. Who are these guys? And how is that money coming from a country where it is being reinvested in that country? But the people of that country are looking for ‘Foreign Direct Investments (FDIs). So, we are sitting here and saying; foreigners should come and invest in our own countries but when we generate money in our own countries, we are taking that money and externalizing it in other countries and outside economies. We are buying homes in Leon, buying homes in the South of France, buying homes in Lichtenstein. We are putting our own monies in Pounds. And if you are really, really conservative, you got to take some of that money and put it in gold. But, what you’re not going to do is to take your money and put in a new business in that same country because I don’t know what the future look like.
“The cost of all of this is that, top talents leaves. And the reason top talents leaves is because top talents wants to live in an economy that is driven by Competence and not Connections. So, if I am top talent. If I was top 10% of my class in all my schooling career, and I am top 10% of my performance quota in all of my professional career, but I don’t have real chance of generating long term wealth because of the system, I will leave. And I will go to an environment that will allow me to leverage my assets. Where do you find these top talents? Go to Canada, go to the US; some of the smartest Bankers are Nigerians. Like some of the smartest people in the financial system in the UK, are Nigerians. Some of the smartest people working in technology in Malaysia, are Kenyans. Some of the smartest people working in construction, Engineering, in Australia, are South Africans. Some of the smartest farmers in Eastern Europe and the Middle East, are Zimbabweans. Why? Because top talents will go where they will get rewarded, and where their assets will be leveraged for their own personal benefit…”
Now, I am sure many of us would understand why many of our Nigerian best brains and talents in the labour force are daily leaving the country in droves for better opportunities out there where their assets and potentials would be rewarded for competence. Now, we would understand why many Nigerian politicians and ‘overnight billionaires’ do not invest back in the country from which they have made their ill-gotten wealth in the first place. Now, we would understand why many of them in this category, would prefer this unhealthy statuesque of ‘ones connections’ to remain, especially when it avails them the opportunity of instant wealth, which is often to the detriment of the masses. Now, we would understand why Nigeria, as a developing country like most of its counterpart in Africa, would remain a Third-world country that takes one step forward, and three two steps backward, in its development strides. Now, many of us would understand why I said majority of Nigerian billionaires, did not get their wealth through hard work but through Free access and connections to governments’ patronage, or their ability to front for their masters who are usually in government at one time or the other. These set of wealthy Nigerians, cannot be classified as real billionaires in the UK and US, where they make their wealth through hard work, competence and intellectual capability.
Zik Gbemre.
February 21, 2020
We Mobilize Others to Fight for Individual Causes As If Those Were Our Causes
Images Showing Bill Gates, Steve Jobs, Mark Zuckerberg & Richard Branson
I have reiterated in times past that, in my own opinion, majority of Nigerian billionaires are best described as worthless because most of them are nothing but crooks, who have become billionaires without evidence of legitimate means of income. And they have become rich and wealthy not by hard work, competence or their level of intelligence/IQ, but by their ‘connections’ and access to the Government and public Office holders. The sad part is that the society worships them nonetheless. In fact, the issue of theft/stealing/thievery/misappropriation – be it in any form, practice, degree, dimension, and at any level; have been the bane of Nigeria’s expected growth and development across all boards since we became an independent nation and Federation. And often times, we do not talk about the spill over effects of this very unhealthy trend and the future cost implications this has on our nation’s growth and development. For instance, this has left us with an Economic System that does not give room for Economic Opportunities for the majority of the people, which has also made the nation to constantly lose its top talents to other nations that thrives in competence and not connections.
A recent video I came across on social media, of a young South-African social commentator who threw more light on this subject matter, clearly nailed the points I wish every Nigerian would wake up to its reality. Talking about Economic Systems that provide/give Economic Opportunities for people, he noted that “if you want to understand what it takes to thrive in an economic system, look at the top 25 wealthiest people in that system. And then look at the top 25 most respected people in that system. You will understand everything you need to know about that economic system. If you live in a country where the top 25 wealthiest people, and the top 25 celebrated people, are people who are Entrepreneurs; who built businesses from the ground-up – who did it without ‘Connections’ to any politician or government/government huge contracts.
“I am talking about guys who started from the scratch to have one customer, and from there to a million customers paying them a dollar, etc. And that guy builds his business to become one of the wealthiest people in that country. You can bet, that in that country, the economic system is one of a Free Market, and Effort marching Rewards. And that economic system is one about ‘competence.’ Usually, not always, in those markets, you will find the people with the highest IQ, tend to rise toward the highest echelon of prosperity and wealth. Here is an example. If you look at the US, and you ask who are the billionaires that you know about, that have done really well? Mark Zuckerberg – top IQ, built a business for billions, now he is a billionaire; Jeff Bezos – top IQ, highly educated, built a business in billions, now he is a billionaire… I could just keep going. But if you look at the guys in the US that have made extraordinary amount of money, these are people who have literary shifted the trajectory of the economy and systems; Lawrence (Larry) Page, Reid Hoffman who founded LinkedIn, Steve Jobs, Henry Crowell, etc., all of them have one thing in common. Even our very own Elon Musk, left here (South Africa) to go there because he is an IQ-driven guy. And he recognized (I’m going to make that point), that we do not live an IQ-driven society. So, he went; ‘I am going to go where my strength will give me the highest reward. Am going to go the environment where I’m going to generate the highest reward based on my strength because I am that kind of guy that would build a business that is driven by competence, not connections.’ Does that make sense?
