Major in the determining factor for healthy economy is the transportation system. Underrate the system as a producer of goods and a provider of services at your peril. No economy survives with depleted transportation system. When there is free movement of goods and people, economy flourishes vice versa. No doubt, there is wisdom in the situation at the 21 miles wide Strait of Hormuz in far away Arabia or Persian Gulf!
Until lately, no one knows how important is the Strait of Hormuz is to the global economy. A passage of twenty percent (20%) of shipments of crude oil, containing 16 derivatives needed to energize the homes, streets, industries including the cables conveying info and data to users globally! Just like busiest ports, roads and rails, global economy is at risk of entering recession if such routes should be treated like leprosy camp.
Breaking the above down. Think of any busy highways in your country which allow transit of physical goods and skilled manpower, imagine such is closed for a day. What happens to your national wealth/employment creation and distribution? Of course, negatives.
In short, billions of consumers of the items and services could have their lives hang in the balance. Technology, opportunities..particularly the data and information being conveyed by the seabed cables lying under the 21 miles wide Hormuz strait are endangered when the movement, on and under the strait, is abrupted! What happens to all the institutions like the media, fintech, software making firm not to talk of the insurance firms which insured all the companies, the risk providers? Should they keep piling loads of insurance to be offset? Nay! Businesses could collapse when the insurance piles up liabilities that they cannot cover.
We can think further about the adverse consequences across facets of life! Spike in the prices, higher cost of living as a result of higher fares, rents, poverty surges, crime rates increased, weaker purchasing powers etc. simply because the market economy declines in the market transaction regulations. Further rises in prices of commodities could trigger mass protests which pave the way for regime change!
The wisdom is 'let the proverbial Strait of Hormuz' in your country be open for business. Treat the trust issue legally. We should factor in the legal inputs of specialized lawyers and stakeholders in achieving unrestricted, undelayed passage of users and goods to destinations at real time. Are you itching to know my solution to the temporarily closed Strait of Hormuz. First, all the warring nations should sheathe their swords. It's no victor, no vanquished. Second, invite peace brokers in legal mediators from neutral bodies esp by UN security council and general assembly members who are not part of the rivalry parties. Three, the warring nations should compromises where possible for global peace and stable economy.
For the nations, cap the prices of petrol, diesel, kerosine, gas, jet fuel, and other derivatives for the consumers locally. This is doable through subsidies on the products.
Nigerian government, stop sharing subsidies windfalls to the tiers of government! It's hightime you paid subsidies directly to the local refineries to allow selling fuels and gas at lower prices; enforce zero hoarding and smuggling of the subsidized fuels and gas supported with 'wicked punitive measures' for hoarders and smugglers. Or sell crude oil to the local refineries at highly subsidized rate. By so doing, the surging prices of essential goods and services will be stable and affordable.
For all the busy commercial routes, classified as our own strait of hormuz, tagged economic roads, coastal ports and railways, identify and exterminate all obstacles that hinder movements. Secure the passages by erecting security infrastructures. Allow the system to have working processes and protocols observed with zero influence from within and outside.
Need I say more? A word is enough for a wise. Let's have a pause for reflection on the treated theme. There is truly wisdom in the strait of hormuz. See you next week God-willing.
©️ Abdulateef Amusa (Author of self-help, motivational and applied books, prolific troubleshooting writer, public affairs analyst, child educationist..)
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