President of the African School of Governance, Dr Kingsley Moghalu, has criticised the lack of philosophical depth in African economic management, describing much of the continent’s economic thinking as reliant on ineffective, borrowed ideas.
Speaking on the Toyin Falola Interviews on Monday with the theme, “Leadership in Africa,” Moghalu described many strategies adopted by African governments as “empty” and expressed concern over the uncritical adoption of Western economic models without understanding their foundational principles.
Moghalu, a former deputy governor of the Central Bank of Nigeria, emphasised that ethical and philosophical foundations are critical to successful economic systems.
He lamented Africa’s absence of a coherent philosophical framework, which he argued has led to the wholesale adoption of foreign models that fail to address the continent’s unique realities.
According to Moghalu, many African nations adopt Western economic models without comprehending their underlying principles, such as the distinction between shareholder and stakeholder capitalism.
“Businesses do not exist on their own. The economy does not exist on its own. The economy is regulated by the structure of the state.
“The problem of economic management in many African countries is the emptiness of these economic management philosophies.
“As a central banker, my problem was with economic thinking in Africa.
“Economic thinking in many African countries is full of received wisdom that does not work.
“Everybody is a capitalist in Africa, but they do not even understand that capitalism is a philosophy. It has its ethics.
“Businesses do not exist on their own. The economy does not exist on its own.
The economy is regulated by the structure of the state. The problem of economic management in many African countries is the emptiness of these economic management philosophies,” he noted.
He further highlighted the interconnectedness of business, the economy, and state structures, pointing out that the failure of economic management in many African countries stems from the lack of a robust philosophical foundation.
Moghalu compared the foundational philosophies of the West and Asia, noting how these underpin their governance and development strategies.
Conversely, he described the Western worldview as rooted in individual rights, scientific innovation, and institutional strength.
“In Asia, their worldview is based on a relationship with time. They believe time is endless and that everything is interconnected.
“Long-term planning, societal stability, and prioritising the collective over the individual are central to Asia’s progress.
“The West deifies the individual, while the East subordinates the individual to the collective. The West views scientific innovation as the driver of prosperity and emphasises institutions,” Moghalu said.
He argued that any attempt to design political, constitutional, or economic systems without a strong philosophical foundation is doomed to fail.
Addressing governance challenges, Moghalu identified a duality that impedes progress: the coexistence of formal constitutional systems and traditional cultural practices.
“The fundamental problem of the modern African state is that it exists in two realities running in parallel,” he observed.
Moghalu stressed the need to reconcile these dual realities, which he believes contribute to dysfunctional governance. “You have leaders operating within a constitutional framework but psychologically rooted in a 19th-century culture of traditional subservience,” he explained.
He advocated for a governance model that integrates traditional and modern systems effectively.
Moghalu underscored the importance of ethical leadership in combating corruption and building effective systems. “Corruption is a global problem; it’s simply a matter of degree,” he said.
He pointed out that in nations with strong accountability systems, corruption is peripheral, while in countries like Nigeria, it is central.
“In Rwanda, there is almost zero tolerance for corruption. It is very low. This highlights the importance of values, ethics, and discipline.
“You have leaders who are operating within a constitution but psychologically are in the 19th-century culture of traditional subservience,” he said.
To foster ethical leadership, he proposed making the teaching of ethics compulsory in African educational institutions, a policy he championed during his presidential campaign.
“The educational and worldview systems of many advanced societies are anchored on high standards of values and ethics,” Moghalu said.
“In Nigeria, the absence of these three elements explains why corruption is so pervasive.”
Moghalu also highlighted the advisory role of traditional rulers in governance but cautioned against their political appointments.
“Traditional rulers must play an advisory role in governance. I believe they should not be appointed by political authorities,” he said.
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