Dr. Samuel Enajite Enajero Makes the Distinction Between Economic Goods, Expands Thoughts on Macroeconomics

What are economic goods? What could be considered as a pure public good? Also, how can economic cooperation be established in areas, particularly Sub-Saharan Africa? Dr. Samuel Enajite Enajero answers these questions as well as other matters concerning collectivism, public goods, and macroeconomic management in his book “Collective Institutions in Industrialized Nations: Economic Lessons for Sub-Saharan Africa” (Page Publishing; 2015).
 
“Collective Institutions in Industrialized Nations” tackles the conditions that did not allow collectivism to flourish in Sub-Saharan Africa nations and compares their economies with European and Asian nations, where collective institutions exist to usher in economic development and social prosperity.
 
In Chapter 7 of the book titled, “Collective Actions and Public Goods,” Dr. Enajero classifies economic goods and services according to their joint level of consumption:
 

• Private goods: The level of joint consumption is low and the size of the consuming group is small. Examples of private goods are rice and garri (a staple in West Africa).
• Quasi-private goods: The size of the consuming group is small, and the good is jointly consumed but not equally consumed. The benefits may either be divisible and indivisible to some consumers. An example of this is a neighbor who shares a security; though all neighbors benefit from the presence of a security, the neighbor whose property the security is located benefits the most.
• Club goods: The good is jointly consumed but completely indivisible. The consuming group is small because non-members are excluded. Examples of these are pools, tennis, and golf clubs.
• Quasi-public goods: The good is consumed by a large group under moderate joint consumption. There is joint benefit but the benefits are not equal. An example of this would be university education; while everyone benefits from mass university education, the ones who receive the university education benefits the most.
• Pure public goods: The good is jointly consumed and completely indivisible and no one is excluded from the consumption. National defense is an example of a pure public good.
• Mixed public goods: The good is consumed by a middle-sized group and the level of joint consumption is moderate. Such goods can be provided privately but local provision is necessary. Examples of mixed public goods are garbage collection, street lights,
• Local public goods: The degree of joint consumption is high but the consuming group is not small so as to deter free-riders. Local public goods can be provided by local governments through the taxes collected from the benefiting group. Examples of these goods are roads, police, and fire protection.

 
Dr. Enajero discusses at length the nature of pure public goods, which, according to him, should be non-excludable and non-rivalry in consumption. A pure public good is non-excludable in the sense that “anyone who does not pay for these goods, once provided, cannot be deprived from using the goods.” A pure public good is also non-rivalry because “one person’s consumption does not reduce the quantity available for others.”
 
He added that In Africa, due to lack of collaboration, there are no categorization of economic goods and services. Therefore, all goods, services, and activities are private. This scenario has led to socio-economic dysfunction. 
 
In the subject of macroeconomic management in Chapter 8 of the book titled, “Collectivism and Macroeconomic Management,” Dr. Enajero stresses out that “In order to raise the quality of life over time, the collective goal of society would be to engage in activities that lead to continuous increase in aggregate output.” And what other way to encourage widespread economic activities than by transforming traditional-prone people to economic agents through collective institutions?
 
“First of all, societies and economies would have to be established through the practice of economic cooperation,” the author wrote. “Economic agents would have to be mobilized en masse through some other institutions as experienced in nations of Europe and Asia.”
 
“The lack of historical and contemporary collective institutions in some societies are fully responsible for economic and social woes,” the author added. He also said, “The absence of historical cooperation and collectivism created poorly use of economic resources, including labor and land.”
 
Know more about Dr. Samuel Enajite Enajero’s thoughts on the subject of collectivism, public goods, and macroeconomic management in his book “Collective Institutions in Industrialized Nations: Economic Lessons for Sub-Saharan Africa.” Copies are available at Amazon and Barnes & Noble.
 
Readers are also encouraged to visit the author’s website, https://aafee.org/. The AAFEE, which stands for African Association for Evolutionary Economics, aims to provide a platform for peer-reviewed academic articles and also serves as a forum for informal discussions about institutional changes and African economic development.
 
 
 
 
Collective Institutions in Industrialized Nations: Economic Lessons for Sub-Saharan Africa
Author | Samuel Enajite Enajero, Ph.D.
Published date | November 5, 2015
Publisher | Page Publishing
Book retail price |
 
Author Bio
 
Samuel Enajite Enajero is a researcher, visiting assistant professor and lecturer and academic author with a Ph.D. in Economics. He is the founder of African Association for Evolutionary Economics (AAFEE).

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