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Military industry and national economy

Published by Guardian on Thu, 30 Aug 2012


CURRENT official measures to position the Defence Industries Corporation of Nigeria (DICON) into spearheading a military industrial complex, and consequently a major economic catalyst may be a bit late, coming 48 years into its establishment; but it is nevertheless a cheery development being in tandem with endeavours of military authorities worldwide, and as a measure to revive the ailing national economy. It will be necessary to harmonise the corporation's plans with the wider national economic blueprint.Truly, the military is not meant only for war; it has other important collateral functions that are healthy for the overall economic development of society. This conventional truth may not have been emphasised in these parts due to the rent-seeking political and military classes, but a renewed awareness appeared to have dawned on the Nigerian military to boost its industrial capacity by manufacturing some of its basic military wares. The 2012 Nigeria Army Day celebration provided opportunity for the military to showcase its know-how in this respect as President Goodluck Jonathan commissioned DICON's tactical ballistic (bullet proof) vest factory complex, a joint-venture undertaking with the Israeli firm, Maron-Dolphin. It will produce ancillary military wares. Earlier, the Nigerian Navy had its own Seaward Defence Boat commissioned, while the Armoured Personnel Carriers (APCs) produced by the Nigerian Army Engineering Corps was also commissioned by the President. These developments constitute a basis for optimism given the fact that when DICON was established about 48 years ago, it aimed at achieving a measure of self-sufficiency in the production of required military wares for the Nigerian armed forces.The central issue is that the country is on the path to building a military industrial complex, not in the sense of rent-seeking and clientelistic relationship between politicians and defence industry players that has come to characterise its usage, but rather its economy of scale and domino effect. Defence industry has been a leader elsewhere in terms of creativity and invention of cutting-edge technologies. Widely used communications gadgets today such as Internet communication technology are of military provenance. This is the type of chain effect that a flourishing defence industry in the country would have on the national economy. In budgetary terms, it will bottom out the capital expenditure on importation of military hardware, as it will invariably reduce unemployment in the country. It should be encouraged. The President spoke well when he said that before any importation, it had to be proven beyond doubt that the country is not producing the products. Such a policy has the potential to ensure a central role for the defence industry in the national economy and up its contribution to the Gross National Products (GDP).This is the case in Egypt and Pakistan, two countries whose military administrations play significant role in economic development. The Egyptian National Service Project Organisation (NSPO), a Ministry of Defence subsidiary, focuses on production of civilian goods, beyond the manufacturing of military wares. By some estimate in 1985 alone, the Egyptian army contributed about 18 per cent of the total Egyptian food production and by 1994, the Egyptian army owned 16 factories that employed about 75,000 workers and producing 40 per cent solely for the civilian market. The army also participates in the management and production of water and electricity, beside construction works. The Pakistani military is an octopus with presence in every sector of the country's economy, beside the Pakistan Ordnance Factory and Heavy Industry Texila, which produce a wide range of items for use within the country and abroad. The nuclear-armed military maintains a national logistic cell with a transport fleet comprising 2,000 heavy-duty vehicles. Pakistan Army and Frontier Work Organisation have jointly constructed and maintained critical communication networks, all of these without any financial assistance from the government.Before now, the Nigerian army missed the opportunity to develop Nigeria's military industrial complex. The inventiveness of the secessionist enclave of Biafra could have, with the right leadership, provided the pioneering base for a robust defence industry after the civil war. The U.S. armament industry was similarly sired by its 19th century civil war. That country harnessed all the by-products of the war to build a strong defence industry that is the envy of the world today.DICON needs to be augmented by a few more assembly lines to make it a truly industrial military complex to the rebound of the national economy. It should not become another white elephant project, and should be carefully steered away from corruption and the meddlesomeness of the political class. Importantly, the minders of defence establishment should synergise with research institutions/universities to harness budding ideas that will enhance not only the military, but other sectors of the economy. This can also bring the whole idea of 'medium power' back on the agenda. But projects like this are not always favoured by the industrial giants in the West that may attempt to stifle this initiative and constitute real constraint to the blossoming of the country's objectives. There is need to sharpen mettle to confront this challenge when it arises.
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