“Juxtapose that with many of our economies here in the African continent… If you look at Africa, and then look at Latic America, look at many of the countries in Asia too because we love to talk about the Asia economies. But the truth is that many of the Asia economies are actually similar to ours. Even in Russia, the economic system is very similar to ours. Those economic systems are not necessarily driven by their talents, or competence, or capabilities. Of course, you have to be smart enough to survive, but you don’t have to be the smartest of the pack. They are also not driven by your level of competence because there are people who are much more competent than you who don’t necessarily have the same access. What they are driven by, tends to be; access to power. So, it is about connections, and not competence. And they also tend to be driven by access to massive state funds opportunities that can generate ‘Instant Wealth’ for you, instant Wealth!
“So, in those markets, all you’ve got to do is to be close enough to somebody in power. Get access to an amazing opportunity that can generate you instant wealth like tomorrow – you are sorted, you’re fixed and made. And one of the ways you know this is true, is usually what people in such markets do. At the minute they generate wealth, and they get free cash flow from that wealth, they will ‘Externalize the capital.’ They will take their money, and they will take it out of their country. That is why there are very few people who do government tenders, and do venture capital. Because why would I take my money that I’m earning in a government contract, and invest in a high-risk alternative, or asset instrument that is highly-liquid, where I can lose my money? I’m not going to do that! Why? Because in that market, and in that space, the view of the future is different. See this, if I am living in a market that is driven by competence and free market, I tend to take a view about the future based on my own competence and abilities because it is driven by competence and a free market. So, I can compete because I believe that the future is good. But if I live in a market that is driven by connections, then I don’t know what the future holds because if the people I am friends with loses their seat, loses their power or is out of office, I don’t know where things would go.
“So, what I’m going to do; the minute I have money, I’m going to externalize it, take to another country. How do you know this is true? Look at who buys the properties in Switzerland. Look at who buys the properties in Monaco. Who are these guys? And how is that money coming from a country where it is being reinvested in that country? But the people of that country are looking for ‘Foreign Direct Investments (FDIs). So, we are sitting here and saying; foreigners should come and invest in our own countries but when we generate money in our own countries, we are taking that money and externalizing it in other countries and outside economies. We are buying homes in Leon, buying homes in the South of France, buying homes in Lichtenstein. We are putting our own monies in Pounds. And if you are really, really conservative, you got to take some of that money and put it in gold. But, what you’re not going to do is to take your money and put in a new business in that same country because I don’t know what the future look like.
“The cost of all of this is that, top talents leaves. And the reason top talents leaves is because top talents wants to live in an economy that is driven by Competence and not Connections. So, if I am top talent. If I was top 10% of my class in all my schooling career, and I am top 10% of my performance quota in all of my professional career, but I don’t have real chance of generating long term wealth because of the system, I will leave. And I will go to an environment that will allow me to leverage my assets. Where do you find these top talents? Go to Canada, go to the US; some of the smartest Bankers are Nigerians. Like some of the smartest people in the financial system in the UK, are Nigerians. Some of the smartest people working in technology in Malaysia, are Kenyans. Some of the smartest people working in construction, Engineering, in Australia, are South Africans. Some of the smartest farmers in Eastern Europe and the Middle East, are Zimbabweans. Why? Because top talents will go where they will get rewarded, and where their assets will be leveraged for their own personal benefit…”
Now, I am sure many of us would understand why many of our Nigerian best brains and talents in the labour force are daily leaving the country in droves for better opportunities out there where their assets and potentials would be rewarded for competence. Now, we would understand why many Nigerian politicians and ‘overnight billionaires’ do not invest back in the country from which they have made their ill-gotten wealth in the first place. Now, we would understand why many of them in this category, would prefer this unhealthy statuesque of ‘ones connections’ to remain, especially when it avails them the opportunity of instant wealth, which is often to the detriment of the masses. Now, we would understand why Nigeria, as a developing country like most of its counterpart in Africa, would remain a Third-world country that takes one step forward, and three two steps backward, in its development strides. Now, many of us would understand why I said majority of Nigerian billionaires, did not get their wealth through hard work but through Free access and connections to governments’ patronage, or their ability to front for their masters who are usually in government at one time or the other. These set of wealthy Nigerians, cannot be classified as real billionaires in the UK and US, where they make their wealth through hard work, competence and intellectual capability.
Zik Gbemre.
February 21, 2020
We Mobilize Others to Fight for Individual Causes As If Those Were Our Causes