Are We In A Recessed Or Depressed Economy?

From the economic stand point, recession is a downward movement of growth and reduction in  business activities due to general slowdown of market forces. Unemployment, less industrial activity in terms of trade and business are clear characteristics of a recessed economy.
Economic experts all over the world are of the opinion that recession lasts for a given period; from two months up to one year.
Meanwhile, a perennial recessed economy leads to depression, which is a worst and more worrisome state of economic crises. Depression is a period of prolonged economic downturn arising from unending and extreme case of recession. Simply put, the inability of the system to manage recession gravitates to depression.
This is why depression is a compound and complex economic situation often associated with unprecedented decline in people’s income, failure in business activity and high unemployment rate. A depressed economy is prone to several unthinkable painful events.
For instance, it is only in a depressed economy that an employer sees reward for its workers as abomination. The employer-employee relationship turns sour and this ultimately affects production. The economic hardship and uncontrolled inflation in Nigeria today has so impacted negatively on employer-employee relationship. This disconnect, of course, with its multiplier effects, continuously breeds attitudinal change, low morale, low productivity, as it is being witnessed in the civil service today. Or what do you say of a worker who has not enjoyed his promotion arrears for almost two years?
Situating these indices from May 2015 when President Muhammadu Buhari was sworn-in till date, will attest to the fact that Nigerian economic challenges had crisscrossed through recession to depression.  The President himself created a big room for recession to fester by refusing to constitute his cabinet for almost seven months on the excuse that he was looking for the best brains for his cabinet.
Within that period, Nigeria was like a ship without a rudder, as government activities in ministries, department, agencies witnessed a lull. Summarily, the delay in appointing ministers to run the affairs of ministries contributed to the untold economic nightmare we are experiencing today.
When President Buhari finally assembled his team of ministers in November 2015 recession had already reared its ugly head. Worst, after the new ministers resumed duties, rather than moving swiftly to the business of economic recovery, they were engaging in a blame game, pointing accusing finger at former President Goodluck Jonathan’s administration. They did not cease to act as if they were still in the opposition, thereby failed to proffer both short and long term solutions to the ailing economy.
This blame game they embarked on lasted till 2016 and even up to 2017. Unknowingly, this further plunged the recessed economy into depression.
It is sad that the government till this moment has refused to acknowledge that we are in a depressed economy. The manifestation of this socio-economic malady in the people’s lives and health is better imagined.
If President Buhari could feel the shock of a depressed economy as it is manifesting on his health in spite of all the attendant luxury in Aso Rock, what becomes of the fate of common Nigerians on the streets? If the government cannot accept or own up its mistakes from the very beginning, how will it agree that we are in a depressed economy?
Although there is no consensus on how to fix economic depression, policy makers must, nevertheless, apply enough openness by cultivating an investment climate that is good and safe to invest. The present circumstance where all government policies and programmes are politicized has not encouraged healthy competition among investors.
It is obvious that virtually all the solutions thrown at the economic depression by the Federal Government, including the bailout funds to some states, the fight against corruption, disbursement of Paris Club refund and approval of modular refineries, among others, have not yielded the desired results. The palliatives have produced little or no results.
To cure economic depression therefore, means that we must embark on grassroot and middle class oriented projects that will raise the standard of living of ordinary Nigerians.
Meanwhile, our financial institutions, particularly the Central Bank of Nigeria, in a depressed economy like ours, must ensure that the unit of account in many contracts money is managed optimally. This is key because if the value of exchange is over expanded, the result will be value fall.
Lilybox is a Port Harcourt-based journalist.

Kubi Lilybox