Economy Model Although It Claims That It Is Applying a Market Economy Model As Stipulated in the Economic Vision

The Kleptomaniac Leadership and his Destructive Role on the Economic Dimension of Nation Building An Illustration of the Manipulative and Destructive Self-Appointed Dictator and his Cohorts in Eritrea Paper Presented at the 16th International Academy of African Business and Development (IAABD) Conference from May 13-16, 2015 at Strathmore University, Nairobi, Kenya By Desalegn Abraha, Ph. D Associate Professor in Business Administration Email: [email protected] Abstract: This article examines the Economic Dimension of Nation building in light of the economic vision adopted in 1994. Both secondary and primary data are used to write this article. The primary data is collected through telephone interviews, personal interviews and focus-group discussions with some veteran liberation fighters, former government officials, business men and some people who were holding key positions in some government institutions and who have experience and knowledge as to how the market operates. The main findings show that the kleptomaniac leadership has committed an economic, legal and ethical blunder scoring one of its main failures in the economic dimension of the nation building process. This is due to the fact that it has applied a militarist and one man owned, designed, decided and miss managed command economy model although it claims that it is applying a market economy model as stipulated in the economic vision. Moreover, it is to be indicated that the dysfunctional militarist and one man owned, designed, decided and miss managed command economy model is not properly planned and it is poorly coordinated and terribly mismanaged. This reality has a serious negative consequence on the economic, social, cultural, diplomatic and political conditions of the country. The other finding of this study is that the reason why the failed, i.e. kleptomaniac leadership applies a militarist command economy model is because it clearly understands that to maintain and strengthen its political power it has to have a full ownership and control of all the economic, financial and human resources in the country. The main reason why the self appointed dictator does not implement the economic vision is because the vision was not designed to be implemented but to help the dictator to get enough time and to create the conditions necessary to steal the economic resources of the country as a means of achieving his political dreams. The other reason for the failure of the economic dimension of nation building is the lack of a competent and authentic leadership who possesses the qualities of an effective, legacy building and developmental leadership. 1. INTRODUCTION Inspired by the conflicting declarations and ambiguities about the economic policy of the Eritrean government and as the measures the government takes differ from what it is stipulated in the macroeconomic policy and from what it promised to its people in different occasions and how the Eritrean market was managed, structured and functions (see, the Multinational Monitor, 1996, PP.2-3; Africa Business, 1997, P. 33; Business America, 1997; Africa Business, 2001 and Afrol News, 2003); Abraha (2010) conducted a study to identify the economic model applied in Eritrea. The results showed the economic model applied in Eritrea is a one man decided, controlled and managed militarist command economy model despite the conflicting signals given by the government. The other conclusion drawn from this study was that the Eritrean government had built a command economy network of relationships to create a monopolistic market position to serve the economic institutions owned by the manipulative dictator. Likewise, observing what the government does in practice deviates from what it promises to the business community, Abraha (2010) examined a new private business establishment processes in the strictly the dictator controlled and mismanaged market. The results showed that the business environment is characterized by many more obstacles, that is, failure factors, than opportunities, that is, success factors for the establishment of a private firm. The main constraint for the private firms is the absence of the government’s commitment to a market economy and the development of a private sector led economic growth. The other constraint is the existence of the command economy network of relationships, created by the one-man state, which private firms find extremely difficult to penetrate and to develop a market position in. The main reason why private firms can’t penetrate this network is that there is a very strong interdependence among the dictator owned enterprises active in this network as importers, financiers, producers, transporters, suppliers, customers, facilitators, and whatever is necessary to dismantle the private sector and to build and strengthen the one man owned economic institutions and one man owned economy. The authors’ findings in the study of which economic model is applied and the establishment processes of private firms in combination with the very promising national vision enshrined in the National Charter of Eritrea (Charter 1994: 10-11) adopted by the 3rd congress of the EPLF/PFDJ, February 10- 16, 1994, created an interest on the same author to evaluate the implementation of the political, cultural, social visions, goals, programs, strategies and to find out how the mobilization and alignment of people to realize the vision is carried out and managed. With this aim in mind, Abraha in (2010, 2012 and 2014) examined the social, cultural and political dimensions of the nation building processes. As a continuation of those studies and based on the recommendation of Abraha (2009, 2010, 2012 and 2014), applying the further developed version of the original model, i.e. the conceptual framework, the main purpose of this article is to examine the economic dimension of nation building and the role of leadership in the management, development, implementation and achievement of the economic vision, goals, programs, strategies by mobilizing and aligning people to realize the vision as important components of nation building. Moreover, this article attempts to assess whether the economic dimension of the nation building was successful or not and to determine the reason for success or failure and to make further recommendations for the successful achievement and implementation of the economic vision and goals. It concludes by assessing the appropriateness of leadership to the task of the economic dimension of nation building applying the conceptual framework developed for that purpose. There are two additional reasons for conducting this study; (i) there is an acute shortage of an effective, developmental, quality, competent and authentic leadership in Eritrea in particular and in Africa in general which can accomplish the task of nation building successfully. The absence of the authentic and competent leadership in Africa and specifically in Eritrea is one the main reasons for the mismanagement and waste of the abundant and precious resources in the continent. (ii) Moreover, there is no adequate knowledge of nation building process and what is the prerequisite for the success of nation building both in Eritrea and Africa. With those shortages in mind, the current study attempts to deepen, broaden and develop further our knowledge of the nation building and the role of leadership in the nation building process. Deepening and broadening our knowledge can contribute to the solution of the absence of appropriate or developmental leadership which is alarming and which is getting worse and worse in due course of time. If the purposes defined so far are achieved the resources in Eritrea in particular and Africa in general can be properly managed and can further play a significant role in nations building in particular and in the development of the economies of the continent in general. Moreover Eritreans are diametrically divided on their understanding regarding the success/failure of the proper implementation and on the success of the economic dimension of nation building and on the question of the appropriateness of leadership to carry out this task successfully. Those who belong to the opposition argue that the economic dimension of nation building was a complete failure and they claim the failure of the economic dimension of nation building to be due to the absence of appropriate, developmental, effective, quality and authentic leadership to plan, lead and to implement the task successfully. There are also other elements in the opposition camp who maintain divergent views and they claim that the leadership is not at all committed to implementing the national economic vision as it has a hidden vision which is contrary to the official vision enshrined in the National Charter and in the constitution. The supporters of the illegal government claim that the economic dimension of nation building is extremely successful as the leadership is appropriate to perform the task and is at the same time committed to implement the vision of nation building. In light of the views maintained by the two factions, i.e. of the opponents and the supporters (proponents) of the illegal government, the current study aims to bridge or to at least to reduce the difference among the two groups with divergent views which in its turn can create harmony among the people and which can also facilitate the nation building process and the effective management of resources in the country. Finally, this article attempts to highlight whether

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