LEAVE NO ONE BEHIND

Sir,

When people spend money, their spending behaviour is usually driven by their basic needs and wants. For those with more money, there is usually an extra element of their spending, which is to signal their wealth and to attain some social status. The same goes for government spending, even though it may seem a little more complicated as it involves spending very large amounts of money involving multiple national and international accounts.

Governments of rich nations tend to spend money on things that will give them global power and status, while developing nations try to spread their every last cent on investments that seek to eradicate poverty. An interesting observation about spending behaviour is that poor people around the world usually spend a significant share of their income on visible expenditure in order to keep up with the wealthy.  

Spending

Unfortunately, spending on frivolous goods has negative implications on asset accumulation, household indebtedness and investments on crucial life essentials, such as food, health and education. The point here is that it is easy to get trapped on spending on the surface for glitz and glamour while the core, which includes the necessities, simply withers away.

Development

In Eswatini we are hanging in the balance as development is definitely happing in this country. If you are not sure, look around: there is a new hotel in Mbabane and the Mbabane Government Hospital is getting a new wing. This is all good, but it seems like we might be, as a country, running into the trap of spending on visible expenditures and status goods while the social necessities take a backseat. Yes, capital spending is a necessary aspect of development and part of the economic engine for growth, but government needs to be careful that the development and growth it spends on does not leave a huge percentage of the Eswatini population behind. What is clear is that the country’s current spending behaviour cannot be sustained forever into the future. Government needs to be thoughtful about spending money to sustain long-run growth and welfare, and it can only do so if it balances expenditure on social goods versus the amount of money it spends on glitz and glamour.

When government starts seeing its people as valuable human citizens, rather than cash cows, many will be in a better position to start saving and accumulating assets that will sustain the viability of the country’s economy.  If more people are uplifted from poverty to participate in the economy, government is in a better position to generate income and accumulate sustainable wealth in the long-run. To turn the deficit into positive gross operating balance, government needs to put emaSwati first when its spends money. No one should become a missed opportunity in the country’s development path. No one should be left behind.

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